Item 1. Financial Statements

AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)


	Three Months Ended March 31,			Twelve Months Ended March 31,
		2024		2025		2024		2025
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD		$	73,890	$	82,312	$	49,734	$	73,332
OPERATING ACTIVITIES:
Net income		10,431		17,127		37,684		65,944
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other		11,684		14,262		49,224		55,373
Stock-based compensation		4,961		3,689		24,236		20,739

Non-operating expense (income), net		2,734		(2,817)		1,452		(3,539)
Deferred income taxes		(938)		507		(6,342)		(3,203)
Changes in operating assets and liabilities:
Inventories		1,776		(1,222)		2,854		(4,882)
Accounts receivable, net and other		3,684		1,247		(9,388)		(5,686)
Other assets		(2,701)		(3,402)		(11,763)		(15,184)
Accounts payable		(11,282)		(9,043)		5,455		5,211
Accrued expenses and other		(2,928)		(4,061)		407		(4,037)
Unearned revenue		1,568		728		5,328		3,167
Net cash provided by (used in) operating activities		18,989		17,015		99,147		113,903
INVESTING ACTIVITIES:
Purchases of property and equipment		(14,925)		(25,019)		(53,447)		(93,093)
Proceeds from property and equipment sales and incentives		990		764		4,449		5,115
Acquisitions, net of cash acquired, non-marketable investments, and other, net		(3,354)		48		(5,680)		(3,680)
Sales and maturities of marketable securities		1,392		7,737		5,904		22,748
Purchases of marketable securities		(1,965)		(13,333)		(3,115)		(37,373)
Net cash provided by (used in) investing activities		(17,862)		(29,803)		(51,889)		(106,283)
FINANCING ACTIVITIES:

Proceeds from short-term debt, and other		338		1,815		5,687		6,619
Repayments of short-term debt, and other		(404)		(2,082)		(22,478)		(6,738)
Proceeds from long-term debt		—		746		—		746
Repayments of long-term debt		(330)		—		(2,620)		(8,852)
Principal repayments of finance leases		(770)		(410)		(3,774)		(1,683)
Principal repayments of financing obligations		(90)		(116)		(304)		(695)
Net cash provided by (used in) financing activities		(1,256)		(47)		(23,489)		(10,603)
Foreign currency effect on cash, cash equivalents, and restricted cash		(429)		416		(171)		(456)
Net increase (decrease) in cash, cash equivalents, and restricted cash		(558)		(12,419)		23,598		(3,439)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD		$	73,332	$	69,893	$	73,332	$	69,893

See accompanying notes to consolidated financial statements.

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AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)


	Three Months Ended March 31,
		2024		2025
Net product sales		$	60,915	$	63,970
Net service sales		82,398		91,697
Total net sales		143,313		155,667
Operating expenses:
Cost of sales		72,633		76,976
Fulfillment		22,317		24,593
Technology and infrastructure		20,424		22,994
Sales and marketing		9,662		9,763
General and administrative		2,742		2,628
Other operating expense (income), net		228		308
Total operating expenses		128,006		137,262
Operating income		15,307		18,405
Interest income		993		1,066
Interest expense		(644)		(541)
Other income (expense), net		(2,673)		2,749
Total non-operating income (expense)		(2,324)		3,274
Income before income taxes		12,983		21,679
Provision for income taxes		(2,467)		(4,553)
Equity-method investment activity, net of tax		(85)		1
Net income		$	10,431	$	17,127
Basic earnings per share		$	1.00	$	1.62
Diluted earnings per share		$	0.98	$	1.59
Weighted-average shares used in computation of earnings per share:
Basic		10,393		10,603
Diluted		10,670		10,793

See accompanying notes to consolidated financial statements.

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AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(unaudited)


	Three Months Ended March 31,
		2024		2025
Net income		$	10,431	$	17,127
Other comprehensive income (loss):

Foreign currency translation adjustments, net of tax of $30 and $(66)		(1,096)		1,535



Available-for-sale debt securities:
Change in net unrealized gains (losses), net of tax of $(158) and $(11)		536		37

Less: reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0 and $809		1		(2,454)

Net change		537		(2,417)
Other, net of tax of $(1) and $1		1		2
Total other comprehensive income (loss)		(558)		(880)
Comprehensive income		$	9,873	$	16,247

See accompanying notes to consolidated financial statements.

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AMAZON.COM, INC.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)


	December 31, 2024		March 31, 2025
			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	78,779	$	66,207
Marketable securities	22,423		28,358
Inventories	34,214		35,864
Accounts receivable, net and other	55,451		54,216
Total current assets	190,867		184,645
Property and equipment, net	252,665		272,781
Operating leases	76,141		78,495
Goodwill	23,074		23,089
Other assets	82,147		84,246
Total assets	$	624,894	$	643,256
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	94,363	$	89,241
Accrued expenses and other	66,965		66,331
Unearned revenue	18,103		20,599
Total current liabilities	179,431		176,171
Long-term lease liabilities	78,277		79,871
Long-term debt	52,623		53,374
Other long-term liabilities	28,593		27,973
Commitments and contingencies (Note 4)
Stockholders’ equity:
Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding)	—		—
Common stock ($0.01 par value; 100,000 shares authorized; 11,108 and 11,128 shares issued; 10,593 and 10,613 shares outstanding)	111		111
Treasury stock, at cost	(7,837)		(7,837)
Additional paid-in capital	120,864		124,514
Accumulated other comprehensive income (loss)	(34)		(914)
Retained earnings	172,866		189,993
Total stockholders’ equity	285,970		305,867
Total liabilities and stockholders’ equity	$	624,894	$	643,256

See accompanying notes to consolidated financial statements.

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AMAZON.COM, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1 — ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES

Unaudited Interim Financial Information

We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2025 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2024 Annual Report on Form 10-K.

Principles of Consolidation

The consolidated financial statements include the accounts of Amazon.com, Inc. and its consolidated entities (collectively, the “Company”), consisting of its wholly-owned subsidiaries and those entities in which we have a variable interest and of which we are the primary beneficiary, including certain entities in India and certain entities that support our healthcare services and production and distribution of video content. Intercompany balances and transactions between consolidated entities are eliminated.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, income taxes, useful lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, inventory valuation, collectability of receivables, impairment of property and equipment and operating leases, valuation and impairment of investments, self-insurance liabilities, viewing patterns of capitalized video content, and the determination of when to capitalize certain costs relating to new products or service offerings. Actual results could differ materially from these estimates. We review the useful lives of equipment on an ongoing basis.

Effective January 1, 2025 we changed our estimate of the useful lives of a subset of our servers and networking equipment from six years to five years. The shorter useful lives are due to the increased pace of technology development, particularly in the area of artificial intelligence and machine learning. The effect of this change in estimate for Q1 2025, based on servers and networking equipment that were included in “Property and equipment, net” as of December 31, 2024 and those acquired during the three months ended March 31, 2025, was an increase in depreciation and amortization expense of $217 million and a reduction in net income of $162 million, or $0.02 per basic share and $0.02 per diluted share, which primarily impacted our AWS segment.

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Supplemental Cash Flow Information

The following table shows supplemental cash flow information (in millions):


	Three Months Ended March 31,				Twelve Months Ended March 31,
	2024		2025			2024		2025
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt, net of capitalized interest	$	269	$	236		$	2,475	$	1,825
Cash paid for operating leases	3,332		3,562			11,318		12,571
Cash paid for interest on finance leases	74		71			301		284
Cash paid for interest on financing obligations	64		55			201		210
Cash paid for income taxes, net of refunds	458		877			11,018		12,727
Assets acquired under operating leases	3,753		4,321			14,179		15,992
Property and equipment acquired under finance leases, net of remeasurements and modifications	42		54			676		866
Increase (decrease) in property and equipment acquired but not yet paid	411		3,108			801		9,736

Earnings Per Share

Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect.

The following table shows the calculation of diluted shares (in millions):


	Three Months Ended March 31,
	2024	2025
Shares used in computation of basic earnings per share	10,393	10,603
Total dilutive effect of outstanding stock awards	277	190
Shares used in computation of diluted earnings per share	10,670	10,793

Other Income (Expense), Net

Other income (expense), net is as follows (in millions):


	Three Months Ended March 31,
	2024		2025
Marketable equity securities valuation gains (losses)	$	(2,126)	$	(138)
Equity warrant valuation gains (losses)	(230)		(378)
Reclassification adjustment for gains (losses) on available-for-sale debt securities	(1)		3,263
Upward adjustments relating to equity investments in private companies	5		37
Foreign currency gains (losses)	(74)		(2)
Other, net	(247)		(33)
Total other income (expense), net	$	(2,673)	$	2,749

The marketable equity securities valuation gain (loss) of $(2.1) billion and $(138) million in Q1 2024 and Q1 2025 is primarily from our equity investment in Rivian Automotive, Inc. (“Rivian”). The reclassification adjustment for the gain on available-for-sale debt securities of $3.3 billion in Q1 2025 is primarily from the portion of our convertible notes investments in Anthropic, PBC that were converted to nonvoting preferred stock during the three months ended March 31, 2025.

Inventories

Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product

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vendors, or liquidations, and expected recoverable values of each disposition category. The inventory valuation allowance, representing a write-down of inventory, was $3.0 billion and $2.8 billion as of December 31, 2024 and March 31, 2025.

Accounts Receivable, Net and Other

Included in “Accounts receivable, net and other” on our consolidated balance sheets are receivables primarily related to customers, vendors, and prepaid expenses and other current assets. As of December 31, 2024 and March 31, 2025, customer receivables, net, were $34.3 billion and $35.5 billion, vendor receivables, net, were $11.6 billion and $9.1 billion, and other receivables, net, were $3.4 billion. Prepaid expenses and other current assets, which include amounts related to non-income taxes and satellite network launch services deposits, were $6.3 billion and $6.2 billion as of December 31, 2024 and March 31, 2025. We currently expense satellite network launch services deposits upon launch to “Technology and infrastructure.”

We estimate losses on receivables based on expected losses, including our historical experience of actual losses. The allowance for doubtful accounts was $2.0 billion as of December 31, 2024 and March 31, 2025.

Digital Video and Music Content

Included in “Other assets” on our consolidated balance sheets are the total capitalized costs of video, which is primarily released content, and music, which as of December 31, 2024 and March 31, 2025 were $19.6 billion and $20.3 billion. Total video and music expense was $4.6 billion and $5.1 billion in Q1 2024 and Q1 2025.

Unearned Revenue

Unearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships. Our total unearned revenue as of December 31, 2024 was $24.6 billion, of which $7.0 billion was recognized as revenue during the three months ended March 31, 2025. Included in “Other long-term liabilities” on our consolidated balance sheets was $6.5 billion and $4.9 billion of unearned revenue as of December 31, 2024 and March 31, 2025.

Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were approximately $189 billion as of March 31, 2025. The weighted-average remaining life of our long-term contracts is 4.1 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term.

Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. We expect to adopt the ASU on a retroactive basis.

In November 2024, the FASB issued an ASU amending existing income statement disclosure guidance, primarily requiring more detailed disclosure for expenses. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments can be applied on either a prospective or retroactive basis. We are currently evaluating the ASU to determine its impact on our disclosures.

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Note 2 — FINANCIAL INSTRUMENTS

Cash, Cash Equivalents, Restricted Cash, and Marketable Securities

As of December 31, 2024 and March 31, 2025, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S. and foreign government and agency securities, other investment grade securities, and marketable equity securities. Cash equivalents and marketable securities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

**Level 1—**Valuations based on quoted prices for identical assets and liabilities in active markets.

**Level 2—**Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

**Level 3—**Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

We measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or liabilities. Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data.

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The following table summarizes, by major security type, our cash, cash equivalents, restricted cash, and marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in millions):


	December 31, 2024		March 31, 2025
	Total Estimated Fair Value		Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value
Cash	$	17,055	$	15,794	$	—	$	—	$	15,794
Level 1 securities:
Money market funds	28,282		18,357		—		—		18,357
Equity securities (1)	3,318								3,001
Level 2 securities:
Foreign government and agency securities	177		180		—		—		180
U.S. government and agency securities	3,401		4,709		5		(40)		4,674
Corporate debt securities	50,912		54,744		9		(28)		54,725
Asset-backed securities	1,523		1,471		2		(15)		1,458
Other debt securities	67		62		—		—		62

	$	104,735	$	95,317	$	16	$	(83)	$	98,251
Less: Restricted cash, cash equivalents, and marketable securities (2)	(3,533)								(3,686)
Total cash, cash equivalents, and marketable securities	$	101,202							$	94,565

(1)The related unrealized gain (loss) recorded in “Other income (expense), net” was $(2.1) billion and $(205) million in Q1 2024 and Q1 2025.

(2)We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable debt securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, standby and trade letters of credit, and licenses of digital media content. We classify cash, cash equivalents, and marketable debt securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 4 — Commitments and Contingencies.”

The following table summarizes the remaining contractual maturities of our cash equivalents and marketable debt securities as of March 31, 2025 (in millions):


	Amortized Cost		Estimated Fair Value
Due within one year	$	71,764	$	71,743
Due after one year through five years	6,436		6,423
Due after five years through ten years	538		534
Due after ten years	785		756
Total	$	79,523	$	79,456

Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions.

Non-Marketable Investments

In Q3 2023, we invested in a $1.25 billion note from Anthropic, PBC, which is convertible to equity. In Q1 2024, we invested $2.75 billion in a second convertible note. In Q4 2024, we entered into an agreement and invested $1.3 billion in a third convertible note, and will invest an additional $2.7 billion by Q4 2025. The notes are classified as available-for-sale and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive income (loss).” The notes are classified as Level 3 assets, and as of December 31, 2024 had an estimated fair value of approximately $13.8 billion. In making these estimates, we utilized valuation methods based on information available, including the rights and obligations of the convertible notes, other outstanding classes of securities, observable transactions such as new securities offerings, estimates of expected time to and type of liquidity events and anticipated securities offerings, and discounts for lack of marketability. In Q1 2025, a portion of the notes were converted to nonvoting preferred stock. As a result of conversions, a significant portion of the unrealized gain associated with the notes as of December 31, 2024 was reclassified and a gain of approximately $3.3 billion was recorded in “Other income (expense), net” in our consolidated statement of operations. The investment in nonvoting preferred stock was initially recorded at its estimated fair value at the time of the conversion and will be accounted for as a

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component of our equity investments in private companies not accounted for under the equity-method, with future adjustments for observable changes in prices or impairments recognized in “Other income (expense), net” on our consolidated statements of operations. As of March 31, 2025, the estimated fair value of our convertible notes and amounts recorded for nonvoting preferred stock investments was approximately $13.8 billion. We also have a commercial arrangement primarily for the provision of AWS cloud services, which includes the use of AWS chips.

As of December 31, 2024 and March 31, 2025, equity investments in private companies not accounted for under the equity-method had a carrying value of $989 million and $6.1 billion, with adjustments for observable changes in prices or impairments recognized in “Other income (expense), net” on our consolidated statements of operations.

As of December 31, 2024 and March 31, 2025, equity investments accounted for under the equity-method of accounting, including investments for which we have elected the fair value option, had a carrying value of $1.2 billion.

We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2024 and March 31, 2025, these warrants had a fair value of $2.7 billion and $1.9 billion, with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations. These warrants are classified as Level 2 and 3 assets.

These non-marketable investments are included within “Other assets” on our consolidated balance sheets.

Certain of our investments represent a variable interest in an entity for which we do not consolidate because we are not the primary beneficiary.

Consolidated Statements of Cash Flows Reconciliation

The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions):


	December 31, 2024		March 31, 2025
Cash and cash equivalents	$	78,779	$	66,207
Restricted cash included in accounts receivable, net and other	247		365
Restricted cash included in other assets	3,286		3,321
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$	82,312	$	69,893

Note 3 — LEASES

We have entered into non-cancellable operating and finance leases for fulfillment network, data center, office, and physical store facilities as well as server and networking equipment, aircraft, and vehicles. Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “Property and equipment, net” and were $56.5 billion and $54.7 billion as of December 31, 2024 and March 31, 2025. Accumulated amortization associated with finance leases was $41.8 billion and $40.6 billion as of December 31, 2024 and March 31, 2025.

Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions):


	Three Months Ended March 31,
		2024		2025
Operating lease cost		$	2,829	$	3,240
Finance lease cost:
Amortization of lease assets		941		873
Interest on lease liabilities		73		71
Finance lease cost		1,014		944

Variable lease cost		635		696
Total lease cost		$	4,478	$	4,880

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Other information about lease amounts recognized in our consolidated financial statements is as follows:


	December 31, 2024		March 31, 2025
Weighted-average remaining lease term – operating leases	10.6 years		10.4 years
Weighted-average remaining lease term – finance leases	11.9 years		11.9 years
Weighted-average discount rate – operating leases	3.5	%	3.5	%
Weighted-average discount rate – finance leases	3.0	%	3.0	%

Our lease liabilities were as follows (in millions):


	December 31, 2024
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	95,294	$	12,520	$	107,814
Less: imputed interest	(15,698)		(1,918)		(17,616)
Present value of lease liabilities	79,596		10,602		90,198
Less: current portion of lease liabilities	(10,546)		(1,375)		(11,921)
Total long-term lease liabilities	$	69,050	$	9,227	$	78,277


	March 31, 2025
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	97,593	$	12,252	$	109,845
Less: imputed interest	(15,862)		(1,869)		(17,731)
Present value of lease liabilities	81,731		10,383		92,114
Less: current portion of lease liabilities	(10,884)		(1,359)		(12,243)
Total long-term lease liabilities	$	70,847	$	9,024	$	79,871

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Note 4 — COMMITMENTS AND CONTINGENCIES

Commitments

The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of March 31, 2025 (in millions):


	Nine Months Ended December 31,		Year Ended December 31,
	2025		2026		2027		2028		2029		Thereafter		Total
Long-term debt principal and interest	$	6,630	$	4,501	$	10,446	$	3,686	$	4,387	$	57,817	$	87,467
Operating lease liabilities	10,058		11,817		10,808		9,815		9,070		46,025		97,593
Finance lease liabilities, including interest	1,183		1,468		1,301		1,137		1,028		6,135		12,252
Financing obligations, including interest (1)	345		519		527		536		544		6,440		8,911
Leases not yet commenced	2,116		4,017		5,142		4,591		4,628		46,707		67,201
Unconditional purchase obligations (2)	8,091		9,943		7,476		5,919		5,635		28,304		65,368
Other commitments (3)	2,477		1,678		1,066		950		830		11,523		18,524
Total commitments	$	30,900	$	33,943	$	36,766	$	26,634	$	26,122	$	202,951	$	357,316

(1)Includes non-cancellable financing obligations for fulfillment network and data center facilities. Excluding interest, current financing obligations of $312 million and $275 million are recorded within “Accrued expenses and other” and $7.1 billion are recorded within “Other long-term liabilities” as of December 31, 2024 and March 31, 2025. The weighted-average remaining term of the financing obligations was 16.1 years and 15.8 years and the weighted-average imputed interest rate was 3.1% as of December 31, 2024 and March 31, 2025.

(2)Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content, procure energy, acquire property and equipment, and license software that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. Energy agreements based on actual generation without a fixed or minimum volume commitment are not included. Our energy agreements generally provide the right to receive energy certificates for no additional consideration.

(3)Includes asset retirement obligations, the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction, and liabilities associated with digital media content agreements with initial terms greater than one year. Excludes approximately $6.3 billion of income tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any.

Other Contingencies

We are disputing claims and denials of refunds or credits, and monitoring or evaluating potential claims, related to various non-income taxes (such as sales, value added, consumption, service, and similar taxes), including in jurisdictions in which we already collect and remit these taxes. These non-income tax controversies typically include (i) the taxability of products and services, including cross-border intercompany transactions, (ii) collection and withholding on transactions with third parties, including as a result of evolving requirements imposed on marketplaces with respect to third-party sellers, and (iii) the adequacy of compliance with reporting obligations, including evolving documentation requirements. Due to the inherent complexity and uncertainty of these matters and the judicial and regulatory processes in certain jurisdictions, the final outcome of any such controversies may be materially different from our expectations.

Legal Proceedings

The Company is involved from time to time in claims, proceedings, and litigation, including the matters described in Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings” of our 2024 Annual Report on Form 10-K, as supplemented by the following:

In July 2021, the Luxembourg National Commission for Data Protection (the “CNPD”) issued a decision against Amazon Europe Core S.à r.l. claiming that Amazon’s processing of personal data did not comply with the EU General Data Protection Regulation. The decision imposes a fine of €746 million and corresponding practice revisions. In March 2025, the Luxembourg Administrative Court dismissed our appeal of the CNPD’s decision. In April 2025, we appealed the court’s decision to the Luxembourg Administrative Court of Appeal. We believe the CNPD’s decision to be without merit and will continue to defend ourselves vigorously in this matter.

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In addition, we are regularly subject to claims, litigation, and other proceedings, including potential regulatory proceedings, involving patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, privacy and data protection, consumer protection, commercial disputes, goods and services offered by us and by third parties, and other matters.

The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. We evaluate, on a regular basis, developments in our legal proceedings and other contingencies that could affect the amount of liability, including amounts in excess of any previous accruals and reasonably possible losses disclosed, and make adjustments and changes to our accruals and disclosures as appropriate. For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. Until the final resolution of such matters, if any of our estimates and assumptions change or prove to have been incorrect, we may experience losses in excess of the amounts recorded, which could have a material effect on our business, consolidated financial position, results of operations, or cash flows.

See also “Note 7 — Income Taxes.”

Note 5 — DEBT

As of March 31, 2025, we had $58.0 billion of unsecured senior notes outstanding (the “Notes”). Our total long-term debt obligations are as follows (in millions):


	Maturities (1)	Stated Interest Rates	Effective Interest Rates	December 31, 2024		March 31, 2025
2014 Notes issuance of $6.0 billion	2034 - 2044	4.80% - 4.95%	4.93% - 5.12%	2,750		2,750
2017 Notes issuance of $17.0 billion	2025 - 2057	3.15% - 5.20%	3.02% - 4.33%	13,000		13,000
2020 Notes issuance of $10.0 billion	2025 - 2060	0.80% - 2.70%	0.88% - 2.77%	9,000		9,000
2021 Notes issuance of $18.5 billion	2026 - 2061	1.00% - 3.25%	1.14% - 3.31%	15,000		15,000
April 2022 Notes issuance of $12.8 billion	2025 - 2062	3.00% - 4.10%	3.13% - 4.15%	11,250		11,250
December 2022 Notes issuance of $8.3 billion	2025 - 2032	4.55% - 4.70%	4.61% - 4.74%	7,000		7,000
Other long-term debt				—		750

Total face value of long-term debt				58,000		58,750
Unamortized discount and issuance costs, net				(360)		(362)
Less: current portion of long-term debt				(5,017)		(5,014)
Long-term debt				$	52,623	$	53,374

(1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 15.1, 15.0, 16.3, 13.9, 12.6, and 4.4 years as of March 31, 2025. The combined weighted-average remaining life of the Notes was 13.2 years as of March 31, 2025.

Interest on the Notes is payable semi-annually in arrears. We may redeem the Notes at any time in whole, or from time to time, in part at specified redemption prices. We are not subject to any financial covenants under the Notes. The estimated fair value of the Notes was approximately $50.2 billion and $50.8 billion as of December 31, 2024 and March 31, 2025, which is based on quoted prices for our debt as of those dates.

As of September 30, 2024, we had repaid outstanding borrowings and terminated the secured revolving credit facility with a lender that was secured by certain seller receivables (the “Credit Facility”). The Credit Facility bore interest based on the daily Secured Overnight Financing Rate plus 1.25%, and had a commitment fee of up to 0.45% on the undrawn portion.

In January 2023, we entered into an $8.0 billion unsecured 364-day term loan with a syndicate of lenders (the “Term Loan”), maturing in January 2024 and bearing interest at the Secured Overnight Financing Rate specified in the Term Loan plus 0.75%. The Term Loan was classified as short-term debt and included within “Accrued expenses and other” on our consolidated balance sheets. As of December 31, 2023, the entire amount of the Term Loan had been repaid.

As of March 31, 2025, we had U.S. Dollar and Euro commercial paper programs (the “Commercial Paper Programs”) under which we may from time to time issue unsecured commercial paper up to a total of $20.0 billion (including up to €3.0 billion) at the date of issue, with individual maturities that may vary but will not exceed 397 days from the date of issue. In

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April 2025, we increased the size of the Commercial Paper Programs from $20.0 billion to $30.0 billion. There were no borrowings outstanding under the Commercial Paper Programs as of December 31, 2024 and March 31, 2025. We use the net proceeds from the issuance of commercial paper for general corporate purposes.

We have a $15.0 billion unsecured revolving credit facility with a syndicate of lenders (the “Credit Agreement”), with a term that extends to November 2028 and may be extended for one or more additional one-year terms subject to approval by the lenders. The interest rate applicable to outstanding balances under the Credit Agreement is the applicable benchmark rate specified in the Credit Agreement plus 0.45%, with a commitment fee of 0.03% on the undrawn portion of the credit facility. There were no borrowings outstanding under the Credit Agreement as of December 31, 2024 and March 31, 2025.

We have a $5.0 billion unsecured 364-day revolving credit facility with a syndicate of lenders (the “Short-Term Credit Agreement”), which matures in October 2025 and may be extended for one additional period of 364 days subject to approval by the lenders. The interest rate applicable to outstanding balances under the Short-Term Credit Agreement is the Secured Overnight Financing Rate specified in the Short-Term Credit Agreement plus 0.45%, with a commitment fee of 0.03% on the undrawn portion. There were no borrowings outstanding under the Short-Term Credit Agreement as of December 31, 2024 and March 31, 2025.

We also utilize other short-term credit facilities for working capital purposes. There were $151 million and $76 million of borrowings outstanding under these facilities as of December 31, 2024 and March 31, 2025, which were included in “Accrued expenses and other” on our consolidated balance sheets. In addition, we had $8.6 billion of unused letters of credit as of March 31, 2025.

Note 6 — STOCKHOLDERS’ EQUITY

Stock Repurchase Activity

In March 2022, the Board of Directors authorized a program to repurchase up to $10.0 billion of our common stock, with no fixed expiration. There were no repurchases of our common stock during the three months ended March 31, 2024 or 2025. As of March 31, 2025, we have $6.1 billion remaining under the repurchase program.

Stock Award Plans

Employees vest in restricted stock unit awards over the corresponding service term, generally between two and five years. The majority of restricted stock unit awards are granted at the date of hire or in Q2 as part of the annual compensation review and primarily vest semi-annually in Q2 and Q4 of the relevant compensation year.

Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 10.9 billion as of December 31, 2024 and March 31, 2025. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited. Stock-based compensation expense is as follows (in millions):


	Three Months Ended March 31,
		2024		2025
Cost of sales		$	174	$	148
Fulfillment		636		497
Technology and infrastructure		2,772		2,060
Sales and marketing		932		653
General and administrative		447		331
Total stock-based compensation expense		$	4,961	$	3,689

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The following table summarizes our restricted stock unit activity for the three months ended March 31, 2025 (in millions):


	Number of Units	Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2024	283.1	$	145
Units granted	8.3	214
Units vested	(19.7)	137
Units forfeited	(8.7)	142
Outstanding as of March 31, 2025	263.0	148

Scheduled vesting for outstanding restricted stock units as of March 31, 2025, is as follows (in millions):


	Nine Months Ended December 31,	Year Ended December 31,
	2025	2026	2027	2028	2029	Thereafter	Total
Scheduled vesting — restricted stock units	122.9	86.7	35.9	13.9	2.2	1.4	263.0

As of March 31, 2025, there was $13.9 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with more than half of the compensation expected to be expensed in the next twelve months, and has a remaining weighted-average recognition period of 1.0 year.

Changes in Stockholders’ Equity

The following table shows changes in stockholders’ equity (in millions):


	Three Months Ended March 31,
		2024		2025
Total beginning stockholders’ equity		$	201,875	$	285,970

Beginning and ending common stock		109		111





Beginning and ending treasury stock		(7,837)		(7,837)

Beginning additional paid-in capital		99,025		120,864
Stock-based compensation and issuance of employee benefit plan stock		4,913		3,650
Ending additional paid-in capital		103,938		124,514

Beginning accumulated other comprehensive income (loss)		(3,040)		(34)
Other comprehensive income (loss)		(558)		(880)
Ending accumulated other comprehensive income (loss)		(3,598)		(914)

Beginning retained earnings		113,618		172,866

Net income		10,431		17,127
Ending retained earnings		124,049		189,993

Total ending stockholders’ equity		$	216,661	$	305,867

Note 7 — INCOME TAXES

Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.

Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of

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jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, changes in how we do business, acquisitions, investments, developments in tax controversies, changes in our stock price, changes in our deferred tax assets and liabilities and their valuation, foreign currency gains (losses), changes in statutes, regulations, case law, and administrative practices, principles, and interpretations related to tax, including changes to the global tax framework, competition, and other laws and accounting rules in various jurisdictions, and relative changes of expenses or losses for which tax benefits are not recognized. Our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. In addition, we record valuation allowances against deferred tax assets when there is uncertainty about our ability to generate future income in relevant jurisdictions.

For 2025, we estimate that our effective tax rate will be favorably impacted by the U.S. federal research and development credit and foreign income deduction and adversely affected by state income taxes.

Our income tax provision for the three months ended March 31, 2024 was $2.5 billion, which included $558 million of net discrete tax benefits. Our income tax provision for the three months ended March 31, 2025 was $4.6 billion, which included $559 million of net discrete tax expense.

Cash paid for income taxes, net of refunds was $458 million and $877 million in Q1 2024 and Q1 2025.

As of December 31, 2024 and March 31, 2025, income tax contingencies were approximately $6.5 billion and $6.3 billion. Changes in tax laws, regulations, administrative practices, principles, and interpretations may impact our tax contingencies. Due to various factors, including the inherent complexities and uncertainties of the judicial, administrative, and regulatory processes in certain jurisdictions, the timing of the resolution of income tax controversies is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next twelve months we will receive additional assessments by various tax authorities or possibly reach resolution of income tax controversies in one or more jurisdictions. These assessments or settlements could result in changes to our contingencies related to positions on prior years’ tax filings.

We are under examination, or may be subject to examination, by the Internal Revenue Service for the calendar year 2016 and thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating losses with respect to years under examination as well as subsequent periods.

We are also subject to taxation in various states and foreign jurisdictions including China, France, Germany, India, Japan, Luxembourg, and the United Kingdom. We are under, or may be subject to, audit or examination and additional assessments by the relevant authorities in respect of these particular jurisdictions primarily for 2011 and thereafter. We are currently disputing tax assessments in multiple jurisdictions, including with respect to the allocation and characterization of income.

In September 2022, the Luxembourg tax authority (“LTA”) denied the tax basis of certain intangible assets that we distributed from Luxembourg to the U.S. in 2021. When we are assessed by the LTA, we will need to remit taxes related to this matter. We believe the LTA’s position is without merit, we intend to defend ourselves vigorously in this matter, and we expect to recoup taxes paid.

The Indian tax authority (“ITA”) has asserted that tax applies to cloud services fees paid to Amazon in the U.S. We will need to remit taxes related to this matter until it is resolved, which payments could be significant in the aggregate. We believe the ITA’s position is without merit, we are defending our position vigorously, and we expect to recoup taxes paid. If this matter is adversely resolved, we could recognize significant additional tax expense, including for taxes previously paid.

Note 8 — SEGMENT INFORMATION

We have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Technology and infrastructure,” “Sales and marketing,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology costs recorded in “Technology and infrastructure” are incurred in the U.S. and are included in our North America and AWS segments. The majority of infrastructure costs recorded in “Technology and infrastructure” are allocated to the AWS segment based on usage. There are no internal revenue transactions between our reportable segments. Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. Our CODM regularly reviews consolidated net sales, consolidated operating expenses, and consolidated operating income (loss) by segment. Amounts included in consolidated operating expenses include “Cost of sales,” “Fulfillment,” “Technology and infrastructure,” “Sales and marketing,” “General and administrative,” and “Other operating expense (income), net.” Our CODM manages our business primarily by reviewing consolidated results by segment on a quarterly basis, and using those results along with forecasts and other non-financial information in our annual budgeting process.

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North America

The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and advertising and subscription services through North America-focused online and physical stores. This segment includes export sales from these online stores.

International

The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and advertising and subscription services through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores.

AWS

The AWS segment consists of amounts earned from global sales of compute, storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions.

Information on reportable segments and reconciliation to consolidated net income is as follows (in millions):


	Three Months Ended March 31,
		2024		2025
North America
Net sales		$	86,341	$	92,887
Operating expenses		81,358		87,046
Operating income		$	4,983	$	5,841

International
Net sales		$	31,935	$	33,513
Operating expenses		31,032		32,496
Operating income		$	903	$	1,017

AWS
Net sales		$	25,037	$	29,267
Operating expenses		15,616		17,720
Operating income		$	9,421	$	11,547

Consolidated
Net sales		$	143,313	$	155,667
Operating expenses		128,006		137,262
Operating income		15,307		18,405
Total non-operating income (expense)		(2,324)		3,274
Provision for income taxes		(2,467)		(4,553)
Equity-method investment activity, net of tax		(85)		1
Net income		$	10,431	$	17,127

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Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions):


	Three Months Ended March 31,
		2024		2025
Net Sales:
Online stores (1)		$	54,670	$	57,407
Physical stores (2)		5,202		5,533
Third-party seller services (3)		34,596		36,512
Advertising services (4)		11,824		13,921
Subscription services (5)		10,722		11,715
AWS		25,037		29,267
Other (6)		1,262		1,312
Consolidated		$	143,313	$	155,667

(1)Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”

(2)Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”

(3)Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.

(4)Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.

(5)Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.

(6)Includes sales related to various other offerings (such as shipping services, healthcare services, and certain licensing and distribution of video content) and our co-branded credit card agreements.

Total segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities, goodwill and other acquired intangible assets, and tax assets. Technology infrastructure assets are allocated among the segments based on usage, with the majority allocated to the AWS segment. Total segment assets reconciled to consolidated amounts are as follows (in millions):


	December 31, 2024		March 31, 2025
North America (1)	$	210,120	$	210,198
International (1)	69,487		70,231
AWS (2)	155,953		179,386
Corporate	189,334		183,441
Consolidated	$	624,894	$	643,256

(1)North America and International segment assets primarily consist of property and equipment, operating leases, inventory, accounts receivable, and digital video and music content.

(2)AWS segment assets primarily consist of property and equipment, accounts receivable, and operating leases.

Property and equipment, net by segment is as follows (in millions):


	December 31, 2024		March 31, 2025
North America	$	103,041	$	102,301
International	25,618		26,170
AWS	110,683		130,919
Corporate	13,323		13,391
Consolidated	$	252,665	$	272,781

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Total net additions to property and equipment include technology infrastructure assets, which are allocated among the segments based on usage, with the majority allocated to the AWS segment. Total net additions to property and equipment include the effect of non-cash activity such as property and equipment acquired but not yet paid. Total net additions to property and equipment are as follows (in millions):


	Three Months Ended March 31,
	2024		2025
North America (1)	$	5,151	$	5,096
International (1)	1,109		1,506
AWS (2)	7,925		20,464
Corporate	372		383
Consolidated	$	14,557	$	27,449

(1)Includes property and equipment added under finance leases of $7 million and $54 million in Q1 2024 and Q1 2025.

(2)Includes property and equipment added under finance leases of $35 million and $0 million in Q1 2024 and Q1 2025.

Depreciation and amortization expense on property and equipment, including corporate property and equipment, are allocated to all segments based on usage. Total depreciation and amortization expense, by segment, is as follows (in millions):


	Three Months Ended March 31,
	2024		2025
North America	$	3,373	$	3,530
International	1,054		1,136
AWS	2,839		4,390
Consolidated	$	7,266	$	9,056

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