WM Technology, Inc. Q4 & Full Year 2025 Results March 12, 2026 Disclaimer This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to WM Technology, Inc. ("WM", the "Company", "we", "us", "our") and for no other purpose. References in this presentation to the "10- K" refer to the Annual Report on Form 10-K for the period ended December 31, 2025 filed with the Securities and Exchange Commission (the "SEC"). No ...

PresentationThank you for standing by, and welcome to the WM Technology, Inc. Fourth Quarter and Full Year 2025 Earnings Call. I'd now like to introduce your host for today's program, Simon Yao. Please go ahead, sir.Simon YaoDirector of Investor Relations Good afternoon, and thank you for joining us to discuss our fourth quarter and full year 2025 results. Today, we are joined by our CEO, Doug Francis; and our CFO, Susan Echard. By now, everyone should have access to our earnings announcement and supporting ...

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing its offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing its extensive coverage and growth in the transcript market [1] - There is an ongoing effort to expand coverage, suggesting a strategic initiative to capture more market share and improve service offerings [1]

WM Technology (NasdaqGS:MAPS) Q4 2025 Earnings call March 12, 2026 05:00 PM ET Company ParticipantsDoug Francis - CEOSimon Yao - Director of Investor RelationsSusan Echard - CFOOperatorThank you for standing by and welcome to the WM Technology, Inc. fourth quarter and full year 2025 earnings call. I'd now like to introduce your host for today's program, Simon Yao. Please go ahead, sir.Simon YaoGood afternoon, and thank you for joining us to discuss our fourth quarter and full year 2025 results. Today we are ...

Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenue of $175 million, a decline of approximately 5% from $185 million in 2024, with fourth-quarter revenue at $43 million, down 10% year-over-year [4][14] - Adjusted EBITDA for the full year was $40 million, compared to $43 million in 2024, reflecting the company's cost control efforts despite revenue decline [17] - The company ended the year with $62 million in cash, marking an almost 20% increase from the end of 2024 [4] Business Line Data and Key Metrics Changes - Average paying clients in the fourth quarter were 5,120, down approximately 2% year-over-year, while for the full year, average paying clients were 5,190, up 2% compared to 2024 [14][15] - Average revenue per paying client for both the fourth quarter and the full year was approximately $2,800, down from prior year levels due to lower spending from existing clients [15] Market Data and Key Metrics Changes - The company experienced severe pricing compression and competition from illicit markets, particularly affecting mature markets like California and Michigan, where total retail sales and average retail prices declined year-over-year [13] - Encouraging growth was noted in newer markets such as New York and Ohio, where client penetration was prioritized, although this growth did not offset pressures in mature markets [14] Company Strategy and Development Direction - The company remains focused on enhancing product offerings and deepening relationships with large California-based clients and MSO partners, while also improving marketplace experience [8] - Investments are planned across teams and technology to build for the future, despite the challenges posed by industry consolidation and regulatory limitations [8][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted that many industry dynamics affecting clients in 2025 are expected to persist into 2026, with first-quarter revenue anticipated to decline sequentially by mid- to high-single digits from the fourth quarter [17] - The company is committed to preserving financial flexibility and disciplined capital allocation while assessing future opportunities [18] Other Important Information - The company recorded a non-cash asset impairment charge of approximately $7.8 million in the fourth quarter, primarily related to goodwill [16] - Management expressed optimism about the potential benefits of cannabis rescheduling, although it will not immediately change the company's operational capabilities [10][11] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session. The call concluded without further inquiries [19]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported revenue of $175 million, a decline of approximately 5% compared to $185 million in 2024 [12][16] - Adjusted EBITDA for the full year was $40 million, down from $43 million in 2024 [17] - The company ended the year with $62 million in cash, reflecting an almost 20% increase from the end of 2024 [4] Business Line Data and Key Metrics Changes - Revenue for the fourth quarter was $43 million, a decline of 10% year-over-year [12] - Average paying clients in the fourth quarter were 5,120, down approximately 2% year-over-year and sequentially [13] - Average revenue per paying client for both the fourth quarter and the full year was approximately $2,800, down from prior year levels [15] Market Data and Key Metrics Changes - The company experienced severe pricing compression and competition from illicit markets, particularly affecting California and Michigan, where total retail sales and average retail prices declined year-over-year [12] - Encouraging growth was noted in newer markets such as New York and Ohio, where client penetration was prioritized [13] Company Strategy and Development Direction - The company remains focused on enhancing product offerings and deepening relationships with large California-based clients and MSO partners [6] - Investments are planned across teams and technology to build for the future of Weedmaps [7] - The company is cautious about the potential impact of Schedule III on its business model, emphasizing the need for full legalization [9] Management's Comments on Operating Environment and Future Outlook - The management highlighted that many industry dynamics affecting clients in 2025 are expected to persist into 2026, with first quarter revenue anticipated to decline sequentially by mid- to high-single digits from the fourth quarter [17][18] - The company is committed to preserving financial flexibility and disciplined capital allocation while assessing future opportunities [18] Other Important Information - Total operating expenses for the full year increased modestly by 2% to $174 million, primarily due to certain non-recurring items [16] - A non-cash asset impairment charge of approximately $7.8 million was recorded in the fourth quarter, largely related to goodwill [16] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

TRA Payments and Tax Implications - Payments under the TRA may exceed 85% of actual cash tax savings, potentially impacting liquidity [224] - TRA payments depend on future tax savings and are calculated based on the market value of Class A Common Stock at the time of redemption [222] - If obligations under the TRA accelerate due to breaches or changes in control, payments could be required in a lump sum based on anticipated future tax benefits [224] - The ability to make TRA payments is contingent on WMH LLC's capacity to distribute funds, with deferred payments accruing interest if not made [225] Cannabis Industry Risks - Cannabis remains a prohibited substance under federal law, posing risks to the business plan and operations [226] - The U.S. Supreme Court affirms federal authority to regulate cannabis, regardless of state legality [227] - The Sessions Memo allows federal prosecutors discretion in enforcing cannabis laws, which could affect state-legal companies [228] - The Joyce Amendment prohibits DOJ from using funds to prevent states from implementing medical-use cannabis laws, but future funding may not be guaranteed [229] - Financial transactions involving cannabis proceeds may lead to prosecution under federal money laundering statutes [231] - Changes in federal enforcement posture regarding cannabis could significantly impact business operations and financial results [236] - The cannabis-related businesses face significant challenges in accessing banking services due to federal-level illegality, which could materially affect their operations and financial condition [241] - Cannabis businesses must undergo extensive client due diligence, which can be time-consuming and costly, potentially creating barriers to financial services [243] - The company does not sell cannabis products but may still face banking restrictions due to its association with the cannabis industry, impacting its ability to manage operations and accept payments [245] - The FDA may impose regulations on adult-use and medical-use cannabis, which could negatively affect the cannabis industry and, consequently, the company's financial condition [252] - The hemp-derived product market is projected to reach $3.5 billion in sales for 2024, with potential growth to $4.4 billion by 2029, posing competition to the cannabis industry [254] - The regulatory environment surrounding hemp-derived products is volatile, which creates uncertainty for cannabis clients and could adversely impact their profitability [254] - Hemp-derived THC products are increasingly available through unlicensed channels, potentially drawing consumers away from cannabis-derived products [257] - The company may face significant management distraction and expenses if clients are found in violation of money laundering statutes, which could disrupt operations [247] - The inability of clients to access banking services may hinder the company's ability to conduct business and receive timely payments [244] - The conduct of third parties, including clients, may jeopardize the company's regulatory compliance and expose it to potential legal actions [251] Legal and Regulatory Compliance - Section 230(c)(1) of the Communications Decency Act may provide immunity from civil and state criminal liability, but its applicability is uncertain, posing legal and operational risks [258] - Cannabis businesses face strict marketing regulations in various states, potentially impacting demand for listing and marketing services, which could result in revenue loss [259] - Section 280E of the Internal Revenue Code restricts cannabis businesses from deducting expenses beyond the cost of goods sold, adversely affecting profitability and demand for services [260] - Cannabis businesses may be subject to civil asset forfeiture, which could negatively impact their operations and the company's revenue if clients face asset seizures [263] - Difficulty in obtaining insurance due to involvement in the cannabis industry may expose the company to additional risks and financial liabilities [264] - Changes in laws and regulations may create uncertainty and increase compliance costs, potentially harming the company's business [289] Financial Performance and Market Dynamics - Concentration of ownership among executive officers and directors, owning approximately 19.9% of Class A and Class V Common Stock, may limit new investors' influence on corporate decisions [268] - The company does not anticipate declaring any cash dividends in the foreseeable future, which may affect investor returns [271] - Sales of a substantial number of shares in the public market could significantly reduce the market price of Class A Common Stock, regardless of business performance [275] - The exercise of Public Warrants or other securities will result in dilution for existing shareholders and increase the number of shares available for resale, potentially affecting market price [276] - The company may issue additional shares of Class A Common Stock or preferred stock, which could significantly dilute the equity interests of existing investors [277] - The Class A Common Stock has been subject to volatility, with trading prices potentially declining due to various factors beyond the company's control [278] - The company has faced compliance issues with Nasdaq listing standards, including a minimum closing bid price requirement of $1.00 per share, which was not met for 30 consecutive trading days [280] - The company received a compliance period of 180 days to regain compliance with Nasdaq's minimum bid price requirement, which was successfully achieved [280] - Economic downturns may adversely affect the company's business, particularly impacting small and medium-sized clients who may struggle with access to capital [283] - Increased costs and administrative burdens have arisen from operating as a public company, diverting resources from business expansion [287] - The company has incurred costs related to restating financial statements due to errors in revenue recognition policies, which may continue to result in unanticipated expenses [290] - The company is exposed to risks of misconduct by employees and independent contractors, which could adversely affect its financial condition and operating results [292] - The trading market for the company's Class A Common Stock may be influenced by analysts' reports, and any adverse changes in recommendations could lead to a decline in stock price [294]

Irvine, Calif. -- March 12, 2026 -- WM Technology, Inc. ("WM Technology" or the "Company") (Nasdaq: MAPS), a leading marketplace and technology solutions provider to the cannabis industry, today announced its financial results for the fourth quarter and year ended December 31, 2025. "2025 was another demanding year for the cannabis industry, with pressure in mature markets and cautious spending across much of the ecosystem," said Doug Francis, CEO and Chairman of WM Technology. "Against that backdrop, we re ...

Core Insights - WM Technology, Inc. reported fourth quarter revenue of $43.1 million and full year revenue of $174.7 million, reflecting challenges in the cannabis industry [1] - The company achieved consecutive quarters of adjusted EBITDA profitability and full year net income profitability [1] - Nick Rellas was appointed to the Board of Directors, bringing experience in consumer marketplaces [1] Financial Performance - Fourth quarter revenue decreased from $47.7 million in the prior year, attributed to pricing pressures in core markets [1] - Average monthly revenues per paying client fell to $2,804 from $3,041 year-over-year [1] - Average monthly paying clients decreased to 5,120 from 5,225 in the prior year [1] - The company reported a net loss of $5.0 million compared to a net income of $3.7 million in the prior year [1] - Adjusted EBITDA decreased to $10.4 million from $11.9 million in the prior year [1] Fiscal Year Overview - Full year revenue of $174.7 million decreased from $184.5 million in the prior year, driven by ongoing pricing pressures [1] - Average monthly revenues per paying client decreased to $2,805 from $3,029 year-over-year [1] - Average monthly paying clients increased to 5,190 from 5,077 in the prior year [1] - Net income decreased to $3.3 million from $12.2 million in the prior year [1] - Adjusted EBITDA for the year decreased to $39.8 million from $42.9 million [1] Balance Sheet and Cash Position - Total shares outstanding were 157.8 million as of December 31, 2025 [1] - Cash increased to $62.4 million as of December 31, 2025, compared to $52.0 million as of December 31, 2024 [1] Business Outlook - The company expects first quarter 2026 revenue to decline by mid- to high-single digit percentages sequentially from the fourth quarter [1]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by officers and directors of WM Technology, Inc. (NASDAQ: MAPS), encouraging shareholders to contact the firm to discuss their rights and potential corporate governance reforms [1][1]. Group 1: Company Overview - WM Technology, Inc. is under scrutiny for possible misconduct by its leadership, which may have affected shareholder interests [1]. - The firm offers legal services on a contingent fee basis, meaning shareholders will not incur out-of-pocket expenses for legal fees [1]. Group 2: Shareholder Rights - Long-term shareholders of WM Technology may seek various forms of relief, including corporate governance reforms, financial incentives, or the return of funds to the company [1]. - Shareholder participation is emphasized as a means to enhance company transparency, accountability, and overall management effectiveness, potentially increasing shareholder value [1].