WM Technology, Inc.

What they do

WM Technology runs a two-sided marketplace connecting cannabis consumers with retailers and brands, providing product discovery, deals, and pickup/delivery reservations. It also sells Weedmaps for Business, a packaged SaaS solution that includes listing pages, white-labeled store websites, API integrations, and analytics dashboards. Revenue is generated primarily from subscriptions and fees from paying clients, with additional a la carte products and services.

Revenue drivers

• Marketplace and SaaS subscriptions — Primary revenue stream from monthly paying clients (5,040 average in Q2 2026) across retailers, delivery operators, and brands, yielding average monthly revenue per client of $2,807.
• Add-on and a la carte products — Additional fees for enhanced listings, marketing tools, and other optional services sold to clients, though specific revenue split is not disclosed.
• Geographic expansion — New client acquisitions in developing states partially offset churn in established markets, contributing to revenue resilience.

Recent performance

Q2 2026 revenue was $42.4 million, down 5.4% from $44.8 million in Q2 2025, driven by customer margin compression and cash flow constraints. Net income improved to $2.9 million from $2.2 million, while adjusted EBITDA fell to $5.0 million from $11.7 million. Cash rose to $60.5 million as of June 30, 2026, from $59.0 million a year earlier. Full-year 2025 revenue was $174.7 million and net income was $2.0 million, with quarterly revenue in the $42-44 million range over the last four reported quarters.

Strategy

Management is strengthening the core marketplace and expanding into underpenetrated states, while evaluating adjacent opportunities across the cannabis ecosystem. The company is allocating resources to targeted marketing, product enhancements, and automation initiatives to improve scalability and operating efficiency. Maintaining a strong liquidity position and disciplined expense management remain key priorities. The strategy also includes leveraging integrations and APIs to make the SaaS suite more valuable to clients.

Risks

• Customer churn in established markets — Average monthly paying clients fell 3.8% year-over-year to 5,040 due to churn in mature states, reflecting a challenging operating environment for cannabis retailers.
• Price deflation and consolidation — Revenue per client declined as industry price deflation and consolidation pressured client spend, which could persist and further reduce revenue.
• Revenue decline and profitability pressure — Annual revenue has fallen from $215.5M in 2022 to $174.7M in 2025, and management warns it may not generate sufficient revenue to offset cost increases.
• Material weaknesses in internal controls — Disclosure controls and internal control over financial reporting were ineffective as of June 30, 2026 due to ongoing material weaknesses, posing compliance and reporting risks.

Outlook

Management expects Q3 2026 revenue to decline by mid-single digit percentages sequentially from Q2 2026. This guidance assumes no acquisitions, investments, restructurings, or legal settlements during the period. The company anticipates continued industry challenges in established markets but sees growth potential in underpenetrated states and adjacent opportunities.