QVC Group Inc.

Q3 2025 total revenue declined 6% in constant currency. QxH revenue fell 7%, QVC International revenue fell 5% in constant currency, and Cornerstone revenue fell 8%. At QxH, adjusted OIBDA decreased 26% and adjusted OIBDA margin contracted 245 basis points; gross margin declined about 110 basis points. At QVC International, adjusted OIBDA decreased 21% and adjusted OIBDA margin declined 210 basis points; gross margin decreased 130 basis points. For the first 9 months of 2025, free cash flow was a use of $184 million versus a source of $102 million last year. As of September 30, 2025, net debt was $4.8 billion, total cash was $1.8 billion, and leverage was 4.2x excluding Cornerstone, versus a 4.5x covenant threshold. The company did not give explicit next-quarter or full-year revenue/EPS guidance on this call; instead, management said it is continuing to invest in social and streaming, manage costs, and evaluate proactive financial and strategic alternatives.

David Rawlinson framed the quarter as progress against a still-challenging backdrop, repeatedly pointing to the company’s WIN growth strategy and the shift toward live social shopping. He said social and streaming are gaining traction, with TikTok Shop, FAST channels and original content helping offset part of the linear TV decline. He also highlighted cost actions, workforce reductions, HSN’s move to West Chester, the planned sale of St. Petersburg properties, and sourcing diversification away from China.

Bill Wafford detailed the operating pressure: QxH revenue fell 7% from lower unit volume and shipping and handling, while adjusted OIBDA dropped 26% and margin contracted 245 basis points. He attributed the gross margin decline to fulfillment pressure, sales deleverage and lower product margins, with tariffs and higher promotions pressuring product margins; QVC International saw a 5% constant-currency revenue decline and a 21% adjusted OIBDA decline, and Cornerstone’s margin fell about 315 basis points on sales deleverage and tariff pressure. On cash and capital structure, he said 9M free cash flow was a use of $184 million, net debt was $4.8 billion, cash was $1.8 billion, and the revolver had $2.9 billion drawn; he also noted the incentive compensation program change had a material 2025 OIBDA impact and is now expensed going forward.

There was no traditional analyst Q&A in the transcript. The most notable management commentary was the emphasis on ongoing work to manage costs, improve the balance sheet and evaluate “proactive financial and strategic alternatives,” with no decisions made yet. Management also addressed tariffs, saying they continue to monitor rate changes and that sourcing diversification is progressing, including reducing China penetration by 8% to 10%.