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Nov 01, 2025
Petco Q3 2025 Earnings Report
Petco posted a modest profit and improved profitability metrics despite a year-over-year sales decline.
Key Takeaways
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.
Revenue by Segment
Forward Guidance
Petco raised its FY2025 adjusted EBITDA outlook while narrowing revenue expectations, reflecting confidence in profitability initiatives amid ongoing sales pressures.
Positive Outlook
- 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.
Challenges Ahead
- 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.
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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