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Wag! Group (PET)
NASDAQ:PET
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Wag! Group
(NASDAQ:PET)
37Underperform
Wag! Group (PET) vs. S&P 500 (SPY)
Market Cap
$7.66M
Dividend YieldN/A
Average Volume (3M)7.77M
Price to Earnings (P/E)―
Beta (1Y)1.83
Revenue Growth-27.81%
EPS Growth-7.85%
CountryUS
Employees64
SectorTechnology
Sector Strength65
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.10
Shares Outstanding50,739,113
10 Day Avg. Volume2,505,561
30 Day Avg. Volume7,768,196
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)-15.69
Price to Sales (P/S)0.00
P/FCF Ratio-0.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.50Price 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 Financial Statement Overview
Summary
Wag! Group faces significant financial challenges with high leverage, negative equity, and consistent operational losses. While the company has demonstrated strong revenue growth historically, recent declines and persistent net losses pose concerns. The financial instability is further exacerbated by negative cash flows, indicating the need for strategic adjustments to achieve profitability and financial sustainability.Income Statement
Wag! Group has shown some positive revenue growth from 2020 to 2022, but revenue declined significantly in 2023. The Gross Profit Margin is strong at 92.5% for 2024, indicating efficient cost management; however, the company continues to operate at a loss with negative Net Profit Margin (-24.9%), EBIT Margin (-14.7%), and EBITDA Margin (-12.5%). Profitability remains a challenge, as evidenced by the increasing net losses over time.35
Negative
Balance Sheet
The balance sheet highlights significant leverage concerns with negative Stockholders' Equity (-$489,000 in 2024), indicating a deficit. The Debt-to-Equity Ratio is not meaningful due to negative equity, and the Equity Ratio is also negative, underscoring financial instability. Persistent liabilities exceed assets, raising potential risks.25
Negative
Cash Flow
The cash flow statement reflects negative operating cash flows and free cash flows, indicating ongoing cash burn and operational challenges. Free Cash Flow improved slightly from 2023 to 2024 but remains negative (-$8.84M). The Operating Cash Flow to Net Income Ratio is also negative, highlighting inefficiencies in cash generation relative to net income.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 70.51M | 83.92M | 54.87M | 20.08M | 11.97M | Gross Profit |
| 65.22M | 76.65M | 50.84M | 17.30M | 9.21M | EBIT |
| -10.38M | -5.07M | -31.13M | -14.01M | -18.97M | EBITDA |
| -8.83M | -4.69M | -35.01M | -10.14M | -18.76M | Net Income Common Stockholders |
| -17.57M | -13.32M | -38.57M | -6.31M | -18.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.63M | 18.32M | 38.97M | 5.40M | 19.41M | Total Assets |
| 29.44M | 46.70M | 52.31M | 16.46M | 23.17M | Total Debt |
| 19.83M | 28.62M | 26.98M | 1.64M | 5.14M | Net Debt |
| 14.20M | 10.29M | -11.99M | -986.00K | 2.09M | Total Liabilities |
| 29.93M | 45.05M | 42.63M | 122.58M | 123.37M | Stockholders Equity |
| -489.00K | 1.65M | 9.68M | -106.11M | -100.19M |
| Cash Flow | Free Cash Flow | |||
| -8.84M | -6.83M | -2.61M | -12.26M | -26.56M | Operating Cash Flow |
| -7.00M | -6.46M | -2.56M | -12.26M | -26.47M | Investing Cash Flow |
| -1.96M | -12.26M | 1.83M | 11.89M | 19.78M | Financing Cash Flow |
| -3.73M | -1.92M | 36.85M | -51.00K | 5.14M |
Wag! Group Technical Analysis
Negative
0.15
Price Trends
0.17
Negative
0.22
Negative
0.47
Negative
Market Momentum
>-0.01
Negative
49.47
Neutral
28.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PET, the sentiment is Negative. The current price of 0.15 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.17, and below the 200-day MA of 0.47, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 28.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $10.96B | 10.27 | -6.73% | 2.97% | 7.73% | -11.60% | |
55 Neutral | $12.19M | 0.07 | ― | -22.61% | -158.44% | ||
46 Neutral | $5.57M | ― | -75.65% | ― | 371.04% | 32.89% | |
37 Underperform | $7.66M | ― | -3036.82% | ― | -27.81% | -7.85% | |
37 Underperform | $5.92M | ― | 230.42% | ― | 3.69% | -50.95% | |
31 Underperform | $16.37M | ― | ― | ― | ― |
* Technology Sector Average
Performance Comparison
PET
Wag! Group
0.15
-2.11
-93.36%
NVNI
Nvni Group
0.47
-0.99
-67.81%
ELWS
Earlyworks Co., Ltd. Sponsored ADR
2.16
-0.82
-27.52%
ULY
Urgent.ly Inc
9.79
-16.01
-62.05%
RYDE
Ryde Group Limited Class A
0.24
-7.49
-96.90%
WCT
Wellchange Holdings Company Limited
0.29
-3.69
-92.71%
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.