PetMed Express, Inc. (NASDAQ:PETS) Faces Financial and Legal Challenges

• Earnings per share (EPS) significantly missed estimates, with PetMed Express reporting an EPS of -$0.49 compared to the estimated -$0.06.
• The company is under investigation by Block & Leviton LLP and Pomerantz LLP for potential securities fraud and unlawful business practices.
• Despite financial turmoil, PetMed Express maintains a strong liquidity position with a current ratio of 1.43 and a very low debt-to-equity ratio of 0.01.

PetMed Express, Inc. (NASDAQ:PETS) is a prominent player in the pet medication and health product industry, offering a wide range of products for pet owners through its online pet pharmacy. However, recent financial disclosures have raised concerns among investors and analysts. On August 19, 2025, PETS reported an earnings per share (EPS) of -$0.49, significantly missing the estimated EPS of -$0.06. Despite this, the company reported actual revenue of $51.1 million, aligning with the estimated revenue.

The financial turmoil at PetMed Express has been compounded by ongoing investigations into potential securities fraud. Block & Leviton LLP and Pomerantz LLP are both investigating the company for possible unlawful business practices. These investigations were triggered by PetMed's announcement of delays in releasing its fourth quarter and year-end financial results for 2025, as highlighted by Block & Leviton LLP. The situation worsened with the resignation of the CEO and CFO, leading to a nearly 30% decline in the company's stock price.

The company has a price-to-sales ratio of 0.26 suggests a relatively low valuation compared to its revenue. The enterprise value to sales ratio of 0.06 further indicates a modest valuation in relation to sales, while the enterprise value to operating cash flow ratio of 2.90 reflects the company's ability to generate cash flow from operations.

PetMed Express maintains a strong liquidity position with a current ratio of 1.43, suggesting it can cover its short-term liabilities. The company's debt-to-equity ratio of 0.01 indicates very low leverage, which could be a positive sign for investors concerned about financial stability. However, the ongoing investigations and management changes may continue to impact investor confidence and the company's stock performance.

The resignation of key executives, including CEO Sandra Campos and CFO Robyn D'Elia, has led to significant management changes at PetMed Express. Leslie C.G. Campbell, the Chair of the Board of Directors, has assumed the role of Interim CEO, while Douglas Krulik has been appointed as the Interim Principal Financial Officer. The company is actively searching for permanent replacements to stabilize its leadership team.