Chewy, Inc.
Pet E-commerce / Online RetailFounded 2011- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Chewy, Inc.
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$12.60B
Market Cap
$8.3B
Net Income
$223M
Employees
18,000
Founded in 2011 in Dania Beach, Florida by Ryan Cohen and Michael Day as MrChewy.com, the company grew to $12.60 billion in fiscal year 2025 net sales — an 8.3% increase on a normalized basis. It generated $10.50 billion in FY2025 — 83.3% of total net sales, growing at 11.8% year-over-year. $12.60 billion in FY2025 net sales against $222.8 million in GAAP net income tells an incomplete story. The non-cash charges buried in Chewy's income statement — $297.9 million in stock-based compensation, $129.3 million in depreciation, $32.8 million in non-cash lease expense — totaled $460 million, more than twice the reported net income. $10.50 billion in recurring subscription-style revenue, growing 11.8% year-over-year, behaves more like a SaaS business than a retailer. The company hit $400 million in revenue by 2015 without raising at a scale that would have forced rapid dilution. PetSmart acquired Chewy in 2017 for $3.35 billion — the largest e-commerce acquisition at the time. Chewy went public on NYSE in June 2019, raising $1.02 billion at a $8.8 billion valuation. By FY2025, Chewy had grown net sales to $12.60 billion — more than three times the price PetSmart paid for the whole company six years earlier.
Revenue Trend Analysis
YoY Change
+6.2%
2-Year CAGR
+6.3%
Peak Year
2025
Trend
Consistent Growth
Chewy, Inc. has reported revenue across 3 fiscal years, compounding at +6.3% annually over 2 years. The most recent year saw a 6.2% increase versus the prior year. Revenue peaked in 2025 at $12.6B. Out of 2 reported periods, 2 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $12.6B | $223M | +6.2% |
| FY2024 | $11.9B | — | +6.4% |
| FY2023 | $11.1B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Chewy's $222.8 million 2024 net income on $12.6 billion revenue represents 1.8% net margin, modest by industry standards but significantly improved from historical losses reflecting operational scale benefits and disciplined cost management. Operating margins of 2-3% reflect e-commerce industry economics with thin per-transaction margins compensated by scale, customer service costs higher than typical e-commerce reducing margins versus pure-play e-commerce alternatives, and various operational expenses supporting growth investment. Free cash flow generation has improved substantially with company achieving positive free cash flow status through 2023-2024, supporting various capital allocation including modest share buybacks. Profitability trajectory shows continued improvement from earlier loss-making years as scale economics emerge, with management targeting continued operating margin expansion through operational efficiency and category mix improvements.
Chewy has improved operating margins from negative levels (significant operating losses through 2019-2020 period) to positive 2-3% through multiple operational improvements including supply chain optimization, fulfillment automation reducing labor costs per order, expanded private label products (Chewy's American Journey brand and various others) generating higher margins than national brands, and growing higher-margin categories including pharmacy and health services. The margin improvement reflects scale benefits — fixed costs spread across larger revenue base — plus disciplined operational management focusing on profitability over pure growth. Future margin expansion potential includes continued private label growth, pharmacy and health services scaling, advertising platform monetisation (vendors paying for placement), and various other operational improvements. Management targets continued operating margin expansion toward 5%+ supporting earnings growth alongside continued revenue expansion.
Chewy's stock has been extraordinarily volatile, ranging from $120+ peak (2021) during e-commerce enthusiasm to $20s low (2023) reflecting post-COVID normalisation pressure, before recovery toward $35-50 range in 2024. The volatility reflects multiple factors including extreme e-commerce industry valuation cycles, pet ownership normalisation reducing growth expectations, supply chain pressures affecting margins during 2022-2023, and various operational challenges. Recent stabilisation around $25-50 range reflects more reasonable valuation based on actual profitability rather than pure growth expectations. Operational performance through 2024 has demonstrated continued customer retention, improving margins, and positive free cash flow generation, supporting modest stock recovery. Future stock performance depends on continued operational improvement, sustained revenue growth, and various execution metrics demonstrating long-term value creation rather than COVID-era hyper-growth expectations.
Chewy's capital allocation has shifted from growth-focused investment (significant losses funding rapid expansion through 2019-2020) to balanced approach emphasising operational efficiency, modest growth investment, and selective share buybacks ($500 million authorisation) as company achieved sustained profitability. Free cash flow generation supports continued operational reinvestment, technology improvements, and various strategic initiatives without requiring external capital. Capital structure remains conservative with minimal debt and substantial cash position, providing strategic flexibility. Recent capital allocation includes modest share buybacks during favorable stock conditions, continued technology and operational investment, and selective expansion into new categories (veterinary services, pharmacy). Future capital allocation likely continues balanced approach supporting both operational improvement and selective growth investments rather than dramatic strategic redirection.
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CorpDigest. "Chewy, Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/chewy/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Chewy, Inc. reported $13B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/chewy/financials" target="_blank" rel="noopener">CorpDigest — Chewy, Inc. financials</a></div>