EL7.AI
StocksMedium•10 November 2026•
4 min read

PetMeds Cuts Customer Acquisition Cost 32% as Second-Quarter Sales Fall 19.4%

Key Facts

1The cost of acquiring a new customer fell 32% year over year in the second quarter of fiscal 2027.
2Net sales were $35.8 million, down 19.4% from $44.4 million a year earlier.
3The net loss was $6.4 million, or $0.31 per diluted share, compared with $8.5 million and $0.41 per share a year earlier.
4Adjusted EBITDA loss widened to $3.6 million from $2.3 million in the corresponding period.

PetMed Express, which operates as PetMeds and is the parent of PetCareRx, reported results for its fiscal 2027 second quarter ended September 30, 2026, recording a 32% year-over-year decline in the cost of acquiring a new customer, according to its earnings release filed with the U.S. Securities and Exchange Commission. Chief Executive Jeff Willard said the company reduced the cost from a year earlier, but the release did not provide a dollar figure. The result comes as the company faced a sales decline, with quarterly revenue falling 19.4% year over year. The figures combine improved customer-acquisition efficiency with continued pressure on business volume. The company said its next priorities include repositioning the brand and improving marketing, the shopping experience and customer retention.

Net sales were $35.8 million for the quarter, compared with $44.4 million in the same period of the prior fiscal year. The company attributed the decline mainly to lower prescription medication sales and consumers' increased use of promotional offers. Willard said PetMeds is working to reposition its brand so pet owners know why they should choose it. The release identified improved marketing, ease of purchase and customer retention as priorities. That puts the transformation plan up against the challenge of addressing weakness in underlying sales while also reducing customer acquisition costs. The information provided here did not specify a quantitative sales target or a timeline for achieving one.

The net loss was $6.4 million, or $0.31 per diluted share, compared with a loss of $8.5 million, or $0.41 per share, a year earlier. The company attributed the improvement in net loss mainly to lower administrative and advertising expenses. But adjusted earnings before interest, taxes, depreciation and amortization recorded a loss of $3.6 million, compared with a loss of $2.3 million in the same period. That means the narrower net loss did not come with an improvement in this adjusted operating measure. The results present two different pictures of quarterly performance: a smaller net loss and a larger adjusted EBITDA loss.

For the six months ended September 30, 2026, net sales were $76.8 million, compared with $95.5 million in the corresponding six months a year earlier. The net loss for the period was $12.6 million, versus $42.7 million a year earlier. The prior-period loss included a $27.3 million impairment of goodwill and intangible assets. As a result, part of the year-over-year difference in net loss was linked to the impairment recorded in the prior period, alongside changes in operating results. The half-year sales comparison remains an indicator of continued contraction in activity during the first half of the current fiscal year.

In the first quarter of fiscal 2027, the company had reported a new-customer acquisition cost of $60, compared with $71 in the same quarter a year earlier. At the time, it attributed the decline to optimizing advertising and media spending and removing unproductive spending. The announced 32% reduction in the second quarter is part of the company's stated effort to improve marketing efficiency. But the release does not provide an updated dollar figure for second-quarter acquisition cost, beyond the year-over-year percentage. The priorities the company disclosed therefore focus on controlling marketing alongside improving its website, ease of completing purchases and customer retention.

Willard became chief executive and president of the company effective September 28, 2026, succeeding Leslie Campbell, who had held the interim role since August 2025. He takes the helm as the company begins the period in which it announced a plan to reposition its brand and improve the customer experience. In April, PetMeds announced a partnership with Rural King to launch a pet pharmacy offering through the partner's stores and digital platforms. The company said it would provide the pharmacy infrastructure, licensed pharmacists and e-commerce capabilities to serve Rural King customers. The collaboration offers a way to deliver PetMeds services through the partner's retail and digital sales channels, alongside the direct-to-consumer pharmacy business.

PetMeds said it will host a webcast to review its second-quarter results on November 10, 2026, at 4:30 p.m. Eastern Time. The webcast is scheduled for the day the results are announced, after the quarter ended on September 30. So far, the company's stated focus has been on repositioning the brand and improving marketing, ease of purchase and customer retention. The quarterly figures show annual sales declining to $35.8 million, alongside a 32% year-over-year reduction in the cost of acquiring a new customer. Execution of the stated priorities remains the focus of the company's next phase.