Petco Announces Launch of Debt Refinancing Transaction; Reaffirms Fourth Quarter and Full Fiscal Year 2025 Outlook

Petco (Nasdaq: WOOF) announced on Jan 12, 2026 a debt refinancing initiative to extend maturities and reaffirmed its Q4 and full fiscal year 2025 outlook ending Jan 31, 2026.

Rhea-AI Summary

Petco (Nasdaq: WOOF) announced on Jan 12, 2026 a debt refinancing initiative to extend maturities and reaffirmed its Q4 and full fiscal year 2025 outlook ending Jan 31, 2026. The company intends to refinance $1.5 billion of term loan outstanding, subject to market conditions, and disclosed a $50 million voluntary prepayment completed in Dec 2025 with up to $100 million board-authorized prepayments possible. Petco reaffirmed FY 2025 Net Sales guidance of down 2.5%–2.8% and Adjusted EBITDA of $395M–$397M, and Q4 2025 Net Sales down low-single-digits with Adjusted EBITDA of $93M–$95M. The company said completion of refinancing is not assured.

Positive

• Announced intent to refinance $1.5B of term loan
• Completed $50M voluntary prepayment in December 2025
• Reaffirmed FY 2025 Adjusted EBITDA of $395M–$397M
• Reaffirmed Q4 2025 Adjusted EBITDA of $93M–$95M

Negative

• FY 2025 Net Sales expected down 2.5%–2.8% year over year
• Q4 2025 Net Sales expected down low single digits
• Refinancing completion not guaranteed, subject to market conditions
• Adjusted EBITDA outlook is non-GAAP and not reconciled to GAAP

Argus Jan 12 session

+7.09% close to close Open Argus

Details

News Market Reaction – WOOF

On Jan 12, the day this news came out, WOOF closed 7.09% above the previous close.

Data tracked by StockTitan Argus for the Jan 12 session.

Key Figures

Term loan to refinance: $1.5 billion Voluntary prepayment: $50 million Board prepay authorization: $100 million +5 more

Term loan to refinance

$1.5 billion

Portion of current term loan targeted for refinancing

Voluntary prepayment

$50 million

Term loan prepayment in December 2025 using cash on hand

Board prepay authorization

$100 million

Total authorized amount for additional voluntary prepayments

FY 2025 Net Sales outlook

Down 2.5%–2.8%

Full fiscal year 2025 guidance reaffirmed

FY 2025 Adjusted EBITDA

$395–$397 million

Full fiscal year 2025 Adjusted EBITDA outlook reaffirmed

Q4 2025 Net Sales outlook

Down low single digits

Quarterly Net Sales guidance vs. prior-year quarter

Q4 2025 Adjusted EBITDA

$93–$95 million

Fourth quarter 2025 Adjusted EBITDA outlook reaffirmed

Team members

Nearly 30,000

Approximate number of Petco employees cited by CEO

Historical Context

5 past events · Latest: Nov 25

5 events

1. Nov 25

   Q3 2025 earnings

   24h Move

   +6.5%

   Q3 profits and Adjusted EBITDA improved with full-year earnings outlook raised.

2. Nov 11

   Earnings call notice

   24h Move

   -1.9%

   Announcement of Q3 2025 earnings release date and conference call details.

3. Aug 28

   Q2 2025 earnings

   24h Move

   +23.5%

   Q2 margins and earnings improved; full-year Adjusted EBITDA guidance raised.

4. Aug 21

   Conference participation

   24h Move

   +6.1%

   Participation in Goldman Sachs Global Retailing Conference announced.

5. Aug 07

   Earnings call notice

   24h Move

   +1.3%

   Scheduling of Q2 2025 earnings release and webcast details.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

debt refinancing transaction, term loan, adjusted EBITDA, non-GAAP financial measure, +1 more

5 terms

debt refinancing transaction financial

"today announced the launch of a debt refinancing transaction to extend maturities"

A debt refinancing transaction is when a company replaces one or more existing loans or bonds with new borrowing under different terms — for example a lower interest rate, longer time to repay, or changed payment schedule. Think of it like swapping an old mortgage for a new one to lower monthly costs or push back the due date. Investors watch these moves because they change a company’s interest expense, cash flow and default risk, which affect profitability and valuation.

term loan financial

"Petco intends to refinance $1.5 billion of its current term loan outstanding"

A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.

adjusted EBITDA financial

"guidance for Net Sales and Adjusted EBITDA for the fourth quarter"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP financial measure financial

"Adjusted EBITDA is a non-GAAP financial measure and has not been reconciled"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

GAAP financial

"has not been reconciled to the most comparable GAAP outlook"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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SAN DIEGO, Jan. 12, 2026 /PRNewswire/ -- Petco (Nasdaq: WOOF) today announced the launch of a debt refinancing transaction to extend maturities and reaffirmed its guidance for the fourth quarter and full fiscal year 2025 ending January 31, 2026.

Petco intends to refinance $1.5 billion of its current term loan outstanding subject to market and other conditions and therefore can provide no assurances that it will complete the refinancing in whole or in part.  Petco previously completed a $50 million voluntary prepayment in December 2025 with cash on hand and may elect to prepay an additional amount under its $100 million board authorization.

In connection with any potential refinancing transaction, Petco is reaffirming its guidance for Net Sales and Adjusted EBITDA for the fourth quarter and full fiscal year 2025 outlook.

"We are pleased with what the team has been able to accomplish year to date in fiscal 2025.  This performance continues to be a testament to the execution of our nearly 30,000 team members and the resilience of the category in which we operate," said Joel Anderson, Petco's Chief Executive Officer.

	FY 2025 Outlook*	Q4 2025 Outlook*
Net Sales	Down 2.5% - 2.8%	Down low single digits year over year
Adjusted EBITDA	$395 million to $397 million	$93 million to $95 million

*Assumptions in the outlook include that economic conditions, currency rates and the tax and regulatory landscape remain generally consistent, and that current or planned tariffs on imports into the U.S. from other countries remain at January 12, 2026 levels.  Adjusted EBITDA is a non-GAAP financial measure and has not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant.  Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures.  Forward-looking estimates of Adjusted EBITDA are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the Securities and Exchange Commission.

About Petco

We're proud to be "where the pets go" to find everything they need to live their best lives for more than 60 years — from their favorite meals and toys, to trusted supplies and expert support from people who get it, because we live it.  We believe in the universal truths of pet parenthood — the boundless boops, missing slippers, late night zoomies and everything in between.  And we're here for it.  Every tail wag, every vet visit, every step of the way.  We nurture the pet-human bond in the aisles of more than 1,500 Petco stores across the U.S., Mexico and Puerto Rico.  Customers experience our exclusive selection of pet care products, services, expertise and membership offerings in stores and online at petco.com, and on the Petco app.  In 1999, we founded Petco Love.  Together, we support thousands of local animal welfare groups nationwide, and have helped find homes for over 7 million animals through in-store adoption events.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact, including, but not limited to, statements regarding our Q4 and full year 2025 outlook and any potential debt refinancing or loan repurchase transactions.  Such forward-looking statements can generally be identified by the use of forward-looking terms such as "believes," "may," "will," "potential," or the negative thereof or other variations thereon or comparable terminology.  Although Petco believes that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to be correct or that any forward-looking results will occur or be realized.  Nothing contained in this press release is, or should be relied upon as, a promise or representation or warranty as to any future matter.  All forward-looking statements are based on current expectations and assumptions about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Petco.  Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results or events to differ materially from the potential results or events discussed in the forward-looking statements, including, without limitation, those identified in this press release as well as the following: (i) increased competition (including from multi-channel retailers, mass and grocery retailers, and e-Commerce providers); (ii) reduced consumer demand for our products and/or services; (iii) our reliance on key vendors; (iv) our ability to attract and retain qualified employees; (v) risks arising from statutory, regulatory and/or legal developments; (vi) macroeconomic pressures in the markets in which we operate, including inflation, prevailing interest rates and the impact of tariffs; (vii) failure to effectively manage our costs; (viii) our reliance on our information technology systems; (ix) our ability to prevent or effectively respond to a data privacy or security breach; (x) our ability to effectively manage or integrate strategic ventures, alliances or acquisitions and realize the anticipated benefits of such transactions; (xi) economic or regulatory developments that might affect our ability to provide attractive promotional financing; (xii) business interruptions and other supply chain issues; (xiii) catastrophic events, political tensions, conflicts and wars (such as the ongoing conflicts in Ukraine and the Middle East), health crises, and pandemics; (xiv) our ability to maintain positive brand perception and recognition; (xv) product safety and quality concerns; (xvi) changes to labor or employment laws or regulations; (xvii) our ability to effectively manage our real estate portfolio; (xviii) constraints in the capital markets or our vendor credit terms; (xix) changes in our credit ratings; (xx) impairments of the carrying value of our goodwill and other intangible assets; (xxi) our ability to successfully implement our operational adjustments, achieve the expected benefits of our cost action plans and drive improved profitability (xxii) our ability to deliver sustainable, profitable growth and (xxiii) the other risks, uncertainties and other factors identified under "Risk Factors" and elsewhere in Petco's Securities and Exchange Commission filings.  The occurrence of any such factors could significantly alter the results set forth in these statements.

Petco cautions that the foregoing list of risks, uncertainties and other factors is not complete, and forward-looking statements speak only as of the date they are made.  Petco undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.

 

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SOURCE Petco - Investor Relations

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What debt refinancing did Petco (WOOF) announce on Jan 12, 2026?

Petco said it intends to refinance $1.5 billion of its existing term loan, subject to market and other conditions.

How did Petco (WOOF) update its FY 2025 guidance on Jan 12, 2026?

Petco reaffirmed FY 2025 Net Sales down 2.5%–2.8% and Adjusted EBITDA of $395M–$397M.

What is Petco's (WOOF) Q4 2025 Adjusted EBITDA outlook?

Petco gave Q4 2025 Adjusted EBITDA guidance of $93M–$95M.

Did Petco (WOOF) make any prepayments on its debt prior to Jan 12, 2026?

Yes. Petco completed a $50 million voluntary prepayment in December 2025 and may prepay more under a $100 million board authorization.

Does Petco (WOOF) guarantee the refinancing will be completed?

No. The company stated it cannot assure the refinancing will be completed in whole or in part due to market and other conditions.