Companies /Consumer Cyclical

Petco Health and Wellness Co Inc - Class A

NASDAQ: WOOF Specialty Retail
$2.23
▼ $0.05 (−1.98%) today
Markets open · 3:03pm ET

Q3 2025 Earnings

Reported Nov 25, 2025, 4:10pm ET · SEC source
$0.03
Beat +21.46%
EPS · est. $0.02 GAAP
$1.5B
Miss −0.34%
Revenue · est. $1.5B
−17.6%
Trailing market
WOOF vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−8%0+8%+16%Nov 25Nov 26report 4:10pm ETearnings+0.7%+6.6%
−8%0+8%+16%Nov 25Nov 26earnings+0.7%+6.6%
WOOF +6.6%S&P 500 +0.7%
−8%0+8%+16%Nov 25Nov 26report 4:10pm ETearnings+1.0%+6.6%
−8%0+8%+16%Nov 25Nov 26earnings+1.0%+6.6%
WOOF +6.6%NASDAQ +1.0%
−8%0+8%Nov 24Dec 3report 4:10pm ETearnings+1.3%−2.5%
−8%0+8%Nov 24Dec 3earnings+1.3%−2.5%
WOOF −2.5%S&P 500 +1.3%
−8%0+8%Nov 24Dec 3report 4:10pm ETearnings+2.4%−2.5%
−8%0+8%Nov 24Dec 3earnings+2.4%−2.5%
WOOF −2.5%NASDAQ +2.4%
+14.48%
Day of report
−5.88%
Next session
−10.00%
One week
−16.47%
30 days

S&P 500 over the same 30 days: +1.08%.

Did WOOF Beat Earnings? Q3 2025 Results

Petco Health & Wellness delivered a profitability-driven quarter in Q3 fiscal 2025, posting GAAP diluted EPS of $0.03, beating the $0.02 consensus estimate by 21.46%, even as revenue came in fractionally light at $1.46 billion against a $1.47 billion estimate, declining 3.1% year over year. The real story was margin expansion: gross profit margin widened approximately 75 basis points to 38.9% of net sales, helping swing GAAP net income to $9.33 million from a loss of $16.67 million a year ago, while SG&A fell to $539.82 million from $571.78 million, reflecting the cost discipline at the center of CEO Joel Anderson's multi-phased transformation. Adjusted EBITDA climbed to $98.56 million, with margin expanding to 6.7% from 5.4%, and free cash flow surged to $60.65 million from negative $10.29 million in the prior year. Looking ahead, Petco raised the midpoint of its full-year adjusted EBITDA guidance by $6 million to a range of $395 million to $397 million, while tightening its net sales outlook to a decline of 2.5% to 2.8%, positioning the company for a targeted return to growth in fiscal 2026.

Key Takeaways
  • Gross profit margin expansion of approximately 75 basis points to 38.9%
  • SG&A expense reduction from $571.8 million to $539.8 million year over year
  • Operating income improvement of $25.2 million year over year
  • Adjusted EBITDA increased $17.3 million to $98.6 million
  • Adjusted EBITDA margin expansion to 6.7% from 5.4%
  • Mexico joint venture EBITDA contribution of $11.7 million, up from $10.0 million

“Once again, we delivered on Petco's profitability goals as we continue to execute on our multi-phased transformation.”

Petco Health & Wellness CEO, on the earnings call

Forward Guidance & Outlook

Petco upwardly revised its full year fiscal 2025 earnings guidance, increasing the midpoint of its adjusted EBITDA range by $6 million to $395-$397 million. Full year net sales are expected to decline 2.5%-2.8%, with net interest expense of approximately $125 million, capital expenditures of $125-$130 million, D&A of approximately $200 million, and approximately 20 net store closures. For Q4 2025, net sales are expected to be down low single digits year over year with adjusted EBITDA of $93-$95 million. Assumptions include tariffs remaining at November 25, 2025 levels and generally consistent economic conditions.

WOOF YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$500.0M$1.0B$1.5B$1.5B$1.5BRevenue$525.6M$569.0MGross Profit$9.8M$29.2MOperating Income$3.6M$9.3MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

WOOF Revenue by Segment

Products$1.2B−4.2%
Services and Other$254.8M+2.6%

Figures from SEC filings and company reports. Not investment advice.