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Aug 02, 2025
Petco Q2 2025 Earnings Report
Petco returned to profitability in Q2 2025 with improved margins despite a decline in sales.
Key Takeaways
Petco posted a modest net profit in Q2 2025 as it improved operating income and gross margins. While sales declined year-over-year, strong execution led to raised full-year earnings guidance.
Net sales declined 2.3% YoY to $1.49 billion
GAAP net income improved to $13.97 million from a loss of $24.82 million
Operating income jumped to $43 million, up $40.6 million YoY
Adjusted EBITDA increased to $113.86 million, with a margin of 7.6%
Revenue by Segment
Forward Guidance
Petco raised its FY25 earnings outlook while maintaining its sales outlook, expecting adjusted EBITDA between $385M–$395M.
Positive Outlook
- Raised full-year 2025 earnings outlook
- Q3 adjusted EBITDA expected between $92M–$94M
- Solid operating income improvement YoY
- Gross margin expanded 120 basis points
- First half of FY25 created a foundation for long-term transformation
Challenges Ahead
- Net sales projected to decline low single digits YoY
- Comparable sales still down YoY
- Inventory remains elevated at over $600M
- Operating lease liabilities remain high
- No non-GAAP EPS guidance provided
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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