Amazon.com, Inc. (Nasdaq: AMZN) — research brief (BMC #079 on gallery, queue id 79)

Prepared 2026-10-11 (America/Chicago). Labels: FACT = stated by the company in its Form 10-K for fiscal 2025 (filed 6 Feb 2026) or its Form 10-Q for the quarter ended 30 Jun 2026 (filed 31 Jul 2026). SECONDARY = none used for figures. INFERENCE = ratios or readings computed by this project from company numbers.

Sources (accessed 2026-10-11)

Form 10-K, FY2025: https://www.sec.gov/Archives/edgar/data/1018724/000101872426000004/amzn-20251231.htm
Form 10-Q, quarter ended 30 Jun 2026: https://www.sec.gov/Archives/edgar/data/1018724/000101872426000026/amzn-20260630.htm
Investor relations: https://ir.aboutamazon.com
Logo: project monogram ("a" on a dark tile), not Amazon's official mark. Trademark of its owner; identification only.

Teaching arc

Sell almost everything online with low prices and fast shipping, let millions of outside sellers and Prime members fill the same warehouses and trucks, charge those sellers fees and ads, and pour the cash into AWS cloud — where a fifth of sales earns more than half of operating income — while capex now outruns operating cash flow.

Key numbers (FACT unless noted)

FY2025 (10-K, audited)

Net sales $716,924M (2024 $637,959M, +12%; 2023 $574,785M). Product sales $296,266M; service sales $420,658M.
Operating income $79,975M (2024 $68,593M). Includes a $2.5B FTC-settlement charge and $2.7B estimated severance (of which $1.8B in Q3 2025).
Other income (expense), net +$15.2B, mainly upward price adjustments on the Anthropic nonvoting preferred stock; income before taxes $97,311M; provision for income taxes $19,087M; net income $77,670M (2024 $59,248M; 2023 $30,425M).
Net sales by line: online stores $269,287M; physical stores $22,561M; third-party seller services $172,162M; advertising services $68,635M; subscription services $49,619M; AWS $128,725M; other $5,935M.
Segments: North America $426,305M (+10%), International $161,894M (+13%), AWS $128,725M (+20%). Operating income: North America $29,619M, International $4,750M, AWS $45,606M. Mix of sales 59% / 23% / 18%.
Operating expenses: cost of sales $356,414M; fulfillment $109,074M; technology and infrastructure $108,521M (+23%); sales and marketing $47,129M; G&A $11,172M; other operating expense $4,639M. Shipping costs $102.7B (2024 $95.8B).
Cash flow: operating $139,514M; purchases of property and equipment net of proceeds and incentives $128,320M (2024 $77,658M); free cash flow $11,194M (2024 $38,219M). Cash capex majority for AWS technology infrastructure.
Long-term debt $65.6B; long-term lease liabilities $87.3B; cash, equivalents and marketable securities $123.0B at 31 Dec 2025.
Remaining performance obligations (contracts > 1 year, primarily AWS) about $244B at 31 Dec 2025.
Employees: about 1,576,000 full- and part-time at 31 Dec 2025.
Sellers: "We are not the seller of record in these transactions. We earn fixed fees, a percentage of sales, per-unit activity fees, interest, or some combination thereof."

H1 / Q2 2026 (10-Q, unaudited)

Q2 net sales $200,606M (+20%); H1 $382,125M vs $323,369M (+18%). H1: North America $220,320M (+14%), International $81,986M (+17%), AWS $79,819M (+33%; Q2 +37%).
H1 lines: online stores $134,686M, physical $11,579M, third-party seller services $88,358M, advertising $37,052M, subscriptions $27,157M, AWS $79,819M, other $3,474M.
H1 operating income $51,313M (North America $17,390M, International $3,141M, AWS $30,782M). Total non-operating income $69,378M in H1 (Q2 $53,396M); H1 net income $92,902M; Q2 $62,647M. Most of the non-operating gain is upward adjustments to private equity investments (primarily Anthropic): $62.8B in H1 2026 (note).
Trailing twelve months to 30 Jun 2026: operating cash flow $161,403M; purchases of property and equipment net $169,007M; free cash flow −$7,604M (TTM to Jun 2025: +$18,184M).
Remaining performance obligations about $496B at 30 Jun 2026 (weighted-average remaining life 6.4 years). Q1 2026: OpenAI commitment expanded by $100.0B over 8 years (on top of $38.0B); Q2 2026: Anthropic commitment expanded by more than $100.0B over 10 years. Amazon invested $10.0B in Anthropic nonvoting preferred in Q2 2026.
About $640M of IEEPA tariff refunds received in Q2 2026, mostly reducing cost of sales in North America.

INFERENCE (project-computed)

Operating margin FY25: 79,975 / 716,924 = 11.2%. Net margin FY25 = 10.8% (flattered by the $15.2B investment gain).
AWS = 18% of FY25 net sales but 57% of FY25 operating income (45,606 / 79,975).
Third-party seller services + advertising + subscriptions + AWS = $419.1B = 58.5% of FY25 net sales (own-inventory stores, online + physical, = 40.7%).
Advertising grew 22% in FY25 (68,635 vs 56,214); seller services +10%; subscriptions +12%; online stores +9%; physical stores +6%.
FY25 capex (128.3B) was 92% of operating cash flow; TTM to Jun 2026 capex exceeded operating cash flow.

Notes / cautions

Prime membership prices, member counts and Prime Video ad details are not in the 10-K; none are used.
Amazon does not disclose third-party unit share in the 10-K; not used.
Tagging for the atlas: retail/DTC (largest single line is online stores at $269.3B), with seller services, ads and AWS as the profit engines.

# Amazon.com, Inc. (Nasdaq: AMZN) — research brief (BMC #079 on gallery, queue id 79) Prepared 2026-10-11 (America/Chicago). Labels: **FACT** = stated by the company in its Form 10-K for fiscal 2025 (filed 6 Feb 2026) or its Form 10-Q for the quarter ended 30 Jun 2026 (filed 31 Jul 2026). **SECONDARY** = none used for figures. **INFERENCE** = ratios or readings computed by this project from company numbers. ## Sources (accessed 2026-10-11) - Form 10-K, FY2025: https://www.sec.gov/Archives/edgar/data/1018724/000101872426000004/amzn-20251231.htm - Form 10-Q, quarter ended 30 Jun 2026: https://www.sec.gov/Archives/edgar/data/1018724/000101872426000026/amzn-20260630.htm - Investor relations: https://ir.aboutamazon.com - Logo: project monogram ("a" on a dark tile), **not** Amazon's official mark. Trademark of its owner; identification only. ## Teaching arc **Sell almost everything online with low prices and fast shipping, let millions of outside sellers and Prime members fill the same warehouses and trucks, charge those sellers fees and ads, and pour the cash into AWS cloud — where a fifth of sales earns more than half of operating income — while capex now outruns operating cash flow.** ## Key numbers (FACT unless noted) **FY2025 (10-K, audited)** - Net sales $716,924M (2024 $637,959M, **+12%**; 2023 $574,785M). Product sales $296,266M; service sales $420,658M. - Operating income $79,975M (2024 $68,593M). Includes a $2.5B FTC-settlement charge and $2.7B estimated severance (of which $1.8B in Q3 2025). - Other income (expense), net +$15.2B, mainly upward price adjustments on the Anthropic nonvoting preferred stock; income before taxes $97,311M; provision for income taxes $19,087M; **net income $77,670M** (2024 $59,248M; 2023 $30,425M). - Net sales by line: online stores $269,287M; physical stores $22,561M; third-party seller services $172,162M; advertising services $68,635M; subscription services $49,619M; AWS $128,725M; other $5,935M. - Segments: North America $426,305M (+10%), International $161,894M (+13%), AWS $128,725M (+20%). Operating income: North America $29,619M, International $4,750M, AWS $45,606M. Mix of sales 59% / 23% / 18%. - Operating expenses: cost of sales $356,414M; fulfillment $109,074M; technology and infrastructure $108,521M (+23%); sales and marketing $47,129M; G&A $11,172M; other operating expense $4,639M. Shipping costs $102.7B (2024 $95.8B). - Cash flow: operating $139,514M; purchases of property and equipment net of proceeds and incentives $128,320M (2024 $77,658M); **free cash flow $11,194M** (2024 $38,219M). Cash capex majority for AWS technology infrastructure. - Long-term debt $65.6B; long-term lease liabilities $87.3B; cash, equivalents and marketable securities $123.0B at 31 Dec 2025. - Remaining performance obligations (contracts > 1 year, primarily AWS) about $244B at 31 Dec 2025. - Employees: about 1,576,000 full- and part-time at 31 Dec 2025. - Sellers: "We are not the seller of record in these transactions. We earn fixed fees, a percentage of sales, per-unit activity fees, interest, or some combination thereof." **H1 / Q2 2026 (10-Q, unaudited)** - Q2 net sales $200,606M (+20%); H1 $382,125M vs $323,369M (+18%). H1: North America $220,320M (+14%), International $81,986M (+17%), AWS $79,819M (+33%; Q2 +37%). - H1 lines: online stores $134,686M, physical $11,579M, third-party seller services $88,358M, advertising $37,052M, subscriptions $27,157M, AWS $79,819M, other $3,474M. - H1 operating income $51,313M (North America $17,390M, International $3,141M, AWS $30,782M). Total non-operating income $69,378M in H1 (Q2 $53,396M); H1 net income **$92,902M**; Q2 $62,647M. Most of the non-operating gain is upward adjustments to private equity investments (primarily Anthropic): $62.8B in H1 2026 (note). - Trailing twelve months to 30 Jun 2026: operating cash flow $161,403M; purchases of property and equipment net $169,007M; **free cash flow −$7,604M** (TTM to Jun 2025: +$18,184M). - Remaining performance obligations about $496B at 30 Jun 2026 (weighted-average remaining life 6.4 years). Q1 2026: OpenAI commitment expanded by $100.0B over 8 years (on top of $38.0B); Q2 2026: Anthropic commitment expanded by more than $100.0B over 10 years. Amazon invested $10.0B in Anthropic nonvoting preferred in Q2 2026. - About $640M of IEEPA tariff refunds received in Q2 2026, mostly reducing cost of sales in North America. ## INFERENCE (project-computed) - Operating margin FY25: 79,975 / 716,924 = 11.2%. Net margin FY25 = 10.8% (flattered by the $15.2B investment gain). - AWS = 18% of FY25 net sales but 57% of FY25 operating income (45,606 / 79,975). - Third-party seller services + advertising + subscriptions + AWS = $419.1B = 58.5% of FY25 net sales (own-inventory stores, online + physical, = 40.7%). - Advertising grew 22% in FY25 (68,635 vs 56,214); seller services +10%; subscriptions +12%; online stores +9%; physical stores +6%. - FY25 capex (128.3B) was 92% of operating cash flow; TTM to Jun 2026 capex exceeded operating cash flow. ## Notes / cautions - Prime membership prices, member counts and Prime Video ad details are **not** in the 10-K; none are used. - Amazon does not disclose third-party unit share in the 10-K; not used. - Tagging for the atlas: retail/DTC (largest single line is online stores at $269.3B), with seller services, ads and AWS as the profit engines.