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Chewy, Inc. and its wholly-owned subsidiaries (collectively “Chewy” or the “Company”) is primarily an e-commerce business geared toward pet products and services. Chewy serves its customers through its retail websites, and its mobile applications and focuses on delivering exceptional customer service, competitive prices, outstanding convenience (including Chewy’s Autoship subscription program, fast shipping, and hassle-free returns), and a large selection of high-quality pet food, treats and supplies, and pet healthcare products and services.

As of September 2, 2026, BC Partners Advisors LP (“BC Partners”) and its affiliates, La Caisse de dépôt et placement du Québec, affiliates of GIC Special Investments Pte Ltd, affiliates of StepStone Group LP and funds advised by Longview Asset Management, LLC (collectively, the “Sponsors”) control a majority of the voting power of our outstanding common stock. As a result, we are considered a “controlled company” within the meaning of the corporate governance standards of the New York Stock Exchange.

Basis of Presentation

The Company’s accompanying unaudited condensed consolidated financial statements and related notes include the accounts of Chewy, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The unaudited condensed consolidated financial statements and notes thereto of Chewy, Inc. have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as set forth in the Financial Accounting Standards Board’s (“FASB”) accounting standards codification (“ASC”).

All adjustments necessary for a fair statement of the financial information, which are of a normal and recurring nature, have been made for the interim periods reported. Results of operations for the quarterly period ended August 2, 2026 are not necessarily indicative of the results for the entire fiscal year. The unaudited condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q for the quarterly period ended August 2, 2026 should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2026 (“10-K Report”).

Fiscal Year

The Company has a 52- or 53-week fiscal year ending each year on the Sunday that is closest to January 31 of that year. The Company’s 2026 fiscal year ends on January 31, 2027 and is a 52-week year. The Company’s 2025 fiscal year ended February 1, 2026 and was a 52-week year.

Significant Accounting Policies

Other than policies noted herein, there have been no significant changes from the significant accounting policies disclosed in Note 2 of the “Notes to Consolidated Financial Statements” included in the 10-K Report.

Use of Estimates

GAAP requires management to make certain estimates, judgments, and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates these estimates and judgments. Actual results could differ from those estimates.

Key estimates relate primarily to determining the net realizable value and demand for inventory, useful lives associated with property and equipment and intangible assets, valuation allowances with respect to deferred tax assets, contingencies, self-insurance accruals, evaluation of sales tax positions, and the valuation and assumptions underlying share-based

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compensation. On an ongoing basis, management evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities.

Accrued Expenses and Other Current Liabilities

The following table presents the components of accrued expenses and other current liabilities (in millions):

			As of
			August 2, 2026						February 1, 2026
Outbound fulfillment			$	488.8					$	506.6
Advertising and marketing			116.0						148.4
Payroll liabilities			55.6						112.3
Accrued expenses and other			373.0						312.9
Total accrued expenses and other current liabilities			$	1,033.4					$	1,080.2

Stockholders’ Equity

Share Repurchase Activity

Share Repurchase Program

On May 24, 2024, the Company’s Board of Directors authorized the Company to repurchase up to $500 million of its Class A common stock, par value $0.01 per share (the “Class A common stock”), and/or Class B common stock, par value $0.01 per share (the “Class B common stock” and together with the Class A common stock, the “common stock”), pursuant to a share repurchase program (the “Repurchase Program”). On April 7, 2026, the Company’s Board of Directors approved an increase of $500 million to the Repurchase Program. Under the Repurchase Program, the Company may repurchase shares of common stock on a discretionary basis from time to time through open market repurchases, in privately negotiated transactions, through repurchases made in compliance with Rule 10b-18 and/or Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or other means. The actual timing and amount of any share repurchases remains subject to a variety of factors, including stock price, trading volume, market conditions, compliance with applicable legal requirements, and other general business considerations. The Repurchase Program does not require the Company to repurchase any specific dollar amount or to acquire any specific number of shares of common stock. The Repurchase Program has no expiration date and may be modified, suspended, or terminated at any time.

The total cost of repurchased shares of common stock in excess of par value, including the cost of commissions and excise taxes, is recorded to additional paid-in capital. The total cost for share repurchases executed and unpaid, as well as the cost of unpaid commissions and excise taxes, are included in accrued expenses and other current liabilities on the Company’s condensed consolidated balance sheets.

During the thirteen weeks ended August 2, 2026 9,886,243 shares of Class A common stock were repurchased and subsequently cancelled and retired pursuant to the Repurchase Program for a total cost of $199.9 million, excluding the cost of commissions and excise taxes. During the twenty-six weeks ended August 2, 2026, 17,485,469 shares of Class A common stock were repurchased and subsequently cancelled and retired pursuant to the Repurchase Program for a total cost of $400.0 million, excluding the cost of commissions and excise taxes. The authorized value of shares available to be repurchased under the Repurchase Program excludes the cost of commissions and excise taxes and as of August 2, 2026, the remaining value of shares of common stock that were authorized to be repurchased under the Repurchase Program was $350.1 million. As of August 2, 2026, the total unpaid cost of share repurchases was $1.5 million for excise taxes.

During the twenty-six weeks ended August 3, 2025, 1,294,475 and 2,395,210 shares of Class A common stock were repurchased and subsequently cancelled and retired pursuant to the Repurchase Program and June 2025 Concurrent Stock Repurchase for a total cost of $46.8 million and $100.0 million, respectively, excluding the cost of commissions and excise taxes.

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June 2025 Secondary Offering and Concurrent Stock Repurchase

On June 23, 2025, the Company entered into an underwriting agreement with the Seller and J.P. Morgan Securities LLC (the “Underwriter”), relating to the offer and sale by the Seller of 23,952,096 shares of Class A common stock at a price to the public of $41.95 per share (the “June 2025 Secondary Offering”). In addition, the Seller granted the Underwriter a 30-day option to purchase up to an additional 3,592,815 shares of Class A common stock, which the Underwriter exercised on June 24, 2025 with respect to 3,592,814 shares of Class A common stock (the “June 2025 Option Shares Offering”). The Company did not sell any shares of Class A common stock and did not receive any proceeds in connection with either of the June 2025 Secondary Offering or the June 2025 Option Shares Offering. Additionally, on June 20, 2025, the Company entered into an agreement (the “June 2025 Concurrent Stock Repurchase Agreement”) with the Seller, to repurchase $100 million of shares of Class A common stock from the Seller at a price per share equal to the per share purchase price paid by the Underwriter in the June 2025 Secondary Offering, resulting in the repurchase of an aggregate of 2,395,210 shares of Class A common stock at a price per share of $41.75 (the “June 2025 Concurrent Stock Repurchase”). The June 2025 Concurrent Stock Repurchase Agreement contains customary representations, warranties and covenants of the parties.

The June 2025 Secondary Offering, June 2025 Option Shares Offering, and June 2025 Concurrent Stock Repurchase closed on June 25, 2025.

Conversion of Class B Common Stock

On June 25, 2025, Buddy Chester Sub LLC converted 29,940,120 shares of Class B common stock into Class A common stock contemporaneously with the closing of the June 2025 Secondary Offering, June 2025 Option Shares Offering, and June 2025 Concurrent Stock Repurchase.

Debt

The Company's debt is carried at amortized cost. Debt issuance costs and any original issue discount associated with the Term Loan Credit Facility are presented in the condensed consolidated balance sheets as a direct deduction from the carrying amount of the related debt and are amortized to interest expense over the contractual term of the facility using the effective interest method. Debt issuance costs associated with the ABL Credit Facility are presented within other non-current assets and are amortized to interest expense on a straight-line basis over the contractual term of the facility, irrespective of whether there are any outstanding borrowings under the facility. Commitment fees on the unused portion of the ABL Credit Facility and fees on outstanding letters of credit are expensed as incurred and included within interest expense.

Amounts of principal, contractually due within twelve months of the balance sheet date, are classified as the current portion of long-term debt, with the remainder classified as long-term debt, net.

Interest and Other Income, net

Interest (Expense) Income, net

The Company generates interest income from its cash and cash equivalents and marketable securities and incurs interest expense in relation to its borrowing facilities, finance leases, and unrecognized tax benefits. The following table provides additional information about the Company’s interest income (expense), net (in millions):

			13 Weeks Ended												26 Weeks Ended
			August 2, 2026						August 3, 2025						August 2, 2026						August 3, 2025
Interest income			$	3.6					$	5.3					$	7.6					$	9.8
Interest expense			(8.3)						(1.4)						(9.5)						$	(2.7)
Interest (expense) income, net			$	(4.7)					$	3.9					$	(1.9)					$	7.1

The Company made interest payments of $1.1 million and $1.2 million during the twenty-six weeks ended August 2, 2026 and August 3, 2025, respectively.

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Other Income (Expense), net

The Company’s other income (expense), net consists of: (i) changes in the fair value of equity warrants, investments, and tax indemnification receivables, (ii) foreign currency transaction gains and losses, and (iii) allowances for credit losses on marketable securities. The following table provides additional information about the Company’s other (expense) income, net (in millions):

			13 Weeks Ended												26 Weeks Ended
			August 2, 2026						August 3, 2025						August 2, 2026						August 3, 2025
Net legal settlement proceeds			$	24.0					$	—					$	24.0					$	—
Change in fair value of tax indemnification receivables			0.4						0.6						0.7						1.1
Foreign currency transaction (losses) gains			0.2						(0.2)						0.2						(0.3)
Change in fair value of equity investments			—						—						(0.3)						—
Change in fair value of equity warrants			—						—						—						(2.6)
Other income (expense), net			$	24.6					$	0.4					$	24.6					$	(1.8)

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

The Company did not adopt any new ASUs during the twenty-six weeks ended August 2, 2026.

Recently Issued Accounting Pronouncements

ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In November 2024, the FASB issued this ASU to improve disclosures regarding the types of expenses included in commonly presented expense captions. This update is effective beginning with the Company’s 2027 fiscal year annual reporting period, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

ASU 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. In September 2025, the FASB issued this ASU to modernize the accounting for internal-use software costs, primarily by simplifying the requirements to capitalize software development costs. This update is effective at the beginning of the Company’s 2028 fiscal year, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

The following transactions were accounted for as a business combination in accordance with ASC 805 “Business Combinations.” Assets acquired and liabilities assumed were recorded in the accompanying condensed consolidated balance sheets at their estimated fair values, with the remaining unallocated purchase prices recorded as goodwill. Goodwill represents the expected synergies and cost rationalization from the merger of operations as well as intangible assets that do not qualify for separate recognition such as an assembled workforce. Pro forma information for these acquisitions has not been provided as the impact was not material to the Company’s consolidated results of operations.

SmartPak Acquisition

On October 28, 2025, the Company entered into a definitive agreement to acquire SmartPak Equine, LLC (“SmartPak”). Under the terms of the definitive agreement, on February 2, 2026, the Company completed the acquisition of 100% of the membership interest in SmartPak, and SmartPak became a wholly-owned subsidiary of the Company. SmartPak is a leading provider of equine health and nutrition products and the acquisition is expected to further strengthen the Company’s pet healthcare and specialty product offerings.

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The following table reconciles the purchase price to the cash paid for the acquisition, net of cash acquired (in millions):

Purchase price			$	175.0
Less: cash acquired			0.2
Cash paid for acquisition of business, net of cash acquired			$	174.8

The following table summarizes the assets acquired and liabilities assumed as of the acquisition date (in millions):

Assets acquired:
Cash and cash equivalents			$	0.2
Accounts receivable			0.7
Inventories			15.1
Prepaid expenses and other current assets			2.7
Property and equipment, net			4.7
Operating lease right-of-use assets			2.5
Goodwill			73.1
Identified intangible assets			88.0
Other non-current assets			0.2
Liabilities assumed:
Accounts payable			(6.1)
Accrued expenses and other current liabilities			(5.8)
Other long-term liabilities			(0.3)
Estimated purchase price			$	175.0

Based on a preliminary allocation, in connection with this acquisition, the Company recorded goodwill of $73.1 million, the majority of which is anticipated to be deductible for tax purposes. The identified intangible assets consisted of $46.0 million of customer relationships, $33.0 million of trademarks, and $9.0 million of product portfolio with an amortization period of 17, 19, and 6 years, respectively.

During the twenty-six weeks ended August 2, 2026, the Company incurred $7.4 million of transaction-related costs in connection with the SmartPak acquisition. These costs were expensed as incurred and are included in selling, general and administrative expenses in the condensed consolidated statements of operations.

Modern Animal Acquisition

On April 1, 2026, the Company entered into a definitive agreement to acquire Modern Animal, Inc. (“Modern Animal”). Under the terms of the definitive agreement, on May 21, 2026, the Company completed the acquisition of 100% of the issued and outstanding stock in Modern Animal, and Modern Animal became a wholly-owned subsidiary of the Company. Modern Animal is a technology-forward veterinary platform and the acquisition represents an important strategic step in Chewy’s evolution into a fully integrated pet healthcare ecosystem, combining care, commerce and services across the pet lifecycle.

The following table reconciles the estimated purchase price to the cash paid for the acquisition, net of cash acquired (in millions):

Purchase price			$	399.8
Less: cash acquired			21.8
Cash paid for acquisition of business, net of cash acquired			$	378.0

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The following table summarizes the assets acquired and liabilities assumed as of the acquisition date (in millions):

Assets acquired:
Cash and cash equivalents			$	21.8
Accounts receivable			1.1
Prepaid expenses and other current assets			5.2
Property and equipment, net			67.9
Operating lease right-of-use assets			49.0
Goodwill			221.6
Identified intangible assets			64.0
Deferred tax assets			32.5
Other non-current assets			1.4
Liabilities assumed:
Accounts payable			(3.8)
Accrued expenses and other current liabilities			(11.9)
Other long-term liabilities			(49.0)
Estimated purchase price			$	399.8

Based on a preliminary allocation, in connection with this acquisition, the Company recorded goodwill of $221.6 million, which is not deductible for tax purposes. The identified intangible assets consisted of $39.0 million of customer relationships, $19.0 million of trademarks, and $6.0 million of developed technology with an amortization period of 17, 9 and 4 years, respectively. For more information, see Note 6 - Intangible Assets, net.

During the twenty-six weeks ended August 2, 2026, the Company incurred $8.0 million of transaction-related costs in connection with the Modern Animal acquisition. These costs were expensed as incurred and are included in selling, general and administrative expenses in the condensed consolidated statements of operations.

Cash equivalents are carried at cost, which approximates fair value and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices.

Marketable securities are carried at fair value and are classified within Level 1 because they are valued using quoted market prices. Specific to marketable fixed income securities, the Company did not record any gross unrealized gains and losses as fair value approximates amortized cost. The Company did not record any credit losses during the thirteen and twenty-six weeks ended August 2, 2026. Further, as of August 2, 2026, the Company did not record an allowance for credit losses related to its fixed income securities.

Vested equity warrants and equity investments in public companies that have readily determinable fair values are carried at fair value and are classified within Level 1 because they are valued using quoted market prices.

The following table includes a summary of financial instruments measured at fair value as of August 2, 2026 (in millions):

						Level 1						Level 2						Level 3
Cash						$	611.0					$	—					$	—
Cash and cash equivalents						611.0						—						—
Equity investments						1.2						—						—
Marketable securities						1.2						—						—
Total financial instruments						$	612.2					$	—					$	—

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The following table includes a summary of financial instruments measured at fair value as of February 1, 2026 (in millions):

						Level 1						Level 2						Level 3
Cash						$	858.8					$	—					$	—
Corporate bonds						1.3						—						—
Cash and cash equivalents						860.1						—						—
Corporate bonds						17.6						—						—
Equity investments						1.1						—						—
Marketable securities						18.7						—						—
Total financial instruments						$	878.8					$	—					$	—

The Company held no financial instruments measured using Level 3 significant unobservable inputs as of August 2, 2026.

The following is a summary of property and equipment, net (in millions):

			As of
			August 2, 2026						February 1, 2026
Furniture, fixtures and equipment			$	290.7					$	267.8
Computer equipment			85.0						81.7
Internal-use software			321.9						282.4
Leasehold improvements			508.7						428.8
Construction in progress			16.2						20.0
			1,222.5						1,080.7
Less: accumulated depreciation and amortization			597.7						528.4
Property and equipment, net			$	624.8					$	552.3

Internal-use software includes labor and license costs associated with software development for internal use and is amortized using the straight-line method over the estimated useful life of the software. The following is a summary of internal-use software, net (in millions):

			As of
			August 2, 2026						February 1, 2026
Internal-use software			$	321.9					$	282.4
Less: accumulated amortization			189.5						166.0
Internal-use software, net			$	132.4					$	116.4

Construction in progress is stated at cost, which includes the cost of construction and other directly attributable costs. No provision for depreciation is made on construction in progress until the relevant assets are completed and put into use.

For the thirteen weeks ended August 2, 2026 and August 3, 2025, the Company recorded depreciation expense on property and equipment of $24.5 million and $21.7 million, respectively, and amortization expense related to internal-use software costs of $12.6 million and $10.4 million, respectively. For the twenty-six weeks ended August 2, 2026 and August 3, 2025, the Company recorded depreciation expense on property and equipment of $48.7 million and $41.4 million, respectively, and amortization expense related to internal-use software costs of $23.9 million and $20.5 million, respectively. The aforementioned depreciation and amortization expenses were included within selling, general and administrative expenses in the condensed consolidated statements of operations.

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The following table provides information about the Company’s identified intangible assets (in millions, except for weighted-average remaining life):

												As of August 2, 2026
												Gross Carrying Amount						Accumulated Amortization						Net Carrying Value						Weighted-Average Remaining Life (years)
Definite-lived intangibles
Developed technology												6.0						$	(0.3)					5.7						3.8
Customer relationships												85.0						$	(1.8)					83.2						16.7
Trademarks												52.0						$	(1.2)					50.8						13.7
Product portfolio												9.0						$	(0.8)					8.2						5.5
Indefinite-lived intangibles
Business licenses												1.8						—						1.8						Indefinite
Total intangible assets												$	153.8					$	(4.1)					$	149.7					12.9

For the thirteen weeks ended August 2, 2026 and August 3, 2025, the Company recorded amortization expense related to intangible assets of $2.6 million and $0.1 million, respectively.

For the twenty-six weeks ended August 2, 2026 and August 3, 2025, the Company recorded amortization expense related to intangible assets of $4.1 million and $0.2 million, respectively.

For the thirteen and twenty-six weeks ended August 2, 2026 and August 3, 2025, the Company did not record any impairment charges on intangible assets.

Legal Matters

Various legal claims arise from time to time in the normal course of business. In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

The Company believes that it has adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable. The Company does not believe that the ultimate resolution of any matters to which it is presently a party will have a material adverse effect on the Company’s results of operations, financial condition or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

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The following table summarizes the components of the Company’s debt (in millions):

			As of
			August 2, 2026						February 1, 2026
Term Loan Credit Facility			$	600.0					$	—
Less: unamortized debt issuance costs			8.3						—
Total debt, net of discount and issuance costs			591.7						—
Less: current portion of long-term debt			(3.0)						—
Long-term debt, net			$	588.7					$	—

Term Loan Credit Facility

On June 23, 2026, the Company entered into a seven-year senior secured term loan credit facility (the “Term Loan Credit Facility”), which matures on June 23, 2033, and provides term loans in an aggregate principal amount of $600 million. The proceeds of the Term Loan Credit Facility, together with cash on hand, can be used to pay fees, premiums, costs and expenses related to the incurrence of the facility and the related transactions and, to the extent not so applied, for general corporate purposes or working capital requirements.

Borrowings under the Term Loan Credit Agreement bear interest at a rate per annum equal to an applicable margin plus, at the Company’s option, either a base rate or a Term SOFR rate. The applicable margin is 1.75% for Term SOFR loans and 0.75% for base rate loans. As of August 2, 2026, the weighted-average interest rate and effective interest rate on the Term Loan Credit Facility were 5.41% and 5.66%, respectively. The Term Loan Credit Facility will amortize in equal quarterly installments in an aggregate annual amount equal to 1% of the original principal amount of such term loan facility, commencing with the third full quarter ending after June 23, 2026 with the remaining balance payable on June 23, 2033. The Term Loan Credit Facility contains customary affirmative and negative covenants, all of which the Company is in compliance with. As of August 2, 2026, the Company did not make any principal payments for the Term Loan Credit Facility.

As of August 2, 2026, contractual maturities of the Term Loan Credit Facility were as follows (in millions):

Fiscal year			Amount
Remainder of FY26			$	—
FY27			6.0
FY28			6.0
FY29			6.0
FY30			6.0
FY31			6.0
Thereafter			570.0
Total			$	600.0

ABL Credit Facility

The Company has a senior secured asset-based credit facility (the “ABL Credit Facility”), which matures on June 23, 2031 following an amendment entered into on June 23, 2026, and provides for non-amortizing revolving loans in an aggregate principal amount of up to $800 million, subject to a borrowing base comprised of, among other things, inventory and sales receivables (subject to certain reserves). The ABL Credit Facility provides the right to request incremental commitments and add incremental asset-based revolving loan facilities in an aggregate principal amount up to the sum of (i) $250 million, (ii) the amount of permanent reductions of commitments thereunder and (iii) if greater than zero, the amount by which the borrowing base as of the date of incurrence exceeds the commitments thereunder, subject to customary conditions.

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The Company leases all of its fulfillment and customer service centers, corporate offices, and veterinary clinics under non-cancelable operating lease agreements. The terms of the Company’s real estate leases generally range from 5 to 15 years and typically allow for the leases to be renewed for up to three additional five-year terms. Fulfillment and customer service center, veterinary clinic, and corporate office leases expire at various dates through 2038, excluding renewal options. The Company also leases certain equipment under operating and finance leases. The terms of equipment leases generally range from 3 to 5 years and do not contain renewal options. These leases matured at various dates through 2026.

The table below presents the operating lease-related assets and liabilities recorded on the condensed consolidated balance sheets (in millions):

												As of
Leases						Balance Sheet Classification						August 2, 2026						February 1, 2026
Assets
Operating						Operating lease right-of-use assets						$	482.1					$	467.9
Total operating lease assets												$	482.1					$	467.9
Liabilities
Current
Operating						Accrued expenses and other current liabilities						$	42.3					$	38.1
Non-current
Operating						Operating lease liabilities						527.2						518.7
Total operating lease liabilities												$	569.5					$	556.8

For the twenty-six weeks ended August 2, 2026, assets acquired in exchange for new operating lease liabilities were $62.0 million which were primarily driven by the SmartPak and Modern Animal acquisitions as discussed in Note 3 - Acquisitions. Lease expense primarily relates to operating lease costs and was included within selling, general and administrative expenses in the condensed consolidated statements of operations. Lease expense for the thirteen weeks ended August 2, 2026 and August 3, 2025 was $30.3 million and $27.0 million, respectively. Lease expense for the twenty-six weeks ended August 2, 2026 and August 3, 2025 was $57.6 million and $54.2 million, respectively.

Cash flows used in operating activities related to operating leases were approximately $57.8 million and $54.0 million for the twenty-six weeks ended August 2, 2026 and August 3, 2025, respectively.

The Company operates in one operating segment and one reportable segment organized around the sale of pet products and services, as the Chief Operating Decision Maker (“CODM”) reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The CODM utilizes gross profit and net income as the measures of segment profit.

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The following table presents information about the Company’s measures of segment profit and significant segment expenses regularly provided to the CODM (in millions):

			13 Weeks Ended												26 Weeks Ended
			August 2, 2026						August 3, 2025						August 2, 2026						August 3, 2025
Net sales			$	3,330.2					$	3,104.2					$	6,687.4					$	6,220.2
Cost of goods sold			2,319.0						2,162.0						4,664.8						4,354.2
Gross profit			1,011.2						942.2						2,022.6						1,866.0
Fulfillment costs			365.8						360.3						723.7						706.7
Share-based compensation expense and related taxes			85.9						79.1						159.3						157.1
Depreciation and amortization			39.7						32.1						76.7						62.1
Other selling, general, and administrative expenses			213.0						200.4						421.5						399.1
Advertising and marketing expenses			214.8						200.6						420.9						394.4
Income tax provision			31.4						12.0						67.9						27.5
Interest and other income, net			(19.9)						(4.3)						(22.7)						(5.3)
Net income			$	80.5					$	62.0					$	175.3					$	124.4

The CODM reviews assets on a consolidated basis as presented on our condensed consolidated balance sheets.

2024 Omnibus Incentive Plan

In July 2024, the Company’s stockholders approved the Chewy, Inc. 2024 Omnibus Incentive Plan (the “2024 Plan”) replacing the Chewy, Inc. 2022 Omnibus Incentive Plan (the “2022 Plan”). The 2024 Plan became effective on July 11, 2024 and the maximum number of shares of Class A common stock that may be covered by awards granted under the 2024 Plan may not exceed the aggregate total of (i) 80.0 million shares plus (ii) the number of shares remaining available for new awards under the 2022 Plan as of the effective date, up to 3.1 million shares. Following the effective date, any shares subject to an award under the 2022 Plan or the 2024 Plan that expires or are canceled, forfeited, or terminated without the issuance of the full number of shares to which the award related will again be available for issuance under the 2024 Plan. No awards may be granted under the 2024 Plan after July 2034. The 2024 Plan provides for grants of: (i) options, including incentive stock options and non-qualified stock options, (ii) restricted stock units, (iii) other share-based awards, including share appreciation rights, phantom stock, restricted shares, performance shares, deferred share units, and share-denominated performance units, (iv) cash awards, (v) substitute awards, and (vi) dividend equivalents (collectively, the “awards”). The awards may be granted to (i) the Company’s employees, consultants, and non-employee directors, (ii) employees of the Company’s affiliates and subsidiaries, and (iii) consultants of the Company’s affiliates.

Service-Based Awards

The Company granted restricted stock units with service-based vesting conditions (“RSUs”) which vested subject to the employee’s continued employment with the Company through the applicable vesting date. The Company recorded share-based compensation expense for RSUs on a straight-line basis over the requisite service period and accounted for forfeitures as they occur.

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Service-Based Awards Activity

The following table summarizes the activity related to the Company’s RSUs for the twenty-six weeks ended August 2, 2026 (in millions, except for weighted-average grant date fair value):

			Number of RSUs						Weighted-Average Grant Date Fair Value
Unvested and outstanding as of February 1, 2026			20.7						$	27.77
Granted			16.6						$	25.95
Vested			(5.9)						$	29.05
Forfeited			(3.2)						$	26.98
Unvested and outstanding as of August 2, 2026			28.2						$	26.52

The following table summarizes the weighted average grant-date fair value of RSUs granted and total fair value of RSUs vested for the periods presented:

			26 Weeks Ended
			August 2, 2026						August 3, 2025
Weighted average grant-date fair value of RSUs			$	25.95					$	33.80
Total fair value of vested RSUs (in millions)			$	146.7					$	171.9

As of August 2, 2026, total unrecognized compensation expense related to unvested RSUs was $683.0 million and is expected to be recognized over a weighted-average expected performance period of 2.9 years.

The fair value for RSUs is established based on the market price of the Company’s Class A common stock on the date of grant.

Service and Performance-Based Awards

The Company granted restricted stock units which vested upon satisfaction of both service-based vesting conditions and company performance-based vesting conditions (“PRSUs”), subject to the employee’s continued employment with the Company through the applicable vesting date. The Company recorded share-based compensation expense for PRSUs over the requisite service period and accounted for forfeitures as they occur.

Service and Performance-Based Awards Activity

The following table summarizes the activity related to the Company’s PRSUs for the twenty-six weeks ended August 2, 2026 (in millions, except for weighted-average grant date fair value):

			Number of PRSUs						Weighted-Average Grant Date Fair Value
Unvested and outstanding as of February 1, 2026			2.1						$	20.92
Granted			1.2						$	28.30
Vested			—						$	—
Forfeited			(0.3)						$	21.14
Unvested and outstanding as of August 2, 2026			3.0						$	23.87

The following table summarizes the weighted average grant-date fair value of PRSUs granted and total fair value of PRSUs vested for the periods presented:

			26 Weeks Ended
			August 2, 2026						August 3, 2025
Weighted average grant-date fair value of PRSUs			$	28.30					$	26.35
Total fair value of vested PRSUs (in millions)			$	—					$	—

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As of August 2, 2026, total unrecognized compensation expense related to unvested PRSUs was $38.4 million and is expected to be recognized over a weighted-average expected performance period of 2.0 years.

The fair value for PRSUs with a Company performance-based vesting condition is established based on the market price of Class A common stock on the date of grant.

As of August 2, 2026, there were 63.8 million additional shares of Class A common stock reserved for future issuance under the 2024 Plan.

Share-Based Compensation Expense

Share-based compensation expense is included within selling, general and administrative expenses in the condensed consolidated statements of operations. The Company recognized share-based compensation expense as follows (in millions):

			13 Weeks Ended												26 Weeks Ended
			August 2, 2026						August 3, 2025						August 2, 2026						August 3, 2025
RSUs			$	77.5					$	71.9					$	142.4					$	139.5
PRSUs			6.0						4.0						8.0						10.9
Total share-based compensation expense			$	83.5					$	75.9					$	150.4					$	150.4

Income Tax Provision

Chewy is subject to taxation in the U.S. and various state, local, and foreign jurisdictions. The Company recorded an income tax provision during the thirteen and twenty-six weeks ended August 2, 2026 of $31.4 million and $67.9 million, respectively, compared to $12.0 million and $27.5 million for the thirteen and twenty-six weeks ended August 3, 2025, respectively. The Company’s effective tax rate for the thirteen and twenty-six weeks ended August 2, 2026 was higher than the U.S. federal statutory rate, primarily due to state income taxes and shortfall from share-based compensation, partially offset by federal and state research and development credits.

Deferred Tax Assets and Valuation Allowances

The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence. The realizability of the Company’s net deferred tax assets is dependent on its ability to generate sufficient future taxable income prior to the expiration of tax attributes to support the utilization of these assets. As of August 2, 2026 and February 1, 2026, the Company maintained a full valuation allowance of $27.4 million against its foreign net deferred tax assets and certain U.S. state deferred tax assets.

Tax Payments and Refunds

In the aggregate, the Company paid $10.6 million, net of refunds received, for federal, state, and foreign income taxes, including those assumed in connection with certain transactions with affiliates of BC Partners, during the twenty-six weeks ended August 2, 2026 and paid income taxes, net of refunds received, of $6.9 million during the twenty-six weeks ended August 3, 2025.

Basic and diluted earnings per share attributable to the Company’s common stockholders are presented using the two-class method required for participating securities. Under the two-class method, net income attributable to the Company’s common stockholders is determined by allocating undistributed earnings between common stock and participating securities. Undistributed earnings for the periods presented are calculated as net income less distributed earnings. Undistributed earnings are allocated proportionally to the Company’s common Class A and Class B stockholders as both classes are entitled to share equally, on a per share basis, in dividends and other distributions. Basic and diluted earnings per share are calculated by dividing net income attributable to the Company’s common stockholders by the weighted-average shares outstanding during the period.

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The following table sets forth basic and diluted earnings per share attributable to the Company’s common stockholders for the periods presented (in millions, except per share data):

			13 Weeks Ended												26 Weeks Ended
			August 2, 2026						August 3, 2025						August 2, 2026						August 3, 2025
Basic and diluted earnings per share
Numerator
Earnings attributable to common Class A and Class B stockholders			$	80.5					$	62.0					$	175.3					$	124.4
Denominator
Weighted-average common shares used in computing earnings per share:
Basic			406.4						414.2						410.1						413.9
Effect of dilutive share-based awards			3.7						14.2						4.5						12.9
Diluted			410.1						428.4						414.6						426.8
Anti-dilutive share-based awards excluded from diluted common shares			19.2						0.7						15.2						0.7
Earnings per share attributable to common Class A and Class B stockholders:
Basic			$	0.20					$	0.15					$	0.43					$	0.30
Diluted			$	0.20					$	0.14					$	0.42					$	0.29

As of August 2, 2026, the Company had a payable to affiliates of BC Partners of $3.8 million with respect to refunds received pursuant to tax payments made in connection with certain transactions with affiliates of BC Partners, which was included in accrued expenses and other current liabilities on the Company’s consolidated balance sheets. As of February 1, 2026, the Company had a receivable from affiliates of BC Partners of $0.5 million with respect to future tax payments in connection with certain transactions with affiliates of BC Partners, which was included in prepaid expenses and other current assets on the Company’s consolidated balance sheets. For more information, see Note 12 - Income Taxes.

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On June 30, 2026, William Billings, the Company’s Chief Accounting Officer and Treasurer, adopted a “Rule 10b5-1 trading arrangement” as defined in Item 408 of Regulation S-K. The trading arrangement is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and is scheduled to expire on December 31, 2026, subject to earlier termination in accordance with its terms. The aggregate number of shares of Class A common stock authorized to be sold pursuant to the trading arrangement is 22,888 shares.

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