PETCO Q2 adjusted EBITDA and free cash flow beat; affirms FY outlook

PETCO (WOOF) Q2 adjusted EBITDA of $122.2M beat estimates by ~$11M, and free cash flow of $60.8M far exceeded the $14M consensus. Revenue was in line at $1.49B. The company affirmed its full-year adjusted EBITDA range of $415M-$430M and guided Q3 adjusted EBITDA of $100M-$103M. Comparable sales rose 0.6% YoY. PETCO also reported a $6.8M tariff refund benefit and a $75M voluntary debt prepayment.