Strong Revenue Growth
Q3 net sales grew over 8% year-over-year to $3.12 billion, exceeding the high end of guidance. Autoship customer sales increased by 13.6% to $2.61 billion.
Improved Profitability
Adjusted EBITDA reached $181 million, up 30% year-over-year. Adjusted EBITDA margin expanded by 100 basis points to 5.8%.
Free Cash Flow Surge
Generated approximately $176 million of free cash flow in the quarter, up nearly $70 million sequentially.
Chewy+ Membership Program Success
Chewy+ continues to outperform expectations, driving higher order frequency and category engagement. Raised annual fee from $49 to $79, with strong conversion retention.
Expansion of Health Services
Chewy Vet Care (CVC) continues to exceed expectations, with two additional practices opened, bringing the total to 14 locations.