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Amazon.com Announces Third Quarter Results

businesswire.com

SEATTLE--( BUSINESS WIRE)--Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its third quarter ended September 30, 2025.

“We continue to see strong momentum and growth across Amazon as AI drives meaningful improvements in every corner of our business,” said Andy Jassy, President and CEO, Amazon. “AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY. We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity – adding more than 3.8 gigawatts in the past 12 months. In Stores, we continue to realize the benefits of innovating in our fulfillment network, and we’re on track to deliver to Prime members at the fastest speeds ever again this year, expand same-day delivery of perishable groceries to over 2,300 communities by end of year, and double the number of rural communities with access to Amazon’s Same-Day and Next-Day Delivery.”

Some other highlights since the company’s last earnings announcement include that Amazon:

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of October 30, 2025, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, tariff and trade policies, and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below.

Fourth Quarter 2025 Guidance

Conference Call Information

A conference call will be webcast live today at 2:00 p.m. PT/5:00 p.m. ET, and will be available for at least three months at amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

Forward-Looking Statements

These forward-looking statements are inherently difficult to predict. Actual results and outcomes could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, security incidents, system interruptions, government regulation and taxation, and fraud. In addition, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Additional Information

Our investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

AMAZON.COM, INC.

Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

Twelve Months Ended

September 30,

2024

2025

2024

2025

2024

2025

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD

$

71,673

$

61,453

$

73,890

$

82,312

$

50,081

$

78,677

OPERATING ACTIVITIES:

Net income

15,328

21,187

39,244

56,478

49,868

76,482

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other

13,442

16,796

37,164

46,285

50,984

61,916

Stock-based compensation

5,333

4,847

17,016

15,070

23,335

20,065

Non-operating expense (income), net

(141

)

(10,112

)

2,498

(14,187

)

2,159

(14,673

)

Deferred income taxes

(1,317

)

10,130

(3,040

)

10,648

(4,504

)

9,040

Changes in operating assets and liabilities:

Inventories

(1,509

)

(827

)

(2,818

)

(6,103

)

(175

)

(5,169

)

Accounts receivable, net and other

(701

)

(1,977

)

774

(1,855

)

(6,673

)

(5,878

)

Other assets

(4,537

)

(4,039

)

(10,293

)

(10,412

)

(13,095

)

(14,602

)

Accounts payable

(477

)

2,151

(5,754

)

166

5,134

8,892

Accrued expenses and other

129

(1,999

)

(6,946

)

(11,012

)

(352

)

(6,970

)

Unearned revenue

421

(632

)

2,396

(23

)

6,025

1,588

Net cash provided by (used in) operating activities

25,971

35,525

70,241

85,055

112,706

130,691

INVESTING ACTIVITIES:

Purchases of property and equipment

(22,620

)

(35,095

)

(55,165

)

(92,297

)

(69,753

)

(120,131

)

Proceeds from property and equipment sales and incentives

1,342

867

3,559

2,446

4,794

4,228

Acquisitions, net of cash acquired, non-marketable investments, and other, net

(622

)

(786

)

(4,547

)

(2,438

)

(4,928

)

(4,973

)

Sales and maturities of marketable securities

8,069

16,367

12,726

35,545

14,294

39,222

Purchases of marketable securities

(3,068

)

(7,426

)

(13,472

)

(38,556

)

(13,907

)

(51,089

)

Net cash provided by (used in) investing activities

(16,899

)

(26,073

)

(56,899

)

(95,300

)

(69,500

)

(132,743

)

FINANCING ACTIVITIES:

Proceeds from short-term debt, and other

1,725

3,223

2,588

7,131

3,322

9,685

Repayments of short-term debt, and other

(1,820

)

(1,826

)

(2,453

)

(5,300

)

(8,791

)

(7,907

)

Proceeds from long-term debt

746

746

Repayments of long-term debt

(2,183

)

(1,008

)

(6,682

)

(3,759

)

(6,972

)

(6,259

)

Principal repayments of finance leases

(402

)

(351

)

(1,710

)

(1,172

)

(2,489

)

(1,505

)

Principal repayments of financing obligations

(78

)

(82

)

(247

)

(276

)

(320

)

(698

)

Net cash provided by (used in) financing activities

(2,758

)

(44

)

(8,504

)

(2,630

)

(15,250

)

(5,938

)

Foreign currency effect on cash, cash equivalents, and restricted cash

690

(397

)

(51

)

1,027

640

(223

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

7,004

9,011

4,787

(11,848

)

28,596

(8,213

)

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD

$

78,677

$

70,464

$

78,677

$

70,464

$

78,677

$

70,464

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest on debt, net of capitalized interest

$

266

$

249

$

1,215

$

1,008

$

2,002

$

1,651

Cash paid for operating leases

2,940

4,155

9,116

11,475

11,882

14,700

Cash paid for interest on finance leases

71

76

217

219

291

289

Cash paid for interest on financing obligations

47

52

161

159

207

217

Cash paid for income taxes, net of refunds

2,004

1,136

8,162

6,774

12,359

10,920

Assets acquired under operating leases

3,571

5,057

11,235

13,999

14,212

18,188

Property and equipment acquired under finance leases, net of remeasurements and modifications

186

977

409

1,968

620

2,413

Increase (decrease) in property and equipment acquired but not yet paid

1,622

3,341

4,793

4,849

4,769

7,095

AMAZON.COM, INC.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Net product sales

$

67,601

$

74,058

$

190,085

$

206,274

Net service sales

91,276

106,111

260,082

297,264

Total net sales

158,877

180,169

450,167

503,538

Operating expenses:

Cost of sales

80,977

88,670

227,395

246,455

Fulfillment

24,660

27,679

70,543

78,248

Technology and infrastructure

22,245

28,962

64,973

79,122

Sales and marketing

10,609

11,686

30,783

32,865

General and administrative

2,713

2,875

8,496

8,468

Other operating expense (income), net

262

2,875

587

3,382

Total operating expenses

141,466

162,747

402,777

448,540

Operating income

17,411

17,422

47,390

54,998

Interest income

1,256

1,100

3,429

3,251

Interest expense

(603

)

(538

)

(1,836

)

(1,595

)

Other income (expense), net

(27

)

10,186

(2,718

)

14,052

Total non-operating income (expense)

626

10,748

(1,125

)

15,708

Income before income taxes

18,037

28,170

46,265

70,706

Provision for income taxes

(2,706

)

(6,910

)

(6,940

)

(14,141

)

Equity-method investment activity, net of tax

(3

)

(73

)

(81

)

(87

)

Net income

$

15,328

$

21,187

$

39,244

$

56,478

Basic earnings per share

$

1.46

$

1.98

$

3.76

$

5.31

Diluted earnings per share

$

1.43

$

1.95

$

3.67

$

5.22

Weighted-average shares used in computation of earnings per share:

Basic

10,501

10,674

10,447

10,638

Diluted

10,735

10,845

10,705

10,815

AMAZON.COM, INC.

Consolidated Statements of Comprehensive Income

(in millions)

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

Net income

$

15,328

$

21,187

$

39,244

$

56,478

Other comprehensive income (loss):

Foreign currency translation adjustments, net of tax of $(45), $27, $43, and $(181)

1,911

(690

)

178

4,159

Available-for-sale debt securities:

Change in net unrealized gains (losses), net of tax of $(55), $(3,797), $(282), and $(3,820)

167

12,397

944

12,474

Less: reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $512, $(1), and $1,326

(1,795

)

4

(4,266

)

Net change

167

10,602

948

8,208

Other, net of tax of $3, $0, $1, and $0

(3

)

1

(4

)

Total other comprehensive income (loss)

2,075

9,913

1,122

12,367

Comprehensive income

$

17,403

$

31,100

$

40,366

$

68,845

AMAZON.COM, INC.

Segment Information

(in millions)

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2024

2025

2024

2025

North America

Net sales

$

95,537

$

106,267

$

271,911

$

299,222

Operating expenses

89,874

101,478

256,200

281,075

Operating income

$

5,663

$

4,789

$

15,711

$

18,147

International

Net sales

$

35,888

$

40,896

$

99,486

$

111,170

Operating expenses

34,587

39,697

97,009

107,460

Operating income

$

1,301

$

1,199

$

2,477

$

3,710

AWS

Net sales

$

27,452

$

33,006

$

78,770

$

93,146

Operating expenses

17,005

21,572

49,568

60,005

Operating income

$

10,447

$

11,434

$

29,202

$

33,141

Consolidated

Net sales

$

158,877

$

180,169

$

450,167

$

503,538

Operating expenses

141,466

162,747

402,777

448,540

Operating income

17,411

17,422

47,390

54,998

Total non-operating income (expense)

626

10,748

(1,125

)

15,708

Provision for income taxes

(2,706

)

(6,910

)

(6,940

)

(14,141

)

Equity-method investment activity, net of tax

(3

)

(73

)

(81

)

(87

)

Net income

$

15,328

$

21,187

$

39,244

$

56,478

Segment Highlights:

Y/Y net sales growth:

North America

9

%

11

%

10

%

10

%

International

12

14

9

12

AWS

19

20

18

18

Consolidated

11

13

11

12

Net sales mix:

North America

60

%

59

%

60

%

59

%

International

23

23

22

22

AWS

17

18

18

19

Consolidated

100

%

100

%

100

%

100

%

AMAZON.COM, INC.

Consolidated Balance Sheets

(in millions, except per share data)

(unaudited)

December 31, 2024

September 30, 2025

ASSETS

Current assets:

Cash and cash equivalents

$

78,779

$

66,922

Marketable securities

22,423

27,275

Inventories

34,214

41,494

Accounts receivable, net and other

55,451

61,175

Total current assets

190,867

196,866

Property and equipment, net

252,665

324,435

Operating leases

76,141

83,456

Goodwill

23,074

23,260

Other assets

82,147

99,904

Total assets

$

624,894

$

727,921

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

94,363

$

106,032

Accrued expenses and other

66,965

68,051

Unearned revenue

18,103

21,113

Total current liabilities

179,431

195,196

Long-term lease liabilities

78,277

84,677

Long-term debt

52,623

50,742

Other long-term liabilities

28,593

27,675

Commitments and contingencies

Stockholders’ equity:

Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding)

Common stock ($0.01 par value; 100,000 shares authorized; 11,108 and 11,202 shares issued; 10,593 and 10,687 shares outstanding)

111

112

Treasury stock, at cost

(7,837

)

(7,837

)

Additional paid-in capital

120,864

135,679

Accumulated other comprehensive income (loss)

(34

)

12,333

Retained earnings

172,866

229,344

Total stockholders’ equity

285,970

369,631

Total liabilities and stockholders’ equity

$

624,894

$

727,921

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except per share data)

(unaudited)

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Q2 2025

Q3 2025

Y/Y %

Change

Cash Flows and Shares

Operating cash flow -- trailing twelve months (TTM)

$

107,952

$

112,706

$

115,877

$

113,903

$

121,137

$

130,691

16

%

Operating cash flow -- TTM Y/Y growth

75

%

57

%

36

%

15

%

12

%

16

%

N/A

Purchases of property and equipment, net of proceeds from sales and incentives -- TTM

$

54,979

$

64,959

$

77,658

$

87,978

$

102,953

$

115,903

78

%

Free cash flow -- TTM (1)

$

52,973

$

47,747

$

38,219

$

25,925

$

18,184

$

14,788

(69

)%

Common shares and stock-based awards outstanding

10,871

10,872

10,876

10,876

10,952

10,955

1

%

Common shares outstanding

10,490

10,511

10,593

10,613

10,660

10,687

2

%

Stock-based awards outstanding

381

361

283

263

292

268

(26

)%

Stock-based awards outstanding -- % of common shares outstanding

3.6

%

3.4

%

2.7

%

2.5

%

2.7

%

2.5

%

N/A

Results of Operations

Worldwide (WW) net sales

$

147,977

$

158,877

$

187,792

$

155,667

$

167,702

$

180,169

13

%

WW net sales -- Y/Y growth, excluding F/X

11

%

11

%

11

%

10

%

12

%

12

%

N/A

WW net sales -- TTM

$

604,334

$

620,128

$

637,959

$

650,313

$

670,038

$

691,330

11

%

WW net sales -- TTM Y/Y growth, excluding F/X

12

%

12

%

11

%

11

%

11

%

11

%

N/A

Operating income

$

14,672

$

17,411

$

21,203

$

18,405

$

19,171

$

17,422

%

F/X impact -- favorable

$

29

$

16

$

14

$

53

$

153

$

129

N/A

Operating income -- Y/Y growth (decline), excluding F/X

91

%

55

%

60

%

20

%

30

%

(1

)%

N/A

Operating margin -- % of WW net sales

9.9

%

11.0

%

11.3

%

11.8

%

11.4

%

9.7

%

N/A

Operating income -- TTM

$

54,376

$

60,599

$

68,593

$

71,691

$

76,190

$

76,201

26

%

Operating income -- TTM Y/Y growth, excluding F/X

205

%

129

%

86

%

51

%

40

%

25

%

N/A

Operating margin -- TTM % of WW net sales

9.0

%

9.8

%

10.8

%

11.0

%

11.4

%

11.0

%

N/A

Net income

$

13,485

$

15,328

$

20,004

$

17,127

$

18,164

$

21,187

38

%

Net income per diluted share

$

1.26

$

1.43

$

1.86

$

1.59

$

1.68

$

1.95

37

%

Net income -- TTM

$

44,419

$

49,868

$

59,248

$

65,944

$

70,623

$

76,482

53

%

Net income per diluted share -- TTM

$

4.18

$

4.67

$

5.53

$

6.13

$

6.55

$

7.08

52

%

(1)

Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions)

(unaudited)

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Q2 2025

Q3 2025

Y/Y %

Change

Segments

North America Segment:

Net sales

$

90,033

$

95,537

$

115,586

$

92,887

$

100,068

$

106,267

11

%

Net sales -- Y/Y growth, excluding F/X

9

%

9

%

10

%

8

%

11

%

11

%

N/A

Net sales -- TTM

$

369,775

$

377,425

$

387,497

$

394,043

$

404,078

$

414,808

10

%

Operating income

$

5,065

$

5,663

$

9,256

$

5,841

$

7,517

$

4,789

(15

)%

F/X impact -- favorable (unfavorable)

$

8

$

(28

)

$

(49

)

$

(32

)

$

(46

)

$

(53

)

N/A

Operating income -- Y/Y growth (decline), excluding F/X

58

%

32

%

44

%

18

%

49

%

(14

)%

N/A

Operating margin -- % of North America net sales

5.6

%

5.9

%

8.0

%

6.3

%

7.5

%

4.5

%

N/A

Operating income -- TTM

$

20,816

$

22,172

$

24,967

$

25,825

$

28,277

$

27,403

24

%

Operating margin -- TTM % of North America net sales

5.6

%

5.9

%

6.4

%

6.6

%

7.0

%

6.6

%

N/A

International Segment:

Net sales

$

31,663

$

35,888

$

43,420

$

33,513

$

36,761

$

40,896

14

%

Net sales -- Y/Y growth, excluding F/X

10

%

12

%

9

%

8

%

11

%

10

%

N/A

Net sales -- TTM

$

135,978

$

139,729

$

142,906

$

144,484

$

149,582

$

154,590

11

%

Operating income

$

273

$

1,301

$

1,315

$

1,017

$

1,494

$

1,199

(8

)%

F/X impact -- favorable (unfavorable)

$

(94

)

$

43

$

6

$

(56

)

$

338

$

302

N/A

Operating income -- Y/Y growth (decline), excluding F/X

N/A

N/A

N/A

19

%

324

%

(31

)%

N/A

Operating margin -- % of International net sales

0.9

%

3.6

%

3.0

%

3.0

%

4.1

%

2.9

%

N/A

Operating income -- TTM

$

662

$

2,058

$

3,792

$

3,906

$

5,127

$

5,025

144

%

Operating margin -- TTM % of International net sales

0.5

%

1.5

%

2.7

%

2.7

%

3.4

%

3.2

%

N/A

AWS Segment:

Net sales

$

26,281

$

27,452

$

28,786

$

29,267

$

30,873

$

33,006

20

%

Net sales -- Y/Y growth, excluding F/X

19

%

19

%

19

%

17

%

17

%

20

%

N/A

Net sales -- TTM

$

98,581

$

102,974

$

107,556

$

111,786

$

116,378

$

121,932

18

%

Operating income

$

9,334

$

10,447

$

10,632

$

11,547

$

10,160

$

11,434

9

%

F/X impact -- favorable (unfavorable)

$

115

$

1

$

57

$

141

$

(139

)

$

(120

)

N/A

Operating income -- Y/Y growth, excluding F/X

72

%

50

%

48

%

21

%

10

%

11

%

N/A

Operating margin -- % of AWS net sales

35.5

%

38.1

%

36.9

%

39.5

%

32.9

%

34.6

%

N/A

Operating income -- TTM

$

32,898

$

36,369

$

39,834

$

41,960

$

42,786

$

43,773

20

%

Operating margin -- TTM % of AWS net sales

33.4

%

35.3

%

37.0

%

37.5

%

36.8

%

35.9

%

N/A

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except employee data)

(unaudited)

Q2 2024

Q3 2024

Q4 2024

Q1 2025

Q2 2025

Q3 2025

Y/Y %

Change

Net Sales

Online stores (1)

$

55,392

$

61,411

$

75,556

$

57,407

$

61,485

$

67,407

10

%

Online stores -- Y/Y growth, excluding F/X

6

%

8

%

8

%

6

%

10

%

8

%

N/A

Physical stores (2)

$

5,206

$

5,228

$

5,579

$

5,533

$

5,595

$

5,578

7

%

Physical stores -- Y/Y growth, excluding F/X

4

%

5

%

8

%

6

%

7

%

7

%

N/A

Third-party seller services (3)

$

36,201

$

37,864

$

47,485

$

36,512

$

40,348

$

42,486

12

%

Third-party seller services -- Y/Y growth, excluding F/X

13

%

10

%

9

%

7

%

10

%

11

%

N/A

Advertising services (4)

$

12,771

$

14,331

$

17,288

$

13,921

$

15,694

$

17,703

24

%

Advertising services -- Y/Y growth, excluding F/X

20

%

19

%

18

%

19

%

22

%

22

%

N/A

Subscription services (5)

$

10,866

$

11,278

$

11,508

$

11,715

$

12,208

$

12,574

11

%

Subscription services -- Y/Y growth, excluding F/X

11

%

11

%

10

%

11

%

11

%

10

%

N/A

AWS

$

26,281

$

27,452

$

28,786

$

29,267

$

30,873

$

33,006

20

%

AWS -- Y/Y growth, excluding F/X

19

%

19

%

19

%

17

%

17

%

20

%

N/A

Other (6)

$

1,260

$

1,313

$

1,590

$

1,312

$

1,499

$

1,415

8

%

Other -- Y/Y growth (decline), excluding F/X

(6

)%

5

%

17

%

4

%

18

%

7

%

N/A

Stock-based Compensation Expense

Cost of sales

$

266

$

193

$

205

$

148

$

250

$

197

2

%

Fulfillment

$

944

$

696

$

697

$

497

$

880

$

685

(2

)%

Technology and infrastructure

$

3,670

$

2,961

$

2,747

$

2,060

$

3,655

$

2,697

(9

)%

Sales and marketing

$

1,224

$

1,012

$

916

$

653

$

1,207

$

832

(18

)%

General and administrative

$

618

$

471

$

430

$

331

$

542

$

436

(7

)%

Total stock-based compensation expense

$

6,722

$

5,333

$

4,995

$

3,689

$

6,534

$

4,847

(9

)%

Other

WW shipping costs

$

21,965

$

23,501

$

28,549

$

22,495

$

23,370

$

25,384

8

%

WW shipping costs -- Y/Y growth

8

%

8

%

4

%

3

%

6

%

8

%

N/A

WW paid units -- Y/Y growth (7)

11

%

12

%

11

%

8

%

12

%

11

%

N/A

WW seller unit mix -- % of WW paid units (7)

61

%

60

%

62

%

61

%

62

%

62

%

N/A

Employees (full-time and part-time; excludes contractors & temporary personnel)

1,532,000

1,551,000

1,556,000

1,560,000

1,546,000

1,578,000

2

%

Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth

5

%

3

%

2

%

3

%

1

%

2

%

N/A

(1)

Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”

(2)

Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”

(3)

Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.

(4)

Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.

(5)

Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.

(6)

Includes sales related to various other offerings (such as shipping services, healthcare services, and certain licensing and distribution of video content) and our co-branded credit card agreements.

(7)

Excludes the impact of Whole Foods Market.

Amazon.com, Inc.

Certain Definitions

Customer Accounts

Seller Accounts

AWS Customers

Units