Alphabet : Earnings slides for Q2 2025

Q2 2025 Earnings

July 23, 2025

Note About Forward-Looking Statements and Non-GAAP Financial Measures

This presentation may contain forward-looking statements regarding our business, operations, and financial performance. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Forms 10-K and 10-Q, including the risk factors. We undertake no obligation to update any forward-looking statement, except as required by law. Given these risk and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements.

We present both GAAP and non-GAAP financial measures in this presentation. A reconciliation of non-GAAP to GAAP measures is included in this presentation and in the most recent earnings press release, which is distributed and available to the public through our Investor Relations website located at abc.xyz/investor.

Alphabet Income Statement

in Millions, except Percentages and EPS; unaudited

Q2'24 Q2'25				Y/Y
Revenues	$84,742	$96,428		14% 10% 16% 5% 65% 14% 14% 2013% 23% 46% 19% 22%
Costs and Expenses:
Cost of Revenues	35,507	39,039
Research and Development	11,860	13,808
Sales and Marketing	6,792	7,101
General and Administrative	3,158	5,209
Total Costs and Expenses	57,317	65,157
Income from operations	27,425	31,271
Other income (expense), net	126	2,662
Income before income taxes	27,551	33,933
Provision for income taxes	3,932	5,737
Net income	$23,619	$28,196
Diluted EPS	$1.89	$2.31

Alphabet Revenues and Operating Income

Revenues ($MM) Operating Income ($MM)

in Millions, except Percentages; unaudited

$100,000		$96,428
$90,000
	$84,742
$80,000
$70,000
$60,000
$50,000
	Q2'24	Q2'25
Y/Y Growth	+14%	+14%

$40,000
		$31,271
$30,000	$27,425
$20,000
$10,000
$0
	Q2'24	Q2'25
Operating Margin	32.4%	32.4%

Alphabet Cost ofi Revenues and Operating Expenses

Research & Development

Sales & Marketing

General & Administrative

$40,000

$30,000

$26,118

$21,810

$20,000

$10,000

$0

Q2'24

Q2'25

+20%

+5%

Y/Y Growth

$11,860

$13,808

$6,792

$7,101

$3,158

$5,209

Total TAC

Other Cost ofi Revenues

$40,000

$39,039

$35,507

$30,000

$20,000

$10,000

$0

Q2'24

Q2'25

+10%

+11%

Y/Y Growth

$13,387

$14,705

$22,120

$24,334

Cost of Revenues ($MM) Operating Expenses ($MM)

in Millions, except Percentages; unaudited

Google Services Revenues and Operating Income

Google Search & Other

YouTube Ads

Google Network

Subscriptions, Platforms & Devices

$90,000

$82,543

$73,928

$11,203

+20% Y/Y

$70,000

$9,312

$7,354

-1% Y/Y

$7,444

$9,796

+13% Y/Y

$50,000

$8,663

$54,190

+12% Y/Y

$48,509

$30,000

Q2'24

Q2'25

+12%

+12%

Y/Y Growth

Revenues ($MM) Operating Income ($MM)

in Millions, except Percentages; unaudited

$40,000
		$33,063
	$29,674
$30,000
$20,000
$10,000
	Q2'24	Q2'25
Operating Margin	40.1%	40.1%

Google Cloud Revenues and Operating Income

Revenues ($MM) Operating Income ($MM)

in Millions, except Percentages; unaudited

$14,000		$13,624
$12,000
	$10,347
$10,000
$8,000
	Q2'24	Q2'25
Y/Y Growth	+29%	+32%

$3,000		$2,826
$2,000
	$1,172
$1,000
$0
	Q2'24	Q2'25
Operating Margin	11.3%	20.7%

Alphabet Capital Expenditures

Capital Expenditures ($MM)

in Millions, except Percentages; unaudited

$25,000
					$22,446
$20,000				$17,197
			$14,276
$15,000	$13,186	$13,061
$10,000
$5,000
$0
	Q2'24	Q3'24	Q4'24	Q1'25	Q2'25
Y/Y Growth	+91%	+62%	+30%	+43%	+70%

Trailing Twelve Months Free Cash Flow*

in Millions, except Percentages; unaudited

	Q2'24	Q3'24	Q4'24	Q1'25	Q2'25		Q2'25 Y/Y
Net cash provided by operating activities	26,640	30,698	39,113	36,150	27,747		4%
Purchases of property and equipment	(13,186)	(13,061)	(14,276)	(17,197)	(22,446)		70%
Free Cash Flow	$13,454	$17,637	$24,837	$18,953	$5,301		(61)%
Trailing Twelve Months Free Cash Flow	$60,787	$55,823	$72,764	$74,881	$66,728		10%

*Non-GAAP measure. See fiollowing slide fior reconciliation ofi GAAP to Non-GAAP measures

Reconciliation firom GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow

We provide non-GAAP free cash flow for the current quarter and trailing twelve months ("TTM") because it is a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can be used for strategic opportunities, including investing in our business and acquisitions, and to strengthen our balance sheet.

• Free cash flow: We define free cash flow as net cash provided by operating activities less capital expenditures.

• TTM free cash flow: We define trailing twelve months free cash flow as net cash provided by operating activities less capital expenditures for the most recent twelve consecutive months.

Reconciliation ofi GAAP to Non-GAAP Financial Infiormation
in millions; unaudited	Q3'23	Q4'23	Q1'24	Q2'24	Q3'24	Q4'24	Q1'25	Q2'25
Net cash provided from operating activities	30,656	18,915	28,848	26,640	30,698	39,113	36,150	27,747
less: purchases of property and equipment	(8,055)	(11,019)	(12,012)	(13,186)	(13,061)	(14,276)	(17,197)	(22,446)
Free Cash Flow	22,601	7,896	16,836	13,454	17,637	24,837	18,953	5,301
Net cash provided from operating activities - TTM				105,059	105,101	125,299	132,601	133,708
less: purchases of property and equipment - TTM				(44,272)	(49,278)	(52,535)	(57,720)	(66,980)
Free Cash Flow - TTM				60,787	55,823	72,764	74,881	66,728

*TTM = Trailing Twelve Months