PetMeds narrows Q4 loss despite ongoing revenue decline

PetMeds reported $42.8 million (€37.2M) in revenue for the fourth quarter (Q4) of fiscal year (FY) 2026, ended 31 March.

Although it was a 5.4% increase from the previous quarter, the performance was not enough to reverse a 15.6% year-over-year (YoY) decline. According to the online pet pharmaceutical company, the fall was primarily driven by lower prescription medication sales.

“Despite this decline, in Q4 we saw a modest sequential improvement from Q3, driven by improvements in autoship sales,” says Chief Accounting Officer Doug Krulik. Prescription and nonprescription food sales also recovered in the last quarter. 

Lower net loss

Gross profit fell 8.5% YoY to $13.9 million (€12.1M), while gross margin improved by 270 basis points to 32.6%. 

The margin improvement was primarily driven by the settlement of the company’s New York sales tax liability in Q4, resulting in a $2.8 million (€2.4M) reduction in net loss.

PetMeds also narrowed its net loss to $4.1 million (€3.6M) from $11.6 million (€10.1M) in the same period last year. 

The online pet pharmaceutical firm attributed the improvement to lower operating expenses. “Throughout 2026, we focused on stabilizing our core business. We completed strategic, operational and technology initiatives that collectively reduced our cost structure,” says Interim Chief Executive Officer and President Leslie Campbell.

FY2026 performance

For the full fiscal year, PetMeds’ net sales declined 21.1% YoY to $179 million (€155.7M), while gross profit decreased 27% YoY to $50.2 million (€43.7M).

Net loss increased ninefold to $57.3 million (€49.9M) from $6.3 million (€5.5M), primarily driven by higher operating expenses. This includes a $26.7 million (€23.2M) non-cash goodwill impairment charge recorded in the first quarter of FY2026 (when the value of an asset is reduced).

PetMeds also recorded a $2.1 million (€1.8M) wholesale inventory write-down during the third quarter and incurred an additional $4.5 million (€3.9M) in legal, professional and severance expenses related to a whistleblower investigation.

Attempt at recovery

Last year, PetMeds delayed filing the results for fiscal year 2025. This led national shareholders’ rights firm Hagens Berman to open an investigation into whether the company may have intentionally misled investors about its financial results. After the investigation, the CEO and CFO resigned in August. 

During the webinar discussing the FY2026 results, the interim CEO said the company has made “meaningful progress” in improving its internal controls by “fully remediating” weaknesses, including accounting problems.

As part of its efforts to reverse losses, the firm is expanding its market footprint through B2B relationships, both using its membership programs and white-label pharmacy fulfillment services.

For instance, in April 2026, PetMeds announced a strategic partnership with Rural King to launch a pet pharmacy offering across the retailer’s stores and digital channels. “We believe these offerings represent a significant opportunity to leverage our deep pharmacy expertise and infrastructure to reach more customers through our partners,” Campbell told investors.