Petco Health and Wellness (WOOF) Q3 2025 Earnings
How Did WOOF Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +1.08%.
Did WOOF Beat Earnings? Q3 2025 Results
Yes. Petco Health and Wellness reported Q3 2025 earnings of $0.03 a share on Nov 25, 2025, beating the $0.02 consensus estimate by 21.5%. Revenue was $1.5B against a $1.5B estimate.
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.
- 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 and Wellness CEO, on the earnings call
What Was Petco Health and Wellness's Outlook in Q3 2025?
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
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.5B | $1.5B | −3.1% |
| Gross Profit | $569.0M | $525.6M | +8.3% |
| Operating Income | $29.2M | $9.8M | +198.3% |
| Net Income | $9.3M | $3.6M | +156.0% |
WOOF Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.