Filing Flows › Watsco (WSO) › Q2 2025
Watsco (WSO) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 8, 2025
Watsco (WSO) reported revenue of $2.1B for the second quarter 2025 (Q2 2025), -4% from a year earlier and +35% from the quarter before. Operating margin was 13.2%, net earnings $184M (8.9% of revenue).
Watsco, Q2 2025: revenue $2.1B (-4% year over year), operating margin 13.2%, net earnings $184M, operating cash flow −$7.4M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.1B | +35% | -4% |
| Gross profit | $603M | +40% | +4% |
| Operating profit | $272M | +142% | +1% |
| Net earnings | $184M | +129% | +1% |
| Operating cash flow | −$7.4M | — | — |
What changed
Revenue was $2.1B in Q2 2025, down 4% year over year and up 35% from the previous quarter.
Gross margin was 29.3%, up 2.2 points from a year earlier. Operating profit was $0.27B, a 13.2% margin (up 0.6 points year over year). Operating expenses grew 7% against a revenue fall of 4%. Net earnings were $0.18B, up 1% year over year. The effective tax rate was 20.9%.
Operating cash flow was −$0.01B. Non-cash charges added back $0.01B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items used $0.24B. Capital expenditures of $0.01B exceeded it, leaving free cash flow of −$0.01B.
Questions
What was Watsco's revenue in the second quarter 2025?
Watsco (WSO) reported revenue of $2.1B for the second quarter 2025 (Q2 2025), -4% from a year earlier and +35% from the quarter before.
Was Watsco profitable in the second quarter 2025?
Operating profit was $272M (13.2% of revenue) and net earnings $184M.
Source: Watsco 10-Q on SEC EDGAR.