Petco announced its third quarter 2025 financial results with net sales of $1.5 billion, a 3.1% decrease year over year.
Gross profit margin expanded to 38.9% as a percentage of net sales.
Operating income improved to $29.2 million, with GAAP net income at $9.3 million.
The company tightened its full year net sales outlook and increased the midpoint of its adjusted EBITDA range by $6 million.
Petco provided its outlook for the fourth quarter of 2025, expecting a decrease in net sales and an adjusted EBITDA range of $93 million to $95 million.
Q3 2025 Performance
Net sales decreased by 3.1% with a 2.2% decline in comparable sales.
Profitability Improvement
Gross profit margin expanded by approximately 75 basis points, and operating income improved by $25.2 million.
Earnings Outlook
The company upwardly revised its full year 2025 earnings guidance, increasing the midpoint of its expected adjusted EBITDA range by $6 million.
Q4 2025 Expectations
Petco anticipates a decrease in net sales for the fourth quarter of 2025 and projects an adjusted EBITDA range of $93 million to $95 million.
- Petco's third quarter 2025 results reflect a strategic focus on profitability goals and a multi-phased transformation.
- The upward revision of the fiscal 2025 earnings outlook indicates positive momentum towards growth in the coming year.
Petco's financial performance in the third quarter of 2025 demonstrates a positive trend in profitability and sets the foundation for growth in fiscal 2026.