Thu, Jun 5, 10:02 AM (38 days ago)
**Costco Wholesale Corporation (COST) Q3 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q3 2025 revenue was $63,205,000, up 8% YoY, driven by increased comparable sales and new warehouse openings. YTD revenue was $189,079,000, up 8% YoY. - **Profit Margins:** Gross margin increased by 41 basis points to 11.25%. Excluding gasoline price deflation, the increase was 29 basis points. - **Net Income:** Q3 2025 net income was $1,903,000, up 13% YoY. YTD net income was $5,489,000, up 9% YoY. - **Earnings per Share (EPS):** Q3 2025 EPS was $4.28, up 13% YoY. YTD EPS was $12.34, up 9% YoY. - **Cash Flow:** Operating cash flow was $9,468,000, up 13% YoY. Capital expenditures were $3,532,000, with plans to spend over $5,000,000 in FY 2025. **Key Trends & Uncertainties:** - **Membership Growth:** Membership fees increased by 10% YoY, driven by new sign-ups and fee increases. Renewal rates were 92.7% in the U.S. and Canada, and 90.2% worldwide. - **E-commerce Growth:** E-commerce sales increased by 15% YoY in Q3 and 16% YoY YTD. - **Foreign Exchange Impact:** Changes in foreign currencies negatively impacted net sales and gross margin. - **Legal Proceedings:** Costco faces several legal proceedings, but management believes they will not have a material adverse effect on financial position or results. - **Future Operations:** Costco plans to open 10 additional warehouses in FY 2025 and expects to spend slightly over $5,000,000 on capital expenditures. **Impact on Future Operations:** - **Warehouse Openings:** New warehouse openings drive sales growth but may cannibalize existing warehouse sales. - **Membership Renewals:** High renewal rates support recurring revenue, but digital promotions may impact renewal rates. - **Capital Expenditures:** Planned capital expenditures will support growth but may impact short-term cash flow. - **Legal Proceedings:** Ongoing legal proceedings may result in charges, but management does not expect a material adverse effect.