WM Technology 2025 Q1 Earnings Net Income Rises 27% Amid Industry Challenges

WM Technology (MAPS) reported its fiscal 2025 Q1 earnings on May 08th, 2025. WM Technology’s Q1 2025 results showed a 27% increase in net income, underscoring its strong performance despite industry challenges. The company slightly exceeded revenue expectations, reporting $44.61 million in revenue against a prior forecast of approximately $44 million. The guidance for Q2 remains in line with projections, estimating revenue at around $45 million and non-GAAP adjusted EBITDA at approximately $8 million, signaling confidence in navigating ongoing market obstacles.

Revenue

WM Technology’s total revenue for Q1 2025 rose by 0.5% year-over-year to reach $44.61 million. The Weedmaps for Business and other SaaS solutions segment contributed $13.64 million. Featured and deal listings generated $27.21 million, while other advertising solutions brought in $3.76 million.

Earnings/Net Income

WM Technology's EPS increased 100% to $0.02 in Q1 2025 from $0.01 in Q1 2024. The company's net income rose to $2.49 million, a 27.3% growth compared to $1.96 million in the previous year. The EPS growth reflects positively on the company's earnings performance.

Price Action

The stock price of WM Technology edged down 1.68% during the latest trading day, dropped 7.14% over the week, and increased 12.50% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing WM Technology shares after a quarter with revenue declines and holding them for 30 days has proven effective over the past five years. This approach has generated an impressive return of 88.17%, slightly lagging behind the S&P 500's return of 93.32% during the same period. Despite its volatility, WM Technology's robust returns highlight the strategy's ability to capitalize on growth opportunities amid short-term market fluctuations. The company's performance, although less consistent than the S&P 500, showcases the potential for significant gains, particularly when navigating through challenging industry conditions. This strategy underscores the importance of seizing growth prospects even when faced with temporary setbacks in revenue figures.

CEO Commentary

Doug Francis, Chief Executive Officer, expressed pride in the company's Q1 performance, noting revenue, adjusted EBITDA, and cash growth exceeded guidance amidst a challenging cannabis industry. He highlighted regulatory obstacles, such as over-taxation and competition from unregulated hemp, impacting operators' cash flow and spending. Despite these challenges, he emphasized the importance of disciplined operations and a lean cost structure, while expressing optimism about technology advancements and a restructured marketing organization. Francis acknowledged the potential of emerging markets and maintained a hopeful outlook for federal cannabis legalization, emphasizing the need for the company to stay close to customers and build for the long term.

Guidance

The company expects Q2 revenues to be approximately $45 million, with non-GAAP adjusted EBITDA estimated at around $8 million. This guidance reflects their continued execution of 2025 plans, demonstrating confidence in navigating ongoing industry challenges while maintaining a focus on strategic investments and client growth.

Additional News

WM Technology recently appointed Sarah Griffis as its Chief Technology Officer, effective January 6, 2025. Griffis brings valuable experience from regulated industries, having served as CTO at Cerebral, a digital healthcare company, and held leadership positions at GoodRx and Kindbody. Her appointment is expected to enhance the company's technology initiatives and operational efficiencies. Additionally, WM Technology received a non-binding proposal from co-founders Douglas Francis and Justin Hartfield regarding a potential take-private transaction, offering $1.70 per share for outstanding common stock. The Board has formed a special committee to evaluate the proposal, emphasizing there is no guarantee of a definitive agreement. Lastly, Glen Ibbott was appointed to the Board of Directors, bringing over 25 years of expertise in the cannabis industry, further strengthening the company’s leadership team.