Wag! Group Co. announced its financial results for the first quarter ended March 31, 2025, reporting revenues of $15.2 million. This represents a 34.7% decrease compared to $23.2 million in the first quarter of 2024. Despite the revenue decline, the Adjusted EBITDA loss improved year-over-year to $1.2 million, reflecting disciplined cost management.
The company's liquidity position as of March 31, 2025, included $6.1 million in cash and cash equivalents and $5.5 million in accounts receivable. Total debt outstanding was $19.7 million, with a $0.2 million PPP loan and a $19.5 million senior secured term loan maturing in August 2025. Management concluded there is substantial doubt about the company's ability to continue as a going concern for at least one year from the May 12, 2025 filing date.
In April 2025, the senior secured term loan was amended, adjusting covenants and adding a $0.4 million paid-in-kind fee, increasing the outstanding balance to approximately $19.9 million. The lender, Blue Torch Finance, LLC, assigned its rights to Retriever LLC on April 11, 2025. The company is actively pursuing refinancing discussions and exploring strategic alternatives, including potential asset sales, to address the debt.
Wag! also received a notice of non-compliance with Nasdaq's minimum bid price and market value requirements in March 2025. The company appealed this determination in April 2025 and had a hearing on May 8, 2025. There is no assurance that the appeal will be successful, and a delisting could further limit access to capital markets.
For the full year 2025, management projects revenue between $84 million and $88 million and Adjusted EBITDA between $2 million and $4 million. This guidance relies on sequential growth driven by new distribution partnerships in the Wellness segment and continued operational improvements. The successful launch and scaling of the Furmacy platform in Q1 2025 is also expected to contribute to future growth.
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