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May 04

Chewy Q1 2025 Earnings Report

Chewy reported solid performance in Q1 2025 with growth in revenue, active customers, and profitability.

Key Takeaways

Chewy delivered a strong Q1 2025 with $3.12 billion in revenue, $62.4 million in net income, and stable EPS, supported by growth in Autoship customer sales and improved operating metrics.

Total Revenue
$3.12B
Previous year: $2.88B
+8.3%
EPS
$0.35
Previous year: $0.31
+12.9%
Gross Margin
29.6%
Previous year: 29.7%
-0.3%
Adjusted EBITDA
$193M
Previous year: $163M
+18.3%
Adj. EBITDA Margin
6.2%
Previous year: 5.7%
+8.8%
Gross Profit
$924M
Previous year: $791M
+16.7%
Cash and Equivalents
$616M
Previous year: $409M
+50.8%
Free Cash Flow
$48.7M
Total Assets
$3.06B
Previous year: $2.74B
+11.8%

Chewy

Chewy

Forward Guidance

Management highlighted ongoing market share gains and profitability momentum while cautioning about macroeconomic uncertainties.

Positive Outlook

  • Revenue exceeded high-end of guidance range
  • Year-over-year growth in active customers
  • Strong free cash flow generation
  • Improved adjusted EBITDA margin
  • Continued strength in Autoship sales

Challenges Ahead

  • Gross margin slightly declined YoY
  • Net income fell from prior year
  • Macroeconomic risks remain
  • Continued pressure on SG&A and marketing expenses
  • Inventory fluctuations impacting working capital