Filings/PETS/10-Q

Source document

EDGAR
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KPIsSections16
Headline metrics
Revenue — GREEN$41.0M-19.9% YoY
Gross margin — GREEN27.6%
Net income — GREEN-$6.1M+82.0% YoY
Net margin — GREEN-15.0%
Operating margin — RED-15.2%
Red flags4 red1 orange
Liquidity5
RED
Negative operating cash flowoperating_cf_burn
The company is burning cash from operations — sustainability depends on financing.
RED
Net margin -15.0%net_margin_sharply_negative
Net income margin below -5% — profitability materially negative vs revenue.
RED
Cash conversion (CFO/Rev) -18.7%cash_conversion_weak
CFO/Revenue below 0 — operating model not generating cash despite revenue.
ORANGE
Current ratio 0.68current_ratio_low
Current assets are below current liabilities — short-term liquidity pressure.
RED
Cash runway ~1.7 yearscash_runway_low
At current burn rate, cash covers less than 2 years — may require near-term financing.
Income Statement
Income Statement
MetricValueFlag
Revenue$41.0MGREEN
Revenue (quarter)$41.0MGREEN
Gross Margin27.6%GREEN
Operating Margin-15.2%RED
Net Margin-15.0%GREEN
Net Income-$6.1MGREEN
EPS (diluted)$-0.28GREEN
Balance Sheet
Balance Sheet
MetricValueFlag
Cash$13.1MGREEN
Broad Liquidity$13.1MGREEN
Current Ratio0.68GREEN
Total Assets$63.8MGREEN
Total Equity$23.0MGREEN
Cash Flow
Cash Flow
MetricValueFlag
Operating CF-$7.7MGREEN
Cash Conversion (CFO/Rev)-0.19GREEN
SBC % Revenue0.5%GREEN
Free Cash Flow-$8.3MGREEN

Sections in this filing

Financial Statements (unaudited)

ITEM 1. FINANCIAL STATEMENTS. 2 PETMED EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share amounts) June 30, 2026 March 31, 2026 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 13,079 $ 21,412 Accounts receivable, less allowance for credit losses of $ 0 and $ 25 , respectively 1,706 1,908 Inventories, net 8,468 13,608 Prepaid expenses and other current assets 4,256 6,378 Prepaid income taxes 96 258 Total current assets 27,605 43,564 Noncurrent assets: Property and equipment, net 25,213 26,326 Intangible and other assets, net 10,549 10,789 Operating lease right-of-use assets 395 512 Total noncurrent assets 36,157 37,627 Total assets $ 63,762 $ 81,191 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 12,298 $ 20,906 Sales tax payable 20,603 22,261 Accrued expenses and other current liabilities 6,654 7,665 Current operating lease liabilities 414 493 Deferred revenue 629 689 Income taxes payable — 20 Total current liabilities 40,598 52,034 Deferred tax liabilities, net 175 175 Operating lease liabilities, net of current lease liabilities — 42 Total liabilities 40,773 52,251 Commitments and contingencies (Note 7) Shareholders' equity: Preferred stock, $ 0.001 par value, 5,000,000 shares authorized: Convertible preferred stock, $ 0.001 par value, with a liquidation preference of $ 4 per share, 250,000 shares authorized; 2,500 and 2,500 convertible shares issued and outstanding, respectively 9 9 Series A Junior Participating Preferred Stock, $ 0.001 par value, 100,000 shares authorized; no shares issued or outstanding — — Common stock, $ .001 par value, 40,000,000 shares authorized; 21,682,381 and 21,385,638 shares issued and outstanding, respectively 22 21 Additional paid-in capital 19,840 19,647 Retained earnings 3,118 9,263 Total shareholders' equity 22,989 28,940 Total liabilities and shareholders' equity $ 63,762 $ 81,191 See accompanying notes to unaudited condensed consolidated financial statements. 3 PETMED EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for share and per share amounts) (Unaudited) Three Months Ended June 30, 2026 2025 Net sales $ 41,015 $ 51,180 Cost of sales 29,682 36,777 Gross profit 11,333 14,403 Operating expenses: General and administrative 11,197 12,948 Advertising 4,220 6,046 D