[10-Q] Petco Health and Wellness Company, Inc. Quarterly Earnings Report

Rhea-AI Filing Summary

Petco Health and Wellness Company (WOOF) reported mixed quarterly results with revenue modestly down while profitability improved. Net sales decreased from $1.52 billion to $1.49 billion, a 2.3% decline, with comparable sales down 1.4%. Operating income rose to $43.0 million from $2.5 million a year earlier, and net income attributable to Class A and B-1 stockholders turned positive at $14.0 million versus a $24.8 million loss previously. Adjusted EBITDA increased from $83.5 million to $113.9 million. The company noted impairment charges on fixed and right-of-use assets totaling $3.4 million and $6.9 million for the thirteen and twenty-six week periods ended August 3, 2024. The ABL Revolving Credit Facility capacity is described at $581.0 million and borrowing costs reference base rate (1% floor) or Term SOFR (0% floor) plus margins of 25 bps or 125 bps. Cash equivalents included restricted money market balances of $1.0 million and $15.6 million at two reported dates.

Positive

• Operating income improved to $43.0 million from $2.5 million year-over-year
• Net income turned positive at $14.0 million versus a $24.8 million loss previously
• Adjusted EBITDA increased from $83.5 million to $113.9 million
• Trade name fair value exceeded carrying value, so no trade name impairment was recorded

Negative

• Net sales declined from $1.52 billion to $1.49 billion (a 2.3% decrease) with comparable sales down 1.4%
• Fixed asset and right-of-use asset impairments of $3.4 million and $6.9 million were recorded for the recent periods
• Restricted cash balances in money market funds were small ($1.0M and $15.6M) and may limit immediate liquidity cushion

Insights

Securities Analyst

TL;DR: Sales dipped slightly but margins and cash-profitability metrics improved, raising operating leverage despite some asset impairments.

The quarter shows a modest revenue contraction of 2.3% but meaningful operating recovery: operating income expanded to $43.0 million from $2.5 million and Adjusted EBITDA rose to $113.9 million from $83.5 million, indicating improved operational performance or cost controls. Net income swung to a $14.0 million profit from a prior $24.8 million loss, which materially improves the bottom-line picture. The company recorded asset impairments ($3.4M and $6.9M) that reduced carrying values. The ABL facility remains available at a $581.0 million borrowing base with pricing tied to base rate or Term SOFR plus stated margins, and restricted cash in money market funds was noted. Overall, financials indicate operational improvement amid modest top-line pressure.

Corporate Finance Specialist

TL;DR: Liquidity structure intact with ABL capacity and low-cost margin options; some non-cash impairments affect comparability.

The disclosure of a $581.0 million ABL Revolving Credit Facility and specified interest floors and margins provides clarity on funding cost mechanics: base rate loans have a 1% floor plus a 25 bps margin, Term SOFR loans have a 0% floor plus 125 bps. Reported restricted cash within money market balances ($1.0M and $15.6M) is small. Trade name fair value exceeded carrying value so no impairment was recorded, but fixed asset and right-of-use impairments were recorded for the recent periods. These elements affect EBITDA and net income comparability across periods.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 2, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-39878

Petco Health and Wellness Company, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	81-1005932
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
10850 Via Frontera San Diego, California	92127
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (858) 453-7845

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share		WOOF		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		☐		Accelerated filer		☒
Non-accelerated filer		☐		Smaller reporting company		☐
Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s Class A Common Stock outstanding as of August 27, 2025 was 242,466,853.

The number of shares of the registrant’s Class B-1 Common Stock outstanding as of August 27, 2025 was 37,790,781.

The number of shares of the registrant’s Class B-2 Common Stock outstanding as of August 27, 2025 was 37,790,781.

Table of Contents

		Page
PART I.	FINANCIAL INFORMATION	4
Item 1.	Financial Statements (Unaudited)	4
	Consolidated Balance Sheets	4
	Consolidated Statements of Operations	5
	Consolidated Statements of Comprehensive Loss	6
	Consolidated Statements of Equity	7
	Consolidated Statements of Cash Flows	8
	Notes to Unaudited Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24
PART II.	OTHER INFORMATION	26
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	27
Signatures		28

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Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “Form 10-Q”) 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 expectations with respect to our revenue, expenses, profitability, and other operating results; our growth plans; our ability to compete effectively in the markets in which we participate; the execution on our transformation initiatives; and the impact of certain macroeconomic factors, including tariffs, inflationary and interest rate pressures, consumer spending patterns, global supply chain constraints, and global economic and geopolitical developments, on our business. Forward-looking and other statements in this Form 10-Q may also address our progress, plans, and goals with respect to sustainability initiatives, and the inclusion of such statements is not an indication that these contents are necessarily material to investors or required to be disclosed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). Such plans and goals may change, and statements regarding such plans and goals are not guarantees or promises that they will be met. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

Such forward-looking statements can generally be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “intends,” “will,” “shall,” “should,” “anticipates,” “opportunity,” “illustrative”, or the negative thereof or other variations thereon or comparable terminology. Although we believe 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 Form 10-Q is, or should be relied upon as, a promise or representation or warranty as to any future matter, including any matter in respect of our operations or business or financial condition. 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 of our control.

Forward-looking statements are subject to many risks, uncertainties and other factors that could cause actual results or events to differ materially from the potential results or events discussed in such forward-looking statements, including, without limitation, those identified in this Form 10-Q 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; and (xxii) the other risks, uncertainties and other factors referred to under “Risk Factors” and identified elsewhere in this Form 10-Q and our other filings with the SEC. The occurrence of any such factors could significantly alter the results set forth in these statements.

We caution 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. We undertake 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.

In addition, statements such as “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Form 10-Q. While we believe that information provides a reasonable basis for these statements, that information may be limited or

2

incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

3

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

PETCO HEALTH AND WELLNESS COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

		August 2, 2025				February 1, 2025
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	188,748			$	165,756
Receivables, less allowance for credit losses ($725 and $1,594, respectively)			34,524				40,425
Merchandise inventories, net			608,506				653,329
Prepaid expenses			60,387				53,515
Other current assets			47,393				60,594
Total current assets			939,558				973,619
Fixed assets			2,311,922				2,265,915
Less accumulated depreciation			(1,624,417	)			(1,540,477	)
Fixed assets, net			687,505				725,438
Operating lease right-of-use assets			1,314,618				1,302,346
Goodwill			980,064				980,064
Trade name			1,025,000				1,025,000
Other long-term assets			206,537				187,963
Total assets		$	5,153,282			$	5,194,430
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and book overdrafts		$	423,269			$	492,878
Accrued salaries and employee benefits			130,688				157,460
Accrued expenses and other liabilities			192,249				177,079
Current portion of operating lease liabilities			306,902				306,400
Current portion of long-term debt and other lease liabilities			5,458				5,346
Total current liabilities			1,058,566				1,139,163
Senior secured credit facilities, net, excluding current portion			1,580,688				1,578,091
Operating lease liabilities, excluding current portion			1,047,757				1,037,206
Deferred taxes, net			220,992				217,712
Other long-term liabilities			106,176				108,628
Total liabilities			4,014,179				4,080,800
Commitments and contingencies (Notes 4 and 8)
Stockholders' equity:
Class A common stock, $0.001 par value: Authorized - 1.0 billion shares;     Issued and outstanding - 242.1 million and 239.1 million shares, respectively			242				239
Class B-1 common stock, $0.001 par value: Authorized - 75.0 million shares;     Issued and outstanding - 37.8 million shares			38				38
Class B-2 common stock, $0.000001 par value: Authorized - 75.0 million shares;     Issued and outstanding - 37.8 million shares			—				—
Preferred stock, $0.001 par value: Authorized - 25.0 million shares;     Issued and outstanding - none			—				—
Additional paid-in-capital			2,297,702				2,280,495
Accumulated deficit			(1,146,748	)			(1,149,059	)
Accumulated other comprehensive loss			(12,131	)			(18,083	)
Total stockholders’ equity			1,139,103				1,113,630
Total liabilities and stockholders’ equity		$	5,153,282			$	5,194,430

See accompanying notes to consolidated financial statements.

4

PETCO HEALTH AND WELLNESS COMPANY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts) (Unaudited)

		Thirteen weeks ended								Twenty-six weeks ended
		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net sales:
Products		$	1,225,605			$	1,263,749			$	2,467,496			$	2,543,480
Services and other			262,924				260,006				514,432				509,415
Total net sales			1,488,529				1,523,755				2,981,928				3,052,895
Cost of sales:
Products			747,143				787,103				1,513,428				1,579,825
Services and other			156,067				155,927				313,213				313,685
Total cost of sales			903,210				943,030				1,826,641				1,893,510
Gross profit			585,319				580,725				1,155,287				1,159,385
Selling, general and administrative expenses			542,297				578,257				1,095,906				1,173,699
Operating income (loss)			43,022				2,468				59,381				(14,314	)
Interest income			(909	)			(672	)			(2,268	)			(1,090	)
Interest expense			33,297				36,805				66,791				73,622
Other non-operating loss			—				—				—				2,665
Income (loss) before income taxes and income    from equity method investees			10,634				(33,665	)			(5,142	)			(89,511	)
Income tax expense (benefit)			746				(4,651	)			1,241				(9,128	)
Income from equity method investees			(4,084	)			(4,191	)			(8,694	)			(9,077	)
Net income (loss) attributable to Class A and B-1    common stockholders		$	13,972			$	(24,823	)		$	2,311			$	(71,306	)
Net income (loss) per Class A and B-1 common share:
Basic		$	0.05			$	(0.09	)		$	0.01			$	(0.26	)
Diluted		$	0.05			$	(0.09	)		$	0.01			$	(0.26	)
Weighted average shares used in computing net     income (loss) per Class A and B-1 common share:
Basic			279,058				273,074				278,303				271,421
Diluted			285,741				273,074				284,350				271,421

See accompanying notes to consolidated financial statements.

5

PETCO HEALTH AND WELLNESS COMPANY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands) (Unaudited)

		Thirteen weeks ended								Twenty-six weeks ended
		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net income (loss) attributable to Class A and B-1    common stockholders		$	13,972			$	(24,823	)		$	2,311			$	(71,306	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment			7,637				(10,921	)			7,669				(9,256	)
Unrealized gain (loss) on derivatives			861				(7,848	)			(1,406	)			(1,476	)
Gains on derivatives reclassified to income			(152	)			(862	)			(311	)			(1,712	)
Total other comprehensive income (loss), net of tax			8,346				(19,631	)			5,952				(12,444	)
Comprehensive income (loss) attributable to Class A and    B-1 common stockholders		$	22,318			$	(44,454	)		$	8,263			$	(83,750	)

See accompanying notes to consolidated financial statements.

6

PETCO HEALTH AND WELLNESS COMPANY, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(In thousands) (Unaudited)

		Common stock
		Class A (shares)				Class B-1 (shares)				Class B-2 (shares)				Amount				Additional paid-in capital				Accumulated deficit				Accumulated other comprehensive loss				Total stockholders’ equity
Balance at February 1, 2025			239,066				37,791				37,791			$	277			$	2,280,495			$	(1,149,059	)		$	(18,083	)		$	1,113,630
Equity-based compensation expense    (Note 7)			—				—				—				—				9,445				—				—				9,445
Net loss			—				—				—				—				—				(11,661	)			—				(11,661	)
Foreign currency translation    adjustment, net of tax			—				—				—				—				—				—				32				32
Unrealized loss on derivatives (Note 5),    net of tax			—				—				—				—				—				—				(2,267	)			(2,267	)
Gains on derivatives reclassified to    income (Note 5), net of tax			—				—				—				—				—				—				(159	)			(159	)
Issuance of common stock,    net of tax withholdings			1,765				—				—				2				(1,692	)			—				—				(1,690	)
Balance at May 3, 2025			240,831				37,791				37,791			$	279			$	2,288,248			$	(1,160,720	)		$	(20,477	)		$	1,107,330
Equity-based compensation expense    (Note 7)			—				—				—				—				8,807				—				—				8,807
Net income			—				—				—				—				—				13,972				—				13,972
Foreign currency translation    adjustment, net of tax			—				—				—				—				—				—				7,637				7,637
Unrealized gain on derivatives (Note 5),    net of tax			—				—				—				—				—				—				861				861
Gains on derivatives reclassified to    income (Note 5), net of tax			—				—				—				—				—				—				(152	)			(152	)
Issuance of common stock,    net of tax withholdings			1,233				—				—				1				647				—				—				648
Balance at August 2, 2025			242,064				37,791				37,791			$	280			$	2,297,702			$	(1,146,748	)		$	(12,131	)		$	1,139,103

		Common stock
		Class A (shares)				Class B-1 (shares)				Class B-2 (shares)				Amount				Additional paid-in capital				Accumulated deficit				Accumulated other comprehensive income (loss)				Total stockholders’ equity
Balance at February 3, 2024			231,156				37,791				37,791			$	269			$	2,229,582			$	(1,047,243	)		$	1,821			$	1,184,429
Equity-based compensation expense    (Note 7)			—				—				—				—				17,451				—				—				17,451
Net loss			—				—				—				—				—				(46,483	)			—				(46,483	)
Foreign currency translation    adjustment, net of tax			—				—				—				—				—				—				1,665				1,665
Unrealized gain on derivatives (Note 5),    net of tax			—				—				—				—				—				—				6,372				6,372
Gains on derivatives reclassified to    income (Note 5), net of tax			—				—				—				—				—				—				(850	)			(850	)
Issuance of common stock,    net of tax withholdings			1,793				—				—				2				(277	)			—				—				(275	)
Balance at May 4, 2024			232,949				37,791				37,791			$	271			$	2,246,756			$	(1,093,726	)		$	9,008			$	1,162,309
Equity-based compensation expense    (Note 7)			—				—				—				—				11,879				—				—				11,879
Net loss			—				—				—				—				—				(24,823	)			—				(24,823	)
Foreign currency translation    adjustment, net of tax			—				—				—				—				—				—				(10,921	)			(10,921	)
Unrealized loss on derivatives (Note 5),    net of tax			—				—				—				—				—				—				(7,848	)			(7,848	)
Gains on derivatives reclassified to    income (Note 5), net of tax			—				—				—				—				—				—				(862	)			(862	)
Issuance of common stock,    net of tax withholdings			2,878				—				—				3				1,746				—				—				1,749
Balance at August 3, 2024			235,827				37,791				37,791			$	274			$	2,260,381			$	(1,118,549	)		$	(10,623	)		$	1,131,483

See accompanying notes to consolidated financial statements.

7

PETCO HEALTH AND WELLNESS COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

		Twenty-six weeks ended
		August 2, 2025				August 3, 2024
Cash flows from operating activities:
Net income (loss)		$	2,311			$	(71,306	)
Adjustments to reconcile net income (loss) to net cash provided by operating    activities:
Depreciation and amortization			98,649				99,305
Amortization of debt discounts and issuance costs			2,499				2,435
Provision for deferred taxes			1,113				(27,782	)
Equity-based compensation			18,209				29,348
Impairments, write-offs and losses on sale of fixed and other assets			522				7,069
Income from equity method investees			(8,694	)			(9,077	)
Amounts reclassified out of accumulated other comprehensive loss			(413	)			(2,274	)
Non-cash operating lease costs			205,005				207,605
Other non-operating loss			—				2,665
Changes in assets and liabilities:
Receivables			5,783				(2,083	)
Merchandise inventories			44,823				11,769
Prepaid expenses and other assets			(9,487	)			(7,166	)
Accounts payable and book overdrafts			(69,691	)			(9,644	)
Accrued salaries and employee benefits			(26,729	)			34,591
Accrued expenses and other liabilities			14,508				3,015
Operating lease liabilities			(206,414	)			(209,738	)
Other long-term liabilities			(1,556	)			2,224
Net cash provided by operating activities			70,438				60,956
Cash flows from investing activities:
Cash paid for fixed assets			(60,516	)			(60,029	)
Cash paid for acquisitions, net of cash acquired			—				(259	)
Proceeds from investment			—				998
Proceeds from sale of assets			2,425				1,019
Cash received from partial surrender of officers' life insurance			—				206
Net cash used in investing activities			(58,091	)			(58,065	)
Cash flows from financing activities:
Borrowings under long-term debt agreements			—				201,000
Repayments of long-term debt			—				(201,000	)
Debt refinancing costs			—				(3,028	)
Payments for finance lease liabilities			(3,252	)			(3,528	)
Proceeds from employee stock purchase plan and stock option exercises			1,998				1,630
Tax withholdings on stock-based awards			(3,026	)			(3,468	)
Proceeds from issuance of common stock			—				2,500
Net cash used in financing activities			(4,280	)			(5,894	)
Net increase (decrease) in cash, cash equivalents and restricted cash			8,067				(3,003	)
Cash, cash equivalents and restricted cash at beginning of period			181,665				136,649
Cash, cash equivalents and restricted cash at end of period		$	189,732			$	133,646
Supplemental cash flow disclosures:
Interest paid, net		$	62,441			$	69,399
Income taxes paid		$	3,022			$	15,581
Supplemental non-cash investing and financing activities disclosure:
Accounts payable and accrued expenses for capital expenditures		$	13,415			$	15,684

See accompanying notes to consolidated financial statements.

8

PETCO HEALTH AND WELLNESS COMPANY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Significant Accounting Policies

Basis of Presentation

Petco Health and Wellness Company, Inc. (together with its consolidated subsidiaries, the “Company”) is a pet specialty retailer focused on improving the lives of pets, pet parents, and its own partners. The Company manages its business as one reportable operating segment.

In the opinion of management, the accompanying consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the United States (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Consolidated Financial Statements.

There have been no significant changes from the significant accounting policies disclosed in Note 1 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2025.

The accompanying consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Interim financial results are not necessarily indicative of results anticipated for the full year. The accompanying consolidated financial statements and these Notes to Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2025, from which the prior year balance sheet information herein was derived.

Use of Estimates

The preparation of these consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. These estimates are based on information that is currently available and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could vary from those estimates under different assumptions or conditions.

Derivative Instruments

In November 2022, the Company entered into a series of interest rate cap agreements to limit the maximum interest on a portion of the Company’s variable-rate debt and decrease its exposure to interest rate variability relating to the three-month Secured Overnight Financing Rate as published by CME Group ("Term SOFR"). The interest rate caps became effective December 30, 2022 and expired on December 31, 2024. The interest rate caps were accounted for as cash flow hedges, and changes in the fair value of the interest rate caps are reported as a component of accumulated other comprehensive income (loss) ("AOCI").

The Company has also entered into interest rate collar and interest rate swap agreements to limit the maximum interest on a portion of the Company’s variable-rate debt and decrease its exposure to interest rate variability relating to three-month Term SOFR.

The interest rate collars and swap are accounted for as cash flow hedges, and changes in the fair value are reported as a component of AOCI.

9

Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheets to the total amounts reported in the consolidated statements of cash flows (in thousands):

		August 2, 2025				February 1, 2025
Cash and cash equivalents		$	188,748			$	165,756
Restricted cash included in other current assets			984				15,909
Total cash, cash equivalents and restricted cash in    the statement of cash flows		$	189,732			$	181,665

2. Revenue Recognition

Net sales by product type and services were as follows (in thousands):

	Thirteen weeks ended								Twenty-six weeks ended
	August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Consumables	$	729,918			$	744,766			$	1,477,988			$	1,508,740
Supplies and companion animals		495,687				518,983				989,508				1,034,740
Services and other		262,924				260,006				514,432				509,415
Net sales	$	1,488,529			$	1,523,755			$	2,981,928			$	3,052,895

3. Goodwill

The Company has one reporting unit. The Company performs its annual impairment test during the fourth quarter of each fiscal year or more frequently when warranted by events or changes in circumstances.

During the first quarter of fiscal 2024, due to declines in the Company's share price, the Company performed an interim impairment test. As the estimated fair value of the Company's reporting unit was in excess of its carrying value, the Company concluded that goodwill was not impaired during the first quarter of fiscal 2024. The fair value of the Company's reporting unit was based upon an equal weighting of the income and market approaches, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows, as well as valuation multiples derived from comparable publicly traded companies that are applied to operating performance of the reporting unit.

Significant assumptions used in the determination of fair value of the reporting unit generally include prospective financial information, discount rates, terminal growth rates, and earnings multiples. The discounted cash flow model used to determine the fair value of the reporting unit during the first quarter of fiscal 2024 reflected the Company's most recent cash flow projections, a discount rate of 13.2%, and a terminal growth rate of 3%. The reporting unit fair value measurement is classified as Level 3 in the fair value hierarchy because it involves significant unobservable inputs.

There were no triggering events identified and no indications of impairment of the Company’s goodwill during the thirteen week period ended August 3, 2024 and the thirteen and twenty-six week periods ended August 2, 2025.

4. Senior Secured Credit Facilities

The Company has a secured term loan facility maturing on March 4, 2028 (the “First Lien Term Loan”) and a secured asset-based revolving credit facility with availability of up to $581.0 million, subject to a borrowing base (as amended from time to time, the “ABL Revolving Credit Facility”). The first tranche of the ABL Revolving Credit

10

Facility has availability of up to $35.0 million, subject to a borrowing base, maturing on March 4, 2026. The second tranche has availability of up to $546.0 million, subject to a borrowing base, maturing on March 29, 2029. Interest on the ABL Revolving Credit Facility is based on, at the Company's option, either the base rate subject to a 1% floor, or Term SOFR subject to a floor of 0%, plus an applicable margin.

As of August 2, 2025, the Company was in compliance with its covenants under the First Lien Term Loan and the ABL Revolving Credit Facility.

Term Loan Facilities

As of August 2, 2025, the outstanding principal balance of the First Lien Term Loan was $1,595.3 million ($1,584.4 million, net of the unamortized discount and debt issuance costs). As of February 1, 2025, the outstanding principal balance of the First Lien Term Loan was $1,595.3 million ($1,582.5 million, net of the unamortized discount and debt issuance costs). The weighted average interest rate on the borrowings outstanding was 7.9% as of August 2, 2025 and February 1, 2025. Debt issuance costs are being amortized over the contractual term to interest expense using the effective interest rate in effect at issuance. As of August 2, 2025 and February 1, 2025, the estimated fair value of the First Lien Term Loan was approximately $1,479.6 million and $1,529.5 million, respectively, based upon Level 2 fair value hierarchy inputs.

Revolving Credit Facilities

In March 2024, the Company amended the ABL Revolving Credit Facility to increase its total availability and extend the maturity on a portion of the availability. Fees of $3.0 million relating to the Company’s entry into the amendment were capitalized as debt issuance costs. These fees consisted of arranger fees and other third-party expenses. The unamortized portion of the debt issuance costs of the ABL Revolving Credit Facility previously capitalized is being amortized over the amended contractual term.

As of August 2, 2025 and February 1, 2025, no amounts were outstanding under the ABL Revolving Credit Facility. As of August 2, 2025, $495.2 million was available under the ABL Revolving Credit Facility, which is net of $58.4 million of outstanding letters of credit issued in the normal course of business and a $27.4 million borrowing base reduction based on qualifying assets. As of August 2, 2025 and February 1, 2025, unamortized debt issuance costs of $3.8 million and $4.4 million, respectively, relating to the ABL Revolving Credit Facility were outstanding and were being amortized using the straight-line method over the remaining term of the agreement.

Prior to the March 2024 amendment, interest on the ABL Revolving Credit Facility was based on, at the Company’s option, either the base rate or Adjusted Term SOFR subject to a floor of 0%, in either case, plus an applicable margin. Following the March 2024 amendment, interest on the ABL Revolving Credit Facility is now based on, at the Company’s option, either the base rate subject to a 1% floor, or Term SOFR subject to a floor of 0%, plus an applicable margin. The applicable margin is currently equal to 25 basis points in the case of base rate loans and 125 basis points in the case of Term SOFR loans.

5. Derivative Instruments

The interest rate swap, caps and collars are accounted for as cash flow hedges because they are expected to be highly effective in hedging variable rate interest payments. Changes in the fair value of the cash flow hedges are reported as a component of AOCI. As of August 2, 2025, AOCI included unrealized losses of $1.9 million ($1.5 million, net of tax). As of February 1, 2025, AOCI included unrealized gains of $0.4 million ($0.3 million, net of tax). Approximately $0.2 million and $0.4 million of pre-tax gains deferred in AOCI were reclassified to interest expense during the thirteen and twenty-six week periods ended August 2, 2025, respectively. Approximately $1.1 million and $2.3 million of pre-tax gains deferred in AOCI were reclassified to interest expense during the thirteen and twenty-six week periods ended August 3, 2024, respectively. The Company currently estimates that $0.5 million of losses related to trade date costs on its cash flow hedges that are currently deferred in AOCI will be reclassified to interest expense in the consolidated statement of operations within the next twelve months. This estimate could vary based on actual amounts as a result of changes in market conditions.

11

The cash flow hedges are reflected in the Company’s consolidated balance sheets as follows (in thousands):

Assets (Liabilities)		Balance sheet location		August 2, 2025				February 1, 2025
Current asset portion of cash flow hedges		Other current assets		$	589			$	1,194
Non-current asset portion of cash flow    hedges		Other long-term assets			—				746
Current liability portion of cash flow    hedges		Accrued expenses and other liabilities			(379	)			(107	)
Non-current liability portion of cash flow    hedges		Other long-term liabilities			(1,553	)			(554	)
Total cash flow hedges				$	(1,343	)		$	1,279

6. Fair Value Measurements

Assets and Liabilities Measured on a Recurring Basis

The following table presents information about assets and liabilities that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value (in thousands):

		August 2, 2025
		Level 1				Level 2				Level 3
Assets (liabilities):
Money market mutual funds		$	136,983			$	—			$	—
Investments of officers' life insurance		$	—			$	15,031			$	—
Non-qualified deferred compensation plan		$	—			$	(13,328	)		$	—

		February 1, 2025
		Level 1				Level 2				Level 3
Assets (liabilities):
Money market mutual funds		$	127,109			$	—			$	—
Investments of officers' life insurance		$	—			$	14,630			$	—
Non-qualified deferred compensation plan		$	—			$	(13,996	)		$	—

The fair value of money market mutual funds is based on quoted market prices, such as quoted net asset values published by the fund as supported in an active market. Money market mutual funds included in the Company’s cash and cash equivalents were $136.0 million and $111.5 million as of August 2, 2025 and February 1, 2025, respectively. Also included in the Company’s money market mutual funds balances were $1.0 million and $15.6 million as of August 2, 2025 and February 1, 2025, respectively, which relate to the Company’s restricted cash, and are included in other current assets in the consolidated balance sheets.

The Company maintains a deferred compensation plan for key executives and other members of management, which is funded by investments in officers’ life insurance. The fair value of this obligation is based on participants’ elected investments, which reflect the closing market prices of similar assets.

The Company holds certain investments in equity securities without readily determinable fair values. When an upward or downward adjustment occurs, the resulting gains or losses are included in other non-operating income in the consolidated statements of operations.

Assets Measured on a Non-Recurring Basis

The Company’s non-financial assets, which primarily consist of goodwill, other intangible assets, fixed assets and equity and other investments, are reported at carrying value, or at fair value as of the date of the Company’s acquisition of Petco Holdings, Inc. LLC on January 26, 2016, and are not required to be measured at fair value on a recurring basis. However, on a periodic basis (at least annually for goodwill and indefinite-lived intangibles or

12

whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable), non-financial assets are assessed for impairment. If impaired, the carrying values of the assets are written down to fair value using Level 3 inputs.

The Company’s trade name has an indefinite life. The Company performs its annual impairment test during the fourth quarter of each fiscal year, or more frequently when warranted by events or changes in circumstances. During the first quarter of fiscal 2024, due to declines in the Company's share price, the Company performed an interim impairment test of its goodwill and indefinite-lived trade name. Refer to Note 3 for further discussion of the results of interim impairment testing performed on the Company’s goodwill.

The fair value of the Company’s trade name was estimated by management using the relief from royalty valuation method, which estimates the hypothetical royalties that would have to be paid if the trade name was not owned. The fair value of the Company's trade name reflected the Company's most recent revenue projections, a discount rate of 14.2% and a terminal growth rate of 3%. The Company concluded that the fair value of its trade name exceeded its carrying value, and therefore no trade name impairment charge was recorded during the first quarter of fiscal 2024. The Company's trade name fair value measurement is classified as Level 3 in the fair value hierarchy because it involves significant unobservable inputs.

There were no triggering events identified and no indications of impairment of the Company’s goodwill, indefinite-lived trade name, other intangible assets or equity and other investments during the thirteen and twenty-six week periods ended August 2, 2025. There were no indications of impairment of the Company’s other intangible assets or equity and other investments during the thirteen and twenty-six week periods ended August 3, 2024. During the thirteen and twenty-six week periods ended August 2, 2025, the Company recorded fixed asset and right-of-use asset impairment charges of $0.3 million and $0.9 million, respectively. During the thirteen and twenty-six week periods ended August 3, 2024, the Company recorded fixed asset and right-of-use asset impairment charges of $3.4 million and $6.9 million, respectively.

7. Stockholders’ Equity

Equity-Based Compensation

Equity-based compensation awards under the Company’s current equity incentive plan (as amended, the “2021 Equity Incentive Plan”) include restricted stock units (“RSUs,” which include performance-based stock units and market-based stock units), restricted stock awards (“RSAs”), non-qualified stock options, and other equity compensation awards. In addition, the Company has made equity-based compensation awards of RSUs and non-qualified stock options outside of the 2021 Equity Incentive Plan as employment inducement awards (collectively, the “Inducement Awards”). The Company also has an employee stock purchase plan (“ESPP”).

The Company’s controlling parent, Scooby LP, also maintains an incentive plan (the “2016 Incentive Plan”) under which it has awarded partnership unit awards to certain current and former employees, consultants, and non-employee directors of the Company that are restricted profit interests in Scooby LP subject to a distribution threshold (“Series C Units”).

The following table summarizes the Company’s equity-based compensation expense by award type (in thousands):

		Thirteen weeks ended								Twenty-six weeks ended
		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
RSUs and RSAs		$	6,908			$	8,946			$	14,643			$	19,668
Options			1,439				2,465				2,804				8,018
ESPP			415				314				753				634
Other awards			27				189				9				1,028
Total equity-based compensation expense		$	8,789			$	11,914			$	18,209			$	29,348

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Activity under the 2021 Equity Incentive Plan and the Inducement Awards was as follows (shares and dollars in thousands):

		RSUs and RSAs				Options
Nonvested/outstanding, February 1, 2025			12,180				11,685
Granted			15,002				3,050
Vested and delivered/exercised			(3,232	)			—
Forfeited/expired			(1,976	)			(926	)
Nonvested/outstanding, August 2, 2025			21,974				13,809
Unrecognized compensation expense as of August 2, 2025		$	49,808			$	11,811
Weighted average remaining expense period as of August 2, 2025		2.3  years				2.2 years

The ESPP allows eligible employees to contribute up to 15% of their base earnings towards purchases of Class A common stock, subject to an annual maximum. The purchase price will be 85% of the lower of (i) the fair market value of the stock on the associated lookback date and (ii) the fair market value of the stock on the last day of the related purchase period.

Series C Unit activity under the 2016 Incentive Plan was as follows (in thousands):

		Units
Outstanding, February 1, 2025			192,835
Granted			—
Forfeited			(472	)
Outstanding, August 2, 2025			192,363
Vested, August 2, 2025			190,448

No additional Series C Units have been or will be awarded following the Company’s initial public offering. In addition to acceleration upon a change in control, a portion of grantees’ Series C Units may vest upon certain levels of direct or indirect sales by Scooby LP of the Company’s Class A common stock, and all unvested Series C Units will fully accelerate in the event Scooby LP sells 90% of its direct or indirect holdings of the Company’s Class A common stock.

Earnings (Loss) Per Share

Potentially dilutive securities include potential Class A common shares related to outstanding stock options, unvested RSUs and RSAs, and the ESPP, calculated using the treasury stock method. The calculation of diluted shares outstanding excludes securities where the combination of the exercise or purchase price (in the case of options and the ESPP) and the associated unrecognized compensation expense is greater than the average market price of Class A common shares because the inclusion of these securities would be anti-dilutive.

There were approximately 16.5 million potential shares that were anti-dilutive and excluded from the computation of diluted shares outstanding during the twenty-six weeks ended August 2, 2025.

All outstanding equity awards were excluded from the calculation of diluted loss per Class A and B-1 common share in the twenty-six weeks ended August 3, 2024, as their effect would be antidilutive in a net loss period.

8. Commitments and Contingencies

The Company is involved in legal proceedings and is subject to other claims and litigation arising in the ordinary course of its business. The Company has made accruals with respect to certain of these matters, where appropriate, which are reflected in the Company’s consolidated financial statements but are not, individually or in the aggregate, considered material. For other matters, the Company has not made accruals because management has

14

not yet determined that a loss is probable or because the amount of loss cannot be reasonably estimated. While the ultimate outcome of the matters cannot be determined, the Company currently does not expect that these matters will have a material adverse effect on its consolidated financial statements. The outcome of any litigation is inherently uncertain, however, and if decided adversely to the Company, or if the Company determines that settlement of particular litigation is appropriate, the Company may be subject to liability that could have a material adverse effect on its consolidated financial statements.

9. Reportable Segment

The Company has one reportable segment managed on a consolidated basis. The measure of segment profit or loss is consolidated net income (loss) that is reported on the consolidated statement of operations. The measure of segment assets is reported on the consolidated balance sheet as total assets.

The following represents segment information for the Company’s single operating segment, for the periods presented (in thousands):

		Thirteen weeks ended								Twenty-six weeks ended
		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Revenue		$	1,488,529			$	1,523,755			$	2,981,928			$	3,052,895
Add (deduct):
Cost of sales			(903,210	)			(943,030	)			(1,826,641	)			(1,893,510	)
Advertising and marketing    expenses			(37,921	)			(37,227	)			(73,367	)			(79,834	)
Stock compensation - general and    administrative			(8,656	)			(11,914	)			(17,979	)			(29,348	)
Other general and    administrative expenses (1)			(495,720	)			(529,116	)			(1,004,560	)			(1,064,517	)
Interest income			909				672				2,268				1,090
Interest expense			(33,297	)			(36,805	)			(66,791	)			(73,622	)
Other non-operating loss			—				—				—				(2,665	)
Income tax (expense) benefit			(746	)			4,651				(1,241	)			9,128
Income from equity method investees			4,084				4,191				8,694				9,077
Consolidated net income (loss)		$	13,972			$	(24,823	)		$	2,311			$	(71,306	)

(1)Other general & administrative expenses include pet care center expenses, support center labor and occupancy costs, legal, accounting, information technology, and consulting costs, depreciation and amortization, as well as impairments, write-offs, and losses on the sale of fixed and other assets.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the accompanying notes included elsewhere in this Quarterly Report on Form 10-Q (this “Form 10-Q”), as well as the corresponding Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025 (the “2024 Form 10-K”). The discussion and analysis below contains certain forward-looking statements about our business and operations that are subject to the risks, uncertainties, and other factors referred to in Part II, Item 1A, “Risk Factors” of this Form 10-Q. These risks, uncertainties, and other factors could cause our actual results to differ materially from those expressed in, or implied by, the forward-looking statements. The risks described in this Form 10-Q and in other documents we file from time to time with the U.S. Securities and Exchange Commission (the “SEC”), including the section entitled “Forward-Looking Statements” in this Form 10-Q, should be carefully reviewed. All amounts herein are unaudited.

Overview

Petco Health and Wellness Company, Inc. (“Petco”, the “Company”, “we”, “our” and “us”) is a pet specialty retailer focused on improving the lives of pets, pet parents, and our own partners. Through our omnichannel ecosystem, we provide our customers with a comprehensive offering of products and services to fulfill all of their pets’ needs through our more than 1,500 pet care centers in the U.S., Mexico, and Puerto Rico, our digital channel, and our flexible fulfillment options.

Our multicategory strategy integrates our digital assets with our nationwide physical footprint to meet the needs of pet parents who are looking for a single source for all their pets' needs. Petco.com, our e-commerce site, and the Petco app, our personalized mobile app, together serve as hubs for pet parents to book appointments and manage all of their pets’ needs, while enabling them to shop wherever, whenever, and however they want.

We strive to be a company that is improving millions of pet lives as well as the lives of pet parents and the partners who work for us. In tandem with Petco Love, an independent 501(c)(3) nonprofit organization, we work with and support thousands of local animal welfare groups across the country and, through these partnerships and in-store adoption events, we have helped find homes for approximately 7 million animals.

Macroeconomic factors, including interest rates, potential inflationary pressures, tariffs, and global economic and geopolitical developments have had varying impacts on our results of operations that are difficult to isolate and quantify. We cannot predict the duration or ultimate severity of these macroeconomic factors or the ultimate impact on our operations and liquidity. Please refer to the risk factors referred to in Part II, Item 1A, “Risk Factors” of this Form 10-Q.

How We Assess the Performance of Our Business

In assessing our performance, we consider a variety of performance and financial measures, including the following:

Comparable Sales

Comparable sales is an important measure throughout the retail industry and includes both retail and digital sales of products and services. A new location or digital site is included in comparable sales beginning on the first day of the fiscal month following 12 full fiscal months of operation and is subsequently compared to like time periods from the previous year. Relocated pet care centers become comparable pet care centers on the first day of operation if the original pet care center was open longer than 12 full fiscal months. If, during the period presented, a pet care center was closed, sales from that pet care center are included up to the first day of the month of closing. There may be variations in the way in which some of our competitors and other retailers calculate comparable sales. As a result, data in this filing regarding our comparable sales may not be comparable to similar data made available by other retailers.

Comparable sales allow us to evaluate how our overall ecosystem is performing by measuring the change in period-over-period net sales from locations and digital sites that have been open for the applicable period. We intend to improve comparable sales by continuing initiatives aimed to increase customer retention, frequency of visits, and basket size. General macroeconomic and retail business trends are also a key driver of changes in comparable sales.

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Non-GAAP Financial Measures

Management and our board of directors review, in addition to GAAP (as defined herein) measures, certain non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, to evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. Further explanations of these non-GAAP measures, along with reconciliations to their most comparable GAAP measures, are presented below under “Reconciliation of Non-GAAP Financial Measures to GAAP Measures.”

Executive Summary

Comparing the thirteen weeks ended August 2, 2025 with the thirteen weeks ended August 3, 2024 (unless otherwise noted), our results included the following:

•a decrease in net sales from $1.52 billion to $1.49 billion, representing a period-over-period decrease of 2.3% and a comparable sales decrease of 1.4%;

•operating income of $43.0 million, compared to operating income of $2.5 million in the prior year period;

•net income attributable to Class A and B-1 common stockholders of $14.0 million, compared to net loss attributable to Class A and B-1 common stockholders of $24.8 million in the prior year period; and

•an increase in Adjusted EBITDA from $83.5 million to $113.9 million.

Results of Operations

The following tables summarize our results of operations and the percent of net sales of line items included in our consolidated statements of operations (dollars in thousands):

		Thirteen weeks ended								Twenty-six weeks ended
		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net sales:
Products		$	1,225,605			$	1,263,749			$	2,467,496			$	2,543,480
Services and other			262,924				260,006				514,432				509,415
Total net sales			1,488,529				1,523,755				2,981,928				3,052,895
Cost of sales:
Products			747,143				787,103				1,513,428				1,579,825
Services and other			156,067				155,927				313,213				313,685
Total cost of sales			903,210				943,030				1,826,641				1,893,510
Gross profit			585,319				580,725				1,155,287				1,159,385
Selling, general and administrative expenses			542,297				578,257				1,095,906				1,173,699
Operating income (loss)			43,022				2,468				59,381				(14,314	)
Interest income			(909	)			(672	)			(2,268	)			(1,090	)
Interest expense			33,297				36,805				66,791				73,622
Other non-operating loss			—				—				—				2,665
Income (loss) before income taxes and income    from equity method investees			10,634				(33,665	)			(5,142	)			(89,511	)
Income tax expense (benefit)			746				(4,651	)			1,241				(9,128	)
Income from equity method investees			(4,084	)			(4,191	)			(8,694	)			(9,077	)
Net income (loss) attributable to Class A and B-1    common stockholders		$	13,972			$	(24,823	)		$	2,311			$	(71,306	)

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		Thirteen weeks ended								Twenty-six weeks ended
		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net sales:
Products			82.3	%			82.9	%			82.7	%			83.3	%
Services and other			17.7				17.1				17.3				16.7
Total net sales			100.0				100.0				100.0				100.0
Cost of sales:
Products			50.2				51.7				50.8				51.7
Services and other			10.5				10.2				10.5				10.3
Total cost of sales			60.7				61.9				61.3				62.0
Gross profit			39.3				38.1				38.7				38.0
Selling, general and administrative expenses			36.4				37.9				36.8				38.4
Operating income (loss)			2.9				0.2				1.9				(0.4	)
Interest income			(0.1	)			(0.0	)			(0.1	)			(0.0	)
Interest expense			2.3				2.4				2.2				2.4
Other non-operating loss			—				—				—				0.1
Income (loss) before income taxes and income    from equity method investees			0.7				(2.2	)			(0.2	)			(2.9	)
Income tax expense (benefit)			0.1				(0.3	)			0.0				(0.3	)
Income from equity method investees			(0.3	)			(0.3	)			(0.3	)			(0.3	)
Net income (loss) attributable to Class A and B-1    common stockholders			0.9	%			(1.6	)%			0.1	%			(2.3	)%

		Thirteen weeks ended								Twenty-six weeks ended
		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Operational Data:
Comparable sales change			(1.4	)%			0.3	%			(1.3	)%			(0.5	)%
Total pet care centers (U.S. and Puerto Rico) at end of period			1,388				1,420				1,388				1,420
Adjusted EBITDA (in thousands)		$	113,860			$	83,523			$	203,309			$	159,167

Thirteen and Twenty-six Weeks Ended August 2, 2025 Compared with Thirteen and Twenty-six Weeks Ended August 3, 2024

Net Sales and Comparable Sales

	Thirteen weeks ended																Twenty-six weeks ended
(dollars in thousands)	August 2, 2025				August 3, 2024				$ Change				% Change				August 2, 2025				August 3, 2024				$ Change				% Change
Consumables	$	729,918			$	744,766			$	(14,848	)			(2.0	%)		$	1,477,988			$	1,508,740			$	(30,752	)			(2.0	%)
Supplies and companion animals		495,687				518,983				(23,296	)			(4.5	%)			989,508				1,034,740				(45,232	)			(4.4	%)
Services and other		262,924				260,006				2,918				1.1	%			514,432				509,415				5,017				1.0	%
Net sales	$	1,488,529			$	1,523,755			$	(35,226	)			(2.3	%)		$	2,981,928			$	3,052,895			$	(70,967	)			(2.3	%)

Net sales decreased $35.2 million, or 2.3%, to $1.49 billion in the thirteen weeks ended August 2, 2025 compared to net sales of $1.52 billion in the thirteen weeks ended August 3, 2024. Net sales decreased $71.0 million, or 2.3%, to $2.98 billion in the twenty-six weeks ended August 2, 2025 compared to net sales of $3.05 billion in the twenty-six weeks ended August 3, 2024. The sales decrease primarily reflects lower transaction volume and a lower pet care center count, as well as a greater focus on profitability and margin through a more disciplined approach to managing unit costs, pricing, and promotional strategies. We continue to experience momentum in services, driven in part by our strategic investments in customer acquisition and retention, as well as efforts to optimize our existing veterinary hospital footprint.

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We are unable to quantify certain factors impacting sales described above due to the fact that such factors are based on input measures or qualitative information that do not lend themselves to quantification.

Gross Profit

As a percentage of net sales, our gross profit rate was 39.3% for the thirteen weeks ended August 2, 2025 compared with 38.1% for the thirteen weeks ended August 3, 2024. As a percentage of net sales, our gross profit rate was 38.7% for the twenty-six weeks ended August 2, 2025 compared with 38.0% for the twenty-six weeks ended August 3, 2024. The increase between the periods reflects improved utilization of our services footprint, as well as more effective management of our inventory, unit costs, pricing, and promotional strategies. We are unable to quantify the factors impacting gross profit rate described above due to the fact that such factors are based on input measures or qualitative information that do not lend themselves to quantification.

Selling, General and Administrative (“SG&A”) Expenses

As a percentage of net sales, SG&A expenses were 36.4% for the thirteen weeks ended August 2, 2025 compared with 37.9% for the thirteen weeks ended August 3, 2024. As a percentage of net sales, SG&A expenses were 36.8% for the twenty-six weeks ended August 2, 2025 compared with 38.4% for the twenty-six weeks ended August 3, 2024. The decrease in SG&A expenses between the periods was primarily due to lower payroll and other compensation costs, which included improved actuarial results from employee benefits optimization initiatives, as well as lower consulting costs. In addition, the Company incurred disposition costs relating to its Pupbox business during the twenty-six weeks ended August 3, 2024.

Interest Expense

Interest expense decreased $3.5 million, or 9.5%, to $33.3 million in the thirteen weeks ended August 2, 2025 compared with $36.8 million in the thirteen weeks ended August 3, 2024. Interest expense decreased $6.8 million, or 9.3%, to $66.8 million in the twenty-six weeks ended August 2, 2025 compared with $73.6 million in the twenty-six weeks ended August 3, 2024. The decrease was primarily driven by lower interest rates on the First Lien Term Loan during the thirteen and twenty-six week periods ended August 2, 2025. For more information, refer to Note 4, “Senior Secured Credit Facilities,” to the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.

Other Non-Operating Loss

There was no other non-operating income or loss recognized during the thirteen and twenty-six week periods ended August 2, 2025. There was no other non-operating income or loss recognized during the thirteen weeks ended August 3, 2024. Other non-operating loss was $2.7 million for the twenty-six weeks ended August 3, 2024. For more information, refer to Note 6, “Fair Value Measurements,” to the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.

Income Tax Expense (Benefit)

Our effective tax rates were 5.1% and 34.9%, resulting in income tax expense of $0.7 million and $1.2 million for the thirteen and twenty-six weeks ended August 2, 2025, respectively, compared to effective tax rates of 14.7% and 11.3%, resulting in income tax benefit of $4.7 million and $9.1 million for the thirteen and twenty-six weeks ended August 3, 2024, respectively. The change in effective tax rates for the thirteen and twenty-six weeks ended August 2, 2025 was primarily driven by a change in earnings and a decrease in the amount of compensation associated expenses not expected to be deductible for corporate income tax purposes.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. OBBBA introduces significant changes to U.S. income-tax legislation. Key provisions affecting the Company include (i) 100 percent bonus depreciation for qualified property placed in service after January 19, 2025, (ii) immediate expensing of domestic research and experimental expenditures starting January 1, 2025, and (iii) an increase to the cap on the deductibility of business interest expense for taxable years starting after December 31, 2024.

In accordance with ASC 740, the Company has recognized the effects of the new tax law in the period of enactment. The impact of OBBBA for the quarter ended August 2, 2025 resulted in a reduction to current income tax expense, primarily due to the restoration of 100% bonus depreciation, immediate expensing of domestic research

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and experimental expenditures, and changes to the 163(j) interest limitation. This reduction was substantially offset by a corresponding increase in deferred income tax expense.

The net effect of OBBBA did not have a material impact on the Company’s effective tax rate for the period. The Company continues to evaluate the impact of OBBBA on its consolidated financial statements and will update its estimates as additional guidance becomes available.

Reconciliation of Non-GAAP Financial Measures to GAAP Measures

The following information provides definitions and reconciliations of certain non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Such non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the most comparable GAAP measures. The non-GAAP financial measures presented may differ from similarly-titled measures used by other companies.

Adjusted EBITDA

We present Adjusted EBITDA, a non-GAAP financial measure, because we believe it enhances an investor’s understanding of our financial and operational performance by excluding certain material non-cash items, unusual or non-recurring items that we do not expect to continue in the future, and certain other adjustments we believe are or are not reflective of our ongoing operations and performance. Adjusted EBITDA enables operating performance to be reviewed across reporting periods on a consistent basis. We use Adjusted EBITDA as one of the principal measures to evaluate and monitor our operating financial performance and to compare our performance to others in our industry. We also use Adjusted EBITDA in connection with establishing discretionary annual incentive compensation targets, to make budgeting decisions, to make strategic decisions regarding the allocation of capital, and to report our quarterly results as defined in our debt agreements, although under such agreements the measure is calculated differently and is used for different purposes.

Adjusted EBITDA is not a substitute for net income (loss), the most comparable GAAP measure, and is subject to a number of limitations as a financial measure, so it should be used in conjunction with GAAP financial measures and not in isolation. There can be no assurances that we will not modify the presentation of Adjusted EBITDA in the future. In addition, other companies in our industry may define Adjusted EBITDA differently, limiting its usefulness as a comparative measure. Refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Reconciliation of Non-GAAP Financial Measures to GAAP Measures” included in the 2024 Form 10-K for more information regarding how we define Adjusted EBITDA.

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The table below reflects the calculation of Adjusted EBITDA and Adjusted EBITDA Margin for the periods presented:

		Thirteen weeks ended								Twenty-six weeks ended
(dollars in thousands)		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net income (loss) attributable to Class A and B-1    common stockholders		$	13,972			$	(24,823	)		$	2,311			$	(71,306	)
Interest expense, net			32,388				36,133				64,523				72,532
Income tax expense (benefit)			746				(4,651	)			1,241				(9,128	)
Depreciation and amortization			49,284				49,718				98,649				99,305
Income from equity method investees			(4,084	)			(4,191	)			(8,694	)			(9,077	)
Asset impairments and write offs			76				3,561				522				7,069
Equity-based compensation			8,789				11,914				18,209				29,348
Other non-operating loss			—				—				—				2,665
Mexico joint venture EBITDA (1)			10,360				9,902				20,558				20,398
Acquisition and divestiture-related costs (2)			—				—				—				3,719
Other costs (3)			2,329				5,960				5,990				13,642
Adjusted EBITDA		$	113,860			$	83,523			$	203,309			$	159,167
Net sales		$	1,488,529			$	1,523,755			$	2,981,928			$	3,052,895
Net margin (4)			0.9	%			(1.6	)%			0.1	%			(2.3	)%
Adjusted EBITDA Margin			7.6	%			5.5	%			6.8	%			5.2	%

(1)Mexico joint venture EBITDA represents 50% of the entity’s operating results for the periods presented, as adjusted to reflect the results on a basis comparable to our Adjusted EBITDA. In the financial statements, this joint venture is accounted for as an equity method investment and reported net of depreciation and income taxes. Because such a presentation would not reflect the adjustments made in our calculation of Adjusted EBITDA, we include our 50% interest in our Mexico joint venture on an Adjusted EBITDA basis to ensure consistency. The table below presents a reconciliation of Mexico joint venture net income to Mexico joint venture EBITDA:

		Thirteen weeks ended								Twenty-six weeks ended
(dollars in thousands)		August 2, 2025				August 3, 2024				August 2, 2025				August 3, 2024
Net income		$	8,167			$	8,822			$	17,387			$	18,377
Depreciation			6,793				6,996				13,390				13,944
Income tax expense			3,935				3,903				8,101				7,359
Foreign currency loss (gain)			696				(380	)			404				99
Interest expense, net			1,129				463				1,833				1,016
EBITDA		$	20,720			$	19,804			$	41,115			$	40,795
50% of EBITDA		$	10,360			$	9,902			$	20,558			$	20,398

(2)Acquisition and divestiture-related costs include direct costs resulting from acquiring, integrating, or divesting businesses. These include third-party professional and legal fees, losses on sales of divestitures, and other integration-related costs that would not have otherwise been incurred as part of the Company's operations.

(3)Other costs include, as incurred: restructuring costs and restructuring-related severance costs; legal reserves associated with significant, non-ordinary course legal or regulatory matters; and costs related to certain significant strategic transactions.

(4)We define net margin as net income (loss) attributable to Class A and B-1 common stockholders divided by net sales and Adjusted EBITDA margin as Adjusted EBITDA divided by net sales.

Free Cash Flow

Free Cash Flow is a non-GAAP financial measure that is calculated as net cash provided by operating activities less cash paid for fixed assets. Management believes that Free Cash Flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company’s financial performance.

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The table below reflects the calculation of Free Cash Flow for the periods presented:

		Twenty-six weeks ended
		August 2, 2025				August 3, 2024
(dollars in thousands)
Net cash provided by operating activities		$	70,438			$	60,956
Cash paid for fixed assets			(60,516	)			(60,029	)
Free Cash Flow		$	9,922			$	927

Liquidity and Capital Resources

Overview

Our primary sources of liquidity are funds generated by operating activities and available capacity for borrowings on our $581.0 million ABL Revolving Credit Facility. Our ability to fund our operations, to make planned capital investments, to make scheduled debt payments and to repay or refinance indebtedness depends on our future operating performance and cash flows, which are subject to prevailing economic conditions and financial, business, and other factors, some of which are beyond our control. Our liquidity as of August 2, 2025 was $683.9 million, inclusive of cash and cash equivalents of $188.7 million and $495.2 million of availability on the ABL Revolving Credit Facility.

We are a party to contractual obligations involving commitments to make payments to third parties. These obligations impact our short-term and long-term liquidity and capital resource needs. We believe that our current resources, together with anticipated cash flows from operations and borrowing capacity under the ABL Revolving Credit Facility will be sufficient to finance our operations, meet our current cash requirements, and fund anticipated capital investments for at least the next 12 months. We may, however, seek additional financing to fund future growth or refinance our existing indebtedness through the debt capital markets, but we cannot be assured that such financing will be available on favorable terms, or at all.

Cash Flows

The following table summarizes our consolidated cash flows:

		Twenty-six weeks ended
(dollars in thousands)		August 2, 2025				August 3, 2024
Total cash provided by (used in):
Operating activities		$	70,438			$	60,956
Investing activities			(58,091	)			(58,065	)
Financing activities			(4,280	)			(5,894	)
Net increase (decrease) in cash, cash equivalents   and restricted cash		$	8,067			$	(3,003	)

Operating Activities

Our primary source of operating cash is sales of products and services to customers, which are substantially all on a cash basis, and therefore provide us with a significant source of liquidity. Our primary uses of cash in operating activities include: purchases of inventory; freight and warehousing costs; employee-related expenditures; occupancy-related costs for our pet care centers, distribution centers and corporate support centers; credit card fees; interest under our debt agreements; and marketing expenses. Net cash provided by operating activities is impacted by our net income (loss) adjusted for certain non-cash items, including: depreciation, amortization, impairments and write-offs; amortization of debt discounts and issuance costs; deferred income taxes; equity-based compensation; impairments of goodwill and intangible assets; other non-operating loss; and the effect of changes in operating assets and liabilities.

Net cash provided by operating activities was $70.4 million in the twenty-six weeks ended August 2, 2025 compared with net cash provided by operating activities of $61.0 million in the twenty-six weeks ended August 3, 2024. The increase in operating cash flows were primarily driven by a decrease in inventory purchases, lower

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payroll and fringe benefits as well as lower operational costs, such as consulting fees. This was partially offset by lower sales and higher payouts of prior year accrued incentive bonuses.

Investing Activities

Net cash used in investing activities was $58.1 million for each of the twenty-six weeks ended August 2, 2025 and August 3, 2024, and consisted primarily of capital expenditures to support our business.

Financing Activities

Net cash used in financing activities was $4.3 million for the twenty-six weeks ended August 2, 2025, compared with $5.9 million used in financing activities for the twenty-six weeks ended August 3, 2024. Financing cash flows in the twenty-six weeks ended August 2, 2025 were not material. Financing cash flows in the twenty-six weeks ended August 3, 2024 consisted primarily of borrowings and repayments on the ABL Revolving Credit Facility.

Sources of Liquidity

Senior Secured Credit Facilities

The Company has a secured term loan facility maturing on March 4, 2028 (the “First Lien Term Loan”) and a secured asset-based revolving credit facility with availability of up to $581.0 million, subject to a borrowing base (as amended from time to time, the “ABL Revolving Credit Facility”). The first tranche of the ABL Revolving Credit Facility has availability of up to $35.0 million, subject to a borrowing base, maturing on March 4, 2026. The second tranche has availability of up to $546.0 million, subject to a borrowing base, maturing on March 29, 2029.

For more information regarding this indebtedness, refer to Note 4, “Senior Secured Credit Facilities,” to the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.

Derivative Instruments

The Company has entered into interest rate cap, collar and swap agreements to limit the maximum interest on a portion of the Company’s variable-rate debt and decrease its exposure to interest rate variability relating to three-month Term SOFR. For more information regarding derivative instruments, refer to Note 5, “Derivative Instruments,” to the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make assumptions and estimates about future results and apply judgments that affect the reported amounts of assets, liabilities, net sales, expenses and related disclosures. We base our estimates and judgments on historical experience, current trends and other factors that we believe to be relevant at the time our consolidated financial statements are prepared. On an ongoing basis, we review the accounting policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.

There have been no material changes to our critical accounting policies and estimates as compared to the critical accounting policies and estimates described in the 2024 Form 10-K.

Recent Accounting Pronouncements

Refer to Note 1, “Summary of Significant Accounting Policies,” to the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q for information regarding recently issued accounting pronouncements.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are subject to market risks arising from transactions in the normal course of our business. These risks are primarily associated with interest rate fluctuations, as well as changes in our credit standing, based on the capital and credit markets, which are not predictable. We do not currently hold any instruments for trading purposes.

Interest Rate Risk

We are subject to interest rate risk in connection with the First Lien Term Loan and the ABL Revolving Credit Facility. As of August 2, 2025, we had $1,595.3 million outstanding under the First Lien Term Loan and no amounts outstanding under the ABL Revolving Credit Facility. The First Lien Term Loan and the ABL Revolving Credit Facility each bear interest at variable rates. An increase of 100 basis points in the variable rates on the First Lien Term Loan and the ABL Revolving Credit Facility as of August 2, 2025 would have increased annual cash interest in the aggregate by approximately $16.2 million. Additionally, we entered into cash flow hedges to limit the maximum interest rate on a portion of our variable-rate debt and limit our exposure to interest rate variability, refer to Note 5, “Derivative Instruments,” to the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q.

We cannot predict market fluctuations in interest rates and their impact on our debt, nor can there be any assurance that long-term fixed-rate debt will be available at favorable rates, if at all. Consequently, future results may differ materially from estimated results due to adverse changes in interest rates or debt availability.

Credit Risk

As of August 2, 2025, substantially all of our cash and cash equivalents were maintained at major financial institutions in the United States, and our current deposits are likely in excess of insured limits. We believe these institutions have sufficient assets and liquidity to conduct their operations in the ordinary course of business with little or no credit risk to us.

Foreign Currency Risk

Substantially all of our business is currently conducted in U.S. dollars, with a small amount denominated in foreign currencies. Our expenses are generally denominated in the currencies of the jurisdictions in which we conduct our operations. Our results of current and future operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates. We do not enter into forward currency contracts to hedge our foreign currency exposure. A hypothetical 10% change in foreign currency exchange rates applicable to our business would not have a material effect on our operating results.

Item 4. Controls and Procedures.

Management’s Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required financial disclosure.

As of the end of the period covered by this Form 10-Q, our management, under the supervision and with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of August 2, 2025.

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Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the quarter ended August 2, 2025, which has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives. Management does not expect, however, that our disclosure controls and procedures will prevent or detect all error and fraud. Any control system, no matter how well designed and operated, is based on certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

See Note 8, “Commitments and Contingencies,” to the Notes to Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q for a description of legal proceedings, which is incorporated herein by reference.

Item 1A. Risk Factors.

Reference is made to Part I, Item 1A, “Risk Factors” included in the 2024 Form 10-K for information concerning risk factors. There have been no material changes with respect to the risk factors disclosed in the 2024 Form 10-K. You should carefully consider such factors, which could materially and adversely affect our business, financial condition and/or results of operations. The risks described in the 2024 Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None of our directors or Section 16 officers adopted or terminated a Rule 10b5-1 trading arrangement (as defined in Item 408(a) of Regulation S-K) or a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the quarterly period covered by this Form 10-Q.

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Item 6. Exhibits.

The following is a list of exhibits filed as part of this Quarterly Report on Form 10-Q:

Exhibit Number		Description
10.1†		Petco Health and Wellness Company, Inc. Amended and Restated Executive Severance Plan
31.1		Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH		Inline XBRL Taxonomy Extension With Embedded Linkbase Documents
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

† Management contract or compensatory plan or arrangement.

* Furnished herewith and not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Petco Health and Wellness Company, Inc.
Date: August 29, 2025	By:		/s/ Sabrina Simmons
			Sabrina Simmons
			Chief Financial Officer (Principal Financial and Accounting Officer)

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FAQ

What were Petco's (WOOF) net sales and comparable sales this quarter?

Net sales declined to $1.49 billion from $1.52 billion, a 2.3% decrease, with comparable sales down 1.4%.

Did Petco report a profit this quarter for WOOF shareholders?

Yes, net income attributable to Class A and B-1 common stockholders was $14.0 million, compared to a prior period loss of $24.8 million.

How did Petco's operating performance and EBITDA change?

Operating income rose to $43.0 million from $2.5 million, and Adjusted EBITDA increased to $113.9 million from $83.5 million.

Were there any impairment charges in the period?

Yes, the company recorded fixed asset and right-of-use asset impairment charges totaling $3.4 million and $6.9 million for the thirteen and twenty-six week periods ended August 3, 2024, respectively.

What liquidity arrangements does Petco disclose?

The company references an $581.0 million ABL Revolving Credit Facility; interest is based on base rate (1% floor) plus 25 bps or Term SOFR (0% floor) plus 125 bps margin.