PetMed Express reported preliminary net sales for the second quarter of fiscal year 2026 in the range of $43.4 million to $44.5 million, a decline of roughly 25 % compared with the $58.0 million reported for the same period a year earlier. Six‑month net sales for the quarter ended September 30, 2025 were estimated at $94.5 million to $95.6 million, down from $124.3 million for the prior year period.
The company could not provide a reasonable estimate of operating income or net income for the quarter because it is still analyzing a potential goodwill impairment charge. In contrast, the prior quarter (Q2 FY2025) produced a net income of $2.3 million ($0.11 per diluted share), while the fourth quarter of fiscal year 2025 ended with a net loss of $6.3 million. The lack of profitability guidance underscores the uncertainty surrounding the impairment assessment.
PetMed Express ended the reporting period with $36.1 million in cash and no debt. The company also filed a Form 12b‑25 with the SEC, confirming that it was unable to submit its Q1 and Q2 10‑Q reports within the required timeframe. Nasdaq issued a non‑compliance notice on November 12, 2025, citing the delayed filings under Listing Rule 5250(c)(1). PetMed Express must submit an updated plan to regain compliance by November 28, 2025, and is expected to file the missing reports as soon as possible.
Management highlighted that the revenue decline is largely driven by a deliberate reduction in marketing spend aimed at improving profitability. CEO Sandra Campos noted that the company is focusing on high‑margin product assortments and core marketing initiatives while continuing to evaluate the goodwill impairment. The company’s audit committee is investigating revenue recognition practices and a customer coupon promotion that may have contributed to the reporting delays.
The broader market context shows a persistent revenue decline for PetMed Express, with trailing‑twelve‑month revenue falling 17.2 % and analysts forecasting a 12 % drop for fiscal year 2026. The company’s “Sell” consensus rating and low price target reflect concerns about its ability to reverse the sales trend and resolve the filing issues.
PetMed Express faces a challenging near‑term outlook. The company must address the SEC filing delays, complete the goodwill impairment analysis, and implement its cost‑control strategy to stabilize earnings. Without a clear path to regain Nasdaq compliance and reverse the revenue decline, the company’s long‑term prospects remain uncertain.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.