Chewy Inc

Latest Results (02.04.2026):

Chewy, Inc. reporting on its fiscal fourth quarter 2025 (quarter ended February 1, 2026) and full fiscal year 2025 shows revenue growth, margin improvement, stronger adjusted profitability and record free cash flow, though GAAP EPS for the full year declined versus the prior year largely due to a prior-year tax benefit. The quarter had 13 weeks in FY2025 vs. 14 weeks in the prior-year quarter; the company provided normalized (13-/52-week) comparisons where noted.

Net sales and growth

Full-year net sales were $12.60 billion, up 6.2% year‑over‑year (8.3% on a normalized 52‑week basis). Q4 net sales were $3.26 billion, up 0.5% year‑over‑year (8.1% on a normalized 13‑week basis).

GAAP profitability

GAAP net income for FY2025 was $222.8 million (net margin 1.8%), down from $392.7M a year earlier; Q4 GAAP net income was $39.2 million (net margin 1.2%), up versus the prior-year quarter. The company notes the full‑year GAAP decline was driven primarily by the release of a valuation allowance on deferred tax assets in FY2024 that produced a $275.7M tax benefit last year.

Non‑GAAP results (Adjusted EBITDA / Adjusted net income)

Adjusted EBITDA rose to $719.2 million for FY2025 (margin 5.7%, +90 bps) and to $162.3 million in Q4 (margin 5.0%, +120 bps YoY). Adjusted net income increased to $540.5 million for the year (+21.0% YoY); Q4 adjusted net income was $114.8 million (a slight YoY decrease of $5.2M).

Margins and cost items

Gross margin expanded to 29.8% for FY2025 (+60 bps) and to 29.4% in Q4 (+90 bps). Share‑based compensation and related taxes remain sizable (about $311.2M in FY2025, $77.6M in Q4) and are excluded from the company’s adjusted metrics.

Cash flow, capital returns and liquidity

Chewy generated record free cash flow of $562.4 million in FY2025 (net cash from operations $691.6M less $129.2M capex). Cash and cash equivalents grew to $860.1 million at year‑end. The company repurchased $262.5 million of common stock during the year.

Customer metrics and business mix

Active customers reached 21.3 million (up 4.0% YoY). Net sales per active customer were $591 (up 2.2%). Autoship sales were $10.50 billion for the year (up 11.8% YoY) and represented 83.3% of net sales.

Balance sheet snapshot

Total assets rose to $3.366 billion and total stockholders’ equity increased to $497.9 million at February 1, 2026. Inventories were $864.8M and trade accounts payable were $1,221.4M.

Management comments and next steps

CEO Sumit Singh highlighted durable performance and confidence in delivering continued profitable growth, expanded margins and strong cash generation in 2026; management scheduled an earnings conference call/webcast to discuss results and take questions.