Petco Health and Wellness Company (WOOF) Q3 2025 earnings summary

Executive summary

• Q3 2024 net revenue was $1.51 billion, up 1.2% year-over-year, with comparable sales increasing 1.8%.

• Adjusted EBITDA rose to $81.2 million from $72.2 million year-over-year, slightly ahead of expectations.

• Gross profit increased 4.7% to $575.8 million, with gross margin expanding by 130 basis points to 38.1%.

• Net loss attributable to common stockholders was $16.7 million, or $(0.06) per share, a significant improvement from the prior year, which included a $1.2 billion goodwill impairment.

• Focus remains on strengthening retail fundamentals, cost reduction, and driving efficiencies.

Financial highlights

• Consumables revenue grew 2.7%–3% year-over-year; supplies and companion animal declined 2.8%–3% but improved sequentially.

• Services and other revenue grew 5%, with services specifically up 9% due to strength in vet hospitals, mobile clinics, and grooming.

• SG&A expenses rose 2.2% to $571.8 million, mainly due to higher payroll and benefits.

• Free cash flow for Q3 was $(10.3) million, a significant improvement from $(28.1) million in the prior year.

• Liquidity at quarter-end was $644 million, including $116.7 million in cash and $527.6 million in revolving credit availability.

Outlook and guidance

• Q4 2024 net revenue expected to be approximately $1.55 billion.

• Q4 Adjusted EBITDA guidance is $90–$95 million, including at least $10 million in transformation consulting fees.

• Q4 Adjusted EPS projected between $0.00 and $0.02.

• Full-year guidance includes ~$140 million net interest expense, ~$130 million in capital expenditures, and 273–274.5 million weighted average fully diluted shares.

• Expectation to deliver positive free cash flow for the full year, with continued focus on profitability and cash flow generation.