Amazon's Q3 2025 Cash Flow Soars to $35.5 Billion

By Bobby Samwell • Friday, October 31 10:30 • Permanent Link

Amazon's 10-Q report for the third quarter of 2025 provides a comprehensive view of the company's financial performance and operations. The report emphasizes forward-looking statements and critical accounting estimates, shedding light on the potential impact of various factors on the company's financial condition. Here are some key highlights from the report:

Liquidity and Capital Resources: Amazon's cash flow from operating activities was $35.5 billion for the third quarter of 2025, indicating a substantial increase from the $26.0 billion reported for the same period in 2024. For the nine months ended September 30, 2025, cash from operating activities totaled $85.1 billion, up from $70.2 billion in the corresponding period in 2024. The company's principal sources of liquidity are cash flows generated from operations and its substantial cash, cash equivalents, and marketable securities balances, which were $94.2 billion as of September 30, 2025.
Investing and Financing Activities: Amazon's investing activities resulted in cash capital expenditures of $34.2 billion for the third quarter of 2025, and $89.9 billion for the nine months ended September 30, 2025. The majority of these investments were directed towards technology infrastructure, particularly to support the growth of Amazon Web Services (AWS), and additional capacity for the fulfillment network. The company also made significant cash payments related to acquisition and other investment activities.
Income Taxes: Amazon is subject to income taxes in the U.S. and numerous foreign jurisdictions. The company's effective tax rates could be affected by various factors, including changes in business operations, acquisitions, investments, and geopolitical conditions. As of September 30, 2025, Amazon had paid $1.1 billion in U.S. and foreign income taxes for the third quarter, and $6.8 billion for the nine months ended September 30, 2025.
Inventories: Amazon's inventories, primarily accounted for using the first-in first-out method, were valued at the lower of cost and net realizable value. The company's assumptions about future disposition of inventory are inherently uncertain, and changes in estimates and assumptions may lead to material write-downs in the future.
Financing Activities: Amazon's financing activities resulted in cash inflows from proceeds from short-term debt and long-term debt, while cash outflows were primarily driven by payments of short-term debt, long-term debt, finance leases, and financing obligations.

The report provides a detailed insight into Amazon's financial performance, liquidity, and potential risks and uncertainties that could impact the company's operations and results of operations. Today the company's shares have moved -3.23% to a price of $222.86. For more information, read the company's full 10-Q submission here.

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