WM Technology Forecasts $45M Revenue in Q2 2025 Despite Industry Hurdles

Insights from the Earnings Call: WM Technology, Inc. (MAPS) First Quarter of 2025

Management View

• CEO Doug Francis emphasized that the firm exceeded its Q1 projections, showing increases in both revenue and adjusted EBITDA along with boosted cash holdings, even amid the tough conditions within the marijuana sector. However, he voiced worries regarding the lack of progress on regulations and how this stagnation negatively impacts the market through excessive taxation as well as increased rivalry from non-regulated hemp goods.

• Management emphasized progress in technology, including enhancements to data infrastructure, automation, and product catalog capabilities under the new Chief Technology Officer. The CEO noted the restructuring of the marketing organization and its focus on reconnecting with the cannabis culture.

• Chief Financial Officer Susan Echard announced a first-quarter revenue of $44.6 million, showing a modest rise from the previous year. This improvement was mainly due to increases in standard listings and display advertising revenues, which were somewhat counterbalanced by decreases in featured and deal listings. By the end of the period, the firm had accumulated $53.3 million in cash without any debt, representing the seventh successive quarter of rising cash reserves.

Outlook

• The CFO, Mr. Echard, offered insights into the second quarter of 2025, forecasting revenues to reach $45 million with an adjusted EBITDA of around $8 million. The management team reaffirmed their dedication to maintaining prudent investment approaches alongside focusing on sustained expansion over time.

• The company is prioritizing foundational improvements in technology and marketing to strengthen the Weedmaps platform and adapt to industry headwinds.

Financial Results

• The revenue for the first quarter of 2025 amounted to $44.6 million, marking only a slight $0.2 million rise compared to the previous year. This growth can be attributed primarily to increases in standard listings and display advertisements; however, featured and deal listings experienced a drop of about $1 million.

• The number of average monthly paying customers rose by 5% to reach 5,179, whereas the average monthly revenue per paying customer dropped to $2,871, indicating economic challenges faced by clientele in established markets.

• For the quarter, Adjusted EBITDA hit $10.1 million, surpassing projections thanks to unexpectedly low costs and marginally greater income.

• Operational costs increased marginally to $42 million, primarily due to a rise of $2.9 million in general and administrative expenditures, which included $2 million in one-time fees. The net income enhanced to $2.5 million, an improvement from the previous year’s figure of $2 million.

Q&A

• NOT_APPLICABLE: The transcript lacked both a Q&A segment and analyst inquiries.

Sentiment Analysis

• Experts voiced worries regarding the regulatory landscape and how it affects the marijuana sector.

• The management kept an upbeat yet wary stance, underscoring their strict operational approach and long-term plans. CEO Francis stressed the company’s toughness and advancements in tech and marketing efforts.

• In comparison to the prior quarter, the tone showed a continuous recognition of difficulties alongside an emphasis on adopting strategies and planning proactively.

Quarter-over-Quarter Comparison

• The revenue dropped from $47.7 million in the fourth quarter of 2024 to $44.6 million in the first quarter of 2025, largely due to decreases in featured and deal postings.

• The Adjusted EBITDA fell from $11.9 million in the fourth quarter of 2024 to $10.1 million in the first quarter of 2025. Nonetheless, cash reserves saw a slight rise from $52 million to $53.3 million.

• The management style stayed uniform, focusing on disciplined investing and long-term strategy even as the sector faced continuous difficulties.

Risks and Concerns

• The management highlighted regulatory inactivity, excessive taxation, and rivalry from uncontrolled hemp as major hurdles for the marijuana sector.

• Emerging risks such as tariffs and price sensitivities were highlighted as factors that might further squeeze client profit margins.

• Experts expressed worries over ongoing fiscal strains affecting customers and the likelihood of increased mergers within the marketplace.

Final Takeaway

In the first quarter of 2025, WM Technology showed remarkable resilience by experiencing an increase in revenues and sustaining a robust cash reserve, even as the cannabis sector faced significant hurdles. The leadership highlighted key investments in technological advancements and promotional strategies aimed at boosting their service offerings and fostering sustainable expansion over time. For the second quarter of 2025, they anticipate earnings of around $45 million, indicating a stance of guarded positivity considering ongoing regulatory constraints and market dynamics.

Review the complete earnings call transcript.