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 September 30,				Nine Months Ended September 30,				Twelve Months Ended September 30,
	2024		2025		2024		2025		2024		2025
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	$	71,673	$	61,453	$	73,890	$	82,312	$	50,081	$	78,677
OPERATING ACTIVITIES:
Net income	15,328		21,187		39,244		56,478		49,868		76,482
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	13,442		16,796		37,164		46,285		50,984		61,916
Stock-based compensation	5,333		4,847		17,016		15,070		23,335		20,065

Non-operating expense (income), net	(141)		(10,112)		2,498		(14,187)		2,159		(14,673)
Deferred income taxes	(1,317)		10,130		(3,040)		10,648		(4,504)		9,040
Changes in operating assets and liabilities:
Inventories	(1,509)		(827)		(2,818)		(6,103)		(175)		(5,169)
Accounts receivable, net and other	(701)		(1,977)		774		(1,855)		(6,673)		(5,878)
Other assets	(4,537)		(4,039)		(10,293)		(10,412)		(13,095)		(14,602)
Accounts payable	(477)		2,151		(5,754)		166		5,134		8,892
Accrued expenses and other	129		(1,999)		(6,946)		(11,012)		(352)		(6,970)
Unearned revenue	421		(632)		2,396		(23)		6,025		1,588
Net cash provided by (used in) operating activities	25,971		35,525		70,241		85,055		112,706		130,691
INVESTING ACTIVITIES:
Purchases of property and equipment	(22,620)		(35,095)		(55,165)		(92,297)		(69,753)		(120,131)
Proceeds from property and equipment sales and incentives	1,342		867		3,559		2,446		4,794		4,228
Acquisitions, net of cash acquired, non-marketable investments, and other, net	(622)		(786)		(4,547)		(2,438)		(4,928)		(4,973)
Sales and maturities of marketable securities	8,069		16,367		12,726		35,545		14,294		39,222
Purchases of marketable securities	(3,068)		(7,426)		(13,472)		(38,556)		(13,907)		(51,089)
Net cash provided by (used in) investing activities	(16,899)		(26,073)		(56,899)		(95,300)		(69,500)		(132,743)
FINANCING ACTIVITIES:

Proceeds from short-term debt, and other	1,725		3,223		2,588		7,131		3,322		9,685
Repayments of short-term debt, and other	(1,820)		(1,826)		(2,453)		(5,300)		(8,791)		(7,907)
Proceeds from long-term debt	—		—		—		746		—		746
Repayments of long-term debt	(2,183)		(1,008)		(6,682)		(3,759)		(6,972)		(6,259)
Principal repayments of finance leases	(402)		(351)		(1,710)		(1,172)		(2,489)		(1,505)
Principal repayments of financing obligations	(78)		(82)		(247)		(276)		(320)		(698)
Net cash provided by (used in) financing activities	(2,758)		(44)		(8,504)		(2,630)		(15,250)		(5,938)
Foreign currency effect on cash, cash equivalents, and restricted cash	690		(397)		(51)		1,027		640		(223)
Net increase (decrease) in cash, cash equivalents, and restricted cash	7,004		9,011		4,787		(11,848)		28,596		(8,213)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	78,677	$	70,464	$	78,677	$	70,464	$	78,677	$	70,464

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 September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
Net product sales	$	67,601	$	74,058	$	190,085	$	206,274
Net service sales	91,276		106,111		260,082		297,264
Total net sales	158,877		180,169		450,167		503,538
Operating expenses:
Cost of sales	80,977		88,670		227,395		246,455
Fulfillment	24,660		27,679		70,543		78,248
Technology and infrastructure	22,245		28,962		64,973		79,122
Sales and marketing	10,609		11,686		30,783		32,865
General and administrative	2,713		2,875		8,496		8,468
Other operating expense (income), net	262		2,875		587		3,382
Total operating expenses	141,466		162,747		402,777		448,540
Operating income	17,411		17,422		47,390		54,998
Interest income	1,256		1,100		3,429		3,251
Interest expense	(603)		(538)		(1,836)		(1,595)
Other income (expense), net	(27)		10,186		(2,718)		14,052
Total non-operating income (expense)	626		10,748		(1,125)		15,708
Income before income taxes	18,037		28,170		46,265		70,706
Provision for income taxes	(2,706)		(6,910)		(6,940)		(14,141)
Equity-method investment activity, net of tax	(3)		(73)		(81)		(87)
Net income	$	15,328	$	21,187	$	39,244	$	56,478
Basic earnings per share	$	1.46	$	1.98	$	3.76	$	5.31
Diluted earnings per share	$	1.43	$	1.95	$	3.67	$	5.22
Weighted-average shares used in computation of earnings per share:
Basic	10,501		10,674		10,447		10,638
Diluted	10,735		10,845		10,705		10,815

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 September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
Net income	$	15,328	$	21,187	$	39,244	$	56,478
Other comprehensive income (loss):

Foreign currency translation adjustments, net of tax of $(45), $27, $43, and $(181)	1,911		(690)		178		4,159



Available-for-sale debt securities:
Change in net unrealized gains (losses), net of tax of $(55), $(3,797), $(282), and $(3,820)	167		12,397		944		12,474

Less: reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $512, $(1), and $1,326	—		(1,795)		4		(4,266)

Net change	167		10,602		948		8,208
Other, net of tax of $3, $0, $1, and $0	(3)		1		(4)		—
Total other comprehensive income (loss)	2,075		9,913		1,122		12,367
Comprehensive income	$	17,403	$	31,100	$	40,366	$	68,845

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		September 30, 2025
			(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	78,779	$	66,922
Marketable securities	22,423		27,275
Inventories	34,214		41,494
Accounts receivable, net and other	55,451		61,175
Total current assets	190,867		196,866
Property and equipment, net	252,665		324,435
Operating leases	76,141		83,456
Goodwill	23,074		23,260
Other assets	82,147		99,904
Total assets	$	624,894	$	727,921
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	94,363	$	106,032
Accrued expenses and other	66,965		68,051
Unearned revenue	18,103		21,113
Total current liabilities	179,431		195,196
Long-term lease liabilities	78,277		84,677
Long-term debt	52,623		50,742
Other long-term liabilities	28,593		27,675
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 11,202 shares issued; 10,593 and 10,687 shares outstanding)	111		112
Treasury stock, at cost	(7,837)		(7,837)
Additional paid-in capital	120,864		135,679
Accumulated other comprehensive income (loss)	(34)		12,333
Retained earnings	172,866		229,344
Total stockholders’ equity	285,970		369,631
Total liabilities and stockholders’ equity	$	624,894	$	727,921

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, valuation of derivative instruments, 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 Q3 2025, based on servers and networking equipment that were included in “Property and equipment, net” as of June 30, 2025 and those acquired during the three months ended September 30, 2025, was an increase in depreciation and amortization expense of $392 million and a reduction in net income of $298 million, or $0.03 per basic share and $0.03 per diluted share, which primarily impacted our AWS segment. The effect of this change in estimate for the nine months ended September 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 nine months ended September 30, 2025, was an increase in depreciation and amortization expense of $889 million and a reduction in net income of $677 million, or $0.06 per basic share and $0.06 per diluted share, which primarily impacted our AWS segment.

During Q3 2025, we recorded $2.5 billion of expense related to the settlement of a lawsuit with the Federal Trade Commission (FTC). This charge was recorded in “Other operating expense (income), net” and impacted our North America segment.

For the three and nine months ended September 30, 2025, we recorded approximately $1.8 billion and $2.0 billion of estimated severance costs primarily related to planned role eliminations. These charges increased our payroll and related expenses and were recorded primarily in “Technology and infrastructure,” “Sales and marketing,” and “General and administrative” and impacted all of our segments.

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Supplemental Cash Flow Information

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


	Three Months Ended September 30,				Nine Months Ended September 30,				Twelve Months Ended September 30,
	2024		2025		2024		2025		2024		2025
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt, net of capitalized interest	$	266	$	249	$	1,215	$	1,008	$	2,002	$	1,651
Cash paid for operating leases	2,940		4,155		9,116		11,475		11,882		14,700
Cash paid for interest on finance leases	71		76		217		219		291		289
Cash paid for interest on financing obligations	47		52		161		159		207		217
Cash paid for income taxes, net of refunds	2,004		1,136		8,162		6,774		12,359		10,920
Assets acquired under operating leases	3,571		5,057		11,235		13,999		14,212		18,188
Property and equipment acquired under finance leases, net of remeasurements and modifications	186		977		409		1,968		620		2,413
Increase (decrease) in property and equipment acquired but not yet paid	1,622		3,341		4,793		4,849		4,769		7,095

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 September 30,		Nine Months Ended September 30,
	2024	2025	2024	2025
Shares used in computation of basic earnings per share	10,501	10,674	10,447	10,638
Total dilutive effect of outstanding stock awards	234	171	258	177
Shares used in computation of diluted earnings per share	10,735	10,845	10,705	10,815

Other Income (Expense), Net

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
Marketable equity securities valuation gains (losses)	$	(117)	$	220	$	(1,800)	$	470
Equity warrant valuation gains (losses)	80		441		(421)		653
Reclassification adjustments for gains (losses) on available-for-sale debt securities	—		2,307		(5)		5,592
Upward adjustments relating to equity investments in private companies	2		7,226		13		7,312
Foreign currency gains (losses)	17		1		(195)		69
Other, net	(9)		(9)		(310)		(44)
Total other income (expense), net	$	(27)	$	10,186	$	(2,718)	$	14,052

The marketable equity securities valuation gain (loss) of $(117) million and $220 million in Q3 2024 and Q3 2025, and $(1.8) billion and $470 million for the nine months ended September 30, 2024 and 2025 is primarily from our equity investment in Rivian Automotive, Inc. (“Rivian”). The reclassification adjustments for the gains on available-for-sale debt securities of $2.3 billion in Q3 2025 and $5.6 billion for the nine months ended September 30, 2025 is primarily from the portions of our convertible notes investments in Anthropic, PBC (“Anthropic”) that were converted to nonvoting preferred stock during Q3 2025 and the nine months ended September 30, 2025. The upward adjustments relating to equity investments in private companies of $7.2 billion in Q3 2025 and $7.3 billion for the nine months ended September 30, 2025 reflect observable changes in prices, primarily from our nonvoting preferred stock in Anthropic.

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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 $2.9 billion as of December 31, 2024 and September 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 September 30, 2025, customer receivables, net, were $34.3 billion and $38.0 billion, vendor receivables, net, were $11.6 billion and $12.5 billion, and other receivables, net, were $3.4 billion and $3.8 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 $6.8 billion as of December 31, 2024 and September 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 $2.3 billion as of December 31, 2024 and September 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 September 30, 2025 were $19.6 billion and $21.5 billion. Total video and music expense was $5.0 billion and $5.5 billion in Q3 2024 and Q3 2025, and $14.2 billion and $15.7 billion for the nine months ended September 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 $15.0 billion was recognized as revenue during the nine months ended September 30, 2025. Included in “Other long-term liabilities” on our consolidated balance sheets was $6.5 billion and $4.1 billion of unearned revenue as of December 31, 2024 and September 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 $200 billion as of September 30, 2025. The weighted-average remaining life of our long-term contracts is 3.8 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 September 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, 2024		September 30, 2025
	Total Estimated Fair Value		Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value
Cash	$	17,055	$	15,977	$	—	$	—	$	15,977
Level 1 securities:
Money market funds	28,282		32,317		—		—		32,317
Equity securities (1)	3,318								3,220
Level 2 securities:
Foreign government and agency securities	177		74		—		—		74
U.S. government and agency securities	3,401		5,400		7		(23)		5,384
Corporate debt securities	50,912		38,810		49		(11)		38,848
Asset-backed securities	1,523		1,893		8		(10)		1,891
Other debt securities	67		28		—		—		28

	$	104,735	$	94,499	$	64	$	(44)	$	97,739
Less: Restricted cash, cash equivalents, and marketable securities (2)	(3,533)								(3,542)
Total cash, cash equivalents, and marketable securities	$	101,202							$	94,197

(1)The related unrealized gain (loss) recorded in “Other income (expense), net” was $(145) million and $153 million in Q3 2024 and Q3 2025, and $(1.8) billion and $341 million for the nine months ended September 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 September 30, 2025 (in millions):


	Amortized Cost		Estimated Fair Value
Due within one year	$	68,867	$	68,860
Due after one year through five years	8,051		8,098
Due after five years through ten years	600		599
Due after ten years	1,004		985
Total	$	78,522	$	78,542

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 representing Level 3 fair value measurements recognized in “Other income

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(expense), net” on our consolidated statements of operations. In Q2 2025, we invested $1.3 billion in a new convertible note from Anthropic, and will invest an additional $1.4 billion in Q4 2025. In Q3 2025, an additional portion of our notes was converted to nonvoting preferred stock, and as a result of the conversion a portion of the unrealized gain associated with the notes was reclassified and a gain of approximately $2.3 billion was recorded in “Other income (expense), net.” We also recorded an upward adjustment of $7.2 billion to our nonvoting preferred stock in “Other income (expense), net” to reflect observable changes in price. As of September 30, 2025, the amount recorded on our consolidated balance sheet for nonvoting preferred stock was approximately $14.8 billion. As of September 30, 2025, the estimated fair value of our convertible notes recorded on our consolidated balance sheet was approximately $23.7 billion, and the associated unrealized gain included in “Accumulated other comprehensive income (loss)” was $18.8 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 September 30, 2025, equity investments in private companies not accounted for under the equity-method, which primarily relate to nonvoting preferred stock in Anthropic, had a carrying value of $989 million and $16.0 billion, with adjustments for observable changes in prices or impairments representing Level 3 fair value measurements recognized in “Other income (expense), net” on our consolidated statements of operations.

As of December 31, 2024 and September 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 and $1.1 billion.

We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2024 and September 30, 2025, these warrants had a fair value of $2.7 billion and $2.9 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		September 30, 2025
Cash and cash equivalents	$	78,779	$	66,922
Restricted cash included in accounts receivable, net and other	247		302
Restricted cash included in other assets	3,286		3,240
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	$	82,312	$	70,464

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 $56.0 billion as of December 31, 2024 and September 30, 2025. Accumulated amortization associated with finance leases was $41.8 billion and $41.1 billion as of December 31, 2024 and September 30, 2025.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
Operating lease cost	$	3,057	$	3,593	$	8,807	$	10,259
Finance lease cost:
Amortization of lease assets	1,040		813		2,929		2,513
Interest on lease liabilities	70		81		215		224
Finance lease cost	1,110		894		3,144		2,737

Variable lease cost	605		637		1,832		1,992
Total lease cost	$	4,772	$	5,124	$	13,783	$	14,988

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


	December 31, 2024		September 30, 2025
Weighted-average remaining lease term – operating leases	10.6 years		10.0 years
Weighted-average remaining lease term – finance leases	11.9 years		12.1 years
Weighted-average discount rate – operating leases	3.5	%	3.6	%
Weighted-average discount rate – finance leases	3.0	%	3.2	%

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


	September 30, 2025
	Operating Leases		Finance Leases		Total
Gross lease liabilities	$	103,025	$	14,052	$	117,077
Less: imputed interest	(16,792)		(2,287)		(19,079)
Present value of lease liabilities	86,233		11,765		97,998
Less: current portion of lease liabilities	(11,873)		(1,448)		(13,321)
Total long-term lease liabilities	$	74,360	$	10,317	$	84,677

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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 September 30, 2025 (in millions):


	Three Months Ended December 31,		Year Ended December 31,
	2025		2026		2027		2028		2029		Thereafter		Total
Long-term debt principal and interest	$	1,914	$	4,518	$	10,548	$	3,688	$	4,388	$	57,813	$	82,869
Operating lease liabilities	4,347		13,414		12,434		11,312		10,207		51,311		103,025
Finance lease liabilities, including interest	458		1,665		1,524		1,521		1,187		7,697		14,052
Financing obligations, including interest (1)	91		532		540		548		557		6,556		8,824
Leases not yet commenced	996		4,856		5,868		5,089		4,995		53,217		75,021
Unconditional purchase obligations (2)	5,897		14,864		8,697		6,288		5,722		31,465		72,933
Other commitments (3)	1,259		2,292		1,330		1,079		1,005		12,313		19,278
Total commitments	$	14,962	$	42,141	$	40,941	$	29,525	$	28,061	$	220,372	$	376,002

(1)Includes non-cancellable financing obligations for fulfillment network and data center facilities. Excluding interest, current financing obligations of $312 million and $281 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 September 30, 2025. The weighted-average remaining term of the financing obligations was 16.1 years and 15.3 years and the weighted-average imputed interest rate was 3.1% as of December 31, 2024 and September 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, or termination penalties, 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. Certain of our energy agreements also provide the right to receive energy certificates.

(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 $5.9 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 Reports on Form 10-Q for the periods ended March 31, 2025 and June 30, 2025, as supplemented by the following:

Since March 2020, private litigants, state Attorneys General, and the Federal Trade Commission have filed cases in the U.S., Canada, and the United Kingdom alleging, among other things: price fixing arrangements between each of Amazon and its vendors and Amazon and its third-party sellers; abuse of dominance, monopolization, and attempted monopolization; and consumer protection and unjust enrichment claims, in violation of federal and state antitrust, state consumer protection, and

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Canadian and U.K. antitrust laws. The first of these complaints was Frame-Wilson v. Amazon.com, Inc., which was filed in the United States District Court for the Western District of Washington (“W.D. Wash.”). These complaints seek billions of dollars of alleged damages, treble damages, punitive damages, injunctive relief, structural relief, civil penalties, attorneys’ fees, and costs. Some of the private plaintiff cases include allegations of distinct purported classes, including consumers who purchased a product through Amazon’s stores and consumers who purchased a product offered by Amazon through another e-commerce retailer. Some of the cases include allegations that Amazon has a monopoly in markets for online superstores, marketplace services, or intermediation services and that we unlawfully engage in anticompetitive practices relating to our pricing policies, selection of the Featured Offers, use of seller data, advertising practices, the structure of Prime, and promotion of our own products on our website. In the U.S., most of Amazon’s motions to dismiss were granted in part, but in each case, at least some of the claims survived. In Canada, class certification was denied in a case before the Federal Court of Canada, finding that plaintiffs had not stated a viable claim, and plaintiffs’ appeal of that ruling is pending. Two Canadian class actions before other courts are pre-certification. In the United Kingdom, two class actions have been certified and a third is pre-certification. In the U.S., one class action has been certified, and three others are pre-certification. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters.

In December 2021, the Italian Competition Authority (the “ICA”) issued a decision against Amazon Services Europe S.à r.l., Amazon Europe Core S.à r.l., Amazon EU S.à r.l., Amazon Italia Services S.r.l., and Amazon Italia Logistica S.r.l. claiming that certain of our marketplace and logistics practices in Italy infringe EU competition rules. The decision imposes remedial actions and a fine of €1.13 billion, which we have paid and will seek to recover pending conclusion of all appeals. In September 2025, the Italian Administrative Tribunal (the “TAR”) affirmed the ICA’s decision but reduced the fine to €752 million. We believe the TAR’s ruling affirming the ICA’s decision to be without merit and will continue to defend ourselves vigorously in this matter.

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.”

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Note 5 — DEBT

As of September 30, 2025, we had $54.3 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		September 30, 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	2027 - 2057	3.15% - 4.25%	3.25% - 4.33%	13,000		12,000
2020 Notes issuance of $10.0 billion	2027 - 2060	1.20% - 2.70%	1.26% - 2.77%	9,000		7,750
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	2027 - 2062	3.30% - 4.10%	3.40% - 4.15%	11,250		9,750
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				—		847

Total face value of long-term debt				58,000		55,097
Unamortized discount and issuance costs, net				(360)		(358)
Less: current portion of long-term debt				(5,017)		(3,997)
Long-term debt				$	52,623	$	50,742

(1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 14.6, 15.7, 18.4, 13.4, 14.0, and 3.9 years as of September 30, 2025. The combined weighted-average remaining life of the Notes was 13.6 years as of September 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 $47.9 billion as of December 31, 2024 and September 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.

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 September 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 September 30, 2025.

As of September 30, 2025, we had a $5.0 billion unsecured 364-day revolving credit facility with a syndicate of lenders (the “2024 Short-Term Credit Agreement”). The interest rate applicable to outstanding balances under the 2024 Short-Term Credit Agreement is the Secured Overnight Financing Rate specified in the 2024 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 2024 Short-Term Credit Agreement as of December 31, 2024 and September 30, 2025. In October 2025, we replaced the 2024 Short-Term Credit Agreement with a new $5.0 billion unsecured 364-day revolving credit facility with a syndicate of lenders on substantially the same terms, which matures in October 2026 and may be extended for one additional period of 364 days subject to approval by the lenders.

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We also utilize other short-term credit facilities for working capital purposes. There were $151 million and $220 million of borrowings outstanding under these facilities as of December 31, 2024 and September 30, 2025, which were included in “Accrued expenses and other” on our consolidated balance sheets. In addition, we had $10.6 billion of unused letters of credit as of September 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 nine months ended September 30, 2024 or 2025. As of September 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 September 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 September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
Cost of sales	$	193	$	197	$	633	$	595
Fulfillment	696		685		2,276		2,062
Technology and infrastructure	2,961		2,697		9,403		8,412
Sales and marketing	1,012		832		3,168		2,692
General and administrative	471		436		1,536		1,309
Total stock-based compensation expense	$	5,333	$	4,847	$	17,016	$	15,070

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


	Number of Units	Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2024	283.1	$	145
Units granted	106.6	198
Units vested	(93.9)	137
Units forfeited	(27.7)	153
Outstanding as of September 30, 2025	268.1	168

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


	Three Months Ended December 31,	Year Ended December 31,
	2025	2026	2027	2028	2029	Thereafter	Total
Scheduled vesting — restricted stock units	44.5	112.8	70.9	29.7	8.3	1.9	268.1

As of September 30, 2025, there was $20.1 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.

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Changes in Stockholders’ Equity

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
Total beginning stockholders’ equity	$	236,447	$	333,775	$	201,875	$	285,970

Beginning common stock	110		112		109		111
Stock-based compensation and issuance of employee benefit plan stock	—		—		1		1
Ending common stock	110		112		110		112



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

Beginning additional paid-in capital	110,633		130,923		99,025		120,864
Stock-based compensation and issuance of employee benefit plan stock	5,301		4,756		16,909		14,815
Ending additional paid-in capital	115,934		135,679		115,934		135,679

Beginning accumulated other comprehensive income (loss)	(3,993)		2,420		(3,040)		(34)
Other comprehensive income (loss)	2,075		9,913		1,122		12,367
Ending accumulated other comprehensive income (loss)	(1,918)		12,333		(1,918)		12,333

Beginning retained earnings	137,534		208,157		113,618		172,866

Net income	15,328		21,187		39,244		56,478
Ending retained earnings	152,862		229,344		152,862		229,344

Total ending stockholders’ equity	$	259,151	$	369,631	$	259,151	$	369,631

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 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.

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. The 2025 Tax Act increased our income tax provision for the nine months ended September 30, 2025, primarily due to a decrease in the foreign income deduction, and will significantly decrease our cash taxes in 2025.

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 nine months ended September 30, 2024 was $6.9 billion, which included $2.4 billion of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation. Our income tax provision

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for the nine months ended September 30, 2025 was $14.1 billion, which included $354 million of net discrete tax expense primarily attributable to the net gains from our investments in Anthropic, partially offset by excess tax benefits from stock-based compensation.

Cash paid for income taxes, net of refunds was $2.0 billion and $1.1 billion in Q3 2024 and Q3 2025, and $8.2 billion and $6.8 billion for the nine months ended September 30, 2024 and 2025.

As of December 31, 2024 and September 30, 2025, income tax contingencies were approximately $6.5 billion and $5.9 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.

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.

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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 September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
North America
Net sales	$	95,537	$	106,267	$	271,911	$	299,222
Operating expenses	89,874		101,478		256,200		281,075
Operating income	$	5,663	$	4,789	$	15,711	$	18,147

International
Net sales	$	35,888	$	40,896	$	99,486	$	111,170
Operating expenses	34,587		39,697		97,009		107,460
Operating income	$	1,301	$	1,199	$	2,477	$	3,710

AWS
Net sales	$	27,452	$	33,006	$	78,770	$	93,146
Operating expenses	17,005		21,572		49,568		60,005
Operating income	$	10,447	$	11,434	$	29,202	$	33,141

Consolidated
Net sales	$	158,877	$	180,169	$	450,167	$	503,538
Operating expenses	141,466		162,747		402,777		448,540
Operating income	17,411		17,422		47,390		54,998
Total non-operating income (expense)	626		10,748		(1,125)		15,708
Provision for income taxes	(2,706)		(6,910)		(6,940)		(14,141)
Equity-method investment activity, net of tax	(3)		(73)		(81)		(87)
Net income	$	15,328	$	21,187	$	39,244	$	56,478

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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 September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
Net Sales:
Online stores (1)	$	61,411	$	67,407	$	171,473	$	186,299
Physical stores (2)	5,228		5,578		15,636		16,706
Third-party seller services (3)	37,864		42,486		108,661		119,346
Advertising services (4)	14,331		17,703		38,926		47,318
Subscription services (5)	11,278		12,574		32,866		36,497
AWS	27,452		33,006		78,770		93,146
Other (6)	1,313		1,415		3,835		4,226
Consolidated	$	158,877	$	180,169	$	450,167	$	503,538

(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, 2024		September 30, 2025
North America (1)	$	210,120	$	227,984
International (1)	69,487		79,221
AWS (2)	155,953		223,729
Corporate	189,334		196,987
Consolidated	$	624,894	$	727,921

(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, 2024		September 30, 2025
North America	$	103,041	$	115,661
International	25,618		29,488
AWS	110,683		165,106
Corporate	13,323		14,180
Consolidated	$	252,665	$	324,435

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 September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
North America (1)	$	6,522	$	8,638	$	16,602	$	25,006
International (1)	2,185		1,439		4,422		5,476
AWS (2)	14,341		28,301		35,023		64,808
Corporate	349		507		1,101		1,805
Consolidated	$	23,397	$	38,885	$	57,148	$	97,095

(1)Includes property and equipment added under finance leases of $182 million and $432 million in Q3 2024 and Q3 2025, and $324 million and $507 million for the nine months ended September 30, 2024 and 2025.

(2)Includes property and equipment added under finance leases of $4 million and $545 million in Q3 2024 and Q3 2025, and $85 million and $1.5 billion for the nine months ended September 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 September 30,				Nine Months Ended September 30,
	2024		2025		2024		2025
North America	$	3,611	$	4,001	$	10,501	$	11,273
International	1,164		1,276		3,267		3,592
AWS	3,541		5,648		9,458		14,882
Consolidated	$	8,316	$	10,925	$	23,226	$	29,747

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