PetMeds receives Nasdaq non-compliance notice over delayed annual report

Published 03/07/2025, 13:38
PetMeds receives Nasdaq non-compliance notice over delayed annual report

DELRAY BEACH, Fla. - PetMed Express, Inc. (NASDAQ:PETS) announced Wednesday it received a notice from Nasdaq indicating the company is not in compliance with listing rules after failing to timely file its annual report for the fiscal year ended March 31, 2025. The company’s stock, which has declined over 30% year-to-date according to InvestingPro data, currently maintains a market capitalization of approximately $70 million.

The notice, received on July 2, does not immediately affect the listing or trading of PetMeds’ stock on the exchange. According to the company’s statement, PetMeds has until September 1 to submit a compliance plan to Nasdaq, which may then grant an extension of up to 180 calendar days from the original filing deadline, or until December 29, to regain compliance.

PetMeds previously filed a Notification of Late Filing on June 16, stating it was unable to complete its Form 10-K by the prescribed due date as it continues to compile and analyze information necessary for its financial statements.

The company indicated it is "working diligently" to complete its financial statements and plans to file the Form 10-K "as soon as practicable" to regain compliance with Nasdaq requirements.

Founded in 1996, PetMed Express operates as an online pet pharmacy licensed across all 50 states, offering pet pharmaceuticals, medications, and supplements through its PETS family of brands. According to InvestingPro’s Financial Health assessment, the company maintains a "Fair" overall rating, with particularly strong scores in cash flow and relative value metrics.

This information is based on a press release statement from the company.

In other recent news, PetMed Express, Inc. announced a delay in filing its annual 10-K report due to an ongoing investigation by the company’s Audit Committee. The investigation follows whistleblower reports concerning revenue recognition practices and a customer coupon promotion. Despite these issues, PetMeds does not currently expect the investigation to materially impact its previously announced preliminary financial results. The company has also released preliminary fourth-quarter results, indicating a significant sales decline, with estimated sales between $51.1 million and $53.1 million, down from $66.5 million the previous year. PetMeds projects a quarterly net loss between $9.9 million and $10.4 million, compared to a $5.0 million loss in the prior year quarter. In a strategic move, PetMed Express has partnered with Dutch, a virtual veterinary care provider, to integrate telemedicine services with its medication offerings. Morgan Stanley analysts have reduced the price target for PetMed Express from $3.50 to $3.20, maintaining an Underweight rating due to competitive challenges in the sector. The analysts are cautiously optimistic about the company’s potential under new management but await further strategic details.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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