Revenue Recognition |
3 Months Ended |
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Jun. 30, 2026 | |
| Revenue from Contract with Customer [Abstract] | |
| Revenue Recognition | Note 2: Revenue Recognition The Company recognizes revenue from product sales, including certain drop-ship arrangements, when control transfers to the customer which generally occurs upon shipment. Revenue is recorded net of sales taxes, discounts and estimated returns. Membership fee revenue is recognized from two models: (1) PetPlus membership for PetCareRx customers, and (2) employer-sponsored parter member membership that provides access to the PetPlus program. Membership fee revenue is recognized ratably over the applicable membership term as the Company satisfies its stand-ready performance obligation. For the three months ended June 30, 2026 and 2025, membership fees earned under the partner programs were $1.2 million and $1.0 million, respectively. Deferred revenue as of June 30, 2026 and March 31, 2026 for these memberships was $0.6 million and $0.7 million, respectively. Revenue recognized during the three months ended June 30, 2026 that was included in the deferred revenue balance at March 31, 2026 was $0.4 million, none of which represented collections for AutoShip products prior to delivery. Revenue recognized during the three months ended June 30, 2025 that was included in the deferred revenue balance at March 31, 2025 was $1.8 million, of which $1.1 million represented collections for AutoShip products prior to delivery. The Company’s customer loyalty program provides customers with a material right and is accounted for as a separate performance obligation. A portion of the transaction price is allocated to loyalty awards and recognized as revenue upon redemption or expiration. As of June 30, 2026 and March 31, 2026, the related contract liability was $2.3 million and $1.9 million, respectively, which is reflected in “Accrued expenses and other current liabilities” on the Condensed Consolidated Balance Sheets. The Company has no material contract asset balances as of June 30, 2026 or March 31, 2026. See Note 2 – Revenue Recognition in the Company’s 2026 Annual Report on Form 10-K for additional information regarding revenue from contracts with customers.
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