WM Technology reported third‑quarter 2025 results that fell short of analyst expectations. Revenue declined 9% year‑over‑year to $42.18 million, while earnings per share dropped to $0.02 from $0.04 consensus, a 50% miss. Net income fell to $3.6 million and adjusted EBITDA contracted to $7.6 million from $11.3 million in Q3 2024. The shortfall was driven by continued pricing pressure in core markets, a shift toward lower‑spending new clients, and constrained marketing budgets that limited the company’s ability to generate higher‑margin listings.
The revenue mix reflected a 56% concentration in California, with $13.1 million coming from Weedmaps for Business and other SaaS solutions, $25.6 million from featured and deal listings, and $3.5 million from other advertising solutions. The decline in featured and deal listings was the primary contributor to the overall revenue drop, while the modest increase in average monthly paying clients (up 2% YoY to 5,221) was offset by a 12% decline in average revenue per client, which fell to $2,693 from $3,043.
CEO Douglas Francis said the quarter demonstrated “disciplined execution in a challenging market.” CFO Susan Echard highlighted that “industry pressures continue to affect our clients’ operating margins, but our cost discipline and operational focus have allowed us to remain profitable and maintain a strong balance sheet.” She noted the company’s eighth consecutive quarter of adjusted EBITDA profitability, underscoring a focus on sustaining profitability amid market softness.
Management guided for Q4 2025 revenue of $41 million to $43 million and adjusted EBITDA of $5 million to $7 million—both below consensus estimates of $44 million and $8 million, respectively. The lower guidance signals management’s concern about near‑term macro conditions and pricing headwinds, while the company’s strong cash position of $62.6 million and debt‑free balance sheet provide a cushion for strategic investments.
After the earnings call, the market reacted negatively, with the stock falling 2.86% in regular trading and a slight further decline in aftermarket trading. The decline was driven by the earnings miss on both EPS and revenue, the year‑over‑year revenue decline, and the lower Q4 guidance, all of which disappointed investors who had expected stronger performance.
The results highlight a challenging period for WM Technology. While the company’s cash reserves and debt‑free status offer resilience, the revenue decline, margin compression, and lower guidance point to ongoing headwinds such as pricing pressure, market consolidation, and constrained client budgets. The modest increase in paying clients suggests some resilience in the customer base, but the drop in revenue per client underscores the need for the company to navigate pricing challenges and maintain profitability in a competitive environment.
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