AI Takeaway
Berkshire Hathaway (BRK.B) reported essentially flat revenue of $371.4B in FY2025 while net income declined 24.8% to $67.0B, largely reflecting mark-to-market swings in its massive equity portfolio, even as operating cash flow surged 50.3% to $46.0B and stockholders' equity grew 10.5% to $717.4B.
Revenue
$371.44B
++0.00% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue held nearly unchanged at $371.4B in FY2025 versus $371.4B in FY2024 (+0.0% YoY), suggesting that Berkshire's diversified operating businesses — insurance, railroads, utilities, and manufacturing — collectively produced stable top-line results despite macroeconomic headwinds.
Source: Source: 10-K Income Statement
Net income fell from $89.0B to $67.0B (-24.8% YoY), a decline most likely driven by lower unrealized gains (or increased unrealized losses) in Berkshire's enormous equity investment portfolio, which under GAAP must flow through the income statement. This is a key reason Berkshire management historically cautions investors to focus on operating earnings rather than GAAP net income.
Source: Source: 10-K Income Statement
Operating cash flow jumped from $30.6B to $46.0B (+50.3% YoY), a strong signal that the underlying operating businesses generated significantly more cash in FY2025, reflecting improved underwriting results in insurance and solid performance across industrial subsidiaries.
Source: Source: 10-K Cash Flow Statement
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Upgrade to unlockBerkshire holds one of the largest equity portfolios of any corporation globally, and GAAP requires unrealized gains and losses to flow through net income. This creates significant reported earnings volatility that can mislead investors about underlying business performance, as evidenced by the $22B swing in net income in FY2025.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $7093.19 versus the $8431.76 analyst consensus — a -15.9% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $371.44B | $371.43B | +0.00% |
Net Income | $66.97B | $89B | -24.75% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $1.22T | $1.15T | +5.92% |
Total Liabilities | $502.47B | $502.23B | +0.05% |
Stockholders' Equity | $717.42B | $649.37B | +10.48% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $45.97B | $30.59B | +50.26% |
Investing Cash Flow | $-44.49B | $-10.29B | -332.46% |
Financing Cash Flow | $2.23B | $-10.36B | +121.55% |
D&A | $13.48B | $12.86B | +4.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 18.0% | — | — |
ROE | 9.3% | — | — |
ROA | 5.5% | — | — |
Debt to Equity | $0.7 | — | — |
BRK.B's net income fell 24.8% to $67.0B in FY2025, down from $89.0B in FY2024. This decline is primarily attributable to lower unrealized gains (or increased unrealized losses) in Berkshire's massive equity investment portfolio, which under GAAP accounting rules must flow through the income statement — it does not necessarily reflect deterioration in the operating businesses.
Berkshire Hathaway's revenue was essentially flat at $371.4B in FY2025, virtually unchanged from $371.4B in FY2024 (+0.0% YoY). This stability reflects the diversified nature of Berkshire's operations across insurance, railroads, utilities, and manufacturing, which collectively offset any individual segment weakness.
The headline takeaways are: (1) net income declined 24.8% to $67.0B due to investment portfolio mark-to-market effects; (2) operating cash flow surged 50.3% to $46.0B, signaling strong underlying business performance; and (3) stockholders' equity grew 10.5% to $717.4B, reinforcing Berkshire's fortress balance sheet. Berkshire also deployed $44.5B in investing activities, suggesting active capital allocation during the year.
Yes, Berkshire's financial position remains exceptionally strong: total assets grew 5.9% to $1.22T, stockholders' equity reached $717.4B, and the debt-to-equity ratio was a conservative 0.70. The 50.3% surge in operating cash flow to $46.0B further underscores the cash-generative power of its diversified operating businesses.
Berkshire generated $46.0B in operating cash flow in FY2025, a 50.3% increase from $30.6B in FY2024. This strong cash generation reflects improved performance across its core operating segments, and is a key metric that Berkshire management emphasizes as more representative of business performance than GAAP net income.