Hydatidosis is cystic parasitosis caused by a larval stage of Echinococcus granulosus with immense economic and public health significance. A cross-sectional study was conducted from November 2016 to April 2017 in the city municipal abattoir of Southern Ethiopia with the aim of determining prevalence and cyst fertility and estimating financial losses associated with organ condemnation. The visceral organs of about 400 cattle were examined for hydatid cysts after slaughter. Postmortem examination, cyst characterization, and direct financial loss estimations were carried out. From the total 400 cattle examined, 208 (52%) were found positive for hydatid cyst infection in one or more of their organs. A total of about 395 hydatid cysts were collected from different organs of the infected cattle. Anatomical distribution of the cysts indicated that around 245 (62.03 %) were found in lung, 91 (23.04%) in liver, 26 (6.58%) in heart, 21 (5.32%) in spleen, and 12(3.04%) in kidney. From the total 395 cysts collected, 166 (42.03%) were found fertile and 229 (57.97%) nonfertile. From the total fertile cysts, 70 (42.17%) were found to be viable and 96 (57.83%) nonviable. Furthermore, from the total nonfertile cysts, 204 (89.08%) and 25 (10.91%) were sterile and calcified, respectively. Distribution of cyst calcification was higher in liver and fertility rate was higher in the cysts of lungs. The statistical analysis showed that the prevalence of hydatidosis was found to be significantly associated with age of the studied animals (P<0.05). However, there was no significant association (P>0.05) between the prevalence of bovine hydatidosis and other risk factors such as sex, breed, body condition, and origin of animals. The annual financial loss calculated from organ condemnation was estimated about 58,114.62 USD. This study revealed that hydatidosis is a highly prevalent disease in the study area with a huge economic losses. Therefore, there is a need for immediate intervention by breaking the life cycle of the parasite to alleviate its economic impact and zoonotic risks to humans.