Keurig Dr Pepper (KDP) FY2025 10-K Annual Report

Filed: Feb 24, 2026
Consumer Staples
BeveragesSEC EDGAR

Keurig Dr Pepper (KDP) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 24, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Keurig Dr Pepper FY2025 10-K Analysis

Business Overview

  • North American beverage company manufacturing/distributing hot & cold beverages and Keurig single-serve brewing systems across 125+ owned, licensed, and partner brands
  • Aug 2025: announced acquisition of JDE Peet's (Jacobs, L'OR, Peet's brands) with planned post-close separation into two independent public companies — beverage vs coffee
  • 2025 innovations: Dr Pepper Blackberry, 7UP Tropical, Bloom Pop prebiotic CSD partnership; new K-Mini Mate and K-Crema brewers; debut of Keurig Coffee Collective brand with proprietary "Refined Grind" technique
  • Keurig Alta brewer with plastic- and aluminum-free K-Rounds pods in consumer beta testing; commercial launch targeted late 2026
  • Walmart ~16% of consolidated net sales; workforce ~30,600 employees primarily in North America

Management Discussion & Analysis

  • Revenue $16,603M, up $1,252M (+8.2%) YoY; volume/mix +4.8% (GHOST acquisition +3.8pp) and net price realization +3.8%
  • Gross margin 54.2% vs 55.6% (-140 bps); operating margin 21.5% vs 16.9% (+460 bps), latter aided by prior-year impairment charges ($640M goodwill + intangibles) and $225M ABI termination fee comparison
  • Best segment: U.S. Refreshment Beverages — net sales $10,439M (+11.9%), operating margin 28.2% vs 20.1% (+810 bps); worst: U.S. Coffee — operating margin 24.1% vs 27.2% (-310 bps), K-Cup pods -4.8%, appliances -19.9%
  • Capex $486M (vs $563M prior year); dividends $0.92/share vs $0.89; buybacks collapsed to $9M vs $1,110M — capital redeployed toward JDE Peet's acquisition financing ($4B JV investment + $4.5B convertible preferred issuance)
  • Key forward risk: JDE Peet's deal triggered Moody's review for downgrade and S&P CreditWatch Negative; tariff headwinds pressuring COGS; U.S. Coffee category softness ongoing

Risk Factors

  • JDE Peet's acquisition (announced Aug 24, 2025) adds Russia exposure — 6% of JDE Peet's consolidated revenue, subject to Ukraine-conflict sanctions risk
  • Significant debt load post-JDE Peet's close plus Convertible Preferred Stock at 4.75% dividend rate risks credit rating downgrade from Moody's/S&P
  • Brewer supply chain concentrated among small number of Asia-based co-manufacturers — single point of failure for Keurig hardware
  • K-Cup pod partners risk vertical integration or switching to competing manufacturers, compressing gross margins on core revenue stream
  • $44B combined goodwill (~$20B) and intangible assets (~$24B) out of $55B total assets — impairment charges already recorded in FY2025

Keurig Dr Pepper FY2025 Key Financial Metrics
XBRL

Revenue

$16.6B

+8.2% YoY

Net Income

$2.1B

+44.3% YoY

Gross Margin

54.2%

-136bp YoY

Operating Margin

21.5%

+465bp YoY

Net Margin

12.5%

+313bp YoY

ROE

8.1%

+220bp YoY

Total Assets

$55.5B

+3.8% YoY

EPS (Diluted)

$1.53

+45.7% YoY

Operating Cash Flow

$2.0B

-10.3% YoY

Source: XBRL data from Keurig Dr Pepper FY2025 10-K filing on SEC EDGAR. All figures in USD.

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