NASDAQ$WOOF

Petco Health & Wellness Company Inc · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

Petco posted a modest profit and improved profitability metrics despite a year-over-year sales decline.

Petco delivered $1.46 billion in revenue and returned to profitability in Q3 2025, driven by operational improvements and cost control. Despite declining comparable and total sales, the company expanded margins and grew adjusted EBITDA.

  • Net sales declined 3.1% YoY, totaling $1.46 billion.
  • GAAP net income reached $9.3 million, reversing a loss from the prior year.
  • Operating income rose to $29.2 million, up from $4 million last year.
  • Adjusted EBITDA grew to $98.6 million, reflecting improved operational efficiency.

Headline financials

Total Revenue

$1.46B

Previous: $1.51B-3.1%
EPS (adj)

$0.03

Previous: -$0.02+250.0%
Capital Expenditures

-$90M

Previous: -$91M+1.2%
Free Cash Flow

-$80.6M

No prior period
Net Income

$9.33M

Previous: -$1.24B+100.8%
Operating Income

$29.2M

Previous: -$1.23B+102.4%
Gross Profit

$569M

Previous: $550M+3.5%
Cash & Equivalents

$237M

No prior period
Total Assets

$5.21B

No prior period

Revenue & EPS history

Petco · Revenue · Quarterly

$1.46B

Q3 2025-3.1%vs Q3 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Petco · $1.49B total across 2 segments · Q1 2025

  • Products
    $1.24B
  • Services and other
    $252M

Forward guidance

Petco raised its FY2025 adjusted EBITDA outlook while narrowing revenue expectations, reflecting confidence in profitability initiatives amid ongoing sales pressures.

Tailwinds

  • Raised midpoint of FY2025 Adjusted EBITDA guidance by $6 million.
  • Q4 Adjusted EBITDA projected between $93M–$95M.
  • Profitability improvements expected to continue into Q4.
  • Net store closures remain modest (~20 for FY).
  • Transformation strategy aimed at setting up growth for FY2026.

Headwinds

  • FY2025 revenue expected to decline by 2.5% to 2.8%.
  • Q4 revenue projected to decline YoY (low single digits).
  • Interest expense remains high (~$125M for FY).
  • Cost pressures from macroeconomic factors persist.
  • Store count reduction signals footprint optimization over expansion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+4.9%

Avg return

Earnings day

+4.3%

Avg return

5 days after

+1.2%

Avg return

30 days after

57%

12 / 21 earnings

Positive

+43.2%

Q2 2024

Best reaction

-21.4%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+34.0%+40.8%+16.2%
Q3 2025+13.9%+2.4%-1.3%
Q2 2025+23.5%+2.5%+8.4%
Q1 2025+4.4%+4.1%-1.0%
Q4 2024+31.6%+21.3%+26.6%
Q3 2024+4.8%-9.8%-19.6%
Q2 2024+43.2%+60.7%+78.2%
Q1 2024+29.4%+46.1%+44.5%
Q4 2023-19.5%-21.5%-32.8%
Q3 2023-21.4%-5.7%-17.7%
Q2 2023-17.1%-17.3%-40.2%
Q1 2023-20.8%-21.2%-13.9%
Q4 2022-20.4%-21.1%-4.8%
Q3 2022+16.9%+15.7%-0.1%
Q2 2022-3.2%-4.6%-23.9%
Q1 2022+5.1%+12.7%+12.3%
Q4 2021+8.1%+4.2%+13.9%
Q3 2021-15.5%-17.5%-19.0%
Q2 2021+11.6%+12.0%+16.5%
Q1 2021-4.0%-6.6%-13.5%
Q4 2020-0.9%-6.1%-3.1%
Q3 2020
Q2 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2020
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
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Q4 2014
Q3 2014
Q2 2014
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Q4 2013
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Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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