WM Technology, Inc. Reports First Quarter 2025 Financial Results
Q1 2025 Net income was
“Our first quarter results reflect focused execution in what remains a challenging environment for the cannabis industry,” said
“Profitability remained strong in the first quarter, reflecting our continued discipline in managing costs and driving operational efficiency,” said
First Quarter 2025 Financial Highlights
-
Revenues for the first quarter ended
March 31, 2025 was$44.6 million as compared to$44.4 million in the prior year period. The marginal increase from the prior year period was due to an increase in our Weedmaps for Business solution and display advertising revenue, partially offset by a decrease in revenues from our featured and deal listings.- Average monthly paying clients(1) of 5,179 increased from 4,937 in the prior year period, largely due to new client acquisitions across certain markets.
-
Average monthly revenues per paying client(2) decreased to
$2,871 from$2,997 in the prior year period, driven by spending declines in established markets driven by continued industry challenges, such as price deflation and ongoing consolidation, which was partially offset by new client acquisitions and spending across certain markets.
-
Net income increased to
$2.5 million from$2.0 million in the prior year period. -
Adjusted EBITDA(3) increased to
$10.1 million from$9.6 million in the prior year period. -
Total shares outstanding across Class A and Class V Common Stock were 154.4 million as of
March 31, 2025 . -
Cash increased to
$53.3 million as ofMarch 31, 2025 , as compared to$35.7 million as ofMarch 31, 2024 . The Company generated$1.3 million in the cash for the quarter.
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Business Outlook
Based on information available as of
-
Revenue is estimated to be approximately
$45 million . -
Non-GAAP Adjusted EBITDA is estimated to be approximately
$8 million .
The guidance provided above is only an estimate of what we believe is realizable as of the date of this release. We are not readily able to provide a reconciliation of projected Non-GAAP Adjusted EBITDA to projected net income without unreasonable effort. This guidance assumes that no business acquisitions, investments, restructurings, or legal settlements are concluded in the period. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.” Actual results may vary from the guidance and the variations may be material. We undertake no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
Investor Conference Call and Webcasts
We will host a conference call and webcast today,
We have used, and intend to continue to use, the investor relations portion of our website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.
About
Founded in 2008,
Over the past 16 years, the Weedmaps marketplace has become a premier destination for cannabis consumers to discover and browse cannabis-related products, access daily dispensary deals, order ahead for pick-up and delivery by participating retailers (where applicable) and learn about the plant. The Company also offers eCommerce-enablement tools designed to help cannabis retailers and brands reach consumers, create business efficiency, and manage industry-specific compliance needs.
The Company is committed to advocating for full
Headquartered in
Forward-Looking Statements
This press release includes “forward-looking statements” regarding the Company’s future business expectations which involve risks and uncertainties. Forward looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including the Company’s financial and business performance, including key business metrics and any underlying assumptions thereunder; market opportunity and the Company’s ability to acquire new clients and retain existing clients; expectations and timing related to commercial product launches; success of the Company’s go-to-market strategy; the Company’s ability to scale its business and expand its offerings; the Company’s competitive advantages and growth strategies; the Company’s future capital requirements and sources and uses of cash; the Company’s ability to obtain funding for its future operations; the impact of the material weaknesses in the Company’s internal controls and ability to remediate these material weaknesses in the timing the Company anticipates, or at all; the Company’s ability to maintain its listing on the
Use of Non-GAAP Financial Measures
Our financial statements, including net income, are prepared in accordance with principles generally accepted in
To provide investors with additional information regarding our financial results, we have disclosed EBITDA and Adjusted EBITDA, both of which are non-GAAP financial measures that we calculate as net income before interest, taxes and depreciation and amortization expense in the case of EBITDA and further adjusted to exclude stock-based compensation, change in fair value of warrant liability, legal settlements and other legal costs, asset impairment charges, change in the TRA liability and other non-cash, unusual and/or infrequent costs in the case of Adjusted EBITDA. Below we have provided a reconciliation of net income (the most directly comparable GAAP financial measure) to EBITDA; and from EBITDA to Adjusted EBITDA.
We present EBITDA and Adjusted EBITDA because these metrics are a key measure used by our management to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of investment capacity. Accordingly, we believe that EBITDA and Adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.
Each of EBITDA and Adjusted EBITDA has limitations as an analytical tool, and you should not consider any of these non-GAAP financial measures in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
- EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs; and
- EBITDA and Adjusted EBITDA do not reflect tax payments that may represent a reduction in cash available to us.
Because of these limitations, you should consider EBITDA and Adjusted EBITDA alongside other financial performance measures, including net income and our other GAAP results.
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CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except for share data) |
||||||||
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||||
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Assets |
|
|
|
|
||||
|
Current assets |
|
|
|
|
||||
|
Cash |
|
$ |
53,275 |
|
|
$ |
51,966 |
|
|
Accounts receivable, net |
|
|
10,681 |
|
|
|
10,060 |
|
|
Prepaid expenses and other current assets |
|
|
8,068 |
|
|
|
7,486 |
|
|
Total current assets |
|
|
72,024 |
|
|
|
69,512 |
|
|
Property and equipment, net |
|
|
24,373 |
|
|
|
24,075 |
|
|
|
|
|
68,368 |
|
|
|
68,368 |
|
|
Intangible assets, net |
|
|
1,814 |
|
|
|
1,952 |
|
|
Right-of-use assets |
|
|
14,053 |
|
|
|
14,695 |
|
|
Other assets |
|
|
3,197 |
|
|
|
3,264 |
|
|
Total assets |
|
$ |
183,829 |
|
|
$ |
181,866 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
|
Current liabilities |
|
|
|
|
||||
|
Accounts payable and accrued expenses |
|
$ |
19,134 |
|
|
$ |
20,102 |
|
|
Deferred revenue |
|
|
5,029 |
|
|
|
5,433 |
|
|
Operating lease liabilities, current |
|
|
3,601 |
|
|
|
3,492 |
|
|
Tax receivable agreement liability, current |
|
|
4,390 |
|
|
|
1,406 |
|
|
Total current liabilities |
|
|
32,154 |
|
|
|
30,433 |
|
|
Operating lease liabilities, non-current |
|
|
25,632 |
|
|
|
26,601 |
|
|
Tax receivable agreement liability, non-current |
|
|
568 |
|
|
|
3,006 |
|
|
Warrant liability |
|
|
585 |
|
|
|
585 |
|
|
Other long-term liabilities |
|
|
1,174 |
|
|
|
1,174 |
|
|
Total liabilities |
|
|
60,113 |
|
|
|
61,799 |
|
|
Stockholders’ equity |
|
|
|
|
||||
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Preferred Stock - |
|
|
— |
|
|
|
— |
|
|
Class A Common Stock - |
|
|
10 |
|
|
|
10 |
|
|
Class V Common Stock - |
|
|
5 |
|
|
|
5 |
|
|
Additional paid-in capital |
|
|
103,682 |
|
|
|
92,941 |
|
|
Accumulated deficit |
|
|
(55,232 |
) |
|
|
(56,879 |
) |
|
|
|
|
48,465 |
|
|
|
36,077 |
|
|
Noncontrolling interests |
|
|
75,251 |
|
|
|
83,990 |
|
|
Total stockholders’ equity |
|
|
123,716 |
|
|
|
120,067 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
183,829 |
|
|
$ |
181,866 |
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except for share data) |
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Three Months Ended |
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|
|
2025 |
|
|
|
2024 |
|
|
Revenues |
$ |
44,612 |
|
|
$ |
44,389 |
|
|
|
|
|
|
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Costs and expenses |
|
|
|
||||
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Cost of revenues (exclusive of depreciation and amortization shown separately below) |
|
2,241 |
|
|
|
2,302 |
|
|
Sales and marketing |
|
8,948 |
|
|
|
9,634 |
|
|
Product development |
|
8,004 |
|
|
|
9,229 |
|
|
General and administrative |
|
19,451 |
|
|
|
16,526 |
|
|
Depreciation and amortization |
|
3,321 |
|
|
|
2,937 |
|
|
Total costs and expenses |
|
41,965 |
|
|
|
40,628 |
|
|
Operating income |
|
2,647 |
|
|
|
3,761 |
|
|
Other income (expenses), net |
|
|
|
||||
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Change in fair value of warrant liability |
|
— |
|
|
|
(850 |
) |
|
Change in tax receivable agreement liability |
|
(545 |
) |
|
|
(543 |
) |
|
Other income (expense) |
|
401 |
|
|
|
(400 |
) |
|
Income before income taxes |
|
2,503 |
|
|
|
1,968 |
|
|
Provision for income taxes |
|
9 |
|
|
|
9 |
|
|
Net income |
|
2,494 |
|
|
|
1,959 |
|
|
Net income attributable to noncontrolling interests |
|
847 |
|
|
|
719 |
|
|
Net income attributable to |
$ |
1,647 |
|
|
$ |
1,240 |
|
|
|
|
|
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Class A Common Stock: |
|
|
|
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Basic income per share |
$ |
0.02 |
|
|
$ |
0.01 |
|
|
Diluted income per share |
$ |
0.02 |
|
|
$ |
0.01 |
|
|
|
|
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Class A Common Stock: |
|
|
|
||||
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Weighted average basic shares outstanding |
|
104,041,260 |
|
|
|
94,704,164 |
|
|
Weighted average diluted shares outstanding |
|
106,991,698 |
|
|
|
96,023,352 |
|
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) |
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Three Months Ended |
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|
|
2025 |
|
|
|
2024 |
|
|
Cash flows from operating activities |
|
|
|
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|
Net income |
$ |
2,494 |
|
|
$ |
1,959 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
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Depreciation and amortization |
|
3,321 |
|
|
|
2,937 |
|
|
Change in fair value of warrant liability |
|
— |
|
|
|
850 |
|
|
Change in tax receivable agreement liability |
|
545 |
|
|
|
543 |
|
|
Amortization of right-of-use lease assets |
|
643 |
|
|
|
1,188 |
|
|
Stock-based compensation |
|
2,194 |
|
|
|
2,819 |
|
|
Provision (recovery) for credit losses |
|
314 |
|
|
|
(658 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
||||
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Accounts receivable |
|
(935 |
) |
|
|
3,923 |
|
|
Prepaid expenses and other current assets |
|
(582 |
) |
|
|
(673 |
) |
|
Other assets |
|
67 |
|
|
|
36 |
|
|
Accounts payable and accrued expenses |
|
(1,133 |
) |
|
|
(3,661 |
) |
|
Deferred revenue |
|
(404 |
) |
|
|
(132 |
) |
|
Operating lease liabilities |
|
(860 |
) |
|
|
(1,729 |
) |
|
Net cash provided by operating activities |
|
5,664 |
|
|
|
7,402 |
|
|
|
|
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Cash flows from investing activities |
|
|
|
||||
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Capitalized software and expenditures |
|
(3,650 |
) |
|
|
(4,540 |
) |
|
Net cash used in investing activities |
|
(3,650 |
) |
|
|
(4,540 |
) |
|
|
|
|
|
||||
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Cash flows from financing activities |
|
|
|
||||
|
Distributions |
|
(704 |
) |
|
|
(1,589 |
) |
|
Proceeds from repayment of related party note |
|
— |
|
|
|
96 |
|
|
Taxes paid related to net share settlement of equity awards |
|
(1 |
) |
|
|
(2 |
) |
|
Net cash used in financing activities |
|
(705 |
) |
|
|
(1,495 |
) |
|
|
|
|
|
||||
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Net increase in cash |
|
1,309 |
|
|
|
1,367 |
|
|
Cash – beginning of period |
|
51,966 |
|
|
|
34,350 |
|
|
Cash – end of period |
$ |
53,275 |
|
|
$ |
35,717 |
|
|
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (Unaudited) (In thousands) |
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|
Three Months Ended |
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|
|
2025 |
|
|
|
2024 |
|
|
|
(in thousands) |
||||||
|
Net income |
$ |
2,494 |
|
|
$ |
1,959 |
|
|
Provision for income taxes |
|
9 |
|
|
|
9 |
|
|
Depreciation and amortization expenses |
|
3,321 |
|
|
|
2,937 |
|
|
Interest income |
|
(409 |
) |
|
|
(11 |
) |
|
EBITDA |
|
5,415 |
|
|
|
4,894 |
|
|
Stock-based compensation |
|
2,194 |
|
|
|
2,819 |
|
|
Change in fair value of warrant liability |
|
— |
|
|
|
850 |
|
|
Legal settlements and other legal costs(1) |
|
1,104 |
|
|
|
493 |
|
|
Reduction in force expense(2) |
|
879 |
|
|
|
— |
|
|
Change in tax receivable agreement liability |
|
545 |
|
|
|
543 |
|
|
Adjusted EBITDA |
$ |
10,137 |
|
|
$ |
9,599 |
|
|
1 |
Represents legal and advisory fees related to ongoing litigation related to shareholder derivative actions, the |
|
2 |
In the first quarter of 2025, we incurred severance charges included in general and administrative expense in the condensed consolidated statement of operations, related to certain reduction in force actions taken by our management. These reduction in force actions are designed to enhance operational efficiency and align resources with strategic priorities in its corporate technology and marketing divisions. |
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