Intuit(INTU) - 2025 Q4 - Annual Results

Executive Summary & Financial Highlights Full Year Fiscal 2025 Financial Highlights Intuit reported strong FY25 results, with total revenue up 16% to $18.8 billion and combined platform revenue up 19% to $14.9 billion - Total revenue grew 16% year-over-year to $18.8 billion[2] - Combined platform revenue increased 19% to $14.9 billion[2] Fiscal Year 2025 Full-year Financial Results (Dollars in millions, except EPS) | Metric | FY25 (GAAP) | FY24 (GAAP) | Change (GAAP) | FY25 (Non-GAAP) | FY24 (Non-GAAP) | Change (Non-GAAP) | | :----------------- | :---------- | :---------- | :------------ | :-------------- | :-------------- | :---------------- | | Revenue | $18,831 | $16,285 | 16% | $18,831 | $16,285 | 16% | | Operating Income | $4,923 | $3,630 | 36% | $7,572 | $6,402 | 18% | | Earnings Per Share | $13.67 | $10.43 | 31% | $20.15 | $16.94 | 19% | - Consumer Group revenue increased 10% to $4.9 billion, with TurboTax Live revenue growing 47% to $2.0 billion[7] - Credit Karma revenue grew 32% to $2.3 billion[7] Fourth Quarter Fiscal 2025 Financial Highlights Intuit's Q4 FY25 revenue grew 20% to $3.8 billion, with Global Business Solutions Group revenue up 18% and Credit Karma revenue rising 34% - Total revenue grew 20% to $3.8 billion in Q4 FY25[7] Fourth Quarter Fiscal Year 2025 Financial Results (Dollars in millions, except EPS) | Metric | Q4 FY25 (GAAP) | Q4 FY24 (GAAP) | Change (GAAP) | Q4 FY25 (Non-GAAP) | Q4 FY24 (Non-GAAP) | Change (Non-GAAP) | | :----------------------- | :------------- | :------------- | :------------ | :----------------- | :----------------- | :---------------- | | Revenue | $3,831 | $3,184 | 20% | $3,831 | $3,184 | 20% | | Operating Income (Loss) | $339 | $(151) | NM | $1,016 | $730 | 39% | | Earnings (Loss) Per Share | $1.35 | $(0.07) | NM | $2.75 | $1.99 | 38% | - Global Business Solutions Group revenue increased 18% to $3.0 billion, with Online Ecosystem revenue growing 21% to $2.2 billion[7] - Credit Karma revenue grew 34% to $649 million, driven by personal loans, credit cards, and auto insurance[7][15] Management Commentary Intuit's CEO highlighted exceptional FY25 success driven by AI agents, while the CFO emphasized strong business outcomes, accelerated growth, and significant margin expansion - CEO Sasan Goodarzi noted 20% Q4 growth and 16% full-year growth, crediting AI agents and AI-enabled human experts for powering success[2] - CFO Sandeep Aujla highlighted outstanding execution across the platform, driving breakthrough adoption in assisted tax, introducing transformative AI agents, and building mid-market go-to-market capabilities, all while expanding margins[11] Business Segment Performance Global Business Solutions Group The Global Business Solutions Group showed robust growth, with revenue up 18% quarterly and 16% annually, driven by strong Online Ecosystem performance - Global Business Solutions Group revenue grew 18% for the quarter and 16% for the year, reaching $11.1 billion[12] - Online Ecosystem revenue grew 21% for the quarter and 20% for the year, reaching $8.3 billion[12] - QuickBooks Online Accounting revenue grew 23% for the quarter and 22% for the year, driven by higher effective prices, customer growth, and mix shift[12] - Online Services revenue grew 19% for both the quarter and the year, primarily due to growth in money and payroll. Excluding Mailchimp, Online Services revenue grew 29%[12] - Total international online revenue grew 9% for both the quarter and the year on a constant currency basis[12] Consumer and ProTax Groups Consumer Group annual revenue increased 10%, significantly boosted by TurboTax Live's 47% growth, despite a slight decline in total TurboTax units - Consumer Group revenue grew 10% for the year to $4.9 billion[13] - TurboTax Live revenue grew 47% for the year, accounting for 41% of total Consumer Group revenue, with TurboTax Live customers increasing by 24%[16] TurboTax Federal Unit Data (Units in millions) | Metric | Season through July 31, 2025 | Season through July 31, 2024 | Change Year-Over-Year | | :---------------------- | :--------------------------- | :--------------------------- | :-------------------- | | Desktop Units | 4.3 | 4.6 | (4)% | | Online Units | 34.9 | 35.4 | (1)% | | Total U.S. TurboTax Units | 39.2 | 39.9 | (2)% | - TurboTax Online paying units grew 6% due to share gains from higher ARPR filers, despite a 1% decline in total TurboTax Online units and a 2% decline in total TurboTax units[16] - ProTax Group revenue grew 4% for the year to $621 million[14] Credit Karma Credit Karma experienced substantial growth, with annual revenue up 32% to $2.3 billion and quarterly revenue up 34% to $649 million - Credit Karma revenue grew 32% to $2.3 billion for the year[15] - Credit Karma revenue grew 34% for the quarter to $649 million, driven by strength in personal loans, credit cards, and auto insurance[15] Capital Allocation & Strategic Initiatives Capital Allocation Summary Intuit maintained a strong financial position with $4.6 billion in cash, repurchasing $2.8 billion in stock and increasing its quarterly dividend by 15% - Total cash and investments balance was approximately $4.6 billion as of July 31, 2025, with total debt of $6.0 billion[17] - Repurchased $2.8 billion of stock during fiscal year 2025. The Board approved a new $3.2 billion repurchase authorization, bringing the total authorization to $5.3 billion[17] - Board approved a quarterly dividend of $1.20 per share, payable on October 17, 2025, representing a 15% increase year-over-year[18] One Consumer Platform Effective August 1, 2025, Intuit combined its Consumer, Credit Karma, and ProTax businesses into a single Consumer business, aligning with its one consumer platform vision - Effective August 1, 2025, Intuit combined the Consumer, Credit Karma, and ProTax businesses into a single Consumer business[19] - This new organization will be reflected in fiscal 2026 segment reporting, consistent with the company's vision to deliver one consumer platform[19] Forward-Looking Guidance Fiscal Year 2026 Full Year Guidance Intuit projects FY26 revenue growth of 12-13% and continued operating margin expansion, with strong growth anticipated across all segments Fiscal Year 2026 Full Year Guidance | Metric | GAAP Range of Estimate (From) | GAAP Range of Estimate (To) | Non-GAAP Range of Estimate (From) | Non-GAAP Range of Estimate (To) | Growth (Approx.) | | :----------------------- | :---------------------------- | :-------------------------- | :-------------------------------- | :------------------------------ | :--------------- | | Revenue | $20,997 million | $21,186 million | $20,997 million | $21,186 million | 12-13% | | Operating Income | $5,782 million | $5,859 million | $8,611 million | $8,688 million | 17-19% (GAAP), 14-15% (Non-GAAP) | | Diluted Earnings Per Share | $15.49 | $15.69 | $22.98 | $23.18 | 13-15% (GAAP), 14-15% (Non-GAAP) | - Global Business Solutions Group revenue growth is expected to be 14-15% (15.5-16.5% excluding Mailchimp)[20] - Consumer segment revenue growth is projected at 8-9%, including TurboTax growth of 8%, Credit Karma growth of 10-13%, and ProTax growth of 2-3%[20] First Quarter Fiscal Year 2026 Guidance For Q1 FY26, Intuit anticipates revenue growth of approximately 14-15%, with GAAP EPS between $1.19 and $1.26, and non-GAAP diluted EPS between $3.05 and $3.12 - Revenue growth of approximately 14-15% is expected for Q1 FY26[20] - GAAP earnings per share are projected to be $1.19 to $1.26[20] - Non-GAAP diluted earnings per share are expected to be $3.05 to $3.12[21] Company Information & Disclosures About Intuit Intuit is a global financial technology platform serving 100 million customers with products like TurboTax, QuickBooks, and Mailchimp, aiming to power prosperity - Intuit is a global financial technology platform with approximately 100 million customers worldwide[25] - Key products include TurboTax, Credit Karma, QuickBooks, and Mailchimp[25] - The company's mission is to power prosperity for people and communities through innovative solutions[25] Conference Call & Investor Events Intuit held a conference call on August 21, 2025, to discuss financial results and announced its annual Investor Day for September 18, 2025 - A conference call discussing financial results was held on August 21, 2025, with live webcast and replay available[22][23] - Intuit will host its annual Investor Day on September 18, 2025, at its Mountain View headquarters, featuring presentations from the CEO, CFO, and other leaders[24] About Non-GAAP Financial Measures This section explains Intuit's use of non-GAAP financial measures, excluding items like amortization, restructuring, and share-based compensation for a clearer view of ongoing operating results - Non-GAAP financial measures (operating income, net income, diluted EPS) are used to provide supplemental information, excluding items not considered part of ongoing operating results[26][61][64] - Excluded items include amortization of acquired technology and other intangible assets, restructuring charges, share-based compensation expense, and gains/losses on executive deferred compensation plan liabilities and assets[64][66][67][68][69][72][73][74] - A long-term non-GAAP tax rate of 24% is used for fiscal 2025 and 2026, which eliminates effects of non-recurring and period-specific items[75] Cautions About Forward-Looking Statements Forward-looking statements are subject to risks and uncertainties, including competition, governmental encroachment, AI development, cybersecurity, and macroeconomic conditions, which could cause actual results to differ materially - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations[28] - Key risk factors include the ability to compete, potential governmental encroachment in the tax business, development and deployment of AI, adaptation to technological change, reliance on intellectual property, cybersecurity incidents, and global economic conditions[28][29] - More detailed risks are outlined in the company's Form 10-K for fiscal 2024 and other SEC filings[30] Financial Statements & Reconciliations GAAP Consolidated Statements of Operations The GAAP Consolidated Statements of Operations detail Intuit's revenue, costs, and profitability for FY25, with full-year net income at $3,869 million, up from $2,963 million in FY24 GAAP Consolidated Statements of Operations (In millions, except per share amounts) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Twelve Months Ended July 31, 2025 | Twelve Months Ended July 31, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | Total net revenue | $3,831 | $3,184 | $18,831 | $16,285 | | Total costs and expenses | $3,492 | $3,335 | $13,908 | $12,655 | | Operating income (loss) | $339 | $(151) | $4,923 | $3,630 | | Income (loss) before income taxes | $366 | $(140) | $4,834 | $3,550 | | Net income (loss) | $381 | $(20) | $3,869 | $2,963 | | Diluted net income (loss) per share | $1.35 | $(0.07) | $13.67 | $10.43 | - Full-year service revenue increased to $16,400 million in FY25 from $13,861 million in FY24[32] Notes to GAAP Statements of Operations Notes detail share-based compensation expenses and explain effective tax rates for FY25 and FY24, highlighting tax benefits and recent tax law changes Total Share-Based Compensation Expense (In millions) | Category | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Twelve Months Ended July 31, 2025 | Twelve Months Ended July 31, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | Cost of revenue | $101 | $102 | $423 | $402 | | Selling and marketing | $137 | $137 | $541 | $506 | | Research and development | $159 | $161 | $629 | $639 | | General and administrative | $93 | $94 | $375 | $368 | | Restructuring | $— | $25 | $— | $25 | | Total | $490 | $519 | $1,968 | $1,940 | - The effective tax rate for the twelve months ended July 31, 2025, was approximately 20%, or 24% excluding certain tax benefits primarily related to share-based compensation[35] - The One Big Beautiful Bill Act (OBBBA) enacted on July 4, 2025, did not have a significant impact on consolidated financial statements for fiscal 2025[37] Reconciliation of Non-GAAP Financial Measures (FY25) This section reconciles GAAP to non-GAAP financial measures for FY25, detailing adjustments for amortization, restructuring, and share-based compensation to derive non-GAAP operating income, net income, and diluted EPS Reconciliation of Non-GAAP Financial Measures for Fiscal 2025 (In millions, except per share amounts) | Metric | Q1 FY25 (GAAP) | Q4 FY25 (GAAP) | Full Year FY25 (GAAP) | Q1 FY25 (Non-GAAP) | Q4 FY25 (Non-GAAP) | Full Year FY25 (Non-GAAP) | | :-------------------------- | :------------- | :------------- | :-------------------- | :----------------- | :----------------- | :------------------------ | | Operating income (loss) | $271 | $339 | $4,923 | $953 | $1,016 | $7,572 |\ | Net income (loss) | $197 | $381 | $3,869 | $709 | $776 | $5,703 |\ | Diluted net income (loss) per share | $0.70 | $1.35 | $13.67 | $2.50 | $2.75 | $20.15 | - Key adjustments for non-GAAP operating income include amortization of acquired technology ($156 million for FY25), amortization of other acquired intangible assets ($481 million for FY25), and share-based compensation expense ($1,968 million for FY25)[41] - Beginning in Q1 FY25, gains and losses on executive deferred compensation plan liabilities and assets are excluded from non-GAAP measures[41] Reconciliation of Non-GAAP Financial Measures (FY24) This section reconciles GAAP to non-GAAP financial measures for FY24, detailing adjustments for amortization, restructuring, and share-based compensation to derive non-GAAP operating income, net income, and diluted EPS Reconciliation of Non-GAAP Financial Measures for Fiscal 2024 (In millions, except per share amounts) | Metric | Q1 FY24 (GAAP) | Q4 FY24 (GAAP) | Full Year FY24 (GAAP) | Q1 FY24 (Non-GAAP) | Q4 FY24 (Non-GAAP) | Full Year FY24 (Non-GAAP) | | :-------------------------- | :------------- | :------------- | :-------------------- | :----------------- | :----------------- | :------------------------ | | Operating income (loss) | $307 | $(151) | $3,630 | $960 | $730 | $6,402 |\ | Net income (loss) | $241 | $(20) | $2,963 | $698 | $563 | $4,811 |\ | Diluted net income (loss) per share | $0.85 | $(0.07) | $10.43 | $2.47 | $1.99 | $16.94 | - Full-year FY24 non-GAAP operating income was $6,402 million, with adjustments including $146 million for acquired technology amortization and $1,915 million for share-based compensation expense[45] - Restructuring charges for Q4 and full year FY24 included $223 million, with $25 million attributed to share-based compensation expense[45] Condensed Consolidated Balance Sheets The Condensed Consolidated Balance Sheets show Intuit's financial position as of July 31, 2025, with total assets increasing to $36,958 million, driven by growth in current assets Condensed Consolidated Balance Sheets (In millions) | Asset/Liability Category | July 31, 2025 | July 31, 2024 | | :-------------------------------- | :------------ | :------------ | | Total current assets | $14,107 | $9,678 | | Funds receivable and amounts held for customers | $7,076 | $3,921 | | Goodwill | $13,980 | $13,844 | | Total assets | $36,958 | $32,132 | | Total current liabilities | $10,370 | $7,491 | | Funds payable and amounts due to customers | $7,076 | $3,921 | | Total liabilities | $17,248 | $13,696 | | Stockholders' equity | $19,710 | $18,436 | | Total liabilities and stockholders' equity | $36,958 | $32,132 | - Cash and cash equivalents decreased from $3,609 million in FY24 to $2,884 million in FY25, while investments significantly increased from $465 million to $1,668 million[49] - Long-term debt increased to $5,973 million in FY25 from $5,539 million in FY24[49] Condensed Consolidated Statements of Cash Flows The Condensed Consolidated Statements of Cash Flows show net cash from operating activities significantly increased to $6,207 million for FY25, while investing and financing activities also saw substantial changes Condensed Consolidated Statements of Cash Flows (In millions) | Cash Flow Category | Twelve Months Ended July 31, 2025 | Twelve Months Ended July 31, 2024 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $6,207 | $4,884 | | Net cash used in investing activities | $(2,318) | $(227) | | Net cash used in financing activities | $(1,510) | $(397) | | Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | $2,382 | $4,247 | | Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period | $9,481 | $7,099 | - Operating activities were positively impacted by net income of $3,869 million and share-based compensation expense of $1,968 million[51] - Investing activities included significant originations and purchases of notes receivable held for investment ($3,992 million) and purchases of corporate and customer fund investments ($2,363 million)[51] - Financing activities included $2,772 million in cash paid for treasury stock purchases and $1,189 million in dividends paid[51] Reconciliation of Forward-Looking Guidance (Non-GAAP) This table reconciles Intuit's forward-looking GAAP guidance to projected non-GAAP figures for Q1 and full FY26, detailing adjustments for share-based compensation and amortization Reconciliation of Forward-Looking Guidance for Non-GAAP Financial Measures (In millions, except per share amounts) | Metric | Q1 FY26 (GAAP Range) | Q1 FY26 (Non-GAAP Range) | FY26 (GAAP Range) | FY26 (Non-GAAP Range) | | :-------------------------- | :------------------- | :----------------------- | :---------------- | :-------------------- | | Revenue | $3,744 - $3,776 | $3,744 - $3,776 | $20,997 - $21,186 | $20,997 - $21,186 | | Operating income | $440 - $460 | $1,159 - $1,179 | $5,782 - $5,859 | $8,611 - $8,688 | | Diluted earnings per share | $1.19 - $1.26 | $3.05 - $3.12 | $15.49 - $15.69 | $22.98 - $23.18 | - Estimated adjustments for Q1 FY26 non-GAAP operating income include approximately $554 million for share-based compensation expense and $165 million for amortization of acquired intangibles[57] - Estimated adjustments for full FY26 non-GAAP operating income include approximately $2.2 billion for share-based compensation expense and $659 million for amortization of acquired intangibles[58]