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