WM Technology Reports 5% Revenue Decline to $174.7 Million for 2025

WM Technology, Inc. (WM Technology) reported annual revenues of $174.7 million for the year ended December 31, 2025, a decrease of 5% compared to $184.5 million in the prior year. This decline was attributed to reduced spending in established markets due to ongoing industry challenges, including price deflation and market consolidation, as well as lower average spending from new clients in certain markets. The company's net income also decreased to $3.3 million from $12.2 million in the previous year, primarily due to the revenue decline and a $4.2 million increase in total costs and expenses, partially offset by a $3.1 million change in the tax receivable agreement (TRA) liability, a $0.4 million change in the fair value of warrant liability, and a $1.6 million increase in other income.

Key operational metrics for WM Technology included an increase in average monthly paying clients to 5,190, up from 5,077 in the prior year, driven by new client acquisitions in developing markets, which was partially offset by churn in more established markets. However, average monthly revenue per paying client decreased to $2,805 from $3,029, reflecting the aforementioned spend declines in established markets and lower average spend from new clients. Adjusted EBITDA, a non-GAAP measure used by management to evaluate operating performance, was $39.8 million, compared to $42.9 million in the prior year. The company's cash and cash equivalents totaled $62.4 million as of December 31, 2025, with no long-term debt.

The company identified ongoing material weaknesses in its internal control over financial reporting as of December 31, 2025, related to information technology general controls and process-level controls. These weaknesses could potentially lead to material misstatements in the company's financial statements. Management is implementing measures to remediate these weaknesses, but there is no assurance that these efforts will be successful or that additional material weaknesses will not be identified in the future. The company also disclosed that it had previously restated its financial statements for several quarters due to errors in revenue recognition, which resulted in unanticipated costs and may adversely affect investor confidence.

Looking ahead, WM Technology intends to focus on growing its two-sided marketplace, expanding in existing and new markets, and expanding its Weedmaps for Business solutions. The company also plans to pursue strategic acquisitions to complement its existing products and services. However, the company acknowledges that its business is subject to various risks, including competition from the illicit cannabis market, dependence on U.S. state laws and regulations, and the potential for federal law enforcement to deem its clients in violation of U.S. federal law. The company also faces risks related to macroeconomic conditions, cybersecurity threats, and the volatility of its Class A Common Stock price.