Chewy (CHWY) Q1 2026 earnings summary

Executive summary

• Q1 2025 net sales grew 8.3% year-over-year to $3.12 billion, surpassing guidance and driven by both new and existing customers across core consumables, health, and hardgoods categories.

• Active customers reached 20.8 million, up 3.8% year-over-year, with sequential growth of 240,000 and improved retention.

• Autoship customer sales hit $2.56 billion (82.2% of net sales), up 14.8% year-over-year, outpacing overall sales growth.

• Adjusted EBITDA was $192.7 million (6.2% margin), up 18.3% year-over-year; free cash flow was $48.7 million.

• Strategic initiatives advanced, including Chewy Vet Care expansion, Chewy+ membership rollout, and growth in Sponsored Ads.

Financial highlights

• Net sales: $3.12 billion, up 8.3% year-over-year.

• Gross margin: 29.6%, up 60 basis points year-over-year after adjusting for prior year one-time items.

• Adjusted EBITDA: $192.7 million (6.2% margin), up 50 basis points year-over-year.

• Adjusted net income: $148.9 million, up $11.8 million year-over-year; adjusted diluted EPS: $0.35.

• Free cash flow: $48.7 million; $23.2 million deployed for share repurchases.

Outlook and guidance

• Q2 2025 net sales expected between $3.06–$3.09 billion (7–8% year-over-year growth).

• Full year 2025 net sales outlook maintained at $12.3–$12.45 billion (6–7% year-over-year growth, excluding 53rd week impact).

• Full year adjusted EBITDA margin guidance: 5.4–5.7%, with 75 basis points of margin expansion at midpoint.

• Q2 adjusted diluted EPS guidance: $0.30–$0.35.

• Management highlighted strong momentum, exceeding net sales guidance and continued market share gains.