Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $44.8 million, representing a decline of 2% from the prior year period, primarily driven by lower revenue from featured and deal listings products [16] - Net income for Q2 was $2.2 million, and non-GAAP adjusted EBITDA was $11.7 million, reflecting an increase of 8116% from the prior year period [20] - Average monthly paying clients increased by 4% to 5,241, up from 5,045 in the prior year period [17] - Average monthly revenue per paying client declined by 6% to $2,852 compared to $3,033 a year ago [18] - GAAP operating expenses totaled $42.9 million for Q2, a decrease of approximately $1.8 million or 4% versus the prior year period [19] Business Line Data and Key Metrics Changes - Revenue decline was partially offset by an increase in display advertising revenue, reflecting efforts to retain and reallocate clients' marketing budgets [16] - The decline in average monthly revenue per paying client was attributed to reduced spending from existing clients in mature markets and onboarding new clients at lower initial spend levels [18] Market Data and Key Metrics Changes - Ongoing market headwinds in key markets, particularly California, where the excise tax was increased to 19% of sales, impacting client margins and discretionary marketing spend [7][9] - Emerging markets like New York showed positive trends with accelerated client onboarding, indicating potential growth opportunities [10] Company Strategy and Development Direction - The company is focused on maintaining operational discipline and investing in long-term initiatives despite market challenges [5][21] - Plans to launch new products and expand premium placement opportunities for brands, aiming to offset revenue headwinds from legacy markets [11][12] - The company is also working on a new online head shop, Hetty, and expanding AI and ML capabilities to enhance product data standardization [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the structural challenges in the cannabis industry and emphasized the importance of playing the long game [5] - Despite ongoing pressures, the company remains committed to disciplined execution and sustaining profitability while navigating near-term uncertainties [21] - The outlook for Q3 revenue is expected to be approximately $41 million to $43 million, with non-GAAP adjusted EBITDA in the range of $5 million to $7 million [21] Other Important Information - The company ended the quarter with $59 million in cash, marking its eighth consecutive quarter of cash growth and operating with no debt [20] - Legislative uncertainties regarding the hemp market are being monitored, with potential impacts on product offerings [12][13] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - First quarter revenue was $44.6 million, a modest increase of $200,000 or 1% compared to the prior year period, driven by growth in standard listings and display advertising [12][15] - Net income rose to $2.5 million from $2 million in the prior year, primarily due to mark-to-market adjustments on warrants and higher interest income [15] - Adjusted EBITDA for the first quarter was $10.1 million, exceeding expectations due to slightly higher revenue and lower expenses [15][16] - Cash from operations generated was $1.3 million, with a cash balance of $53.3 million, marking the seventh consecutive quarter of cash growth [15][16] Business Line Data and Key Metrics Changes - Growth in standard listings increased by $400,000, while display advertising grew by $800,000, offset by a $1 million decline in revenue from featured and deal listings [12][13] - Average monthly paying clients increased by 5% year over year to 5,179, but average monthly revenue per paying client declined to $2,871 from $2,997 [13] Market Data and Key Metrics Changes - Mature markets continue to show decreasing retail prices, leading to reduced cash flow for clients and impacting their ability to purchase services [8] - Emerging markets, while showing potential, remain subscale and do not compensate for challenges in mature markets [8] Company Strategy and Development Direction - The company is focused on disciplined execution, maintaining a lean cost structure, and driving ROI-driven investments [9] - Significant progress has been made in technology and product development, including improvements in data infrastructure and automation [10] - The marketing organization has been restructured to reconnect with the brand's heritage in the cannabis culture [10] Management's Comments on Operating Environment and Future Outlook - The regulatory environment remains challenging, with over-taxation and competition from unregulated hemp impacting the cannabis industry [5][6] - Management expresses cautious optimism about potential federal legalization, noting that a significant majority of Americans support it [7] - The company expects revenues for the second quarter to be approximately $45 million, with non-GAAP adjusted EBITDA estimated at $8 million [16] Other Important Information - GAAP operating expenses totaled $42 million, reflecting a 3% increase over the prior year, driven by higher general and administrative expenses [14] - The increase in G&A expenses included $2 million of non-recurring charges related to legal expenses and severance [14] - The company has no debt on its balance sheet, allowing for strategic investments despite ongoing industry challenges [15][16] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.