Petco Health And Wellness Company, Inc. · NASDAQ:WOOF
Petco Health And Wellness — Q2 2025 Earnings Presentation
17 slides from Petco Health And Wellness's earnings presentation, Aug 28, 2025
Slide 1: Second Quarter 2025 Earnings Call
&s petco Second Quarter 2025 Earnings Call August 28, 2025
Slide 2: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures This Presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amend
Slide 3: Second Quarter Key Takeaways
Second Quarter Key Takeaways Meaningfully increased profitability as efforts to strengthen retail fundamentals continue to take hold » Operating income increased ~$41M » Adj. EBITDA increased ~S30M » Generated Free Cash Flow! of ~$54M Focused on core tenets of economic model to expand gross margin,
Slide 4: Strengthening retail fundamentals
> Strengthening retail fundamentals > Completed build out of senior leadership team with proven retail executives Phase 2 — Implementing and Executing > Continued progress on improving retail fundamentals focused on merchandising excellence, enhanced customer experience, driving efficiencies and inc
Slide 5: Setting the Stage for Phase Three - WHERE THE PETS GO
Setting the Stage for Phase Three - WHERE THE PETS GO Dragons Are Real Event WHERE THE PETS GO Here’ 's your feline freebie Drop into Petco for a fun bearded dragon scavenger oe bg 4h 4 eerie Find a Store ~ Shop Now WHERE THE fpom iin Oe ii — OF EVENTS | ¢ipetco We alae PETS GO my saruroay July i2n2
Slide 6: Economic Model
Economic Model Our number-one financial priority is clear: restoring the health of our economic model which, in turn, will improve our earnings power and set the foundation for sustainable, profitable growth over the long term. Expand gross margin rate Leverage expenses through operational excellenc
Slide 7: Q2 2025 Net Sales & Comp
Q2 2025 Net Sales & Comp NET SALES BY CATEGORY Q2 Highlights (Sin millions) $1,524 $1,511 $1,552 $1,493 $1,489 , one) - : > Net Sales include the impact of 25 Services and Other 260 248 252 263 net closures in FY’24 and 10 net closures YTD’25 Supplies and CA 519 510 529 494 496 > Comp sales sequenti
Slide 8: Operating Income Margin and Adj. EBITDA Margin
Operating Income 0.2% 2.9% Adj. EBITDA Margin1 5.5% 7.6% Margin
Slide 9: Q3 2025 and Full Year 2025 Outlook
Q3 2025 Outlook2 Net sales Down low single digits y/y Adjusted EBITDA $92M to $94M Full Year 2025 Outlook2 Current Prior (as of 6/5/25) Net sales Down low single digits y/y Down low single digits y/y Adjusted EBITDA $385M to $395M $375M to $390M Net interest expense ~$130M ~$130M Capital expenditure
Slide 10: Non-GAAP Measure and Other Definitions
Non-GAAP Measure and Other Definitions
Slide 11: Non-GAAP Measures and Other Definitions
Non-GAAP Measures and Other Definitions
Slide 12: Reconciliation of Net Income (Loss) to Adjusted EBITDA
(dollars in thousands) 13 Weeks Ended Reconciliation of Net Income (Loss) Attributable to Class A and B-1 August 2, August 3, Common Stockholders to Adjusted EBITDA 2025 2024 Net income (loss) attributable to Class A and B-1 common stockholders $ 13,972 $ (24,823) Add (deduct): Interest expense, net
Slide 13: Free Cash Flow Reconciliation
(in thousands) 13 Weeks Ended 26 Weeks Ended August 2, August 3, August 2, August 3, 2025 2024 2025 2024 Net cash provided by operating activities $ 85,892 $ 69,370 $ 70,438 $ 60,956 Cash paid for fixed assets (32,104) (27,388) (60,516) (60,029) Free Cash Flow $ 53,788 $ 41,982 $ 9,922 $ 927
Slide 14: Total Debt and Net Debt
August 2, February 1, August 3, (dollars in thousands) 2025 2025 2024 Total debt: Senior secured credit facilities, net, including current portion $ 1,580,688 $ 1,578,091 $ 1,575,630 Finance leases, including current portion 12,012 13,793 14,839 Total debt 1,592,700 1,591,884 1,590,469 Less: cash an
Slide 15: Net Sales by Category
13 Weeks Ended August 2, August 3, July 29, % Change % Change 2025 2024 2023 (1 yr) (2 yr) Consumables $ 729,918 $ 744,766 $ 734,077 (2%) (1%) Supplies and companion animals 495,687 518,983 544,521 (4%) (9%) Services and other 262,924 260,006 252,136 1% 4% Net sales $ 1,488,529 $ 1,523,755 $ 1,530,7
Slide 16: Non-GAAP Financial Measures' Footnotes
Non-GAAP Financial Measures’ Footnotes eer 0) @ @) (4) Mexico Joint Venture EBITDA represents 50 percent of the entity’s operating results for all periods, as adjusted to reflect the results on a basis comparable to Adjusted EBITDA. In the financial statements, this joint venture is accounted for as
Slide 17: Thank You
Thank You ©2025 Petco Health and Wellness Company, Inc
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