PetMeds® Announces Second Quarter Financial Results

New-customer acquisition costs fell 32% year over year, while quarterly adjusted EBITDA deteriorated.

Rhea-AI Summary

PetMed Express (NASDAQ: PETS) reported second-quarter net sales of $35.8 million for the period ended September 30, 2026. Sales fell 19.4% year over year, primarily reflecting lower prescription medication sales and greater promotional usage. Net loss narrowed to $6.434 million, or $0.31 per diluted share, from $8.520 million, or $0.41 per share. Lower administrative and advertising expenses helped offset reduced gross profit.

Adjusted EBITDA, a measure excluding certain expenses, worsened to negative $3.643 million from negative $2.316 million. Six-month sales declined to $76.785 million from $95.544 million, while net loss narrowed to $12.579 million from $42.672 million. Operating cash use improved to $8.744 million from $14.445 million. Cash stood at $11.418 million on September 30, down from $21.412 million on March 31, 2026.

13 points · 0 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 10 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQuarterly net loss narrowed to $6.434 million, or $0.31 per share, from $8.520 million, or $0.41.
• Moderate pointSix-month operating cash use improved to $8.744 million from $14.445 million a year earlier.
• Moderate pointQuarterly general and administrative expenses declined to $11.968 million from $14.176 million year over year.
• Moderate pointQuarterly advertising expenses declined to $2.072 million from $4.341 million year over year.
• Minor pointSix-month net loss narrowed to $12.579 million, or $0.60 per share, from $42.672 million, or $2.05.

8 minor points

• Minor pointNew-customer acquisition costs fell 32% year over year during the quarter.
• Minor pointSix-month general and administrative expenses declined to $23.165 million from $27.124 million year over year.
• Minor pointSix-month advertising expenses declined to $6.292 million from $10.387 million year over year.
• Minor pointSix-month goodwill and intangible impairment charges were zero, versus $27.258 million a year earlier.
• Minor pointQuarterly depreciation and amortization declined to $2.182 million from $2.278 million year over year.
• Minor pointSix-month depreciation and amortization declined to $4.330 million from $4.561 million year over year.
• Minor pointQuarterly net interest expense declined to $195,000 from $326,000 year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.PetMeds plans brand repositioning and website improvements alongside marketing and customer-retention changes.

Negative

• Moderate pointQuarterly sales fell 19.4% year over year to $35.8 million, reflecting prescription declines and greater promotional usage.
• Moderate pointQuarterly gross profit declined to $9.803 million from $12.415 million year over year.
• Moderate pointQuarterly adjusted EBITDA worsened to negative $3.643 million from negative $2.316 million year over year.
• Moderate pointCash declined to $11.418 million at September 30, 2026, from $21.412 million at March 31, 2026.
• Moderate pointCurrent liabilities of $42.366 million exceeded current assets of $25.343 million at September 30, 2026.
• Moderate pointShareholders' equity declined to $16.862 million from $28.940 million at March 31, 2026.

4 minor points

• Minor pointSix-month sales declined to $76.785 million from $95.544 million a year earlier.
• Minor pointSix-month gross profit declined to $21.136 million from $26.818 million a year earlier.
• Minor pointSix-month adjusted EBITDA worsened to negative $7.091 million from negative $5.012 million a year earlier.
• Minor pointSix-month net interest expense increased to $533,000 from $524,000 a year earlier.

News Explained

The second-quarter balance sheet reports common shares issued and outstanding rising from 21,385,638 on March 31, 2026 to 22,131,508 on September 30, 2026; an unchanged shareholding therefore represents a smaller fraction of the company.

Key Figures

Net sales: $35.8 million Net loss: $6.4 million Diluted net loss per share: $(0.31) +4 more

Net sales

$35.8 million

Second quarter; $44.4 million in the prior-year period, down 19.4%

Net loss

$6.4 million

Second quarter; compared with $8.5 million in the prior-year period

Diluted net loss per share

$(0.31)

Second quarter; compared with $(0.41) in the prior-year period

Adjusted EBITDA

$(3.6) million

Second quarter; compared with $(2.3) million in the prior-year period

Customer acquisition cost

Down 32%

This quarter compared with a year ago

Cash and cash equivalents

$11,418 thousand

September 30, 2026; $21,412 thousand at March 31, 2026

Cash used in operating activities

$8,744 thousand

Six months ended September 30, 2026

Previous Earnings Reports

1 past event · Latest: Aug 13

Same Type 1 event

1. Aug 13

   Q1 earnings results

   24h Move

   -10.1%

   Net sales fell 19.9%, while net loss narrowed and adjusted EBITDA loss worsened.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap financial measure, share-based compensation

3 terms

adjusted ebitda financial

"Adjusted EBITDA was $(3.6) million compared to $(2.3) million in the prior year period."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial measure financial

"Adjusted EBITDA is a non-GAAP financial measure."

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

share-based compensation financial

"Adjusted EBITDA does not reflect net share-based compensation."

Share-based compensation is when a company pays employees, executives or directors with its own stock or rights to buy stock instead of, or in addition to, cash. Think of it like receiving store gift cards instead of extra paycheck — it can motivate staff to boost the company’s value, but it also increases the number of shares outstanding and can shrink each existing owner’s slice of profits and voting power. Investors watch it because it affects reported earnings, share count and the alignment between management and shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DELRAY BEACH, Fla., Nov. 10, 2026 (GLOBE NEWSWIRE) -- PetMed Express, Inc. dba PetMeds and parent company of PetCareRx (NASDAQ: PETS) today announced its financial results for its second quarter ended September 30, 2026. 

Quarterly Highlights

• For the second quarter ended September 30, 2026, net sales were $35.8 million compared to $44.4 million for the prior year period, a decrease of 19.4%, primarily driven by a decline in prescription medication sales and higher consumer promotional usage.
• Net loss for the quarter ended September 30, 2026, was $6.4 million, or $(0.31) per diluted share, compared to a net loss of $8.5 million, or $(0.41) per diluted share, for the prior year period. The decrease in net loss was primarily driven by lower general and administrative expenses and advertising expenses. These favorable factors were partially offset by lower gross profit primarily driven by unfavorable product mix shift and lower manufacturer rebates as a percentage of sales, partially offset by lower net freight costs per order.
• Adjusted EBITDA¹ was $(3.6) million compared to $(2.3) million in the prior year period.
  

“We have stabilized the operations of the business and our focus now is on transforming our core direct-to-consumer pharmacy business and making PetMeds a leaner, more profitable company at the size we are today,” said Jeff Willard, Chief Executive Officer and President of PetMeds. “We are already making progress: this quarter we cut our cost to acquire a new customer by 32% from a year ago. Next, we are repositioning the brand so pet parents know exactly why to choose PetMeds, making our marketing work harder, making our website easier to buy from, and keeping more of the customers we win. Every one of these steps is built to create a profitable PetMeds that can grow again.”

Earnings Webcast
PetMeds will host a webcast reviewing financial results for the second quarter ended September 30, 2026 at 4:30pm Eastern Time today. The webcast can be accessed at the “News & Events” section of the Company’s investor relations website at https://investors.petmeds.com/News--Events/events-and-presentations/default.aspx or directly here.

About PetMed Express, Inc.

Founded in 1996, PetMeds is a pioneer in the direct-to-consumer pet healthcare sector. As a trusted national online pharmacy, PetMeds is licensed across all 50 states and staffed with expert pharmacists dedicated to supporting pet wellness, pets and pet parents, and the veterinarians who serve them. Through its PetMeds family of brands and through its PetCareRx subsidiary, the Company offers a comprehensive range of pet health solutions - including top-brand and generic pharmaceuticals, compounded medications, and better-for-your-pet OTC supplements and nutrition. Focused on value, convenience, and care, PetMeds and PetCareRx empower pet parents to help their dogs, cats, and horses live longer, healthier lives. To learn more, visit www.PetMeds.com and www.PetCareRx.com

Forward Looking Statement

This press release may contain “forward-looking statements”, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve a number of risks and uncertainties, including the Company’s ability to meet the objectives included in its business plan. Important factors that could cause results to differ materially from those indicated by such forward-looking statements are set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026, filed on June 2, 2026. The Company’s future results may also be impacted by other risk factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and periodic filings on Form 8-K. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release and should not be relied upon as representing the Company’s views as of any subsequent date. The Company explicitly disclaims any obligation to update any forward-looking statements, other than as may be required by law. If the Company does update one or more forward-looking statements, no inference should be made that the Company will make additional updates with respect to those or other forward-looking statements.

Investor Contact:
ICR, LLC
Reed Anderson
(646) 277-1260
investor@petmeds.com

PETMED EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share amounts)
	September 30, 2026				March 31, 2026
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	11,418			$	21,412
Accounts receivable, less allowance for credit losses of $0 and $25, respectively		1,373				1,908
Inventories		6,303				13,608
Prepaid expenses and other current assets		6,187				6,378
Prepaid income taxes		62				258
Total current assets		25,343				43,564
Noncurrent assets:
Property and equipment, net		23,472				26,326
Intangible and other assets, net		10,310				10,789
Operating lease right-of-use assets		278				512
Total noncurrent assets		34,060				37,627
Total assets	$	59,403			$	81,191
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	15,258			$	20,906
Sales tax payable		18,927				22,261
Accrued expenses and other current liabilities		7,302				7,665
Current operating lease liabilities		291				493
Deferred revenue		588				689
Income taxes payable		—				20
Total current liabilities		42,366				52,034
Deferred tax liabilities, net		175				175
Operating lease liabilities, net of current lease liabilities		—				42
Total liabilities		42,541				52,251
Shareholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized:
Convertible preferred stock, $0.001 par value, with a liquidation preference of $4 per share, 250,000 shares authorized; 2,500 and 2,500 convertible shares issued and outstanding, respectively		9				9
Series A Junior Participating Preferred Stock, $0.001 par value, 100,000 shares authorized; no shares issued or outstanding		—				—
Common stock, $.001 par value, 40,000,000 shares authorized; 22,131,508 and 21,385,638 shares issued and outstanding, respectively		22				21
Additional paid-in capital		20,147				19,647
Retained earnings		(3,316	)			9,263
Total shareholders' equity		16,862				28,940
Total liabilities and shareholders' equity	$	59,403			$	81,191

PETMED EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share amounts) (Unaudited)
	Three Months Ended September 30,								Six Months Ended September 30,
		2026				2025				2026				2025
Net sales	$	35,770			$	44,364			$	76,785			$	95,544
Cost of sales		25,967				31,949				55,649				68,726
Gross profit		9,803				12,415				21,136				26,818
Operating expenses:
General and administrative		11,968				14,176				23,165				27,124
Advertising		2,072				4,341				6,292				10,387
Depreciation and amortization		2,182				2,278				4,330				4,561
Impairment of goodwill and intangible assets		—				—				—				27,258
Total operating expenses		16,222				20,795				33,787				69,330
Loss from operations		(6,419	)			(8,380	)			(12,651	)			(42,512	)
Other income:
Interest (expense) income, net		(195	)			(326	)			(533	)			(524	)
Other, net		194				195				632				382
Total other (expense) income		(1	)			(131	)			99				(142	)
Loss before provision for income taxes		(6,420	)			(8,511	)			(12,552	)			(42,654	)
Provision for income taxes		14				9				27				18
Net loss	$	(6,434	)		$	(8,520	)		$	(12,579	)		$	(42,672	)
Basic and diluted net loss per share	$	(0.31	)		$	(0.41	)		$	(0.60	)		$	(2.05	)
Basic and diluted weighted-average common shares outstanding		21,072,155				20,889,124				21,059,843				20,822,270

PETMED EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	Six Months Ended September 30,
		2026				2025
Cash flows from operating activities:
Net loss	$	(12,579	)		$	(42,672	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		4,330				4,561
Impairment of goodwill and intangible assets		—				27,258
Share-based compensation		524				839
Bad debt (recovery) expense		—				6
(Increase) decrease in operating assets and increase (decrease) in operating liabilities:
Accounts receivable		535				346
Inventories		7,305				1,437
Prepaid income taxes		196				36
Prepaid expenses and other current assets		191				(1,031	)
Operating lease right-of-use assets		234				225
Accounts payable		(5,648	)			(4,445	)
Sales tax payable		(3,334	)			416
Accrued expenses and other current liabilities		(133	)			(23	)
Lease liabilities		(244	)			(228	)
Deferred revenue		(101	)			(1,090	)
Income taxes payable		(20	)			(80	)
Net cash used in operating activities		(8,744	)			(14,445	)
Cash flows from investing activities:
Purchases of property and equipment		(1,227	)			(3,916	)
Net cash used in investing activities		(1,227	)			(3,916	)
Cash flows from financing activities:
Dividends paid		—				(23	)
Cash paid for tax withholding on net settlement of restricted stock		(23	)			(238	)
Net cash used in financing activities		(23	)			(261	)
Net decrease in cash and cash equivalents		(9,994	)			(18,622	)
Cash and cash equivalents, at beginning of period		21,412				54,720
Cash and cash equivalents, at end of period	$	11,418			$	36,098
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	$	(137	)		$	66
Dividends payable in accrued expenses and other current liabilities	$	—			$	1
Non-cash investing activity for property and equipment additions	$	(230	)		$	(854	)

Non-GAAP Financial Measures

To provide investors and the market with additional information regarding our financial results, we have disclosed (see below) adjusted EBITDA, a non-GAAP financial measure that we calculate as net income excluding share-based compensation expense (benefit), depreciation and amortization; income tax provision, interest income (expense), and certain other non-operational expenses. We have provided reconciliations below of net (loss) income to adjusted EBITDA, the most directly comparable GAAP financial measures.

We have included adjusted EBITDA, herein, because it is a key measure used by our management and Board of Directors to evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and other expenses. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors.

We believe it is useful to exclude non-cash charges, such as share-based compensation expense (benefit) and depreciation and amortization from our adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude income tax provision and interest income (expense), as neither are components of our core business operations. We also believe that it is useful to exclude other non-operational expenses, employee severance, impairment of goodwill and intangible assets, and interest expense relating to an estimated unremitted prior sales tax accrual as these items are not indicative of our ongoing operations. Adjusted EBITDA has limitations as a financial measure, and these non-GAAP measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and adjusted EBITDA does not reflect capital expenditure requirements for such replacements or for new capital expenditures;
• Adjusted EBITDA does not reflect net share-based compensation. Share-based compensation has been, and will continue to be for the foreseeable future, a material recurring expense in our business and an important part of our compensation strategy;
• Adjusted EBITDA does not reflect interest income (expense), net; or changes in, or cash requirements for, our working capital;
• Adjusted EBITDA does not reflect transaction related costs and other items which are either not representative of our underlying operations or are incremental costs that result from an actual or planned transaction and include litigation matters, integration consulting fees, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems;
• Adjusted EBITDA does not reflect certain non-operating expenses including the employee severance which reduces cash available to us;
• Adjusted EBITDA does not reflect certain non-operating expenses (income) including sales tax expense (income) relating to recording a liability for sales tax we did not collect from our customers;
• Other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces the measures usefulness as comparative measures.
  

Because of these and other limitations, Adjusted EBITDA should only be considered as supplemental to, and alongside with other GAAP based financial performance measures, including various cash flow metrics, net income, net margin, and our other GAAP results.

The following table presents a reconciliation of net loss, the most directly comparable GAAP measure to Adjusted EBITDA for each of the periods indicated:

Reconciliation of Unaudited Non-GAAP Measures PetMed Express, Inc.
	Three Months Ended								Increase (Decrease)
($ in thousands, except percentages)	September 30, 2026				September 30, 2025				$				%
Consolidated Reconciliation of GAAP Net Loss to Adjusted EBITDA:
Net loss	$	(6,434	)		$	(8,520	)		$	2,086			24	%
Add (subtract):
Share-based Compensation Expense		326				248				78			31	%
Income Taxes		14				9				5			56	%
Depreciation and Amortization		2,182				2,278				(96	)		(4)%
Interest Expense (Income), Net		195				326				(131	)		(40)%
Employee Severance		74				1,223				(1,149	)		(94)%
Professional Fees(1)		—				2,120				(2,120	)		(100)%
Adjusted EBITDA	$	(3,643	)		$	(2,316	)		$	(1,327	)		(57)%

	Six Months Ended								Increase (Decrease)
($ in thousands, except percentages)	September 30, 2026				September 30, 2025				$ Change				% Change
Consolidated Reconciliation of GAAP Net Loss to Adjusted EBITDA:
Net loss	$	(12,579	)		$	(42,672	)		$	30,093			71	%
Add (subtract):
Share-based Compensation Expense		524				839				(315	)		(38)%
Income Taxes		27				18				9			50	%
Depreciation and Amortization		4,330				4,561				(231	)		(5)%
Interest Expense (Income), Net		533				524				9			2	%
Employee Severance		74				1,319				(1,245	)		(94)%
Professional Fees(1)		—				3,141				(3,141	)		(100)%
Impairment of goodwill and intangible assets		—				27,258				(27,258	)		(100)%
Adjusted EBITDA	$	(7,091	)		$	(5,012	)		$	(2,079	)		(41)%

(1) Consists of professional fees related to the completed Audit Committee investigation as previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

______________________
¹ Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were PetMeds' second-quarter 2026 sales and earnings?

PetMeds reported $35.8 million in sales and a $6.434 million net loss for the quarter ended September 30, 2026. Sales declined 19.4% year over year. The diluted loss per share narrowed to $0.31 from $0.41 a year earlier.

Why did PetMeds' second-quarter gross profit decline?

Quarterly gross profit declined primarily because of an unfavorable product mix and lower manufacturer rebates as a percentage of sales. Lower net freight costs per order partly offset those pressures.

What does PetMeds exclude from adjusted EBITDA?

PetMeds calculates adjusted EBITDA by excluding share-based compensation, depreciation and amortization, income taxes, net interest and certain other expenses from net income. The quarterly reconciliation also adds back employee severance. This supplemental measure is not a substitute for results prepared under generally accepted accounting principles.