Pet Valu (PET) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $291 million, up 4% year-over-year, driven by network expansion, e-commerce momentum, and increased wholesale and franchise revenues.

• Adjusted EBITDA was $65 million (22.4% margin), up 8% year-over-year, with net income rising 14.3% to $24.9 million.

• Free cash flow improved to $33 million, up from $27 million last year, and $38 million was returned to shareholders via dividends and share repurchases.

• Seven new stores opened in Q2, bringing the total to 877 locations, with 71% franchised, and 7 locations renovated, expanded, or relocated.

• Digital channel growth was strong, with record adoption of online delivery, Click & Collect, and AutoShip subscription service.

Financial highlights

• System-wide sales grew 2% to $377.3 million, with Q2 revenue at $291 million, up 3.6% year-over-year.

• Gross margin was 32.5%, down from 33.6% last year, but up 110 bps sequentially from Q1.

• Adjusted net income per diluted share was $0.41, up 7.9% year-over-year.

• SG&A expenses (excluding share-based comp and non-indicative costs) were $49 million or 16.8% of revenue, a 150 bps improvement year-over-year.

• Inventory ended at $134 million, down 5% year-over-year.

Outlook and guidance

• Full-year 2026 guidance reiterated: revenue growth of 2–4%, adjusted EBITDA margin around 21%, and adjusted net income per share similar to last year.

• About 40 new store openings planned, with ~$35 million in business reinvestment, including $20 million in net capital expenditures and $15 million in transformation costs.

• Macro uncertainties, especially fuel and trade, remain, but management is confident in achieving guidance through controllable actions.