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Wag! Group (PET)
NASDAQ:PET
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Wag! Group
(NASDAQ:PET)
Rating:47Neutral
Price Target:
$0.00
▼(-100.00%Downside)
Wag! Group (PET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.37M
Dividend YieldN/A
Average Volume (3M)9.29M
Price to Earnings (P/E)―
Beta (1Y)1.95
Revenue Growth-27.81%
EPS Growth-7.85%
CountryUS
Employees64
SectorTechnology
Sector Strength87
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.10
Shares Outstanding50,739,113
10 Day Avg. Volume25,288,535
30 Day Avg. Volume9,287,485
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)5.93
Price to Sales (P/S)0.00
P/FCF Ratio-21.97
Enterprise Value/Market Cap5.43
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit0.78
Enterprise Value/Ebitda-1.61
Forecast
1Y Price Target
$0.50Price Target Upside212.50% Upside
Rating ConsensusHold
Number of Analyst Covering0
Wag! Group Business Overview & Revenue Model
Company DescriptionWag! Group Co. develops and supports a proprietary marketplace technology platform available as a website and mobile app that enables independent pet caregivers to connect with pet parents. Its platform allows pet parents, who require specific pet care services, such as dog walking, pet sitting and boarding, advice from licensed pet experts, home visits, training, and access to other services. The company was founded in 2015 and is based in Purchase, New York.
How the Company Makes MoneyThe company makes money primarily through a commission-based revenue model. Wag! charges pet care providers a percentage of the fees paid by pet owners for each service booked through the platform. This model allows Wag! to generate income from the volume of services transacted on its platform. Additionally, Wag! offers subscription plans for pet owners, providing access to exclusive features and discounts, which also contribute to its revenue streams. Partnerships with pet-related businesses and brands may also play a role in its earnings, though specific details about these are not available.
Wag! Group Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 6.67%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in cost reduction, strategic partnerships, and participant growth, but also highlighted challenges with revenue decline and profitability. The company remains committed to strategic growth and operational efficiency.Q1-2025 Updates
Positive Updates
Improved Adjusted EBITDA
Despite a year-over-year decline in revenue, Wag! delivered improved adjusted EBITDA through disciplined cost management and operational efficiencies.
Cost and Expense Reduction
Total costs and expenses for Q1 were down 25% year-over-year, saving over $6 million.
Strategic Partnerships
All three major distribution partners went live at the end of Q1, expected to significantly impact the insurance comparison business starting Q2.
Increase in Platform Participants
The Wag! platform saw a sequential quarter-over-quarter growth of 6%, reaching 472,000 participants.
Negative Updates
Revenue Decline
Revenue in Q1 2025 was $15.2 million, showing a slight decline versus Q4.
Adjusted EBITDA Loss
The adjusted EBITDA loss for Q1 was $1.2 million.
Cost of Revenue
Cost of revenue was $1.4 million in Q1, which was 10% of revenue, slightly outside the historic range of 7% to 9%.
Platform Operations Costs
Platform operations and support expenses were $2.5 million in Q1, 17% of revenue, slightly above the historic 13% to 15% range.
Company Guidance
During the Q1 2025 earnings call, Wag! provided guidance for the fiscal year 2025, projecting revenue in the range of $84 million to $88 million and adjusted EBITDA between $2 million and $4 million. The company reported Q1 revenue of $15.2 million and an adjusted EBITDA loss of $1.2 million, reflecting a slight decline from the previous quarter. The quarter saw a 6% growth in platform participants, totaling 472,000. Despite a year-over-year decline in revenue, Wag! achieved improved adjusted EBITDA through disciplined cost management, with total costs and expenses down 25% compared to the previous year. Sales and marketing expenses were $10.4 million, aligning with the historical range of 60% to 70% of revenue, while G&A expenses were $4 million, consistent with the 20% to 26% range. The company ended the quarter with $11.7 million in cash and equivalents, and remains focused on enhancing operational efficiencies and strategic partnerships to drive growth.Wag! Group Financial Statement Overview
Summary
The company is facing severe financial challenges with declining revenues, persistent losses, negative stockholders' equity, and high debt levels relative to equity, which highlight financial instability and potential solvency risks. Negative operating and free cash flows further reflect cash flow difficulties.Income Statement
The company has faced declining revenues from $83.9M in 2023 to $62.4M TTM, indicating a revenue contraction. Gross profit margin remains strong, but the consistent negative EBIT and net income suggest ongoing operational challenges and unprofitability.35
Negative
Balance Sheet
The balance sheet reveals negative stockholders' equity in TTM, highlighting financial instability. High debt levels relative to equity suggest potential solvency risks, with a debt-to-equity ratio that cannot be calculated due to negative equity.20
Very Negative
Cash Flow
Negative operating and free cash flows in TTM indicate cash flow difficulties, although there was a slight improvement in free cash flow compared to the previous period. The company struggles to generate sufficient cash from its operations.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.45M | 70.51M | 83.92M | 54.87M | 20.08M | 11.97M |
| Gross Profit | 57.87M | 65.22M | 76.65M | 50.84M | 17.30M | 9.21M |
| EBITDA | -9.81M | -8.83M | -4.69M | -35.01M | -10.14M | -18.76M |
| Net Income | -18.22M | -17.57M | -13.32M | -38.57M | -6.31M | -18.84M |
Balance Sheet | ||||||
| Total Assets | 28.84M | 29.44M | 46.70M | 52.31M | 16.46M | 23.17M |
| Cash, Cash Equivalents and Short-Term Investments | 6.12M | 5.63M | 18.32M | 38.97M | 5.40M | 19.41M |
| Total Debt | 19.68M | 19.83M | 28.62M | 26.98M | 1.64M | 5.14M |
| Total Liabilities | 32.31M | 29.93M | 45.05M | 42.63M | 122.58M | 123.37M |
| Stockholders Equity | -3.47M | -489.00K | 1.65M | 9.68M | -106.11M | -100.19M |
Cash Flow | ||||||
| Free Cash Flow | -7.69M | -8.84M | -6.83M | -2.61M | -12.26M | -26.56M |
| Operating Cash Flow | -5.76M | -7.00M | -6.46M | -2.56M | -12.26M | -26.47M |
| Investing Cash Flow | -2.05M | -1.96M | -12.26M | 1.83M | 11.89M | 19.78M |
| Financing Cash Flow | 1.33M | -3.73M | -1.92M | 36.85M | -51.00K | 5.14M |
Wag! Group Technical Analysis
Positive
0.16
Price Trends
0.14
Positive
0.18
Negative
0.33
Negative
Market Momentum
<0.01
Negative
54.07
Neutral
42.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PET, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.14, and below the 200-day MA of 0.33, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 42.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PET.
Wag! Group Risk Analysis
Wag! Group disclosed 50 risk factors in its most recent earnings report. Wag! Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wag! Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $34.04B | 6.14 | -11.52% | 1.82% | 5.53% | -18.79% | |
53 Neutral | $9.26M | 0.07 | ― | -23.45% | -145.16% | ||
47 Neutral | $8.37M | ― | -3036.82% | ― | -27.81% | -7.85% | |
45 Neutral | $9.65M | ― | -115.53% | ― | 371.04% | 32.89% | |
44 Neutral | $8.49M | ― | 230.42% | ― | 3.69% | -50.95% | |
43 Neutral | $11.05M | ― | ― | ― | ― | ||
| $9.95M | ― | ― | ― | ― |
* Technology Sector Average
Performance Comparison
PET
Wag! Group
0.16
-1.43
-89.94%
NVNI
Nvni Group
0.32
-0.82
-71.93%
ELWS
Earlyworks Co., Ltd. Sponsored ADR
3.20
1.05
48.84%
ULY
Urgent.ly Inc
7.44
-10.92
-59.48%
RYDE
Ryde Group Limited Class A
0.32
-6.10
-95.02%
WCT
Wellchange Holdings Company Limited
0.22
-3.76
-94.47%
Wag! Group Corporate Events
Executive/Board ChangesShareholder MeetingsStock Split
Wag! Group Approves Reverse Stock Split Proposal
Neutral
Jun 18, 2025
At the recent Annual Meeting, Wag! Group successfully elected Class III Directors Garrett Smallwood, Jocelyn Mangan, and Sheila Marcelo to serve until 2028. Additionally, the shareholders ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Furthermore, a proposal was approved to authorize the Board of Directors to amend the Company’s Restated Certificate of Incorporation to effect a reverse stock split of common stock at a ratio between 1-for-10 and 1-for-20, to be determined by the Board.
The most recent analyst rating on (PET) stock is a Buy with a $3.50 price target. To see the full list of analyst forecasts on Wag! Group stock, see the PET Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.