Chewy Inc
F:3HH
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Chewy Inc
F:3HH
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US |
Chewy Inc
Chewy is an online retailer focused on pet food, pet supplies, and related products. It sells items like food, treats, toys, litter, medication, and grooming products through its website and app, and it also offers some pet health and pharmacy services. The company mainly serves pet owners who want a convenient way to buy recurring household items for dogs, cats, and other pets. Chewy makes money by selling products directly to consumers and by earning revenue from services tied to pet care, such as pharmacy and veterinary-related offerings. A big part of its business comes from repeat orders, because pet owners need the same products over and over. That makes Chewy different from a general online retailer: it is built around routine pet spending rather than one-off purchases. Its role in the market is to be a specialized digital store for pet owners, with a strong focus on convenience, selection, and home delivery. Chewy sits between pet product brands and end customers, handling the storefront, order fulfillment, and customer relationship. For suppliers, it is a major online sales channel; for customers, it is a one-stop place to manage ongoing pet needs.
Chewy is an online retailer focused on pet food, pet supplies, and related products. It sells items like food, treats, toys, litter, medication, and grooming products through its website and app, and it also offers some pet health and pharmacy services. The company mainly serves pet owners who want a convenient way to buy recurring household items for dogs, cats, and other pets.
Chewy makes money by selling products directly to consumers and by earning revenue from services tied to pet care, such as pharmacy and veterinary-related offerings. A big part of its business comes from repeat orders, because pet owners need the same products over and over. That makes Chewy different from a general online retailer: it is built around routine pet spending rather than one-off purchases.
Its role in the market is to be a specialized digital store for pet owners, with a strong focus on convenience, selection, and home delivery. Chewy sits between pet product brands and end customers, handling the storefront, order fulfillment, and customer relationship. For suppliers, it is a major online sales channel; for customers, it is a one-stop place to manage ongoing pet needs.
Revenue: Q4 net sales were reported at over $3.26 billion and full year 2025 net sales were over $12.6 billion, up 8.1% in Q4 and 8.3% for the year.
Profitability: Gross margin expanded to 29.4% in Q4 and 29.8% for FY25; adjusted EBITDA margin widened to 5.0% in Q4 and 5.7% for the year, driving record free cash flow of $562.4 million in 2025.
Guidance: 2026 net sales are guided to $13.6 billion–$13.75 billion (~8%–9% growth) with adjusted EBITDA margin of 6.6%–6.8% (about 100 bps expansion at midpoint); Q1 revenue guidance $3.33 billion–$3.36 billion.
AI & efficiency: Management expects AI to deliver a low tens of millions of dollars of benefit in 2026 and a step-up to approximately $50 million+ of annualized savings by 2027.
Recurring base: Autoship remains the backbone (84% of Q4 sales); active customers reached 21.3 million and NSPAC was $591 in Q4 (up ~4% YoY).
Strategic rollouts: Chewy Made private brand launches begin in April 2026; Chewy Vet Care grew to 18 locations after adding 10 in 2025.
Capital allocation: Company is debt-free, ended FY25 with ~$879 million cash and ~$1.7 billion liquidity; repurchased ~6.8 million shares for ~$257 million in 2025 and plans increased buybacks in 2026.
