Item 1. Financial Statements

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Item 1. Financial Statements

AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

Three Months Ended June 30,Six Months Ended June 30,Twelve Months Ended June 30,
202420252024202520242025
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD$73,332$69,893$73,890$82,312$50,067$71,673
OPERATING ACTIVITIES:
Net income13,48518,16423,91635,29144,41970,623
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 other12,03815,22723,72229,48949,67358,562
Stock-based compensation6,7226,53411,68310,22323,83120,551
Non-operating expense (income), net(95)(1,258)2,639(4,075)1,310(4,702)
Deferred income taxes(785)11(1,723)518(4,383)(2,407)
Changes in operating assets and liabilities:
Inventories(3,085)(4,054)(1,309)(5,276)2,142(5,851)
Accounts receivable, net and other(2,209)(1,125)1,475122(9,556)(4,602)
Other assets(3,055)(2,971)(5,756)(6,373)(11,692)(15,100)
Accounts payable6,0057,058(5,277)(1,985)8,4316,264
Accrued expenses and other(4,147)(4,952)(7,075)(9,013)(1,802)(4,842)
Unearned revenue407(119)1,9756095,5792,641
Net cash provided by (used in) operating activities25,28132,51544,27049,530107,952121,137
INVESTING ACTIVITIES:
Purchases of property and equipment(17,620)(32,183)(32,545)(57,202)(59,612)(107,656)
Proceeds from property and equipment sales and incentives1,2278152,2171,5794,6334,703
Acquisitions, net of cash acquired, non-marketable investments, and other, net(571)(1,700)(3,925)(1,652)(5,935)(4,809)
Sales and maturities of marketable securities3,26511,4414,65719,1787,61830,924
Purchases of marketable securities(8,439)(17,797)(10,404)(31,130)(11,058)(46,731)
Net cash provided by (used in) investing activities(22,138)(39,424)(40,000)(69,227)(64,354)(123,569)
FINANCING ACTIVITIES:
Proceeds from short-term debt, and other5252,0938633,9081,8138,187
Repayments of short-term debt, and other(229)(1,392)(633)(3,474)(15,066)(7,901)
Proceeds from long-term debt———746—746
Repayments of long-term debt(4,169)(2,751)(4,499)(2,751)(4,789)(7,434)
Principal repayments of finance leases(538)(411)(1,308)(821)(3,092)(1,556)
Principal repayments of financing obligations(79)(78)(169)(194)(306)(694)
Net cash provided by (used in) financing activities(4,490)(2,539)(5,746)(2,586)(21,440)(8,652)
Foreign currency effect on cash, cash equivalents, and restricted cash(312)1,008(741)1,424(552)864
Net increase (decrease) in cash, cash equivalents, and restricted cash(1,659)(8,440)(2,217)(20,859)21,606(10,220)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD$71,673$61,453$71,673$61,453$71,673$61,453

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 June 30,Six Months Ended June 30,
2024202520242025
Net product sales$61,569$68,246$122,484$132,216
Net service sales86,40899,456168,806191,153
Total net sales147,977167,702291,290323,369
Operating expenses:
Cost of sales73,78580,809146,418157,785
Fulfillment23,56625,97645,88350,569
Technology and infrastructure22,30427,16642,72850,160
Sales and marketing10,51211,41620,17421,179
General and administrative3,0412,9655,7835,593
Other operating expense (income), net97199325507
Total operating expenses133,305148,531261,311285,793
Operating income14,67219,17129,97937,576
Interest income1,1801,0852,1732,151
Interest expense(589)(516)(1,233)(1,057)
Other income (expense), net(18)1,117(2,691)3,866
Total non-operating income (expense)5731,686(1,751)4,960
Income before income taxes15,24520,85728,22842,536
Provision for income taxes(1,767)(2,678)(4,234)(7,231)
Equity-method investment activity, net of tax7(15)(78)(14)
Net income$13,485$18,164$23,916$35,291
Basic earnings per share$1.29$1.71$2.30$3.32
Diluted earnings per share$1.26$1.68$2.24$3.27
Weighted-average shares used in computation of earnings per share:
Basic10,44710,63710,42010,620
Diluted10,70810,80610,68910,800

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 June 30,Six Months Ended June 30,
2024202520242025
Net income$13,485$18,164$23,916$35,291
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $58, $(142), $88, and $(208)(637)3,314(1,733)4,849
Available-for-sale debt securities:
Change in net unrealized gains (losses), net of tax of $(69), $(12), $(227), and $(23)2414077777
Less: reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $(1), $5, $(1), and $8143(17)4(2,471)
Net change24423781(2,394)
Other, net of tax of $(1), $(1), $(2), and $0(2)(3)(1)(1)
Total other comprehensive income (loss)(395)3,334(953)2,454
Comprehensive income$13,090$21,498$22,963$37,745

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, 2024June 30, 2025
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents$78,779$57,741
Marketable securities22,42335,439
Inventories34,21440,825
Accounts receivable, net and other55,45157,415
Total current assets190,867191,420
Property and equipment, net252,665297,616
Operating leases76,14182,125
Goodwill23,07423,155
Other assets82,14787,854
Total assets$624,894$682,170
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$94,363$98,285
Accrued expenses and other66,96566,974
Unearned revenue18,10321,662
Total current liabilities179,431186,921
Long-term lease liabilities78,27783,221
Long-term debt52,62350,718
Other long-term liabilities28,59327,535
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 11,175 shares issued; 10,593 and 10,660 shares outstanding)111112
Treasury stock, at cost(7,837)(7,837)
Additional paid-in capital120,864130,923
Accumulated other comprehensive income (loss)(34)2,420
Retained earnings172,866208,157
Total stockholders’ equity285,970333,775
Total liabilities and stockholders’ equity$624,894$682,170

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 Q2 2025, based on servers and networking equipment that were included in “Property and equipment, net” as of March 31, 2025 and those acquired during the three months ended June 30, 2025, was an increase in depreciation and amortization expense of $280 million and a reduction in net income of $217 million, or $0.02 per basic share and $0.02 per diluted share, which primarily impacted our AWS segment. The effect of this change in estimate for the six months ended June 30, 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 six months ended June 30, 2025, was an increase in depreciation and amortization expense of $497 million and a reduction in net income of $379 million, or $0.04 per basic share and $0.04 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 June 30,Six Months Ended June 30,Twelve Months Ended June 30,
202420252024202520242025
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt, net of capitalized interest$680$523$949$759$2,201$1,668
Cash paid for operating leases2,8443,7586,1767,32011,63413,485
Cash paid for interest on finance leases7272146143296284
Cash paid for interest on financing obligations5052114107210212
Cash paid for income taxes, net of refunds5,7004,7616,1585,63812,98311,788
Assets acquired under operating leases3,9114,6217,6648,94213,98616,702
Property and equipment acquired under finance leases, net of remeasurements and modifications1819372239916171,622
Increase (decrease) in property and equipment acquired but not yet paid2,760(1,600)3,1711,5083,7915,376

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 June 30,Six Months Ended June 30,
2024202520242025
Shares used in computation of basic earnings per share10,44710,63710,42010,620
Total dilutive effect of outstanding stock awards261169269180
Shares used in computation of diluted earnings per share10,70810,80610,68910,800

Other Income (Expense), Net

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

Three Months Ended June 30,Six Months Ended June 30,
2024202520242025
Marketable equity securities valuation gains (losses)$443$388$(1,683)$250
Equity warrant valuation gains (losses)(271)590(501)212
Reclassification adjustment for gains (losses) on available-for-sale debt securities(4)22(5)3,285
Upward adjustments relating to equity investments in private companies6491186
Foreign currency gains (losses)(138)70(212)68
Other, net(54)(2)(301)(35)
Total other income (expense), net$(18)$1,117$(2,691)$3,866

The marketable equity securities valuation gain (loss) of $443 million and $388 million in Q2 2024 and Q2 2025, and $(1.7) billion and $250 million for the six months ended June 30, 2024 and 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 for the six months ended June 30, 2025 is primarily from the portion of our convertible notes investments in Anthropic, PBC (“Anthropic”) that were converted to nonvoting preferred stock during the three months ended March 31, 2025.

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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 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 June 30, 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 June 30, 2025, customer receivables, net, were $34.3 billion and $36.6 billion, vendor receivables, net, were $11.6 billion and $10.6 billion, and other receivables, net, were $3.4 billion and $3.5 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 $6.7 billion as of December 31, 2024 and June 30, 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 and $2.1 billion as of December 31, 2024 and June 30, 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 June 30, 2025 were $19.6 billion and $20.4 billion. Total video and music expense was $4.6 billion and $5.1 billion in Q2 2024 and Q2 2025, and $9.2 billion and $10.2 billion for the six months ended June 30, 2024 and 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 $11.4 billion was recognized as revenue during the six months ended June 30, 2025. Included in “Other long-term liabilities” on our consolidated balance sheets was $6.5 billion and $4.3 billion of unearned revenue as of December 31, 2024 and June 30, 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 $195 billion as of June 30, 2025. The weighted-average remaining life of our long-term contracts is 4.0 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 June 30, 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, 2024June 30, 2025
Total Estimated Fair ValueCost or Amortized CostGross Unrealized GainsGross Unrealized LossesTotal Estimated Fair Value
Cash$17,055$16,083$—$—$16,083
Level 1 securities:
Money market funds28,28218,058——18,058
Equity securities (1)3,3183,149
Level 2 securities:
Foreign government and agency securities17784——84
U.S. government and agency securities3,4015,0575(32)5,030
Corporate debt securities50,91252,63426(19)52,641
Asset-backed securities1,5231,8136(12)1,807
Other debt securities6740——40
$104,735$93,769$37$(63)$96,892
Less: Restricted cash, cash equivalents, and marketable securities (2)(3,533)(3,712)
Total cash, cash equivalents, and marketable securities$101,202$93,180

(1)The related unrealized gain (loss) recorded in “Other income (expense), net” was $443 million and $393 million in Q2 2024 and Q2 2025, and $(1.7) billion and $188 million for the six months ended June 30, 2024 and 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 June 30, 2025 (in millions):

Amortized CostEstimated Fair Value
Due within one year$68,262$68,246
Due after one year through five years7,9117,928
Due after five years through ten years610607
Due after ten years903879
Total$77,686$77,660

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

Non-Marketable Investments

From Q3 2023 to Q4 2024, we invested $5.3 billion in convertible notes from Anthropic, which are classified as available-for-sale and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive income (loss)” and 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. Some of these notes converted to nonvoting preferred stock in Q1 2025. 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 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

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operations. In Q2 2025, we invested $1.3 billion in a new convertible note from Anthropic, and will invest an additional $1.4 billion by Q4 2025. As of June 30, 2025, the estimated fair value of our convertible notes and amounts recorded for nonvoting preferred stock investments was approximately $15.1 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 June 30, 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 June 30, 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 June 30, 2025, these warrants had a fair value of $2.7 billion and $2.6 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, 2024June 30, 2025
Cash and cash equivalents$78,779$57,741
Restricted cash included in accounts receivable, net and other247356
Restricted cash included in other assets3,2863,356
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows$82,312$61,453

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 $56.1 billion as of December 31, 2024 and June 30, 2025. Accumulated amortization associated with finance leases was $41.8 billion and $41.5 billion as of December 31, 2024 and June 30, 2025.

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

Three Months Ended June 30,Six Months Ended June 30,
2024202520242025
Operating lease cost$2,921$3,426$5,750$6,666
Finance lease cost:
Amortization of lease assets9488271,8891,700
Interest on lease liabilities7272145143
Finance lease cost1,0208992,0341,843
Variable lease cost5926591,2271,355
Total lease cost$4,533$4,984$9,011$9,864

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

December 31, 2024June 30, 2025
Weighted-average remaining lease term – operating leases10.6 years10.2 years
Weighted-average remaining lease term – finance leases11.9 years12.2 years
Weighted-average discount rate – operating leases3.5%3.6%
Weighted-average discount rate – finance leases3.0%3.0%

Our lease liabilities were as follows (in millions):

December 31, 2024
Operating LeasesFinance LeasesTotal
Gross lease liabilities$95,294$12,520$107,814
Less: imputed interest(15,698)(1,918)(17,616)
Present value of lease liabilities79,59610,60290,198
Less: current portion of lease liabilities(10,546)(1,375)(11,921)
Total long-term lease liabilities$69,050$9,227$78,277
June 30, 2025
Operating LeasesFinance LeasesTotal
Gross lease liabilities$101,506$13,324$114,830
Less: imputed interest(16,515)(2,121)(18,636)
Present value of lease liabilities84,99111,20396,194
Less: current portion of lease liabilities(11,597)(1,376)(12,973)
Total long-term lease liabilities$73,394$9,827$83,221

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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 June 30, 2025 (in millions):

Six Months Ended December 31,Year Ended December 31,
20252026202720282029ThereafterTotal
Long-term debt principal and interest$3,166$4,506$10,546$3,686$4,387$57,812$84,103
Operating lease liabilities7,52912,74111,68310,5639,73549,255101,506
Finance lease liabilities, including interest8381,5691,4101,2671,1217,11913,324
Financing obligations, including interest (1)2245295375465546,5298,919
Leases not yet commenced1,5584,3105,0474,7764,64648,54768,884
Unconditional purchase obligations (2)8,17512,6218,1586,3555,75629,95371,018
Other commitments (3)1,8411,9361,1571,00297511,81018,721
Total commitments$23,331$38,212$38,538$28,195$27,174$211,025$366,475

(1)Includes non-cancellable financing obligations for fulfillment network and data center facilities. Excluding interest, current financing obligations of $312 million and $280 million are recorded within “Accrued expenses and other” and $7.1 billion and $7.2 billion are recorded within “Other long-term liabilities” as of December 31, 2024 and June 30, 2025. The weighted-average remaining term of the financing obligations was 16.1 years and 15.5 years and the weighted-average imputed interest rate was 3.1% as of December 31, 2024 and June 30, 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 $5.8 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 and in Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Report on Form 10-Q for the period ended March 31, 2025, as supplemented by the following:

In June 2025, Xockets, Inc. filed two complaints against Amazon.com, Inc. and Amazon Web Services, Inc. in the United States District Court for the Western District of Texas. The complaints allege, among other things, that certain versions of the AWS Nitro System infringe U.S. Patent Nos. 11,080,209; 10,649,924; 11,082,350; 10,223,297; 9,378,161; 9,436,640; and

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10,212,092. The complaints seek an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, interest, and injunctive relief. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.

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 June 30, 2025, we had $55.3 billion of unsecured senior notes outstanding (the “Notes”). Our total long-term debt obligations are as follows (in millions):

Maturities (1)Stated Interest RatesEffective Interest RatesDecember 31, 2024June 30, 2025
2014 Notes issuance of $6.0 billion2034 - 20444.80% - 4.95%4.93% - 5.12%2,7502,750
2017 Notes issuance of $17.0 billion2025 - 20573.15% - 5.20%3.02% - 4.33%13,00013,000
2020 Notes issuance of $10.0 billion2027 - 20601.20% - 2.70%1.26% - 2.77%9,0007,750
2021 Notes issuance of $18.5 billion2026 - 20611.00% - 3.25%1.14% - 3.31%15,00015,000
April 2022 Notes issuance of $12.8 billion2027 - 20623.30% - 4.10%3.40% - 4.15%11,2509,750
December 2022 Notes issuance of $8.3 billion2025 - 20324.55% - 4.70%4.61% - 4.74%7,0007,000
Other long-term debt—832
Total face value of long-term debt58,00056,082
Unamortized discount and issuance costs, net(360)(359)
Less: current portion of long-term debt(5,017)(5,005)
Long-term debt$52,623$50,718

(1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 14.9, 14.7, 18.6, 13.7, 14.3, and 4.1 years as of June 30, 2025. The combined weighted-average remaining life of the Notes was 13.6 years as of June 30, 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 $48.2 billion as of December 31, 2024 and June 30, 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.

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We have 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 $30.0 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 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 June 30, 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 June 30, 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 June 30, 2025.

We also utilize other short-term credit facilities for working capital purposes. There were $151 million and $173 million of borrowings outstanding under these facilities as of December 31, 2024 and June 30, 2025, which were included in “Accrued expenses and other” on our consolidated balance sheets. In addition, we had $9.0 billion of unused letters of credit as of June 30, 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 six months ended June 30, 2024 or 2025. As of June 30, 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 quarterly in the relevant compensation year.

Stock Award Activity

Common shares outstanding plus shares underlying outstanding stock awards totaled 10.9 billion and 11.0 billion as of December 31, 2024 and June 30, 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 June 30,Six Months Ended June 30,
2024202520242025
Cost of sales$266$250$440$398
Fulfillment9448801,5801,377
Technology and infrastructure3,6703,6556,4425,715
Sales and marketing1,2241,2072,1561,860
General and administrative6185421,065873
Total stock-based compensation expense$6,722$6,534$11,683$10,223

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The following table summarizes our restricted stock unit activity for the six months ended June 30, 2025 (in millions):

Number of UnitsWeighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2024283.1$145
Units granted94.9195
Units vested(67.7)132
Units forfeited(18.6)148
Outstanding as of June 30, 2025291.7164

Scheduled vesting for outstanding restricted stock units as of June 30, 2025, is as follows (in millions):

Six Months Ended December 31,Year Ended December 31,
20252026202720282029ThereafterTotal
Scheduled vesting — restricted stock units72.3114.770.526.75.52.0291.7

As of June 30, 2025, there was $22.7 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 June 30,Six Months Ended June 30,
2024202520242025
Total beginning stockholders’ equity$216,661$305,867$201,875$285,970
Beginning common stock109111109111
Stock-based compensation and issuance of employee benefit plan stock1111
Ending common stock110112110112
Beginning and ending treasury stock(7,837)(7,837)(7,837)(7,837)
Beginning additional paid-in capital103,938124,51499,025120,864
Stock-based compensation and issuance of employee benefit plan stock6,6956,40911,60810,059
Ending additional paid-in capital110,633130,923110,633130,923
Beginning accumulated other comprehensive income (loss)(3,598)(914)(3,040)(34)
Other comprehensive income (loss)(395)3,334(953)2,454
Ending accumulated other comprehensive income (loss)(3,993)2,420(3,993)2,420
Beginning retained earnings124,049189,993113,618172,866
Net income13,48518,16423,91635,291
Ending retained earnings137,534208,157137,534208,157
Total ending stockholders’ equity$236,447$333,775$236,447$333,775

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.

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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 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 adversely affected by state income taxes.

Our income tax provision for the six months ended June 30, 2024 was $4.2 billion, which included $1.9 billion of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation. Our income tax provision for the six months ended June 30, 2025 was $7.2 billion, which included $753 million of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation.

Cash paid for income taxes, net of refunds was $5.7 billion and $4.8 billion in Q2 2024 and Q2 2025, and $6.2 billion and $5.6 billion for the six months ended June 30, 2024 and 2025.

The One Big Beautiful Bill Act of 2025 (the “2025 Tax Act”) was signed into law on July 4, 2025. The 2025 Tax Act makes changes to the U.S. corporate income tax, including reinstating the option to claim 100% accelerated depreciation deductions on qualified property, with retroactive application beginning January 20, 2025, and immediate expensing of domestic research and development costs, with retroactive application beginning January 1, 2025. While we are still evaluating the full extent of the 2025 Tax Act’s impact, in 2025 we expect our U.S. cash taxes to significantly decrease and our income tax provision to increase primarily due to a decrease in our foreign income deduction.

As of December 31, 2024 and June 30, 2025, income tax contingencies were approximately $6.5 billion and $5.8 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

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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.

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 June 30,Six Months Ended June 30,
2024202520242025
North America
Net sales$90,033$100,068$176,374$192,955
Operating expenses84,96892,551166,326179,597
Operating income$5,065$7,517$10,048$13,358
International
Net sales$31,663$36,761$63,598$70,274
Operating expenses31,39035,26762,42267,763
Operating income$273$1,494$1,176$2,511
AWS
Net sales$26,281$30,873$51,318$60,140
Operating expenses16,94720,71332,56338,433
Operating income$9,334$10,160$18,755$21,707
Consolidated
Net sales$147,977$167,702$291,290$323,369
Operating expenses133,305148,531261,311285,793
Operating income14,67219,17129,97937,576
Total non-operating income (expense)5731,686(1,751)4,960
Provision for income taxes(1,767)(2,678)(4,234)(7,231)
Equity-method investment activity, net of tax7(15)(78)(14)
Net income$13,485$18,164$23,916$35,291

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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 June 30,Six Months Ended June 30,
2024202520242025
Net Sales:
Online stores (1)$55,392$61,485$110,062$118,892
Physical stores (2)5,2065,59510,40811,128
Third-party seller services (3)36,20140,34870,79776,860
Advertising services (4)12,77115,69424,59529,615
Subscription services (5)10,86612,20821,58823,923
AWS26,28130,87351,31860,140
Other (6)1,2601,4992,5222,811
Consolidated$147,977$167,702$291,290$323,369

(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, which are included in property and equipment, net, net additions, and the depreciation and amortization expense on these assets, are allocated among the segments based on usage, with the majority allocated to the AWS segment. Usage of technology infrastructure assets by the North America and International segments, and the related allocation of total net additions, can fluctuate on a quarter-to-quarter basis, and is affected by seasonality, peak periods, new product or service offerings, and other factors.

Total segment assets reconciled to consolidated amounts are as follows (in millions):

December 31, 2024June 30, 2025
North America (1)$210,120$224,304
International (1)69,48778,096
AWS (2)155,953194,295
Corporate189,334185,475
Consolidated$624,894$682,170

(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.

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

December 31, 2024June 30, 2025
North America$103,041$113,249
International25,61829,679
AWS110,683140,636
Corporate13,32314,052
Consolidated$252,665$297,616

Total net additions to property and equipment include technology infrastructure assets and 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 June 30,Six Months Ended June 30,
2024202520242025
North America (1)$4,929$11,272$10,080$16,368
International (1)1,1282,5312,2374,037
AWS (2)12,75716,04320,68236,507
Corporate3809157521,298
Consolidated$19,194$30,761$33,751$58,210

(1)Includes property and equipment added under finance leases of $135 million and $21 million in Q2 2024 and Q2 2025, and $142 million and $75 million for the six months ended June 30, 2024 and 2025.

(2)Includes property and equipment added under finance leases of $46 million and $916 million in Q2 2024 and Q2 2025, and $81 million and $916 million for the six months ended June 30, 2024 and 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 June 30,Six Months Ended June 30,
2024202520242025
North America$3,517$3,742$6,890$7,272
International1,0491,1802,1032,316
AWS3,0784,8445,9179,234
Consolidated$7,644$9,766$14,910$18,822

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