Chewy (CHWY) Q4 2025 earnings summary

Executive summary

• Q4 and full year 2024 net sales grew 14.9% and 6.4% year-over-year, reaching $3.25 billion and $11.86 billion, respectively, aided by a 53rd week.

• Active customers increased by 431,000 to 20.5 million, marking the first year-over-year growth in eight quarters.

• Autoship program drove recurring revenue, representing 80.6% of Q4 net sales and 79.2% for the year, with full-year autoship sales up 10.6%.

• Adjusted EBITDA for 2024 was $570.5 million (4.8% margin), up 150 basis points year-over-year.

• Returned $943 million to shareholders through share repurchases in 2024.

Financial highlights

• Q4 net sales were $3.25 billion (up 14.9% YoY); full year net sales reached $11.86 billion (up 6.4% YoY).

• Q4 gross margin was 28.5%; full year gross margin was 29.2%, up 80 basis points year-over-year.

• Q4 adjusted net income was $120 million; full year adjusted net income was $446.8 million ($1.04 per diluted share).

• Free cash flow for 2024 was $452.5 million, converting 80% of adjusted EBITDA.

• Ended 2024 with $597 million in cash and no debt; total liquidity of $1.4 billion.

Outlook and guidance

• 2025 net sales expected between $12.3 billion and $12.45 billion, or 6%-7% year-over-year growth (excluding 53rd week impact).

• Full year 2025 adjusted EBITDA margin expected in the range of 5.4%-5.7%.

• Q1 2025 net sales guidance: $3.06 billion–$3.09 billion, up 6–7% year-over-year; adjusted diluted EPS expected at $0.30–$0.35.

• CapEx projected at 1.5%-2% of net sales; 80% of adjusted EBITDA expected to convert to free cash flow.

• Minimal expected impact from tariffs or inflation in 2025.