Pet Valu (PET) Q4 2025 earnings summary

Executive summary

• Achieved full-year revenue and adjusted EBITDA within original guidance, with fiscal 2025 revenue up 7.1% to $1,175.6 million and net income up 11.9% to $97.8 million, despite macroeconomic headwinds and value-seeking consumer behavior.

• Q4 2025 revenue rose 10.6% to $326.4 million, with adjusted EBITDA of $75 million (23% margin) and net income of $29.4 million.

• Opened 40 new stores in 2025, reaching 863 locations, with 14 new stores in Q4 and 59 renovations, expansions, or relocations.

• Proprietary brands drove deeper customer loyalty, increased unit penetration by 200 basis points, and accounted for 25% of sales.

• Returned a record $121 million to shareholders in 2025 via buybacks and dividends, including an 8% dividend increase to $0.13 per share.

Financial highlights

• Full-year revenue grew over 5% on a 52-week comparable basis; adjusted EBITDA margin held at 22%, with Q4 margin at 22.9%.

• Q4 system-wide sales grew 9.2% to $423.7 million; same-store sales growth was 0.3%.

• Adjusted net income for Q4 was $34 million ($0.49 per diluted share), and for the year $113.2 million ($1.61 per diluted share).

• Free cash flow for 2025 exceeded $104 million, with a 40% conversion rate.

• Net capital expenditures for 2025 were $39 million, down from $52.3 million in 2024.

Outlook and guidance

• Fiscal 2026 revenue growth expected between 2% and 4% (52-week basis), supported by 40 new store openings.

• Same-store sales growth guidance of flat to 2%; adjusted EBITDA margin expected to be flat or slightly expand.

• Adjusted net income per diluted share projected to grow mid to high single digits.

• Capital reinvestment of $35 million planned for 2026, including $20 million CapEx and $15 million transformation costs.

• Free cash flow conversion expected at or above 40%, with most returned to shareholders.