Chewy Reports Strong Adjusted Profitability and Record Free Cash Flow for Fiscal Q4 and Full Year 2025

summarizeSummary

Chewy, Inc. reported fiscal fourth quarter and full year 2025 results, highlighting strong growth in adjusted profitability and record free cash flow, despite modest top-line sales growth.

check_boxKey Events

• Strong Adjusted EBITDA Growth

  Fiscal Q4 2025 Adjusted EBITDA increased 30.4% year-over-year to $162.3 million, with full year Adjusted EBITDA growing 26.1% to $719.2 million.

• Record Free Cash Flow

  The company generated record free cash flow of $562.4 million for the full fiscal year 2025, a 24.3% increase year-over-year.

• Gross Margin Expansion

  Gross margin expanded by 90 basis points in Q4 2025 to 29.4% and by 60 basis points for the full year to 29.8%.

• Modest Sales Growth

  Net sales for Q4 2025 improved 0.5% year-over-year to $3.26 billion (8.1% on a normalized 13-week basis), and full year net sales grew 6.2% to $12.60 billion (8.3% on a normalized 52-week basis).

auto_awesomeAnalysis

Chewy, Inc. announced robust adjusted financial results for fiscal Q4 and full year 2025, demonstrating significant improvements in profitability and cash generation. While net sales growth was modest, the company achieved substantial increases in Adjusted EBITDA and expanded its Adjusted EBITDA margin. The record free cash flow generation is a strong indicator of operational efficiency and financial health. The reported decrease in GAAP net income for the full year is primarily attributed to a prior-year tax benefit release, rather than a decline in core operational performance. Investors should focus on the adjusted metrics and cash flow as key indicators of the company's underlying business strength and ability to fund future growth.