🛒 What the Company Does
Amazon.com, Inc. operates a global platform combining online and physical retail, a large third-party seller marketplace, and AWS (cloud computing services). Beyond retail, Amazon generates revenue from subscriptions (Prime) and advertising, serving consumers, sellers, enterprises, and developers worldwide.
📊 Financial Highlights
- Revenue continued to grow steadily through FY 2025.
- Operating income and net income increased meaningfully, showing improved profitability.
- Margins expanded, reflecting better efficiency as the business scaled.
- Operating cash flow remained strong, supporting large investments.
⚠️ Key Risks
- Consumer spending dependence: Retail demand can fluctuate with customer behavior.
- Fulfillment and logistics costs: Operating a global delivery network is complex and expensive.
- AWS competition: Cloud growth depends on customer usage and competitive pressure.
- Regulatory and legal scrutiny: Antitrust, data privacy, and labor regulations remain ongoing risks.
🧭 MD&A Highlights
Management emphasized revenue growth across segments, strong contribution from AWS, and continued heavy investment in fulfillment and technology infrastructure. The company also highlighted strong operating cash flow, sufficient liquidity, and ongoing focus on long-term capacity and efficiency.
✅ Takeaway
Amazon’s FY 2025 10-K shows a business growing at massive scale while improving profitability. Services such as AWS, advertising, and subscriptions play an increasingly important role, while retail and logistics remain capital-intensive. Overall, the filing reflects a company focused on long-term growth, operational efficiency, and financial flexibility.
Income Statement Snapshot
| (Unit: $m, EPS in $) | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue (Sales) | 574,785 | 637,959 | 716,924 |
| Cost of Goods Sold (Cost of Sales) | 304,739 | 326,288 | 356,414 |
| Gross Profit (Gross Profit) | 270,046 | 311,671 | 360,510 |
| SG&A (SG&A) | 56,186 | 55,266 | 58,301 |
| Operating Income (Operating Income) | 36,852 | 68,593 | 79,975 |
| Non-Operating Income/Expense (Other income (expense), net) | 938 | (2,250) | 15,229 |
| Interest Income/Expense (Net interest) | (233) | 2,271 | 2,107 |
| Income Before Tax (Income before income taxes) | 37,557 | 68,614 | 97,311 |
| Income Tax (Provision for income taxes) | 7,120 | 9,265 | 19,087 |
| Net Income (Net income) | 30,425 | 59,248 | 77,670 |
| EPS (Diluted EPS) | 2.9 | 5.5 | 7.2 |
Plain English: Amazon grew sales each year (from $574,785m in FY 2023 to $716,924m in FY 2025) while also expanding operating profit sharply. Operating income nearly doubled from FY 2023 to FY 2024 and stayed strong in FY 2025. Net income and diluted EPS rose meaningfully, showing improved profitability alongside growth.
Key Ratios
| (Unit: %) | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Gross Margin (%) | 47.0% | 48.9% | 50.3% |
| Operating Margin (%) | 6.4% | 10.8% | 11.2% |
| Pretax Margin (%) | 6.5% | 10.8% | 13.6% |
| Net Margin (%) | 5.3% | 9.3% | 10.8% |
| ROE (%) | 17.5% | 24.3% | 22.3% |
| ROA (%) | 6.1% | 10.3% | 10.8% |
| ROTC (%) | 10.3% | 15.8% | 13.8% |
| ROIC (%) | 10.2% | 16.7% | 14.1% |
| Debt-to-Equity (%) | 76.6% | 51.7% | 41.3% |
| Net Debt/EBITDA (x) | 0.9x | 0.6x | 0.6x |
| Interest Coverage (x) | 11.6x | 28.5x | 35.2x |
| Current Ratio (%) | 104.5% | 106.4% | 105.1% |
| Quick Ratio (%) | 84.3% | 87.3% | 87.5% |
| Fixed Asset to Long-term Capital Ratio (%) | 60.5% | 60.6% | 63.3% |
Plain English: Margins improved meaningfully: operating margin rose from 6.4% (FY 2023) to 11.2% (FY 2025). Returns (ROE/ROA/ROIC) also strengthened, suggesting better profitability relative to the capital invested. Leverage appears more conservative over time (Debt-to-Equity fell to 41.3% in FY 2025), and debt burden looks manageable (Net Debt/EBITDA stayed around 0.6x in FY 2024–FY 2025, with strong interest coverage).
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 Amazon.com (AMZN) FY 2025 10-K Analysis (Filed 2026) | Explained for Beginners