Pet Valu (PET) Q3 2025 earnings summary

Executive summary

• Achieved 2.3% same-store sales growth and 4.9% revenue growth year-over-year in Q3 2025, with system-wide sales reaching $373.9 million and revenue at $289.5 million.

• Net income rose 7.4% to $24.9 million, while Adjusted EBITDA was $63.6 million (22% margin), and free cash flow for the quarter was $25 million.

• Opened 16 new stores in Q3, reaching 849 locations, and completed 72 renovations, expansions, or relocations.

• Officially opened a new 295,000 sq. ft. Calgary distribution centre, completing supply chain transformation and unlocking distribution cost leverage.

• Recognized with industry awards for franchising leadership and as an employer of choice.

Financial highlights

• System-wide sales grew 4.4% to $373.9 million; same-store sales increased 2.3% year-over-year.

• Q3 revenue was $289.5 million, up 4.9%; gross profit reached $95.6 million, up 6.9% with a 33.0% margin.

• Adjusted EBITDA was $63.6 million (22% margin); net income was $24.9 million, up from $23 million last year.

• Adjusted net income was $27.6 million ($0.40 per diluted share), down from $29.9 million ($0.41) last year.

• Free cash flow in Q3 was $25 million; year-to-date $67 million, with a 43% conversion rate.

Outlook and guidance

• 2025 revenue expected between $1.175–1.185 billion, with about 40 new stores and ~2% same-store sales growth.

• Adjusted EBITDA guidance: $257–260 million; adjusted net income per diluted share: $1.63–1.66.

• Capital expenditures for 2025 expected at ~$45 million; free cash flow conversion to remain around 40%.

• 2026 outlook remains cautious due to macro uncertainty, with industry growth expected below long-term averages; focus remains on market share gains and continued store expansion.