01—Abstract
Summary
Summary of the 10-Q filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Keurig Dr Pepper Inc. reported second-quarter 2025 net sales of $4,163 milliona, up 6.1% from $3,922 million in the second quarter of 2024, and net income of $547 million, up 6.2% from $515 million.
Diluted EPS was $0.40b versus $0.38. Income from operations rose 4.3% to $898 million, and interest expense, net fell 11.8% to $180 million, driven mainly by a favorable change in unrealized mark-to-market activity. For the first six months of 2025, net sales were $7,798 million (up 5.5%) and net income was $1,064 million (up 9.8%), with diluted EPS of $0.78 versus $0.70.
The U.S. Refreshment Beverages segment drove growth, with net sales up 10.5% in the quarter, aided by the acquisition of GHOST, while U.S. Coffee net sales were down 0.2% and International down 1.8%. K-Cup pod volume fell 2.6% and appliance volume fell 20.1% in the quarter. Balance sheet activity included a $2 billionc senior notes issuance on May 5, 2025, with proceeds used to repay commercial paper, and the termination of the Term Loan Agreement on May 7, 2025.
KDP entered a new $4 billiond revolving credit agreement maturing March 31, 2030, with none drawn at June 30, 2025. Total assets were $54,368 million and total stockholders' equity was $24,985 million. Inventories rose to $1,741 million from $1,299 million at year-end 2024.
Net cash provided by operating activities was $640 million for the first six months of 2025, compared with $742 million a year earlier, and no shares were repurchased in the first six months of 2025, leaving $1,810 million available under the repurchase authorization. The filing also discloses the Dyla acquisition, completed June 2, 2025 for aggregate consideration of $98 million, and the GHOST Transactions, under which KDP holds 60% of GHOST and must buy the remaining 40% in 2028. The Multidistrict Antitrust Litigation over Keurig single-serve products claims more than $5 billion in damages; KDP has not accrued for a loss contingency and says it cannot predict the outcome.
02—Key points
Key Highlights
- Second-quarter 2025 net sales rose 6.1% to $4,163 million, and net income rose 6.2% to $547 million, with diluted EPS of $0.40 versus $0.38.
- U.S. Refreshment Beverages net sales rose 10.5% to $2,660 million in the quarter, led by volume/mix growth including GHOST and higher net price realization.
- U.S. Coffee net sales declined 0.2% to $948 million, and appliance volume fell 22.6% in the quarter, reflecting retailer inventory management.
- Interest expense, net decreased 11.8% to $180 million in the quarter, primarily due to favorable unrealized mark-to-market activity.
- KDP issued $2 billion of senior notes on May 5, 2025 and terminated its Term Loan Agreement on May 7, 2025, while entering a new $4 billion revolving credit agreement maturing March 31, 2030 that remained undrawn at quarter-end.
- Inventories increased to $1,741 million from $1,299 million at December 31, 2024, and operating cash flow for the first six months was $640 million versus $742 million a year earlier.
- KDP completed the Dyla acquisition on June 2, 2025 for aggregate consideration of $98 million, and no shares were repurchased in the first six months of 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Keurig Dr Pepper kept $0.13.
- Revenue$4.16B100.0%
- Cost of revenue−$1.91B45.8%
- Gross profit$2.25B54.2%
- Operating costs−$1.36B32.6%
- Operating income$898.0M21.6%
- Interest, other & tax−$351.0M8.4%
- Net income$547.0M13.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 24, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $4.16B$3.92B | +6.1% |
| Cost of Revenue | $1.91B$1.75B | +9.0% |
| Gross Profit | $2.25B$2.17B | +3.8% |
| SG&A Expenses | $1.36B$1.29B | +4.7% |
| Operating Income | $898.00M$861.00M | +4.3% |
| Net Income | $547.00M$515.00M | +6.2% |
| EPS (Basic) | $0.40$0.38 | +5.3% |
| EPS (Diluted) | $0.40$0.38 | +5.3% |
| Shares Outstanding (Basic) | 1.36B1.36B | +0.2% |
| Shares Outstanding (Diluted) | 1.36B1.36B | +0.1% |
05—Questions
Frequently Asked Questions
How did Keurig Dr Pepper perform in the second quarter of 2025?
Net sales rose 6.1% to $4,163 million and income from operations rose 4.3% to $898 million. Net income increased 6.2% to $547 million, and diluted EPS was $0.40 compared with $0.38 a year earlier. Gross margin declined to 54.2% from 55.4%.
Which segment drove growth, and which segments declined?
U.S. Refreshment Beverages drove growth, with net sales up 10.5% to $2,660 million on volume/mix growth (including GHOST) and higher net price realization. U.S. Coffee net sales decreased 0.2% to $948 million, and International net sales decreased 1.8% to $555 million, reflecting unfavorable FX translation.
How did the company's debt and liquidity change?
Total debt on the balance sheet rose, with long-term obligations at $13,920 million and short-term borrowings and current portion at $1,976 million. KDP issued $2 billion of notes in May 2025 to repay commercial paper, terminated its Term Loan Agreement, and entered a $4 billion revolving credit agreement that was undrawn at June 30, 2025. The company stated it was in compliance with its debt covenants.
What is the status of the Multidistrict Antitrust Litigation?
The plaintiffs collectively claim more than $5 billion in monetary damages. Keurig strongly disputes the merits and the damages calculation, and summary judgment motions that would end the cases entirely have been fully briefed. KDP has not accrued for a loss contingency and says it is unable to predict the outcome.
What did the company do with its capital allocation in the first half of 2025?
KDP paid cash dividends of $625 million and did not repurchase any common stock during the first six months of 2025, leaving $1,810 million available under its authorization that expires December 31, 2025. It also spent $111 million on acquisitions of businesses, net of cash acquired, including Dyla, and $226 million on purchases of property, plant, and equipment.
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