AMAZON COM INC 10-Q

Item 1. Financial Statements AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (unaudited) Three Months Ended June 30, Six Months Ended June 30, Twelve Months Ended June 30, 2024 2025 2024 2025 2024 2025 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 73,332 $ 69,893 $ 73,890 $ 82,312 $ 50,067 $ 71,673 OPERATING ACTIVITIES: Net income 13,485 18,164 23,916 35,291 44,419 70,623 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 12,038 15,227 23,722 29,489 49,673 58,562 Stock-based compensation 6,722 6,534 11,683 10,223 23,831 20,551 Non-operating expense (income), net ( 95 ) ( 1,258 ) 2,639 ( 4,075 ) 1,310 ( 4,702 ) Deferred income taxes ( 785 ) 11 ( 1,723 ) 518 ( 4,383 ) ( 2,407 ) Changes in operating assets and liabilities: Inventories ( 3,085 ) ( 4,054 ) ( 1,309 ) ( 5,276 ) 2,142 ( 5,851 ) Accounts receivable, net and other ( 2,209 ) ( 1,125 ) 1,475 122 ( 9,556 ) ( 4,602 ) Other assets ( 3,055 ) ( 2,971 ) ( 5,756 ) ( 6,373 ) ( 11,692 ) ( 15,100 ) Accounts payable 6,005 7,058 ( 5,277 ) ( 1,985 ) 8,431 6,264 Accrued expenses and other ( 4,147 ) ( 4,952 ) ( 7,075 ) ( 9,013 ) ( 1,802 ) ( 4,842 ) Unearned revenue 407 ( 119 ) 1,975 609 5,579 2,641 Net cash provided by (used in) operating activities 25,281 32,515 44,270 49,530 107,952 121,137 INVESTING ACTIVITIES: Purchases of property and equipment ( 17,620 ) ( 32,183 ) ( 32,545 ) ( 57,202 ) ( 59,612 ) ( 107,656 ) Proceeds from property and equipment sales and incentives 1,227 815 2,217 1,579 4,633 4,703 Acquisitions, net of cash acquired, non-marketable investments, and other, net ( 571 ) ( 1,700 ) ( 3,925 ) ( 1,652 ) ( 5,935 ) ( 4,809 ) Sales and maturities of marketable securities 3,265 11,441 4,657 19,178 7,618 30,924 Purchases of marketable securities ( 8,439 ) ( 17,797 ) ( 10,404 ) ( 31,130 ) ( 11,058 ) ( 46,731 ) Net cash provided by (used in) investing activities ( 22,138 ) ( 39,424 ) ( 40,000 ) ( 69,227 ) ( 64,354 ) ( 123,569 ) FINANCING ACTIVITIES: Proceeds from short-term debt, and other 525 2,093 863 3,908 1,813 8,187 Repayments of short-term debt, and other ( 229 ) ( 1,392 ) ( 633 ) ( 3,474 ) ( 15,066 ) ( 7,901 ) Proceeds from long-term debt — — — 746 — 746 Repayments of long-term debt ( 4,169 ) ( 2,751 ) ( 4,499 ) ( 2,751 ) ( 4,789 ) ( 7,434 ) Principal repayments of finance leases ( 538 ) ( 411 ) ( 1,308 ) ( 821 ) ( 3,092 ) ( 1,556 ) Principal repayments of financing obligations ( 79 ) ( 78 ) ( 169 ) ( 194 ) ( 306 ) ( 694 ) Net cash provided by (used in) financing activities ( 4,490 ) ( 2,539 ) ( 5,746 ) ( 2,586 ) ( 21,440 ) ( 8,652 ) Foreign currency effect on cash, cash equivalents, and restricted cash ( 312 ) 1,008 ( 741 ) 1,424 ( 552 ) 864 Net increase (decrease) in cash, cash equivalents, and restricted cash ( 1,659 ) ( 8,440 ) ( 2,217 ) ( 20,859 ) 21,606 ( 10,220 ) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 71,673 $ 61,453 $ 71,673 $ 61,453 $ 71,673 $ 61,453 See accompanying notes to consolidated financial statements. 3 Table of Contents AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 Net product sales $ 61,569 $ 68,246 $ 122,484 $ 132,216 Net service sales 86,408 99,456 168,806 191,153 Total net sales 147,977 167,702 291,290 323,369 Operating expenses: Cost of sales 73,785 80,809 146,418 157,785 Fulfillment 23,566 25,976 45,883 50,569 Technology and infrastructure 22,304 27,166 42,728 50,160 Sales and marketing 10,512 11,416 20,174 21,179 General and administrative 3,041 2,965 5,783 5,593 Other operating expense (income), net 97 199 325 507 Total operating expenses 133,305 148,531 261,311 285,793 Operating income 14,672 19,171 29,979 37,576 Interest income 1,180 1,085 2,173 2,151 Interest expense ( 589 ) ( 516 ) ( 1,233 ) ( 1,057 ) Other income (expense), net ( 18 ) 1,117 ( 2,691 ) 3,866 Total non-operating income (expense) 573 1,686 ( 1,751 ) 4,960 Income before income taxes 15,245 20,857 28,228 42,536 Provision for income taxes ( 1,767 ) ( 2,678 ) ( 4,234 ) ( 7,231 ) Equity-method investment activity, net of tax 7 ( 15 ) ( 78 ) ( 14 ) Net income $ 13,485 $ 18,164 $ 23,916 $ 35,291 Basic earnings per share $ 1.29 $ 1.71 $ 2.30 $ 3.32 Diluted earnings per share $ 1.26 $ 1.68 $ 2.24 $ 3.27 Weighted-average shares used in computation of earnings per share: Basic 10,447 10,637 10,420 10,620 Diluted 10,708 10,806 10,689 10,800 See accompanying notes to consolidated financial statements. 4 Table of Contents AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 Net income $ 13,485 $ 18,164 $ 23,916 $ 35,291 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $ 58 , $( 142 ), $ 88 , and $( 208 ) ( 637 ) 3,314 ( 1,733 ) 4,849 Available-for-sale debt securities: Change in net unrealized gains (losses), net of tax of $( 69 ), $( 12 ), $( 227 ), and $( 23 ) 241 40 777 77 Less: 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 Comprehensive income $ 13,090 $ 21,498 $ 22,963 $ 37,745 See accompanying notes to consolidated financial statements. 5 Table of Contents AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2024 June 30, 2025 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 78,779 $ 57,741 Marketable securities 22,423 35,439 Inventories 34,214 40,825 Accounts receivable, net and other 55,451 57,415 Total current assets 190,867 191,420 Property and equipment, net 252,665 297,616 Operating leases 76,141 82,125 Goodwill 23,074 23,155 Other assets 82,147 87,854 Total assets $ 624,894 $ 682,170 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 94,363 $ 98,285 Accrued expenses and other 66,965 66,974 Unearned revenue 18,103 21,662 Total current liabilities 179,431 186,921 Long-term lease liabilities 78,277 83,221 Long-term debt 52,623 50,718 Other long-term liabilities 28,593 27,535 Commitments and contingencies (Note 4) Stockholders’ equity: Preferred stock ($ 0.01 par value; 500 shares authorized; no shares issued or outstanding) — — Common stock ($ 0.01 par value; 100,000 shares authorized; 11,108 and 11,175 shares issued; 10,593 and 10,660 shares outstanding) 111 112 Treasury stock, at cost ( 7,837 ) ( 7,837 ) Additional paid-in capital 120,864 130,923 Accumulated other comprehensive income (loss) ( 34 ) 2,420 Retained earnings 172,866 208,157 Total stockholders’ equity 285,970 333,775 Total liabilities and stockholders’ equity $ 624,894 $ 682,170 See accompanying notes to consolidated financial statements. 6 Table of Contents AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 — ACCOUNTING POLICIES AND SUPPLEMENTAL DISCLOSURES Unaudited Interim Financial Information We have prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These consolidated financial statements are unaudited and, in our opinion, include all adjustments, consisting of normal recurring adjustments and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Operating results for the periods presented are not necessarily indicative of the results that may be expected for 2025 due to seasonal and other factors. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes in Item 8 of Part II, “Financial Statements and Supplementary Data,” of our 2024 Annual Report on Form 10-K. Principles of Consolidation The consolidated financial statements include the accounts of Amazon.com, Inc. and its consolidated entities (collectively, the “Company”), consisting of its wholly-owned subsidiaries and those entities in which we have a variable interest and of which we are the primary beneficiary, including certain entities in India and certain entities that support our healthcare services and production and distribution of video content. Intercompany balances and transactions between consolidated entities are eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, income taxes, useful lives of equipment, commitments and contingencies, valuation of acquired intangibles and goodwill, stock-based compensation forfeiture rates, vendor funding, inventory valuation, collectability of receivables, impairment of property and equipment and operating leases, valuation and impairment of investments, self-insurance liabilities, viewing patterns of capitalized video content, and the determination of when to capitalize certain costs relating to new products or service offerings. Actual results could differ materially from these estimates. We review the useful lives of equipment on an ongoing basis. Effective January 1, 2025 we changed our estimate of the useful lives of a subset of our servers and networking equipment from six years to five years . The shorter useful lives are due to the increased pace of technology development, particularly in the area of artificial intelligence and machine learning. The effect of this change in estimate for Q2 2025, based on servers and networking equipment that were included in “Property and equipment, net” as of March 31, 2025 and those acquired during the three months ended June 30, 2025, was an increase in depreciation and amortization expense of $ 280 million and a reduction in net income of $ 217 million, or $ 0.02 per basic share and $ 0.02 per diluted share, which primarily impacted our AWS segment. The effect of this change in estimate for the six months ended June 30, 2025, based on servers and networking equipment that were included in “Property and equipment, net” as of December 31, 2024 and those acquired during the six months ended June 30, 2025, was an increase in depreciation and amortization expense of $ 497 million and a reduction in net income of $ 379 million, or $ 0.04 per basic share and $ 0.04 per diluted share, which primarily impacted our AWS segment. 7 Table of Contents Supplemental Cash Flow Information The following table shows supplemental cash flow information (in millions): Three Months Ended June 30, Six Months Ended June 30, Twelve Months Ended June 30, 2024 2025 2024 2025 2024 2025 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on debt, net of capitalized interest $ 680 $ 523 $ 949 $ 759 $ 2,201 $ 1,668 Cash paid for operating leases 2,844 3,758 6,176 7,320 11,634 13,485 Cash paid for interest on finance leases 72 72 146 143 296 284 Cash paid for interest on financing obligations 50 52 114 107 210 212 Cash paid for income taxes, net of refunds 5,700 4,761 6,158 5,638 12,983 11,788 Assets acquired under operating leases 3,911 4,621 7,664 8,942 13,986 16,702 Property and equipment acquired under finance leases, net of remeasurements and modifications 181 937 223 991 617 1,622 Increase (decrease) in property and equipment acquired but not yet paid 2,760 ( 1,600 ) 3,171 1,508 3,791 5,376 Earnings Per Share Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we have a net loss, stock awards are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. The following table shows the calculation of diluted shares (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 Shares used in computation of basic earnings per share 10,447 10,637 10,420 10,620 Total dilutive effect of outstanding stock awards 261 169 269 180 Shares used in computation of diluted earnings per share 10,708 10,806 10,689 10,800 Other Income (Expense), Net Other income (expense), net is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 Marketable equity securities valuation gains (losses) $ 443 $ 388 $ ( 1,683 ) $ 250 Equity warrant valuation gains (losses) ( 271 ) 590 ( 501 ) 212 Reclassification adjustment for gains (losses) on available-for-sale debt securities ( 4 ) 22 ( 5 ) 3,285 Upward adjustments relating to equity investments in private companies 6 49 11 86 Foreign currency gains (losses) ( 138 ) 70 ( 212 ) 68 Other, net ( 54 ) ( 2 ) ( 301 ) ( 35 ) Total other income (expense), net $ ( 18 ) $ 1,117 $ ( 2,691 ) $ 3,866 The marketable equity securities valuation gain (loss) of $ 443 million and $ 388 million in Q2 2024 and Q2 2025, and $( 1.7 ) billion and $ 250 million for the six months ended June 30, 2024 and 2025 is primarily from our equity investment in Rivian Automotive, Inc. (“Rivian”). The reclassification adjustment for the gain on available-for-sale debt securities of $ 3.3 billion for the six months ended June 30, 2025 is primarily from the portion of our convertible notes investments in Anthropic, PBC (“Anthropic”) that were converted to nonvoting preferred stock during the three months ended March 31, 2025. 8 Table of Contents Inventories Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. This valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category. The inventory valuation allowance, representing a write-down of inventory, was $ 3.0 billion and $ 2.8 billion as of December 31, 2024 and June 30, 2025. Accounts Receivable, Net and Other Included in “Accounts receivable, net and other” on our consolidated balance sheets are receivables primarily related to customers, vendors, and prepaid expenses and other current assets. As of December 31, 2024 and June 30, 2025, customer receivables, net, were $ 34.3 billion and $ 36.6 billion, vendor receivables, net, were $ 11.6 billion and $ 10.6 billion, and other receivables, net, were $ 3.4 billion and $ 3.5 billion. Prepaid expenses and other current assets, which include amounts related to non-income taxes and satellite network launch services deposits, were $ 6.3 billion and $ 6.7 billion as of December 31, 2024 and June 30, 2025. We currently expense satellite network launch services deposits upon launch to “Technology and infrastructure.” We estimate losses on receivables based on expected losses, including our historical experience of actual losses. The allowance for doubtful accounts was $ 2.0 billion and $ 2.1 billion as of December 31, 2024 and June 30, 2025. Digital Video and Music Content Included in “Other assets” on our consolidated balance sheets are the total capitalized costs of video, which is primarily released content, and music, which as of December 31, 2024 and June 30, 2025 were $ 19.6 billion and $ 20.4 billion. Total video and music expense was $ 4.6 billion and $ 5.1 billion in Q2 2024 and Q2 2025, and $ 9.2 billion and $ 10.2 billion for the six months ended June 30, 2024 and 2025. Unearned Revenue Unearned revenue is recorded when payments are received or due in advance of performing our service obligations and is recognized over the service period. Unearned revenue primarily relates to prepayments of AWS services and Amazon Prime memberships. Our total unearned revenue as of December 31, 2024 was $ 24.6 billion, of which $ 11.4 billion was recognized as revenue during the six months ended June 30, 2025. Included in “Other long-term liabilities” on our consolidated balance sheets was $ 6.5 billion and $ 4.3 billion of unearned revenue as of December 31, 2024 and June 30, 2025. Additionally, we have performance obligations, primarily related to AWS, associated with commitments in customer contracts for future services that have not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were approximately $ 195 billion as of June 30, 2025. The weighted-average remaining life of our long-term contracts is 4.0 years. However, the amount and timing of revenue recognition is largely driven by customer usage, which can extend beyond the original contractual term. Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. We expect to adopt the ASU on a retroactive basis. In November 2024, the FASB issued an ASU amending existing income statement disclosure guidance, primarily requiring more detailed disclosure for expenses. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments can be applied on either a prospective or retroactive basis. We are currently evaluating the ASU to determine its impact on our disclosures. 9 Table of Contents Note 2 — FINANCIAL INSTRUMENTS Cash, Cash Equivalents, Restricted Cash, and Marketable Securities As of December 31, 2024 and June 30, 2025, our cash, cash equivalents, restricted cash, and marketable securities primarily consisted of cash, AAA-rated money market funds, U.S. and foreign government and agency securities, other investment grade securities, and marketable equity securities. Cash equivalents and marketable securities are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: Level 1— Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2— Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3— Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. We measure the fair value of money market funds and certain marketable equity securities based on quoted prices in active markets for identical assets or liabilities. Other marketable securities were valued either based on recent trades of securities in inactive markets or based on quoted market prices of similar instruments and other significant inputs derived from or corroborated by observable market data. 10 Table of Contents 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 June 30, 2025 Total Estimated Fair Value Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value Cash $ 17,055 $ 16,083 $ — $ — $ 16,083 Level 1 securities: Money market funds 28,282 18,058 — — 18,058 Equity securities (1) 3,318 3,149 Level 2 securities: Foreign government and agency securities 177 84 — — 84 U.S. government and agency securities 3,401 5,057 5 ( 32 ) 5,030 Corporate debt securities 50,912 52,634 26 ( 19 ) 52,641 Asset-backed securities 1,523 1,813 6 ( 12 ) 1,807 Other debt securities 67 40 — — 40 $ 104,735 $ 93,769 $ 37 $ ( 63 ) $ 96,892 Less: Restricted cash, cash equivalents, and marketable securities (2) ( 3,533 ) ( 3,712 ) Total cash, cash equivalents, and marketable securities $ 101,202 $ 93,180 ___________________ (1) The related unrealized gain (loss) recorded in “Other income (expense), net” was $ 443 million and $ 393 million in Q2 2024 and Q2 2025, and $( 1.7 ) billion and $ 188 million for the six months ended June 30, 2024 and 2025. (2) We are required to pledge or otherwise restrict a portion of our cash, cash equivalents, and marketable debt securities primarily as collateral for real estate, amounts due to third-party sellers in certain jurisdictions, debt, standby and trade letters of credit, and licenses of digital media content. We classify cash, cash equivalents, and marketable debt securities with use restrictions of less than twelve months as “Accounts receivable, net and other” and of twelve months or longer as non-current “Other assets” on our consolidated balance sheets. See “Note 4 — Commitments and Contingencies.” The following table summarizes the remaining contractual maturities of our cash equivalents and marketable debt securities as of June 30, 2025 (in millions): Amortized Cost Estimated Fair Value Due within one year $ 68,262 $ 68,246 Due after one year through five years 7,911 7,928 Due after five years through ten years 610 607 Due after ten years 903 879 Total $ 77,686 $ 77,660 Actual maturities may differ from the contractual maturities because borrowers may have certain prepayment conditions. Non-Marketable Investments From Q3 2023 to Q4 2024, we invested $ 5.3 billion in convertible notes from Anthropic, which are classified as available-for-sale and reported at fair value with unrealized gains and losses included in “Accumulated other comprehensive income (loss)” and as Level 3 assets, and as of December 31, 2024 had an estimated fair value of approximately $ 13.8 billion. In making these estimates, we utilized valuation methods based on information available, including the rights and obligations of the convertible notes, other outstanding classes of securities, observable transactions such as new securities offerings, estimates of expected time to and type of liquidity events and anticipated securities offerings, and discounts for lack of marketability. Some of these notes converted to nonvoting preferred stock in Q1 2025. As a result of conversions, a significant portion of the unrealized gain associated with the notes as of December 31, 2024 was reclassified and a gain of approximately $ 3.3 billion was recorded in “Other income (expense), net” in our consolidated statement of operations. The investment in nonvoting preferred stock was initially recorded at its estimated fair value at the time of the conversion and will be accounted for as a component of our equity investments in private companies not accounted for under the equity-method, with future adjustments for observable changes in prices or impairments recognized in “Other income (expense), net” on our consolidated statements of 11 Table of Contents operations. In Q2 2025, we invested $ 1.3 billion in a new convertible note from Anthropic, and will invest an additional $ 1.4 billion by Q4 2025. As of June 30, 2025, the estimated fair value of our convertible notes and amounts recorded for nonvoting preferred stock investments was approximately $ 15.1 billion. We also have a commercial arrangement primarily for the provision of AWS cloud services, which includes the use of AWS chips. As of December 31, 2024 and June 30, 2025, equity investments in private companies not accounted for under the equity-method had a carrying value of $ 989 million and $ 6.1 billion, with adjustments for observable changes in prices or impairments recognized in “Other income (expense), net” on our consolidated statements of operations. As of December 31, 2024 and June 30, 2025, equity investments accounted for under the equity-method of accounting, including investments for which we have elected the fair value option, had a carrying value of $ 1.2 billion. We hold equity warrants giving us the right to acquire stock of other companies. As of December 31, 2024 and June 30, 2025, these warrants had a fair value of $ 2.7 billion and $ 2.6 billion, with gains and losses recognized in “Other income (expense), net” on our consolidated statements of operations. These warrants are classified as Level 2 and 3 assets. These non-marketable investments are included within “Other assets” on our consolidated balance sheets. Certain of our investments represent a variable interest in an entity for which we do not consolidate because we are not the primary beneficiary. Consolidated Statements of Cash Flows Reconciliation The following table provides a reconciliation of the amount of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets to the total of the same such amounts shown in the consolidated statements of cash flows (in millions): December 31, 2024 June 30, 2025 Cash and cash equivalents $ 78,779 $ 57,741 Restricted cash included in accounts receivable, net and other 247 356 Restricted cash included in other assets 3,286 3,356 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 82,312 $ 61,453 Note 3 — LEASES We have entered into non-cancellable operating and finance leases for fulfillment network, data center, office, and physical store facilities as well as server and networking equipment, aircraft, and vehicles. Gross assets acquired under finance leases, including those where title transfers at the end of the lease, are recorded in “ Property and equipment, net ” and were $ 56.5 billion and $ 56.1 billion as of December 31, 2024 and June 30, 2025. Accumulated amortization associated with finance leases was $ 41.8 billion and $ 41.5 billion as of December 31, 2024 and June 30, 2025. Lease cost recognized in our consolidated statements of operations is summarized as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 Operating lease cost $ 2,921 $ 3,426 $ 5,750 $ 6,666 Finance lease cost: Amortization of lease assets 948 827 1,889 1,700 Interest on lease liabilities 72 72 145 143 Finance lease cost 1,020 899 2,034 1,843 Variable lease cost 592 659 1,227 1,355 Total lease cost $ 4,533 $ 4,984 $ 9,011 $ 9,864 12 Table of Contents Other information about lease amounts recognized in our consolidated financial statements is as follows: December 31, 2024 June 30, 2025 Weighted-average remaining lease term – operating leases 10.6 years 10.2 years Weighted-average remaining lease term – finance leases 11.9 years 12.2 years Weighted-average discount rate – operating leases 3.5 % 3.6 % Weighted-average discount rate – finance leases 3.0 % 3.0 % Our lease liabilities were as follows (in millions): December 31, 2024 Operating Leases Finance Leases Total Gross lease liabilities $ 95,294 $ 12,520 $ 107,814 Less: imputed interest ( 15,698 ) ( 1,918 ) ( 17,616 ) Present value of lease liabilities 79,596 10,602 90,198 Less: current portion of lease liabilities ( 10,546 ) ( 1,375 ) ( 11,921 ) Total long-term lease liabilities $ 69,050 $ 9,227 $ 78,277 June 30, 2025 Operating Leases Finance Leases Total Gross lease liabilities $ 101,506 $ 13,324 $ 114,830 Less: imputed interest ( 16,515 ) ( 2,121 ) ( 18,636 ) Present value of lease liabilities 84,991 11,203 96,194 Less: current portion of lease liabilities ( 11,597 ) ( 1,376 ) ( 12,973 ) Total long-term lease liabilities $ 73,394 $ 9,827 $ 83,221 13 Table of Contents Note 4 — COMMITMENTS AND CONTINGENCIES Commitments The following summarizes our principal contractual commitments, excluding open orders for purchases that support normal operations and are generally cancellable, as of June 30, 2025 (in millions): Six Months Ended December 31, Year Ended December 31, 2025 2026 2027 2028 2029 Thereafter Total Long-term debt principal and interest $ 3,166 $ 4,506 $ 10,546 $ 3,686 $ 4,387 $ 57,812 $ 84,103 Operating lease liabilities 7,529 12,741 11,683 10,563 9,735 49,255 101,506 Finance lease liabilities, including interest 838 1,569 1,410 1,267 1,121 7,119 13,324 Financing obligations, including interest (1) 224 529 537 546 554 6,529 8,919 Leases not yet commenced 1,558 4,310 5,047 4,776 4,646 48,547 68,884 Unconditional purchase obligations (2) 8,175 12,621 8,158 6,355 5,756 29,953 71,018 Other commitments (3) 1,841 1,936 1,157 1,002 975 11,810 18,721 Total commitments $ 23,331 $ 38,212 $ 38,538 $ 28,195 $ 27,174 $ 211,025 $ 366,475 ___________________ (1) Includes non-cancellable financing obligations for fulfillment network and data center facilities. Excluding interest, current financing obligations of $ 312 million and $ 280 million are recorded within “Accrued expenses and other” and $ 7.1 billion and $ 7.2 billion are recorded within “Other long-term liabilities” as of December 31, 2024 and June 30, 2025. The weighted-average remaining term of the financing obligations was 16.1 years and 15.5 years and the weighted-average imputed interest rate was 3.1 % as of December 31, 2024 and June 30, 2025. (2) Includes unconditional purchase obligations related to long-term agreements to acquire and license digital media content, procure energy, acquire property and equipment, and license software that are not reflected on the consolidated balance sheets. For those agreements with variable terms, we do not estimate the total obligation beyond any minimum quantities and/or pricing as of the reporting date. Purchase obligations associated with renewal provisions solely at the option of the content provider are included to the extent such commitments are fixed or a minimum amount is specified. Energy agreements based on actual generation without a fixed or minimum volume commitment are not included. Our energy agreements generally provide the right to receive energy certificates for no additional consideration. (3) Includes asset retirement obligations, the estimated timing and amounts of payments for rent and tenant improvements associated with build-to-suit lease arrangements that are under construction, and liabilities associated with digital media content agreements with initial terms greater than one year. Excludes approximately $ 5.8 billion of income tax contingencies for which we cannot make a reasonably reliable estimate of the amount and period of payment, if any. Other Contingencies We are disputing claims and denials of refunds or credits, and monitoring or evaluating potential claims, related to various non-income taxes (such as sales, value added, consumption, service, and similar taxes), including in jurisdictions in which we already collect and remit these taxes. These non-income tax controversies typically include (i) the taxability of products and services, including cross-border intercompany transactions, (ii) collection and withholding on transactions with third parties, including as a result of evolving requirements imposed on marketplaces with respect to third-party sellers, and (iii) the adequacy of compliance with reporting obligations, including evolving documentation requirements. Due to the inherent complexity and uncertainty of these matters and the judicial and regulatory processes in certain jurisdictions, the final outcome of any such controversies may be materially different from our expectations. Legal Proceedings The Company is involved from time to time in claims, proceedings, and litigation, including the matters described in Item 8 of Part II, “Financial Statements and Supplementary Data — Note 7 — Commitments and Contingencies — Legal Proceedings” of our 2024 Annual Report on Form 10-K and in Item 1 of Part I, “Financial Statements — Note 4 — Commitments and Contingencies — Legal Proceedings” of our Quarterly Report on Form 10-Q for the period ended March 31, 2025, as supplemented by the following: In June 2025, Xockets, Inc. filed two complaints against Amazon.com, Inc. and Amazon Web Services, Inc. in the United States District Court for the Western District of Texas. The complaints allege, among other things, that certain versions of the AWS Nitro System infringe U.S. Patent Nos. 11,080,209; 10,649,924; 11,082,350; 10,223,297; 9,378,161; 9,436,640; and 14 Table of Contents 10,212,092. The complaints seek an unspecified amount of damages, enhanced damages, attorneys’ fees, costs, interest, and injunctive relief. We dispute the allegations of wrongdoing and intend to defend ourselves vigorously in these matters. In addition, we are regularly subject to claims, litigation, and other proceedings, including potential regulatory proceedings, involving patent and other intellectual property matters, taxes, labor and employment, competition and antitrust, privacy and data protection, consumer protection, commercial disputes, goods and services offered by us and by third parties, and other matters. The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. We evaluate, on a regular basis, developments in our legal proceedings and other contingencies that could affect the amount of liability, including amounts in excess of any previous accruals and reasonably possible losses disclosed, and make adjustments and changes to our accruals and disclosures as appropriate. For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. Until the final resolution of such matters, if any of our estimates and assumptions change or prove to have been incorrect, we may experience losses in excess of the amounts recorded, which could have a material effect on our business, consolidated financial position, results of operations, or cash flows. See also “Note 7 — Income Taxes.” Note 5 — DEBT As of June 30, 2025, we had $ 55.3 billion of unsecured senior notes outstanding (the “Notes”). Our total long-term debt obligations are as follows (in millions): Maturities (1) Stated Interest Rates Effective Interest Rates December 31, 2024 June 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 2025 - 2057 3.15 % - 5.20 % 3.02 % - 4.33 % 13,000 13,000 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 — 832 Total face value of long-term debt 58,000 56,082 Unamortized discount and issuance costs, net ( 360 ) ( 359 ) Less: current portion of long-term debt ( 5,017 ) ( 5,005 ) Long-term debt $ 52,623 $ 50,718 ___________________ (1) The weighted-average remaining lives of the 2014, 2017, 2020, 2021, April 2022, and December 2022 Notes were 14.9 , 14.7 , 18.6 , 13.7 , 14.3 , and 4.1 years as of June 30, 2025. The combined weighted-average remaining life of the Notes was 13.6 years as of June 30, 2025. Interest on the Notes is payable semi-annually in arrears. We may redeem the Notes at any time in whole, or from time to time, in part at specified redemption prices. We are not subject to any financial covenants under the Notes. The estimated fair value of the Notes was approximately $ 50.2 billion and $ 48.2 billion as of December 31, 2024 and June 30, 2025, which is based on quoted prices for our debt as of those dates. As of September 30, 2024, we had repaid outstanding borrowings and terminated the secured revolving credit facility with a lender that was secured by certain seller receivables (the “Credit Facility”). The Credit Facility bore interest based on the daily Secured Overnight Financing Rate plus 1.25 %, and had a commitment fee of up to 0.45 % on the undrawn portion. In January 2023, we entered into an $ 8.0 billion unsecured 364-day term loan with a syndicate of lenders (the “Term Loan”), maturing in January 2024 and bearing interest at the Secured Overnight Financing Rate specified in the Term Loan plus 0.75 %. The Term Loan was classified as short-term debt and included within “Accrued expenses and other” on our consolidated balance sheets. As of December 31, 2023, the entire amount of the Term Loan had been repaid. 15 Table of Contents We have U.S. Dollar and Euro commercial paper programs (the “Commercial Paper Programs”) under which we may from time to time issue unsecured commercial paper up to a total of $ 30.0 billion (including up to € 3.0 billion) at the date of issue, with individual maturities that may vary but will not exceed 397 days from the date of issue. In April 2025, we increased the size of the Commercial Paper Programs from $ 20.0 billion to $ 30.0 billion. There were no borrowings outstanding under the Commercial Paper Programs as of December 31, 2024 and June 30, 2025. We use the net proceeds from the issuance of commercial paper for general corporate purposes. We have a $ 15.0 billion unsecured revolving credit facility with a syndicate of lenders (the “Credit Agreement”), with a term that extends to November 2028 and may be extended for one or more additional one-year terms subject to approval by the lenders. The interest rate applicable to outstanding balances under the Credit Agreement is the applicable benchmark rate specified in the Credit Agreement plus 0.45 %, with a commitment fee of 0.03 % on the undrawn portion of the credit facility. There were no borrowings outstanding under the Credit Agreement as of December 31, 2024 and June 30, 2025. We have a $ 5.0 billion unsecured 364-day revolving credit facility with a syndicate of lenders (the “Short-Term Credit Agreement”), which matures in October 2025 and may be extended for one additional period of 364 days subject to approval by the lenders. The interest rate applicable to outstanding balances under the Short-Term Credit Agreement is the Secured Overnight Financing Rate specified in the Short-Term Credit Agreement plus 0.45 %, with a commitment fee of 0.03 % on the undrawn portion. There were no borrowings outstanding under the Short-Term Credit Agreement as of December 31, 2024 and June 30, 2025. We also utilize other short-term credit facilities for working capital purposes. There were $ 151 million and $ 173 million of borrowings outstanding under these facilities as of December 31, 2024 and June 30, 2025, which were included in “Accrued expenses and other” on our consolidated balance sheets. In addition, we had $ 9.0 billion of unused letters of credit as of June 30, 2025. Note 6 — STOCKHOLDERS’ EQUITY Stock Repurchase Activity In March 2022, the Board of Directors authorized a program to repurchase up to $ 10.0 billion of our common stock, with no fixed expiration. There were no repurchases of our common stock during the six months ended June 30, 2024 or 2025. As of June 30, 2025, we have $ 6.1 billion remaining under the repurchase program. Stock Award Plans Employees vest in restricted stock unit awards over the corresponding service term, generally between two and five years . The majority of restricted stock unit awards are granted at the date of hire or in Q2 as part of the annual compensation review and primarily vest quarterly in the relevant compensation year. Stock Award Activity Common shares outstanding plus shares underlying outstanding stock awards totaled 10.9 billion and 11.0 billion as of December 31, 2024 and June 30, 2025. These totals include all vested and unvested stock awards outstanding, including those awards we estimate will be forfeited. Stock-based compensation expense is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 Cost of sales $ 266 $ 250 $ 440 $ 398 Fulfillment 944 880 1,580 1,377 Technology and infrastructure 3,670 3,655 6,442 5,715 Sales and marketing 1,224 1,207 2,156 1,860 General and administrative 618 542 1,065 873 Total stock-based compensation expense $ 6,722 $ 6,534 $ 11,683 $ 10,223 16 Table of Contents The following table summarizes our restricted stock unit activity for the six months ended June 30, 2025 (in millions): Number of Units Weighted-Average Grant-Date Fair Value Outstanding as of December 31, 2024 283.1 $ 145 Units granted 94.9 195 Units vested ( 67.7 ) 132 Units forfeited ( 18.6 ) 148 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 June 30, 2025, there was $ 22.7 billion of net unrecognized compensation cost related to unvested stock-based compensation arrangements. This compensation is recognized on an accelerated basis with more than half of the compensation expected to be expensed in the next twelve months, and has a remaining weighted-average recognition period of 1.0 year. Changes in Stockholders’ Equity The following table shows changes in stockholders’ equity (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 Total beginning stockholders’ equity $ 216,661 $ 305,867 $ 201,875 $ 285,970 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 ) Beginning additional paid-in capital 103,938 124,514 99,025 120,864 Stock-based compensation and issuance of employee benefit plan stock 6,695 6,409 11,608 10,059 Ending additional paid-in capital 110,633 130,923 110,633 130,923 Beginning accumulated other comprehensive income (loss) ( 3,598 ) ( 914 ) ( 3,040 ) ( 34 ) Other comprehensive income (loss) ( 395 ) 3,334 ( 953 ) 2,454 Ending accumulated other comprehensive income (loss) ( 3,993 ) 2,420 ( 3,993 ) 2,420 Beginning retained earnings 124,049 189,993 113,618 172,866 Net income 13,485 18,164 23,916 35,291 Ending retained earnings 137,534 208,157 137,534 208,157 Total ending stockholders’ equity $ 236,447 $ 333,775 $ 236,447 $ 333,775 Note 7 — INCOME TAXES Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. 17 Table of Contents Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, changes in how we do business, acquisitions, investments, developments in tax controversies, changes in our stock price, changes in our deferred tax assets and liabilities and their valuation, foreign currency gains (losses), changes in statutes, regulations, case law, and administrative practices, principles, and interpretations related to tax, including changes to the global tax framework, competition, and other laws and accounting rules in various jurisdictions, and relative changes of expenses or losses for which tax benefits are not recognized. Our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. In addition, we record valuation allowances against deferred tax assets when there is uncertainty about our ability to generate future income in relevant jurisdictions. For 2025, we estimate that our effective tax rate will be favorably impacted by the U.S. federal research and development credit and adversely affected by state income taxes. Our income tax provision for the six months ended June 30, 2024 was $ 4.2 billion, which included $ 1.9 billion of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation. Our income tax provision for the six months ended June 30, 2025 was $ 7.2 billion, which included $ 753 million of net discrete tax benefits primarily attributable to excess tax benefits from stock-based compensation. Cash paid for income taxes, net of refunds was $ 5.7 billion and $ 4.8 billion in Q2 2024 and Q2 2025, and $ 6.2 billion and $ 5.6 billion for the six months ended June 30, 2024 and 2025. The One Big Beautiful Bill Act of 2025 (the “2025 Tax Act”) was signed into law on July 4, 2025. The 2025 Tax Act makes changes to the U.S. corporate income tax, including reinstating the option to claim 100% accelerated depreciation deductions on qualified property, with retroactive application beginning January 20, 2025, and immediate expensing of domestic research and development costs, with retroactive application beginning January 1, 2025. While we are still evaluating the full extent of the 2025 Tax Act’s impact, in 2025 we expect our U.S. cash taxes to significantly decrease and our income tax provision to increase primarily due to a decrease in our foreign income deduction. As of December 31, 2024 and June 30, 2025, income tax contingencies were approximately $ 6.5 billion and $ 5.8 billion. Changes in tax laws, regulations, administrative practices, principles, and interpretations may impact our tax contingencies. Due to various factors, including the inherent complexities and uncertainties of the judicial, administrative, and regulatory processes in certain jurisdictions, the timing of the resolution of income tax controversies is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next twelve months we will receive additional assessments by various tax authorities or possibly reach resolution of income tax controversies in one or more jurisdictions. These assessments or settlements could result in changes to our contingencies related to positions on prior years’ tax filings. We are under examination, or may be subject to examination, by the Internal Revenue Service for the calendar year 2016 and thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to our taxes or our net operating losses with respect to years under examination as well as subsequent periods. We are also subject to taxation in various states and foreign jurisdictions including China, France, Germany, India, Japan, Luxembourg, and the United Kingdom. We are under, or may be subject to, audit or examination and additional assessments by the relevant authorities in respect of these particular jurisdictions primarily for 2011 and thereafter. We are currently disputing tax assessments in multiple jurisdictions, including with respect to the allocation and characterization of income. In September 2022, the Luxembourg tax authority (“LTA”) denied the tax basis of certain intangible assets that we distributed from Luxembourg to the U.S. in 2021. When we are assessed by the LTA, we will need to remit taxes related to this matter. We believe the LTA’s position is without merit, we intend to defend ourselves vigorously in this matter, and we expect to recoup taxes paid. The Indian tax authority (“ITA”) has asserted that tax applies to cloud services fees paid to Amazon in the U.S. We will need to remit taxes related to this matter until it is resolved, which payments could be significant in the aggregate. We believe the ITA’s position is without merit, we are defending our position vigorously, and we expect to recoup taxes paid. If this matter is adversely resolved, we could recognize significant additional tax expense, including for taxes previously paid. Note 8 — SEGMENT INFORMATION We have organized our operations into three segments: North America, International, and AWS. We allocate to segment results the operating expenses “Fulfillment,” “Technology and infrastructure,” “Sales and marketing,” and “General and administrative” based on usage, which is generally reflected in the segment in which the costs are incurred. The majority of technology costs recorded in “Technology and infrastructure” are incurred in the U.S. and are included in our North America 18 Table of Contents and AWS segments. The majority of infrastructure costs recorded in “Technology and infrastructure” are allocated to the AWS segment based on usage. There are no internal revenue transactions between our reportable segments. Our chief operating decision maker (“CODM”) is our President and Chief Executive Officer. Our CODM regularly reviews consolidated net sales, consolidated operating expenses, and consolidated operating income (loss) by segment. Amounts included in consolidated operating expenses include “Cost of sales,” “Fulfillment,” “Technology and infrastructure,” “Sales and marketing,” “General and administrative,” and “Other operating expense (income), net.” Our CODM manages our business primarily by reviewing consolidated results by segment on a quarterly basis, and using those results along with forecasts and other non-financial information in our annual budgeting process. North America The North America segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and advertising and subscription services through North America-focused online and physical stores. This segment includes export sales from these online stores. International The International segment primarily consists of amounts earned from retail sales of consumer products (including from sellers) and advertising and subscription services through internationally-focused online stores. This segment includes export sales from these internationally-focused online stores (including export sales from these online stores to customers in the U.S., Mexico, and Canada), but excludes export sales from our North America-focused online stores. AWS The AWS segment consists of amounts earned from global sales of compute, storage, database, and other services for start-ups, enterprises, government agencies, and academic institutions. Information on reportable segments and reconciliation to consolidated net income is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 North America Net sales $ 90,033 $ 100,068 $ 176,374 $ 192,955 Operating expenses 84,968 92,551 166,326 179,597 Operating income $ 5,065 $ 7,517 $ 10,048 $ 13,358 International Net sales $ 31,663 $ 36,761 $ 63,598 $ 70,274 Operating expenses 31,390 35,267 62,422 67,763 Operating income $ 273 $ 1,494 $ 1,176 $ 2,511 AWS Net sales $ 26,281 $ 30,873 $ 51,318 $ 60,140 Operating expenses 16,947 20,713 32,563 38,433 Operating income $ 9,334 $ 10,160 $ 18,755 $ 21,707 Consolidated Net sales $ 147,977 $ 167,702 $ 291,290 $ 323,369 Operating expenses 133,305 148,531 261,311 285,793 Operating income 14,672 19,171 29,979 37,576 Total non-operating income (expense) 573 1,686 ( 1,751 ) 4,960 Provision for income taxes ( 1,767 ) ( 2,678 ) ( 4,234 ) ( 7,231 ) Equity-method investment activity, net of tax 7 ( 15 ) ( 78 ) ( 14 ) Net income $ 13,485 $ 18,164 $ 23,916 $ 35,291 19 Table of Contents Net sales by groups of similar products and services, which also have similar economic characteristics, is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 Net Sales: Online stores (1) $ 55,392 $ 61,485 $ 110,062 $ 118,892 Physical stores (2) 5,206 5,595 10,408 11,128 Third-party seller services (3) 36,201 40,348 70,797 76,860 Advertising services (4) 12,771 15,694 24,595 29,615 Subscription services (5) 10,866 12,208 21,588 23,923 AWS 26,281 30,873 51,318 60,140 Other (6) 1,260 1,499 2,522 2,811 Consolidated $ 147,977 $ 167,702 $ 291,290 $ 323,369 ____________________________ (1) Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.” (2) Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.” (3) Includes commissions and any related fulfillment and shipping fees, and other third-party seller services. (4) Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising. (5) Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services. (6) Includes sales related to various other offerings (such as shipping services, healthcare services, and certain licensing and distribution of video content) and our co-branded credit card agreements. Total segment assets exclude corporate assets, such as cash and cash equivalents, marketable securities, other long-term investments, corporate facilities, goodwill and other acquired intangible assets, and tax assets. Technology infrastructure assets, which are included in property and equipment, net, net additions, and the depreciation and amortization expense on these assets, are allocated among the segments based on usage, with the majority allocated to the AWS segment. Usage of technology infrastructure assets by the North America and International segments, and the related allocation of total net additions, can fluctuate on a quarter-to-quarter basis, and is affected by seasonality, peak periods, new product or service offerings, and other factors. Total segment assets reconciled to consolidated amounts are as follows (in millions): December 31, 2024 June 30, 2025 North America (1) $ 210,120 $ 224,304 International (1) 69,487 78,096 AWS (2) 155,953 194,295 Corporate 189,334 185,475 Consolidated $ 624,894 $ 682,170 ___________________ (1) North America and International segment assets primarily consist of property and equipment, operating leases, inventory, accounts receivable, and digital video and music content. (2) AWS segment assets primarily consist of property and equipment, accounts receivable, and operating leases. 20 Table of Contents Property and equipment, net by segment is as follows (in millions): December 31, 2024 June 30, 2025 North America $ 103,041 $ 113,249 International 25,618 29,679 AWS 110,683 140,636 Corporate 13,323 14,052 Consolidated $ 252,665 $ 297,616 Total net additions to property and equipment include technology infrastructure assets and the effect of non-cash activity such as property and equipment acquired but not yet paid. Total net additions to property and equipment are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 North America (1) $ 4,929 $ 11,272 $ 10,080 $ 16,368 International (1) 1,128 2,531 2,237 4,037 AWS (2) 12,757 16,043 20,682 36,507 Corporate 380 915 752 1,298 Consolidated $ 19,194 $ 30,761 $ 33,751 $ 58,210 ___________________ (1) Includes property and equipment added under finance leases of $ 135 million and $ 21 million in Q2 2024 and Q2 2025, and $ 142 million and $ 75 million for the six months ended June 30, 2024 and 2025. (2) Includes property and equipment added under finance leases of $ 46 million and $ 916 million in Q2 2024 and Q2 2025, and $ 81 million and $ 916 million for the six months ended June 30, 2024 and 2025. Depreciation and amortization expense on property and equipment, including corporate property and equipment, are allocated to all segments based on usage. Total depreciation and amortization expense, by segment, is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2024 2025 2024 2025 North America $ 3,517 $ 3,742 $ 6,890 $ 7,272 International 1,049 1,180 2,103 2,316 AWS 3,078 4,844 5,917 9,234 Consolidated $ 7,644 $ 9,766 $ 14,910 $ 18,822 21 Table of Contents