Description

Chewy: Health Services, App Ecosystem & Subscription Growth—A Platform Evolution Underway!

Chewy, Inc. reported its fiscal year 2025 results with revenue growth, margin expansion, and record free cash flow generation. Net sales for the full year increased by 8.3% to over $12.6 billion, driven by stable category demand, share gains, and balanced growth between active customers and net sales per active customer (NSPAC). Active customers reached 21.3 million, growing approximately 4% year-over-year, with Autoship sales comprising over 83% of net sales, underscoring a strong recurring revenue model. NSPAC rose about 4% year-over-year, supported by premium category mix and private brand expansion. Gross margins improved by 60 basis points to 29.8%, reflecting a rational promotional environment, growth in higher-margin verticals such as health and wellness, and sponsored advertising. Operating expenses, excluding share-based compensation and one-time transaction costs, remained stable as a percentage of sales, with continued leverage expected in selling, general and administrative (SG&A) and advertising and marketing (A&M) costs.