INTUIT INC
For the period ended Apr 30, 2025. Filed May 22, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2025 · Filed May 22, 2025
INTU$341.50-3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-01-31; filed 2025-02-25.
0000896878-25-000015
ITEM 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-04-30; filed 2025-05-22.
0000896878-25-000022
ITEM 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 179 previous paragraphs and 176 current paragraphs.
110 unchanged; 56 reworded; 9 added; 9 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 30 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
segment operating income and are now included in other corporate expenses. For thethree and nine months ended April 30, 2024, we reclassified expenses totaling$353 million and $1.0 billion from Global Business Solutions, $327 million and $521 million from Consumer, and $10 million and $26 million from ProTax to other corporate expenses, respectively, to conform to the current presentation.
Current report
Revenue for our Consumer segment increased $401 million, or 9%, in the first nine months of fiscal 2025 compared with the same period of fiscal 2024 due to growth in our higher-priced and additional service offerings, such as TurboTax Live and our early tax refund offerings.
Current report
Consumer segment operating income increased $277 million, or 8%, in the first nine months of fiscal 2025 compared with the same period of fiscal 2024 due to the increase in revenue described above, partially offset by an increase in marketing expenses of $124 million.
Current report
Credit Karma segment operating income increased $97 million, or 88%, in the third quarter of fiscal 2025 compared to the same period of fiscal 2024, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $42 million.
Current report
Credit Karma segment operating income increased $275 million, or 98%, in the first nine months of fiscal 2025 compared to the same period of fiscal 2024, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $107 million.
Current report
Segment operating income increased $13 million, or 3%, in the first nine months of fiscal 2025 compared with the same period of fiscal 2024, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $4 million.
Current report
In August 2024, we reorganized certain technology and customer success functions that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result, these costs are no longer included in segment operating income and are now included in other corporate expenses. For the three and nine months ended April 30, 2024, we reclassified $10 million and $26 million, respectively, from ProTax to other corporate expenses to conform to the current presentation.
Current report
Interest expense of $188 million for the first nine months of fiscal 2025 consisted of interest on our senior unsecured notes, secured revolving credit facilities, unsecured revolving credit facility, and commercial paper program. Interest expense of $182
Current report
We expect to pay approximately $800 million in income taxes during the fourth quarter of fiscal 2025.
Removed paragraphs (9)
Previous report
Revenue for our Consumer segment was relatively consistent for the first six months of fiscal 2025 compared with the same period of fiscal 2024, during which it increased $6 million, or 1%.
Previous report
Consumer segment operating income decreased $90 million, or 23%, in the first six months of fiscal 2025 compared with the same period of fiscal 2024 due to an increase in marketing expenses of $94 million, partially offset by the increase in revenue described above.
Previous report
Credit Karma segment operating income increased $104 million, or 163%, in the second quarter of fiscal 2025 compared to the same period of fiscal 2024, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $29 million.
Previous report
Credit Karma segment operating income increased $178 million, or 105%, in the first six months of fiscal 2025 compared to the same period of fiscal 2024, due to the increase in revenue described above, partially offset by an increase in marketing expenses of $66 million.
Previous report
Segment operating income was relatively consistent for the first six months of fiscal 2025 compared with the same period of fiscal 2024, during which it decreased $8 million, or 3%.
Previous report
In August 2024, we reorganized certain technology and customer success functions that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result, these costs are no longer included in segment operating income and are now included in other corporate expenses. For the three and six months ended January 31, 2024, we reclassified $8 million and $16 million, respectively, from ProTax to other corporate expenses to conform to the current presentation.
Previous report
Subsequent to January 31, 2025, we increased the capacity of our commercial paper program from $1.5 billion to $2.0 billion on a temporary basis to be available for any seasonal working capital needs. In February 2025, we also began to issue commercial paper under this program, and as of February 25, 2025, there was $1.8 billion in commercial paper outstanding, all of which is short term.
Previous report
Subsequent to January 31, 2025, the committed limit of the 2024 Secured Facility was increased to $300 million and the uncommitted limit was reduced to zero.
Previous report
Subsequent to January 31, 2025, we increased the capacity of our commercial paper program from $1.5 billion to $2.0 billion on a temporary basis to be available for any seasonal working capital needs. In February 2025, we also began to issue commercial paper under this program, and as of February 25, 2025, there was $1.8 billion in commercial paper outstanding, all of which is short term. We expect to reduce the capacity to $1.5 billion by April 30, 2025.
Reworded paragraphs (56)
Previous wording
In July 2024, our management approved, committed to, and initiated a plan of reorganization (the Plan) focused on reallocating resources to our key growth areas. The Plan includes the exit of employees and the closing of real estate sites in certain markets in service to growing technology teams and capabilities in strategic locations. The actions associated with the Plan were substantially complete in the first quarter of fiscal 2025. Total restructuring costs associated with the Plan are estimated to be approximately $236 million. During the six months ended January 31, 2025, we recorded a $13 million charge in connection with the Plan. This charge is primarily related to severance, employee benefits, and site closure costs and is recorded to restructuring in our condensed consolidated statements of operations. See Note 13,"Restructuring,"for more information. See Note 12,"Segment Information," for more information.
Current wording
In July 2024, our management approved, committed to, and initiated a plan of reorganization (the Plan) focused on reallocating resources to our key growth areas. The Plan included the exit of employees and the closing of real estate sites in certain markets in service to growing technology teams and capabilities in strategic locations. The actions associated with the Plan were substantially complete in the first quarter of fiscal 2025. Total restructuring costs associated with the Plan are estimated to be approximately $238 million. During the nine months ended April 30, 2025, we recorded a $14 million charge in connection with the Plan. This charge is primarily related to severance, employee benefits, and site closure costs and is recorded to restructuring in our condensed consolidated statements of operations. See Note 13,"Restructuring,"for more information.
Previous wording
On August 1, 2024, we reorganized certain technology and customer success functions in our Global Business Solutions, Consumer, and ProTax segments that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result of these reorganizations, costs associated with these functions are no longer included in segment operating income and are now included in other corporate expenses. For thethree and six months ended January 31, 2024, we reclassified expenses totaling$350 million and $682 million from Global Business Solutions, $129 million and $194 million from Consumer, and $8 million and $16 million from ProTax to other corporate expenses, respectively, to conform to the current presentation. See Note 12,"Segment Information," for more information.
Current wording
On August 1, 2024, we reorganized certain technology and customer success functions in our Global Business Solutions, Consumer, and ProTax segments that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result of these reorganizations, costs associated with these functions are no longer included in segment operating income and are now included in other corporate expenses. For thethree and nine months ended April 30, 2024, we reclassified expenses totaling$353 million and $1.0 billion from Global Business Solutions, $327 million and $521 million from Consumer, and $10 million and $26 million from ProTax to other corporate expenses, respectively, to conform to the current presentation. See Note 12,"Segment Information," for more information.
Previous wording
Key highlights for the first six months of fiscal 2025 include the following:
Current wording
Key highlights for the first nine months of fiscal 2025 include the following:
Previous wording
In preparing our condensed consolidated financial statements, we make estimates, assumptions, and judgments that can have a significant impact on our net revenue, operating income or loss, and net income or loss, as well as on the value of certain assets and liabilities on our condensed consolidated balance sheets. We believe that the estimates, assumptions, and judgments involved in the accounting policies described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 have the greatest potential impact on our financial statements, so we consider them to be our critical accounting policies and estimates. There were no significant changes in those critical accounting policies and estimates during the first six months of fiscal 2025. Senior management has reviewed the development and selection of our critical accounting policies and estimates and their disclosure in this Quarterly Report on Form 10-Q with the Audit and Risk Committee of our Board of Directors.
Current wording
In preparing our condensed consolidated financial statements, we make estimates, assumptions, and judgments that can have a significant impact on our net revenue, operating income or loss, and net income or loss, as well as on the value of certain assets and liabilities on our condensed consolidated balance sheets. We believe that the estimates, assumptions, and judgments involved in the accounting policies described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 have the greatest potential impact on our financial statements, so we consider them to be our critical accounting policies and estimates. There were no significant changes in those critical accounting policies and estimates during the first nine months of fiscal 2025. Senior management has reviewed the development and selection of our critical accounting policies and estimates and their disclosure in this Quarterly Report on Form 10-Q with the Audit and Risk Committee of our Board of Directors.
Previous wording
Total net revenue for the second quarter of fiscal 2025 increased $577 million, or 17%, compared with the same quarter of fiscal 2024. Our Global Business Solutions segment revenue increased during the quarter due to growth in our Online Ecosystem revenue. Credit Karma segment revenue increased during the quarter due to strength in our credit card, personal loan, and auto insurance verticals. See“Segment Results” later in this Item 2 for more information about the results for all of our reportable segments.
Current wording
Total net revenue for the third quarter of fiscal 2025 increased $1.0 billion, or 15%, compared with the same quarter of fiscal 2024. Our Global Business Solutions segment revenue increased during the quarter due to growth in our Online Ecosystem revenue. Consumer segment revenue increased due to growth in our higher-priced and additional service offerings, such as TurboTax Live and our early tax refund offerings. Credit Karma segment revenue increased during the quarter due to strength in our credit card, personal loan, and auto insurance verticals. See“Segment Results” later in this Item 2 for more information about the results for all of our reportable segments.
Previous wording
Operating income for the second quarter of fiscal 2025 increased $224 million, or 61%, compared with the same quarter of fiscal 2024. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to marketing, outside services, staffing, and share-based compensation. See"Cost of Revenue" and“Operating Expenses” later in this Item 2 for more information.
Current wording
Operating income for the third quarter of fiscal 2025 increased $615 million, or 20%, compared with the same quarter of fiscal 2024. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to increases in staffing, marketing, and outside services. See“Cost of Revenue” and“Operating Expenses” later in this Item 2 for more information.
Previous wording
Net income for the second quarter of fiscal 2025 increased $118 million, or 33%, compared with the same quarter of fiscal 2024. The increase in net income was due to the increase in operating income described, partially offset by an increase in income tax expense. The increase in income tax expense is due to the increase in operating income described above and a decrease in excess tax benefits related to share-based compensation. Diluted net income per share increased to $1.67 for the second quarter of fiscal 2025 compared to $1.25 for the same quarter of fiscal 2024, in line with the increase in net income.
Current wording
Net income for the third quarter of fiscal 2025 increased $431 million, or 18%, compared with the same quarter of fiscal 2024. The increase in net income was due to the increase in operating income described, partially offset by an increase in income tax expense. The increase in income tax expense is due to the increase in operating income described above and a decrease in excess tax benefits related to share-based compensation. Diluted net income per share increased to $10.02 for the third quarter of fiscal 2025 compared to $8.42 for the same quarter of fiscal 2024, relatively consistent with the increase in net income.
Previous wording
Total net revenue for the first six months of fiscal 2025 increased $882 million, or 14%, compared with the same period of fiscal 2024. Our Global Business Solutions segment revenue increased during the period due to growth in our Online Ecosystem revenue. Credit Karma segment revenue increased during the quarter due to strength in our personal loan, credit card, and auto insurance verticals. See“Segment Results”later in this Item 2 for more information about the results for all of our reportable segments.
Current wording
Total net revenue for the first nine months of fiscal 2025 increased $1.9 billion, or 14%, compared with the same period of fiscal 2024. Our Global Business Solutions segment revenue increased during the period due to growth in our Online Ecosystem revenue. Consumer segment revenue increased due to growth in our higher-priced and additional service offerings, such as TurboTax Live and our early tax refund offerings. Credit Karma segment revenue increased during the quarter due to strength in our credit card, personal loan, and auto insurance verticals. See“Segment Results”later in this Item 2 for more information about the results for all of our reportable segments.
Previous wording
Operating income for the first six months of fiscal 2025 increased $188 million, or 28%, compared with the same period of fiscal 2024. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to marketing, staffing, outside services, and share-based compensation. See "Cost of Revenue" and“Operating Expenses” later in this Item 2 for more information.
Current wording
Operating income for the first nine months of fiscal 2025 increased $803 million, or 21%, compared with the same period of fiscal 2024. The increase in operating income was due to the increase in revenue described above, partially offset by an increase in expenses. Expenses increased due to increases in staffing, marketing, outside services, and share-based compensation. See “Cost of Revenue” and“Operating Expenses” later in this Item 2 for more information.
Previous wording
Net income for the first six months of fiscal 2025 increased $74 million, or 12%, compared with the same period of fiscal 2024. The increase in net income was due to the increase in operating income described, partially offset by an increase in income tax expense. The increase in income tax expense is due to the increase in operating income described above and a decrease in excess tax benefits related to share-based compensation. Diluted net income per share increased to $2.36 for the first six months of fiscal 2025 compared to $2.10 for the same period in fiscal 2024, in line with the increase in net income.
Current wording
Net income for the first nine months of fiscal 2025 increased $505 million, or 17%, compared with the same period of fiscal 2024. The increase in net income was due to the increase in operating income described, partially offset by an increase in income tax expense. The increase in income tax expense is due to the increase in operating income described above and a decrease in excess tax benefits related to share-based compensation. Diluted net income per share increased to $12.33 for the first nine months of fiscal 2025 compared to $10.51 for the same period in fiscal 2024, in line with the increase in net income.
Previous wording
The information below is organized in accordance with our four reportable segments. See“Executive Overview – About Intuit” earlier in this Item 2 and Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for more information. All of our segments operate and sell to customers primarily in the U.S. Total international net revenue was approximately 9% of consolidated net revenue for each of the three and six months ended January 31, 2025, respectively. Total international net revenue was approximately 9% and 10% for the three and six months ended January 31, 2024, respectively.
Current wording
The information below is organized in accordance with our four reportable segments. See“Executive Overview – About Intuit” earlier in this Item 2 and Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for more information. All of our segments operate and sell to customers primarily in the U.S. Total international net revenue was approximately 5% and 7% of consolidated net revenue for the three and nine months ended April 30, 2025, respectively. Total international net revenue was approximately 6% and 8% of consolidated net revenue for the three and nine months ended April 30, 2024, respectively.
Previous wording
On August 1, 2024, we reorganized certain technology and customer success functions in our Global Business Solutions, Consumer, and ProTax segments that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result of these reorganizations, costs associated with these functions are no longer included in segment operating income and are now included in other corporate expenses. For thethree and six months ended January 31, 2024, we reclassified expenses totaling$350 million and $682 million from Global Business Solutions, $129 million
Current wording
On August 1, 2024, we reorganized certain technology and customer success functions in our Global Business Solutions, Consumer, and ProTax segments that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result of these reorganizations, costs associated with these functions are no longer included in
Previous wording
Segment operating income or loss is segment net revenue less segment cost of revenue and operating expenses. See“Executive Overview – Industry Trends and Seasonality” earlier in this Item 2 for a description of the seasonality of our business. We include expenses such as corporate selling and marketing, general and administrative, and non-employment related legal and litigation settlement costs, which are not allocated to specific segments, in unallocated corporate items as part of other corporate expenses. As part of our platform strategy, we also include customer success and product development for our Global Business Solutions, Consumer, and ProTax segments in unallocated corporate items as we do not allocate these expenses to the segments because they are managed at the platform level. Customer success includes the costs of tax and bookkeeping experts that support our TurboTax Live and QuickBooks Live offerings. For our Credit Karma reportable segment, segment expenses include certain direct expenses related to selling and marketing, product development, and general and administrative. Unallocated corporate items for all segments include share-based compensation, amortization of acquired technology, amortization of other acquired intangible assets, goodwill and intangible asset impairment charges, professional fees and transaction charges related to business combinations, and restructuring charges. These unallocated corporate costs for all segments totaled $4.1 billion in the first six months of fiscal 2025 and $3.7 billion in the first six months of fiscal 2024. Unallocated corporate items increased in the fiscal 2025 period, primarily due to increases in cost of service revenue, selling and marketing expense and general and administrative expense. See Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for reconciliations of total segment operating income or loss to consolidated operating income or loss for each fiscal period presented.
Current wording
Segment operating income or loss is segment net revenue less segment cost of revenue and operating expenses. See“Executive Overview – Industry Trends and Seasonality” earlier in this Item 2 for a description of the seasonality of our business. We include expenses such as corporate selling and marketing, general and administrative, and non-employment related legal and litigation settlement costs, which are not allocated to specific segments, in unallocated corporate items as part of other corporate expenses. As part of our platform strategy, we also include customer success and product development for our Global Business Solutions, Consumer, and ProTax segments in unallocated corporate items as we do not allocate these expenses to the segments because they are managed at the platform level. Customer success includes the costs of tax and bookkeeping experts that support our TurboTax Live and QuickBooks Live offerings. For our Credit Karma reportable segment, segment expenses include certain direct expenses related to selling and marketing, product development, and general and administrative. Unallocated corporate items for all segments include share-based compensation, amortization of acquired technology, amortization of other acquired intangible assets, goodwill and intangible asset impairment charges, professional fees and transaction charges related to business combinations, and restructuring charges. These unallocated corporate costs for all segments totaled $6.5 billion in the first nine months of fiscal 2025 and $5.8 billion in the first nine months of fiscal 2024. Unallocated corporate items increased in the fiscal 2025 period, primarily due to increases in cost of service revenue, selling and marketing expense, and general and administrative expense. See Note 12 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report for reconciliations of total segment operating income or loss to consolidated operating income or loss for each fiscal period presented.
Previous wording
Segment service revenue is primarily derived from our Online Ecosystem revenue and revenue from the services, support, and when-and-if-available product upgrades and enhancements that are provided as part of our QuickBooks Desktop subscriptions, services and support for our desktop payroll offerings, as well as merchant payment processing services. Segment product and other revenue is primarily derived from revenue related to delivery of software licenses, version protection updates, and payroll software updates for our QuickBooks Desktop subscriptions and desktop payroll offerings, which are part of our Desktop Ecosystem. Our money offerings consist of our merchant payment processing services, financing for small and mid-market businesses (QuickBooks Capital), and bill pay services.
Current wording
Segment service revenue is primarily derived from our Online Ecosystem revenue and revenue from the services, support, and when-and-if-available product upgrades and enhancements that are provided as part of our QuickBooks Desktop subscriptions, services and support for our desktop payroll offerings, and merchant payment processing services. Segment product and other revenue is primarily derived from revenue related to delivery of software licenses, version protection updates, and payroll software updates for our QuickBooks Desktop subscriptions and desktop payroll offerings, which are part of our Desktop Ecosystem. Our money offerings consist of our merchant payment processing services, financing for small and mid-market businesses (QuickBooks Capital), and bill pay services.
Previous wording
Revenue for our Global Business Solutions segment increased $426 million, or 19%, in the second quarter of fiscal 2025 and $626 million, or 14%, in the first six months of fiscal 2025 compared with the same periods of fiscal 2024. The increase in both periods was primarily due to growth in Online Ecosystem revenue.
Current wording
Revenue for our Global Business Solutions segment increased $462 million, or 19%, in the third quarter of fiscal 2025 and $1.1 billion, or 16%, in the first nine months of fiscal 2025 compared with the same periods of fiscal 2024. The increase in both periods was primarily due to growth in Online Ecosystem revenue.
Previous wording
Online Ecosystem revenue increased $350 million, or 21%, in the second quarter of fiscal 2025 compared with the same period of fiscal 2024. QuickBooks Online Accounting revenue increased $182 million, or 22%, in the second quarter of fiscal 2025 due to the interrelated factors of higher effective prices, customer growth, and a shift in mix to our higher-priced offerings. Online Services revenue increased $168 million, or 19%, in the second quarter of fiscal 2025, due to increases in revenue from our money offerings of $85 million, our payroll offerings of $79 million, and Mailchimp of $6 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $85 million due to a $53 million increase in payments revenue from payments customer growth, an increase in total payment volume per customer, and higher effective payments prices, and a $32 million increase from QuickBooks Capital. Online payroll revenue increased due to customer growth, mix-shift, and higher effective prices. Mailchimp revenue increased due to higher effective prices and paid customer growth.
Current wording
Online Ecosystem revenue increased $349 million, or 20%, in the third quarter of fiscal 2025 compared with the same period of fiscal 2024. QuickBooks Online Accounting revenue increased $184 million, or 21%, in the third quarter of fiscal 2025 due to the interrelated factors of higher effective prices, customer growth, and a shift in mix to our higher-priced offerings. Online Services revenue increased $165 million, or 18%, in the third quarter of fiscal 2025, due to increases in revenue from our money offerings of $92 million and our payroll offerings of $76 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $92 million due to a $57 million increase in payments revenue from payments customer growth, an increase in total payment volume per customer, and higher effective payments prices, and a $35 million increase from QuickBooks Capital. Online payroll revenue increased due to customer growth, mix-shift, and higher effective prices.
Previous wording
Online Ecosystem revenue increased $675 million, or 20%, in the first six months of fiscal 2025 compared with the same period of fiscal 2024. QuickBooks Online Accounting revenue increased $349 million, or 21%, in the first six months of fiscal 2025 due to the interrelated factors of higher effective prices, customer growth, and a shift in mix to our higher-priced offerings. Online Services revenue increased $326 million, or 19%, in the first six months of fiscal 2025, due to increases in revenue from our money offerings of $176 million, our payroll offerings of $132 million, and Mailchimp of $23 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $176 million due to a $118 million increase in payments revenue from payments customer growth, higher effective payments prices, and an increase in total payment volume per customer, and a $58 million increase from QuickBooks Capital. Online payroll revenue increased due to customer growth, higher effective prices, and a mix-shift. Mailchimp revenue increased due to higher effective prices and paid customer growth.
Current wording
Online Ecosystem revenue increased $1.0 billion, or 20%, in the first nine months of fiscal 2025 compared with the same period of fiscal 2024. QuickBooks Online Accounting revenue increased $533 million, or 21%, in the first nine months of fiscal 2025 due to the interrelated factors of higher effective prices, customer growth, and a shift in mix to our higher-priced offerings. Online Services revenue increased $491 million, or 19%, in the first nine months of fiscal 2025, due to increases in revenue from our money offerings of $268 million, our payroll offerings of $208 million, and Mailchimp of $22 million. Revenue increases were due to the interrelated factors described below. Money revenue increased $268 million due to a $175 million increase in payments revenue from payments customer growth, an increase in total payment volume per customer, and higher effective payments prices, and a $93 million increase from QuickBooks Capital. Online payroll revenue increased due to customer growth, mix-shift, and higher effective prices. Mailchimp revenue increased due to higher effective prices and paid customer growth.
Previous wording
Desktop Ecosystem revenue increased $76 million, or 14%, in the second quarter of fiscal 2025 compared with the same period of fiscal 2024. The increase was due to higher effective prices and changes we made to our QuickBooks desktop offerings beginning in early fiscal 2024 to complete the transition to a recurring subscription model, which more closely aligns our Desktop license and related product updates to our Desktop subscription billing model.
Current wording
Desktop Ecosystem revenue increased $113 million, or 18%, in the third quarter of fiscal 2025 and $64 million, or 3%, in the first nine months of fiscal 2025 compared with the same periods of fiscal 2024. For both periods, the increase was due to higher effective prices and changes we made to our QuickBooks desktop offerings beginning in early fiscal 2024 to complete the transition to a recurring subscription model, which more closely aligns our Desktop license and related product updates to our Desktop subscription billing model.
Previous wording
Global Business Solutions segment operating income increased $376 million, or 22%, in the second quarter of fiscal 2025 compared with the same period of fiscal 2024, due to the increase in revenue described above, partially offset by increases in staffing expenses of $10 million and sales-related expenses of $3 million.
Current wording
Global Business Solutions segment operating income increased $384 million, or 21%, in the third quarter of fiscal 2025 compared with the same period of fiscal 2024, due to the increase in revenue described above, partially offset by increases in staffing expenses of $26 million, outside services expenses of $9 million, and sales-related expenses of $7 million.
Previous wording
Global Business Solutions segment operating income increased $551 million, or 16%, in the first six months of fiscal 2025 compared with the same period of fiscal 2024, due to the increase in revenue described above, partially offset by increases in staffing expenses of $19 million and marketing expenses of $16 million.
Current wording
Global Business Solutions segment operating income increased $935 million, or 18%, in the first nine months of fiscal 2025 compared with the same period of fiscal 2024, due to the increase in revenue described above, partially offset by increases in staffing expenses of $45 million, marketing expenses of $21 million, and sales-related expenses of $15 million.
Previous wording
In August 2024, we reorganized certain technology and customer success functions that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result, these costs are no longer included in segment operating income and are now included in other corporate expenses. For the three and six months ended January 31, 2024, we reclassified $350 million and $682 million, respectively, from Global Business Solutions to other corporate expenses to conform to the current presentation.
Current wording
In August 2024, we reorganized certain technology and customer success functions that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result, these costs are no longer included in segment operating income and are now included in other corporate expenses. For the three and nine months ended April 30, 2024, we reclassified $353 million and $1.0 billion, respectively, from Global Business Solutions to other corporate expenses to conform to the current presentation.
Previous wording
In August 2024, we reorganized certain technology and customer success functions that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result, these costs are no longer included in segment operating income and are now included in other corporate expenses. For the three and six months ended January 31, 2024, we reclassified $129 million and $194 million, respectively, from Consumer to other corporate expenses to conform to the current presentation.
Current wording
In August 2024, we reorganized certain technology and customer success functions that support and benefit our overall platform and are managed at that level rather than at the segment level. As a result, these costs are no longer included in segment operating income and are now included in other corporate expenses. For the three and nine months ended April 30, 2024, we reclassified $327 million and $521 million, respectively, from Consumer to other corporate expenses to conform to the current presentation.
Previous wording
Revenue for our Credit Karma segment increased $136 million, or 36%, in the second quarter of fiscal 2025 compared to the same period in fiscal 2024, due to increases in revenue from our credit card vertical of $57 million, our personal loan vertical of $51 million, and our auto insurance vertical of $23 million.
Current wording
Revenue for our Credit Karma segment increased $136 million, or 31%, in the third quarter of fiscal 2025 compared to the same period in fiscal 2024, due to increases in revenue from our credit card vertical of $63 million, our personal loan vertical of $55 million, and our auto insurance vertical of $14 million.
Previous wording
Revenue for our Credit Karma segment increased $255 million, or 33%, in the first six months of fiscal 2025 compared to the same period of fiscal 2024, due to increases in revenue from our personal loan vertical of $95 million, our credit card vertical of $88 million, and our auto insurance vertical of $59 million.
Current wording
Revenue for our Credit Karma segment increased $391 million, or 32%, in the first nine months of fiscal 2025 compared to the same period of fiscal 2024, due to increases in revenue from our credit card vertical of $151 million, our personal loan vertical of $150 million, and our auto insurance vertical of $73 million.
Previous wording
Revenue for our ProTax segment was relatively consistent for the first six months of fiscal 2025 compared with the same period of fiscal 2024, during which it decreased $5 million, or 2%.
Current wording
Revenue for our ProTax segment increased $19 million, or 3%, in the first nine months of fiscal 2025 compared with the same period of fiscal 2024 due to higher average revenue per customer.
Previous wording
Cost of service revenue as a percentage of service revenue was relatively consistent in both the second quarter and first six months of fiscal 2025 compared with the same periods of fiscal 2024.
Current wording
Cost of service revenue as a percentage of service revenue was relatively consistent in both the third quarter and first nine months of fiscal 2025 compared with the same periods of fiscal 2024.
Previous wording
Cost of product and other revenue as a percentage of product and other revenue was relatively consistent in both the second quarter and first six months of fiscal 2025 compared with the same periods of fiscal 2024. Costs of product and other revenue are expensed as incurred, and we do not defer any of these costs when product and other revenue is deferred.
Current wording
Cost of product and other revenue as a percentage of product and other revenue was consistent in both the third quarter and first nine months of fiscal 2025 compared with the same periods of fiscal 2024. Costs of product and other revenue are expensed as incurred, and we do not defer any of these costs when product and other revenue is deferred.
Previous wording
Total operating expenses as a percentage of total net revenue decreased in the second quarter of fiscal 2025 compared to the same period of fiscal 2024. Total net revenue for the second quarter of fiscal 2025 increased $577 million, or 17%, while total operating expenses for the quarter increased $271 million, or 13%. The increase in total operating expenses was due to increases of $110 million for marketing expenses, $54 million for staffing, $41 million for outside services, $18 million for sales-related expenses, and $14 million for share-based compensation.
Current wording
Total operating expenses as a percentage of total net revenue decreased in the third quarter of fiscal 2025 compared to the same period of fiscal 2024. Total net revenue for the third quarter of fiscal 2025 increased $1.0 billion, or 15%, while total operating expenses for the quarter increased $275 million, or 11%. The increase in total operating expenses was due to increases of $106 million for marketing expenses, $95 million for staffing expenses, and $28 million for outside services expenses.
Previous wording
Total operating expenses as a percentage of total net revenue was consistent in the first six months of fiscal 2025 compared to the same period of fiscal 2024. Total net revenue for the first six months of fiscal 2025 increased $882 million, or 14%, while total operating expenses for the period increased $549 million, or 13%. The increase in total operating expenses was due to increases of $227 million for marketing expenses, $128 million for staffing, $76 million for outside services, $33 million for sales-related expenses, and $21 million for share-based compensation.
Current wording
Total operating expenses as a percentage of total net revenue decreased in the first nine months of fiscal 2025 compared to the same period of fiscal 2024. Total net revenue for the first nine months of fiscal 2025 increased $1.9 billion, or 14%, while total operating expenses for the period increased $824 million, or 12%. The increase in total operating expenses was due to increases of $332 million for marketing expenses, $223 million for staffing expenses, $106 million for outside services, and $45 million for sales-related expenses.
Previous wording
Interest expense of $120 million and $122 million for the first six months of fiscal 2025 and 2024, respectively, consisted of interest on our senior unsecured notes and secured revolving credit facilities.
Current wording
million for the first nine months of fiscal 2024 consisted of interest on our senior unsecured notes and secured revolving credit facilities.
Previous wording
(1) Interest income for the three and six months ended January 31, 2025 increased compared to the same periods of fiscal 2024 due to higher average investable balances.
Current wording
(1)Interest income for the three and nine months ended April 30, 2025 increased compared to the same periods of fiscal 2024 due to higher average investable balances.
Previous wording
(2) In accordance with authoritative guidance, we record gains and losses associated with executive deferred compensation plan assets in interest and other income and gains and losses associated with the related liabilities in operating expenses. The total amounts recorded in operating expenses for each period are approximately equal to the total amounts recorded in interest and other income in those periods.
Current wording
(2)In accordance with authoritative guidance, we record gains and losses associated with executive deferred compensation plan assets in interest and other income and gains and losses associated with the related liabilities in operating expenses. The total amounts recorded in operating expenses for each period are approximately equal to the total amounts recorded in interest and other income in those periods.
Previous wording
(3) During the three and six months ended January 31, 2025, we recorded a $1 million and $43 million in net losses on long-term investments, respectively.
Current wording
(3)During the nine months ended April 30, 2025, we recorded $43 million in net losses on long-term investments.
Previous wording
For the three and six months ended January 31, 2025, we recognized excess tax benefits on share-based compensation of $29 million and $57 million, respectively, in our provision for income taxes. For the three and six months ended January 31, 2024, we recognized excess tax benefits on share-based compensation of $56 million and $83 million, respectively, in our provision for income taxes.
Current wording
For the three and nine months ended April 30, 2025, we recognized excess tax benefits on share-based compensation of $18 million and $75 million, respectively, in our provision for income taxes. For the three and nine months ended April 30, 2024, we recognized excess tax benefits on share-based compensation of $40 million and $123 million, respectively, in our provision for income taxes.
Previous wording
Our effective tax rates for the three and six months ended January 31, 2025 were approximately 17% and 15%, respectively. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
Current wording
Our effective tax rates for the three and nine months ended April 30, 2025 were approximately 23% and 22%, respectively. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
Previous wording
We recorded $1 million in tax expense on pretax income of $354 million for the three months ended January 31, 2024. Our effective tax rate for the six months ended January 31, 2024 was approximately 4%. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
Current wording
Our effective tax rates for the three and nine months ended April 30, 2024 were approximately 22% and 19%, respectively. Excluding discrete tax items primarily related to share-based compensation, our effective tax rate for both periods was approximately 24%. The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit.
Previous wording
At January 31, 2025, our cash, cash equivalents, and investments totaled $2.5 billion, a decrease of $1.6 billion from July 31, 2024 due to the factors discussed under“Statements of Cash Flows” below. Our primary sources of liquidity have been cash from operations, which entails the collection of accounts receivable for products and services, the issuance of senior unsecured notes, and borrowings under our credit facilities. Our primary uses of cash have been for research and development programs, selling and marketing activities, capital projects, acquisitions of businesses, debt service costs and debt repayment, repurchases of our common stock under our stock repurchase programs, and the payment of cash dividends. As discussed in“Executive Overview – Industry Trends and Seasonality” earlier in this Item 2, our business is subject to significant seasonality. The balance of our cash, cash equivalents, and investments generally fluctuates with that seasonal pattern. We believe the seasonality of our business is likely to continue in the future.
Current wording
At April 30, 2025, our cash, cash equivalents, and investments totaled $6.2 billion, an increase of $2.1 billion from July 31, 2024 driven by cash from operations partially offset by cash used in financing and investing activities. See the discussion of all factors under“Statements of Cash Flows” below. Our primary sources of liquidity have been cash from operations, which entails the collection of accounts receivable for products and services, the issuance of senior unsecured notes, and borrowings under our credit facilities. Our primary uses of cash have been for research and development programs, selling and marketing activities, capital projects, acquisitions of businesses, debt service costs and debt repayment, repurchases of our common stock under our stock repurchase programs, and the payment of cash dividends. As discussed in“Executive Overview – Industry Trends and Seasonality” earlier in this Item 2, our business is subject to significant seasonality. The balance of our
Previous wording
We have historically generated significant cash from operations, and we expect to continue to do so in the future. Our cash, cash equivalents, and investments totaled $2.5 billion at January 31, 2025. None of those funds were restricted and approximately 88% of those funds were located in the U.S.
Current wording
We have historically generated significant cash from operations, and we expect to continue to do so in the future. Our cash, cash equivalents, and investments totaled $6.2 billion at April 30, 2025. None of those funds were restricted and approximately 93% of those funds were located in the U.S.
Previous wording
On January 30, 2025, we entered into a credit agreement with certain lenders providing for a $4.5 billion unsecured short-term revolving credit facility that matures on April 30, 2025 (2025 Credit Facility) to fund a portion of our TurboTax 5-day early refund offering. See Note 6 to the financial statements in Part I, Item 1 of this Quarterly Report for more information. Additionally, our $1.5 billion unsecured revolving credit facility and our commercial paper program are available to us for general corporate purposes. At January 31, 2025, no amounts were outstanding under the unsecured revolving credit facilities or the commercial paper program. See Note 6 to the financial statements in Part I, Item 1 of this Quarterly Report for more information.
Current wording
On January 30, 2025, we entered into a credit agreement with certain lenders providing for a $4.5 billion unsecured short-term revolving credit facility (2025 Credit Facility) to fund a portion of our TurboTax early tax refund offering. We terminated the 2025 Credit Facility on March 3, 2025. See Note 6 to the financial statements in Part I, Item 1 of this Quarterly Report for more information. Our $1.5 billion unsecured revolving credit facility and our commercial paper program are available to us for general corporate purposes. At April 30, 2025, no amounts were outstanding under the unsecured revolving credit facility or the commercial paper program. See Note 6 to the financial statements in Part I, Item 1 of this Quarterly Report for more information.
Previous wording
Our secured revolving credit facilities are available to fund a portion of our loans to qualified small businesses. At January 31, 2025, $804 million was outstanding under our secured revolving credit facilities.
Current wording
Our secured revolving credit facilities are available to fund the lending products and services we offer to qualified small and mid-market businesses. At April 30, 2025, $949 million was outstanding under our secured revolving credit facilities.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
cash, cash equivalents, and investments generally fluctuates with that seasonal pattern. We believe the seasonality of our business is likely to continue in the future.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
and $194 million from Consumer, and $8 million and $16 million from ProTax to other corporate expenses, respectively, to conform to the current presentation.
Previous report — wording carried elsewhere
Desktop Ecosystem revenue decreased $49 million, or 4%, in the first six months of fiscal 2025 compared with the same period of fiscal 2024. The decrease reflects changes we made to our QuickBooks desktop offering beginning in early fiscal 2024 to complete the transition to a recurring subscription model, which more closely aligns our Desktop license and related product updates to our Desktop subscription billing model, partially offset by higher effective prices.
Previous report — wording carried elsewhere
The 2025 Credit Facility includes customary affirmative and negative covenants, including a financial covenant that requires us to maintain a ratio of total gross debt to EBITDA, as defined in the agreement, of not greater than 4.00 to 1.00 as measured on a rolling twelve month basis as of the last day of each fiscal quarter. As of January 31, 2025, we were compliant with all covenants governing the 2025 Credit Facility. At January 31, 2025, no amounts were outstanding under the 2025 Credit Facility.
Previous report — wording carried elsewhere
Facility and the weighted-average interest rate was 5.73%, which includes the fee on the unused committed portion. The outstanding balance is secured by cash and receivables of the subsidiary totaling $1.4 billion as of January 31, 2025.