Costco reported Q3 2025 (calendar year 2025) results showing a topline decline and a still-healthy expense structure that preserved operating profitability and free cash flow. Revenue came in at $63.205 billion, down 20.69% year over year (YoY) and down 0.81% quarter over quarter (QoQ), while gross profit was $8.209 billion for a gross margin of 12.99%. Operating income of $2.53 billion yielded an operating margin of 4.00%, with net income of $1.903 billion and diluted EPS of $4.28-$4.29, suggesting disciplined cost control offsetting the revenue headwinds. Free cash flow reached $2.329 billion, supporting a net cash position (net debt of approximately -$5.66 billion) and capital returns through dividends and modest buybacks. The balance sheet remains liquidity-rich, with cash and cash equivalents of $13.836 billion and total cash + short-term investments of $14.85 billion, while inventory sits at $18.606 billion and current liabilities total $37.579 billion, resulting in a net working-capital-leaning but adequate liquidity profile (current ratio ~1.01). Management commentary around the quarter emphasized continuing focus on value delivery, inventory discipline, and ongoing cost controls in a challenging macro environment. While formal forward guidance was not updated in the press release, the company’s cash-generative model and membership-based moat remain the principal drivers of the investment thesis for COST.