PetMed Express
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PetMed Express (PETS) investor relations material

PetMed Express Q3 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2026 earnings summary4 Feb, 2026

Executive summary

  • Net sales for the quarter ended December 31, 2025, declined 21.7% year-over-year to $40.7 million, with a 22.7% decrease for the nine-month period to $136.2 million, primarily due to lower prescription medication sales and increased promotional activity.

  • Gross profit fell 41.4% to $9.5 million for the quarter, and 32.8% to $36.3 million for the nine months, with gross margin dropping to 23.3% from 31.0% year-over-year for the quarter.

  • The company recorded a net loss of $10.6 million for the quarter and $53.2 million for the nine months, compared to net losses of $0.7 million and net income of $5.4 million, respectively, in the prior year periods.

  • Adjusted EBITDA was negative $7.6 million for the quarter and negative $12.6 million for the nine months, reflecting significant operational and non-cash charges.

Financial highlights

  • Cost of sales as a percentage of sales increased to 76.7% for the quarter, up from 69.0% in the prior year, driven by a $2.1 million inventory write-down and higher promotional usage.

  • General and administrative expenses rose 13.1% to $12.2 million for the quarter and 50.3% to $39.3 million for the nine months, mainly due to higher stock-based compensation and professional fees related to an internal investigation.

  • Advertising expenses increased 26.7% to $5.3 million for the quarter but decreased 14.2% to $15.7 million for the nine months; customer acquisition cost rose to $90 per new customer for the quarter.

  • Depreciation and amortization expense was $2.4 million for the quarter and $7.0 million for the nine months.

  • Cash and cash equivalents decreased to $26.9 million at December 31, 2025, from $54.7 million at March 31, 2025.

Outlook and guidance

  • Management expects continued challenges from macroeconomic factors such as inflation, interest rates, and changing consumer behavior, which may impact future sales and profitability.

  • The company believes current cash and expected future cash flows are sufficient for at least the next twelve months, but longer-term liquidity depends on operational performance.

Board's view on acquisition proposals
Drivers of goodwill/intangible asset impairment
Status of internal control remediation efforts
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Frequently asked questions

PetMed Express Inc is a pet pharmacy that markets prescription and non-prescription pet medications, health products, and supplies. It operates primarily through direct-to-consumer channels, including e-commerce and call centers. The company serves dog and cat owners across the United States. PetMed Express Inc is headquartered in Delray Beach, Florida, and its shares are listed on the NASDAQ.

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