Chewy, Inc. Q3 2025 Earnings Recap

Chewy's Q3 2025 results demonstrate strong growth and profitability, with net sales surpassing expectations and margin expansion reflecting robust operational execution.

Key Takeaways

• Q3 net sales increased 8.3% year-over-year to $3.12 billion, driven by strong Autoship growth and customer acquisition.
• Adjusted EBITDA rose 30% to $181 million, with adjusted EBITDA margin expanding to 5.8% due to improved gross margins and disciplined SG&A management.
• Free cash flow generated in the quarter totaled $176 million, facilitating $55 million in share repurchases and strategic investments.
• Continued strong performance from Chewy Vet Care and the expansion of Chewy+ membership program signal a positive outlook for customer loyalty and recurring revenue.
• Chewy aims for long-term adjusted EBITDA margin of 10%, supported by structural efficiencies and a growing premium health product assortment through recent acquisitions.