Alphabet Inc 10-Q for FY2025 Q2

Alphabet Inc. (GOOGL)

10-Q 2025-07-24 For: 2025-06-30

Added on April 01, 2026

About this 10-Q

Alphabet Inc filed this 10-Q on July 24, 2025, covering the quarter ended June 30, 2025 (FY2025 Q2).

Headline figures

Quarter ended June 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $96.43B; up 13.8% from $84.74B a year earlier
Net income: $28.2B; up 19.4% from net income of $23.62B a year earlier
Diluted EPS: $2.31; up 22.2% from $1.89 a year earlier

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Delaware			61-1767919
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.001 par value	GOOGL	Nasdaq Stock Market LLC
		(Nasdaq Global Select Market)
Class C Capital Stock, $0.001 par value	GOOG	Nasdaq Stock Market LLC
		(Nasdaq Global Select Market)
2.500% Senior Notes due 2029	—	Nasdaq Stock Market LLC
3.000% Senior Notes due 2033	—	Nasdaq Stock Market LLC
3.375% Senior Notes due 2037	—	Nasdaq Stock Market LLC
3.875% Senior Notes due 2045	—	Nasdaq Stock Market LLC
4.000% Senior Notes due 2054	—	Nasdaq Stock Market LLC


		Page No.
Note About Forward-Looking Statements		3

PART I. FINANCIAL INFORMATION
Item 1	Financial Statements	5
	Consolidated Balance Sheets - December 31, 2024 and June 30, 2025	5
	Consolidated Statements of Income - Three and Six Months Ended June 30, 2024 and 2025	6
	Consolidated Statements of Comprehensive Income - Three and Six Months Ended June 30, 2024 and 2025	7
	Consolidated Statements of Stockholders' Equity - Three and Six Months Ended June 30, 2024 and 2025	8
	Consolidated Statements of Cash Flows - Six Months Ended June 30, 2024 and 2025	10
	Notes to Consolidated Financial Statements	11
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4	Controls and Procedures	51

PART II. OTHER INFORMATION
Item 1	Legal Proceedings	52
Item 1A	Risk Factors	52
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 5	Other Information	52
Item 6	Exhibits	54
Signatures		56


	As of December 31, 2024		As of June 30, 2025
			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	23,466	$	21,036
Marketable securities	72,191		74,112
Total cash, cash equivalents, and marketable securities	95,657		95,148
Accounts receivable, net	52,340		55,048
Other current assets	15,714		16,020
Total current assets	163,711		166,216
Non-marketable securities	37,982		52,574
Deferred income taxes	17,180		19,289
Property and equipment, net	171,036		203,231
Operating lease assets	13,588		14,255
Goodwill	31,885		32,335
Other non-current assets	14,874		14,153
Total assets	$	450,256	$	502,053
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	7,987	$	8,347

Accrued compensation and benefits	15,069		12,168
Accrued expenses and other current liabilities	51,228		52,039
Accrued revenue share	9,802		9,787
Deferred revenue	5,036		4,969
Total current liabilities	89,122		87,310
Long-term debt	10,883		23,607
Income taxes payable, non-current	8,782		10,027
Operating lease liabilities	11,691		11,952
Other long-term liabilities	4,694		6,241
Total liabilities	125,172		139,137
Commitments and Contingencies (Note 10)
Stockholders’ equity:
Preferred stock, $0.001 par value per share, 100 shares authorized; no shares issued and outstanding	0		0
Class A, Class B, and Class C stock and additional paid-in capital, $0.001 par value per share: 300,000 shares authorized (Class A 180,000, Class B 60,000, Class C 60,000); 12,211 (Class A 5,835, Class B 861, Class C 5,515) and 12,104 (Class A 5,816, Class B 849, Class C 5,439) shares issued and outstanding	84,800		89,283
Accumulated other comprehensive income (loss)	(4,800)		(2,127)
Retained earnings	245,084		275,760
Total stockholders’ equity	325,084		362,916
Total liabilities and stockholders’ equity	$	450,256	$	502,053


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2025		2024		2025
Revenues	$	84,742	$	96,428	$	165,281	$	186,662
Costs and expenses:
Cost of revenues	35,507		39,039		69,219		75,400
Research and development	11,860		13,808		23,763		27,364
Sales and marketing	6,792		7,101		13,218		13,273
General and administrative	3,158		5,209		6,184		8,748
Total costs and expenses	57,317		65,157		112,384		124,785
Income from operations	27,425		31,271		52,897		61,877
Other income (expense), net	126		2,662		2,969		13,845
Income before income taxes	27,551		33,933		55,866		75,722
Provision for income taxes	3,932		5,737		8,585		12,986
Net income	$	23,619	$	28,196	$	47,281	$	62,736




Basic net income per share (Note 12)	$	1.91	$	2.33	$	3.82	$	5.16









Diluted net income per share (Note 12)	$	1.89	$	2.31	$	3.78	$	5.12


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended June 30, 2024
	Class A, Class B, Class C Stock and Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount
Balance as of March 31, 2024	12,381	$	77,913	$	(4,839)	$	219,770	$	292,844
Stock issued	33	0		0		0		0
Stock-based compensation	0	5,908		0		0		5,908
Tax withholding related to vesting of restricted stock units and other	0	(3,304)		0		0		(3,304)
Repurchases of stock	(92)	(789)		0		(14,809)		(15,598)
Dividends and dividend equivalents declared ($0.20 per share)	0	4		0		(2,547)		(2,543)
Net income	0	0		0		23,619		23,619
Other comprehensive income (loss)	0	0		(173)		0		(173)
Balance as of June 30, 2024	12,322	$	79,732	$	(5,012)	$	226,033	$	300,753


	Six Months Ended June 30, 2024
	Class A, Class B, Class C Stock and Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2023	12,460	$	76,534	$	(4,402)	$	211,247	$	283,379
Stock issued	65	0		0		0		0
Stock-based compensation	0	11,201		0		0		11,201
Tax withholding related to vesting of restricted stock units and other	0	(6,300)		0		0		(6,300)
Repurchases of stock	(203)	(1,707)		0		(29,948)		(31,655)
Dividends and dividend equivalents declared ($0.20 per share)	0	4		0		(2,547)		(2,543)
Net income	0	0		0		47,281		47,281
Other comprehensive income (loss)	0	0		(610)		0		(610)
Balance as of June 30, 2024	12,322	$	79,732	$	(5,012)	$	226,033	$	300,753


	Three Months Ended June 30, 2025
	Class A, Class B, Class C Stock and Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount
Balance as of March 31, 2025	12,155	$	86,725	$	(4,086)	$	262,628	$	345,267
Stock issued	30	0		0		0		0
Stock-based compensation	0	6,045		0		0		6,045
Tax withholding related to vesting of restricted stock units and other	0	(2,709)		0		0		(2,709)
Repurchases of stock	(81)	(811)		0		(12,452)		(13,263)
Dividends and dividend equivalents declared ($0.21 per share)	0	33		0		(2,612)		(2,579)
Sale of interest in consolidated entities	0	0		0		0		0
Net income	0	0		0		28,196		28,196
Other comprehensive income (loss)	0	0		1,959		0		1,959
Balance as of June 30, 2025	12,104	$	89,283	$	(2,127)	$	275,760	$	362,916


	Six Months Ended June 30, 2025
	Class A, Class B, Class C Stock and Additional Paid-In Capital			Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2024	12,211	$	84,800	$	(4,800)	$	245,084	$	325,084
Stock issued	57	0		0		0		0
Stock-based compensation	0	11,598		0		0		11,598
Tax withholding related to vesting of restricted stock units and other	0	(5,949)		0		0		(5,949)
Repurchases of stock	(164)	(1,626)		0		(26,938)		(28,564)
Dividends and dividend equivalents declared ($0.41 per share)	0	60		0		(5,122)		(5,062)
Sale of interest in consolidated entities	0	400		0		0		400
Net income	0	0		0		62,736		62,736
Other comprehensive income (loss)	0	0		2,673		0		2,673
Balance as of June 30, 2025	12,104	$	89,283	$	(2,127)	$	275,760	$	362,916


		As of December 31, 2024
	Fair Value Hierarchy	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Fair value changes recorded in other comprehensive income
Time deposits	Level 2	$	2,217	$	0	$	0	$	2,217	$	2,081	$	136
Government bonds	Level 2	27,551		83		(214)		27,420		50		27,370
Corporate debt securities	Level 2	18,300		79		(222)		18,157		0		18,157
Mortgage-backed and asset-backed securities	Level 2	14,437		63		(385)		14,115		0		14,115
Total investments with fair value change reflected in other comprehensive income(1)		62,505		225		(821)		61,909		2,131		59,778
Fair value adjustments recorded in net income
Money market funds	Level 1							8,154		8,154		0
Current marketable equity securities(2)	Level 1							4,708		0		4,708
Mutual funds	Level 2							105		0		105
Government bonds	Level 2							2,035		696		1,339
Corporate debt securities	Level 2							3,037		78		2,959
Mortgage-backed and asset-backed securities	Level 2							3,302		0		3,302
Total investments with fair value change recorded in net income								21,341		8,928		12,413
Cash								0		12,407		0
Total		$	62,505	$	225	$	(821)	$	83,250	$	23,466	$	72,191


		As of June 30, 2025
	Fair Value Hierarchy	Adjusted Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
Fair value changes recorded in other comprehensive income
Time deposits	Level 2	$	3,735	$	0	$	0	$	3,735	$	3,698	$	37
Government bonds	Level 2	26,738		380		(48)		27,070		2		27,068
Corporate debt securities	Level 2	18,382		205		(84)		18,503		1		18,502
Mortgage-backed and asset-backed securities	Level 2	14,198		117		(215)		14,100		0		14,100
Total investments with fair value change reflected in other comprehensive income(1)		63,053		702		(347)		63,408		3,701		59,707
Fair value adjustments recorded in net income
Money market funds	Level 1							5,473		5,473		0
Current marketable equity securities	Level 1							5,910		0		5,910
Mutual funds	Level 2							55		0		55
Government bonds	Level 2							2,035		162		1,873
Corporate debt securities	Level 2							3,055		77		2,978
Mortgage-backed and asset-backed securities	Level 2							3,589		0		3,589
Total investments with fair value change recorded in net income								20,117		5,712		14,405
Cash								0		11,623		0
Total		$	63,053	$	702	$	(347)	$	83,525	$	21,036	$	74,112


	As of June 30, 2025
Due in 1 year or less	$	5,930
Due in 1 year through 5 years	37,136
Due in 5 years through 10 years	11,846
Due after 10 years	13,235
Total	$	68,147


	As of December 31, 2024
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Government bonds	$	11,119	$	(126)	$	2,576	$	(88)	$	13,695	$	(214)
Corporate debt securities	4,228		(17)		6,838		(168)		11,066		(185)
Mortgage-backed and asset-backed securities	5,222		(106)		3,813		(279)		9,035		(385)
Total	$	20,569	$	(249)	$	13,227	$	(535)	$	33,796	$	(784)


Table of Contents			Alphabet Inc.


Table of Contents			Alphabet Inc.


Table of Contents			Alphabet Inc.


Table of Contents			Alphabet Inc.


	As of December 31, 2024						As of June 30, 2025
	Marketable Equity Securities		Non-Marketable Equity Securities		Total		Marketable Equity Securities		Non-Marketable Equity Securities		Total
Total initial cost	$	4,767	$	21,240	$	26,007	$	4,423	$	26,152	$	30,575
Cumulative net gain (loss)(1)	312		14,291		14,603		1,552		23,682		25,234
Carrying value	$	5,079	$	35,531	$	40,610	$	5,975	$	49,834	$	55,809


	As of December 31, 2024		As of June 30, 2025
Derivatives designated as hedging instruments:
Foreign exchange contracts
Cash flow hedges	$	20,315	$	22,884
Fair value hedges	$	1,562	$	0
Net investment hedges	$	6,986	$	7,668
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	44,227	$	38,023
Other contracts	$	15,082	$	17,406


	As of December 31, 2024				As of June 30, 2025
	Assets(1)		Liabilities(2)		Assets(1)		Liabilities(2)
Derivatives designated as hedging instruments:
Foreign exchange contracts	$	1,054	$	0	$	36	$	1,541

Derivatives not designated as hedging instruments:
Foreign exchange contracts	200		593		815		188
Other contracts	474		19		252		29
Total derivatives not designated as hedging instruments	674		612		1,067		217
Total	$	1,728	$	612	$	1,103	$	1,758


	Three Months Ended June 30,
	2024				2025
	Revenues		Other income (expense), net		Revenues		Other income (expense), net
Total amounts included in the Consolidated Statements of Income	$	84,742	$	126	$	96,428	$	2,662

Effect of cash flow hedges:
Foreign exchange contracts
Amount reclassified from AOCI to income	$	106	$	0	$	(138)	$	0
Amount excluded from the assessment of effectiveness (amortized)	(4)		0		26		0
Effect of fair value hedges:
Foreign exchange contracts
Hedged items	0		(9)		0		0
Derivatives designated as hedging instruments	0		9		0		0
Amount excluded from the assessment of effectiveness	0		3		0		0
Effect of net investment hedges:
Foreign exchange contracts
Amount excluded from the assessment of effectiveness	0		31		0		29
Effect of non designated hedges:
Foreign exchange contracts	0		(22)		0		180
Other contracts	0		26		0		(24)
Total gains (losses)	$	102	$	38	$	(112)	$	185


	Six Months Ended June 30,
	2024				2025
	Revenues		Other income (expense), net		Revenues		Other income (expense), net
Total amounts included in the Consolidated Statements of Income	$	165,281	$	2,969	$	186,662	$	13,845

Effect of cash flow hedges:
Foreign exchange contracts
Amount of gains (losses) reclassified from AOCI to income	$	180	$	0	$	104	$	0
Amount excluded from the assessment of effectiveness (amortized)	(6)		0		44		0
Effect of fair value hedges:
Foreign exchange contracts
Hedged items	0		(25)		0		(9)
Derivatives designated as hedging instruments	0		24		0		9
Amount excluded from the assessment of effectiveness	0		6		0		1
Effect of net investment hedges:
Foreign exchange contracts
Amount excluded from the assessment of effectiveness	0		67		0		60
Effect of non designated hedges:
Foreign exchange contracts	0		(1)		0		245
Other contracts	0		102		0		(95)
Total gains (losses)	$	174	$	173	$	148	$	211


	As of December 31, 2024
							Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset
	Gross Amounts Recognized		Gross Amounts Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments(1)		Cash and Non-Cash Collateral Received or Pledged		Net Amounts
Derivatives assets	$	1,776	$	(48)	$	1,728	$	(516)	$	(721)	$	491
Derivatives liabilities	$	660	$	(48)	$	612	$	(516)	$	(9)	$	87


	As of December 31, 2024		As of June 30, 2025
Weighted average remaining lease term
Operating leases	7.8 years		7.8 years
Finance leases	10.4 years		9.6 years
Weighted average discount rate
Operating leases	3.4	%	3.5	%
Finance leases	2.8	%	2.9	%


	As of December 31, 2024		As of June 30, 2025
Operating leases:
Operating lease assets	$	13,588	$	14,255
Accrued expenses and other liabilities	$	2,887	$	3,007
Operating lease liabilities	11,691		11,952
Total operating lease liabilities	$	14,578	$	14,959
Finance Leases:
Property and equipment, at cost	$	4,622	$	5,410
Accumulated depreciation	(2,037)		(2,209)
Property and equipment, net	$	2,585	$	3,201
Accrued expenses and other liabilities	$	235	$	100
Other long-term liabilities	1,442		2,002
Total finance lease liabilities	$	1,677	$	2,102


	Operating Leases		Finance Leases
Remainder of 2025	$	2,095	$	162
2026	3,078		299
2027	2,549		301
2028	2,042		290
2029	1,630		268
Thereafter	6,035		1,310
Total future lease payments	17,429		2,630
Less imputed interest	(2,470)		(528)
Total lease liability balance	$	14,959	$	2,102


	Maturity	Coupon Rate	Effective Interest Rate	As of December 31, 2024		As of June 30, 2025
Debt
2016 U.S. dollar notes	2026	2.00%	2.23%	$	2,000	$	2,000
2020 U.S. dollar notes	2025 - 2060	0.45% - 2.25%	0.57% - 2.33%	10,000		10,000
2025 U.S. dollar notes	2030 - 2065	4.00% - 5.30%	4.21% - 5.44%	0		5,000
2025 Euro notes(1)	2029 - 2054	2.50% - 4.00%	2.69% - 4.12%	0		7,903
Total face value of long-term debt				12,000		24,903
Unamortized discount and debt issuance costs(1)				(118)		(296)
Less: Current portion of long-term notes(2)				(999)		(1,000)
Total long-term debt				$	10,883	$	23,607


	As of December 31, 2024		As of June 30, 2025
Technical infrastructure(1)	$	139,596	$	167,467
Office space	43,714		45,493
Corporate and other assets	16,519		17,920
Property and equipment, in service	199,829		230,880
Less: accumulated depreciation	(79,390)		(89,349)
Add: assets not yet in service	50,597		61,700
Property and equipment, net	$	171,036	$	203,231


	As of December 31, 2024		As of June 30, 2025
Accrued purchases of property and equipment(1)	$	7,104	$	6,818
European Commission fines(2)	6,322		7,099
Accrued customer liabilities	4,304		4,247
Payables to brokers for unsettled investment trades	3,866		3,112
Income taxes payable, net	2,905		786
Other accrued expenses and current liabilities(3)	26,727		29,977
Accrued expenses and other current liabilities	$	51,228	$	52,039


	Foreign Currency Translation Adjustments		Unrealized Gains (Losses) on Available-for-Sale Investments		Unrealized Gains (Losses) on Cash Flow Hedges		Total
Balance as of December 31, 2023	$	(3,407)	$	(965)	$	(30)	$	(4,402)
Other comprehensive income (loss) before reclassifications	(950)		(453)		367		(1,036)
Amounts excluded from the assessment of hedge effectiveness recorded in AOCI	0		0		51		51
Amounts reclassified from AOCI	0		541		(166)		375
Other comprehensive income (loss)	(950)		88		252		(610)
Balance as of June 30, 2024	$	(4,357)	$	(877)	$	222	$	(5,012)


	Google Services		Google Cloud		Other Bets		Total
Balance as of December 31, 2024	$	23,521	$	7,490	$	874	$	31,885
Additions	289		9		0		298
Foreign currency translation and other adjustments	160		15		(23)		152
Balance as of June 30, 2025	$	23,970	$	7,514	$	851	$	32,335


	Three Months Ended			Six Months Ended
	June 30, 2025			June 30, 2025
	Shares	Amount		Shares	Amount
Class A share repurchases	16	$	2,537	31	$	5,303
Class C share repurchases	65	10,726		133	23,261
Total share repurchases(1)	81	$	13,263	164	$	28,564


	Number of Shares	Weighted- Average Grant-Date Fair Value
Unvested as of December 31, 2024	299	$	122.77
Granted	146	$	175.03
Vested	(89)	$	129.05
Forfeited/canceled	(17)	$	134.20
Unvested as of June 30, 2025	339	$	142.94


	As of December 31, 2024		As of June 30, 2025
Long-lived assets:
United States	$	138,993	$	160,877
International	45,631		56,609
Total long-lived assets	$	184,624	$	217,486


					Three Months Ended June 30, 2025
									% Change from Prior Period
	Three Months Ended June 30,				Less FX Effect		Constant Currency Revenues		As Reported		Less Hedging Effect		Less FX Effect		Constant Currency Revenues
	2024		2025
United States	$	41,196	$	46,063	$	0	$	46,063	12	%			0	%	12	%
EMEA	24,683		28,262		780		27,482		14	%			3	%	11	%
APAC	13,823		16,480		115		16,365		19	%			1	%	18	%
Other Americas	4,938		5,735		(352)		6,087		16	%			(7)	%	23	%
Revenues, excluding hedging effect	84,640		96,540		543		95,997		14	%			1	%	13	%
Hedging gains (losses)	102		(112)
Total revenues(1)	$	84,742	$	96,428			$	95,997	14	%	0	%	1	%	13	%


					Six Months Ended June 30, 2025
									% Change from Prior Period
	Six months ended June 30,				Less FX Effect		Constant Currency Revenues		As Reported		Less Hedging Effect		Less FX Effect		Constant Currency Revenues
	2024		2025
United States	$	79,933	$	90,027	$	0	$	90,027	13	%			0	%	13	%
EMEA	48,471		54,185		56		54,129		12	%			0	%	12	%
APAC	27,112		31,334		(266)		31,600		16	%			(1)	%	17	%
Other Americas	9,591		10,968		(852)		11,820		14	%			(9)	%	23	%
Revenues, excluding hedging effect	165,107		186,514		(1,062)		187,576		13	%			(1)	%	14	%
Hedging gains (losses)	174		148
Total revenues(1)	$	165,281	$	186,662			$	187,576	13	%	0	%	(1)	%	14	%


Period	Total Number of Class A Shares Purchased (in thousands) (1)	Total Number of Class C Shares Purchased (in thousands) (1)	Average Price Paid per Class A Share (2)		Average Price Paid per Class C Share (2)		Total Number of Shares Purchased as Part of Publicly Announced Programs (in thousands) (1)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions)
April 1 - 30	8,471	24,689	$	155.60	$	157.25	33,160	$	94,341
May 1 - 31	4,529	22,447	$	164.95	$	166.17	26,976	$	89,893
June 1 - 30	2,710	17,853	$	174.18	$	174.39	20,563	$	86,325
Total	15,710	64,989					80,699