Chewy Q4 EPS Beats by $0.18, EBITDA Margin Expands to 5.0%
Chewy reported Q4 adjusted EPS of $0.27, beating forecasts by $0.18, with revenue rising to $3.26 billion and gross margin expanding by 90 bps to 29.4%. For full-year 2025, net sales reached $12.60 billion, adjusted EBITDA grew $148.7 million to $719.2 million, and free cash flow hit a record $562 million.
1. Strong Q4 Earnings and Revenue Growth
Chewy posted adjusted earnings per share of $0.27 for the fourth quarter, surpassing consensus by $0.18. Revenue reached $3.26 billion, reflecting an 8.1% increase on a normalized 13-week basis compared to the prior year period.
2. Margin Expansion and Profitability Gains
Gross margin expanded by 90 basis points year over year to 29.4%, while adjusted EBITDA margin improved by 120 basis points to 5.0%. Adjusted EBITDA totaled $162.3 million, an increase of $37.8 million over the prior year quarter.
3. Record Annual Financial Highlights
For fiscal 2025, net sales rose 8.3% on a normalized basis to $12.60 billion. Adjusted EBITDA climbed $148.7 million to $719.2 million, with margin up 90 basis points to 5.7%, and free cash flow reached a record $562 million.