AI Takeaway
Marriott International delivered solid FY2025 results with revenue rising 4.3% to $26.2B and net income growing 9.5% to $2.6B, driven by strong operating leverage and robust free cash flow generation, even as negative stockholders' equity deepened due to aggressive share buybacks.
Revenue
$26.19B
++4.33% YoY
EPS (Basic)
$9.53
++14.00% YoY
Operating Income
$4.14B
++9.93% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue increased 4.3% year-over-year to $26.2B in FY2025 (from $25.1B in FY2024), reflecting sustained demand across Marriott's global portfolio of managed and franchised properties.
Source: Source: 10-K Income Statement, Financial Data
Operating income grew 9.9% to $4.1B, outpacing revenue growth and expanding the operating margin from 15.0% to 15.8%, indicating effective cost management and favorable business mix.
Source: Source: 10-K Income Statement & Key Ratios, Financial Data
Operating cash flow surged 16.8% to $3.2B, while investing outflows increased to $948M, reflecting continued investment in the business. Free cash flow remains robust, supporting capital returns to shareholders.
Source: Source: 10-K Cash Flow Statement, Financial Data
2 more insights available
Upgrade to unlockMarriott's stockholders' equity stands at -$3.8B, worsening from -$3.0B the prior year. This reflects years of share buybacks funded by debt and operating cash flows, which, while EPS-accretive, leaves the balance sheet technically insolvent on a book-value basis and increases financial fragility if earnings deteriorate.
Source: Source: 10-K Balance Sheet, Financial Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.58 versus the $2.64 analyst consensus — a -2.2% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $26.19B | $25.1B | +4.33% |
Operating Income | $4.14B | $3.77B | +9.93% |
Net Income | $2.6B | $2.38B | +9.52% |
EPS (Basic) | $9.53 | $8.36 | +14.00% |
EPS (Diluted) | $9.51 | $8.33 | +14.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $27.54B | $26.18B | +5.19% |
Current Assets | $3.58B | $3.48B | +2.84% |
Current Liabilities | $8.4B | $8.65B | -2.90% |
Stockholders' Equity | $-3.77B | $-2.99B | -26.04% |
Cash & Equivalents | $358M | $396M | -9.60% |
Long-Term Debt | $23M | $55M | -58.18% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.21B | $2.75B | +16.84% |
Investing Cash Flow | $-948M | $-734M | -29.16% |
Financing Cash Flow | $-2.32B | $-1.96B | -18.51% |
Share Buybacks | $3.3B | $3.76B | -12.28% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 15.8% | 15.0% | +0.81% |
Net Margin | 9.9% | — | — |
ROE | -69.0% | — | — |
ROA | 9.4% | — | — |
Current Ratio | $0.427 | — | — |
Other companies in Hotels, Resorts & Cruise Lines
Marriott's revenue grew 4.3% to $26.2B in FY2025, while net income rose 9.5% to $2.6B. Operating income grew even faster at 9.9%, reflecting improved operating leverage across the business.
The key takeaways from Marriott's FY2025 10-K are strong earnings growth (EPS up 14% to $9.53), expanding operating margins (15.8%), and robust operating cash flow of $3.2B. However, the balance sheet shows deeply negative stockholders' equity of -$3.8B driven by $3.3B in share buybacks, and a very low current ratio of 0.43.
Marriott's stockholders' equity is -$3.8B because the company has returned far more cash to shareholders through buybacks over the years than it has retained in earnings. This is a deliberate capital allocation strategy common among asset-light companies, but it does increase financial leverage and balance sheet risk.
Based on the financial data, key risks include the deeply negative stockholders' equity (-$3.8B), a very low current ratio of 0.43 indicating limited short-term liquidity, and dependence on continued strong operating cash flow to sustain the $3.3B annual buyback program. A cyclical downturn in travel demand could pressure all three areas simultaneously.
Yes, Marriott's basic EPS rose 14.0% to $9.53 in FY2025, outpacing the 9.5% growth in net income. The additional EPS boost came from a reduced share count as a result of $3.3B in share repurchases during the year, which is a key part of Marriott's capital return strategy.