By Freddy Sebastian

Shares of Petco Health & Wellness gained after the company swung to a profit in its latest quarter and raised its adjusted earnings before interest, tax, amortization and depreciation forecast for the full year.

The pet products company's stock recently rose 16.5% to $3.46 in premarket trading Wednesday.

For this fiscal year, Petco projected adjusted Ebitda--which strips out exceptional and other one off items--of between $395 million to $397 million, up from its previous forecast of $385 million to $395 million.

For the current fourth quarter, the company expects adjusted Ebitda at $93 million to $95 million and net sales down in the low single digits from a year earlier.

Petco posted adjusted Ebitda of $98.6 million for the three months ended Nov. 1, up from $81.2 million a year earlier.

Petco's third-quarter profit came in at $9.3 million, or 3 cents a share, compared with a loss of $16.7 million, or 6 cents a share, in the year-earlier period.

Revenue slipped to $1.46 billion from $1.51 billion. Analysts polled by FactSet estimated revenue at $1.47 billion.

"Rebuilding the base of our economic model has been a priority in 2025," Chief Executive Joel Anderson said. "This strengthened base sets the foundation for a return to growth during fiscal 2026."

Anderson, who joined in July, has spearheaded a series of changes to try to turn around the business, including redoing in-store merchandise, focusing on best sellers, and leaning into growth opportunities like in-store veterinarian services.

Write to Freddy Sebastian at freddy.sebastian@wsj.com

(END) Dow Jones Newswires

November 26, 2025 08:03 ET (13:03 GMT)

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