Chewy reported fiscal fourth-quarter and full-year 2025 results on March 25 for the year ended February 1, 2026. For the full year, net sales totaled $12.6015 billion, up 6.2% year over year on a reported basis, or 8.3% on a normalized 52-week basis. The calendar matters here: fiscal 2025 had 52 weeks, while fiscal 2024 had 53 weeks.

The more notable recurring-revenue datapoint was Autoship customer sales. Chewy reported $10.4971 billion in Autoship customer sales for fiscal 2025, equal to 83.3% of net sales, up from 79.2% a year earlier. Active customers rose 4.0% to 21.327 million, and net sales per active customer increased to $591 from $578.

One important nuance is that Chewy’s Autoship metric is broader than scheduled Autoship orders alone. In its SEC filing, the company says Autoship customer sales include sales from Autoship subscription program purchases as well as purchases made outside the Autoship program by Autoship customers. Chewy also says it views Autoship customer sales as a percentage of net sales as a key indicator of recurring sales and customer retention.

Chewy also reported record free cash flow of $562.4 million, up from $452.5 million a year earlier. Adjusted EBITDA increased 26.1% to $719.2 million, and gross margin expanded 60 basis points to 29.8%. In its earnings release, the company said gross margin improvement was driven by growth in sponsored ads and margin growth across its consumables business, not by Autoship alone.

Chewy framed the year as one of durable growth and stronger cash generation. In the earnings release, CEO Sumit Singh said the company exited 2025 from “a position of real strength,” pointing to $12.6 billion in net sales, $719 million in adjusted EBITDA, record free cash flow, and 21.3 million active customers.

INSIDER TAKE

Autoship continues to look like one of the stronger recurring commerce models at scale. The key metric here is recurring mix, not just headline revenue. Chewy’s Autoship customer sales rose to 83.3% of net sales in fiscal 2025, up from 79.2% a year earlier, giving the company a larger revenue base tied to customers already demonstrating repeat purchasing behavior.

The second point is growth quality. Chewy did not get here only by increasing spending from its existing base or only by adding customers. It did both. Active customers rose to 21.327 million, while net sales per active customer increased to $591. Chewy defines that metric as aggregate net sales for the preceding four fiscal quarters divided by active customers at period end, so it is better read as a broad customer-value indicator than as a simple in-period basket metric.

This is also a useful reminder that recurring revenue quality often shows up in cash flow, not just top-line growth. Chewy posted record free cash flow of $562.4 million in fiscal 2025. At the same time, operators should be careful not to flatten the story into a single-metric explanation. Chewy’s own disclosures show that margin improvement was helped by sponsored ads and consumables mix alongside the growth in Autoship customer sales.

More broadly, Chewy is a strong example of how recurring commerce can deepen outside a classic paid digital subscription model. The lesson for DTC, membership, and replenishment-oriented operators is not that every business needs a formal subscription fee. It is that habitual, essential use cases paired with convenience can still create durable renewal-like behavior. That is an analytical inference, grounded in Chewy’s own description of Autoship as a key driver of recurring net sales and customer retention.