Pet Valu (PET) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered strong results with revenue up 6% to $281 million and same-store sales up 2.6%, driven by both basket size and transaction growth.

• Adjusted EBITDA rose 4% to $60 million, and net income increased to $21.8 million, up 22.3% year-over-year.

• Opened 3 new stores in Q2 (10 year-to-date), reaching 833 locations, with ongoing renovations and expansions.

• Completed $100 million multi-year supply chain transformation, consolidating to three modern DCs and doubling capacity.

• CEO succession plan announced: Greg Ramier to succeed Richard Maltsbarger in September 2025.

Financial highlights

• System-wide sales reached $370 million, up 4.6%; revenue up 6% to $281 million in Q2.

• Gross profit rose 7% to $94 million; gross margin (excluding non-recurring costs) was 33.6%, up 30 bps year-over-year.

• Adjusted EBITDA reached $60 million (up 4%), representing 21.4% of sales.

• Adjusted net income per diluted share was $0.38, up 6% year-over-year.

• Free cash flow of $27 million in Q2, $42 million year-to-date, with a 45% trailing four-quarter conversion rate.

Outlook and guidance

• FY2025 revenue guidance raised to $1.18–$1.21 billion (8–10% growth), with 40 new store openings and same-store sales growth of 1–4%.

• Adjusted EBITDA guidance increased to $257–$262 million (4–6% growth).

• Adjusted net income per diluted share expected at $1.63–$1.68 (4–7% growth), absorbing $0.12 of incremental DC-related expenses.

• Net capital expenditures forecasted at $45 million, up from $35 million, to support culinary rollout.

• Guidance incorporates higher wholesale sales penetration and $13 million pre-tax transformation costs excluded from adjusted metrics.