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WM TECHNOLOGY, INC. (MAPS)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $44.612M (+~1% YoY) with adjusted EBITDA of $10.137M and cash of $53.275M; management emphasized “focused execution” despite persistent industry headwinds .
  • The quarter beat prior guidance: revenue vs ~$43M guided and adjusted EBITDA vs ~$7M guided; mix shifted toward standard listings and display ads, while featured/deal listings declined .
  • Q2 2025 guidance: revenue ~ $45M, adjusted EBITDA ~ $8M; sequential revenue guide up but EBITDA guide below Q1 actual, reflecting continued investment and macro pressure .
  • Strategic catalysts: product/tech under new CTO (data infrastructure, taxonomy/search, ML/AI), marketing reorganization with culture-centric campaigns (4/20 activations), and continued client growth in underpenetrated markets .

What Went Well and What Went Wrong

What Went Well

  • Tenth consecutive quarter of adjusted EBITDA profitability; Q1 adjusted EBITDA $10.137M, with CFO noting outperformance from slightly higher revenue and lower-than-anticipated expenses .
  • Client count growth: average monthly paying clients rose to 5,179 (+5% YoY), driven by new acquisitions in certain markets .
  • Product/tech momentum under new CTO: “foundational improvements to our data infrastructure and automation, including better use of machine learning and AI… enhancing our product catalog, taxonomy and search capabilities” .

What Went Wrong

  • Monetization pressure: average monthly revenue per paying client fell to $2,871 from $2,997 YoY, reflecting spend pullbacks in mature markets amid price deflation and consolidation .
  • Product-mix headwind: featured/deal listings revenue declined ~$1.0M YoY; G&A rose $2.9M including ~$2.0M of non-recurring legal/severance, pressuring operating income (Q1 operating income $2.647M vs $3.761M YoY) .
  • Macro/regulatory: CEO highlighted “new source of murkiness from tariffs” and continued lack of federal relief on taxes/banking/rescheduling impacting clients’ margins and spend .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$46.552 $47.670 $44.612
Diluted EPS ($USD)$0.03 $0.02 $0.02
Net Income ($USD Millions)$5.318 $3.716 $2.494
Adjusted EBITDA ($USD Millions)$11.312 $11.918 $10.137
Adjusted EBITDA Margin (%)24.3% (computed from $11.312/$46.552) 25.0% (computed from $11.918/$47.670) 22.7% (computed from $10.137/$44.612)
Operating Income (EBIT) ($USD Millions)$5.204 $4.552 $2.647
EBIT Margin (%)11.2% (computed from $5.204/$46.552) 9.5% (computed from $4.552/$47.670) 5.9% (computed from $2.647/$44.612)
Net Income Margin (%)11.4% (computed from $5.318/$46.552) 7.8% (computed from $3.716/$47.670) 5.6% (computed from $2.494/$44.612)

Segment/product mix (YoY change in Q1 2025):

ProductYoY Change ($USD Millions)Notes
Standard Listings+$0.4Growth tied to new client acquisition in underpenetrated markets
Display Advertising+$0.8Strength despite industry pressures
Featured & Deal Listings-$1.0Discretionary spend decline amid pricing pressures and consolidation

KPIs:

KPIQ3 2024Q4 2024Q1 2025
Average Monthly Paying Clients5,100 5,225 5,179
Average Monthly Revenue per Paying Client ($USD)$3,043 $3,041 $2,871

Balance sheet/cash flow highlights:

  • Cash: $45.043M (Q3 2024) → $51.966M (Q4 2024) → $53.275M (Q1 2025); Q1 cash from operations $5.664M and net increase in cash $1.309M .
  • Shares outstanding across Class A/V: 152.9M (Q3 2024) → 153.4M (Q4 2024) → 154.4M (Q1 2025) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
RevenueQ1 2025~$43M (issued 3/13/2025) Actual $44.612M Beat by ~$1.612M
Adjusted EBITDA (Non-GAAP)Q1 2025~$7M (issued 3/13/2025) Actual $10.137M Beat by ~$3.137M
RevenueQ2 2025N/A~ $45M (issued 5/8/2025) New issuance
Adjusted EBITDA (Non-GAAP)Q2 2025N/A~ $8M (issued 5/8/2025) New issuance

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
AI/technology initiativesWelcomed new CTO; plan to prioritize tech investments; platform foundation focus “Foundational improvements to data infrastructure and automation, better use of ML/AI; enhanced catalog/taxonomy/search to enable next-gen ad products and marketplace innovation” Accelerating execution under new CTO
Supply chain/macroState-level taxes (e.g., CA), NY illicit market, FL adult-use setback; broader industry pressures “New source of murkiness from tariffs” potentially raising client operating costs and compressing margins Worsening macro cost pressure
Product performanceQ4 growth in Deal Listings and Display Ads; featured listings weaker Standard listings +$0.4M; display +$0.8M; featured/deal -$1.0M; mix favoring core listings Mix shifting to base listings; discretionary upsell remains soft
Regional trendsMature markets under pressure; emerging markets subscale; detailed state commentary (CA, NY, FL) Client growth in underpenetrated markets; spend pullbacks in mature markets Ongoing pressure in mature markets, selective growth in underpenetrated markets
Regulatory/legalRestatement of prior revenue/credit losses; continuing legal/advisory costs Non-recurring legal costs ($1.104M) and reduction-in-force expense ($0.879M) in Q1 adjusted EBITDA reconciliation Legal spend persists; workforce realignment underway
Marketing/cultureAnnounced focus on marketing investments for 2025 Marketing reorg; culture-centric “4/20 activations” reconnecting brand with community Early-positive brand engagement

Management Commentary

  • CEO: “Our first quarter results reflect focused execution in what remains a challenging environment… Until there’s concrete progress, meaningful reform is still needed… we’re focused on operating our business with discipline and continuing to deliver technology and data solutions that drive efficiency, transparency, and value.” .
  • CEO: “In Q1, we focused on foundational improvements to our data infrastructure and automation, including better use of machine learning and AI… enhancing our product catalog, taxonomy and search capabilities” .
  • CFO: “Adjusted EBITDA for the first quarter was $10.1 million, which exceeded our expectations… driven by slightly higher-than-expected revenue as well as lower-than-anticipated expenses” .
  • CFO: “We generated $1.3 million in cash from operations and ended the first quarter with a cash balance of $53.3 million. With no debt on our balance sheet, we have the flexibility to make strategic investments…” .

Q&A Highlights

  • The available transcript material consists of prepared remarks; a distinct Q&A segment is not present in the provided documents. Key clarifications were embedded in CFO remarks (product mix shifts, non-recurring charges, expense discipline) and CEO remarks (macro/tariff/regulatory context, technology roadmap) .

Estimates Context

  • Wall Street consensus estimates (S&P Global) for Q1/Q2 2025 were unavailable in our retrieval; we therefore benchmarked against company guidance. Q1 actuals exceeded revenue (~$44.612M vs ~$43M guided) and adjusted EBITDA ($10.137M vs ~$7M guided); Q2 guidance implies sequential revenue uptick to ~$45M and adjusted EBITDA of ~$8M .
  • Consensus estimates data from S&P Global was not available for MAPS for these periods in our query; as such, estimate comparisons are noted as unavailable.

Key Takeaways for Investors

  • Results modestly grew YoY and materially beat guidance on both revenue and adjusted EBITDA, despite a tougher macro/regulatory backdrop—underscoring ongoing cost discipline and cash generation .
  • Product mix dynamics matter: strength in standard listings and display ads offset declines in featured/deal listings; expect ARPU variability as mature-market pressures persist and new clients onboard at lower spend levels .
  • Near-term guide signals caution: Q2 adjusted EBITDA guide ($8M) below Q1 actual ($10.137M) as investments proceed amid macro/tariff uncertainty; sequential revenue guide up to ~$45M provides some offset .
  • Strategic execution under new CTO is a medium-term thesis lever: ML/AI and search/catalog upgrades should improve marketplace quality and ad product efficacy over time; marketing reorg strengthens brand-culture linkage .
  • Legal and restructuring costs are present but manageable; watch for continued non-GAAP adjustments and their impact on reported profitability and cash conversion .
  • Client growth in underpenetrated markets is encouraging; sustained ARPU improvement likely contingent on stabilization in mature markets or regulatory relief (e.g., taxes, banking, rescheduling) .
  • Without available Street consensus, trading setups will hinge on company guide adherence and narrative shifts (tariffs/regulatory headlines). Monitor Q2 revenue trajectory vs guide and OpEx discipline to gauge margin sustainability .