WM Technology, Inc. Reports First Quarter 2025 Financial Results

Q1 2025 Net income was $2.5 million, an increase of 27% year-over-year

Tenth Consecutive Quarter of Adjusted EBITDA Profitability

IRVINE, Calif.--(BUSINESS WIRE)--May 08, 2025-- 

WM Technology, Inc. ("WM Technology" or the "Company") (Nasdaq: MAPS), a leading marketplace and technology solutions provider to the cannabis industry, today announced its financial results for the first quarter ended March 31, 2025.

"Our first quarter results reflect focused execution in what remains a challenging environment for the cannabis industry," said Doug Francis, CEO of WM Technology. "While there's been renewed attention around rescheduling, we've seen similar moments before. Until there's concrete progress, meaningful reform is still needed to address the structural headwinds facing operators, brands, and ancillary platforms. In the meantime, we're focused on operating our business with discipline and continuing to deliver technology and data solutions that drive efficiency, transparency, and value."

"Profitability remained strong in the first quarter, reflecting our continued discipline in managing costs and driving operational efficiency," said Susan Echard, CFO of WM Technology. "We're encouraged by the underlying stability in the business and remain focused on making thoughtful investments to support long-term growth."

First Quarter 2025 Financial Highlights

   -- Revenues for the first quarter ended March 31, 2025 was $44.6 million as 
      compared to $44.4 million in the prior year period. The marginal increase 
      from the prior year period was due to an increase in our Weedmaps for 
      Business solution and display advertising revenue, partially offset by a 
      decrease in revenues from our featured and deal listings. 
 
          -- Average monthly paying clients(1) of 5,179 increased from 4,937 in 
             the prior year period, largely due to new client acquisitions 
             across certain markets. 
 
          -- Average monthly revenues per paying client(2) decreased to $2,871 
             from $2,997 in the prior year period, driven by spending declines 
             in established markets driven by continued industry challenges, 
             such as price deflation and ongoing consolidation, which was 
             partially offset by new client acquisitions and spending across 
             certain markets. 
 
   -- Net income increased to $2.5 million from $2.0 million in the prior year 
      period. 
 
   -- Adjusted EBITDA(3) increased to $10.1 million from $9.6 million in the 
      prior year period. 
 
   -- Total shares outstanding across Class A and Class V Common Stock were 
      154.4 million as of March 31, 2025. 
 
   -- Cash increased to $53.3 million as of March 31, 2025, as compared to 
      $35.7 million as of March 31, 2024. The Company generated $1.3 million in 
      the cash for the quarter. 
 
____________________________________ Average monthly paying clients are 
defined as the average of the number of paying clients billed in a month 
across a particular period (and for which services were provided). Average 
monthly revenues per paying client is defined as the average monthly revenues 
for any particular period divided by the average monthly paying clients in the 
same respective period. Average monthly revenues per paying client is 
calculated in the same manner as our previously-reported "Average monthly net 
revenue per paying client," and the description of the metric is being updated 
solely because we changed the reporting line item from "Net revenues" to 
"Revenue". For additional information, see "Basis of Presentation" and 
"Revenue Recognition" of Note 2. "Summary of Significant Accounting Policies," 
of our consolidated financial statements included in our Annual Report on Form 
10-K for the year ended December 31, 2024 filed with the SEC on March 13, 
2025. For further information about how we calculate EBITDA and Adjusted 
EBITDA as well as limitations of their use and a reconciliation of EBITDA and 
Adjusted EBITDA to net income, see "Reconciliation of Net Income to EBITDA and 
Adjusted EBITDA" below. 
 

Business Outlook

Based on information available as of May 8, 2025, WM Technology is issuing guidance for the second quarter of 2025 as follows:

   -- Revenue is estimated to be approximately $45 million. 
 
   -- Non-GAAP Adjusted EBITDA is estimated to be approximately $8 million. 

The guidance provided above is only an estimate of what we believe is realizable as of the date of this release. We are not readily able to provide a reconciliation of projected Non-GAAP Adjusted EBITDA to projected net income without unreasonable effort. This guidance assumes that no business acquisitions, investments, restructurings, or legal settlements are concluded in the period. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in "Forward-Looking Statements." Actual results may vary from the guidance and the variations may be material. We undertake no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Investor Conference Call and Webcasts

We will host a conference call and webcast today, Thursday, May 8, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) at https://edge.media-server.com/mmc/p/2z8bn9nc. A webcast replay will also be archived at ir.weedmaps.com.

We have used, and intend to continue to use, the investor relations portion of our website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.

About WM Technology

Founded in 2008, WM Technology operates Weedmaps, a leading cannabis marketplace for consumers, as well as a broad set of eCommerce and compliance software solutions for cannabis businesses and brands in U.S. state-legal markets. WM Technology holds a strong belief in the power of cannabis and the importance of enabling safe, legal access to consumers worldwide.

Over the past 16 years, the Weedmaps marketplace has become a premier destination for cannabis consumers to discover and browse cannabis-related products, access daily dispensary deals, order ahead for pick-up and delivery by participating retailers (where applicable) and learn about the plant. The Company also offers eCommerce-enablement tools designed to help cannabis retailers and brands reach consumers, create business efficiency, and manage industry-specific compliance needs.

The Company is committed to advocating for full U.S. legalization, industry-wide social equity, and continued education about the plant through key partnerships and cannabis subject matter experts.

Headquartered in Irvine, California, WM Technology supports remote and hybrid work for eligible employees. Visit us at www.weedmaps.com.

Forward-Looking Statements

This press release includes "forward-looking statements" regarding the Company's future business expectations which involve risks and uncertainties. Forward looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including the Company's financial and business performance, including key business metrics and any underlying assumptions thereunder; market opportunity and the Company's ability to acquire new clients and retain existing clients; expectations and timing related to commercial product launches; success of the Company's go-to-market strategy; the Company's ability to scale its business and expand its offerings; the Company's competitive advantages and growth strategies; the Company's future capital requirements and sources and uses of cash; the Company's ability to obtain funding for its future operations; the impact of the material weaknesses in the Company's internal controls and ability to remediate these material weaknesses in the timing the Company anticipates, or at all; the Company's ability to maintain its listing on the Nasdaq Stock Market LLC; the impact of the restatement on our reputation and investor confidence in us and the increased possibility of legal proceedings and regulatory inquiries; the outcome of any known and unknown litigation and regulatory proceedings; changes in domestic and foreign business, market, financial, political and legal conditions; the effect of macroeconomic conditions, including but not limited to inflation, tariffs, public health crises, uncertain credit and global financial markets, past and potential future disruptions in access to bank deposits or lending commitments due to bank failures, current and potential future geopolitical events, including the military conflicts between Russia and Ukraine and the state of war between Israel and Hamas and the related risk of a larger regional conflict, and the occurrence of a

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