Petco Reports First Quarter 2026 Results
Rhea-AI Summary
Petco (Nasdaq: WOOF) reported Q1 2026 results with net sales of $1.5 billion, up 0.2%, and comparable sales up 0.7%. Gross profit rose to $574.4 million with a 38.4% margin, and operating income increased 50.5% to $24.6 million.
The company posted a net loss of $15.1 million and Adjusted EBITDA of $97.3 million. Cash rose to $166.8 million, total debt fell to $1.482 billion, and inventory declined 1.9%. Petco reaffirmed its 2026 outlook and guided modest Q2 net sales growth and Adjusted EBITDA of $110–$112 million.
AI-generated analysis. Not financial advice.
Positive
- Net sales up 0.2% to $1.5 billion; comps up 0.7%
- Gross margin expanded 21 bps to 38.4%
- Operating income up 50.5% to $24.6 million
- Adjusted EBITDA increased to $97.3 million from $89.4 million
- Cash balance up $33.5 million to $166.8 million
- Total debt reduced to $1.482 billion from $1.593 billion
- Inventory down 1.9% year-over-year versus 0.2% net sales growth
- Full-year 2026 net sales and Adjusted EBITDA outlook reaffirmed
- FY 2026 Adjusted EBITDA outlook set at $415–$430 million
- Q2 2026 Adjusted EBITDA outlook set at $110–$112 million
Negative
- Net loss widened to $15.1 million from $11.7 million
- Cash used in operations rose to $31.0 million from $15.5 million
- Free cash flow outflow increased to $69.1 million from $43.9 million
- Four net store closures in Q1; 15–20 closures expected in 2026
- Higher fuel costs assumed for remainder of 2026
- Q2 impacted by incremental tariffs and lack of prior-year SG&A benefit
News Market Reaction – WOOF
On the day this news was published, WOOF declined 6.07%, reflecting a notable negative market reaction. Argus tracked a trough of -19.2% from its starting point during tracking. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $64M from the company's valuation, bringing the market cap to $997.41M at that time. Trading volume was elevated at 2.7x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
WOOF was down 3.27% pre-release with mixed peer moves: BBW (-0.94%), SBH (-2.64%), OLPX (+0.49%), ODP (+0.04%), EYE (+1.40%). The lack of a consistent sector direction and no peers in momentum scanners point to a stock-specific setup around these earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 11 | FY25 earnings | Positive | +34.6% | FY2025 results beat outlook, leverage reduced, and FY2026 EBITDA guidance introduced. |
| Nov 25 | Q3 2025 earnings | Positive | +14.5% | Q3 margin expansion and outlook raise despite lower net sales and comps. |
| Aug 28 | Q2 2025 earnings | Positive | +23.5% | Improved profitability and higher Adjusted EBITDA with maintained full-year sales outlook. |
| Jun 5 | Q1 2025 earnings | Neutral | -23.3% | Sales and comps declined but margins and EBITDA improved, prompting a sharp negative move. |
| Mar 26 | FY24 earnings | Neutral | +31.6% | Mixed 2024 results with improving losses and double-digit EBITDA improvement outlook for 2025. |
Earnings releases have often driven sizable moves, with generally positive reactions when guidance and profitability improved, but at least one instance of a sharp selloff despite better margins.
Over the past year, Petco’s earnings events have focused on stabilizing sales while improving profitability and margins. Prior updates showed expanding gross margin, rising Adjusted EBITDA, and leverage reduction, with FY2025 Adjusted EBITDA at $408.2M and FY2026 guidance of $415M–$430M. Market reactions to earnings have frequently been large, including moves of +34.58%, +31.56%, and -23.34%. Today’s Q1 2026 results, featuring positive comps and reaffirmed 2026 outlook, fit into this narrative of incremental operational improvement against modest top-line growth.
Historical Comparison
In the last five earnings releases, WOOF moved an average of 16.16%, often reacting strongly to changes in profitability, margins, and guidance. This Q1 2026 update, with modest sales growth but improved comps and reaffirmed EBITDA outlook, resembles prior reports that paired flat revenue with margin and balance sheet progress.
Earnings updates show a progression from declining sales with improving margins in 2024–2025 to 2025–2026 guidance targeting Adjusted EBITDA of $415M–$430M and gradual leverage reduction, with Q1 2026 marking a return to positive comparable sales and continued margin-focused execution.
Market Pulse Summary
The stock moved -6.1% in the session following this news. A negative reaction despite better comps and margin expansion would fit prior episodes where mixed sales trends overshadowed profitability gains. Q1 2026 delivered net sales of $1.5B with 0.7% comp growth and Adjusted EBITDA up to $97.3M, but free cash outflows and ongoing net losses could weigh on sentiment. Historical earnings moves averaging 16.16% suggest results often triggered strong, sometimes contrarian, reactions.
Key Terms
adjusted EBITDA financial
free cash flow financial
leverage ratio financial
SG&A financial
non-GAAP financial measures regulatory
Factset consensus financial
tariffs regulatory
IEEPA regulatory
AI-generated analysis. Not financial advice.
Returns to Positive Comp Growth in Q1, Validating 'Reach for the Sky' Initiatives
Delivers Q1 Sales and Profitability Ahead of Previously Provided Outlook
Reaffirms Fiscal 2026 Outlook and Provides 2Q Outlook*
"Our strong first-quarter results, highlighted by positive comparable sales and profitability that exceeded our outlook, provide clear, early validation that our Phase 3 'Reach for the Sky' strategy is working. We were particularly pleased to see the improvement in our consumables business, while our differentiated services business continues to outperform and is a key engine of our growth. This solid start to the year demonstrates the power of our distinct, wholly owned omnichannel ecosystem. As we look ahead, we are pleased with the momentum our initiatives are generating, positioning us to continue to deliver positive comps. We remain highly confident in our ability to drive consistent, long-term growth," said Joel Anderson, Chief Executive Officer of Petco.
Q1 2026 Overview
For the first quarter of 2026 compared to the first quarter of 2025:
- Net sales of
$1.5 billion 0.2% ; comparable sales increased0.7% . - Gross profit increased to
$574.4 million 38.4% . - Operating income increased
50.5% to$24.6 million 1.6% . - Net loss of
$15.1 million $11.7 million - Adjusted EBITDA2 of
$97.3 million $89.4 million - The Company closed 4 net stores, ending the quarter with 1,378 stores.
Sabrina Simmons, Chief Financial Officer of Petco, added, "Our strong first-quarter results—which marked a return to positive comparable sales growth—demonstrate that our operational and economic improvements are materializing. We are pleased to reaffirm our full-year outlook. As our strategic initiatives continue to take hold, we continue to be focused on strengthening our retail and financial fundamentals to support sustainable, profitable growth and remain committed to reducing our leverage ratio to 2x."1
Q1 2026 Balance Sheet and Cash Flow
- Ending cash balance grew by
$33.5 million $166.8 million $133.3 million - Inventory fell
1.9% year-over-year versus the0.2% increase in net sales. - Cash used in operating activities was
$31.0 million $15.5 million - Free cash flow2 was an outflow of
$69.1 million $43.9 million - Total debt was
$1.482 billion $1.593 billion
2026 Outlook
The company reaffirmed its full year 2026 net sales and EBITDA outlook and provided its outlook for the second quarter of 2026.
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
With respect to the second quarter specifically, the benefit of the tariff refund received in May 2026 is expected to be approximately offset by incremental tariffs and higher fuel costs anticipated in the period. The prior-year second quarter included an approximately
Full Year 2026 Outlook
FY 2026 Outlook* | |
Net Sales | Flat to up |
Adjusted EBITDA2 | |
Net Interest Expense | |
Capital Expenditures | |
Depreciation & Amortization | |
Net Store Closures | ~15-20 |
Second Quarter 2026 Outlook
Q2 2026 Outlook* | |
Net Sales 3 | Up about |
Adjusted EBITDA 2 |
(1) | Leverage ratio is defined as net debt divided by Adjusted EBITDA |
(2) | Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. |
(3) | According to Company-compiled data as of May 28, 2026, the current Factset consensus of 10 sell-side analyst expectations for Q2 2026 net sales implies a year-over-year growth rate of |
* 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. | |
Earnings Conference Call Webcast Information:
Management will host an earnings conference call on June 3, 2026 at approximately 4:15 PM Eastern Time to discuss the company's financial results. A live webcast of the conference call will be available on the company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations. A replay of the webcast will be available through the same link approximately two hours after the conference call.
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 Chile. 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 earnings 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 Q2 and full year 2026 outlook, operational reset of our business, our competitive positioning, profitability, cash generation through our economic model, expense leverage, operating margin expansion, cost action plans and associated cost-savings, our path to sustainable, profitable growth and our expectations regarding tariffs and associated impacts. 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," "estimates," "projects", "forecasts" or the negative thereof or other variations thereon or comparable terminology. These statements are only predictions based on our current expectations and projections about future events and reflect our beliefs regarding such future events and do not represent historical facts or statements of current condition. 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 earnings release is, or should be relied upon as, a promise or representation or warranty as to any future matter, including any matter in respect of the operations or business or financial condition of Petco. 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 earnings 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), government shutdowns, 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" in our most recent Annual Report on Form 10-K 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
PETCO HEALTH AND WELLNESS COMPANY, INC. | |||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(In thousands, except per share amounts) | |||||
(Unaudited and subject to reclassification) | |||||
13 Weeks Ended | |||||
May 2, | May 3, | ||||
Net sales: | |||||
Products | $ 1,228,087 | $ 1,241,891 | |||
Services and other | 268,645 | 251,508 | |||
Total net sales | 1,496,732 | 1,493,399 | |||
Cost of sales: | |||||
Products | 757,778 | 766,285 | |||
Services and other | 164,529 | 157,146 | |||
Total cost of sales | 922,307 | 923,431 | |||
Gross profit | 574,425 | 569,968 | |||
Selling, general and administrative expenses | 549,799 | 553,609 | |||
Operating income | 24,626 | 16,359 | |||
Interest income | (1,497) | (1,359) | |||
Interest expense | 32,785 | 33,494 | |||
Loss on extinguishment and modification of debt | 11,840 | — | |||
Loss before income taxes and income from | (18,502) | (15,776) | |||
Income tax expense | 2,199 | 495 | |||
Income from equity method investees | (5,555) | (4,610) | |||
Net loss attributable to Class A and B-1 common | $ (15,146) | $ (11,661) | |||
Net loss per Class A and B-1 common share: | |||||
Basic | $ (0.05) | $ (0.04) | |||
Diluted | $ (0.05) | $ (0.04) | |||
Weighted average shares used in computing net loss per Class A | |||||
Basic | 283,684 | 277,548 | |||
Diluted | 283,684 | 277,548 | |||
PETCO HEALTH AND WELLNESS COMPANY, INC. | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(In thousands, except per share amounts) | ||||
(Unaudited and subject to reclassification) | ||||
May 2, | January 31, | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ 166,804 | $ 256,736 | ||
Receivables, less allowance for credit losses1 | 36,928 | 45,812 | ||
Merchandise inventories, net | 632,912 | 590,210 | ||
Prepaid expenses | 64,036 | 51,747 | ||
Other current assets | 60,164 | 75,281 | ||
Total current assets | 960,844 | 1,019,786 | ||
Fixed assets | 2,404,132 | 2,378,208 | ||
Less accumulated depreciation | (1,758,226) | (1,722,060) | ||
Fixed assets, net | 645,906 | 656,148 | ||
Operating lease right-of-use assets | 1,265,299 | 1,288,593 | ||
Goodwill | 980,064 | 980,064 | ||
Trade name | 1,025,000 | 1,025,000 | ||
Other long-term assets | 207,473 | 203,834 | ||
Total assets | $ 5,084,586 | $ 5,173,425 | ||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Accounts payable and book overdrafts | $ 480,656 | $ 450,552 | ||
Accrued salaries and employee benefits | 107,784 | 154,148 | ||
Accrued expenses and other liabilities | 216,183 | 204,751 | ||
Current portion of operating lease liabilities | 312,399 | 320,082 | ||
Current portion of long-term debt and other lease liabilities | 13,245 | 4,608 | ||
Total current liabilities | 1,130,267 | 1,134,141 | ||
Senior secured credit facilities, net, excluding current portion | 874,116 | 1,488,527 | ||
Senior notes, net | 590,146 | — | ||
Operating lease liabilities, excluding current portion | 994,995 | 1,047,185 | ||
Deferred taxes, net | 235,197 | 234,911 | ||
Other long-term liabilities | 104,560 | 104,407 | ||
Total liabilities | 3,929,281 | 4,009,171 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Class A common stock2 | 247 | 244 | ||
Class B-1 common stock3 | 38 | 38 | ||
Class B-2 common stock4 | — | — | ||
Preferred stock5 | — | — | ||
Additional paid-in-capital | 2,318,877 | 2,312,354 | ||
Accumulated deficit | (1,155,139) | (1,139,993) | ||
Accumulated other comprehensive loss | (8,718) | (8,389) | ||
Total stockholders' equity | 1,155,305 | 1,164,254 | ||
Total liabilities and stockholders' equity | $ 5,084,586 | $ 5,173,425 | ||
¹ Allowances for credit losses are | ||||
² Class A common stock, | ||||
³ Class B-1 common stock, | ||||
⁴ Class B-2 common stock, | ||||
⁵ Preferred stock, | ||||
PETCO HEALTH AND WELLNESS COMPANY, INC. | ||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(In thousands) | ||||
(Unaudited and subject to reclassification) | ||||
13 Weeks Ended | ||||
May 2, | May 3, | |||
Cash flows from operating activities: | ||||
Net loss | $ (15,146) | $ (11,661) | ||
Adjustments to reconcile net loss to net cash used in | ||||
Depreciation and amortization | 49,041 | 49,811 | ||
Amortization of debt discounts and issuance costs | 1,337 | 1,246 | ||
Provision for deferred taxes | 288 | (9,218) | ||
Equity-based compensation | 9,451 | 9,420 | ||
Loss on extinguishment and modification of debt | 11,840 | — | ||
Income from equity method investees | (5,555) | (4,610) | ||
Amounts reclassified out of accumulated other comprehensive loss | 51 | (212) | ||
Non-cash operating lease costs | 103,080 | 102,132 | ||
Changes in assets and liabilities: | ||||
Receivables | 8,884 | 4,229 | ||
Merchandise inventories | (42,702) | 7,857 | ||
Prepaid expenses and other assets | (8,299) | (1,673) | ||
Accounts payable and book overdrafts | 30,577 | (19,028) | ||
Accrued salaries and employee benefits | (46,362) | (51,130) | ||
Accrued expenses and other liabilities | 11,559 | 12,426 | ||
Operating lease liabilities | (139,677) | (103,780) | ||
Other long-term liabilities | 664 | (1,263) | ||
Net cash used in operating activities | (30,969) | (15,454) | ||
Cash flows from investing activities: | ||||
Cash paid for fixed assets | (38,153) | (28,412) | ||
Insurance recoveries | 230 | — | ||
Proceeds from sale of assets | — | 1,279 | ||
Cash received from partial surrender of officers' life insurance | 74 | — | ||
Net cash used in investing activities | (37,849) | (27,133) | ||
Cash flows from financing activities: | ||||
Borrowings under long-term debt agreements | 1,500,000 | — | ||
Repayments of long-term debt | (1,500,000) | — | ||
Debt refinancing costs and original issue discount | (28,442) | — | ||
Payments for finance lease liabilities | (1,110) | (1,143) | ||
Proceeds from employee stock purchase plan and stock option exercises | 1,008 | 967 | ||
Tax withholdings on stock-based awards | (4,094) | (158) | ||
Net cash used in financing activities | (32,638) | (334) | ||
Net decrease in cash, cash equivalents and restricted cash | (101,456) | (42,921) | ||
Cash, cash equivalents and restricted cash at beginning of period | 269,412 | 181,665 | ||
Cash, cash equivalents and restricted cash at end of period | $ 167,956 | $ 138,744 | ||
NON-GAAP FINANCIAL MEASURES
The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission's (SEC) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Petco's core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period. Please see the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed with the SEC on March 13, 2026 for additional information on Adjusted EBITDA.
The table below reflects the calculation of Adjusted EBITDA for the thirteen weeks ended May 2, 2026 compared to the thirteen weeks ended May 3, 2025.
(dollars in thousands) | 13 Weeks Ended | |||
Reconciliation of Net Loss Attributable to Class A and B-1 | May 2, | May 3, | ||
Net loss attributable to Class A and B-1 common stockholders | $ (15,146) | $ (11,661) | ||
Add (deduct): | ||||
Interest expense, net | 31,288 | 32,135 | ||
Income tax expense | 2,199 | 495 | ||
Depreciation and amortization | 49,041 | 49,811 | ||
Income from equity method investees | (5,555) | (4,610) | ||
Loss on extinguishment and modification of debt | 11,840 | — | ||
Equity-based compensation | 9,451 | 9,420 | ||
12,916 | 10,198 | |||
Other costs (2) | 1,297 | 3,661 | ||
Adjusted EBITDA | $ 97,331 | $ 89,449 | ||
Net sales | $ 1,496,732 | $ 1,493,399 | ||
Net margin (3) | (1.0 %) | (0.8 %) | ||
Adjusted EBITDA Margin | 6.5 % | 6.0 % | ||
(1) |
13 Weeks Ended | ||||
(in thousands) | May 2, | May 3, | ||
Net income | $ 11,104 | $ 9,220 | ||
Depreciation | 8,306 | 6,597 | ||
Income tax expense | 5,194 | 4,166 | ||
Foreign currency loss (gain) | 144 | (292) | ||
Interest expense, net | 1,083 | 704 | ||
EBITDA | $ 25,831 | $ 20,395 | ||
$ 12,916 | $ 10,198 | |||
(2) | 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. |
(3) | We define net margin as net 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 the ability to generate additional cash from business operations, is an important financial measure for use in evaluating the company's financial performance.
The table below reflects the calculation of Free Cash Flow for the thirteen weeks ended May 2, 2026 compared to the thirteen weeks ended May 3, 2025.
(in thousands) | 13 Weeks Ended | |||
May 2, | May 3, | |||
Net cash used in operating activities | $ (30,969) | $ (15,454) | ||
Cash paid for fixed assets | (38,153) | (28,412) | ||
Free Cash Flow | $ (69,122) | $ (43,866) | ||
Net Debt
The table below reflects the calculation for net debt as of May 2, 2026 compared to January 31, 2026 and May 3, 2025.
(dollars in thousands) | May 2, | January 31, | May 3, | |||
Total debt: | ||||||
Senior secured credit facilities, net, including current portion | $ 883,116 | $ 1,488,527 | $ 1,579,338 | |||
Senior notes, net | 590,146 | — | — | |||
Finance leases, including current portion | 8,886 | 9,683 | 13,203 | |||
Total debt | 1,482,148 | 1,498,210 | 1,592,541 | |||
Less: cash and cash equivalents | (166,804) | (256,736) | (133,343) | |||
Net Debt | $ 1,315,344 | $ 1,241,474 | $ 1,459,198 |
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SOURCE Petco - Investor Relations