AI Takeaway
KDP delivered strong FY2025 results with revenue rising 8.2% to $16.6B and net income surging 44.3% to $2.1B, driven by significant operating leverage, though operating cash flow declined 10.3% and the current ratio remains below 1.0.
Revenue
$16.6B
++8.16% YoY
EPS (Basic)
$1.53
++44.34% YoY
Gross Margin
54.2%
-1.36% YoY
Operating Income
$3.58B
++37.98% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
KDP grew total revenue 8.2% year-over-year to $16.60B in FY2025, up from $15.35B in FY2024, reflecting broad-based volume and pricing gains across its beverage portfolio.
Source: Source: 10-K Income Statement
Operating income surged 38.0% to $3.58B from $2.59B, with operating margin expanding approximately 470 basis points to 21.5%, suggesting meaningful cost discipline and operating leverage despite higher cost of revenue.
Source: Source: 10-K Income Statement
Cost of revenue rose 11.5% to $7.60B, faster than revenue growth of 8.2%, compressing gross margin by approximately 136 basis points to 54.2% from 55.6%, indicating input cost headwinds.
Source: Source: 10-K Income Statement & Key Ratios
2 more insights available
Upgrade to unlockKDP's current ratio stands at 0.635, meaning current liabilities of $8.29B significantly exceed current assets of $5.27B. This structural short-term liquidity deficit could create refinancing or operational stress if credit markets tighten or revenue softens unexpectedly.
Source: Source: 10-K Balance Sheet & Key Ratios
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Upgrade to unlockReported EPS of $0.60 versus the $0.59 analyst consensus — a +0.9% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $16.6B | $15.35B | +8.16% |
Cost of Revenue | $7.6B | $6.82B | +11.46% |
Gross Profit | $9B | $8.53B | +5.51% |
Operating Income | $3.58B | $2.59B | +37.98% |
Net Income | $2.08B | $1.44B | +44.27% |
EPS (Basic) | $1.53 | $1.06 | +44.34% |
EPS (Diluted) | $1.53 | $1.05 | +45.71% |
R&D Expense | $70M | $70M | 0.00% |
SG&A Expense | $5.35B | $5.01B | +6.74% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $55.46B | $53.43B | +3.80% |
Current Assets | $5.27B | $4B | +31.75% |
Total Liabilities | $29.94B | $29.19B | +2.59% |
Current Liabilities | $8.29B | $8.09B | +2.51% |
Stockholders' Equity | $25.52B | $24.24B | +5.25% |
Cash & Equivalents | $1.03B | $510M | +101.18% |
Long-Term Debt | $13.04B | $12.91B | +0.96% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.99B | $2.22B | -10.27% |
Investing Cash Flow | $-573M | $-1.61B | +64.50% |
Financing Cash Flow | $-999M | $-223M | -347.98% |
Dividends Paid | $1.25B | $1.19B | +4.69% |
Share Buybacks | $9M | $1.11B | -99.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 54.2% | 55.6% | -1.36% |
Operating Margin | 21.5% | 16.9% | +4.65% |
Net Margin | 12.5% | — | — |
ROE | 8.1% | — | — |
ROA | 3.7% | — | — |
Current Ratio | $0.635 | — | — |
Debt to Equity | $1.173 | — | — |
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KDP grew revenue 8.2% to $16.60B and net income 44.3% to $2.08B in FY2025. Diluted EPS rose 45.7% to $1.53, significantly outpacing revenue growth due to strong operating leverage and margin expansion.
The standout takeaway from KDP's FY2025 10-K is the dramatic improvement in profitability, with operating margin expanding to 21.5% from 16.9% and net income surging 44.3%. However, operating cash flow declined 10.3% to $1.99B and the current ratio of 0.635 highlights ongoing short-term liquidity concerns.
KDP shows strong income statement performance with improving margins and robust net income growth, but its balance sheet carries risks: a current ratio of 0.635 (below the healthy threshold of 1.0), long-term debt of $13.04B, and a debt-to-equity ratio of 1.17. The company covers its $1.25B dividend with operating cash flow, but the liquidity gap warrants monitoring.
KDP's gross margin fell approximately 136 basis points to 54.2% in FY2025 because cost of revenue grew 11.5%, outpacing revenue growth of 8.2%. This suggests input cost inflation — likely in commodities, packaging, or logistics — is pressuring the profitability of each unit sold.
KDP nearly eliminated its share repurchase program in FY2025, spending only $9M on buybacks compared to $1.11B in FY2024, a 99.2% decline. The company instead maintained its dividend at $1.25B, suggesting capital is being prioritized toward balance sheet management rather than equity returns.