Coty’s QQ1 2025 results show modest top-line growth complemented by a stable gross margin and improving operating profitability, against a backdrop of meaningful leverage and working-capital dynamics. Revenue reached USD 1.6715 billion, up 1.83% year over year, with a gross profit of USD 1.0946 billion and a gross margin of 65.5%. EBITDA stood at USD 297.7 million, and operating income was USD 237.8 million, yielding an operating margin of roughly 14.2%. Net income totaled USD 82.9 million, producing a net margin near 4.96% and earnings per share (diluted) of USD 0.0909–0.0917, depending on share count conventions. The quarter benefited from ongoing pricing/mix benefits and a resilient demand for Coty’s diversified brand portfolio, though it contends with a high debt load (total debt USD 4.224 billion; net debt USD 3.9406 billion) and modest free cash flow (FCF) of USD -7.9 million as working capital fluctuations offset operating cash generation. Cash from operations was USD 67.4 million, with capital expenditures of USD 75.3 million, and financing activity contributing a small net outflow. The balance sheet remains asset-rich with total assets of USD 12.516 billion and total stockholders’ equity of USD 4.188 billion, but accumulated deficits and negative retained earnings highlight ongoing capital allocation and leverage considerations. Management commentary from the call is not available in the provided data, so quotes and call-specific guidance could not be incorporated. Investors should weigh Coty’s growth potential in prestige and mass beauty against the debt burden and cash-flow dynamics as they assess long-term upside. A constructive path would involve leveraging DTC strength, optimizing working capital, and advancing margin resilience while reducing net leverage.}