Earnings call transcript: PetVivo Q1 2025 shows revenue surge and strategic growth

PetVivo Holdings Inc. reported a significant increase in revenue for Q1 2025, reflecting robust growth in its distributor sales and strategic advancements in product offerings. The company’s financial performance highlights a 141% year-over-year increase in total revenue, with notable progress in reducing operating expenses and liabilities. According to InvestingPro data, the company maintains an impressive gross profit margin of 87.84% and has achieved a 16.91% revenue growth over the last twelve months. Despite a net loss, the company’s strategic initiatives and market expansion efforts signal a positive outlook.

Key Takeaways

• Total revenue increased by 141% year-over-year to $298,000.
• Distributor sales surged by 192%, contributing to 67% of total revenue.
• Operating expenses decreased by 9%, with a net loss improvement of 15%.
• Launched new product PRECISE PRP and expanded into the Mexican market.
• Cash reserves increased significantly from $220,000 to $3.3 million.

Company Performance

PetVivo’s performance in Q1 2025 marked a period of substantial growth, driven by a strong increase in distributor sales and strategic cost management. The company’s focus on innovative product launches and market expansion has positioned it favorably in the competitive animal health sector. InvestingPro analysis shows the stock has delivered a strong 26.5% return year-to-date, with a relatively low beta of 0.67, indicating lower volatility compared to the market. The reduction in operating expenses and liabilities further underscores its commitment to operational efficiency. For deeper insights into PetVivo’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Financial Highlights

• Revenue: $298,000, a 141% increase year-over-year.
• Distributor Sales: $198,000, a 192% increase, accounting for 67% of total revenue.
• Gross Profit: $187,000, representing 63% of revenues, up 69%.
• Operating Expenses: $2,000,000, a 9% decrease.
• Net Loss: $2,300,000, or $0.09 per share, a 15% improvement.
• Cash on Hand: $3,300,000, up from $220,000 as of March 31, 2025.

Outlook & Guidance

Looking ahead, PetVivo anticipates continued strong sales momentum, supported by the upcoming commercial launch of its AI-integrated pet care ecosystem in Q3. The company is also expanding its presence at veterinary conferences and conducting ongoing clinical studies in canine health. Future revenue forecasts for FY2026 and FY2027 are projected at $1.27 million and $1.37 million, respectively. InvestingPro’s Financial Health assessment rates the company as ’FAIR’ with a score of 1.92, while maintaining a healthy current ratio of 1.3, suggesting adequate liquidity to support its growth initiatives.

Executive Commentary

John Dolan, Chief Business Development Officer, emphasized the company’s strategic positioning, stating, "We have never been in a better position to accelerate our growth and expand across high growth markets." He also highlighted the importance of partnerships, adding, "By combining our clinical experience and commercial capabilities with Commonwealth’s equine industry knowledge, we can provide veterinarians with cutting-edge effective solutions."

Risks and Challenges

• Market Competition: The animal health sector is highly competitive, with numerous players vying for market share.
• Regulatory Hurdles: Compliance with international regulations can pose challenges as the company expands into new markets.
• Economic Conditions: Macroeconomic pressures could impact consumer spending on pet health products.
• Technological Integration: The successful integration of AI technology into pet care products is crucial for future growth.
• Supply Chain Disruptions: Potential disruptions could affect product availability and distribution.

PetVivo’s strategic initiatives and financial discipline have set a strong foundation for future growth, with a clear focus on innovation and market expansion. The company’s commitment to reducing costs and enhancing its product portfolio will be critical in navigating the competitive landscape and achieving its long-term objectives.

Full transcript - PetVivo Holdings Inc (PETV) Q1 2026:

John Dolan, Chief Business Development Officer and General Counsel, PetVivo: Good afternoon, everyone. Thank you for joining us today to discuss our results for our fiscal first quarter twenty twenty six, which ended on 06/30/2025. Hosting the call today is our Chief Executive Officer, John Lai our Chief Financial Officer, Gary Lowenthal and myself, John Dolan, PetVivo’s Chief Business Development Officer and General Counsel. Following our remarks, we’ll open the call to your questions. Then before we conclude today’s call, I will provide some important cautions regarding the forward looking statements made during the call.

I’d like to remind everyone that today’s call is being recorded in order to make it available for replay. The replay instructions can be found in today’s press release, which is available in the Investor Relations section of our website. Now turning to our results for the quarter. Our growth momentum continued into the first quarter as we continue to expand the use of our lead animal osteoarthritis veterinary medical device, Spring, with OsteoCushion technology. We also advanced the development and use of technologies we’ve gained from new major partnerships that we formed earlier this year.

They have provided innovative technologies that involve diagnostics and medical treatments, which have been transformative for our platform and for the veterinarians and pet owners that we serve. Since introduction of Spring in late twenty twenty one, this flagship product has now been used by more than 1,000 veterinary clinics across all 50 states. And with the recent addition of our first distributor in Mexico, we can include several new international clinics as well. Mexico is a very attractive market for animal health solutions, especially given now the country’s veterinary health care market is expected to grow at a compounded annual growth rate of 11% to reach $2,400,000,000 by 02/1931. Personal horse ownership is deeply intertwined with Mexican culture and tradition, which makes the Mexican marketplace exceptionally ideal for us.

As those sales begin to ramp up in Mexico, our U. S. National distributor network increased their sales by 192% compared to a year ago, reaching $198,000 or 67% of total revenue. The growth in distributor sales, combined with the expansion of our in house sales force and product offerings, drove 140% increase in total revenue for the quarter, reaching nearly $300,000 making it one of our best quarters yet. This performance also reflects the success of our marketing efforts, which is still strongly focused on the large equine market as we further expand into the larger and faster growing companion animal market.

The growth also reflects the success of the several new highly experienced territory managers we have deployed nationwide over the past year, as well as the addition of the new team of professional sales representatives and technical service veterinarians we’ve engaged to support them. Together, they have been developing relationships with the nation’s leading veterinary clinics, veterinary corporate entities, consolidators and distributors to support future sales. Now before we get into some more of the other exciting recent developments and our outlook for the remainder of the year, I would like to turn the call over to our CFO, Gary Lowenthal, to take us through the financial details for the quarter. Gary?

Gary Lowenthal, Chief Financial Officer, PetVivo: Thanks, John, and good afternoon. Thank you for joining us today to discuss the results of our 2026 that ended on June 30. As John Dolan mentioned, we had a great quarter with revenues of $298,000 This was an increase of 141% over the first quarter of last year. This growth was largely driven by a number of factors, including our expanded North American distributor network, with their contribution increasing 192 compared to the year ago quarter, reaching $198,000 or 67% of the total revenue. Our expanded in house sales force and additional product offerings that now include Precise PRP, the platelet rich plasma animal health product, which is administered alongside Spring, also helped drive the increase in our revenue.

Gross profit totaled $187,000 or 63% of revenues, which was an increase of 69% compared to $111,000 of revenues the same time a year ago. The decrease in gross margin was due to the new PRECISE PRP product as we increased our product offerings and our sales mix. Now on to the operating expenses. They decreased 9% to $2,000,000 from $2,200,000 in the year ago quarter. The reduction was due to a strategic company wide cost reduction and restructuring program the company implemented during the previous fiscal year and which continued into the first quarter.

Combined with the increase in sales, the lower operating expenses helped decrease by operating loss by 10% compared to the same quarter a year ago, bringing it down to $1,800,000 We also decreased general and administrative expenses by 14% while creating more efficient and effective operations. Our net loss available to common stockholders totaled 2,300,000.0 or negative loss of $09 per basic and diluted share, which was a 15% improvement from the net loss of $2,000,000 or $0.11 per basic and diluted share a year ago. Net cash used in operating activities increased to $1,600,000 from $1,500,000 in the same period a year ago, which was primarily due to onetime lease termination expenses and an increase with our inventory purchases with our new Precise PRP product line. Now let’s turn to the balance sheet. Our available cash on June 30 was $3,300,000 increasing from $220,000 just on 03/31/2025.

The increase was primarily due to the net proceeds of $4,700,000 we received from the finance activities we conducted just during the last ninety days of the quarter. Also notably, our total liabilities decreased $1,200,000 or 39% in the quarter or down $3,100,000 from $5,100,000 for the same quarter a year ago. The reduction in total liabilities included reduced lease liabilities by $860,000 during the quarter by terminating our ten year lease for our second manufacturing facility and also the extinguishment of derivative liabilities with our convertible notes due to modifying our convertible note terms. I’d like to talk briefly about Coming our

: back every year because not only do I learn the cutting edge research that’s going on as well as learning new state

Gary Lowenthal, Chief Financial Officer, PetVivo: Hello? What was that? Anyways, I’ll I’ll continue. We got uplifted on OTC capital markets. We uplifted from the QB to the QX.

So in any case, I’d like to mention that we recently qualified to begin trading on the OTCQX best market. To qualify for the OTCQX, public companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws. We believe our uplift from the OTCQB to OTCQX demonstrates our commitment to transparency, strong corporate governance and delivering long term value to our stockholders. We also believe that trading on OTCQX will enhance our visibility within the investment community and provide greater liquidity and accessibility for investors as we continue to execute on our strategic growth initiatives. Now this completes our financial summary for the year.

John Dolan?

John Dolan, Chief Business Development Officer and General Counsel, PetVivo: Thank you, Gary. The growth for the quarter demonstrated the success of our overall strategy for driving greater adoption of Spring as well as increasing the awareness and acceptance of PRECISE PRP for the treatment of osteoarthritis in animals. PRECISE PRP is a proprietary and revolutionary allogeneic platelet rich plasma product, or PRP, designed for horses and dogs that was developed by VetStem. PetVivo has the exclusive rights to commercialize precise PRP in The United States. Precise PRP is a first in class off the shelf PRP product for use by veterinarians.

It is a leuco reduced, allergenic, cooled, freeze dried PRP that provides a species specific source of concentrated platelets in plasma for intra articular administration. Unlike other PRP mechanical kits currently on the market, Precise PRP does not require a blood draw or a centrifuge, thereby making it a truly off the shelf product that is easy and convenient to administer. Perhaps even more important is uniformity and consistency that PRECISE PRP guarantees. Each vial of PRECISE PRP contains a consistent dose of 4,000,000,000 platelets per vial at a concentration of 500,000 platelets per microliter and its leuko reduced with less than 1,500 white blood cells per microliter. We have begun to sell this breakthrough regenerative product under a new exclusive licensing and supply agreement with VetStem that we signed last quarter.

The commercialization of Spring and PRECISE PRP has been received very favorable reports from veterinarians regarding the ease of use for each of these products and their effectiveness in the management of osteoarthritis in horses and companion animals. We’ve also continued to focus on expanding the awareness of the benefits of both of these innovative products among key decision makers. In July, we exhibited at the Texas Equine Veterinary Association twenty twenty five Summer CE Symposium, which was held in Marble Falls, Texas. We also have attended other smaller industry events during the quarter. At these events, we demonstrate the research back benefits of spring to veterinarians, including leading sports medicine and rehabilitation experts in the veterinary industry.

We will have the opportunity again at the upcoming twenty twenty five Fetch, Kansas City Veterinary Conference to be held starting August 22 at the Kansas City Convention Center in Kansas City, Missouri. At this conference, we will be exhibiting jointly with VetStem. We will be presenting our spring with OsteoCryption technology as an intra articular injectable veterinary medical device consisting of sterilized extracellular matrix micro particles. Together with VetStem, we will also be exhibiting the PRECISE PRP technology and how it can work alongside SPRING. Such conferences allow us to discuss firsthand the benefits of administering SPRING and or precise PRP to horses and companion animals.

We can provide the many anecdotal reports as well as prevent clinical study results in SPRING that have been obtained by leading independent investigators. From these events, we usually gain a better understanding of our target market and the types of veterinarians we should be more focused upon. This includes vets who specialize in sports medicine, rehabilitation and or pain management, as well as surgery. Regarding additional studies, we have continued to accumulate data from a new canine elbow pilot study being conducted by Orthobiologic Innovations, a leader in R and D and regenerative and sports medicine. The study is being led by two prominent veterinarians, Sherman and Deborah Knapp, and we expect it to be completed before the end of the calendar year.

Studies like this canine elbow study as well as other completed studies related to the management of stifle cranial cruciate ligament disease and hip osteoarthritis continue to play a crucial role in our sales and distribution strategy. Veterinarians as well as large national and international distributors generally want to review university or independently conducted research before adding a new product like ours to their treatment regimens or distribution catalogs. Our internal sales team and outside distributors have been using our several documented studies in their commercialization effort for spring, including related veterinarian training. Also during the quarter, we’ve been advancing our strategic alliance with Digital Landia, a pioneer in agenic AI solutions. Our collaboration with Digital Landia centers on their pet artificial intelligence technology, a revolutionary technology that deciphers animal behavior and communication through real time analysis of vocalizations, body language and physiological signals captured via smartphone cameras.

Given how it accomplishes this with an amazing 97% accuracy, Digital Landia’s Agenic AI represents a paradigm shift in how we understand pets and their physical health. By aligning our clinical proven therapies with this AI technology, we believe PEDVIVO is uniquely positioned at the intersection of AI innovation and veterinary care. We anticipate pet AI to rival mainstream AI applications in terms of adoption rates and thereby create tremendous visibility for our brands, particularly Spring and Precise PRP. This AI technology is currently being integrated with our veterinary products to create a first of kind global pet care ecosystem. Beta testing is underway and advancing well, and we anticipate the official commercial launch to take place in our third quarter of this year.

In June, we announced a strategic collaboration with Commonwealth Markets, the syndicated ownership group who was behind 2023 Kentucky Derby winner, Meij, and the 2022 Dubai World Champion named Country Grammar. Our partnership with Commonwealth has been centered on the clinical use and promotion of Spring with OsteoCushion technology and PRECISE PRP. As part of our collaboration, Commonwealth has integrated Spring and PRECISE PRP into the care protocols of a number of their top tier thoroughbred stables. In this environment, they are using these technologies as both a preventative measure and or a management solution to promote joint health and extend performance longevity. It is also being used to support recovery after high impact training and racing.

In addition to this clinical implementation, we are exploring co branded content, educational initiatives and industry outreach to elevate awareness around joint wellness and to support the broader adoption of spring and precise PRP across the equine health community. This unique partnership with Commonwealth, a recognized leader at the highest level of the sport, marks a major advancement for both spring and Precise PRP. Their championship caliber horses and progressive approach to wellness makes them the ideal partner to showcase the benefits of these revolutionary restorative technologies. By combining our clinical experience and commercial capabilities with Commonwealth’s equine industry knowledge and vast network, we can provide veterinarians with cutting edge effective solutions that enhance recovery and long term soundness in competitive horses. Also during the first fiscal quarter, we established a strategic partnership with Piezo BioMembrane, a pioneer in biodegradable piezoelectric materials for use in implantable applications.

Through our collaboration, we are looking to advance the research and development of revolutionary functional biomaterials that can promote regeneration, restoration and or remodeling of damaged or injured tissue and bone in both animals and humans. We are currently nearing completion of Phase one of our three phase joint research and development project, which is designed to determine if materials from our mutual products can be combined into a single offering to provide therapeutic benefits to animals and humans. Altogether, our latest new technologies have created an exciting future for PEDVIVO, which we believe will be transformative to not only veterinarians and the patients they serve, but potentially for humans as well. Finally, the advancement of our innovative technologies, SPRing and PRECISE PRP, is creating an exciting new future for petVIVO, one that we believe will be transformative not only for us, but also for veterinarians and their many precious patients. We expect to see continued strong sales momentum and market penetration for the duration of fiscal twenty twenty six and beyond.

In fact, we have never been in a better position to accelerate our growth and expand across high growth markets. The U. S. Animal health market is expected to double to $11,300,000,000 by 02/1930. Such massive growth is rare for such an already large industry, and it provides us amazing tailwinds.

As we continue to grow and expand, we remain committed to advancing the best in pet health solutions and ensuring our products reach more veterinary professionals and pet owners, and this driving greater value for our stakeholders. Now I’d like to turn the call over to our CEO, John Lai, who will host our question and answer session. John? Thank you, John. Now we would like to open up the call for Q and A and comments.

Operator, could you please provide the callers with instructions on how to ask questions?

Operator: Of course, John. For anyone that joined over the phone, please dial 9 to raise your hand. Or if you join over the computer, please click on the react button over the toolbox and select raise hand. For anyone that joined over the phone, please dial 9 to raise your hand. Or if you join over to computer, please react on the toolbox button and select raise hand.

John Dolan, Chief Business Development Officer and General Counsel, PetVivo: Yeah. Go ahead, operator.

Operator: Oh, I was just going to repeat the instructions, but I don’t see any raised hand right now. So for anyone that joined over the phone, if you want to raise your hand, please dial 9 or on the computer, go to the react button and select raise hand.

John Dolan, Chief Business Development Officer and General Counsel, PetVivo: Well, if we don’t have any questions, I will this concludes our call, but I will turn it over to John Dolan, where he has some information to give. Thank you, John. Now before we conclude today’s call, I would like to provide the company’s safe harbor statement that includes cautions regarding forward looking statements made during today’s call. The information that we have provided in this conference call includes forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the company’s future revenue, future plans, objectives, expectations and events, assumptions and estimates. Forward looking statements can be identified by the use of words or phrases usually containing the words believe, estimate, project, intend, expect, should, will or similar expressions.

Statements that are not historical facts are based on the company’s current expectations, beliefs, assumptions, estimates, forecasts and projections for its business and the industry and markets related to its business. Any forward looking statements made during this conference call are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Actual outcomes and results may differ materially from what is expressed in such forward looking statements. Factors that would cause or contribute to such differences include, but are not limited to, various risks as detailed in the company’s periodic report filings with The U. S.

Securities And Exchange Commission. For more information about risks and uncertainties associated with the company’s business, please refer to the Management’s Discussions and Analysis of Financial Conditions or Results of Operations and Risk Factors sections of the company’s SEC filings, including, but not limited to, our annual report on the Form 10 ks and quarterly reports for Form 10 Q. Any forward looking statements made during the conference call speaks as of today’s date. The company expressly disclaims any obligations or undertaking to update or revise any forward looking statements made during the conference call to reflect any changes in its expectations with regard thereto or any changes in its events, conditions or circumstances of which any forward looking statements are based, except as required by law. I would like to remind everyone that this call will be available for replay starting later this evening or by tomorrow morning.

Please refer to today’s earnings release for dial in replay instructions available via the company’s website at www.petvivo.com. Thank you for attending today’s presentation. This concludes the conference call. You may now disconnect.

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