Intuit's (INTU) Q2 Fiscal 2025 results demonstrated strong financial performance, with total net revenue increasing by 17% year-over-year to $3.963 billion. This growth was driven by significant contributions from the Global Business Solutions and Credit Karma segments, as well as robust performance in the Online Ecosystem. Operating income for the quarter rose by 61% to $593 million, reflecting both revenue growth and controlled expense increases. Net income for Q2 FY25 increased by 33% year-over-year to $471 million, while diluted net income per share rose to $1.67 from $1.25 in Q2 FY24, representing a 34% increase. This improvement was primarily attributed to higher operating income, partially offset by increased income tax expenses.

‍Segment performance highlights include a 19% revenue growth in the Global Business Solutions segment, reaching $2.671 billion, driven by a 21% increase in Online Ecosystem revenue. The Credit Karma segment also performed exceptionally well, with revenue increasing by 36% year-over-year to $511 million, supported by growth in credit card, personal loan, and auto insurance verticals.

The Online Ecosystem revenue grew by 21% year-over-year in Q2 FY25, driven by higher effective prices, customer growth, and a shift toward higher-priced offerings. QuickBooks Online Accounting revenue increased by 22%, while Online Services revenue rose by 19%, supported by growth in payroll, payments, and Mailchimp offerings. The Desktop Ecosystem also showed improvement, with revenue increasing by 14% year-over-year to $633 million in Q2 FY25. This growth was attributed to higher effective prices and the transition to a recurring subscription model for QuickBooks desktop offerings.

Operating expenses for Q2 FY25 increased by 13% year-over-year to $2.433 billion, but as a percentage of total net revenue, they decreased from 64% in Q2 FY24 to 61% in Q2 FY25. The increase in expenses was driven by higher marketing costs, staffing, and share-based compensation.For the first six months of FY25, total net revenue increased by 14% year-over-year to $7.246 billion, while operating income rose by 28% to $864 million. Net income for the six-month period grew by 12% to $668 million, and diluted net income per share increased to $2.36 from $2.10 in the prior year period.

The company generated $1.431 billion in net cash from operating activities during the first six months of FY25, a significant increase from $516 million in the same period of FY24. This improvement was driven by higher net income and favorable changes in operating assets and liabilities.Intuit's liquidity position remains strong, with $2.459 billion in cash, cash equivalents, and investments as of January 31, 2025. The company also has access to a $4.5 billion unsecured short-term revolving credit facility and a $1.5 billion commercial paper program, which was temporarily increased to $2.0 billion in February 2025.

The company continued its shareholder return initiatives, repurchasing 2.0 million shares of common stock during the first six months of FY25 and paying $598 million in cash dividends. The Board of Directors also declared a quarterly cash dividend of $1.04 per share, payable in April 2025.