AI Takeaway
VLTO delivered solid FY2025 results with revenue growing 6.0% to $5.50B and net income surging 12.8% to $940M, supported by strong operating cash flow of $1.08B and a significant build-up in cash to $2.03B.
Revenue
$5.5B
++5.97% YoY
EPS (Basic)
$3.79
++12.46% YoY
Gross Margin
59.9%
++0.16% YoY
Operating Income
$1.28B
++5.71% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
VLTO grew total revenue by 6.0% year-over-year to $5.50B in FY2025 (from $5.19B in FY2024), reflecting steady demand across its business segments. Gross profit rose 6.2% to $3.30B, with gross margin holding nearly flat at 59.9%, demonstrating pricing discipline and operational consistency.
Source: Source: 10-K Income Statement
Net income grew 12.8% to $940M versus $833M in the prior year, meaningfully outpacing the 6.0% revenue growth rate. This leverage was reflected in diluted EPS rising 12.6% to $3.76, suggesting improved profitability efficiency and potentially favorable below-the-line items such as lower interest expense or tax benefits.
Source: Source: 10-K Income Statement
Operating cash flow increased 23.1% to $1.08B from $875M in the prior year, well above net income of $940M, indicating high earnings quality. Investing cash outflows narrowed sharply to just -$98M from -$434M, suggesting reduced capital expenditure or acquisition activity in FY2025.
Source: Source: 10-K Cash Flow Statement
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Upgrade to unlockSG&A expenses grew 6.8% in FY2025, outpacing revenue growth of 6.0%, which led to a slight decline in operating margin from 23.26% to 23.21%. If this trend continues, operating leverage could erode further, particularly in a slower revenue growth environment. Management will need to demonstrate cost discipline to sustain or expand margins.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $1.04 versus the $1.00 analyst consensus — a +4.3% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.5B | $5.19B | +5.97% |
Cost of Revenue | $2.2B | $2.09B | +5.56% |
Gross Profit | $3.3B | $3.1B | +6.25% |
Operating Income | $1.28B | $1.21B | +5.71% |
Net Income | $940M | $833M | +12.85% |
EPS (Basic) | $3.79 | $3.37 | +12.46% |
EPS (Diluted) | $3.76 | $3.34 | +12.57% |
R&D Expense | $266M | $253M | +5.14% |
SG&A Expense | $1.76B | $1.64B | +6.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $7.69B | $6.41B | +20.09% |
Current Assets | $3.43B | $2.39B | +43.78% |
Current Liabilities | $2.06B | $1.25B | +65.14% |
Stockholders' Equity | $3.1B | $2.04B | +52.36% |
Cash & Equivalents | $2.03B | $1.1B | +84.47% |
Long-Term Debt | $2.67B | $2.6B | +2.85% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.08B | $875M | +23.09% |
Investing Cash Flow | $-98M | $-434M | +77.42% |
Financing Cash Flow | $-102M | $-65M | -56.92% |
Dividends Paid | $109M | $89M | +22.47% |
D&A | $78M | $78M | 0.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 59.9% | 59.8% | +0.16% |
Operating Margin | 23.2% | 23.3% | -0.06% |
Net Margin | 17.1% | — | — |
ROE | 30.3% | — | — |
ROA | 12.2% | — | — |
Current Ratio | $1.669 | — | — |
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VLTO delivered strong FY2025 results with revenue of $5.50B, up 6.0% year-over-year, and net income of $940M, up 12.8%. Diluted EPS came in at $3.76, a 12.6% improvement over the prior year's $3.34.
VLTO's net income grew 12.8% to $940M in FY2025, outpacing revenue growth of 6.0%, suggesting improvements in below-the-line items such as interest expense or taxes in addition to solid gross profit expansion. Gross profit rose 6.2% to $3.30B, supported by a stable gross margin of approximately 59.9%.
VLTO's balance sheet strengthened considerably in FY2025, with cash and equivalents nearly doubling to $2.03B and stockholders' equity rising 52.4% to $3.11B. The current ratio stands at 1.67x, and operating cash flow of $1.08B provides ample coverage for its $109M in dividends and $2.67B in long-term debt obligations.
Yes, VLTO's operating cash flow grew 23.1% to $1.08B in FY2025, well above the prior year's $875M. Investing outflows also fell sharply to just -$98M from -$434M, resulting in a significant improvement in free cash flow to approximately $979M.
Key risks include rising SG&A expenses growing faster than revenue (6.8% vs. 6.0%), which compressed operating margin slightly to 23.2%. Additionally, current liabilities surged 65.1% to $2.06B, and the company carries $2.67B in long-term debt, which could become more costly if interest rates remain elevated.