Wag! Group (PET) AI Stock Analysis

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Wag! Group

(NASDAQ:PET)

Rating:44Neutral

Price Target:

$0.00

▼(-100.00%Downside)

PET's overall score reflects significant financial challenges, including declining revenues, negative equity, and unprofitability. Technical analysis provides a slight positive offset with neutral momentum, while valuation concerns persist due to a negative P/E ratio. The earnings call highlighted some strategic improvements but also underscored ongoing revenue and profitability issues.

Wag! Group (PET) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$7.58M

Dividend YieldN/A

Average Volume (3M)1.95M

Price to Earnings (P/E)―

Beta (1Y)1.64

Revenue Growth-27.81%

EPS Growth-7.85%

CountryUS

Employees64

SectorTechnology

Sector Strength84

IndustrySoftware - Application

Share Statistics

EPS (TTM)-0.10

Shares Outstanding50,739,113

10 Day Avg. Volume1,657,971

30 Day Avg. Volume1,953,545

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 Cap5.99

Enterprise Value/Revenue0.15

Enterprise Value/Gross Profit0.78

Enterprise Value/Ebitda-1.61

Forecast

1Y Price Target

$0.50

Price Target Upside233.33% Upside

Rating ConsensusHold

Number of Analyst Covering1

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 MoneyWag! Group generates revenue through a commission-based model, where it takes a percentage of the fees charged by pet care providers who use its platform. Pet owners pay for services such as dog walking, pet sitting, and training, and Wag! retains a portion of these payments as commission. Additionally, the company may offer subscription services that provide pet owners with discounted rates or exclusive access to premium features on the app. Partnerships with pet product companies or brands may also contribute to its revenue, through sponsorships or promotional collaborations.

Wag! Group Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q1-2025)

% Change Since: 0.00%|

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

Negative

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.

Balance Sheet

Very Negative

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.

Cash Flow

Negative

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
-12.45M	-10.38M	-5.07M	-31.13M	-14.01M	-18.97M
	EBITDA
-9.81M	-8.83M	-4.69M	-35.01M	-10.14M	-18.76M
	Net Income Common Stockholders
-18.22M	-17.57M	-13.32M	-38.57M	-6.31M	-18.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.12M	5.63M	18.32M	38.97M	5.40M	19.41M
	Total Assets
28.84M	29.44M	46.70M	52.31M	16.46M	23.17M
	Total Debt
19.68M	19.83M	28.62M	26.98M	1.64M	5.14M
	Net Debt
13.55M	14.20M	10.29M	-11.99M	-986.00K	2.09M
	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

Technical Analysis Sentiment

Positive

Last Price0.15

Price Trends

50DMA

0.14

Positive

100DMA

0.20

Negative

200DMA

0.38

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

52.27

Neutral

STOCH

27.45

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 0.15 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.14, and below the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 27.45 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
ULY	47 Neutral	$5.60M	0.07		―	-23.45%	-145.16%
ELWS	45 Neutral	$6.18M	―	-75.65%	―	371.04%	32.89%
PET	44 Neutral	$7.58M	―	-3036.82%	―	-27.81%	-7.85%
NVNI	41 Neutral	$12.43M	―		―	―	―
RYDE	41 Neutral	$5.44M	―	230.42%	―	3.69%	-50.95%
WCT		$11.38M	―		―	―	―

* Technology Sector Average

Performance Comparison

PET

Wag! Group

0.15

-1.38

-90.20%

NVNI

Nvni Group

0.39

-1.00

-71.94%

ELWS

Earlyworks Co., Ltd. Sponsored ADR

2.06

0.13

6.74%

ULY

Urgent.ly Inc

4.32

-18.96

-81.44%

RYDE

Ryde Group Limited Class A

0.21

-6.74

-96.98%

WCT

Wellchange Holdings Company Limited

0.24

-3.74

-93.97%

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.