Executive Summary

Q3 2024 delivered net revenues of $46.6M (up from $45.9M in Q2 and slightly below $46.7M YoY), diluted EPS of $0.03, adjusted EBITDA of $11.3M, and ending cash of $45.0M; this marks the eighth consecutive quarter of adjusted EBITDA profitability .
Revenue and adjusted EBITDA exceeded internal guidance (Q2 guided Q3 revenue to ~$44M and adj. EBITDA to ~$7M; actuals were $46.6M and $11.3M), driven by better-than-expected revenues and operational discipline .
Q4 2024 guidance: net revenues approximately $46M and adjusted EBITDA approximately $7M; management highlighted continued investment in marketplace adjacencies and disciplined execution heading into 2025 .
Stock-reaction catalysts: CEO appointment of co-founder Doug Francis, permanent CFO appointment of Susan Echard, eight-quarter EBITDA streak, rising cash balance, and commentary on potential regulatory shifts (Schedule III and hemp) .

What Went Well and What Went Wrong

What Went Well

Revenue and adjusted EBITDA beat guidance; CFO: “Q3 adjusted EBITDA… beat our guidance due to our better-than-expected revenues as well as the operational discipline we continue to maintain throughout the organization” .
Positive cash generation and debt-free balance sheet; cash increased to $45.0M from $34.4M at YE23, providing flexibility to pursue strategic initiatives .
Sequential improvement in paying clients and ARPU: average monthly paying clients increased to 5,100 (from 5,045 in Q2) and average monthly net revenues per paying client rose to $3,043 (from $3,033 in Q2) .

What Went Wrong

Slight YoY revenue decline (impacted by sunset of products in Q4’23) and lower client count YoY (industry headwinds include price deflation and consolidation) .
Ongoing regulatory uncertainty (federal rescheduling timing, hemp policy) tempering near-term growth visibility; CEO cautioned about timelines and potential unintended impacts of reforms .
Continued industry challenges constrain client marketing budgets; featured listings spend lower YoY, partially offset by growth in standard listings .

Financial Results

Quarter-over-Quarter Trend (2024)

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$44.389	$45.903	$46.552
Diluted EPS ($USD)	$0.01	$0.01	$0.03
Net Income ($USD Millions, attributable to WM Technology, Inc.)	$1.240	$0.716	$3.332
Adjusted EBITDA ($USD Millions)	$9.599	$10.090	$11.312
Adjusted EBITDA Margin (%)	N/A	22%	24%

Year-over-Year Comparison (Q3)

Metric	Q3 2023 (As Restated)	Q3 2024
Revenue ($USD Millions)	$46.687	$46.552
Diluted EPS ($USD)	-$0.02	$0.03
Net Income ($USD Millions, attributable to WM Technology, Inc.)	-$1.538	$3.332
Adjusted EBITDA ($USD Millions)	$10.671	$11.312

KPIs

KPI	Q1 2024	Q2 2024	Q3 2024
Average Monthly Paying Clients	4,937	5,045	5,100
Avg Monthly Net Revenues per Paying Client ($USD)	$2,997	$3,033	$3,043

Note: Company restated certain 2023 quarterly revenues and credit losses; no impact to operating income, net income, net cash provided by operating activities, or adjusted EBITDA for those periods .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3 2024	~$44M (issued 8/8/24)	N/A (not updated in Q3 release)	N/A
Adjusted EBITDA	Q3 2024	~$7M (issued 8/8/24)	N/A	N/A
Revenue	Q4 2024	N/A	~$46M	Initiated
Adjusted EBITDA	Q4 2024	N/A	~$7M	Initiated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Regulatory/macro (Schedule III, federal, hemp)	Cautious on rescheduling outcome/timing; largely stayed out of intoxicating hemp pending federal clarity	CEO notes election-driven uncertainty; hopeful but cautious; expects some states to ban or fold hemp into regulated models; tempered growth expectations	Heightened focus; cautious stance maintained
Marketplace strategy and adjacencies	Emphasis on operational discipline; balance-sheet strength; preparing initiatives for 2025	Vertical expansion of core marketplace and horizontal adjacencies (hemp, seeds/homegrown, “elevated head shop”) under development	Expanding scope, near-term low-risk deployments
Profitability and cash discipline	Positive cash flow; adj. EBITDA beat expectations; debt-free	Eighth consecutive quarter of adjusted EBITDA profitability; cash up to $45M; debt-free	Sustained execution; strengthening liquidity
Product/technology initiatives	Working with tech partners; standard listings growth; featured listings spend down	Continued product development investment; marketplace feature additions forthcoming	Building for 2025; product pipeline evolving
Regional trends (NY market)	Expanded presence; NY Q1 category mix (flower 53%, edibles 27%, vape 15%); higher AOV vs national	Continued focus on developing markets and onboarding at lower spend levels	Ongoing penetration; mix shifts persist
Health features	NuggMD telehealth partnership pilot (5 states) to streamline medical card process	N/A in Q3 call remarks	Program in flight; strategic adjacency

Management Commentary

CEO: “Our third quarter results mark yet another consecutive period of strong financial performance and positive cash flow… with our increasing cash and debt-free balance sheet, we are well-positioned to make strategic growth investments in our people and marketplace as we move into next year” .
CFO: “Q3 adjusted EBITDA of $11.3 million, which represents a 24% margin, beat our guidance due to our better-than-expected revenues as well as the operational discipline we continue to maintain throughout the organization” .
CEO on regulatory path: “It is unclear whether the incoming… administration will continue the progress… towards rescheduling cannabis to Schedule III… we firmly believe cannabis should be treated like wine and not on any schedule” .
Strategy: Expanding marketplace in two dimensions—vertical (new products/features) and horizontal (hemp, seeds/homegrown, elevated head shop) with disciplined capital deployment .

Q&A Highlights

The call concluded after prepared remarks with no Q&A session; management provided guidance and strategic commentary without a Q&A segment .

Estimates Context

Wall Street consensus estimates from S&P Global were unavailable at the time of analysis due to data-access limits; therefore, comparisons vs consensus cannot be provided. Values retrieved from S&P Global.*
As context, company-issued guidance for Q3 (from Q2) was ~$44M revenue and ~$7M adjusted EBITDA; actual Q3 results were $46.6M revenue and $11.3M adjusted EBITDA, reflecting an internal beat vs guidance .

Key Takeaways for Investors

Internal beat vs guidance on both revenue and adjusted EBITDA, with eight straight quarters of adjusted EBITDA profitability—supports near-term confidence in cost discipline and monetization of core offerings .
Cash increased to $45.0M and debt-free status provides strategic flexibility; expect continued investment in marketplace features and adjacent categories (hemp, seeds/homegrown) with low near-term risk .
Modest YoY revenue decline and lower client count reflect sunset product impact and industry consolidation; stabilization in ARPU (sequential uptick) indicates improving quality of client base .
Regulatory trajectory remains a swing factor; management is cautious on federal rescheduling timelines and hemp market structure—policy clarity could unlock upside, but timing uncertain .
2024 Q4 guide (~$46M revenue, ~$7M adj. EBITDA) positions the company for stable close to the year; watch execution on product roadmap and adjacencies as catalysts into 2025 .
Governance and leadership continuity enhanced: Doug Francis named CEO; Susan Echard confirmed as permanent CFO—signals focus on long-term execution and financial rigor .
Absent consensus data, traders should anchor to company guidance and sequential momentum; potential catalysts include roadmap disclosures, regulatory developments, and continued cash build .

Footnote: *Values retrieved from S&P Global.

WM TECHNOLOGY, INC. (MAPS)·Q3 2024 Earnings Summary