Sign in

You're signed outSign in or to get full access.

PE

PETMED EXPRESS INC (PETS)·Q2 2026 Earnings Summary

Executive Summary

  • PETS preannounced Q2 FY2026 net sales of $43.4–$44.5M, down sharply from $58.0M (restated) in the prior-year quarter; the company could not provide operating income or EPS due to an ongoing goodwill impairment analysis .
  • The quarter lacked a full earnings release and call as PETS remains delinquent on its Q1 and Q2 10-Q filings; Nasdaq issued a non-compliance notice with a Dec 29, 2025 outside date to regain compliance, though the notice has no immediate effect on listing .
  • Balance sheet liquidity remains adequate with $36.1M cash and no debt at quarter-end (9/30/25), though cash declined from $54.7M at FY25 year-end (3/31/25) amid operational pressure and reporting delays .
  • Street context: Q2 FY2026 EPS consensus was $0.04 (1 estimate), but revenue consensus was unavailable and the company provided no EPS due to impairment-related uncertainty, limiting beat/miss assessment for the period (S&P Global).*

What Went Well and What Went Wrong

What Went Well

  • Liquidity and leverage: PETS ended Q2 with $36.1M in cash and no debt, preserving balance sheet flexibility despite operating headwinds .
  • Governance refresh: The Board appointed former Deloitte partner James LaCamp as Director and Audit Committee Chair, reinforcing financial oversight and internal control focus .
  • Process milestone: The company completed and filed the FY2025 10-K in October, providing audited financials and clarity on restatements and impairment, a prerequisite to normalizing quarterly reporting .

What Went Wrong

  • Top-line contraction: Q2 net sales fell to $43.4–$44.5M vs. $58.0M (restated) a year ago; six-month sales declined to $94.5–$95.6M vs. $124.3M (restated), indicating sustained demand and/or competitive pressure .
  • Reporting disruption and compliance risk: PETS was unable to file its Q1 and Q2 10-Qs on time; Nasdaq issued a non-compliance notice with a Dec 29, 2025 backstop for regaining compliance, creating near-term listing risk if filings slip further .
  • Profitability opacity: Management could not estimate operating income or net income due to the timing and amount of an anticipated goodwill impairment charge, limiting transparency and preventing typical EPS/margin analysis .

Financial Results

Summary vs. Prior Periods (oldest → newest)

MetricQ3 FY2025 (12/31/24)Q4 FY2025 (3/31/25, prelim)Q1 FY2026 (6/30/25)Q2 FY2026 (9/30/25, prelim)
Net Sales ($USD Millions)$53.0 $51.1–$53.1 Not reported (10-Q delinquent) $43.4–$44.5
Diluted EPS ($)$(0.03) N/A (not provided) Not reported (10-Q delinquent) N/A (pending impairment analysis)
Gross Margin (%)28.1% N/A Not reported N/A
Adjusted EBITDA ($USD Millions)$2.0 N/A Not reported N/A
Cash & Equivalents ($USD Millions, period-end)$50.1 $54.7 N/A$36.1

Notes: Prior-year Q2 FY2025 net sales restated to $58.0M for comparability . FY2025 10-K reported FY net sales of $227.0M and a $6.3M net loss, reflecting revenue reclassification and a non-cash intangible impairment .

Q2 FY2026 Actual vs. Consensus

MetricActual (Prelim)ConsensusSurprise
Revenue ($USD Millions)$43.4–$44.5 N/A*N/A
Diluted EPS ($)N/A (not provided due to impairment analysis) $0.04 (1 est.)*N/A

*Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating Income / Net IncomeQ2 FY2026N/ACompany unable to estimate due to anticipated goodwill impairment analysis Maintained “no guidance”/no estimate
Earnings Call CadenceFY2026N/ACalls to resume promptly once SEC filings are current Update on timing framework
Nasdaq Listing Compliance2025 deadlinesN/AMust regain compliance by Dec 29, 2025; plan update due Nov 28, 2025; no immediate listing effect New compliance timeline disclosed

No formal revenue, margin, OpEx, tax, or dividend guidance was issued in Q2 materials .

Earnings Call Themes & Trends

There was no Q2 FY2026 earnings call or transcript due to delayed filings and a stated plan to resume calls once current .

TopicPrevious Mentions (Q-2 ≈ Q4 FY2025)Previous Mentions (Q-1 ≈ Q1 FY2026)Current Period (Q2 FY2026)Trend
Reporting cadence & controlsAudit Committee investigating Q4 FY2025 hotline reports (revenue recognition timing, $50 coupon KPI impact, culture/control environment) No call; Q1 10‑Q delinquent Q1 and Q2 10‑Qs delinquent; calls to resume after filings current Improving governance, near-term disruption
Profitability visibilityPreliminary Q4 FY2025 net loss estimated; tax valuation allowance impact No call; visibility limited No Q2 OI/NI due to pending goodwill impairment analysis Weaker near term
Governance & oversight10‑K targeted; remediation and process enhancements —Added Audit Chair with deep audit/internal control background Improving oversight
Commercial KPIsHotline items referenced potential KPI impact from promotions —No KPI disclosure with Q2 prelim Unclear
Liquidity & capital$54.7M cash at FY25 end —$36.1M cash; no debt Adequate but declining

Management Commentary

  • “With our Form 10-K for fiscal 2025 now filed and actions taken to enhance our internal processes, we can now fully dedicate our efforts to operational execution and building a platform for long-term value creation... We now plan to file, as soon as practicable, our Quarterly Report on Form 10-Q for the first quarter ended June 30, 2025, followed by... the second quarter... and thereby resume the normal quarterly reporting schedule.” — Leslie C. G. Campbell, Chair & Interim CEO .
  • “In just nine months, we have made significant strides in our transformation journey... For the third quarter, we achieved $2 million in Adjusted EBITDA... while successfully reducing G&A expenses by $2.6 million compared to last year.” — Sandra Campos, CEO & President (Q3 FY2025) .

Q&A Highlights

  • No Q&A this quarter due to absence of an earnings call. Management indicated earnings calls will resume once SEC filings are current .

Estimates Context

  • Q2 FY2026 consensus EPS: $0.04 (1 estimate); revenue consensus unavailable at time of analysis; the company did not provide EPS due to impairment analysis, preventing a like-for-like comparison to consensus (S&P Global).*
  • Given the significant revenue decline vs. prior year and lack of profit disclosure, Street models will likely reduce near-term revenue run-rate assumptions and widen loss/trim margin expectations until visibility improves .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue contraction accelerated in Q2 with preliminary net sales of $43.4–$44.5M vs. $58.0M a year ago; visibility on profitability is limited by an impending goodwill impairment analysis .
  • Compliance clock: PETS must update Nasdaq on its plan by Nov 28 and regain compliance by Dec 29, 2025; timely Q1 and Q2 10‑Q filings are critical to derisk listing status near-term .
  • Liquidity remains a cushion (cash $36.1M; no debt), but cash trended lower from $54.7M at FY25 year-end; investors should monitor cash burn and working capital dynamics as filings catch up .
  • Governance trajectory is improving with an experienced Audit Chair and completed 10‑K, but operational execution and restoration of normal reporting cadence are the next catalysts .
  • Until filings are current and a call resumes, estimate uncertainty is elevated; traders should expect headline sensitivity to filing timing, impairment magnitude, and any restatement impacts .
  • Longer term, stabilization depends on restoring growth in core Rx/OTC categories and rebuilding customer KPIs post-promotion issues identified by the Audit Committee investigation (Q4 FY2025 context) .

Appendix: Source Documents

  • Q2 FY2026 preliminary results and Nasdaq notice (8‑K and press release), Nov 13, 2025 .
  • FY2025 10‑K press release, Oct 14, 2025 .
  • Board/Audit Chair appointment press release, Oct 20, 2025 .
  • Q4 FY2025 preliminary results press release and 8‑K, Jun 16, 2025 .
  • Update on 10‑K timing and Audit Committee investigation scope, Jul 1, 2025 .
  • Q3 FY2025 results press release and 8‑K, Feb 10, 2025 .