Goldman Sachs reported Q1 2025 revenue of USD 31.55 billion, representing a modest YoY decline of 1.90% and a QoQ decline of 2.14%. Despite a softer top-line, the firm delivered notable profitability improvements: gross profit rose 6.33% YoY and 9.30% QoQ to USD 14.775 billion, with operating income of USD 5.647 billion and an operating margin of 17.9%. Net income was USD 4.738 billion, up 14.67% YoY and 15.25% QoQ, supported by disciplined expense management and a favorable mix of revenue streams. Diluted EPS of USD 14.12 rose 22.11% YoY and 17.09% QoQ, underscoring earnings quality despite a challenging macro backdrop.
On the balance sheet, Goldman maintains substantial liquidity with USD 924.9 billion in cash and short-term investments and USD 1.767 trillion in total assets. However, the company carries a significant leverage footprint, with long-duration funding and a large interest burden (interest expense USD 16.49 billion) contributing to a negative operating cash flow of USD -37.23 billion and negative free cash flow of USD -37.73 billion for the quarter. The strong financing activity (net cash provided by financing USD 42.83 billion) underscores dependence on external funding to support investment activity and balance sheet catalysts. Return metrics remain modest by some peers (ROE 3.81%), reflecting the large equity base and funding costs in a volatile rate environment.
Looking ahead, the near-term outlook hinges on capital markets momentum, with underwriting and advisory pipelines, trading revenue stabilization, and ongoing balance sheet optimization. Goldman’s deep global platform, asset management and wealth capabilities, and prudent capital management position the firm well for a recovery in activity, but near-term cash generation and leverage dynamics merit close monitoring.