PetMeds® Announces Third Quarter Fiscal 2025 Financial Results

Core Insights - PetMed Express, Inc. reported significant progress in its transformation journey, achieving $2 million in Adjusted EBITDA for the third quarter of fiscal 2025, a $1.1 million improvement year-over-year [3][7] - The company successfully reduced general and administrative expenses by $2.6 million compared to the previous year, indicating a focus on operational efficiency [3] - Net sales for the third quarter were $53.0 million, with a gross margin rate of 28.1%, reflecting an increase of 80 basis points from the prior year [7][12] Financial Performance - Adjusted EBITDA for the third quarter was $2.0 million, compared to $0.9 million in the prior year period, marking a 116% increase [7][22] - Net sales decreased from $65.3 million in the same quarter last year to $52.98 million this year, while cost of sales also decreased from $47.43 million to $38.08 million [12] - The company reported a net loss of $707,000 for the quarter, an improvement from a net loss of $2.03 million in the same quarter last year [12][22] Balance Sheet Highlights - As of December 31, 2024, total assets were $144.8 million, down from $169.9 million as of March 31, 2024 [10][11] - Current liabilities decreased significantly from $72.2 million to $48.0 million, indicating improved liquidity [10][11] - Shareholders' equity remained relatively stable at $96.2 million compared to $96.7 million in the previous period [11] Cash Flow Analysis - The company reported a net cash used in operating activities of $2.3 million for the nine months ended December 31, 2024, compared to $2.8 million for the same period last year [14] - Cash flows from investing activities showed a net cash outflow of $2.7 million, down from $39.4 million in the previous year, indicating a reduction in capital expenditures [14] - Cash and cash equivalents at the end of the period were $50.1 million, down from $55.3 million at the beginning of the period [15]