Operating margins have compressed from 6.1% in 2023Q3 to 4.0% in 2025Q4, reflecting the company's inability to overcome structural fulfillment costs and declining consumer engagement.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 9.23B | 10.04B | 10.91B | 12.11B | 14.04B | 14.18B | 13.46B | 14.07B | 10.4B | 10.65B | 9.17B | 10.03B | 10.22B | 9.89B | 9.62B | 8.93B | 8.3B | 8.08B | 7.8B | 7.33B | 6.5B |
| Revenue Growth % | -8.04% | -8.04% | -9.84% | -13.8% | -0.94% | 5.34% | -4.35% | 35.24% | -2.28% | 16.12% | -8.57% | -1.87% | 3.35% | 2.83% | 7.66% | 7.55% | 2.8% | 3.55% | 6.5% | 12.69% | - |
| Cost of Goods Sold | 6.06B | 6.52B | 7.23B | 8.42B | 9.23B | 9.29B | 8.9B | 9.21B | 6.79B | 6.91B | 5.85B | 6.38B | 6.53B | 6.31B | 6.11B | 5.71B | 5.33B | 5.97B | 5.56B | 5.16B | 4.68B |
| COGS % of Revenue | 65.7% | 65% | 66.24% | 69.53% | 65.73% | 65.54% | 66.12% | 65.45% | 65.25% | 64.88% | 63.77% | 63.6% | 63.93% | 63.78% | 63.58% | 63.87% | 64.2% | 73.92% | 71.25% | 70.45% | 72.02% |
| Gross Profit | 3.17B | 3.51B | 3.69B | 3.69B | 4.81B | 4.89B | 4.56B | 4.86B | 3.62B | 3.74B | 3.32B | 3.65B | 3.69B | 3.58B | 3.5B | 3.23B | 2.97B | 2.11B | 2.24B | 2.17B | 1.82B |
| Gross Margin % | 34.3% | 35% | 33.76% | 30.47% | 34.27% | 34.46% | 33.88% | 34.55% | 34.75% | 35.12% | 36.23% | 36.4% | 36.07% | 36.22% | 36.42% | 36.13% | 35.8% | 26.08% | 28.75% | 29.55% | 27.98% |
| Gross Profit Growth % | -9.88% | -4.67% | -0.11% | -23.35% | -1.49% | 7.17% | -6.21% | 34.47% | -3.32% | 12.55% | -8.99% | -0.98% | 2.93% | 2.26% | 8.52% | 8.54% | 41.1% | -6.06% | 3.6% | 19.02% | - |
| Operating Expenses | 2.81B | 2.83B | 3.07B | 3.26B | 3.34B | 3.31B | 4.38B | 3.54B | 2.57B | 2.77B | 2.15B | 2.44B | 2.53B | 2.41B | 2.37B | 2.12B | 1.93B | 1.2B | 1.13B | 1.03B | 903M |
| OpEx % of Revenue | 30.43% | 28.15% | 28.14% | 26.94% | 23.8% | 23.38% | 32.51% | 25.14% | 24.72% | 26.03% | 23.47% | 24.37% | 24.77% | 24.33% | 24.59% | 23.69% | 23.26% | 14.87% | 14.48% | 14.13% | 13.89% |
| Selling, General & Admin | 1.74B | 1.71B | 1.87B | 1.95B | 1.93B | 1.89B | 1.76B | 1.9B | 1.19B | 1.19B | 875M | 1.07B | 1.14B | 943M | 858M | 746M | 1.37B | 584M | 594M | 544M | 454M |
| SG&A % of Revenue | 18.81% | 17.02% | 17.12% | 16.07% | 13.74% | 13.3% | 13.06% | 13.48% | 11.42% | 11.18% | 9.54% | 10.72% | 11.16% | 9.54% | 8.92% | 8.35% | 16.45% | 7.23% | 7.61% | 7.43% | 6.98% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.07B | 1.12B | 1.2B | 1.32B | 1.41B | 1.43B | 2.62B | 1.64B | 1.38B | 1.58B | 1.28B | 1.37B | 1.39B | 1.46B | 1.51B | 1.37B | 566M | 617M | 536M | 491M | 449M |
| Operating Income | 357M | 688M | 614M | 428M | 1.47B | 1.57B | 184M | 1.32B | 1.04B | 968M | 1.17B | 1.21B | 1.16B | 1.18B | 1.14B | 1.11B | 1.04B | 906M | 1.11B | 1.13B | 916M |
| Operating Margin % | 3.87% | 6.85% | 5.63% | 3.54% | 10.47% | 11.09% | 1.37% | 9.41% | 10.03% | 9.09% | 12.76% | 12.03% | 11.3% | 11.88% | 11.82% | 12.44% | 12.53% | 11.21% | 14.27% | 15.42% | 14.09% |
| Operating Income Growth % | -48.11% | 12.05% | 43.46% | -70.9% | -6.42% | 754.35% | -86.1% | 26.94% | 7.75% | -17.27% | -2.99% | 4.42% | -1.7% | 3.34% | 2.34% | 6.72% | 14.9% | -18.6% | -1.5% | 23.36% | - |
| EBITDA | 755M | 1.07B | 1.02B | 909M | 2.01B | 2.13B | 790M | 1.96B | 1.77B | 1.84B | 1.83B | 1.86B | 1.78B | 1.77B | 1.78B | 1.68B | 1.61B | 1.47B | 1.65B | 1.62B | 1.36B |
| EBITDA Margin % | 8.18% | 10.67% | 9.35% | 7.51% | 14.3% | 15.05% | 5.87% | 13.94% | 16.99% | 17.3% | 19.93% | 18.51% | 17.46% | 17.86% | 18.49% | 18.83% | 19.35% | 18.16% | 21.14% | 22.13% | 21% |
| EBITDA Growth % | -29.51% | 4.9% | 12.32% | -54.73% | -5.9% | 170.13% | -59.71% | 10.92% | -4.02% | 0.82% | -1.56% | 4.04% | 1.02% | -0.67% | 5.71% | 4.67% | 9.54% | -11.04% | 1.73% | 18.75% | - |
| D&A (Non-Cash Add-back) | 398M | 383M | 407M | 481M | 537M | 562M | 606M | 637M | 725M | 874M | 657M | 650M | 629M | 591M | 641M | 571M | 566M | 561M | 536M | 491M | 449M |
| EBIT | -2.09B | -823M | 517M | -1.85B | 1.11B | 1.46B | -248M | 1.26B | 1.41B | 1.45B | 1.26B | 1.19B | 1.14B | 1.25B | 1.25B | 1.55B | 963M | 427M | 1.11B | 1.13B | 916M |
| Net Interest Income | -496M | -468M | -451M | -456M | -468M | -408M | -374M | -381M | -355M | -363M | -283M | -312M | -290M | -322M | -317M | -515M | -504M | -1.64B | -421M | -377M | -336M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4M | 8M | 22M | 44M | 40M | 35M |
| Interest Expense | 496M | 468M | 451M | 456M | 468M | 408M | 374M | 381M | 355M | 363M | 283M | 312M | 290M | 322M | 317M | 515M | 512M | 1.67B | 465M | 417M | 371M |
| Other Income/Expense | -2.94B | -1.98B | -548M | -2.74B | -833M | -521M | -806M | -441M | 7M | 123M | -192M | -326M | -309M | -243M | -204M | -79M | -590M | -2.14B | -337M | -287M | -342M |
| Pretax Income | -2.58B | -1.29B | 66M | -2.31B | 638M | 1.05B | -622M | 883M | 1.05B | 1.09B | 978M | 880M | 846M | 932M | 933M | 1.03B | 451M | -1.24B | 776M | 843M | 574M |
| Pretax Margin % | -27.98% | -12.86% | 0.6% | -19.06% | 4.54% | 7.41% | -4.62% | 6.28% | 10.09% | 10.25% | 10.67% | 8.78% | 8.28% | 9.43% | 9.7% | 11.55% | 5.43% | -15.32% | 9.95% | 11.51% | 8.83% |
| Income Tax | -185M | -41M | 160M | 224M | 217M | -203M | -217M | 60M | -985M | 316M | 304M | 306M | 346M | 357M | 353M | 160M | 154M | -493M | 306M | 210M | 228M |
| Effective Tax Rate % | 7.16% | 3.18% | 242.42% | -9.71% | 34.01% | -19.31% | 34.89% | 6.8% | -93.81% | 28.96% | 31.08% | 34.77% | 40.9% | 38.3% | 37.83% | 15.5% | 34.15% | 39.82% | 39.43% | 24.91% | 39.72% |
| Net Income | -2.44B | -1.29B | -145M | -2.59B | 340M | 1.2B | -456M | 916M | 2.44B | 1.24B | 640M | 520M | 438M | 466M | 905M | 1.93B | 258M | -781M | 441M | 511M | 298M |
| Net Margin % | -26.42% | -12.85% | -1.33% | -21.43% | 2.42% | 8.44% | -3.39% | 6.51% | 23.46% | 11.6% | 6.98% | 5.19% | 4.29% | 4.71% | 9.41% | 21.59% | 3.11% | -9.67% | 5.65% | 6.98% | 4.58% |
| Net Income Growth % | -89.07% | -789.66% | 94.41% | -862.94% | -71.57% | 362.28% | -149.78% | -62.47% | 97.65% | 92.97% | 23.08% | 18.72% | -6.01% | -48.51% | -53.06% | 647.29% | 133.03% | -277.1% | -13.7% | 71.48% | - |
| Net Income (Continuing) | -2.4B | -1.25B | -94M | -2.53B | 421M | 1.25B | -405M | 823M | 2.04B | 775M | 674M | 574M | 500M | 575M | 580M | 872M | 297M | -745M | 441M | 598M | 298M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 141M | 452M | 499M | 0 | -15M | -17M | -46M | 378M | 1.1B | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 83M | 86M | 104M | 113M | 136M | 135M | 132M | 120M | 99M | 99M | 88M | 101M | 124M | 149M | 134M | 129M | 129M | 154M | 107M | 96M | 232M |
| EPS (Diluted) | -302.94 | -162.88 | -18.73 | -341.32 | 40.96 | 142.99 | -53.77 | 98.49 | 272.43 | 100.24 | 69.63 | 46.29 | 44.42 | 130.99 | 75.50 | 156.50 | 280.23 | 141.77 | 137.45 | 58.53 | 5.50 |
| EPS Growth % | -85.99% | -769.62% | 94.51% | -933.3% | -71.35% | 365.93% | -154.59% | -63.85% | 171.78% | 43.96% | 50.42% | 4.21% | -66.09% | 73.5% | -51.76% | -44.15% | 97.67% | 3.14% | 134.84% | 964.18% | - |
| EPS (Basic) | -302.94 | -162.88 | -18.73 | -341.32 | 42.18 | 144.71 | -53.77 | 99.13 | 274.27 | 101.23 | 70.42 | 47.02 | 45.05 | 133.28 | 76.50 | 158.50 | 280.23 | 142.12 | 137.99 | 58.53 | 5.50 |
| Diluted Shares Outstanding | 8.05M | 7.92M | 7.74M | 7.6M | 8.3M | 8.42M | 8.48M | 9.3M | 8.96M | 12.32M | 12.48M | 11.6M | 11.28M | 11.68M | 12.04M | 12.1M | 23.06M | 24.54M | 15.38M | 15.87M | 56.06M |
| Basic Shares Outstanding | 8.05M | 7.92M | 7.74M | 7.6M | 8.06M | 8.32M | 8.48M | 9.24M | 8.9M | 12.2M | 12.34M | 11.42M | 11.12M | 11.48M | 11.9M | 11.92M | 23.06M | 24.48M | 15.32M | 15.87M | 56.06M |
| Dividend Payout Ratio | - | - | - | - | 147.94% | 104.6% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Secular linear television decline
As indicated by recent financial filings, QVCGP has experienced a consistent multi-quarter revenue decline, with the most recent 2025Q4 period showing a 9.1% year-over-year contraction, reflecting the ongoing erosion of the company's primary linear television customer acquisition funnel and broader consumer spending headwinds.
The persistent negative growth trajectory suggests that the company's digital migration efforts are currently insufficient to offset the structural decay of its legacy cable distribution model. Investors should monitor whether the revenue decline stabilizes as the company pivots away from underperforming assets like Zulily.
Based on reported figures, gross margins have fluctuated between 32.9% and 36.4% over the last ten quarters, suggesting that promotional pricing and rising fulfillment costs are creating a ceiling on profitability that the company struggles to overcome in a competitive retail environment.
The volatility in gross margins implies a lack of pricing power, likely exacerbated by the high return rates inherent in the video-commerce model. This margin profile appears vulnerable to further inflationary pressure on logistics and shipping, which remain critical components of the company's cost structure.
According to the income statement data, operating margins have compressed from 6.1% in 2023Q3 to 4.0% in 2025Q4, indicating that the company is failing to achieve meaningful operating leverage despite ongoing efforts to streamline its cost base through initiatives like Project Athens.
The inability to scale operating income faster than gross profit suggests that fixed costs, particularly broadcasting and carriage fees, remain disproportionately high relative to the shrinking revenue base. This trend warrants further investigation into whether the current cost structure is sustainable without a significant shift in distribution strategy.
As reported in financial statements, QVCGP has recorded significant net losses, including a massive $2.2 billion loss in 2025Q2, which appears largely driven by non-cash impairment charges that mask the underlying operational performance of the core retail business segments.
The frequent divergence between operating income and net income suggests that historical acquisitions continue to weigh on the balance sheet through goodwill write-downs. Analysts should focus on operating cash flow rather than net income to gauge the true health of the company's ongoing retail operations.
While management emphasizes a transition to digital platforms, the persistent revenue decline and negative net margins suggest that the market's pricing of QVCGP as a 'melting ice cube' may be a rational response to the rapid erosion of its traditional linear television distribution channel.
Short-term improvements in operating income may be insufficient to address the looming debt maturity wall, which could force a capital structure restructuring. The bull case for a 'video-commerce-as-a-service' pivot remains speculative and lacks clear evidence of material contribution to the bottom line in the current data.
Quick answers to the most common questions about buying QVCGP stock.
For fiscal year 2025, QVC Group Inc. (QVCGP) reported total revenue of $9.23B. This represents a 42.0% increase compared to $6.50B in 2005.
QVC Group Inc. (QVCGP) reported a net loss of $2.44B for the fiscal year ending 2025.
QVC Group Inc. (QVCGP) reported an operating income of $357.0M, resulting in an operating profit margin of 3.9%. This margin reflects the operational efficiency of the business before interest and taxes.
QVC Group Inc. (QVCGP) generated $3.17B in gross profit for the year, representing a gross profit margin of 34.3%. This demonstrates the company's core pricing power and production efficiency.