Sign in

You're signed outSign in or to get full access.

WT

WM TECHNOLOGY, INC. (MAPS)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 results were in line on revenue but stronger on profitability: revenue of $42.2M (-9% YoY; down sequentially) and Adjusted EBITDA of $7.6M, which came in above the company’s prior $5–$7M guide; net income was $3.6M and diluted EPS was $0.02 . Management guided Q4 2025 revenue to $41–$43M and Adjusted EBITDA to $5–$7M, reflecting continued market pressure and planned investments .
  • Mix and monetization remain the pressure points: average monthly paying clients grew to 5,221 (+2% YoY) but ARPU fell 12% YoY to $2,693 as clients pulled back on higher-visibility placements amid compressed retail margins and pricing deflation in mature states .
  • Balance sheet strength persists: cash ended Q3 at $62.6M (up from $52.0M at YE 2024) and the company reiterated it operates with no debt, supporting flexibility through industry volatility .
  • Industry/regulatory headwinds remain the core narrative; management cited price declines in CA (~9% YoY) and MI (>20% YoY), and a new MI wholesale excise tax (24%) exacerbating client margin compression; near-term catalysts include potential hemp regulation clarity and any progress on rescheduling that could broaden WM’s addressable opportunity .

What Went Well and What Went Wrong

  • What Went Well

    • Profitability and cash generation: “delivering net income of $3.6 million and adjusted EBITDA of $7.6 million… We continue to operate with no debt” .
    • Client footprint expanded: average monthly paying clients rose to 5,221 (+2% YoY), signaling continued acquisition in developing markets even as mature markets churn .
    • Cost discipline: GAAP operating expenses (incl. cost of revenues) decreased YoY; management emphasized “continued benefits of our prior reorganization efforts and disciplined expense management” .
    • Management quote: “We’re mindful of the challenges ahead and are taking a disciplined approach to position the company as the industry continues to evolve.” — CEO Doug Francis .

  • What Went Wrong

    • Revenue decline and ARPU pressure: Q3 revenue fell 9% YoY to $42.2M with ARPU down to $2,693 as clients reduced spend on featured and deal listings first when budgets tighten .
    • Profitability down YoY: net income decreased to $3.6M from $5.3M; Adjusted EBITDA declined to $7.6M from $11.3M as monetization mix and market conditions weighed on margins .
    • Structural headwinds intensifying: pricing deflation (CA ~-9% YoY, MI >-20% YoY) and new MI wholesale excise tax (24%) further compress client economics, pressuring platform spend .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($M)$46.6 $44.6 $44.8 $42.2
Operating Income ($M)$5.2 $2.6 $2.0 $2.0
Net Income ($M)$5.3 $2.5 $2.2 $3.6
Diluted EPS ($)$0.03 $0.02 $0.01 $0.02
Adjusted EBITDA ($M)$11.3 $10.1 $11.7 $7.6
Cash and Equivalents ($M)N/A$53.3 $59.0 $62.6

Notes:

  • Adjusted EBITDA excludes stock-based compensation, changes in warrant liability, legal and other non-recurring charges, changes in TRA liability, and other specified items; see reconciliations in filings .

KPI Trends

KPIQ3 2024Q1 2025Q2 2025Q3 2025
Average Monthly Paying Clients5,100 5,179 5,241 5,221
Avg. Monthly Revenue per Paying Client ($)3,043 2,871 2,852 2,693

Estimate Comparison (S&P Global)

  • Consensus revenue and EPS for Q3 2025 were unavailable via S&P Global at time of retrieval; therefore, estimate comparisons cannot be made. Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ4 2025N/A$41M–$43M New
Adjusted EBITDAQ4 2025N/A$5M–$7M New
Revenue (vs Q3 guide)Q3 2025$41M–$43M (issued 8/7/25) Actual $42.2M In line with guide
Adjusted EBITDA (vs Q3 guide)Q3 2025$5M–$7M (issued 8/7/25) Actual $7.6M Raised vs guide (above high end)

No guidance was provided for OpEx, OI&E, tax rate, or segment-specific metrics.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
Pricing/margin compression in mature statesPersistent headwinds; client spend limited; mix shifts away from premium placements Ongoing; CA flower ~-9% YoY, MI >-20% YoY; monetization pressure persists Negative/stable headwinds
Regulatory/tax environmentConcern over overtaxation; mixed federal signals; tariffs as an emerging cost risk MI adds 24% wholesale excise tax; continued federal uncertainty (hemp, rescheduling) Worsening in certain states
Client acquisition in developing marketsFocus on underpenetrated markets; early traction (e.g., NY) Paying clients +2% YoY; newer markets help offset legacy declines, not yet enough Gradual positive
Monetization mixFeatured/deal listings weaker; shift to standard listings/display ads Higher-visibility placements remain first to be cut; ARPU down 12% YoY Continued mix pressure
AI/ML and data standardizationFoundational AI/ML/data work under new CTO; product catalog/taxonomy improvements Expanding AI/ML teams; aim to be key product dataset for industry Building capability
Hemp strategyConsidering servicing hemp; regulatory uncertainty delaying aggressive moves Hemp remains potential growth opportunity pending federal clarity Awaiting clarity
Balance sheet/cashPositive cash generation; no debt Cash up to $62.6M; continued profitability, no debt Strength sustained

Management Commentary

  • Strategic stance: “We’re mindful of the challenges ahead and are taking a disciplined approach to position the company as the industry continues to evolve.” — CEO Doug Francis .
  • Market headwinds: “Average retail flower prices… are down roughly 9% year-over-year in California and more than 20% in Michigan… These headwinds have weighed on our client profitability… including spend on our platform.” — CEO Doug Francis .
  • Regulatory/tax: “Michigan just added a wholesale excise tax of 24%… magnifying the impact of these commercial forces.” — CEO Doug Francis .
  • Profitability and cost control: “Our ability to manage costs effectively amid a softer revenue environment enabled us to remain profitable… delivering net income of $3.6 million and adjusted EBITDA of $7.6 million.” — Management remarks .

Q&A Highlights

  • The company’s published Q3 2025 call transcript did not include a Q&A session; prepared remarks emphasized market headwinds, cost discipline, client acquisition in developing markets, and cautious Q4 outlook .

Estimates Context

  • Wall Street consensus (S&P Global) for Q3 2025 revenue and EPS was unavailable at the time of retrieval; as a result, we cannot present beats/misses versus consensus. Given this, the key reference point is company guidance: revenue landed within the $41–$43M range and Adjusted EBITDA was above the $5–$7M range. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Profitability resilience vs. soft topline: Revenue was in line with guidance but down YoY; Adjusted EBITDA exceeded guidance, highlighting ongoing cost discipline and operating leverage even with weaker ARPU .
  • KPI signal mixed: Paying clients grew modestly (+2% YoY), but ARPU fell 12% YoY as customers reduced premium placements; watch for stabilization in featured/deal listings mix to re-accelerate monetization .
  • Q4 guide cautious: Revenue $41–$43M and Adjusted EBITDA $5–$7M reflect persistent pressure in mature markets and near-term investment priorities; expect limited near-term upside absent macro/regulatory improvement .
  • Balance sheet optionality: $62.6M cash and no debt provide flexibility to invest through the cycle and pursue opportunities as conditions evolve (e.g., hemp, product expansion, international) .
  • Regulatory watch items: Pricing deflation and new taxes (e.g., MI wholesale excise) remain headwinds; any federal clarity on hemp or rescheduling could be a meaningful upside catalyst for category expansion and monetization .
  • Trading implications: Near term, the narrative skews neutral-to-cautious (topline pressure offset by profitability). A durable turn in ARPU or clearer regulatory tailwinds would be key to multiple expansion; conversely, incremental state-level tax/regulatory changes could weigh further on ARPU and guide.
  • Medium-term thesis: Execution on AI/ML data assets and brand/premium placement products, combined with selective client focus (MSOs/limited-license), sets a path for monetization recovery as industry conditions normalize; monitoring QoQ ARPU and mix shift is critical .