Chewy Q1 Revenue Climbs 7.7% to $3.36 Billion, EPS Beats by $0.19
CHWY•Chewy posted Q1 adjusted EPS of $0.43, beating estimates by $0.19, on revenue of $3.36B, up 7.7% year-over-year. Adjusted EBITDA rose 31.3% to $253.1M with margin at 7.5%, while net adds were 200,000 customers and free cash flow grew 45.4% to $70.8M.
1. Q1 Financial Highlights
Chewy reported adjusted EPS of $0.43 in Q1, surpassing the $0.24 consensus by $0.19, on revenue of $3.36 billion, a 7.7% increase year-over-year.
2. Profitability and Cash Flow
Adjusted EBITDA grew 31.3% to $253.1 million, expanding margin by 130 basis points to 7.5%, while operating cash flow reached $108.5 million (up 25.6%) and free cash flow climbed 45.4% to $70.8 million.
3. Customer Growth and Autoship
The company added 200,000 net customers, lifting total active customers to 21.5 million, a 3.6% rise year-over-year; Autoship sales increased 10.5% to $2.83 billion, accounting for 84.4% of net sales.
4. Market Reaction
Shares rose 1.8% premarket, with CEO Sumit Singh attributing the resilience and profitability gains to strong execution and continued growth in recurring subscription revenue.
