WM Technology reported third‑quarter revenue of $42.2 million, a 9% decline from the $46.6 million earned in the same period a year earlier. The figure falls short of the consensus estimate of roughly $43.4 million, marking a revenue miss of about $1.2 million or 2.8%. EPS for the quarter was $0.02, 50% below the $0.04 consensus, reflecting weaker top‑line growth that was not offset by cost containment.
Cash on hand increased to $62.6 million at September 30, up from $59 million at the end of Q2. Net income for Q3 was $1.8 million, down from $2.2 million in Q2, but the company remained profitable. Adjusted EBITDA fell to $7.6 million from $11.3 million in Q3 2024, a 33% year‑over‑year decline driven by lower client spend and pricing compression.
Revenue was concentrated in the Weedmaps for Business segment, which generated $28.5 million, a 12% decline from the prior year. The featured and deal listings segment contributed $9.3 million, down 8%, while other ad solutions added $4.4 million, a 5% drop. The decline in average monthly revenue per paying client—from $3,043 to $2,693—illustrates the impact of pricing pressure and reduced marketing budgets in key states such as California and Michigan.
Management reiterated its Q4 guidance, projecting revenue of $41 million to $43 million and non‑GAAP adjusted EBITDA of $5 million to $7 million. The midpoint of $42 million is below the $43.8 million consensus, signaling caution about near‑term demand. The company emphasized continued cost discipline and a strategic shift toward higher‑margin “intoxicating hemp” opportunities, suggesting a focus on diversification to offset cannabis‑market headwinds.
CEO Doug Francis said the quarter “reflects disciplined execution in a challenging market” and that the company is “mindful of the challenges ahead and taking a disciplined approach to position the company as the industry continues to evolve.” CFO Susan Echard highlighted that “industry pressures continue to affect our clients’ operating margins and ability to spend on our platform, but our ongoing cost discipline and operational focus have allowed us to remain profitable and maintain a strong balance sheet.” The market reaction was negative, with the stock falling after the announcement, driven primarily by the earnings and revenue misses and the lower‑than‑expected Q4 revenue guidance.
The results underscore persistent pricing compression and margin pressure in the cannabis sector, while the company’s robust cash position and disciplined cost management provide a buffer. However, the declining revenue and adjusted EBITDA, coupled with a cautious outlook, suggest that WM Technology will need to navigate continued headwinds and accelerate growth in new segments to sustain long‑term profitability.
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