Fourth Quarter Fiscal 2026 Financial Highlights Compared to Prior Year Period
Net sales of $42.8 million compared to $50.8 million in the prior year period, a decrease of 15.6%, primarily driven by a decline in prescription medication sales.
Net loss of $4.1 million, or $(0.19) per diluted share, compared to a net loss of $11.6 million, or $(0.56) per diluted share, for the prior year period. The decrease in the net loss can be attributed to lower general and administrative expenses, the absence of the prior-year trade name impairment charge, higher interest income, and a lower provision for income taxes, driven by the Company establishing a full valuation allowance against its net deferred tax asset in the prior year period. These favorable factors were partially offset by lower gross profit resulting from decreased net sales.
Adjusted EBITDA1 was $(2.8) million compared to $(1.9) million in the prior year period.
Full Year Fiscal 2026 Financial Highlights Compared to Prior Year
Net sales of $179.0 million compared to $227.0 million in the prior year, a decrease of 21.1%, primarily driven by a decline in prescription medication sales.
Net loss of $57.3 million, or $(2.74) per diluted share, compared to a net loss of $6.3 million, or $(0.30) per diluted share in the prior year. The increase to net loss was primarily driven by a goodwill impairment charge of $26.7 million recorded in the first quarter of fiscal 2026, an increase in stock-based compensation expense, driven by the non-recurrence of an $8.7 million one-time non-cash stock compensation reversal associated with executive departures in the prior year, an increase in professional fees and executive severance costs, of which $4.5 million were one-time charges related to the whistleblower investigation, and lower gross profit resulting from decreased net sales. These factors were partially offset by a lower provision for income taxes, driven by the Company establishing a full valuation allowance against its net deferred tax asset in the prior year.
Adjusted EBITDA was $(15.4) million compared to $0.7 million for the prior year.
"We are pleased to report a modest sequential quarterly increase in fourth quarter net sales, demonstrating positive momentum as we close out the year," said Leslie Campbell, Interim Chief Executive Officer and President. "Throughout 2026, we focused on stabilizing our core business and strengthening the foundation for future long term value creation. We completed strategic, operational and technology initiatives that collectively reduced our cost structure and represent an important foundation for our future. We will continue to focus on operational excellence, driving sustainable long-term results, and delivering value for shareholders. We intend to do this in part through improved customer retention by leveraging our operational improvements, and also by expanding our market footprint through B2B relationships utilizing our membership programs as well as our white-label pharmacy fulfillment services like our recently announced Master Services Agreement with Rural King."
In December 2025, the Company received two unsolicited, non-binding preliminary proposals from two separate third parties to acquire all of the outstanding shares of Common Stock of the Company at prices ranging from $4.00 to $4.25 per share in cash, subject to customary conditions, including the satisfactory completion of due diligence and the negotiation and execution of a mutually acceptable definitive agreement. In response to the receipt of these proposals, the Board of Directors of the Company (the "Board"), consistent with its fiduciary duties and in consultation with its financial and legal advisors, carefully evaluated the two unsolicited proposals and directed its financial advisor to actively solicit interest in a potential sale transaction from other strategic and financial sponsors that the Company and its financial advisor believed might have an interest in, and the financial capacity to consummate, a potential acquisition of the Company at a price and on terms that would maximize value for the Company's stockholders. Following this process and after careful deliberation and consideration of the alternatives reasonably available to the Company, the Board determined that it is in the best interests of the Company and its stockholders not to proceed with either of the publicly announced proposals, as a result of which the Company is continuing to operate as an independent, publicly traded company. However, the Board remains open to considering any inbound indications of interest with respect to a potential transaction that may be received in the future and will continue to act in accordance with its fiduciary duties to evaluate any such proposals should they arise.
___________________________
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.
Earnings WebcastA webcast discussing fourth quarter and fiscal 2026 results is available at the "News & Events" section of the Company's investor relations website at https://investors.petmeds.com/News--Events/events-and-presentations/default.aspx.
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 PETS 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 to be filed for the year ended March 31, 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, LLCReed Anderson(646)
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share amounts) (Unaudited)
March 31, 2026
March 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
21,412
$
54,720
Accounts receivable, less allowance for credit losses of $25 and $91, respectively
1,908
2,317
Inventories, net
13,608
16,205
Prepaid expenses and other current assets
6,378
5,330
Prepaid income taxes
258
299
Total current assets
43,564
78,871
Noncurrent assets:
Property and equipment, net
26,326
28,859
Intangible and other assets, net
10,789
13,346
Goodwill
—
26,658
Operating lease right-of-use assets, net
512
966
Total noncurrent assets
37,627
69,829
Total assets
$
81,191
$
148,700
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
20,906
$
23,564
Sales tax payable
22,261
24,867
Accrued expenses and other current liabilities
7,665
11,711
Current operating lease liabilities
493
461
Deferred revenue
689
2,085
Income taxes payable
20
80
Total current liabilities
52,034
62,768
Deferred tax liabilities, net
175
263
Long-term operating lease liabilities
42
535
Total liabilities
$
52,251
$
63,566
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; 21,385,638 and 20,656,822 shares issued and outstanding, respectively
21
21
Additional paid-in capital
19,647
18,560
Retained earnings
9,263
66,544
Total shareholders' equity
28,940
85,134
Total liabilities and shareholders' equity
$
81,191
$
148,700
PETMED EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(In thousands, except for share and per share amounts) (Unaudited)
Three Months Ended March 31,
Year Ended March 31,
2026
2025
2026
2025
Net sales
$
42,817
$
50,760
$
179,021
$
226,972
Cost of sales
28,875
35,564
126,679
157,835
Inventory write-down
—
—
2,126
—
Gross profit
13,942
15,196
50,216
69,137
Operating expenses:
General and administrative
11,415
12,494
50,733
38,647
Advertising
5,792
5,448
21,511
23,781
Depreciation and amortization
2,427
2,074
