Wag! Group (PET) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $15.2 million, down from $23.2 million in Q1 2024, reflecting a 34.7% year-over-year decline and a 30% drop in platform participants.

• Net loss for Q1 2025 was $4.9 million, compared to $4.2 million in Q1 2024; adjusted EBITDA loss was $1.2 million versus positive $0.2 million last year.

• Results were slightly ahead of internal profitability expectations due to disciplined cost management and operational efficiencies.

• Early traction from new distribution partnerships and strong business trends noted through April and May.

• The company is actively pursuing strategic alternatives, including refinancing, partnerships, or a sale, as debt matures in August 2025 and delisting from Nasdaq is pending.

Financial highlights

• Q1 2025 revenue was $15.2 million, with an adjusted EBITDA loss of $1.2 million and net loss margin of (32.2%), both down from Q1 2024.

• Services revenue: $4.9 million; wellness: $9.2 million; pet food and treats: $1.1 million.

• Total costs and expenses decreased 25% year-over-year, down by over $6 million.

• Net cash provided by operating activities was $1.4 million, up from $0.2 million in Q1 2024.

• Cash and cash equivalents at quarter-end were $6.1 million, with $19.7 million in outstanding debt.

Outlook and guidance

• Full-year 2025 revenue expected between $84 million and $88 million.

• Full-year 2025 adjusted EBITDA forecasted in the range of $2 million to $4 million.

• Management expects operating losses to continue as investments in business growth persist.

• The company’s ability to continue as a going concern depends on successful refinancing, strategic transactions, or new financing before August 2025.

• Board is reviewing strategic alternatives, but there is no assurance of a successful outcome before debt maturity.