Petco has halted construction of new veterinary hospitals to preserve free cash flow, pausing a key differentiator against online rivals Amazon and Chewy. The company currently operates about 300 vet hospitals and plans to resume building in 2027, CEO Joel Anderson said during the first-quarter earnings call. Service revenue rose 5.8% to $255.9 million in the fourth quarter of 2025, while product revenue fell 3.9% to $1.259 billion. Total debt stood at $1.48 billion, down over $100 million from a year earlier, and free cash flow was an outflow of $69 million for the quarter.
Petco Health and Wellness Company, Inc.Pausing vet hospital expansion to preserve cash flow signals financial strain and reduced growth investment.
Chewy Inc
Amazon.com Inc