Wag! (US:PET) Globenewswireยท2025-11-04 11:30Core Insights - Pet Valu Holdings Ltd. reported a revenue of $289.5 million for Q3 2025, marking a 4.9% increase from $276.0 million in Q3 2024, driven by growth in retail sales and franchise revenues [5][7] - The company anticipates revenue for the full fiscal year 2025 to be between $1.175 billion and $1.185 billion, with Adjusted EBITDA expected between $257 million and $260 million [3][25] - Pet Valu's same-store sales growth was 2.3% in Q3 2025, a recovery from a 2.5% decline in Q3 2024, indicating improved customer spending behavior [6][7] Financial Performance - Adjusted EBITDA for Q3 2025 was $63.6 million, a decrease of 1.5% from $64.6 million in Q3 2024, representing 22.0% of revenue [10][14] - Net income increased to $24.9 million in Q3 2025, up 7.4% from $23.2 million in Q3 2024, primarily due to higher operating income and lower net interest expense [13][14] - Selling, general and administrative expenses rose to $53.6 million, a 9.4% increase compared to $49.0 million in Q3 2024, attributed to higher compensation costs and increased SaaS fees [9][10] Operational Highlights - The company opened 16 new stores, bringing the total to 849 stores across its network [7] - Free cash flow for Q3 2025 was $24.7 million, down from $30.8 million in Q3 2024, mainly due to a decrease in cash from operating activities [17][43] - Inventory at the end of Q3 2025 was $141.2 million, an increase of $16.6 million from $124.6 million at the end of Q4 2024, to support store network growth [18][44] Future Outlook - The company is well-positioned for the holiday season with a robust commercial plan aimed at providing value to customers [4] - Pet Valu expects to continue monitoring governmental foreign trade policies and believes it has mechanisms in place to adapt as necessary [20] - The Board of Directors declared a dividend of $0.12 per common share, payable on December 15, 2025 [19]