In Q4 2025, Petco generated net sales of $1.5 billion, a 2.4% decline year-over-year, with comparable sales down 1.6%. Gross margin expanded 37 basis points to 38.3%, operating income surged 83.2% to $31.9 million, adjusted EBITDA rose 10.6% to $106.3 million, and the company closed 7 net stores, ending the quarter with 1,382 locations.

For full-year 2025, net sales totaled $6.0 billion, down 2.5%, and comparable sales fell 1.6%. Gross margin widened 66 basis points to 38.7%, operating income increased to $120.4 million from $7.1 million, net income reached $9.1 million versus a $101.8 million loss, and adjusted EBITDA climbed 21.3% to $408.2 million.

Cash rose by $91.0 million to $256.7 million after a $95.0 million voluntary debt repayment, and cash from operations increased 76.8% to $314.1 million, driving free cash flow up 276.3% to $187.0 million. Total secured debt declined to approximately $1.5 billion from $1.595 billion following a February refinancing that extended maturities to 2031 with a $900 million variable-rate term loan and a $600 million fixed-rate bond.

Petco expects full-year 2026 net sales to be flat to up 1.5%, adjusted EBITDA of $415 million to $430 million, net interest expense around $125 million, capital expenditures of $140 million, depreciation and amortization of $200 million, and net store closures of 15–20. For Q1 2026, net sales are forecast down 1% to flat, with adjusted EBITDA of $92 million to $94 million.