WM TECHNOLOGY, INC. (MAPS)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $44.8M, down 2% YoY and roughly flat QoQ; diluted EPS was $0.01. Adjusted EBITDA rose 16% YoY to $11.7M, and cash increased to $59.0M; management emphasized strong cash generation and no debt .
• Mix shift continued: average monthly paying clients increased to 5,241 (+4% YoY) while average monthly revenue per client fell to $2,852 (-6% YoY), reflecting spending pressure in mature markets and lower initial spend from new clients .
• Guidance for Q3 2025 was lowered versus Q2’s internal blueprint: revenue $41–43M and Adjusted EBITDA $5–7M, citing persistent softness in key markets and planned investments to support future growth .
• Strategic catalysts: new premium placement products for brands, AI/ML expansion on product data standardization, and near‑term launch of “Hetty,” an online head shop; regulatory risks in CA (excise tax to 19%, potential marketplace regulation) and price compression in MI remain headwinds .
• Governance backdrop: co-founders withdrew a take-private proposal (June 25, 2025), though may submit alternatives; Special Committee retained Evercore—an ongoing potential stock catalyst .

What Went Well and What Went Wrong

• What Went Well
  • Cash rose to $59.0M with no debt; eighth consecutive quarter of positive cash generation, underscoring operational discipline and flexibility .
  • Adjusted EBITDA was $11.7M (+16% YoY), reflecting cost control and add-backs for nonrecurring items; sustained profitability despite revenue softness .
  • Early wins in emerging markets (e.g., New York) with accelerating client onboarding and rising retail density on the platform; pipeline of premium brand placements and AI/ML data initiatives building incremental revenue opportunities .
• What Went Wrong
  • Revenue declined 2% YoY to $44.8M as featured/deal listings weakened and mature markets faced price deflation and consolidation, cutting discretionary marketing spend .
  • Average monthly revenue per paying client fell to $2,852 (-6% YoY), with new clients ramping from lower initial spend and established clients trimming budgets .
  • Q3 2025 guidance reset lower (revenue $41–43M, Adjusted EBITDA $5–7M) due to persistent pressures in CA and MI, uncertain hemp regulation, and planned investments; AWS purchase obligation shortfall created a $2.3M loss contingency in Q2 .

Financial Results

Non-GAAP adjustments in Q2: stock-based comp $2.624M; legal settlements/other $1.436M; change in warrant liability ($0.390M); loss contingency $2.324M; change in TRA liability $0.545M—collectively driving Adjusted EBITDA above GAAP EBITDA .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• CEO: “Despite ongoing pressure in several of our key markets… We delivered another consecutive quarter of adjusted EBITDA profitability and positive cash flow… milestones that reflect the consistency and operational rigor we’ve maintained quarter after quarter.” Emphasized CA tax increase and regulatory uncertainty; highlighted NY client onboarding and premium placements pipeline .
• CEO: “We are also expanding our AI and ML teams and capabilities… our team is making great progress to becoming the key dataset for the industry… laser focused on entrenching our data and ML tools” .
• CFO: “Revenue… declined 2% YoY… partially offset by an increase in display advertising revenue… GAAP OpEx… decreased ~4% YoY… G&A increased ~$2.2M largely due to a one-time non-cash loss contingency with our server provider… net income of $2.2M and Adjusted EBITDA of $11.7M… cash $59M, no debt” .
• Press release framing: “We delivered a solid quarter, generating strong cash flow… Broader industry challenges persist… We remain committed to execution” and “strong financial position… no debt on the balance sheet” .

Q&A Highlights

• The posted Q2 2025 call contained prepared remarks only; no analyst Q&A session was included in the transcript, and the call concluded after management commentary .

Estimates Context

• S&P Global consensus estimates for MAPS Q2 2025, Q3 2025, and FY 2025 were unavailable at the time of query; therefore, beat/miss versus Wall Street cannot be assessed using SPGI data (Values retrieved from S&P Global)*.
• Relative to company-issued guidance, Q2 revenue modestly missed (~$44.8M vs $45M), while Adjusted EBITDA materially beat ($11.7M vs ~$8M), implying stronger cost discipline and non-GAAP add-backs offset revenue softness .

Key Takeaways for Investors

• Profitability and cash generation remain the core strengths: Q2 Adjusted EBITDA +16% YoY and cash at $59M with no debt provide downside protection amid industry volatility .
• Revenue headwinds likely persist near term, with Q3 guide down to $41–43M and adj. EBITDA $5–7M, as CA/MI dynamics weigh and investments ramp; expect estimate revisions lower on the top line and margins vs Q2 levels .
• Product roadmap is turning into near-term catalysts: premium brand placements, AI/ML-driven catalog standardization, and “Hetty” launch could diversify revenue away from pressured listings, partially offsetting mature-market weakness over time .
• KPIs show healthy client acquisition (+4% YoY), but monetization per client is under pressure; watch for mix shift and upsell traction as new products scale .
• Non-GAAP adds (legal costs, AWS loss contingency, TRA changes) supported Adjusted EBITDA; monitor repeatability of these adjustments and their net impact on cash versus GAAP profitability .
• Governance is a wild card: withdrawal of the take-private proposal keeps optionality open; Special Committee and advisors remain engaged—potential for renewed strategic activity could drive stock volatility .
• Near-term trading lens: Q3 guide-down and CA regulatory headlines are likely overhangs; medium-term thesis hinges on execution of brand placements and data/AI advantages to stabilize growth while maintaining cash-positive operations .