Petmed Express (PETS)
NASDAQ:PETS
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Petmed Express
(NASDAQ:PETS)
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Rating:44Neutral
Price Target:
$2.00
▲(12.99% Upside)
Action:Reiterated
Date:06/06/26
The score is primarily weighed down by severe financial deterioration (large FY2026 loss and sharply negative operating/free cash flow) and a strong downtrend in the stock price versus key moving averages. Offsetting factors include a debt-free balance sheet with meaningful cash and management’s reported progress on cost controls, controls remediation, and early signs of operational stabilization, but these are not yet reflected in sustained revenue/EBITDA recovery.
Positive Factors
Low leverage / cash runway
A debt-free capital structure with $21.4M cash provides durable financial flexibility to fund the ERP, fraud and call-center upgrades and execute cost savings while revenue stabilizes. Low leverage reduces refinancing and interest risk and supports multi-month restructuring without immediate external financing.
Negative Factors
Sharp revenue decline
A 21% year-over-year sales decline signals a persistent loss of core demand, notably in prescription medications. Reduced revenue undermines scale economics, weakens pricing power, and makes fixed-cost deleverage more severe, prolonging the timeline for a durable earnings recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / cash runway
A debt-free capital structure with $21.4M cash provides durable financial flexibility to fund the ERP, fraud and call-center upgrades and execute cost savings while revenue stabilizes. Low leverage reduces refinancing and interest risk and supports multi-month restructuring without immediate external financing.
Read all positive factors
Petmed Express (PETS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.53M
Dividend YieldN/A
Average Volume (3M)159.02K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth-21.13%
EPS Growth-810.17%
CountryUS
Employees287
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)-2.75
Shares Outstanding21,365,782
10 Day Avg. Volume293,027
30 Day Avg. Volume159,017
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.65
Price to Sales (P/S)0.27
P/FCF Ratio-1.45
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit0.49
Enterprise Value/Ebitda-0.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)$180.32M
Petmed Express Business Overview & Revenue Model
Company Description
PetMed Express, Inc., through its various subsidiaries, operates as a prominent pet pharmacy across the United States. The company provides a comprehensive range of both prescribed and over-the-counter animal medications, health-related items, and...
How the Company Makes Money
PetMed Express generates revenue primarily through direct-to-consumer sales of pet health products fulfilled via its e-commerce and call center channels. Its core revenue stream is product sales, with a significant portion coming from prescription...
Petmed Express Earnings Call Summary
Earnings Call Date:Jun 02, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Negative
The call highlights meaningful operational, governance and technology progress — including remediation of material weaknesses, cost-savings actions (~$6.1M annualized), Q4 sequential sales improvement, expanded tech infrastructure, and a clean balance sheet with $21.4M cash and no debt. However, these positives were offset by significant financial deterioration: a 21.1% decline in FY sales, a substantial FY net loss of $57.3M driven largely by a $26.7M goodwill impairment and other nonrecurring charges, and negative adjusted EBITDA of $15.4M. Management emphasized stabilization and early signs of improvement in the second half, but the magnitude of the year-over-year deterioration in top-line and profitability represents a material near-term challenge.Positive Updates
Sequential Q4 Improvement and Lower Q4 Net Loss
Q4 net sales of $42.8M (down 15.6% YoY) showed a sequential quarterly increase from Q3 — the first Q4 sequential increase since FY2024. Q4 net loss improved to $4.1M ($0.19 per diluted share) vs. $11.6M ($0.56) in the prior-year quarter.
Negative Updates
Significant Full-Year Revenue Decline
Full-year net sales of $179.0M vs. $227.0M prior year, a decline of 21.1%, primarily driven by a drop in prescription medication sales.
Read all updates
Q4-2026 Updates
Positive
Negative
Sequential Q4 Improvement and Lower Q4 Net Loss
Q4 net sales of $42.8M (down 15.6% YoY) showed a sequential quarterly increase from Q3 — the first Q4 sequential increase since FY2024. Q4 net loss improved to $4.1M ($0.19 per diluted share) vs. $11.6M ($0.56) in the prior-year quarter.
Read all positive updates
Company Guidance
The company provided directional guidance rather than specific FY27 targets, saying it will build on fiscal 2026 operational, financial and cultural fixes to drive sustainable long‑term results through operational excellence, improved customer retention and B2B/white‑label expansion (including a Master Services Agreement with Rural King). Management cited metrics showing early momentum—FY26 net sales $179.0M (down 21.1% from $227.0M), Q4 net sales $42.8M (down 15.6% year‑over‑year, or down 17.8% adjusted for the New York sales tax settlement) with a sequential Q4 sales increase (the first Q4 sequential increase since FY24); Q4 gross profit $13.9M (32.6%, up 270 bps), Q4 net loss $4.1M or $0.19 per diluted share (vs. $11.6M/$0.56 prior year), FY net loss $57.3M or $2.74 per diluted share, FY adjusted EBITDA negative $15.4M (vs. +$0.7M prior year) and Q4 adjusted EBITDA loss $2.8M. They highlighted balance‑sheet and cost actions—$21.4M cash, no debt, remediation of 3 material weaknesses, implementation of a new ERP, fraud and call‑center systems, ~$6.1M of annualized savings from exiting vendors, a $2.8M benefit from settling the NY tax liability—and cautioned FY26 included one‑time items (a $26.7M goodwill impairment, $2.1M inventory write‑down and $4.5M legal/professional/severance), so near‑term guidance is focused on translating these improvements into revenue stabilization and EBITDA recovery rather than issuing specific numeric guidance today.Petmed Express Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
52
Neutral
Cash Flow
21
Negative
| Breakdown | Mar 2026 | Jun 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 179.02M | 226.97M | 274.10M | 256.58M | 273.42M |
| Gross Profit | 50.22M | 69.14M | 77.71M | 71.01M | 75.34M |
| EBITDA | -22.03M | 6.71M | 783.00K | 10.99M | 29.81M |
| Net Income | -57.29M | -6.27M | -7.46M | 5.14M | 21.10M |
Balance Sheet | |||||
| Total Assets | 81.19M | 148.70M | 169.88M | 170.00M | 176.32M |
| Cash, Cash Equivalents and Short-Term Investments | 21.41M | 54.72M | 55.30M | 104.09M | 111.08M |
| Total Debt | 535.00K | 996.00K | 1.45M | 995.00K | 0.00 |
| Total Liabilities | 52.25M | 63.57M | 73.15M | 60.04M | 34.13M |
| Stockholders Equity | 28.94M | 85.13M | 96.73M | 109.97M | 142.19M |
Cash Flow | |||||
| Free Cash Flow | -33.01M | -395.00K | -194.00K | 22.54M | 16.75M |
| Operating Cash Flow | -28.39M | 4.72M | 4.32M | 27.80M | 18.50M |
| Investing Cash Flow | -4.62M | -5.11M | -40.67M | -10.26M | -1.75M |
| Financing Cash Flow | -299.00K | -181.00K | -12.44M | -24.54M | -24.38M |
Petmed Express Technical Analysis
Negative
1.77
Price Trends
2.19
Negative
2.48
Negative
2.59
Negative
Market Momentum
-0.14
Positive
37.76
Neutral
28.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PETS, the sentiment is Negative. The current price of 1.77 is below the 20-day moving average (MA) of 2.02, below the 50-day MA of 2.19, and below the 200-day MA of 2.59, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 28.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PETS.
Petmed Express Risk Analysis
Petmed Express disclosed 33 risk factors in its most recent earnings report. Petmed Express reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Petmed Express Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $227.30M | -13.69 | -172.30% | ― | -6.23% | -25.01% | |
53 Neutral | $169.17M | -7.67 | -48.20% | ― | 7336.90% | 49.64% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
45 Neutral | $42.96M | -3.85 | 8.26% | ― | -19.75% | -25.89% | |
45 Neutral | $271.57M | -0.75 | 309.79% | ― | -35.61% | -68.92% | |
44 Neutral | $39.53M | -0.68 | -122.10% | ― | -21.13% | -810.17% |
* Healthcare Sector Average
PETS
Petmed Express
1.85
-1.75
-48.61%
YI
111
4.89
-3.23
-39.79%
LFMD
LifeMD
4.70
-8.77
-65.11%
SRZN
Surrozen
23.39
13.85
145.18%
ADAG
Adagene
3.57
1.64
84.97%
Petmed Express Corporate Events
Regulatory Filings and ComplianceShareholder Meetings
PetMed Express Sets Key Deadlines for 2026 Shareholder Nominations
Neutral
May 21, 2026
PetMed Express, Inc. has scheduled its 2026 Annual Meeting of Shareholders to be held virtually on August 11, 2026, marking a date change of more than 30 days from the 2025 meeting and triggering new procedural timelines. As a result, prior deadli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.