WM Technology(MAPS) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial & Operational Highlights In the second quarter of 2025, WM Technology reported a slight year-over-year revenue decrease to $44.8 million, but demonstrated improved profitability with net income rising 81% to $2.2 million and Adjusted EBITDA increasing 16% to $11.7 million Q2 2025 Key Financial Metrics (vs. Q2 2024, in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $44.8 | $45.9 | -2.4% | | Net Income | $2.2 | $1.2 | +81% | | Adjusted EBITDA | $11.7 | $10.1 | +16% | Q2 2025 Key Operational Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Average monthly paying clients | 5,241 | 5,045 | +3.9% | | Average monthly revenues per paying client | $2,852 | $3,033 | -6.0% | - The decrease in revenue was attributed to lower spending on Weedmaps for Business solutions and featured listings, which was partially offset by growth in other ad solutions[6] - Client growth was driven by acquisitions in developing markets, but this was partially offset by churn and reduced spending in more established markets facing industry challenges like price deflation[6] - The company's cash position increased to $59.0 million as of June 30, 2025, up from $52.0 million at the end of 2024[6] Management Commentary Management characterized the quarter as solid, emphasizing strong cash flow generation and disciplined operations within a difficult market environment - CEO Doug Francis highlighted the company's solid performance, strong cash flow, and operational discipline despite a challenging operating environment, noting progress with new clients in emerging markets[2] - CFO Susan Echard emphasized the company's strong financial position, with cash growth and no debt, which allows for continued investment while maintaining flexibility in a dynamic market[2] Business Outlook (Q3 2025 Guidance) For the third quarter of 2025, WM Technology projects revenues to be in the range of $41 million to $43 million, with Non-GAAP Adjusted EBITDA anticipated between $5 million and $7 million Q3 2025 Guidance (in millions) | Metric | Guidance Range | | :--- | :--- | | Revenues | $41 - $43 | | Non-GAAP Adjusted EBITDA | $5 - $7 | - The guidance provided is an estimate and does not account for potential business acquisitions, investments, restructurings, or legal settlements[8] Financial Statements The unaudited consolidated financial statements reflect the company's financial health as of June 30, 2025, showing asset and equity growth, a slight revenue decline, improved net income, and increased cash from operations Consolidated Balance Sheets As of June 30, 2025, WM Technology's balance sheet showed total assets of $188.1 million, an increase from $181.9 million at the end of 2024, with cash growing to $59.0 million Selected Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $58,951 | $51,966 | | Total Current Assets | $77,404 | $69,512 | | Total Assets | $188,066 | $181,866 | | Total Liabilities | $60,061 | $61,799 | | Total Stockholders' Equity | $128,005 | $120,067 | Consolidated Statements of Operations For the second quarter of 2025, revenues were $44.8 million, down from $45.9 million in Q2 2024, yet the company improved profitability through cost management, increasing operating income and net income year-over-year Q2 Statement of Operations Highlights (in thousands, vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $44,847 | $45,903 | | Total costs and expenses | $42,878 | $44,672 | | Operating income | $1,969 | $1,231 | | Net income | $2,159 | $1,194 | | Diluted income per share | $0.01 | $0.01 | - Profitability improvements were supported by year-over-year reductions in key operating expenses, including Sales and Marketing (down to $8.9M from $11.1M) and Product Development (down to $7.5M from $9.6M)[24] Consolidated Statements of Cash Flows For the first six months of 2025, the company generated $16.7 million in cash from operating activities, with a net increase in cash of $7.0 million, ending the period at $59.0 million Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,725 | $20,054 | | Net cash used in investing activities | ($6,493) | ($7,140) | | Net cash used in financing activities | ($3,247) | ($5,972) | | Net increase in cash | $6,985 | $6,942 | | Cash – end of period | $58,951 | $41,292 | Reconciliation of GAAP to Non-GAAP Measures The company reconciled its GAAP Net Income to non-GAAP Adjusted EBITDA, which increased 16% to $11.7 million in Q2 2025 after adjustments for items like depreciation, stock-based compensation, legal costs, and a significant loss contingency Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income | $2,159 | $1,194 | | EBITDA | $5,186 | $4,383 | | Adjustments | | | | Stock-based compensation | $2,624 | $2,752 | | Legal settlements and other legal costs | $1,436 | $3,020 | | Loss contingency | $2,324 | $— | | Other adjustments | $155 | ($65) | | Adjusted EBITDA | $11,725 | $10,090 | - A notable adjustment in Q2 2025 was a $2.3 million loss contingency related to a purchase obligation shortfall with AWS[27]