WM Technology(US:MAPS)2025-11-06 22:03Financial Performance - Revenues for Q3 2025 were $42.2 million, down from $46.6 million in the prior year, representing a decrease of approximately 9.5%[205] - Net income for Q3 2025 was $3.6 million, down from $5.3 million in Q3 2024, a decrease of approximately 32.1%[218] - Adjusted EBITDA for Q3 2025 was $7.6 million, compared to $11.3 million in Q3 2024, reflecting a decrease of approximately 32.8%[205] - Total revenue for the nine months ended September 30, 2025 was $131.6 million, compared to $136.8 million for the same period in 2024, a decrease of approximately 3.5%[208] - The decrease in net income for the nine months ended September 30, 2025 was primarily due to a revenue decline of $5.2 million[219] - Revenues for the three months ended September 30, 2025, decreased by $4.4 million or 9% to $42.2 million compared to $46.6 million in the same period of 2024, primarily due to declines in Featured Listing and WM Deal products[253] - For the nine months ended September 30, 2025, revenues decreased by $5.2 million or 4% to $131.6 million compared to $136.8 million in the same period of 2024, driven by a $6.0 million decrease in Featured Listing and WM Deal products[264] Client Metrics - Average monthly paying clients increased by 2% to 5,221 in Q3 2025 from 5,100 in Q3 2024[213] - The average monthly revenues per paying client decreased to $2,693 in Q3 2025 from $3,043 in Q3 2024, a decline of approximately 11.5%[211] - The average monthly paying clients for the nine months ended September 30, 2025 increased by 4% to 5,214 from 5,027 in the same period in 2024[215] Expenses and Costs - Total costs and expenses for the three months ended September 30, 2025, were $40.2 million, a decrease of $1.1 million or 3% from $41.3 million in the same period of 2024[255] - General and administrative expenses increased by $1.3 million or 8% to $17.8 million for the three months ended September 30, 2025, compared to $16.5 million in 2024[259] - Operating income for the three months ended September 30, 2025, was $2.0 million, a decrease of $3.2 million or 62% from $5.2 million in the same period of 2024[253] - General and administrative expenses increased by $1.1 million in salaries and wages, $0.7 million in stock-based compensation, and $2.9 million in provision for credit losses for the nine months ended September 30, 2025 compared to the same period in 2024[271] - Depreciation and amortization expenses rose by $0.2 million primarily due to capitalized software development for the nine months ended September 30, 2025 compared to the same period in 2024[272] Cash Flow and Liquidity - Cash increased to $62.6 million as of September 30, 2025, up from $52.0 million as of December 31, 2024, indicating improved liquidity[277] - Net cash provided by operating activities was $23.1 million for the nine months ended September 30, 2025, down from $27.3 million for the same period in 2024[279] - Net cash used in investing activities was $9.4 million for the nine months ended September 30, 2025, consistent with $9.5 million for the same period in 2024[285] - Net cash outflows from financing activities decreased to $3.2 million for the nine months ended September 30, 2025, compared to $7.1 million for the same period in 2024[287] - The company expects existing cash and cash generated from operations to be sufficient to meet anticipated cash needs for at least the next 12 months[277] Market and Strategic Outlook - The company plans to continue investments in brand awareness and market expansion to capitalize on growth opportunities[204] - The cannabis market is expected to grow as more jurisdictions legalize cannabis, with 40 states currently allowing some form of cannabis use[229] - Selling and marketing expenses are expected to increase in line with revenue growth, although fluctuations may occur during market entry[242] - General and administrative expenses are anticipated to decline as a percentage of revenue as the company scales its operations[244] - The company faces competition from both cannabis-focused and general marketplaces, which is expected to intensify as the market matures[232] - The cost of revenues is expected to increase in absolute terms but remain relatively flat as a percentage of revenue as the business scales[241] - The company intends to continue making focused investments to support revenue growth and operational scaling[236] - The cannabis industry may experience increased seasonality in sales due to specific industry holidays, which could impact future revenue generation[275][276] Other Financial Metrics - The change in fair value of warrant liability resulted in a loss of $0.4 million for the three months ended September 30, 2025, compared to a gain of $0.6 million in 2024[261] - Other income (expense), net increased by $3.4 million, primarily due to a $1.0 million rise in net interest income and a $1.9 million change in TRA liability for the nine months ended September 30, 2025 compared to the same period in 2024[273] - Provision for income taxes decreased by 69% to $22,000 for the nine months ended September 30, 2025 compared to $72,000 for the same period in 2024[274] - Product development expenses decreased by $3.1 million or 32% to $6.4 million for the three months ended September 30, 2025, compared to $9.5 million in 2024[258] - Sales and marketing expenses increased by $1.1 million or 11% to $10.8 million for the three months ended September 30, 2025, compared to $9.7 million in 2024[257]