PetMeds® Announces Third Quarter Fiscal 2025 Financial Results
PetMed Express (NASDAQ: PETS) has reported its Q3 fiscal 2025 financial results, highlighting several key improvements in its business performance. The company achieved net sales of $53.0 million and improved its gross margin rate to 28.1%, representing an 80 basis points increase compared to the previous year.
The company's Adjusted EBITDA reached $2.0 million, showing a significant improvement from $0.9 million in the prior year period. Management successfully reduced G&A expenses by $2.6 million compared to last year, demonstrating progress in their transformation initiatives focused on operational excellence and financial discipline.
PetMed Express (NASDAQ: PETS) ha riportato i risultati finanziari per il terzo trimestre dell'anno fiscale 2025, evidenziando diversi miglioramenti chiave nelle prestazioni aziendali. L'azienda ha raggiunto entrate nette di 53,0 milioni di dollari e ha migliorato il suo tasso di margine lordo al 28,1%, rappresentando un aumento di 80 punti base rispetto all'anno precedente.
L'EBITDA Adjusted dell'azienda ha raggiunto 2,0 milioni di dollari, mostrando un significativo miglioramento rispetto ai 0,9 milioni dello stesso periodo dell'anno precedente. La direzione ha ridotto con successo le spese generali e amministrative di 2,6 milioni di dollari rispetto all'anno scorso, dimostrando progressi nelle sue iniziative di trasformazione focalizzate sull'eccellenza operativa e sulla disciplina finanziaria.
PetMed Express (NASDAQ: PETS) ha publicado sus resultados financieros del tercer trimestre del año fiscal 2025, destacando varias mejoras clave en su desempeño comercial. La compañía logró ventas netas de 53,0 millones de dólares y mejoró su tasa de margen bruto al 28,1%, lo que representa un aumento de 80 puntos básicos en comparación con el año anterior.
El EBITDA Ajustado de la compañía alcanzó 2,0 millones de dólares, mostrando una mejora significativa desde los 0,9 millones del mismo período del año anterior. La dirección logró reducir los gastos generales y administrativos en 2,6 millones de dólares en comparación con el año pasado, demostrando avances en sus iniciativas de transformación centradas en la excelencia operativa y la disciplina financiera.
PetMed Express (NASDAQ: PETS)는 2025 회계연도 3분기 재무 결과를 발표하면서 비즈니스 성과의 여러 주요 개선 사항을 강조했습니다. 이 회사는 5300만 달러의 순매출을 달성했으며, 총 마진율을 28.1%로 개선하여 전년 대비 80베이시스 포인트 상승했습니다.
회사의 조정 EBITDA는 200만 달러에 도달하여 전년 동기 90만 달러에서 크게 개선되었습니다. 경영진은 작년에 비해 일반 및 관리비를 260만 달러 줄이는 데 성공하여 운영 우수성과 재무 규율에 중점을 둔 전환 이니셔티브에서 진행 상황을 보여주었습니다.
PetMed Express (NASDAQ: PETS) a publié ses résultats financiers pour le troisième trimestre de l'exercice 2025, mettant en avant plusieurs améliorations clés de ses performances commerciales. L'entreprise a réalisé des ventes nettes de 53,0 millions de dollars et a amélioré son taux de marge brute à 28,1%, ce qui représente une augmentation de 80 points de base par rapport à l'année précédente.
L'EBITDA ajusté de la société a atteint 2,0 millions de dollars, montrant une amélioration significative par rapport à 0,9 million de dollars pendant la même période de l'année précédente. La direction a réussi à réduire les frais généraux et administratifs de 2,6 millions de dollars par rapport à l'année dernière, démontrant des progrès dans leurs initiatives de transformation axées sur l'excellence opérationnelle et la discipline financière.
PetMed Express (NASDAQ: PETS) hat die Finanzresultate für das dritte Quartal des Geschäftsjahres 2025 veröffentlicht und dabei mehrere wesentliche Verbesserungen in der Unternehmensleistung hervorgehoben. Das Unternehmen erzielte Nettoverkaufszahlen von 53,0 Millionen US-Dollar und verbesserte seine Bruttomarge auf 28,1%, was einem Anstieg von 80 Basispunkten im Vergleich zum Vorjahr entspricht.
Das bereinigte EBITDA des Unternehmens erreichte 2,0 Millionen US-Dollar, was eine deutliche Verbesserung gegenüber 0,9 Millionen US-Dollar im Vorjahr darstellt. Das Management konnte die allgemeinen Verwaltungs- und Betriebskosten um 2,6 Millionen US-Dollar im Vergleich zum Vorjahr senken, was Fortschritte bei den Transformationsinitiativen zeigt, die auf operative Exzellenz und finanzielle Disziplin ausgerichtet sind.
- Adjusted EBITDA increased by $1.1M year-over-year to $2.0M
- Gross margin improved by 80 basis points
- G&A expenses reduced by $2.6M compared to previous year
- None.
Insights
PetMeds' Q3 FY2025 results reveal a company in transition, with encouraging signs of operational improvement despite ongoing challenges. The
The
Under CEO Sandra Campos' leadership, PetMeds is executing a strategic pivot focused on operational excellence and financial discipline. This approach appears timely given the evolving dynamics in the pet care industry, where digital transformation and changing consumer behaviors are reshaping the competitive landscape. The company's emphasis on differentiation suggests a move toward higher-margin services and products, which could help combat margin pressure from larger competitors.
Looking ahead, key metrics to watch include:
- Customer acquisition costs and retention rates
- Digital platform performance and engagement metrics
- Progress in expanding service offerings beyond traditional medication sales
- Working capital management and cash flow generation
DELRAY BEACH, Fla., Feb. 10, 2025 (GLOBE NEWSWIRE) -- PetMed Express, Inc. dba PetMeds and parent company of PetCareRx (NASDAQ: PETS) today announced its financial results for its third quarter ended December 31, 2024.
Third Quarter Fiscal 2025 Financial Highlights
- Net sales of
$53.0 million .
- Gross margin rate of
28.1% , an increase of 80 basis points compared to the prior year period.
- Adjusted EBITDA of
$2.0 million compared to Adjusted EBITDA of$0.9 million in the prior year period.
- Continued progress on key initiatives supporting the transformation of the business.
“In just nine months, we have made significant strides in our transformation journey, and I am pleased to report that we have delivered meaningful progress across our strategic priorities. Our focused execution is already yielding results, validating our direction and setting the foundation for long-term success. For the third quarter, we achieved
This afternoon the Company will host a conference call to review the quarter’s financial results.
Time: 4:30 P.M. Eastern Time, February 10, 2025
Public call dial in (877) 407-0789 (toll free) or (201) 689-8562.
Webcast stream link: https://investors.petmeds.com for those who wish to stream the call via webcast.
Replay: Available until February 24, 2025, at 11:59 P.M Eastern Time.
To access the replay, call (844) 512-2921 (toll free) or (412) 317-6671 and enter passcode 13750886.
About PetMed Express, Inc.
Founded in 1996, PetMeds is a leader in the consumer pet healthcare sector. As a national online retailer with expert pharmacists and licenses across fifty states, PetMeds.com and PetCareRx.com deliver top branded pharmaceuticals, generics, compounded prescription medications and OTC supplements and vitamins that help pets live longer, healthier lives. Leveraging telehealth and insurance partnerships, they offer unparalleled value and convenience that enhance wellness and longevity for dogs, cats, and horses. PetMeds and PetCareRx provides essential pet health offerings through their websites, 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 for the year ended March 31, 2024. 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.
PETMEDS INVESTOR RELATIONS CONTACT
ICR, LLC
John Mills
(646) 277-1254
Reed Anderson
(646) 277-1260
investor@petmeds.com
| PETMED EXPRESS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands, except for share and per share data) | ||||||||
| December 31, 2024 | March 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 50,101 | $ | 55,296 | ||||
| Accounts receivable, less allowance for credit losses of | 2,259 | 3,283 | ||||||
| Inventories, net | 11,795 | 28,556 | ||||||
| Prepaid expenses and other current assets | 3,888 | 6,325 | ||||||
| Prepaid income taxes | 340 | 188 | ||||||
| Total current assets | 68,383 | 93,648 | ||||||
| Noncurrent assets: | ||||||||
| Property and equipment, net | 28,425 | 26,657 | ||||||
| Intangible and other assets, net | 15,035 | 16,503 | ||||||
| Goodwill | 26,658 | 26,658 | ||||||
| Operating lease right-of-use assets | 1,077 | 1,432 | ||||||
| Deferred tax assets, net | 5,217 | 4,986 | ||||||
| Total noncurrent assets | 76,412 | 76,236 | ||||||
| Total assets | $ | 144,795 | $ | 169,884 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 10,945 | $ | 37,024 | ||||
| Sales tax payable | 24,483 | 25,012 | ||||||
| Accrued expenses and other current liabilities | 10,922 | 7,060 | ||||||
| Current operating lease liabilities | 453 | 459 | ||||||
| Deferred revenue | 1,156 | 2,603 | ||||||
| Total current liabilities | 47,959 | 72,158 | ||||||
| Operating lease liabilities, net of current lease liabilities | 652 | 995 | ||||||
| Total liabilities | 48,611 | 73,153 | ||||||
| Commitments and contingencies (Note 7) | ||||||||
| Shareholders' equity: | ||||||||
| Preferred stock, $.001 par value, 5,100,000 shares authorized; 2,500 convertible shares issued and outstanding with a liquidation preference of | 9 | 9 | ||||||
| Common stock, $.001 par value, 40,000,000 shares authorized; 20,656,457 and 21,148,692 shares issued and outstanding, respectively | 21 | 21 | ||||||
| Additional paid-in capital | 17,967 | 25,146 | ||||||
| Retained earnings | 78,187 | 71,555 | ||||||
| Total shareholders' equity | 96,184 | 96,731 | ||||||
| Total liabilities and shareholders' equity | $ | 144,795 | $ | 169,884 | ||||
| PETMED EXPRESS, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except for share and per share amounts) (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 52,984 | $ | 65,317 | $ | 180,506 | $ | 214,560 | ||||||||
| Cost of sales | 38,075 | 47,434 | 130,315 | 154,089 | ||||||||||||
| Gross profit | 14,909 | 17,883 | 50,191 | 60,471 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 10,786 | 13,425 | 26,153 | 41,098 | ||||||||||||
| Advertising | 2,987 | 5,762 | 14,583 | 18,539 | ||||||||||||
| Depreciation and amortization | 1,586 | 1,770 | 4,965 | 5,161 | ||||||||||||
| Total operating expenses | 15,359 | 20,957 | 45,701 | 64,798 | ||||||||||||
| (Loss) income from operations | (450 | ) | (3,074 | ) | 4,490 | (4,327 | ) | |||||||||
| Other income: | ||||||||||||||||
| Interest income, net | 28 | 136 | 308 | 481 | ||||||||||||
| Other, net | 180 | 293 | 597 | 1,053 | ||||||||||||
| Total other income | 208 | 429 | 905 | 1,534 | ||||||||||||
| (Loss) income before provision (benefit) for income taxes | (242 | ) | (2,645 | ) | 5,395 | (2,793 | ) | |||||||||
| Provision (benefit) for income taxes | 465 | (618 | ) | 22 | (345 | ) | ||||||||||
| Net (loss) income | $ | (707 | ) | $ | (2,027 | ) | $ | 5,373 | $ | (2,448 | ) | |||||
| Net (loss) income per common share: | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | (0.10 | ) | $ | 0.26 | $ | (0.12 | ) | |||||
| Diluted | $ | (0.03 | ) | $ | (0.10 | ) | $ | 0.26 | $ | (0.12 | ) | |||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 20,634,651 | 20,425,282 | 20,581,913 | 20,380,262 | ||||||||||||
| Diluted | 20,634,651 | 20,425,282 | 20,987,260 | 20,380,262 | ||||||||||||
| Cash dividends declared per common share | $ | — | $ | — | $ | — | $ | 0.60 | ||||||||
| PETMED EXPRESS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) (Unaudited) | ||||||||
| Nine Months Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 5,373 | $ | (2,448 | ) | |||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 4,965 | 5,161 | ||||||
| Share based compensation | (7,179 | ) | 5,196 | |||||
| Deferred income taxes | (231 | ) | (436 | ) | ||||
| Bad debt expense | 324 | 53 | ||||||
| (Increase) decrease in operating assets and increase (decrease) in operating liabilities: | ||||||||
| Accounts receivable | 700 | (119 | ) | |||||
| Inventories, net | 16,761 | (12,438 | ) | |||||
| Prepaid income taxes | (152 | ) | 65 | |||||
| Prepaid expenses and other current assets | 2,437 | (2,664 | ) | |||||
| Operating lease right-of-use assets, net | 355 | 594 | ||||||
| Accounts payable | (26,078 | ) | 7,929 | |||||
| Sales tax payable | (529 | ) | (1,942 | ) | ||||
| Accrued expenses and other current liabilities | 2,756 | (1,258 | ) | |||||
| Lease liabilities | (349 | ) | (577 | ) | ||||
| Deferred revenue | (1,447 | ) | 75 | |||||
| Net cash used in operating activities | $ | (2,294 | ) | $ | (2,808 | ) | ||
| Cash flows from investing activities: | ||||||||
| Purchase of minority interest investment in Vetster | – | (300 | ) | |||||
| Acquisition of PetCareRx, net of cash acquired | – | (35,859 | ) | |||||
| Purchases of property and equipment | (2,725 | ) | (3,260 | ) | ||||
| Net cash used in investing activities | $ | (2,725 | ) | $ | (39,419 | ) | ||
| Cash flows from financing activities: | ||||||||
| Dividends paid | (176 | ) | (12,419 | ) | ||||
| Net cash used in financing activities | $ | (176 | ) | $ | (12,419 | ) | ||
| Net decrease in cash and cash equivalents | (5,195 | ) | (54,646 | ) | ||||
| Cash and cash equivalents, at beginning of period | 55,296 | 104,086 | ||||||
| Cash and cash equivalents, at end of period | $ | 50,101 | $ | 49,440 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for income taxes | $ | 474 | $ | 43 | ||||
| Dividends payable in accrued expenses and other current liabilities | $ | 32 | $ | 1,498 | ||||
| Non-cash investing activity for PPE additions | $ | 2,539 | $ | – | ||||
Non-GAAP Financial Measures
To provide investors and the market with additional information regarding our financial results, we have disclosed (see below) adjusted EBITDA, a non-GAAP financial measure that we calculate as net income excluding share-based compensation expense; depreciation and amortization; income tax provision; interest income (expense); and other non-operational expenses. We have provided reconciliations below of adjusted EBITDA to net income, the most directly comparable GAAP financial measures.
We have included adjusted EBITDA, herein, because it is a key measure used by our management and Board of Directors to evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and other expenses. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors.
We believe it is useful to exclude non-cash charges, such as share-based compensation expense, depreciation and amortization from our adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude income tax provision and interest income (expense), as neither are components of our core business operations. We also believe that it is useful to exclude other expenses, including the investment banking fee related to the Vetster partnership, acquisition costs related to PetCareRx, employee severance and estimated state sales tax accrual as these items are not indicative of our ongoing operations. Adjusted EBITDA has limitations as a financial measure, and these non-GAAP measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and adjusted EBITDA does not reflect capital expenditure requirements for such replacements or for new capital expenditures;
- Adjusted EBITDA does not reflect share-based compensation. Share-based compensation has been, and will continue to be for the foreseeable future, a material recurring expense in our business and an important part of our compensation strategy;
- Adjusted EBITDA does not reflect interest income (expense), net; or changes in, or cash requirements for, our working capital;
- Adjusted EBITDA does not reflect transaction related costs and other items which are either not representative of our underlying operations or are incremental costs that result from an actual or planned transaction and include litigation matters, integration consulting fees, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems;
- Adjusted EBITDA does not reflect certain non-operating expenses including the employee severance which reduces cash available to us;
- Adjusted EBITDA does not reflect certain expenses including the estimated state sales tax accrual which reduces cash available to us.
- Other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces the measures usefulness as comparative measures.
Because of these and other limitations, adjusted EBITDA should only be considered as supplemental to, and alongside with other GAAP based financial performance measures, including various cash flow metrics, net income, net margin, and our other GAAP results.
The following table presents a reconciliation of net income, the most directly comparable GAAP measure to adjusted EBITDA for each of the periods indicated:
| Reconciliation of Non-GAAP Measures | |||||||||||||||
| PetMed Express, Inc. | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Increase (Decrease) | ||||||||||||||
| ($ in thousands, except percentages) | December 31, 2024 | December 31, 2023 | $ | % | |||||||||||
| Consolidated Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA: | |||||||||||||||
| Net loss | $ | (707 | ) | $ | (2,027 | ) | $ | 1,320 | (65 | )% | |||||
| Add (subtract): | |||||||||||||||
| Stock-based Compensation | $ | 452 | $ | 1,708 | $ | (1,256 | ) | (74 | )% | ||||||
| Income Taxes | $ | 465 | $ | (618 | ) | $ | 1,083 | (175 | )% | ||||||
| Depreciation and Amortization | $ | 1,586 | $ | 1,770 | $ | (184 | ) | (10 | )% | ||||||
| Interest Income, Net(1) | $ | (28 | ) | $ | (136 | ) | $ | 108 | (79 | )% | |||||
| Acquisition/Partnership Transactions and Other Items | $ | 25 | $ | – | $ | 25 | n/m | ||||||||
| Employee Severance | $ | 209 | $ | – | $ | 209 | n/m | ||||||||
| Sales Tax Expense | $ | – | $ | 228 | $ | (228 | ) | (100 | )% | ||||||
| Adjusted EBITDA | $ | 2,002 | $ | 925 | $ | 1,077 | 116 | % | |||||||
| (1) Included in interest income, net is | |||||||||||||||
| Nine Months Ended | Increase (Decrease) | ||||||||||||||
| ($ in thousands, except percentages) | December 31, 2024 | December 31, 2023 | $ | % | |||||||||||
| Consolidated Reconciliation of GAAP Net Income to Adjusted EBITDA: | |||||||||||||||
| Net income (loss) | $ | 5,373 | $ | (2,448 | ) | $ | 7,821 | n/m | |||||||
| Add (subtract): | |||||||||||||||
| Stock-based Compensation | $ | (7,179 | ) | $ | 5,196 | $ | (12,375 | ) | n/m | ||||||
| Income Taxes | $ | 22 | $ | (345 | ) | $ | 367 | n/m | |||||||
| Depreciation and Amortization | $ | 4,965 | $ | 5,161 | $ | (196 | ) | (4 | )% | ||||||
| Interest Income, Net (1) | $ | (308 | ) | $ | (481 | ) | $ | 173 | (36 | )% | |||||
| Acquisition/Partnership Transactions and Other Items | $ | 205 | $ | 1,294 | $ | (1,089 | ) | (84 | )% | ||||||
| Employee Severance | $ | 663 | $ | 408 | $ | 255 | 63 | % | |||||||
| Sales Tax (Income) | $ | (1,178 | ) | $ | (1,088 | ) | $ | (90 | ) | 8 | % | ||||
| Adjusted EBITDA | $ | 2,563 | $ | 7,697 | $ | (5,134 | ) | (67 | )% | ||||||
| (1) Included in interest income, net is | |||||||||||||||
FAQ
What was PetMeds (PETS) Q3 2025 revenue?
How much did PetMeds (PETS) improve its Adjusted EBITDA in Q3 2025?
What was PetMeds (PETS) gross margin in Q3 2025?
How much did PetMeds (PETS) reduce its G&A expenses in Q3 2025?
