Costco’s membership fee revenue climbed 10% year-over-year, driven by high renewal rates and executive membership growth.
Costco reported $5.32 billion in membership fee revenue for fiscal 2025, a 10% increase from $4.83 billion the prior year. The retailer’s U.S. and Canada renewal rate reached 92.3%, while worldwide renewal stood at 89.8%, among the highest in subscription-based businesses.
In the third quarter of fiscal 2026, membership fee revenue rose 10.7% year-over-year to $1.37 billion, outpacing overall sales growth. Paid memberships increased 4.1%, with executive memberships growing 9.6%. Renewal rates remained strong at 92.2% in the U.S. and Canada and 89.7% globally.
The recurring revenue stream allows Costco to operate with thinner merchandise margins, reinforcing its competitive advantage in retail.