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Mar 31
PetMed Express Q4 2025 Earnings Report
PetMed Express reported a quarterly net loss driven by declining revenue, increased impairment charges, and reduced customer acquisition.
Key Takeaways
PetMed Express faced a challenging Q4 2025, with revenue dropping 18.9% YoY and a net loss of $11.6 million. EPS came in at -$0.56, with adjusted EPS at -$0.25. The company cited macroeconomic pressure, reduced advertising spend, and customer acquisition softness as key factors impacting performance.
Revenue for Q4 fell to $47.7 million, down from $58.9 million in Q4 2024.
Net loss widened to $11.6 million, partly due to a $1.2 million impairment loss.
EPS was -$0.56, while adjusted EPS was -$0.25, reflecting ongoing cost pressures.
New customer acquisition dropped to 66,000 compared to 108,000 in the same period last year.
PetMed Express
PetMed Express
PetMed Express Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
PetMed Express is executing a multi-channel transformation strategy with investments in private label launches, Amazon expansion, and technology upgrades, but macroeconomic pressures and customer acquisition challenges remain headwinds.
Positive Outlook
- Recurring sales remain strong, representing over 56% of gross sales.
- Strategic partnerships with Dutch and Mixlab to expand telehealth and compound pharmacy services.
- Private label product line expected to launch on Amazon in early FY2026.
- E-commerce modernization and omnichannel investments in progress.
- Improved operational controls following restatement and leadership changes.
Challenges Ahead
- Customer acquisition dropped 39% YoY in Q4.
- Revenue declined 18.9% YoY due to lower ad spend and macro headwinds.
- Higher discounting and promotions reduced gross margin.
- Impairment charges and restructuring costs impacted bottom line.
- Full-year dividend was suspended to preserve cash for strategic investments.