Chewy recently released its 10-K report for fiscal 2025. The company, founded in 2010 and based in Plantation, Florida, runs an e-commerce business in the United States focused on pet food, pet supplies, pet medications and other pet-health products, along with pet services. It sells through retail websites and mobile apps, and its Autoship subscription program is part of that model.
In Item 7, Chewy said its discussion of financial condition and results of operations should be read alongside the consolidated financial statements and notes in the filing. The company described itself as the largest pet e-tailer in the United States, with roughly 4,000 brands on its platform and about 190,000 products available through its websites and mobile applications. It said net sales are driven mainly by third-party and private-brand pet food, pet products, pet health and specialty products, plus shipping fees, while other net sales include private-brand sales and services such as telehealth, pet insurance-related offerings, loyalty memberships and veterinary clinic services.
Chewy said macroeconomic conditions, including inflation, elevated interest rates and broader economic uncertainty, have affected consumer spending patterns and could continue to influence demand. It noted that it adjusts logistics, transportation, supply chain and merchandising strategies in response. The company also said its fiscal year ends on the Sunday closest to January 31; fiscal 2025 ended February 1, 2026 and covered 52 weeks, while fiscal 2024 ended February 2, 2025 and covered 53 weeks.
Chewy’s key operating metrics showed active customers rising to 21.327 million in fiscal 2025 from 20.514 million in fiscal 2024 and 20.083 million in fiscal 2023. Net sales per active customer increased to $591 from $578 and $555. Autoship customer sales climbed to $10.497 billion from $9.393 billion and $8.493 billion, and Autoship customer sales as a share of net sales rose to 83.3% from 79.2% and 76.2%.
For fiscal 2025, net sales were $12.602 billion, up 6.2% from $11.861 billion in fiscal 2024. Net income fell to $222.8 million from $392.7 million, while adjusted EBITDA increased to $719.2 million from $570.5 million. Adjusted EBITDA margin expanded to 5.7% from 4.8%, and free cash flow rose to $562.4 million from $452.5 million. Net cash provided by operating activities increased to $691.6 million from $596.3 million.
Chewy said cost of goods sold includes product costs, inventory freight, shipping supply costs, shrinkage and valuation adjustments, offset by vendor rebates and promotions. Selling, general and administrative expenses include fulfillment center, customer service center and veterinary clinic costs, along with corporate payroll, facilities, depreciation, rent, share-based compensation and professional fees. Advertising and marketing expenses cover advertising and payroll for marketing, business development and selling personnel. The market has reacted to these announcements by moving the company's shares 2.96% to a price of $33.74. For more information, read the company's full 10-K submission here.
