Petco Health and Wellness Company (WOOF) Q4 2025 earnings summary

Executive summary

• Q4 2024 net revenue was $1.55B–$1.6B, with comp sales up 0.5% and Adjusted EBITDA of $96.1M, exceeding outlook despite a shorter quarter and category softness.

• Full year 2024 net revenue was $6.1B–$6.12B, down 2%–2.2% year-over-year; net loss improved to $101.8M from $1.28B–$1.3B loss last year.

• Leadership team overhaul and cultural transformation are underway, with new executives focused on operational reset, transparency, and long-term growth.

• The company is leveraging scale, omnichannel capabilities, and established services to position as a one-stop pet care destination.

• Positive free cash flow of $49.7M–$50M in FY24 reflects improved operational efficiency.

Financial highlights

• Q4 2024 gross profit was $589M–$589.3M, down 2.8%–3% year-over-year; gross margin rose 180 basis points to 38% due to lapping prior inventory impairment and improved margin management.

• Q4 2024 SG&A expenses were $571.9M (36.8% of sales), up 60 basis points, driven by consulting fees and incentive compensation.

• Adjusted EBITDA for FY24 was $336.5M (margin 5.5%), down from $401.1M (6.4%) in FY23.

• Q4 2024 Adjusted EBITDA margin was 6.2%, down 10 basis points year-over-year.

• Net loss for Q4 2024 was $13.8M, improved from $22.6M loss last year.

Outlook and guidance

• FY 2025 net revenue expected to decline low single digits year-over-year; Adjusted EBITDA guidance is $375M–$390M.

• Q1 2025 net revenue expected to decline low single digits; Adjusted EBITDA guidance is $82M–$83M, up ~9% year-over-year.

• 20–30 net store closures planned in 2025, following 25 closures in 2024.

• FY 2025 capital expenditures expected at $130M–$140M; net interest expense at ~$130M; depreciation & amortization at ~$200M.

• Guidance excludes potential tariff impacts; own brand inventory from China, Canada, and Mexico is about 5% of COGS.