Petco Health and Wellness Company, Inc. receives a Hold rating as operational improvements are offset by ongoing top-line softness and high leverage. FY2025 saw net sales decline 2.5% to $5.96B, but gross margin rose 70bps to 38.7%, and adjusted EBITDA improved to $408M. Management's 'Reach for the Sky' strategy targets growth in high-margin services, premium food, and footprint optimization, with 2026 guidance implying stabilization.