Slides
Page 1
1 Q2 2026 Financial Results September 9, 2026
Page 2
1 Forward-Looking Statements This communication contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this communication, including statements regarding our share repurchase program, our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions, although not all forward-looking statements contain these identifying words. Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could cause actual results to differ materially from those in such forward-looking statements, including but not limited to, our ability to: sustain our recent growth rates and successfully manage challenges to our future growth, including introducing new products or services, improving existing products and services, and expanding into new jurisdictions and offerings; successfully respond to business disruptions; successfully manage risks related to the macroeconomic environment, including any adverse impacts on our business operations, financial performance, supply chain, workforce, facilities, customer services and operations; acquire and retain new customers in a cost-effective manner and increase our net sales, improve margins, and maintain profitability; manage our growth effectively; maintain positive perceptions of the Company and preserve, grow, and leverage the value of our reputation and our brand; limit operating losses as we continue to expand our business; forecast net sales and appropriately plan our expenses in the future; estimate our market share; strengthen our current supplier relationships, retain key suppliers and source additional suppliers; negotiate acceptable pricing and other terms with third-party service providers, suppliers and outsourcing partners and maintain our relationships with such parties; mitigate changes in, or disruptions to, our shipping arrangements and operations; optimize, operate, and manage the expansion of the capacity of our fulfillment centers; provide our customers with a cost-effective platform that is able to respond and adapt to rapid changes in technology; limit our losses related to online payment methods; maintain and scale our technology, the reliability of our websites, mobile applications, and network infrastructure, including through the use of artificial intelligence; maintain adequate cybersecurity with respect to our systems and retain third-party service providers that do the same with respect to their systems; maintain consumer confidence in the safety, quality, and health of our products; limit risks associated with our suppliers and our outsourcing partners; comply with existing or future laws and regulations in a cost-efficient manner; utilize net operating loss and tax credit carryforwards, and other tax attributes; adequately protect our intellectual property rights; successfully defend ourselves against any allegations or claims that we may be subject to; attract, develop, motivate and retain highly-qualified and skilled employees; respond to economic conditions, industry trends, and market conditions, and their impact on the pet products market; reduce merchandise returns or refunds; respond to severe weather and limit disruption to normal business operations; manage new acquisitions, investments or alliances, and integrate them into our existing business; successfully compete in new offerings; manage challenges presented by international markets; successfully compete in the pet products and services health and retail industry, especially in the e-commerce sector; comply with the terms of our credit facility; raise capital as needed; and maintain effective internal control over financial reporting. You should not rely on forward-looking statements as predictions of future events, and you should understand that these statements are not guarantees of performance or results, and our actual results could differ materially from those expressed in the forward-looking statements due to a variety of factors. We have based the forward-looking statements contained in this communication primarily on our current assumptions, expectations, and projections about future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” included under Part I, Item 1A in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026, in our other filings with the Securities and Exchange Commission, our subsequent quarterly reports, and elsewhere in this communication. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this communication. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this communication. While we believe that such information provides a reasonable basis for these statements, this information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this communication relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this communication to reflect events or circumstances after the date of this communication or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Page 3
2 208K Net Sequential Active Customer Adds1 $200 million Capital Returned to Shareholders in Q2 262 (1) Net sequential active customer adds excludes customer additions related to the Modern Animal acquisition. (2) Represents executed share repurchases during the thirteen weeks ended August 2, 2026. (3) Net sales per active customer defined as the aggregate net sales for the preceding four fiscal quarters, divided by the total number of active customers at the end of that fiscal quarter. (4) Autoship customers defined as customers in a given fiscal quarter for whom an order has shipped through our Autoship subscription program during the preceding 364-day period. We define Autoship customer sales as a percentage of net sales as the Autoship customer sales in a given reporting period divided by the net sales from all orders in that period. (5) Adjusted ("Adj.") EBITDA and adjusted EBITDA margin 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. (6) "Bps" refers to basis points and "YoY" refers to year over year. 84.6% Autoship Customer Sales as a % of Net Sales4 Financial Metrics Key Recent Highlights $602 Net Sales Per Active Customer3 $226.7M Q2 26 Adj. EBITDA 6.8% Margin5 (+90 bps YoY)6
Page 4
3 (1) "LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q2 26). (2) Excludes the impact of the 53rd week in Fiscal Year 2024. (3) Net sales growth excludes the contribution from SmartPak and Modern Animal Quarterly $3,104 $3,117 $3,265 $3,357 $3,330 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 $11,148 $11,635 $12,602 $13,069 FY 23 FY 24 FY 25 LTM Net Sales % YoY Growth 10.2% 4.4% 8.3% 7.8% % YoY Growth 8.6% 8.3% 8.1% 7.7% 7.3% excl. Acquisitions 5.7% Full Year ($ Millions)($ Millions) 12 3
Page 5
4 $2,577 $2,614 $2,744 $2,833 $2,817 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 $8,493 $9,208 $10,497 $11,007 FY 23 FY 24 FY 25 LTM Autoship Customer Sales1 ($ Millions) % YoY Growth 14.9% 13.6% 12.8% 10.5% 9.3% ($ Millions) Full Year Quarterly % YoY Growth 14.7% 8.4% 14.0% 11.5% 2 (1) We define Autoship customers as customers in a given fiscal quarter for whom an order has shipped through our Autoship subscription program during the preceding 364-day period. (2) "LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q2 26). (3) Excludes the impact of the 53rd week in Fiscal Year 2024. 3
Page 6
5 (1) We define net sales per active customer (“NSPAC”) as the aggregate net sales for the preceding four fiscal quarters, divided by the total number of active customers at the end of that fiscal quarter. (2) We define active customers as the total number of customers who have ordered a product or service, and for whom a product has shipped or for whom a service has been provided, at least once during the preceding 364-day period. (3) Excludes the impact of the 53rd week in Fiscal Year 2024. (4) Includes approximately 43,000 active customers attributable to SmartPak but excludes customer additions related to the Modern Animal acquisition. $555 $567 $591 $591 $602 FY 23 FY 24 FY 25 Q2 25 Q2 26 Net Sales Per Active Customer (“NSPAC”)1 Active Customers2 (Millions) 20.1 20.5 21.3 20.9 21.7 3 4
Page 7
6 (1) "LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q2 26). 30.4% 29.8% 29.4% 30.1% 30.4% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 (%) 28.4% 29.2% 29.8% 29.9% FY 23 FY 24 FY 25 LTM Gross Margin Gross Profit ($ Millions) $3,162 $3,468 $3,754 $3,911 Gross Profit ($ Millions) $942 $928 $960 $1,011 $1,011 (%) Full Year Quarterly 1
Page 8
7 (1) Adjusted ("Adj.") EBITDA and adjusted EBITDA margin 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. (2) "LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q2 26). $183 $181 $162 $253 $227 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 $368 $571 $719 $823 FY 23 FY 24 FY 25 LTM Adjusted EBITDA1 % Margin1 5.9% 5.8% 5.0% 7.5% 6.8% % Margin1 3.3% 4.8% 5.7% 6.3% ($ Millions)($ Millions) Full Year Quarterly 2
Page 9
8 (1) Free cash flow (“FCF”) is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. (2) "LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q2 26). (3) Reflects total cash and cash equivalents plus marketable securities. $106 $176 $232 $71 $90 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 $343 $452 $562 $568 FY 23 FY 24 FY 25 LTM Free Cash Flow1 ($ Millions)($ Millions) Full Year Quarterly Q2 FY26 Cash Balance: $612M 2 3
Page 10
9 Fiscal Year 2026 (1) Adjusted ("Adj.") EBITDA Margin is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures. Our guidance is based on certain assumptions, including current expectations regarding the impact of general economic conditions, and is subject to various risks and uncertainties applicable to all forward-looking statements in this presentation. See “Forward-Looking Statements” for more information. We have not reconciled our outlook for adjusted EBITDA margin to net margin because we do not provide an outlook for GAAP net income due to the uncertainty and potential variability of other income, net, and provision for income taxes, which are reconciling items between adjusted EBITDA and GAAP net income. Because such items cannot be reasonably predicted, we are unable to provide a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure. However, such items could have a significant impact on GAAP net income and net margin. Net Sales $3.323 billion - $3.358 billion Approximately 6.6% to 7.7% YoY growth Approximately 5.3% to 6.2% YoY growth ex. Acquisitions Fiscal Third Quarter 2026 Net Sales $13.46 billion - $13.57 billion Approximately 6.8% to 7.7% YoY growth Approximately 5.5% to 6.3% YoY growth ex. Acquisitions Adj. EBITDA Margin1 6.7% - 6.8% Guidance Adj. EBITDA Margin1 6.6% - 6.7%
Page 11
10 Non-GAAP Financial Measures To supplement our GAAP results, we present certain non-GAAP financial measures that management uses to evaluate operating performance, assess liquidity, and inform capital allocation decisions. These measures include Adjusted EBITDA and Adjusted EBITDA margin, Adjusted net income and Adjusted earnings per share, and Free cash flow. Adjusted EBITDA excludes depreciation and amortization, share-based compensation and related taxes, income tax provision (benefit), interest income (expense), transaction-related costs, net legal settlement proceeds, changes in the fair value of equity warrants, severance and exit costs, and other items not considered indicative of our core operations. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales. Adjusted net income and Adjusted earnings per share exclude certain non-cash and non-recurring items, including share-based compensation and related taxes, releases of valuation allowances associated with deferred tax assets, transaction-related costs, net legal settlement proceeds, changes in the fair value of equity warrants, and severance and exit costs. Beginning in the first quarter of 2026, Adjusted net income excludes transaction-related costs prospectively. Free cash flow represents net cash provided by operating activities less capital expenditures. We believe these measures provide additional insight into the underlying trends in our business and facilitate comparisons across reporting periods. Reconciliations to the most directly comparable GAAP measures are provided below. These non-GAAP measures have limitations and should not be considered in isolation or as a substitute for GAAP results. For example, Adjusted EBITDA does not reflect capital expenditures, working capital requirements, interest income (expense), income taxes, or share-based compensation, which remains a recurring component of our compensation structure. In addition, other companies may calculate non-GAAP measures differently, which may limit their comparability. Accordingly, these measures should be considered together with our GAAP financial statements and related disclosures.
Page 12
11 We define net margin as net income divided by net sales and adjusted EBITDA margin as adjusted EBITDA divided by net sales. Adjusted EBITDA and Adjusted EBITDA Margin The following table presents a reconciliation of net income to adjusted EBITDA, as well as the calculation of net margin and adjusted EBITDA margin, for each of the periods indicated: Non-GAAP Financial Measures (in millions, except percentages) Fiscal Quarter Ended LTM (1) Fiscal Year Reconciliation of Net Income to Adjusted EBITDA August 2, 2026 May 3, 2026 February 1, 2026 November 2, 2025 August 3, 2025 August 2, 2026 2025 2024 2023 Net income $ 80.5 $ 94.8 $ 39.2 $ 59.2 $ 62.0 $ 273.7 $ 222.8 $ 392.7 $ 39.6 Add (deduct): Depreciation and amortization 39.7 37.0 34.4 32.8 32.1 143.9 129.3 114.6 109.7 Share-based compensation expense and related taxes 85.9 73.4 77.6 76.5 79.1 313.4 311.2 332.1 248.5 Interest expense (income), net 4.7 (2.8) (4.6) (3.5) (3.9) (6.2) (15.2) (35.1) (58.5) Change in fair value of equity warrants — — — — — — 2.6 (2.3) (13.1) Income tax provision (benefit) 31.4 36.5 2.9 10.1 12.0 80.9 40.5 (241.0) 8.7 Severance costs — — 0.4 — — 0.4 6.3 — 14.4 Exit costs — 1.9 — — — 1.9 — — 6.8 Net legal settlement proceeds (24.0) — — — — (24.0) — — — Transaction related costs 6.4 9.8 9.8 2.7 0.6 28.7 13.2 1.6 7.8 Other 2.1 2.5 2.6 3.1 1.4 10.3 8.5 7.9 4.2 Adjusted EBITDA $ 226.7 $ 253.1 $ 162.3 $ 180.9 $ 183.3 $ 823.0 $ 719.2 $ 570.5 $ 368.1 Net sales $ 3,330.2 $ 3,357.2 $ 3,264.7 $ 3,116.6 $ 3,104.2 $ 13,068.7 $ 12,601.5 $ 11,861.3 $ 11,147.7 Net margin 2.4 % 2.8 % 1.2 % 1.9 % 2.0 % 2.1 % 1.8 % 3.3 % 0.4 % Adjusted EBITDA margin 6.8 % 7.5 % 5.0 % 5.8 % 5.9 % 6.3 % 5.7 % 4.8 % 3.3 % (1) "LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q2 26)
Page 13
12 Adjusted Net Income and Adjusted Basic and Diluted Earnings per Share The following table presents a reconciliation of net income to adjusted net income, as well as the calculation of adjusted basic and diluted earnings per share, for each of the periods indicated: Non-GAAP Financial Measures (in millions, except per share data) Fiscal Quarter Ended Fiscal Year Reconciliation of Net Income to Adjusted Net Income August 2, 2026 May 3, 2026 February 1, 2026 November 2, 2025 August 3, 2025 2025 2024 2023 Net income $ 80.5 $ 94.8 $ 39.2 $ 59.2 $ 62.0 $ 222.8 $ 392.7 $ 39.6 Add (deduct): Share-based compensation expense and related taxes 85.9 73.4 77.6 76.5 79.1 311.2 332.1 248.5 Change in fair value of equity warrants — — — — — 2.6 (2.3) (13.1) Deferred tax asset valuation allowance release — — (2.4) — — (2.4) (275.7) — Net legal settlement proceeds (24.0) — — — — — — — Transaction related costs1 6.4 9.8 — — — — — — Severance costs — — 0.4 — — 6.3 — 14.4 Exit costs — 1.9 — — — — — 6.8 Adjusted net income $ 148.8 $ 179.9 $ 114.8 $ 135.7 $ 141.1 $ 540.5 $ 446.8 $ 296.2 Weighted-average common shares used in computing adjusted earnings per share: Basic 406.4 413.8 414.4 414.2 414.2 414.1 421.4 429.4 Effect of dilutive share-based awards 3.7 5.3 9.7 11.3 14.2 11.7 9.6 2.6 Diluted 410.1 419.1 424.1 425.5 428.4 425.8 431.0 432.0 Earnings per share attributable to common Class A and Class B stockholders Basic $ 0.20 $ 0.23 $ 0.09 $ 0.14 $ 0.15 $ 0.54 $ 0.93 $ 0.09 Diluted $ 0.20 $ 0.23 $ 0.09 $ 0.14 $ 0.14 $ 0.52 $ 0.91 $ 0.09 Adjusted basic $ 0.37 $ 0.43 $ 0.28 $ 0.33 $ 0.34 $ 1.31 $ 1.06 $ 0.69 Adjusted diluted $ 0.36 $ 0.43 $ 0.27 $ 0.32 $ 0.33 $ 1.27 $ 1.04 $ 0.69 (1) Beginning in the first quarter of 2026, Adjusted net income excludes transaction-related costs prospectively.
Page 14
13 Non-GAAP Financial Measures Free Cash Flow The following table presents a reconciliation of net cash provided by operating activities to free cash flow for each of the periods indicated: Free cash flow may vary period to period based on the timing and level of capital expenditures, including investments in fulfillment capacity, pharmacy facilities, veterinary clinics, technology infrastructure, and other operational initiatives. Free cash flow may also be affected by changes in working capital, including fluctuations in inventory levels, vendor payment terms, and other components of the cash conversion cycle. (in millions) Fiscal Quarter Ended LTM (1) Fiscal Year Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow August 2, 2026 May 3, 2026 February 1, 2026 November 2, 2025 August 3, 2025 August 2, 2026 2025 2024 2023 Net cash provided by operating activities $ 137.4 $ 108.5 $ 263.4 $ 207.9 $ 133.9 $ 717.2 $ 691.6 $ 596.3 $ 486.2 Deduct: Capital expenditures (47.9) (37.7) (31.4) (32.1) (28.0) (149.1) (129.2) (143.8) (143.3) Free Cash Flow $ 89.5 $ 70.8 $ 232.0 $ 175.8 $ 105.9 $ 568.1 $ 562.4 $ 452.5 $ 342.9 (1) "LTM" is defined as Last Twelve Months and reflects the preceding 12 month period as of the end of the current quarter (Q2 26)
Page 15
14