By Dean Seal

PetMed Express said that it would have to restate financial results, and separately revealed that its former chief executive was asked to resign after hiring her nephew to a mid-level role.

The revelations arrived when the pet-pharmacy company, which owns PetCareRx, released the results of an internal audit committee investigation that was disclosed in August following the departures of Chief Executive Sandra Campos and Chief Financial Officer Robyn D'Elia.

The company said Tuesday that the investigation, conducted from June to August, was tied to two separate whistleblower reports from April regarding the timing of revenue recognition with respect to certain AutoShip orders, $50 coupon promotions and the company's culture and control environment.

Among the investigation's findings were that Campos hired her nephew for a mid-level position but failed to immediately inform the company of her family relationship with the new hire, who was also reporting directly to her for a period of time.

The committee also found that PetMed accelerated the shipment of products to its AutoShip customers between the last calendar quarter of 2024 and the two calendar quarters of 2025. Doing so caused revenue to be erroneously recorded in certain quarters, the company said.

Neither D'Elia nor Diana Purcel, the company's former audit committee chair, reported the whistleblower complaints to PetMed's external auditors on a timely basis, according to the findings.

As part of a resulting remediation plan, the company's board requested and accepted resignations from Campos, D'Elia and Purcel. PetMed is now in the process of finalizing a restatement of certain financial statements affected by the audit committee's findings.

The probe also looked into the company's issuance of $50 coupons to new customers, but found that a while a small amount of expenses were erroneously recorded as a result of the coupons due to their initially lacking a minimum order size requirement, they didn't have a material impact on PetMed's new customer key-performance indicators.

The audit committee has recommended that PetMed replace its CEO, CFO and audit committee chair, implement enhanced training on the company's code of ethics, correct certain accounting errors and strengthen PetMed's internal controls over financial reporting and operations.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

October 07, 2025 17:25 ET (21:25 GMT)

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