PETS

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 4:30 p.m. ET Chairman and Interim Chief Executive Officer and President - Leslie C. G. Campbell Interim Principal Financial Officer and Chief Accounting Officer - Doug Krulik Need a quote from a Motley Fool analyst? Email [email protected] Operator: Greetings. And welcome to the PetMed Express, Inc. Q1 27 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. It is now my pleasure to introduce your host, Reed Anderson with ICR. You may begin. Reed Anderson: Thank you, and welcome to the PetMed Express Fiscal First Quarter 27 Earnings Conference Call. With us on the call today are Leslie C. G. Campbell, PetMed's Chairman and Interim CEO and President and Doug Krulik, Interim Principal Financial Officer and Chief Accounting Officer. Certain information included during this call may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2000 and the Securities Exchange Act of 1.93 thousand as amended that may involve a number of risks and uncertainties. These statements are based on our beliefs, as well as assumptions we have used based upon information currently available to us. Because these statements reflect our current views concerning future events, these statements involve risks, uncertainties and assumptions. Actual results could differ materially from those projected. There can be no assurance that any forward looking results will occur or be realized. And nothing contained in this presentation is or should be relied upon as a representation or warranty as to any future matter, including any matter in respect of the operations or business or financial condition of PetMeds. PetMeds undertakes no obligation to update publicly these forward looking statements based on subsequent events, except as may be required by applicable law, regulation, or other competent legal authority. We have identified various risk factors associated with our operations, in our most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission. Now let me turn the call over to Leslie C. G. Campbell, PetMed's Chairman, Interim CEO and President. Leslie C. G. Campbell: Thank you, Reed, and welcome to everyone on our call this afternoon. Following my opening remarks, Doug will provide a detailed overview of our financial results. In this first quarter, we continued to build on the operational and financial foundation we began transforming last year. With a significant focus on enhancing shareholder value optimizing our capital allocation, streamlining our cost structure, developing new revenue streams, improving our customer retention, while efficiently gaining access to new customers, modernizing our technology infrastructure, enhancing our customer service capabilities, and speeding up deliveries to our customers. While the direct to consumer pet health landscape remains intensely competitive, our focus is single-minded. Driving long term shareholder value and establishing a direct clear path back to sustainable profitability. To that end, our Board continues to evaluate all capital allocation and strategic priorities with complete discipline. While we believe we are implementing the strategy and taking the actions necessary, to enhance shareholder value, our board and management team remain open to considering any opportunities that have the potential to enhance value for all PetMed's shareholders. With respect to revenue growth, and customer acquisition initiatives, we are diversifying our customer acquisition funnel beyond relying on traditional advertising and media channels which continue to become more expensive. For example, key strategic initiatives such as our first white label pharmacy offering, are reaching in store shoppers and bringing them online. Leveraging the technology and infrastructure work we completed during Q4 and into the current quarter, we believe we are beginning to see the benefits of these investments show up in our day to day operations. Our new call center platform launched in June has helped us handle customer inquiries and sales more efficiently. And our new fraud prevention system launched in Q4 continues to protect the business as order volumes evolve. During Q1, we completed a comprehensive process to upgrade our enterprise resource planning system, our ERP system, And in May, we successfully rolled out SAP as our ERP system enterprise wide. Further modernizing and strengthening our financial and reporting processes, and representing the completion of 1 of the largest elements of our technology transformation initiative as we continue to replace legacy platforms. We also recently entered into a new freight agreement that both mitigates proposed cost increases from a previous carrier and provides faster and more trackable service especially to our West Coast customers who may now receive their orders up to 2 days faster. We believe that speeding up deliveries to our customers will significantly enhance their customer experience and customer satisfaction, and lead to higher customer retention rates. All these ongoing technology and operational initiatives are creating a stronger foundation for a more scalable, efficient organization going forward. Before we move on to the first quarter results, I would like to update you on 2 current topics. First, in a press release that we issued on June 30, we acknowledged receipt of an unsolicited and conditional proposal from Silver Cape Investments to acquire all the outstanding shares of the company's stock for $3 per share in cash. Based on communications to date with SilverCape, the Board has not yet reached any determination regarding Silver Cape's proposal. And there is no assurance that any transaction will result. As stated in our June 30, 2026, press release, the company does not intend to comment further unless and until it determines that additional disclosure is appropriate or required. Secondly, regarding the search for a permanent CEO, the board is continuing this search with the assistance of a global executive search firm. Recruiting for this role, a person firmly committed to driving long term shareholder value and establishing a direct clear path back to sustainable profitability remains a high priority for our board. Turning now to first quarter results. In Q1, we are pleased to see that sales have stabilized sequentially over the past several quarters. Although the year over year decline of 19.9% in first quarter net sales reflects continued softness in prescription medication sales. Our net loss for the first quarter narrowed significantly to $6.1 million compared to a net loss of $34.2 million in the same period last year. Reflecting our disciplined focus on managing operating costs as well as the absence of a noncash goodwill impairment charge. General and administrative expenses declined nearly 14% year over year reflecting lower professional fees. And advertising expenses declined 30% reflecting lower gross media spend and the selective elimination of several unproductive high cost programs. At the same time, our recurring net sales which include auto ship and membership related revenue, grew to 61.5% of total gross sales, up from 57.6% a year ago, underscoring the strength of our subscription driven customer base. I also want to call out our continued improvement around customer acquisition. During the first quarter, we acquired approximately 70 thousand new customers and this metric has been trending upward over the past several quarters. In addition, we reduced our cost of acquiring a new customer by 15% in the first quarter. To $60 compared to $71 in the same period last year. This meaningful improvement was driven by our ongoing advertising and media spend optimization, including the selective elimination of unproductive media spend and other strategic reductions in marketing costs. We see this improvement as an encouraging sign that our marketing investments are becoming more efficient even as the broader advertising environment remains competitive. As we continue to focus on improving our customer acquisition and lowering our customer acquisition costs, I am also pleased to share that in July, we officially launched our new co-branded online pharmacy offering with Rural King, giving Rural King's customers across more than 150 stores in 17 states convenient access to pet medications, prescription food, preventatives, and auto ship services through a platform powered by PetMeds. This partnership, which we announced in April, represents our first large scale white label pharmacy program. And we believe it is an important proof point for our strategy to efficiently grow our customer acquisition reach including by converting in store shoppers into online customers, and developing new revenue streams by putting our pharmacy infrastructure licensed pharmacists, ecommerce capabilities, and 30 years of expertise to work for our partners. In Rural King's case, particularly in the rural communities that they serve, where access to veterinary care and pet medications can be limited. We are proud of what this partnership represents in terms of future opportunities to efficiently gain access to new customers and develop new revenue streams, and we look forward to announcing the extension of our white label offering to additional partners in the near future. Turning to capital allocation, on July 23, we announced that we had entered into a definitive agreement for a sale-leaseback of our headquarters and distribution center buildings here in Delray Beach, Florida, for an aggregate purchase price of $37 million Under the agreement, we will lease back the portion of the property housing our offices in Florida distribution center under a 10-year lease with subsequent renewal options allowing us to continue operating out of the headquarters that has been home to PetMeds for the past decade. We expect this transaction to close within approximately 120 days from the date of the definitive agreement. Subject to a due diligence period, negotiation of the definitive lease agreement, and other customary closing conditions. We see this transaction as a strategic next step in our ongoing commitment to sharpen our focus on our core pharmacy business, strengthen our balance sheet and optimize our asset base by unlocking the value of our real estate, in turn, providing us with additional financial flexibility to continue investing in the initiatives with the greatest potential to drive shareholder returns. Looking ahead, the financial, operational, commercial and cultural improvements we have implemented over the past 12 months, our strategic initiatives and partnerships, and our more disciplined approach to expense management and capital allocation have dramatically improved our foundation, and they position us well for the future as we seek to drive long-term shareholder value and establish a direct clear path back to sustainable profitability. We will continue to focus on operational excellence as a competitive pillar and core driver for sustainable long term results and delivering value for shareholders. By leveraging our modernized technology and other operational initiatives, we can build on our exceptional service levels and improve customer retention. In addition, we continue leaning into our pet pharmacy expertise and infrastructure to expand B2B relationships through membership programs, and our white label fulfillment services to extend our reach to more customers. We remain deeply committed to our mission of ensuring pets live longer healthier and happier lives, and we are focused on delivering value for our shareholders through this disciplined execution of our strategic priorities. With that, I will turn the call over to Doug Krulik for a more detailed review of our financial results for the first quarter. Doug Krulik: Thank you, Leslie. Net sales for the first quarter were $41 million compared to $51.2 million in the same period last year, representing a third consecutive quarter of revenue stabilization above $40 million although a 19.9% year-over-year decline primarily driven by decline in prescription medication sales partially offset by lower consumer promotional usage. Gross profit was $11.3 million compared to $14.4 million last year. As a percent of sales, gross profit this year was 27.6% compared to 28.1% in the prior year. Primarily reflecting lower manufacturer rebates as a percentage of sales partially offset by lower freight costs per order. General and administrative expenses were $11.2 million compared to $12.9 million last year. A 13.5% decrease. This year over year improvement was driven by lower professional fees, share based compensation, and severance costs. Advertising expenses were $4.2 million compared to $6 million last year. A decrease of 30.2%, reflecting lower gross media spend and the elimination of unproductive media. Depreciation and amortization was $2.1 million compared to $2.3 million in the prior year period. Net loss for the first quarter was $6.1 million or $0.28 per diluted share compared to a net loss of $34.2 million or $1.65 per diluted share for the same period last year. This decrease in net loss was primarily driven by the absence of last year's goodwill and trade name impairment charge. And, to a lesser extent, lower general and administrative and advertising expenses partially offset by lower gross profit resulting from decreased net sales. Adjusted EBITDA loss was $3.4 million compared to a loss of $2.7 million in the prior year period. Turning to our balance sheet, As of June 30, 2026, we had $13.1 million in cash and cash equivalents and no debt. With that, I will turn the call back to Leslie for closing remarks. Leslie C. G. Campbell: Thank you all for your time today and your interest in PetMeds. We are very grateful for the support of all of our shareholders and have appreciated the opportunity to communicate with many of you at different times throughout this quarter. I also want to thank our employees as always for how they bring their passion for our customers to life in their work every day. And finally, we always want to thank our loyal customers and their veterinarians who trust us to be part of helping pets live longer healthier, happier lives. Thank you again for allowing us to share these first quarter results with you. We look forward to updating you on our progress next quarter. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines, and have a wonderful day. Before you buy stock in PetMed Express, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PetMed Express wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. PetMed Express (PETS) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net loss narrowed significantly to $6.1 million from $34.2 million year-over-year, driven by cost discipline and absence of goodwill impairment. Recurring net sales (AutoShip and membership) grew to 61.5% of total gross sales, up from 57.6% a year ago, showing strong subscription-driven customer base. Customer acquisition improved: acquired ~70,000 new customers in Q1, with cost per new customer down 15% to $60 from $71. Launched first white-label pharmacy partnership with Rural King, expanding customer reach and creating new revenue streams. Completed SAP ERP system rollout and new call center platform, modernizing technology infrastructure for scalability and efficiency. Entered new freight agreement providing faster deliveries (up to two days faster to West Coast), enhancing customer experience and retention. Announced sale-leaseback of headquarters and distribution center for $37 million, strengthening balance sheet and providing financial flexibility. Net sales declined 19.9% year-over-year to $41 million, reflecting continued softness in prescription medication sales. Gross profit margin decreased to 27.6% from 28.1%, due to lower manufacturer rebates as a percentage of sales. Adjusted EBITDA loss widened to $3.4 million from $2.7 million in the prior year. Company still operating at a net loss, with no clear timeline for returning to sustainable profitability. Intense competition in the direct-to-consumer pet health landscape persists, pressuring revenue growth. Uncertainty regarding SilverCape Investments' unsolicited acquisition proposal, creating potential distraction and strategic ambiguity. CEO search remains ongoing, with interim leadership in place, which may hinder long-term strategic execution. Warning! GuruFocus has detected 4 Warning Signs with PETS. Is PETS fairly valued? Test your thesis with our free DCF calculator. Q: What were the key drivers behind the company's narrowed net loss in Q1 2027, and how did revenue performance compare to expectations?A: Leslie Campbell, Chairman and Interim CEO, and Doug Krulik, Interim Principal Financial Officer, reported that the net loss narrowed significantly to $6.1 million from $34.2 million in the prior year, primarily due to the absence of a non-cash goodwill impairment charge and disciplined cost management. Net sales declined 19.9% year-over-year to $41 million, reflecting continued softness in prescription medication sales, though this marked the third consecutive quarter of revenue stabilization above $40 million. Q: Can you provide details on the company's customer acquisition trends and the effectiveness of its marketing spend?A: Leslie Campbell highlighted that the company acquired approximately 70,000 new customers in Q1, with the metric trending upward over recent quarters. The cost of acquiring a new customer decreased by 15% to $60, down from $71 in the prior year, driven by optimized advertising spend and the elimination of unproductive media programs. Advertising expenses fell 30.2% year-over-year to $4.2 million. Q: What is the status of the unsolicited acquisition proposal from SilverCape Investments, and how is the Board handling it?A: Leslie Campbell acknowledged receipt of a non-binding, conditional proposal from SilverCape Investments to acquire all outstanding shares for $3 per share in cash. The Board has not yet reached a determination regarding the proposal, and there is no assurance any transaction will result. The company stated it will not comment further unless additional disclosure is deemed appropriate or required. Q: How is the company's white-label pharmacy partnership with Rural King progressing, and what impact is it expected to have?A: Leslie Campbell announced the official launch of the co-branded online pharmacy offering with Rural King in July, providing access to pet medications and AutoShip services across more than 150 stores in 17 states. This represents the company's first large-scale white-label program, aimed at converting in-store shoppers into online customers and developing new revenue streams. The company expects to announce additional white-label partners in the near future. Q: What is the strategic rationale behind the sale-leaseback of the company's headquarters and distribution center?A: Leslie Campbell explained that the company entered into a definitive agreement for a sale-leaseback of its Delray Beach, Florida properties for $37 million. The transaction, expected to close within approximately 120 days, will unlock real estate value, strengthen the balance sheet, and provide additional financial flexibility to invest in high-potential initiatives. The company will continue operating under a 10-year lease with renewal options. Q: Can you elaborate on the technology and operational improvements implemented during the quarter?A: Leslie Campbell detailed the successful enterprise-wide rollout of SAP as the company's ERP system in May, completing a major element of its technology transformation. Additionally, a new call center platform launched in June has improved customer inquiry handling, and a new fraud prevention system continues to protect operations. A new freight agreement also mitigates cost increases and speeds up deliveries, particularly to West Coast customers. Q: How did the company's recurring revenue streams perform, and what does this indicate about customer retention?A: Leslie Campbell noted that recurring net sales, including AutoShip and membership-related revenue, grew to 61.5% of total gross sales, up from 57.6% a year ago. This underscores the strength of the subscription-driven customer base and reflects ongoing efforts to improve customer retention through enhanced service levels and faster delivery options. Q: What were the primary drivers of the year-over-year decline in gross profit and gross margin?A: Doug Krulik reported that gross profit decreased to $11.3 million from $14.4 million, with gross margin slightly declining to 27.6% from 28.1%. The decrease was primarily due to lower manufacturer rebates as a percentage of sales, partially offset by lower freight costs per order, reflecting the company's focus on cost efficiency. Q: What is the company's current balance sheet position, and how does it plan to use its cash?A: Doug Krulik confirmed that as of June 30, 2026, the company had $13.1 million in cash and cash equivalents with no debt. The company plans to use its financial flexibility, including proceeds from the sale-leaseback, to invest in strategic initiatives with the greatest potential to drive shareholder returns and support its path back to sustainable profitability. Q: What is the status of the search for a permanent CEO, and what qualities is the Board seeking?A: Leslie Campbell stated that the Board is continuing its search with the assistance of a global executive search firm. The priority is to recruit a leader firmly committed to driving long-term shareholder value and establishing a direct, clear path back to sustainable profitability, aligning with the company's strategic objectives. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting from traditional, increasingly expensive advertising channels toward a diversified customer acquisition funnel, including new B2B and white-label pharmacy offerings. Revenue has stabilized sequentially for three consecutive quarters, though year-over-year declines persist due to continued softness in the prescription medication category. The company successfully completed a major technology overhaul, including an enterprise-wide SAP ERP rollout and a new call center platform to improve operational scalability. Customer acquisition efficiency improved significantly, with a 15% reduction in acquisition costs driven by the elimination of unproductive, high-cost media programs. Strategic logistics improvements, including a new freight agreement, have shortened delivery times by up to 2 days for West Coast customers to enhance retention. The business is shifting toward a more predictable revenue model, with recurring sales from auto-ship and memberships now representing 61.5% of total gross sales. Management is aggressively streamlining the cost structure, evidenced by a 14% reduction in G&A and a 30% reduction in advertising spend to establish a path to profitability. The July launch of the Rural King co-branded pharmacy serves as a primary proof point for a broader strategy to convert in-store shoppers into online customers. Management expects to announce additional white-label pharmacy partnerships in the near future to further leverage their existing pharmacy infrastructure and expertise. The pending $37 million sale-leaseback of the Delray Beach headquarters is intended to unlock real estate value and provide financial flexibility for core business investments. The Board is actively searching for a permanent CEO focused on long-term shareholder value and a sustainable path to profitability. Future margin improvements are expected to be supported by modernized technology platforms that replace legacy systems and reduce manual inefficiencies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The company acknowledged an unsolicited $3 per share cash acquisition proposal from Silver Cape Investments, though no determination has been reached. Net loss narrowed significantly to $6.1 million, primarily due to the absence of a $34.2 million non-cash goodwill impairment charge recorded in the prior year. A new 10-year lease agreement will be established following the sale of the headquarters, ensuring operational continuity while strengthening the balance sheet. Gross profit margins were pressured by lower manufacturer rebates, though partially offset by reduced freight costs per order.

PetMed Express, Inc. PETS reported first-quarter fiscal 2027 results, with both the top and bottom lines missing the Zacks Consensus Estimate. Sales also declined year over year, while loss per share narrowed. PetMed Express reported a loss of 28 cents per share compared with $1.65 per share in the prior-year quarter. The improvement in net loss was primarily driven by the absence of the prior-year goodwill and trade name impairment charges, along with lower general and administrative and advertising expenses. These benefits were partly offset by lower gross profit. PetMed Express, Inc. price-consensus-eps-surprise-chart | PetMed Express, Inc. Quote Net sales declined 19.9% year over year to $41 million from $51.2 million, primarily due to continued softness in prescription medication sales, partly offset by lower consumer promotional usage. Recurring net sales, which include AutoShip and membership-related revenue, accounted for 61.5% of total gross sales, up from 57.6% in the prior-year quarter. The company acquired approximately 70,000 new customers during the quarter while lowering its customer acquisition cost by 15% year over year to $60 from $71. The improvement reflected more efficient advertising and media spending, including the elimination of unproductive media programs. Gross profit declined 21.3% year over year to $11.3 million from $14.4 million, mainly due to lower manufacturer rebates as a percentage of sales, partly offset by lower net freight costs per order. General and administrative expenses decreased 13.5% year over year to $11.2 million from $12.9 million, reflecting lower professional fees, share-based compensation and severance costs. Advertising expenses fell 30.2% year over year to $4.2 million from $6 million, primarily due to lower gross media spending and the elimination of unproductive media. Total operating expenses declined 63.8% year over year to $17.6 million from $48.5 million, largely because the prior-year period included a $27.3 million goodwill and intangible-asset impairment charge. The company reported an operating loss of $6.2 million compared with $34.1 million in the year-ago quarter. Adjusted EBITDA loss widened to $3.4 million from $2.7 million in the prior-year period. PetMeds continues to focus on improving customer acquisition while lowering acquisition costs. In July, the company launched its co-branded online pharmacy offering with Rural King, giving customers across more than 150 stores in 17 states access to pet medications, prescription food, preventatives and AutoShip services through a platform powered by PetMeds. As its first large-scale white-label pharmacy program, the partnership is designed to broaden PetMeds’ customer reach, bring in-store shoppers online and create additional revenue streams by utilizing its pharmacy infrastructure, licensed pharmacists and e-commerce capabilities. Management also said it expects to extend the white-label offering to additional partners in the near future. PetMed Express ended the quarter with cash and cash equivalents of $13.1 million compared with $21.4 million at March 31, 2026. The company had no debt as of June 30, 2026. Net cash used in operating activities was $7.7 million compared with $12.3 million in the prior-year period. Capital expenditures totaled roughly $0.6 million, down from $1.3 million a year earlier. The company entered into a definitive agreement to sell its headquarters and distribution center buildings in Delray Beach, FL, through a sale-leaseback transaction valued at $37 million. It will lease back the portion of the property housing its offices and Florida distribution center under a 10-year lease with renewal options. The transaction is expected to close within approximately 120 days from the date of the definitive agreement, subject to due diligence, lease negotiations and other customary closing conditions. This Zacks Rank #3 (Hold) company has strengthened its operating foundation through financial, operational and commercial improvements implemented over the past 12 months, along with strategic partnerships and a more disciplined approach to expense management and capital allocation. Management plans to build on these improvements as the company works toward sustainable profitability and long-term shareholder value. By leveraging its modernized technology and operational initiatives, the company aims to build on its service capabilities while improving customer retention. It is also leveraging its pet pharmacy expertise and infrastructure to strengthen B2B relationships through membership programs and white-label fulfillment services, helping extend its reach to more customers. The company’s shares have lost 9.5% over the past three months against the industry’s growth of 2.8%. Image Source: Zacks Investment Research Some better-ranked stocks have been discussed below: Central Garden & Pet Company CENT produces and distributes various products for the lawn and garden and pet supplies markets in the United States. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for CENT’s current financial-year sales implies a decline of 4.8%, and the same for earnings implies growth of 7% from the year-ago reported numbers. CENT delivered a trailing four-quarter earnings surprise of 41.8%, on average. Globe E-Online Ltd. GLBE provides a direct-to-consumer cross-border e-commerce platform in Israel, the United Kingdom, the United States and internationally. At present, GLBE carries a Zacks Rank of 2. The Zacks Consensus Estimate for GLBE’s current fiscal-year sales and earnings indicates growth of 29.8% and 187.2%, respectively, from the year-ago figures. GLBE delivered a trailing four-quarter earnings surprise of 12.6%, on average. Amazon.com Inc. AMZN engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.  At present, Amazon carries a Zacks Rank of 2. The consensus estimate for Amazon’s current fiscal-year sales and earnings implies growth of 15.7% and 82.2%, respectively, from the year-ago figures. AMZN delivered a trailing four-quarter earnings surprise of 5.5%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PetMed Express, Inc. (PETS) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Central Garden & Pet Company (CENT) : Free Stock Analysis Report Global-e Online Ltd. (GLBE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DELRAY BEACH, Fla., Aug. 13, 2026 (GLOBE NEWSWIRE) -- PetMed Express, Inc. dba PetMeds and parent company of PetCareRx (NASDAQ: PETS) today announced its financial results for its first quarter ended June 30, 2026. Quarterly Highlights Net sales demonstrated sequential quarterly stabilization. For the first quarter ended June 30, 2026, net sales were $41.0 million compared to $51.2 million for the prior year period, a decrease of 19.9%, as lower consumer promotional usage was more than offset by a decline in prescription medication sales. Net loss for the quarter ended June 30, 2026, was $6.1 million, or $(0.28) per diluted share, compared to a net loss of $34.2 million, or $(1.65) per diluted share, for the prior year period. The decrease in net loss was primarily driven by the absence of the prior-year goodwill and trade name impairment charges and to a lesser extent lower general and administrative expenses and advertising expenses. These favorable factors were partially offset by lower gross profit primarily driven by lower manufacturer rebates as a percentage of sales, partially offset by lower net freight costs per order. Adjusted EBITDA1 was $(3.4) million compared to $(2.7) million in the prior year period. “Our first quarter results reflect continued progress toward our goal of establishing a direct, clear path back to sustainable profitability,” said Leslie Campbell, Chairman and Interim CEO and President of PetMeds. “We are pleased that net sales have stabilized sequentially over the past several quarters, and we continued to make our marketing spend more efficient, acquiring 70,000 new customers while reducing our cost of acquiring a new customer by 15% year-over-year. At the same time, disciplined expense management drove a nearly 14% reduction in general and administrative expenses. We also completed one of the largest milestones in our technology transformation with the enterprise-wide rollout of our new SAP ERP system, further modernizing and strengthening our financial systems and reporting processes. And with our recently announced sale-leaseback transaction, we took an important step toward strengthening our balance sheet and enhancing our financial flexibility to invest in the initiatives with the greatest potential to drive shareholder returns.” Earnings Webcast A webcast reviewing financial results for the first quarter fiscal year ended June 30, 2026 is available at the “News & Events” section of the Company’s investor relations website at https://investors.petmeds.com/News--Events/events-and-presentations/default.aspx. About PetMed Express, Inc. Founded in 1996, PetMeds is a pioneer in the direct-to-consumer pet healthcare sector. As a trusted national online pharmacy, PetMeds is licensed across all 50 states and staffed with expert pharmacists dedicated to supporting pet wellness, pets and pet parents, and the veterinarians who serve them. Through its PETS family of brands and through its PetCareRx subsidiary, the Company offers a comprehensive range of pet health solutions – including top-brand and generic pharmaceuticals, compounded medications, and better-for-your-pet OTC supplements and nutrition. Focused on value, convenience, and care, PetMeds and PetCareRx empower pet parents to help their dogs, cats, and horses live longer, healthier lives. To learn more, visit 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 to be filed for the year ended March 31, 2026. 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. Investor Contact:ICR, LLCReed Anderson(646) [email protected] 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 (benefit), depreciation and amortization; income tax provision, interest income (expense), and other non-operational expenses. We have provided reconciliations below of net (loss) income to adjusted EBITDA, 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 (benefit) and 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 non-operational expenses, employee severance, impairment of goodwill and intangible assets, and interest expense relating to an estimated unremitted prior 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 net 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 non-operating expenses (income) including sales tax expense (income) relating to recording a liability for sales tax we did not collect from our customers; 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 loss, the most directly comparable GAAP measure to Adjusted EBITDA for each of the periods indicated: ________________________________________1 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

Commerce.com (CMRC) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.13, delivering a surprise of +18.18%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Commerce.com, which belongs to the Zacks Internet - Commerce industry, posted revenues of $84.51 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.77%. This compares to year-ago revenues of $84.43 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Commerce.com shares have lost about 17.2% since the beginning of the year versus the S&P 500's gain of 12.8%. While Commerce.com has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Commerce.com was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.10 on $88.36 million in revenues for the coming quarter and $0.41 on $353.54 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, PetMed (PETS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This pet pharmacy company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +135.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PetMed's revenues are expected to be $51.68 million, up 1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Commerce.com, Inc. (CMRC) : Free Stock Analysis Report PetMed Express, Inc. (PETS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

eBay (EBAY) came out with quarterly earnings of $1.6 per share, beating the Zacks Consensus Estimate of $1.51 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.96%. A quarter ago, it was expected that this e-commerce company would post earnings of $1.58 per share when it actually produced earnings of $1.66, delivering a surprise of +5.06%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. eBay, which belongs to the Zacks Internet - Commerce industry, posted revenues of $3.13 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.85%. This compares to year-ago revenues of $2.73 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. eBay shares have added about 25.8% since the beginning of the year versus the S&P 500's gain of 13%. While eBay has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for eBay was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.43 on $2.99 billion in revenues for the coming quarter and $6.08 on $12.2 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. PetMed (PETS), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This pet pharmacy company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of +135.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PetMed's revenues are expected to be $51.68 million, up 1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report eBay Inc. (EBAY) : Free Stock Analysis Report PetMed Express, Inc. (PETS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DELRAY BEACH, Fla., July 23, 2026 (GLOBE NEWSWIRE) -- PetMed Express, Inc., dba PetMeds and parent company of PetCareRx (Nasdaq: PETS), today announced that it has entered into a definitive agreement for a sale-leaseback transaction (“Transaction”) with an institutional real estate investor involving the Company’s headquarters and distribution center buildings in Delray Beach, FL, for an aggregate purchase price of $37 million. The Transaction is subject to a due diligence period and satisfaction of certain customary closing conditions, including negotiation of a lease back to the Company of the portion of the sold properties housing the Company’s offices and Florida distribution center. The Company anticipates closing the Transaction within the next 120 days. “This transaction represents another important step in our ongoing commitment to maximize and unlock value for our shareholders,” said Leslie Campbell, Interim CEO and President. “As we've worked to strengthen our balance sheet and sharpen our focus on our core pharmacy business, optimizing our asset base and unlocking the value of our real estate is a logical next step. This transaction enables us to continue to occupy the headquarters that has been home to PetMeds for the past decade, while providing us with additional financial flexibility to continue investing in the initiatives that have the most potential to drive shareholder returns and create long-term value.” PetMeds does not intend to disclose or comment on further developments related to the Transaction unless or until it determines that further disclosure is appropriate or required. Additional information regarding the Transaction will be contained in a Form 8-K to be filed by PetMeds with the U.S. Securities and Exchange Commission (SEC) and which will be available on the SEC’s web site at www.sec.gov. Copies are also available at no charge at the Investor Relations section of PetMeds’ corporate website at www.PetMeds.com. About PetMedsFounded in 1996, PetMeds is a pioneer in the direct-to-consumer pet healthcare sector. As a trusted national online pharmacy, PetMeds is licensed across all 50 states and staffed with expert pharmacists dedicated to supporting pet wellness, pets and pet parents, and the veterinarians who serve them. Through its PetMeds family of brands and through its PetCareRx subsidiary, the Company offers a comprehensive range of pet health solutions — including top-brand and generic pharmaceuticals, compounded medications, and better-for-your-pet OTC supplements and nutrition. Focused on value, convenience, and care, PetMeds and PetCareRx empower pet parents to help their dogs, cats, and horses live longer, healthier lives. To learn more, visit www.PetMeds.com and www.PetCareRx.com. Forward-Looking Statements This press release contains 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. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. Words such as “may,” “could,” “expect,” “project,” “outlook,” “strategy,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “strive,” “goal,” “continue,” “likely,” “will,” “would” and other similar words and expressions are intended to signify forward-looking statements. These forward-looking statements include, without limitation, statements regarding the proposed sale and leaseback of the Company’s headquarters and distribution center buildings. Forward-looking statements are based on the Company’s current expectations and assumptions regarding future events, which are subject to risks and uncertainties. Actual results could differ materially from those anticipated due to a number of factors, including but not limited to, the risk that the closing conditions for the Transaction will not be satisfied and the risk that the Transaction may not close, as well as other risks described from time to time in the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the Company’s Annual Report on Form 10-K for the year ended March 31, 2026, as well as other subsequent filings 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 undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Investor ContactICR, LLCReed [email protected]

PetMed Express, Inc. PETS used its fourth-quarter fiscal 2026 earnings call to emphasize stabilization rather than a clean recovery. Management said fiscal 2026 was a reset year marked by operational cleanup, cost actions and technology upgrades aimed at rebuilding the business foundation. The call mattered because PetMed paired that turnaround message with signs of slower sales erosion in the second half, modest sequential revenue improvement in Q4 and a decision to remain independent after reviewing acquisition proposals. Leslie Campbell, executive chairman, interim chief executive officer and president, described fiscal 2026 as a pivotal year in which the company worked through financial, operational and cultural issues. She said the first half remained difficult, but the second half showed progress in stabilizing the core business and preparing for longer-term improvement. Campbell pointed to slowing year-over-year sales declines in both the fiscal third quarter and fourth quarter. She also highlighted a sequential increase in fourth-quarter net sales, which she said was the company’s first fourth-quarter sequential gain since fiscal 2024. That framing set the tone for the call. Rather than presenting a broad-based rebound, management focused on early signs that internal actions are beginning to show up in sales trends and customer activity. Campbell said the second half brought “green shoots” in prescription medication sales, prescription and nonprescription food sales and autoship sign-ups. Those were important markers because prescription medication remains the company’s largest pressure point and the main driver of the year’s revenue decline. Douglas Krulik, chief accounting officer and interim principal financial officer, said fourth-quarter net sales were $42.8 million, down 15.6% from a year earlier. Net sales surpassed the Zacks Consensus Estimate of $42 million by 1.27%. The reported loss of 19 cents per share was wider than the Zacks Consensus Estimate of a loss of 18 cents, delivering a negative surprise of 5.56%. PetMed Express, Inc. price-consensus-eps-surprise-chart | PetMed Express, Inc. Quote Krulik added that the fiscal fourth quarter still improved sequentially from the third quarter, helped by prescription medication and autoship trends. That gave management a tangible point of support for its argument that the back-half strategy is starting to gain traction. Management also spent considerable time separating underlying progress from one-time charges. Campbell said fiscal 2026 included a $26.7 million noncash goodwill impairment in the fiscal first quarter, a $2.1 million wholesale inventory write-down in the fiscal third quarter and $4.5 million of nonrecurring legal, professional and executive severance costs tied to the previously disclosed whistleblower investigation. At the same time, she said the company exited underperforming vendor relationships in the second half, actions expected to produce about $6.1 million in annualized savings. She also said the company settled its New York state sales tax liability in the fourth quarter, which reduced fiscal 2026 net loss by $2.8 million. Krulik said fourth-quarter gross margin improved 270 basis points to 32.6%, while general and administrative expense fell 8.6% to $11.4 million. The margin gain was helped by the sales tax settlement, and the G&A improvement reflected cost optimization efforts. Campbell said PetMed reorganized headcount across pharmacy, call center and distribution operations to improve productivity and customer experience. She said the cost structure is now better aligned with the size of the business, while customer-facing operating metrics have improved from a year ago. She also highlighted several completed infrastructure projects, including a new ERP system, a fraud prevention system and upgraded call center technology. Management presented these initiatives as foundational moves that reduce operational risk and support future website and user experience improvements. Campbell linked those efforts to cultural change as well, noting leadership reorganization, internal promotions and improved employee satisfaction. The company’s message was that execution discipline now matters more than rapid expansion. Looking ahead, Campbell said customer retention remains a core priority, but management also wants to widen the company’s reach through B2B relationships, membership programs and white-label pharmacy fulfillment. She specifically cited the recently announced master services agreement with Rural King as an example of that strategy. The board’s strategic review was another notable call theme. Campbell said PetMed received two unsolicited, nonbinding offers in December 2025, valuing the company at $4.00 to $4.25 per share, reviewed those proposals and solicited other interest before deciding to remain independent. That decision leaves management responsible for proving the turnaround case on its own. The call suggested the company sees enough operational and partnership potential to justify that path for now. The closing message from management was disciplined but constructive. Campbell said the company enters fiscal 2027 with a cleaner operating base, lower costs, modernized systems and a clearer strategic focus on retention, execution and partner-led growth. That does not change the fact that full-year sales fell 21.1% to $179.0 million and the company posted a net loss of $57.3 million. Still, management used the call to argue that the business has moved from disruption toward rebuilding. PETS carries a Zacks Rank #3 (Hold), which under the Zacks framework points to a more neutral near-term earnings estimate picture than a Zacks Rank #1 (Strong Buy) or 2 (Buy). A Zacks Rank #3 can still be held, but it does not carry the same preferred profile as the top-ranked groups. You can see the complete list of today’s Zacks #1 Rank stocks here. Its Style Scores are more supportive, with B grades for Value and Growth, an A for Momentum and a VGM Score of A. In the Zacks system, stronger letter grades are generally more favorable, and A or B scores are viewed best when paired with the strongest ranks. The current mix suggests constructive style characteristics, though the Zacks Rank can change as estimate revisions adjust after the latest results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PetMed Express, Inc. (PETS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research