Filing Flows › Watsco (WSO) › Q3 2025
Watsco (WSO) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 7, 2025
Watsco (WSO) reported revenue of $2.1B for the third quarter 2025 (Q3 2025), -4% from a year earlier and +0.2% from the quarter before. Operating margin was 11.4%, net earnings $162M (7.8% of revenue).
Watsco, Q3 2025: revenue $2.1B (-4% year over year), operating margin 11.4%, net earnings $162M, operating cash flow $355M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.1B | +0.2% | -4% |
| Gross profit | $569M | -6% | +0.5% |
| Operating profit | $235M | -14% | -6% |
| Net earnings | $162M | -12% | -6% |
| Operating cash flow | $355M | — | +52% |
| Free cash flow | $346M | — | +55% |
What changed
Revenue was $2.1B in Q3 2025, down 4% year over year and roughly flat from the previous quarter.
Gross margin was 27.5%, up 1.3 points from a year earlier. Operating profit was $0.23B, a 11.4% margin (down 0.2 points year over year). Operating expenses grew 6% against a revenue fall of 4%. Net earnings were $0.16B, down 6% year over year. The effective tax rate was 20.7%.
Operating cash flow was $0.35B (up 52% year over year), 188% of net income including minority interests. Non-cash charges added back $0.01B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items added $0.15B. Capital expenditures of $0.01B left free cash flow of $0.35B.
Questions
What was Watsco's revenue in the third quarter 2025?
Watsco (WSO) reported revenue of $2.1B for the third quarter 2025 (Q3 2025), -4% from a year earlier and +0.2% from the quarter before.
Was Watsco profitable in the third quarter 2025?
Operating profit was $235M (11.4% of revenue) and net earnings $162M.
Source: Watsco 10-Q on SEC EDGAR.