Petco Reports Fourth Quarter and Full Year 2025 Results

Delivers Profitability Ahead of Outlook, Reduces Leverage Ratio

Published on Mar. 11, 2026

Got story updates? Submit your updates here. ›

Petco, the retailer "where the pets go" to find everything they need to live their best lives, today reported its fourth quarter and full year 2025 financial results. The company exceeded its profitability goals, strengthened its leadership team, and rebuilt the foundation of its economic model, enabling it to enter the next phase of its strategy focused on driving sustainable, profitable top-line growth.

Why it matters

Petco's strong financial performance and strategic initiatives demonstrate its ability to navigate challenging market conditions and position itself for continued success in the pet retail industry. The company's focus on driving product innovation, leveraging its differentiated store ecosystem, and improving its financial strength are key factors that will support its path to sustainable, profitable growth.

The details

For the fourth quarter of 2025, Petco reported net sales of $1.5 billion, a 2.4% decrease, and comparable sales decrease of 1.6%. Gross profit decreased 1.4% to $580.8 million, but gross margin increased 37 basis points to 38.3%. Operating income increased 83.2% to $31.9 million, and operating margin increased 98 basis points to 2.1%. Adjusted EBITDA increased 10.6% to $106.3 million, exceeding the company's outlook. For the full year 2025, Petco reported net sales of $6.0 billion, a 2.5% decrease, and comparable sales decrease of 1.6%. Gross profit decreased 0.8% to $2.3 billion, but gross margin increased 66 basis points to 38.7%. Operating income increased to $120.4 million from $7.1 million, and operating margin increased 190 basis points to 2.0%. Adjusted EBITDA increased 21.3% to $408.2 million, above the company's outlook.

  • Petco reported its fourth quarter and full year 2025 financial results on March 11, 2026.

The players

Petco

Petco is a retailer "where the pets go" to find everything they need to live their best lives for more than 60 years, offering a selection of pet care products, services, and expertise in stores and online.

Joel Anderson

Joel Anderson is the Chief Executive Officer of Petco.

Sabrina Simmons

Sabrina Simmons is the Chief Financial Officer of Petco.

Got photos? Submit your photos here. ›

What they’re saying

“In fiscal 2025, we strengthened our leadership team and rebuilt the foundation of our economic model, enabling us to exceed our profitability goals. With that work largely complete, we are entering the next phase of our strategy focused on driving sustainable, profitable top‑line growth.”

— Joel Anderson, Chief Executive Officer of Petco (Petco)

“Petco once again delivered on our commitments while building a stronger foundation, improving profitability and cash generation through our economic model. These results enabled significant progress in achieving our goal of lowering our leverage ratio from 4.2X when we entered the year to 3X at the end of 2025. As we enter this next phase of growth, we see ongoing opportunity to improve our financial strength.”

— Sabrina Simmons, Chief Financial Officer of Petco (Petco)

What’s next

Petco will host an earnings conference call on March 11, 2026 at approximately 4:30 PM Eastern Time to discuss the company's financial results.

The takeaway

Petco's strong financial performance and strategic initiatives demonstrate its ability to navigate challenging market conditions and position itself for continued success in the pet retail industry. The company's focus on driving product innovation, leveraging its differentiated store ecosystem, and improving its financial strength are key factors that will support its path to sustainable, profitable growth.