Start here if you're new
what it is
PetMeds sells pet prescriptions, flea treatments, and health products online straight to pet owners across the U.S.
how it gets paid
Last year Petmed Express made $227M in revenue.
why it's growing
Revenue grew 28.8% last year. Gross margin at 26.6% matters most because this company only posted a 0.8% operating margin on the full-year base.
what just happened
The key earnings takeaway: PetMeds posted -$2.55 EPS on $136M of revenue, which is what a tiny margin business looks like when it slips.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
18.9x trailing p/e — priced about right
0.2% return on capital — nothing to write home about
-$0.37 fy2023 eps est
xvary composite: 52/100 — below average
What they do
PetMeds sells pet prescriptions, flea treatments, and health products online straight to pet owners across the U.S.
The moat is brand memory, not magic. When your pet needs meds fast, you type the name you already know, and that habit still supported $227M in annual revenue. The balance sheet also carries $0M of long-term debt, which gives management time even with an operating margin of just 0.8%.
How they make money
$227M
annual revenue · their business grew +28.8% last year
total revenue
$227M
+28.8%
The products that matter
fills pet prescriptions
Prescription Medications
$136M · 60% of displayed segment revenue
This is the center of gravity, and it fell 13% from a year ago. If you are looking for the number that mattered, it is this one.
core revenue line
sells everyday pet supplies
Over-the-Counter Supplies
$91M · 40% of displayed segment revenue
This includes flea and tick, vitamins, and other non-prescription products. At $91M and flat growth, it is absorbing some pressure, not creating a new growth engine.
support line
Key numbers
18.9x
trailing p/e
P/E → stock price divided by past profit → so what: you are paying a profit-stock multiple even though the full-year earnings estimate was a $0.37 loss per share.
0.8%
operating margin
Operating margin → profit left after running the business → so what: one bad quarter can erase a year.
0.2%
return on capital
Return on capital → profit from each dollar invested → so what: the business is barely earning on the money inside it.
$0M
long-term debt
Long-term debt → money owed over years → so what: the balance sheet buys time, even if operations are weak.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $0M (1% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for PETS right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The key earnings takeaway: PetMeds posted -$2.55 EPS on $136M of revenue, which is what a tiny margin business looks like when it slips.
Gross margin was 26.6%, while the annual operating margin base was only 0.8%. That is the quiet part said out loud: there was no cushion.
$57M
revenue
$2.55
eps
26.6%
gross margin
the number that mattered
Gross margin at 26.6% matters most because this company only posted a 0.8% operating margin on the full-year base, so every point counts.
source: company filings, 2025
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
The top risk is prescription revenue erosion inside a low-margin model. PETS does not have much room for strategic mistakes when the biggest sales line is falling and the company is already losing money.
med
The core business keeps shrinking
Prescription sales fell 13% from a year ago. That is the largest line in the revenue mix shown here, so weakness there hits the whole model fast.
This exposes the $136M prescription base — and by extension most of the $227M revenue line — to continued pressure.
med
Margin improvement never reaches net income
Gross margin improved to 28.1% in the latest quarter from the 26.6% full-year level, but the company still posted a $6.3M annual loss. Better unit economics matter only if they survive marketing, overhead, and execution.
If the company cannot turn a higher gross margin into sustained profitability, you are left with a cheaper stock on paper and the same weak business underneath it.
med
Leadership turnover delays the fix
The CEO and CFO resigned in August 2025. A company trying to reverse a sales decline does not get bonus points for running without permanent senior leadership.
Execution risk rises because every operating decision matters more when gross margin is 26.6% and profits are already negative.
med
The legal case gets expensive anyway
A federal judge allowed ECPA and CIPA claims to proceed in Cobbs v. PetMed in January 2026. Even before damages, legal costs and management distraction are real for a company this small.
The business lost $6.3M last year. You do not need a huge legal bill for that number to get worse.
If Petmed Express cannot stabilize prescription demand and translate a 28.1% quarterly gross margin into actual profit, the debt-free balance sheet just extends the clock. It does not change the ending.
source: institutional data · regulatory filings · risk analysis
Pay attention to
core metric
Prescription sales need to stop falling
That line is $136M of the revenue shown here and fell 13% from a year ago. If that decline does not ease, the rest of the story barely matters.
earnings
Q4 and FY2026 results
The estimated report date is May 11, 2026, and consensus EPS sits at -$0.13. Here's the thing: you want to see whether margin gains finally reach the bottom line.
legal
Cobbs v. PetMed
Track whether the wiretapping case expands, settles, or starts consuming more cash and management attention. For a $53M company, side issues stop being side issues quickly.
deal overhang
Any revival of the $4.25 bid
The failed offer set a reference point. If it disappears for good, you are left underwriting the business on operations alone.
Analyst rankings
earnings predictability
30 / 100
Results can swing around more than most stocks. In human-speak, analysts do not trust this business to print smooth quarters yet.
avg. price target
$2.75
The average target sits below the current $3.29 stock price. That is the market's polite way of saying coverage is thin and proof still beats storytelling.
source: institutional data
Institutional activity
institutional ownership data for PETS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive