Chewy, Inc. Revenue & Financials

Chewy generated $12.60 billion in net sales for fiscal year 2025, representing 8.3% year-over-year growth on a normalized 52-week basis (6.2% reported growth, which includes the impact of a 53-week FY2024). This three-year revenue trajectory — $10.12 billion in FY2022, $11.15 billion in FY2023, $11.86 billion in FY2024, and $12.60 billion in FY2025 — demonstrates consistent growth in a maturing market, with a three-year compound annual growth rate of 7.6%. Net income was $222.8 million in FY2025, down 43.3% from $392.7 million in FY2024, reflecting increased investment in Chewy Vet Care expansion, the Modern Animal acquisition integration, and share-based compensation. However, adjusted net income — which excludes share-based compensation, warrant valuation changes, and one-time items — was $541 million in FY2025, up from $726.5 million in FY2024 on a comparable basis, with adjusted diluted earnings per share of $1.27. Gross profit reached $3.75 billion in FY2025, yielding a gross margin of 29.8% — a 60 basis point expansion from 29.2% in FY2024 and 280 basis points above the 27.0% gross margin of FY2022. This margin expansion reflects three drivers: increased private-label product mix (American Journey, Frisco, Tylee's), improved supplier terms enabled by Chewy's $12.6 billion purchasing scale, and fulfillment network optimization that reduced per-unit shipping costs. Cost of goods sold was $8.84 billion (70.2% of net sales), leaving a gross profit pool that funds operating expenses and generates operating leverage. Operating income was $254.3 million in FY2025, up from $112.6 million in FY2024 — a 126% increase that demonstrates the scalability of Chewy's cost structure. Selling, general, and administrative expenses totaled approximately $2.4 billion (19.0% of net sales), while advertising and marketing spend was $825 million (6.5% of net sales). The advertising ratio is notably efficient for e-commerce: Amazon spends approximately 8% of revenue on marketing, while Wayfair spends 10-12%. Chewy's efficiency reflects the power of Autoship retention — once a customer is enrolled, the company does not need to re-acquire them through paid channels. Adjusted EBITDA — the metric management emphasizes for evaluating operating performance — was $719.2 million in FY2025 at a 5.7% margin, up 90 basis points from 4.8% in FY2024 and 170 basis points from 4.0% in FY2023. This margin expansion trajectory is among the most aggressive in consumer e-commerce and reflects the operating leverage inherent in Chewy's model: as the Autoship base grows, fulfillment costs decline per unit, customer service efficiency improves, and marketing intensity decreases. The FY2025 adjusted EBITDA margin of 5.7% compares favorably to Wayfair's 3-4% and Overstock's negative margins, though it trails Amazon's 15%+. Free cash flow reached a record $562.4 million in FY2025, up from approximately $450 million in FY2024, representing a free cash flow margin of 4.5%. Operating cash flow was $691.6 million, driven by net income of $222.8 million plus non-cash adjustments of $503.9 million (primarily $297.9 million in share-based compensation and $129.3 million in depreciation). Capital expenditures were $129.2 million, reflecting investments in fulfillment center automation, Chewy Vet Care clinic buildouts, and technology infrastructure. The company ended FY2025 with approximately $879 million in cash and cash equivalents and no debt — a fortress balance sheet that provides acquisition capacity and financial flexibility rare among growth-stage retailers. Net Sales Per Active Customer (NSPAC) reached $591 in Q4 FY2025, up 4% year-over-year from approximately $568 in Q4 FY2024. This metric is critical because it demonstrates that Chewy is growing not just by adding customers but by deepening relationships with existing ones. The 4% NSPAC growth in FY2025 reflects successful cross-sell into pharmacy, premium food, and supplies, as well as price increases on select products. Active customers grew 4% year-over-year to 21.3 million, with 813,000 net additions in FY2025 — a modest pace that reflects market maturity but also high customer quality. Valuation metrics as of June 2026 show Chewy trading at a trailing P/E of 39.0, forward P/E of 14.1, and price-to-sales of 0.70 on a trailing basis. The market capitalization of $8.3 billion and enterprise value of approximately $7.4 billion (net of cash) imply an EV/revenue multiple of 0.59x and EV/adjusted EBITDA of 10.3x. These multiples are deeply discounted relative to e-commerce peers — Amazon trades at 3.0x sales, Etsy at 3.0x, and even struggling Wayfair at 0.8x. The discount reflects investor concerns about growth deceleration and competitive pressure, but it also creates a potential value opportunity if Chewy can sustain mid-single-digit revenue growth while expanding margins.