Chewy (NYSE:CHWY), the leading online destination for pet products and services, released its financial results for the fiscal fourth quarter and full year 2025, ended February 1, 2026.
For the fiscal fourth quarter, Chewy reported net sales of $3.26 billion.
While this represented a 0.5% increase year-over-year on a reported basis, sales climbed 8.1% when normalized for a 13-week comparison.
A standout metric in the report was the company’s gross margin, which expanded by 90 basis points year-over-year to 29.4%, reflecting optimized logistics and a favorable product mix.
The company's bottom line showed marked improvement, with net income reaching $39.2 million.
This figure includes $77.6 million in share-based compensation and related taxes.
Net margin expanded by 50 basis points to 1.2%, resulting in diluted earnings per share of $0.09—a year-over-year increase of $0.04.
Operational efficiency also remained a primary driver for the quarter.
Adjusted EBITDA rose to $162.3 million, an increase of $37.8 million compared to the prior year.
This led to an adjusted EBITDA margin of 5%, a 120-basis point expansion that highlights Chewy’s ability to scale its infrastructure profitably.
On an adjusted basis, net income was $114.8 million, with adjusted diluted earnings per share reaching $0.27.