What changed in this filing

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Item 1. Financial Statements

2025-08-01 compared with 2025-05-02 · 116 added, 87 removed, 502 unchanged (29% of the section changed)

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Three Months Ended

March 31, Twelve Months Ended

June 30, Six Months Ended

June 30, Twelve Months Ended

2024 2025 2024 2025 2024 2025

38 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

Net product sales $ 61,569 $ 68,246 $ 122,484 $ 132,216

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Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

Net income $ 13,485 $ 18,164 $ 23,916 $ 35,291

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Change in net unrealized gains (losses), net of tax of $( 69 ), $( 12 ), $( 227 ), and $( 23 )

241 40 777 77

reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $( 1 ), $ 5 , $( 1 ), and $ 814

3 ( 17 ) 4 ( 2,471 )

Net change 244 23 781 ( 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

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(in millions, except per share data)

December 31, 2024 March 31, 2025

December 31, 2024 June 30, 2025

Current assets:

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The shorter useful lives are due to the increased pace of technology development, particularly in the area of artificial intelligence and machine learning.

The effect of this change in estimate for Q1 2025, based on servers and networking equipment that were included in “Property and equipment, net” as of December 31, 2024 and those acquired during the three months ended March 31, 2025, was an increase in depreciation and amortization expense of $ 217 million and a reduction in net income of $ 162 million, or $ 0.02 per basic share and $ 0.02 per diluted share, which primarily impacted our AWS segment.

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.

Supplemental Cash Flow Information

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Three Months Ended

March 31, Twelve Months Ended

June 30, Six Months Ended

June 30, Twelve Months Ended

2024 2025 2024 2025 2024 2025

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Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

Shares used in computation of basic earnings per share 10,447 10,637 10,420 10,620

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Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

Marketable equity securities valuation gains (losses) $ 443 $ 388 $ ( 1,683 ) $ 250

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Total other income (expense), net $ ( 18 ) $ 1,117 $ ( 2,691 ) $ 3,866

The marketable equity securities valuation gain (loss) of $( 2.1 ) billion and $( 138 ) million in Q1 2024 and Q1 2025 is primarily from our equity investment in Rivian Automotive, Inc.

The reclassification adjustment for the gain on available-for-sale debt securities of $ 3.3 billion in Q1 2025 is primarily from the portion of our convertible notes investments in Anthropic, PBC that were converted to nonvoting preferred stock during the three months ended March 31, 2025.

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.

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.

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 March 31, 2025.

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 March 31, 2025, customer receivables, net, were $ 34.3 billion and $ 35.5 billion, vendor receivables, net, were $ 11.6 billion and $ 9.1 billion, and other receivables, net, were $ 3.4 billion.

Prepaid expenses and other current assets, which include amounts related to non-income taxes and satellite network launch services deposits, were $ 6.3 billion and $ 6.2 billion as of December 31, 2024 and March 31, 2025.

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 as of December 31, 2024 and March 31, 2025.

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 March 31, 2025 were $ 19.6 billion and $ 20.3 billion.

Total video and music expense was $ 4.6 billion and $ 5.1 billion in Q1 2024 and Q1 2025 .

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

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Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships.

Our total unearned revenue as of December 31, 2024 was $ 24.6 billion, of which $ 7.0 billion was recognized as revenue during the three months ended March 31, 2025.

Included in “Other long-term liabilities” on our consolidated balance sheets was $ 6.5 billion and $ 4.9 billion of unearned revenue as of December 31, 2024 and March 31, 2025.

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 $ 189 billion as of March 31, 2025.

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.

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Cash, Cash Equivalents, Restricted Cash, and Marketable Securities

As of December 31, 2024 and March 31, 2025, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S.

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.

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

December 31, 2024 March 31, 2025

December 31, 2024 June 30, 2025

Fair Value Cost or

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___________________

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

(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.

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See “Note 4 — Commitments and Contingencies.”

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

The following table summarizes the remaining contractual maturities of our cash equivalents and marketable debt securities as of June 30, 2025 (in millions):

Cost Estimated

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Non-Marketable Investments

In Q3 2023, we invested in a $ 1.25 billion note from Anthropic, PBC, which is convertible to equity.

In Q1 2024, we invested $ 2.75 billion in a second convertible note.

In Q4 2024, we entered into an agreement and invested $ 1.3 billion in a third convertible note, and will invest an additional $ 2.7 billion by Q4 2025.

The notes are classified as available-for-sale and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive income (loss).” The notes are classified as Level 3 assets, and as of December 31, 2024 had an estimated fair value of approximately $ 13.8 billion.

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.

In Q1 2025, a portion of the notes were converted to nonvoting preferred stock.

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 operations.

As of March 31, 2025, the estimated fair value of our convertible notes and amounts recorded for nonvoting preferred stock investments was approximately $ 13.8 billion.

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

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

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

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 March 31, 2025, these warrants had a fair value of $ 2.7 billion and $ 1.9 billion, with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations.

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.

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

December 31, 2024 March 31, 2025

December 31, 2024 June 30, 2025

Cash and cash equivalents $ 78,779 $ 57,741

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We have entered into non-cancellable operating and finance leases for fulfillment network, data center, office, and physical store facilities as well as server and networking equipment, aircraft, and vehicles.

Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “ Property and equipment, net ” and were $ 56.5 billion and $ 54.7 billion as of December 31, 2024 and March 31, 2025.

Accumulated amortization associated with finance leases was $ 41.8 billion and $ 40.6 billion as of December 31, 2024 and March 31, 2025.

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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2024 2025 2024 2025

Operating lease cost $ 2,921 $ 3,426 $ 5,750 $ 6,666

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

December 31, 2024 March 31, 2025

December 31, 2024 June 30, 2025

Weighted-average remaining lease term – operating leases 10.6 years 10.2 years

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Total long-term lease liabilities $ 69,050 $ 9,227 $ 78,277

March 31, 2025

June 30, 2025

Operating Leases Finance Leases Total

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Note 4 — COMMITMENTS AND CONTINGENCIES

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

Nine Months Ended December 31, Year Ended December 31,

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,

2025 2026 2027 2028 2029 Thereafter Total

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(1) Includes non-cancellable financing obligations for fulfillment network and data center facilities.

Excluding interest, current financing obligations of $ 312 million and $ 275 million are recorded within “Accrued expenses and other” and $ 7.1 billion are recorded within “Other long-term liabilities” as of December 31, 2024 and March 31, 2025.

The weighted-average remaining term of the financing obligations was 16.1 years and 15.8 years and the weighted-average imputed interest rate was 3.1 % as of December 31, 2024 and March 31, 2025.

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.

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Legal Proceedings

In July 2021, the Luxembourg National Commission for Data Protection (the “CNPD”) issued a decision against Amazon Europe Core S.à r.l.

claiming that Amazon’s processing of personal data did not comply with the EU General Data Protection Regulation.

The decision imposes a fine of € 746 million and corresponding practice revisions.

In March 2025, the Luxembourg Administrative Court dismissed our appeal of the CNPD’s decision.

In April 2025, we appealed the court’s decision to the Luxembourg Administrative Court of Appeal.

We believe the CNPD’s decision to be without merit and will continue to defend ourselves vigorously in this matter.

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.

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.

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Note 5 — DEBT

As of March 31, 2025, we had $ 58.0 billion of unsecured senior notes outstanding (the “Notes”).

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 Rates Effective Interest Rates December 31, 2024 March 31, 2025

Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2024 June 30, 2025

2014 Notes issuance of $ 6.0 billion

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3.40 % - 4.15 %

11,250 11,250

December 2022 Notes issuance of $ 8.3 billion

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

The combined weighted-average remaining life of the Notes was 13.2 years as of March 31, 2025.

(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.

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We are not subject to any financial covenants under the Notes.

The estimated fair value of the Notes was approximately $ 50.2 billion and $ 50.8 billion as of December 31, 2024 and March 31, 2025, which is based on quoted prices for our debt as of those dates.

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”).

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As of December 31, 2023, the entire amount of the Term Loan had been repaid.

As of March 31, 2025, we had U.S.

Dollar and Euro commercial paper programs (the “Commercial Paper Programs”) under which we may from time to time issue unsecured commercial paper up to a total of $ 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.

April 2025, we increased the size of the Commercial Paper Programs from $ 20.0 billion to $ 30.0 billion.

There were no borrowings outstanding under the Commercial Paper Programs as of December 31, 2024 and March 31, 2025.

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.

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The interest rate applicable to outstanding balances under the Credit Agreement is the applicable benchmark rate specified in the Credit Agreement plus 0.45 %, with a commitment fee of 0.03 % on the undrawn portion of the credit facility.

There were no borrowings outstanding under the Credit Agreement as of December 31, 2024 and March 31, 2025.

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 March 31, 2025.

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 $ 76 million of borrowings outstanding under these facilities as of December 31, 2024 and March 31, 2025, which were included in “Accrued expenses and other” on our consolidated balance sheets.

In addition, we had $ 8.6 billion of unused letters of credit as of March 31, 2025.

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

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In March 2022, the Board of Directors authorized a program to repurchase up to $ 10.0 billion of our common stock, with no fixed expiration.

There were no repurchases of our common stock during the three months ended March 31, 2024 or 2025.

As of March 31, 2025, we have $ 6.1 billion remaining under the repurchase program.

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 semi-annually in Q2 and Q4 of the relevant compensation year.

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 as of December 31, 2024 and March 31, 2025.

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.

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Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

Cost of sales $ 266 $ 250 $ 440 $ 398

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Total stock-based compensation expense $ 6,722 $ 6,534 $ 11,683 $ 10,223

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

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

Number of Units Weighted-Average

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Units forfeited ( 18.6 ) 148

Outstanding as of March 31, 2025 263.0 148

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

Nine Months Ended December 31, Year Ended December 31,

Outstanding as of June 30, 2025 291.7 164

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,

2025 2026 2027 2028 2029 Thereafter Total

Scheduled vesting — restricted stock units 72.3 114.7 70.5 26.7 5.5 2.0 291.7

As of March 31, 2025, there was $ 13.9 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements.

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.

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Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

Total beginning stockholders’ equity $ 216,661 $ 305,867 $ 201,875 $ 285,970

Beginning and ending common stock 109 111

Beginning common stock 109 111 109 111

Stock-based compensation and issuance of employee benefit plan stock 1 1 1 1

Ending common stock 110 112 110 112

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

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Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.

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 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.

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For 2025, we estimate that our effective tax rate will be favorably impacted by the U.S.

federal research and development credit and foreign income deduction and adversely affected by state income taxes.

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

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

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

As of December 31, 2024 and March 31, 2025, income tax contingencies were approximately $ 6.5 billion and $ 6.3 billion.

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.

19 unchanged sentences

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.

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.

12 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

North America

18 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

Online stores (1) $ 55,392 $ 61,485 $ 110,062 $ 118,892

18 unchanged sentences

Total segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities, goodwill and other acquired intangible assets, and tax assets.

Technology infrastructure assets are allocated among the segments based on usage, with the majority allocated to the AWS segment.

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 March 31, 2025

December 31, 2024 June 30, 2025

North America (1) $ 210,120 $ 224,304

7 unchanged sentences

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

December 31, 2024 March 31, 2025

December 31, 2024 June 30, 2025

North America $ 103,041 $ 113,249

3 unchanged sentences

Consolidated $ 252,665 $ 297,616

Total net additions to property and equipment include technology infrastructure assets, which are allocated among the segments based on usage, with the majority allocated to the AWS segment.

Total net additions to property and equipment include the effect of non-cash activity such as property and equipment acquired but not yet paid.

Total net additions to property and equipment 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

2024 2025 2024 2025

North America (1) $ 4,929 $ 11,272 $ 10,080 $ 16,368

4 unchanged sentences

___________________

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

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

(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.

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2024 2025 2024 2025

North America $ 3,517 $ 3,742 $ 6,890 $ 7,272

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements