Free cash flow remains highly volatile, swinging from a 14.2% margin in 2025Q4 to a -6.5% margin in 2026Q1, largely driven by consistent working capital outflows.
| Cash from Operations | 360.18M | 314.05M | 177.67M | 215.72M | 346M | 358.21M | 268.62M | 110.34M | 203.2M |
| Operating CF Margin % | - | 5.27% | 2.9% | 3.45% | 5.73% | 6.17% | 5.46% | 2.49% | 4.63% |
| Operating CF Growth % | 227.87% | 76.76% | -17.64% | -37.65% | -3.41% | 33.36% | 143.45% | -45.7% | - |
| Net Income | -23.54M | 9.07M | -101.82M | -1.28B | 89.91M | 159.81M | -31.74M | -103.98M | -413.79M |
| Depreciation & Amortization | 246.2M | 196.71M | 199.73M | 200.78M | 193.83M | 172.43M | 174.84M | 173.54M | 187M |
| Stock-Based Compensation | 30.39M | 32.65M | 50.21M | 81.86M | 60.78M | 49.27M | 12.91M | 9.49M | 8.45M |
| Deferred Taxes | 25.44M | 17.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 414.14M | 396.49M | 370.98M | 1.59B | 428.69M | 452.38M | 517.21M | 452.47M | 364.91M |
| Working Capital Changes | -370.9M | -337.91M | -341.43M | -372.06M | -427.21M | -475.66M | -404.61M | -421.18M | 56.63M |
| Change in Receivables | -966K | -5.62M | 4.18M | 5.21M | 6.04M | -13.79M | -10.31M | -3.85M | 23.63M |
| Change in Inventory | 12.56M | 63.12M | 30.77M | -32.07M | 22.68M | -136.4M | -60.63M | -8.19M | 644K |
| Change in Payables | 6.61M | -42.99M | 8.48M | 103.92M | -22.76M | 71.78M | 46.3M | 15.93M | 23.77M |
| Cash from Investing | -164.6M | -124.56M | -123.9M | -207.44M | -320.32M | -237.08M | -157.19M | -139.04M | -142.68M |
| Capital Expenditures | -128.11M | -127.1M | -127.99M | -225.6M | -278.02M | -239.11M | -159.56M | -156.91M | -148.06M |
| CapEx % of Revenue | 2.14% | 2.13% | 2.09% | 3.61% | 4.61% | 4.12% | 3.24% | 3.54% | 3.37% |
| Acquisitions | 1.26M | 2.54M | -629K | -6.72M | -44.64M | -4.33M | 0 | -1.61M | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -37.75M | 0 | 4.17M | 0 | 2.34M | 226K | 3.3M | 20.06M | 6.15M |
| Cash from Financing | -106.68M | -101.75M | -8.75M | -85.35M | -33.84M | -18.78M | -146.61M | -3.07M | -32.1M |
| Debt Issued (Net) | -89.67M | -95.25M | -5.71M | -80.92M | -22.08M | 5.58M | -1.08B | 303K | -28.14M |
| Equity Issued (Net) | 3.72M | 3.68M | 2.5M | 0 | 0 | 0 | 935.94M | 0 | -111K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -105K | 0 | -111K |
| Other Financing | -20.72M | -10.17M | -5.55M | -4.43M | -11.76M | -24.36M | -250K | -3.37M | -3.85M |
| Net Change in Cash | 75.74M | 87.75M | 45.02M | -77.08M | -8.16M | 102.35M | -35.18M | -31.77M | 28.42M |
| Free Cash Flow | 80.72M | 186.95M | 49.68M | -9.88M | 67.98M | 119.11M | 109.06M | -47.02M | 54.84M |
| FCF Margin % | 1.35% | 3.14% | 0.81% | -0.16% | 1.13% | 2.05% | 2.22% | -1.06% | 1.25% |
| FCF Growth % | 37.56% | 276.29% | 602.92% | -114.53% | -42.92% | 9.22% | 331.94% | -185.74% | - |
| FCF per Share | 0.28 | 0.65 | 0.18 | -0.04 | 0.26 | 0.45 | 0.52 | -0.03 | 0.04 |
| FCF Conversion (FCF/Net Income) | -3.43x | 34.64x | -1.75x | -0.17x | 3.81x | 2.18x | -10.14x | -1.15x | -0.49x |
| Interest Paid | 62.98M | 0 | 138.62M | 142.11M | 89.28M | 64.55M | 178.96M | 217.66M | 213.25M |
| Taxes Paid | 3.29M | 0 | 34.84M | 32.19M | 14.44M | 16.09M | 2.39M | 15.04M | 11.38M |
High fixed-cost operating leverage
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from 3.92 to -94.61, suggesting that accounting accruals and non-cash adjustments frequently decouple the company's reported bottom line from its actual cash generation capabilities.
The persistent divergence between net losses and operating cash flow suggests that Petco's earnings quality is heavily influenced by non-cash charges, such as depreciation and amortization, rather than core operational efficiency. Investors should monitor whether this volatility reflects genuine business cycle sensitivity or an underlying inability to convert service-based revenue into reliable cash inflows.
Based on the provided quarterly data, free cash flow trajectory is characterized by extreme inconsistency, with margins fluctuating between -6.5% and 14.2%, indicating that the company struggles to maintain a self-sustaining cash position while navigating the capital-intensive requirements of its integrated veterinary and retail service model.
The inability to generate consistent positive free cash flow suggests that the company's current business model may be structurally dependent on external financing or debt to fund its ongoing operations. This lack of cash flow stability warrants further investigation into whether the 'platform' strategy can ever achieve the scale necessary to produce durable, positive free cash flow.
According to historical cash flow data, Petco has experienced consistent working capital outflows in every one of the last ten quarters, with a peak drain of $185.4 million in 2026Q1, highlighting a structural inefficiency in managing inventory levels and vendor payment cycles relative to its retail footprint.
These recurring working capital deficits suggest that the company is effectively subsidizing its growth through cash-intensive inventory management or delayed collection cycles. Such persistent outflows may indicate that the company's inventory turnover is not keeping pace with its expansion, potentially trapping cash in slow-moving goods and limiting liquidity.
As indicated by recent filings, Petco maintains a consistent capital expenditure profile, with CapEx/Revenue ratios hovering around 2% to 2.9%, which reflects the ongoing, non-discretionary cost of maintaining its physical store-in-store veterinary infrastructure and retail network despite the company's current lack of consistent net profitability.
The steady level of capital expenditure suggests that the company is locked into a high-maintenance cycle to keep its physical assets operational. This capital intensity appears to be a significant drag on cash flow, as the company must continue to invest in its physical footprint even when revenue growth is decelerating.
Quick answers to the most common questions about buying WOOF stock.
Petco Health and Wellness Company, Inc. (WOOF) generated $314.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Petco Health and Wellness Company, Inc. (WOOF) generated $187.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Petco Health and Wellness Company, Inc. (WOOF) spent $127.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.