Chewy Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.12%.
Did CHWY Beat Earnings? Q4 2025 Results
Chewy capped its fiscal year with a standout fourth quarter, posting adjusted diluted EPS of $0.28 against a consensus estimate of $0.20, a 40.00% beat, while revenue of $3.25 billion topped expectations by 1.55% and grew 14.1% year over year. The single most important engine behind those results was the explosive momentum in Autoship, Chewy's subscription program, which accounted for 80.6% of Q4 net sales after growing 21.2% to $2.62 billion, up from a 76.4% share a year earlier, demonstrating the deep loyalty embedded in its customer base. Adjusted EBITDA jumped 44.0% to $124.53 million, expanding margins even as the quarter benefited from a 14th calendar week. For the full fiscal year, net sales reached $11.86 billion, with share repurchases totaling roughly $943 million underscoring management's confidence in the business. CEO Sumit Singh signaled that momentum has carried into fiscal 2025, with continued investment in innovation across the pet category expected to sustain the company's growth trajectory.
- Net sales grew 14.9% YoY in Q4, aided by the 14th week in the quarter
- Gross margin expanded 30 basis points YoY to 28.5% in Q4
- Adjusted EBITDA margin expanded 70 basis points YoY to 3.8% in Q4
- Active customers grew 2.1% YoY to 20,514 thousand
- Net sales per active customer increased 4.1% YoY to $578
- Autoship customer sales as a percentage of net sales rose to 80.6% from 76.4% YoY
- Adjusted net income increased 49.5% YoY to $120.0 million in Q4
- Free cash flow surged 133.2% YoY to $156.6 million in Q4
“Topline growth and profitability exceeded the high-end of our guidance ranges for both the fourth quarter and full year 2024. Our performance was underpinned by strong active customer growth, and compelling Autoship customer loyalty. As we embark on 2025, the momentum in the business has remained strong and we remain committed to executing Chewy's strategic priorities as we continue to drive innovation across the pet category.”
Chewy CEO, on the earnings call
Forward Guidance & Outlook
CEO Sumit Singh indicated that momentum in the business has remained strong heading into fiscal 2025 and the company remains committed to executing Chewy's strategic priorities while continuing to drive innovation across the pet category.
CHWY YoY Financials
CHWY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.