Petco announces debt refinancing transaction launch; confirms fourth quarter and …

Petco has recently disclosed the initiation of a debt refinancing transaction to lengthen maturities and has reiterated its anticipated outcomes for the fourth quarter and the entirety of the fiscal year 2025, concluding on January 31, 2026.

Petco aims to refinance an amount of $1.5 billion of its current term loan outstanding based on prevailing market and other conditions. However, there is no guarantee that the entirety of the refinancing will be completed. In December 2025, Petco already administered a voluntary prepayment of $50 million from its available cash and is contemplating an additional prepayment within its authorized $100 million board allocation.

In conjunction with the prospective refinancing transaction, Petco is upholding its proposed projections for Net Sales and Adjusted EBITDA concerning the fourth quarter and the entire fiscal year of 2025. Joel Anderson, Petco’s Chief Executive Officer, expressed contentment with the achievements made by the team thus far in fiscal 2025. He commended the dedication of their nearly 30,000 team members and highlighted the consistent growth in the sector they operate within.

For the fiscal year 2025 outlook, Net Sales are anticipated to see a decrease ranging from 2.5% to 2.8%, with a drop in low single digits year-over-year. Adjusted EBITDA is forecasted to be in the range of $395 million to $397 million for the full fiscal year and $93 million to $95 million for the fourth quarter of 2025.

Petco’s outlook is based on the assumption that economic conditions, currency rates, and the regulatory landscape remain relatively stable. The outlook also considers that tariffs on imports into the U.S. from other countries will persist at the levels observed on January 12, 2026. Adjusted EBITDA is a non-GAAP financial metric that has not been reconciled with the most comparable GAAP outlook due to the uncertainties and potential variability of reconciling items, which are subject to future events outside of management’s control.

Petco, “where the pets go” for over 60 years, offers a wide range of products and services essential for pets to lead healthy lives. With a commitment to nurturing the pet-human bond, Petco ensures that customers have access to quality pet care products, services, and expertise. Through Petco Love, a foundation established in 1999, Petco collaborates with animal welfare groups throughout the U.S., Mexico, and Puerto Rico, assisting in rehoming over 7 million animals through in-store adoption events.

Please note that this press release contains forward-looking statements, subject to the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and encompass expectations, beliefs, plans, strategies, and other future-oriented elements, including the Q4 and full-year 2025 outlook and any prospective debt refinancing or loan repurchase endeavors.