WM Technology, Inc. reported its financial results for the first quarter of 2025, revealing a slight increase in revenue to $44.6 million, up from $44.4 million in the same period last year. The company achieved a net income of $2.5 million, compared to $2.0 million in the prior year, reflecting a year-over-year growth of approximately 27%. The increase in revenue was primarily driven by a rise in sales from its Weedmaps for Business solutions and other advertising services, although this was partially offset by a decline in revenue from featured listings and promotional deals.
In terms of operational metrics, WM Technology saw an increase in its average monthly paying clients, which rose to 5,179 from 4,937 a year earlier. However, the average monthly revenue per paying client decreased to $2,871 from $2,997, attributed to spending declines in established markets amid ongoing industry challenges. The company reported an adjusted EBITDA of $10.1 million for the quarter, up from $9.6 million in the previous year, indicating improved operational efficiency.
The company has also made strategic moves to enhance its market position, including ongoing investments in marketing and technology to expand its two-sided marketplace. As of March 31, 2025, WM Technology operated in over 35 U.S. states and territories with legalized cannabis markets, and it continues to explore opportunities for geographic expansion. The company is focused on increasing its brand awareness and enhancing its service offerings to attract more cannabis businesses to its platform.
Despite the positive financial performance, WM Technology acknowledged ongoing material weaknesses in its internal controls over financial reporting. The company is actively working on remediation efforts, including improving its revenue recognition processes and enhancing its information technology controls. These efforts are critical to ensuring the accuracy of financial reporting and maintaining investor confidence.
Looking ahead, WM Technology remains optimistic about its growth prospects, driven by the continued legalization of cannabis in various jurisdictions and the expansion of its service offerings. The company plans to leverage its established marketplace to capitalize on new opportunities while addressing the challenges posed by market conditions and competition.
About WM TECHNOLOGY, INC.
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