PetMed Express Q3 2025: Navigating Customer Trends and Marketing Challenges Amid Contradictory Insights

These are the key contradictions discussed in PetMed Express's latest 2025 Q3 earnings call, specifically including: Customer Behavior and Market Trends, and Marketing Strategy and Investments:



Financial Performance and Profitability:
- PetMed Express achieved $2 million in adjusted EBITDA in Q3, representing a $1.1 million year-over-year improvement, and reduced G&A expenses by $2.6 million compared to last year.
- The improvement in EBITDA and cost reduction was driven by cost-cutting measures and consolidation strategies, targeting $5 million in annualized savings.

Customer Acquisition and Growth:
- The company welcomed approximately 63,000 new customers who received an order this quarter, contributing to an increase in gross order AOV by 7% to $108.
- These trends were supported by enhancements to the digital shopping experience, the introduction of buy-now-pay-later options, and a new educational platform for pet health guidance.

Technological Investments and Modernization:
- PetMed Express resolved OMS issues and successfully replatformed its AutoShip recurring subscription program without disruption, leading to improvements in AutoShip sign-ups and credit card rejection rates.
- These advancements are part of a strategic effort to modernize the tech stack and improve website performance, as indicated by a 30% increase in PDP views and a 6.5% decline in bounce rates.

Marketing Strategy and Brand Positioning:
- The company reduced its gross advertising spend by $2.8 million year-over-year, prioritizing margin protection over aggressive promotions during a competitive and promotional holiday environment.
- Despite this reduction, PetMed Express remains focused on long-term brand investment through radio, connected TV, sports team partnerships, and local pet adoption events to establish brand authority and awareness.