Petco (NASDAQ:WOOF) Posts Q4 CY2025 Sales In Line With Estimates, Stock Jumps 14.2%
Pet-focused retailer Petco (NASDAQ:WOOF) met Wall Street’s revenue expectations in Q4 CY2025, but sales fell by 2.4% year on year to $1.52 billion. The company expects next quarter’s revenue to be around $1.49 billion, close to analysts’ estimates. Its GAAP loss of $0.01 per share was $0.02 below analysts’ consensus estimates. Is now the time to buy Petco? Find out in our full research report. Petco (WOOF) Q4 CY2025 Highlights: Revenue: $1.52 billion vs analyst estimates of $1.51 billion (2.4% year-on-year decline, in line) EPS (GAAP): -$0.01 vs analyst estimates of $0.01 ($0.02 miss) Adjusted EBITDA: $106.3 million vs analyst estimates of $94.16 million (7% margin, 12.9% beat) Revenue Guidance for Q1 CY2026 is $1.49 billion at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for the upcoming financial year 2026 is $422.5 million at the midpoint, above analyst estimates of $414.3 million Operating Margin: 2.1%, in line with the same quarter last year Free Cash Flow Margin: 7.7%, up from 3.8% in the same quarter last year Same-Store Sales fell 1.6% year on year (0.5% in the same quarter last year) Market Capitalization: $655.3 million “In fiscal 2025, we strengthened our leadership team and rebuilt the foundation of our economic model, enabling us to exceed our profitability goals,” said Joel Anderson, Chief Executive Officer of Petco. Company Overview Historically known for its window displays of pets for sale or adoption, Petco (NASDAQ:WOOF) is a specialty retailer of pet food and supplies as well as a provider of services such as wellness checks and grooming. Revenue Growth A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $5.96 billion in revenue over the past 12 months, Petco is a mid-sized retailer, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Petco struggled to increase demand as its $5.96 billion of sales for the trailing 12 months was close to its revenue three years ago. This was mainly because it closed stores. Petco Quarterly Revenue This quarter, Petco reported a rather uninspiring 2.4% year-on-year revenue decline to $1.52 billion of revenue, in line with Wall Street’s estimates. Company management is currently guiding for flat sales next quarter. Looking further ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection indicates its newer products will fuel better top-line performance, it is still below the sector average.