Breaking Down WM Technology, Inc. (MAPS) Financial Health: Key Insights for Investors

You're looking at WM Technology, Inc. (MAPS) right now and seeing a company navigating a tough, fragmented cannabis market, so you need to know if the underlying financial structure can handle the pressure. Honestly, the third quarter 2025 results give us a mixed signal: the core business is shrinking in established markets, with revenue coming in at $42.2 million, a clear miss against the $43.4 million analyst consensus, and Non-GAAP Earnings Per Share (EPS) dropping to just $0.02. But here's the quick math: the company is still profitable, posting $3.6 million in net income, and they've maintained a strong balance sheet, sitting on $62.6 million in cash with no debt, which is defintely a crucial buffer against industry volatility. The near-term risk is clear as the average monthly revenue per paying client fell to $2,693 from $3,043 a year ago, yet they are growing their base, adding new clients for a total of 5,221 paying customers. That tells me the platform is still sticky, but the clients are spending less, which forces us to look closely at their guidance for Q4 revenue of $41 million to $43 million to see if that trend holds.

Revenue Analysis

You're looking for a clear picture of WM Technology, Inc. (MAPS)'s financial engine, and honestly, the revenue story is complex right now. The direct takeaway is that while the company is profitable, its top-line revenue-the total money coming in-is under pressure, largely due to a tough cannabis market. For the trailing twelve months (TTM) ending September 30, 2025, WM Technology's revenue totaled $179.31 million, reflecting a year-over-year decline of -2.19%. This deceleration is a clear signal that the market is challenging.

The core of WM Technology's business is its technology platform, Weedmaps, which generates revenue primarily through three channels. It's not just one big bucket of cash; it's a mix of software subscriptions and advertising placements. This structure is what gives the company its operational resilience, even as the market shifts.

Here's a look at the revenue breakdown for the most recently reported quarter, Q3 2025, which totaled $42.2 million:

The biggest segment, Featured and Deal Listings, is also the most vulnerable. This revenue stream, which is essentially high-visibility advertising, fell from $29.2 million in Q3 2024 to $25.6 million in Q3 2025. That's a significant drop and the primary driver of the overall revenue decline. This tells you that cannabis retailers are cutting back on discretionary marketing spend first.

What this estimate hides is the underlying pressure on clients. The average monthly revenue per paying client dropped to $2,693 in Q3 2025, down from $3,043 a year prior. This is defintely a key metric to watch, as it shows pricing pressure and spend declines in established markets. While the company is adding new clients in developing markets-average monthly paying clients grew to 5,221 in Q3 2025 from 5,100 in Q3 2024-the new clients are spending less on average.

The shift in revenue composition points to a company prioritizing operational efficiency over aggressive growth in a contracting market. This is a realist move. If you want to dive deeper into the ownership structure behind these numbers, you should check out Exploring WM Technology, Inc. (MAPS) Investor Profile: Who's Buying and Why?

• Focus on recurring SaaS revenue stability.
• Watch for continued decline in ad listing spend.
• Monitor average client spend, not just client count.

For the full fiscal year 2025, based on Q1, Q2, Q3 results and the Q4 guidance midpoint of $42.0 million, the estimated total annual revenue is approximately $173.6 million. The growth story right now is less about the top-line explosion and more about maintaining margin and cash flow in a difficult environment.

Profitability Metrics

You're looking at WM Technology, Inc. (MAPS) to see if its profitability can withstand the cannabis industry's pricing pressure, and the short answer is: the gross margin is stellar, but operating efficiency is the real challenge. The company remains profitable, but the trend is downward, which is a red flag you need to act on.

For the third quarter of 2025 (Q3 2025), WM Technology, Inc. reported revenue of $42.2 million and a net income of $3.6 million. This translates into a Net Profit Margin of 8.53% for the quarter, a clear drop from the prior year's period where net income was $5.3 million.

Gross, Operating, and Net Margins (Q3 2025)

WM Technology, Inc.'s business model as a technology and marketplace provider (SaaS-like) gives it an inherently high gross margin, but its operating expenses are eating into that advantage. Here's the quick math for Q3 2025, which shows where the pressure points are:

• Gross Profit Margin: The cost of revenues was only $2.1 million against $42.2 million in revenue, yielding a Gross Profit of $40.1 million. This results in a massive Gross Profit Margin of 95.02%. This is defintely a high-quality revenue stream.
• Operating Profit Margin: Operating Profit (or Operating Income) was approximately $5.1 million ($40.1M Gross Profit - $35.0M Core Operating Expenses). This gives an Operating Profit Margin of 12.09%.
• Net Profit Margin: The final Net Income of $3.6 million on $42.2 million in revenue gives a Net Profit Margin of 8.53%.

The core issue isn't the cost of providing the service, but the cost of running the business. Operating expenses like Sales & Marketing ($10.8M), Product Development ($6.4M), and General & Administrative ($17.8M) are the primary drag on profitability.

Profitability Trends and Industry Comparison

The trend in profitability is a major concern. The company is profitable-it's its seventh consecutive quarter of positive net income-but the metrics are contracting. Revenue fell 9% year-over-year in Q3 2025, and Net Income dropped from $5.3 million to $3.6 million in the same period.

This decline is a direct result of market pressures: client operating margins are compressed by price deflation and new taxes, so they are spending less on the WM Technology, Inc. platform.

To be fair, the company's profitability structure is fundamentally different from most of its clients. You can see this clearly in the margins:

The 95.02% gross margin confirms WM Technology, Inc. has a superior business model compared to plant-touching operators who face high costs of goods sold and Section 280E tax burdens. Still, the 12.09% Operating Margin shows that nearly 83% of that high gross profit is immediately consumed by overhead, sales, and development costs. Management did reduce GAAP operating expenses by 3% year-over-year in Q3 2025, a necessary move to sustain profitability.

If you want to dive into who is buying the stock despite these headwinds, you should check out Exploring WM Technology, Inc. (MAPS) Investor Profile: Who's Buying and Why?

The key action here is watching the Q4 2025 guidance, which projects revenue of $41 million to $43 million and Adjusted EBITDA of only $5 million to $7 million. That signals continued margin pressure, so management needs to keep that operational efficiency focus sharp.

Debt vs. Equity Structure

You want to know how WM Technology, Inc. (MAPS) is financing its operations-is it leaning on lenders or shareholders? Honestly, the answer is a breath of fresh air compared to most tech companies right now. As of the third quarter of 2025, the company's financial health is exceptionally clean: the CFO explicitly stated WM Technology operates with no debt on its balance sheet.

This means the company has virtually no long-term or short-term debt to service, which is a major advantage in a volatile market. This financial discipline gives them significant flexibility. Here's the quick math on what that means for leverage, or the use of borrowed money to finance assets:

• Total Debt (Q3 2025): Effectively $0, as per management's statements.
• Total Equity (Q2 2025): Approximately $128.0 million.
• Debt-to-Equity (D/E) Ratio: 0.00.

A Debt-to-Equity (D/E) ratio of 0.00 is rare in the software space. To be fair, the median D/E ratio for the broader Software industry is around 0.20 as of 2025, so WM Technology is dramatically under-leveraged. They're not using debt to fund growth, which cuts out interest expense and defintely reduces financial risk.

The company's strategy is to balance capital expenditure with internally generated cash flow, not outside debt. This is a classic bootstrap approach, favoring equity funding (retained earnings and capital from past stock issuances) over debt financing. This is why you haven't seen any major debt issuances, credit ratings, or refinancing activity in 2025-they just don't need it. They are funding their growth and strategic initiatives, like platform enhancements, with cash on hand, which grew to $62.6 million by the end of Q3 2025.

This low-leverage model is a significant strength for investors seeking stability, especially since the broader cannabis sector has seen investor interest cool, forcing many operators to turn to high-interest debt. WM Technology's financial structure positions it as a safe harbor in a turbulent industry. For a deeper dive into the company's overall financial picture, check out our full report on Breaking Down WM Technology, Inc. (MAPS) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if WM Technology, Inc. (MAPS) has the cash to cover its near-term obligations, especially in a challenging market. The direct takeaway is that the company maintains a strong liquidity position, driven by a solid cash balance and consistent positive cash flow from operations, which is a great sign of financial discipline.

As of September 30, 2025, WM Technology's liquidity ratios are exceptionally healthy. The Current Ratio sits at 2.54, meaning the company has $2.54 in current assets for every dollar of current liabilities. For a software and marketplace business, this is a very comfortable cushion. Even more telling is the Quick Ratio (or acid-test ratio), which excludes less-liquid assets like prepaid expenses. That figure is 2.28, which defintely shows their ability to cover immediate debts using only their most liquid assets, like cash and accounts receivable.

Here's the quick math on the balance sheet for the most recent quarter:

• Total Current Assets: $81.6 million
• Total Current Liabilities: $32.1 million

The company operates with no debt on the balance sheet, which gives them immense flexibility to navigate near-term market volatility or invest in strategic initiatives that align with their Mission Statement, Vision, & Core Values of WM Technology, Inc. (MAPS).

Working Capital and Cash Flow Trends

The trend in working capital is positive and shows management is focused on operational efficiency. Working capital (Current Assets minus Current Liabilities) increased from $39.1 million at the end of 2024 to $49.5 million as of September 30, 2025. This $10.4 million increase in the first nine months of 2025 is a clear indicator that the business is generating cash faster than it's consuming it for short-term needs.

Looking at the cash flow statement for the trailing twelve months (TTM) ended September 30, 2025, you see a consistent pattern of cash generation, which is a critical strength:

WM Technology's operating cash flow of $32.54 million over the last twelve months is robust, confirming their ability to self-fund operations and capital expenditures. This is a business that's generating cash, not burning it. They ended the third quarter of 2025 with a strong cash position of $62.6 million, up from $52.0 million at the end of 2024, marking their ninth consecutive quarter of positive cash generation.

Potential Liquidity Concerns or Strengths

The primary strength is the balance sheet structure itself-high cash, no debt, and a high Quick Ratio. The company is not reliant on external financing. The main potential concern isn't liquidity itself, but the underlying revenue pressure. Revenue for Q3 2025 was $42.2 million, down from the prior year period, which could eventually pressure cash flow if the trend continues. Still, their disciplined cost management has kept them profitable and cash-generative, so for now, liquidity is a major strength, not a concern.

Valuation Analysis

When you look at WM Technology, Inc. (MAPS), the core question is simple: Are you buying a deep value play or a falling knife? The valuation metrics suggest the stock is significantly undervalued based on earnings and assets, but the stock price action tells a story of intense market skepticism.

As of late November 2025, the stock trades at just about $0.78 a share, near the bottom of its 52-week range of $0.72 to $1.65. That's a brutal year, and the price has dropped by about 18.47% in the last 10 trading days alone, which defintely shows a bearish short-term trend. You're hiring before product-market fit, and the market is punishing you for it.

Here's the quick math on why traditional metrics flag WM Technology, Inc. as cheap:

• Price-to-Earnings (P/E) Ratio: The Trailing Twelve Months (TTM) P/E is around 11.8. For a tech-related company, that's incredibly low, especially compared to the broader market average, suggesting the company is generating high earnings relative to its current stock price.
• Forward P/E: This drops even further to a compelling 5.95, indicating analysts expect a significant jump in earnings over the next year.
• Price-to-Book (P/B) Ratio: At just 0.77, the stock trades below its book value. This means you are essentially buying the company's net assets for less than they are worth on the balance sheet, which is a classic value indicator.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio, which is a better measure for cash flow and debt-adjusted valuation (enterprise value divided by earnings before interest, taxes, depreciation, and amortization), sits at a low 4.23. This is a very attractive multiple for a profitable technology platform. What this estimate hides, however, is the market's concern about the sustainability of those earnings in a volatile regulatory environment like the cannabis industry.

You should also note that WM Technology, Inc. is not a dividend stock. The TTM dividend payout is $0.00, resulting in a 0.00% dividend yield. So, your return will rely entirely on capital appreciation.

The Street's view is cautiously optimistic, which is a major disconnect from the stock's performance. The consensus analyst rating is a Moderate Buy, based on one Buy and one Hold rating. The average 12-month price target is set at $2.61. Based on the current price of $0.78, this implies a massive forecasted upside of 233.12%.

The valuation table below summarizes the key data points you need to consider for your investment decision:

To be fair, the market is pricing in risk-specifically, the revenue decline and earnings miss reported in Q3 2025. The low multiples reflect a high-risk, high-reward bet on a turnaround. Your next step is to read Breaking Down WM Technology, Inc. (MAPS) Financial Health: Key Insights for Investors to understand the balance sheet strength behind these numbers. Finance: Check the Q3 2025 earnings call transcript for management's outlook on 2026 revenue guidance by the end of the week.

Risk Factors

You're looking at WM Technology, Inc. (MAPS) and seeing a profitable tech company in a high-growth sector, but honestly, the near-term risks are structural, not cyclical. The core issue is that the cannabis industry's financial health-which is MAPS' entire customer base-is under severe pressure, directly impacting their ad spend on the Weedmaps platform.

The company is navigating a tough market, evidenced by third-quarter 2025 revenue of only $42.2 million, a 9% drop year-over-year. This revenue softness is a direct result of their clients facing brutal price compression and regulatory headwinds, meaning your average monthly revenue per paying client fell to $2,693, a 12% decline from the prior year period. That's a clear signal of tightening client marketing budgets.

Here's the quick map of the most critical risks that could erode revenue and profitability:

• Market and Competition Risk: Persistent deflationary pressure on cannabis retail prices in mature markets is crushing client margins. Retail flower prices in California, for instance, were down roughly 9% year-over-year, and in Michigan, the drop was over 20%. This forces dispensaries to cut back on high-visibility placements, which are a major revenue stream for MAPS.
• Regulatory and Tax Risk: The patchwork of state-level regulations and punitive taxes is a massive headwind. Recent tax increases, like California's excise tax rising to 19% of sales or Michigan's new wholesale excise tax of 24%, directly weaken the purchasing power of MAPS' client base. Plus, the federal 280E tax code, which prevents cannabis businesses from deducting standard business expenses, remains a significant drag on customer profitability and, consequently, their spending on technology.
• Operational Risk: While the company is adding new clients in developing markets, this growth is offset by churn in more established states. The strategic risk here is that the new clients typically enter at lower spend levels, which is why the average revenue per client is falling, even as the total number of average monthly paying clients increased slightly to 5,221 in Q3 2025.

What this estimate hides is the potential for federal rescheduling, which could eliminate the 280E tax and instantly inject capital back into their customer base. Still, you can't bet on politics.

To be fair, management is not sitting still. They've focused on operational discipline, which is why they reported net income of $3.6 million and Adjusted EBITDA of $7.6 million for Q3 2025, despite the revenue drop. They are controlling what they can control.

Their mitigation strategy is clear: maintain a fortress balance sheet and invest strategically. They ended Q3 2025 with a strong cash balance of $62.6 million and no debt, which gives them the flexibility to weather this storm and invest in new products like their online head shop, Hedi, and expanded AI capabilities. They are also prioritizing expansion into emerging markets like New York, where they already have the majority of operational retailers on their platform.

Here is a snapshot of the core financial health and the near-term outlook:

The company is financially sound, but their performance is tethered to the deeply challenged economics of their cannabis clients. For a deeper look at the institutional interest, you should check out Exploring WM Technology, Inc. (MAPS) Investor Profile: Who's Buying and Why?

So, the action for you is to monitor the Q4 2025 revenue guidance of $41 million to $43 million; if they miss that, it means their cost-cutting can't defintely offset the client spending decline.

Growth Opportunities

You're looking at WM Technology, Inc. (MAPS) and seeing a complex picture: profitability is up, but core revenue is still under pressure in mature markets. Honestly, the future growth for WM Technology hinges on two clear levers: aggressively capturing emerging state markets and successfully monetizing new, higher-margin software products.

The company's strategy is a classic pivot toward what they can control-operational rigor and product innovation-while waiting for the massive regulatory tailwind of cannabis rescheduling to hit. They've been disciplined, delivering their eleventh consecutive quarter of positive Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) as of Q2 2025. That's a strong foundation.

Growth Drivers and Product Innovation

The primary growth driver isn't increasing the number of clients, but expanding their footprint in new, less-consolidated markets and selling more valuable software (e-commerce enablement tools) to existing clients. The average monthly revenue per paying client dropped to $2,693 in Q3 2025 from $3,043 in the prior year, so the focus is now on reversing that trend through new offerings.

Their key strategic moves are concrete and focused:

• Emerging Market Capture: WM Technology is prioritizing states like New York, where they already have the majority of operational retailers on their platform.
• New Product Monetization: They are launching expanded premium placement opportunities for brands and a new online head shop called Hedi.
• AI and Data: They are expanding their use of artificial intelligence (AI) and machine learning to standardize product data, which is defintely a necessary competitive edge in a highly fragmented industry.

2025 Fiscal Year Financial Projections

Near-term revenue growth is muted, but profitability is stable. The full-year 2025 revenue projection, based on actuals and management guidance, shows a tight range. Here's the quick math using the most recent data:

What this estimate hides is the continued pressure in established markets like California, where price deflation is still a major factor. The forecasted annual Earnings Per Share (EPS) of $0.16 for 2025 suggests a company that is turning the corner on profitability, even with revenue headwinds.

Competitive Advantages and Regulatory Opportunity

WM Technology's core competitive advantage is its market dominance. Their Weedmaps platform is essentially the digital infrastructure for the U.S. cannabis market, listing approximately 80% of dispensaries in state-legal markets. This creates a powerful network effect-more dispensaries attract more consumers, which in turn makes the platform more valuable for advertising. That's a strong moat.

Plus, the balance sheet is clean: $62.6 million in cash as of September 30, 2025, and no debt. This financial flexibility is crucial for navigating the regulatory uncertainty and investing in new markets. The biggest opportunity, though, is the potential federal cannabis rescheduling, which could eliminate the punitive 280E taxation for their clients. If that happens, the sudden boost to client profitability would likely translate into significantly higher advertising spend on the Weedmaps platform.

For a deeper dive into the balance sheet and cash flow, you should check out the full analysis in Breaking Down WM Technology, Inc. (MAPS) Financial Health: Key Insights for Investors. Finance: Keep a close eye on the Q4 2025 revenue actuals versus guidance to gauge the success of new product rollouts.