Alphabet Inc. (Class A) (GOOGL) FY2025 10-K Review

Statements & commentary

Statements as filed on the left — every figure from the company's own XBRL filing, in millions of dollars. What management wrote on the right, quoted verbatim. Open any claim for its arithmetic. The gold number beside a statement line counts the claims resting on that line. ✓ matches · ◐ partly · ✗ contradicts or red flag · ◐ watch.

INCOME STATEMENTCASH FLOWBALANCE SHEETVARIANCE YoYBUSINESS QUALITYQUARTERLYOWNERSHIPEVERY FIGURE AS FILED · $M EXCEPT PER-SHARE

Income statement · $ millions	2025	2024	2023
Total revenues	402,836	350,018	307,394	2
· Google services	342,721	304,930	272,543
· Google cloud	58,705	43,229	33,088
· All other segments	1,537	1,648	1,527
Cost of revenue	162,535	146,306	133,332	1
Research and development	61,087	49,326	45,427
Selling, general and administrative	21,482	14,188	16,425
Total operating expenses	273,797	237,628	223,101
Operating income	129,039	112,390	84,293
Interest expense	—	—	308
Other income (expense), net	29,787	7,425	1,424
Income before income taxes	158,826	119,815	85,717
Income tax provision	26,656	19,697	11,922	1
— of which current	18,406	24,953	19,651	1
Net income attributable to common	132,170	100,118	73,795	2
Diluted earnings per share	$10.81	$8.04	$5.80
Weighted-average diluted shares	12,230	12,447	12,722	1

Cash flow · $ millions	2025	2024	2023
Net income incl. noncontrolling interests	132,170	100,118	73,795
Share-based compensation	24,953	22,785	22,460
Deferred income taxes	8,250	(5,256)	(7,729)
Change in receivables	8,779	5,891	7,833
Change in payables	907	359	664
Net cash provided by operating activities	164,713	125,299	101,746	4
Capital expenditure	91,447	52,535	32,251	2
Net cash used in investing activities	(120,291)	(45,536)	(27,063)
Dividends paid	10,049	7,363	0	1
Repurchases of common stock	45,709	62,222	61,504	1
Net cash used in financing activities	(37,388)	(79,733)	(72,093)
Cash and equivalents at end of period	30,708	23,466	24,048

Balance sheet · $ millions	2025	2024
Cash and cash equivalents	30,708	23,466
Short-term investments	96,135	72,191
Receivables, net	62,886	52,340	1
Inventories	2,439	—
Total current assets	206,038	163,711
Property, plant and equipment, net	—	171,036
Goodwill	33,380	31,885	1
Intangible assets, net	1,088	—
Total assets	595,281	450,256	1
Accounts payable	12,200	7,987
Current debt	1,996	999
Total current liabilities	102,745	89,122
Long-term debt	46,547	10,883
Total liabilities	180,016	125,172
Stockholders' equity	415,265	325,084
Total equity	415,265	325,084

Largest FY/FY moves · $ millions, ranked by \|Δ\|	FY2025	FY2024	Δ $	Δ %	Reading
Total assets · BS	595,281	450,256	+145,025	+32.2%	—
Stockholders' equity · BS	415,265	325,084	+90,181	+27.7%	—
Total equity · BS	415,265	325,084	+90,181	+27.7%	—
Net cash used in investing activities · CF	(120,291)	(45,536)	−74,755	-164.2%	◐ outsized
Total liabilities · BS	180,016	125,172	+54,844	+43.8%	—
Total revenues · IS	402,836	350,018	+52,818	+15.1%	—
Net cash used in financing activities · CF	(37,388)	(79,733)	+42,345	+53.1%	◐ outsized
Total current assets · BS	206,038	163,711	+42,327	+25.9%	—
Net cash provided by operating activities · CF	164,713	125,299	+39,414	+31.5%	—
Income before income taxes · IS	158,826	119,815	+39,011	+32.6%	—
Capital expenditure · CF	91,447	52,535	+38,912	+74.1%	◐ outsized
· Google services · IS	342,721	304,930	+37,791	+12.4%	—
Total operating expenses · IS	273,797	237,628	+36,169	+15.2%	—
Long-term debt · BS	46,547	10,883	+35,664	+327.7%	◐ outsized

Business quality — Buffett/Munger screen · deterministic · not part of the filing score	Value	Reading
Return on equity net income ÷ average of start- and end-of-year equity	35.7% sector median 16.6%	strong
Share count, year-end (year-end shares − prior year-end) ÷ prior year-end	-1.0% sector median +0.0%	shrinking
Debt to equity (current debt + long-term debt) ÷ year-end equity	0.12 sector median 0.71	low
FCF consistency, 5yr operating cash flow − capital expenditure, per year	positive 5 of 5	consistent
Margin stability pre-tax income ÷ revenue, swing across up to five years	pre-tax margin 39.4% sector median 15.9%	cyclical

Quarterly · as filed in 10-Q/10-K · $ millions	MAR 25	JUN 25	SEP 25	MAR 26	JUN 26
Total revenues	90,234	96,428	102,346	109,896	119,796
Cost of revenue	36,361	39,039	41,369	41,271	45,943
Research and development	13,556	13,808	15,151	17,032	18,219
Selling, general and administrative	3,539	5,209	7,393	4,291	6,461
Total operating expenses	59,628	65,157	71,118	70,200	79,026
Operating income	30,606	31,271	31,228	39,696	40,770
Interest expense	34	261	143	533	1,278
Other income (expense), net	11,183	2,662	12,759	37,716	97,983
Income before income taxes	41,789	33,933	43,987	77,412	138,753
Income tax provision	7,249	5,737	9,008	14,834	26,560
Net income attributable to common	34,540	28,196	34,979	62,578	112,107
Diluted earnings per share	$2.81	$2.31	$2.87	$5.11	$9.11
Weighted-average diluted shares	12,291	12,198	12,203	12,238	12,309
Net cash provided by operating activities	36,150	—	—	45,790	—

Largest QoQ moves · latest vs prior filed quarter	Prior	Latest	Δ $	Δ %
Income before income taxes	77,412	138,753	+61,341	+79.2%
Other income (expense), net	37,716	97,983	+60,267	+159.8%
Net income attributable to common	62,578	112,107	+49,529	+79.1%
Income tax provision	14,834	26,560	+11,726	+79.0%
Total revenues	109,896	119,796	+9,900	+9.0%
Net cash provided by operating activities	36,150	45,790	+9,640	+26.7%
Total operating expenses	70,200	79,026	+8,826	+12.6%
Cost of revenue	41,271	45,943	+4,672	+11.3%

Ownership — insiders & floatForm 4 + 10-K cover · open-market trades only	Value	Reading
Public float	$1,900,000M	10-K cover · as of 2025-06-30
Insider Form 4s, 90d	52 filings · 0 buys / 52 sells	net selling · −$19,515,013
· Gv 2019 Gp, L.L.C.	SELL $3,832,848	Form 4 filed 2026-07-29 · open market
· Gv 2019 Gp, L.L.C.	SELL $2,232,761	Form 4 filed 2026-07-29 · open market
· Gv 2019 Gp, L.L.C.	SELL $1,229,772	Form 4 filed 2026-07-17 · open market
· Gv 2019 Gp, L.L.C.	SELL $1,206,270	Form 4 filed 2026-07-27 · open market
· Gv 2019 Gp, L.L.C.	SELL $953,467	Form 4 filed 2026-07-23 · open market
Insider ownership %	—	needs the proxy statement — not read yet, never estimated
Institutional %	—	needs 13F aggregation — not read yet, never estimated

COMMENTARY4EARNINGS QUALITY7

revenue growth◐PARTLY

“Revenues were $402.8 billion, an increase of 15% year over year, primarily driven by an increase in Google Services revenues of $37.8 billion, or 12%, and an increase in Google Cloud revenues of $15.5 billion, or 36%.”

Total revenues $350.0B → $402.8B+52,818

Quoted $402.8 billionTotal revenues: filed $402.8B

Quoted 15%Total revenues: change +15.1%

2 of 6 quoted figures reconcile ($402.8 billion against total revenues; 15% against total revenues); $15.5 billion, $37.8 billion does not map to a filed line on this page — carried as partly supported.

1 LINES TRACED · ITEM 7 · EXECUTIVE OVERVIEW · P.32

cost of revenue✓MATCHES

“Cost of revenues was $162.5 billion, an increase of 11% ye ar over year, primarily driven by increases in TAC, content acquisition costs, and depreciation expense.”

Cost of revenue $146.3B → $162.5B+16,229

Quoted $162.5 billionCost of revenue: filed $162.5B

Quoted 11%Cost of revenue: change +11.1%

Every quoted figure reconciles to the filed lines: $162.5 billion against cost of revenue; 11% against cost of revenue.

1 LINES TRACED · ITEM 7 · EXECUTIVE OVERVIEW · P.32

operating cash flow✓MATCHES

“Operating cash flow was $164.7 billion for the year ended December 31, 2025.”

Net cash provided by operating activities $125.3B → $164.7B+39,414

Quoted $164.7 billionNet cash provided by operating activities: filed $164.7B

Every quoted figure reconciles to the filed lines: $164.7 billion against net cash provided by operating activities.

1 LINES TRACED · ITEM 7 · EXECUTIVE OVERVIEW · OTHER INFORMATION · P.32

capital expenditures✓MATCHES

“Capital expenditures, which primarily reflected investments in technical infrastructure, were $91.4 billion for the year ended December 31, 2025.”

Capital expenditure $52.5B → $91.4B+38,912

Quoted $91.4 billionCapital expenditure: filed $91.4B

Every quoted figure reconciles to the filed lines: $91.4 billion against capital expenditure.

1 LINES TRACED · ITEM 7 · EXECUTIVE OVERVIEW · OTHER INFORMATION · P.32

Stock compensation in cash flow◐WATCH

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Share-based compensation$24,953M

Operating cash flow$164,713M

Share $24,953M ÷ $164,713M15.1%

Share-based compensation is 15.1% of operating cash flow — carried as watch (15% threshold).

EARNINGS-QUALITY FLAG · 1 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Cash tax vs book charge◐WATCH

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Cash income taxes paid$21,526M

Total book tax charge$26,656M

Divergence ($21,526M − $26,656M) ÷ $26,656M-19.2%

Deferred tax asset $16,460M → $8,194M-8,266M

Cash taxes paid diverge from the total book charge by -19.2%. Carried as watch.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Receivables pace✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

DSO, prior year $52,340M ÷ $350,018M × 36554.6 days

DSO, current year $62,886M ÷ $402,836M × 36557.0 days

Change+2.4 days

Days sales outstanding moved +2.4 days — inside the ±7-day watch threshold.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Goodwill weight✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Goodwill$33,380M

Total assets$595,281M

Weight $33,380M ÷ $595,281M5.6%

Impairments, three years (newest first)none filed

Goodwill is 5.6% of assets (threshold 40%), no impairment in three years.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Cash conversion stability✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Operating cash flow, three years (newest first)$164,713M · $125,299M · $101,746M

Net income attributable to common, three years (newest first)$132,170M · $100,118M · $73,795M

OCF ÷ NI, three years (newest first)1.25× · 1.25× · 1.38×

Swing 1.38× − 1.25×0.13×

Cause verified by this pageno

OCF ÷ NI ran 1.25× · 1.25× · 1.38× across three years — swing 0.13×, inside the 1.00× threshold.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Capital returned vs free cash flow✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Capital returned ÷ FCF, three years (newest first)0.76× · 0.96× · 0.89×

Current year ($10,049M + $45,709M) ÷ ($164,713M − $91,447M)0.76×

Capital returned ran 0.76× of free cash flow (threshold 1.00×).

EARNINGS-QUALITY FLAG · 4 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Share-count artefact✓CLEAN

SILENT IN MD&ADisclosed in the statements; not discussed by management.

Weighted-average shares 12,447M → 12,230M-1.7%

Shares outstanding, year-end 12,211.0M → 12,088.0M-1.0%

EPS-growth vs NI-growth gap+2.3pp

No share-count artefact: weighted-average and year-end counts do not diverge in direction.

EARNINGS-QUALITY FLAG · 2 LINES TRACED · COMPUTED FROM THE FILED STATEMENTS

Five-year seriesEACH OPENS ITS OWN PAGE WITH DERIVATION AND HISTORY

Revenue →Net income →Operating cash flow →Free cash flow →Capital expenditure →Cash & equivalents →Total assets →Shareholders' equity →Total debt →Return on equity →Days sales outstanding →

Terms and acronyms used on this page

Income statement & cash flow

ImpairmentA write-down of an asset's carrying value. Non-cash, and it does not reverse. A large impairment in one year flatters the next year's comparison.

OCFOperating cash flow — net cash provided by operating activities, as reported.

FCFFree cash flow. Not a GAAP measure and not defined in this filing. Derived here as operating cash flow less additions to oil and gas property less leasehold acquisitions. The method is shown wherever the figure is used.

Balance sheet & market

Public floatThe market value of shares held by non-affiliates, disclosed on the 10-K cover at the prior 30 June. Converting it to a float percentage needs a share price on that date, which the filing does not contain.

Filing & document terms

10-KThe annual report filed with the SEC. Item 7 is management's discussion and analysis; Item 1A is risk factors; Item 8 and Item 15 carry the audited financial statements.

YoY · CAGRYear over year · compound annual growth rate.

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Not investment advice. DHI Signal publishes impersonal, rules-based research; no recommendation to buy or sell any security is made or implied. Every statement figure is transcribed from Alphabet Inc. (Class A)'s Form 10-K for FY2025 (accession 0001652044-26-000018), pulled from EDGAR XBRL. Derived measures are computed only from lines shown on this page and the arithmetic is displayed so it can be checked. GOOGL is not in the tracked book. Market posture attaches only when the dashboard feed carries the name; this page computes none of it.