Pet Valu Reports Fourth Quarter and Fiscal Year 2025 Results

Executive Summary

• Pet Valu reported Q4 2025 revenue of $326.4 M (+10.6% YoY) and full‑year 2025 revenue of $1,175.6 M (+7.1% YoY).
• Adjusted EBITDA grew to $74.6 M in Q4 (up 9.4%) and $257.1 M for the year (up 4.1%). Adjusted Net Income rose modestly to $34.0 M in Q4 and $113.2 M for FY 2025.
• The Board declared a quarterly dividend of $0.13 per share; outlook for FY 2026 projects revenue growth of 2‑4% with flat‑to‑slight EBITDA margin expansion and mid‑high single‑digit Adjusted Net Income per share growth.

Key Details

• Quarterly Highlights (Q4 2025)
• System‑wide sales: $423.7 M (+9.2% YoY); same‑store sales growth: +0.3%.
• Revenue: $326.4 M (+10.6% YoY).
• Adjusted EBITDA: $74.6 M (+9.4% YoY), representing 22.9% of revenue.
• Adjusted Net Income: $34.0 M ($0.49 per diluted share), +8.9% vs. Q4 2024.
• Operating income: $48.1 M (+0.5% YoY); net income: $29.4 M (+1.6% YoY).
• Opened 14 new stores; total store count 863.
• Free cash flow: $37.0 M (down $4.1 M YoY) after higher lease‑related principal/interest payments.
• Fiscal Year 2025 Highlights
• Revenue: $1,175.6 M (+7.1% YoY).
• Adjusted EBITDA: $257.1 M (+4.1% YoY), 21.9% of revenue.
• Adjusted Net Income: $113.2 M (flat vs. prior year; per‑share $1.61, +2.5%).
• Net income: $97.8 M (+11.9% YoY); operating income: $164.2 M (+5.7% YoY).
• SG&A expenses rose 7.3% to $224.7 M, driven by higher compensation and technology spend.
• Capital expenditures fell to $38.6 M (down $13.7 M) due to tenant allowances and lower construction costs.
• Dividends
• Board declared dividend of $0.13 per common share on March 2 2026, payable April 15 2026.
• 2026 Outlook (52‑week comparable)
• Revenue growth forecast: 2%–4%.
• Same‑store sales expected ~flat to +2%; wholesale penetration increasing.
• Adjusted EBITDA margin: flat to slight expansion.
• Adjusted Net Income per diluted share: mid‑high single‑digit growth.
• Planned reinvestment of ~$35 M (≈$20 M capex, $15 M transformation costs) and ~40 new store openings.
• Conference Call
• Scheduled for March 3 2026 at 8:30 a.m. ET; dial‑in details provided.

Notable Quotes

“We closed out 2025 with solid operational execution in Q4 amid heightened value‑seeking and competitive activity,” – Greg Ramier, CEO.
“As we celebrate our 50th anniversary in 2026, we plan to strengthen our legacy… delivering benefits from recent investments.” – Greg Ramier, CEO.