PetMed Express (PETS) investor relations material

Executive summary

• Fiscal year 2026 marked a pivotal period with significant financial, operational, and cultural improvements aimed at long-term sustainability.

• Substantial progress was made in stabilizing the core business and regaining regulatory compliance in the second half of the year.

• Leadership changes included a new Chief Growth Officer and key internal promotions to strengthen operations.

• Employee benefits were expanded, and satisfaction ratings increased, reflecting a renewed focus on culture.

• The board rejected two unsolicited acquisition proposals in December 2025, opting to remain independent but open to future offers.

Financial highlights

• Net sales for FY2026 were $179 million, down 21.1% year-over-year; Q4 net sales were $42.8 million, down 15.6% from the prior year, mainly due to lower prescription medication sales.

• Q4 gross profit was $13.9 million (32.6% of sales), up 270 basis points year-over-year due to a sales tax settlement.

• Q4 net loss was $4.1 million ($0.19 per share), improved from $11.6 million loss last year; full-year net loss was $57.3 million ($2.74 per share), up from $6.3 million loss in the prior year, driven by a $26.7 million goodwill impairment and higher non-recurring expenses.

• Adjusted EBITDA loss for FY2026 was $15.4 million, compared to positive $0.7 million in the prior year.

• Cash and cash equivalents stood at $21.4 million with no debt as of March 31, 2026, down from $54.7 million a year ago.

Outlook and guidance

• Focus remains on operational excellence, customer retention, and expanding market footprint through B2B relationships and membership programs.

• Strategic partnerships, such as the agreement with Rural King, are expected to leverage pharmacy expertise and infrastructure.

• Continued prioritization of website and user experience optimization and risk reduction.

• Management highlighted sequential quarterly sales growth in Q4 and ongoing efforts to stabilize the core business and reduce costs.