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1. Company Snapshot

1.a. Company Description

WM Technology, Inc.provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States, Canada, and internationally.The company offers Weedmaps marketplace that allows cannabis users to search for and browse cannabis products from retailers and brands, and reserve products from local retailers; and information on the cannabis plant, and the industry and advocate related services for legalization.


It also provides WM Business suite of monthly subscription-based software solutions, including WM Orders, WM Dispatch, WM Store, WM Dashboard, integrations, and API platform, as well as access to its WM Retail and WM Exchange products.In addition, the company offers advertising solutions; Sprout, a customer relationship management solution; and Cannveya, a delivery and logistics software solution.WM Technology, Inc.


was founded in 2008 and is headquartered in Irvine, California.

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1.b. Last Insights on MAPS

WM Technology's recent performance has been positively driven by its strong Q2 2025 earnings report and growing presence in the expanding US cannabis industry. As an ancillary company providing vital tools and marketplaces, WM Technology benefits from increased demand and potential federal legalization and banking reform. With a debt-free and cash-rich position, the company has a low valuation. Its inclusion in lists of high-flying stocks under $10 to buy suggests growing investor interest.

1.c. Company Highlights

2. WM Technology Delivers Steady Q1 Performance Amid Industry Headwinds

WM Technology, Inc. reported a solid Q1 2025, with revenue of $44.6 million, slightly above the high end of its guidance range. This represents a 1% year-over-year increase, driven by growth in standard listings and display advertising. Despite ongoing challenges such as regulatory pressures and competition from unregulated hemp operators, the company maintained disciplined execution, expanding its client base to 5,179 average monthly paying clients, a 5% increase from the prior year. However, revenue per client declined due to industry-wide margin compression. On the profitability front, the company delivered a net income of $2.5 million and an adjusted EBITDA of $10.1 million, beating consensus estimates. The company also ended the quarter with a strong cash position of $53.3 million, reflecting its focus on lean operations.

Publication Date: May -21

📋 Highlights
  • Revenue Exceeds Guidance: Generated $44.6 million, a 1% year-over-year increase, beating Q1 2025 expectations.
  • Client Base Growth: Average monthly paying clients rose 5% to 5,179, despite industry challenges.
  • Net Income Improvement: Reported net income of $2.5 million, reflecting disciplined operational execution.
  • Strong Adjusted EBITDA: Achieved $10.1 million in adjusted EBITDA, surpassing expectations.
  • Cash Position Strength: Ended the quarter with $53.3 million in cash, supporting future growth initiatives.

Operational Resilience and Strategic Progress

Management highlighted the company's ability to navigate a challenging environment, with CFO, Chris Beals, noting, "Our focus on technology advancements and targeted marketing initiatives, such as the 420 activations, has helped us maintain momentum despite external pressures." The company's emphasis on innovation and client acquisition appears to be paying off, as it continues to build a loyal customer base. However, the decline in revenue per client underscores the competitive intensity and pricing pressures in the market.

Guidance and Valuation Analysis

Looking ahead, WM Technology provided Q2 revenue guidance of $45 million, with adjusted EBITDA expected to moderate to $8 million, reflecting seasonality and ongoing industry challenges. Analysts remain optimistic about the company's longer-term prospects, with consensus estimates pointing to a 12.6% revenue growth rate for the next fiscal year. From a valuation standpoint, the stock currently trades at a P/E ratio of 13.58 and an EV/EBITDA of 4.52, levels that appear reasonable given the company's stable cash flows and strong free cash flow yield of 14.92%. The ROIC of 8.75% and ROE of 23.23% further highlight the company's efficient capital allocation and profitability metrics.

3. NewsRoom

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Optimi Health to Supply MDMA to MAPS Israel's Clinical Trial for Trauma-Related PTSD

Nov -26

Source: newsfilecorp.com

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WM Technology, Inc. (MAPS) Q3 2025 Earnings Call Prepared Remarks Transcript

Nov -07

Source: seekingalpha.com

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Here Are A Few Ways Marijuana Stocks Can Make You Money

Oct -31

Source: marijuanastocks.com

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3 High-Flying Stocks Under $10 to Buy Hand Over Fist Right Now

Oct -07

Source: 247wallst.com

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Cannabis Growth Outlook 2025: Best Ancillary Stocks to Watch This Week

Sep -25

Source: marijuanastocks.com

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This Week's Top Ancillary Cannabis Stocks: Balancing Opportunity with Risk

Aug -28

Source: marijuanastocks.com

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WM Technology Could Double

Aug -24

Source: seekingalpha.com

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WM Technology, Inc. (MAPS) Q2 2025 Earnings Call Transcript

Aug -08

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.70%)

6. Segments

Featured and Deal Listings

Expected Growth: 6.5%

WM Technology, Inc.'s 6.5% growth in Featured and Deal Listings is driven by increasing adoption of cannabis delivery and curbside pickup, expansion into new markets, and strategic partnerships. Additionally, the company's investments in technology and marketing have improved customer engagement and retention, leading to higher transaction volumes and revenue growth.

Weedmaps

Expected Growth: 7.5%

Weedmaps' 7.5% growth driven by increasing adoption of cannabis dispensaries and delivery services, expansion into new markets, and rising demand for online ordering and delivery solutions. Additionally, WM Technology's investments in technology and marketing, as well as its strong brand recognition, contribute to its growth momentum.

Other Ad Solutions

Expected Growth: 6.0%

WM Technology's Other Ad Solutions segment growth is driven by increasing demand for cannabis-related advertising, expansion into new markets, and strategic partnerships. The company's focus on providing targeted and compliant advertising solutions resonates with cannabis businesses, leading to a 6.0% growth rate.

7. Detailed Products

Weedmaps

A leading online platform that provides cannabis consumers with a robust search and discovery tool to find and discover cannabis products, dispensaries, and doctors.

WM Business

A suite of software solutions designed to help cannabis businesses manage their operations, including point-of-sale, inventory management, and online ordering.

WM Ads

A digital advertising platform that allows cannabis businesses to reach their target audience and increase brand awareness.

WM Retail

A retail platform that provides cannabis retailers with a comprehensive solution for managing their online presence, including e-commerce, online ordering, and delivery logistics.

8. WM Technology, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

WM Technology, Inc. operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand recognition and customer loyalty mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

WM Technology, Inc. has a large customer base, but the customers have significant bargaining power due to the availability of substitutes and the low switching costs. This gives customers the power to negotiate prices and demand better services.

Bargaining Power Of Suppliers

WM Technology, Inc. has a diversified supplier base, and the suppliers do not have significant bargaining power. The company's large scale of operations and strong relationships with suppliers also reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants in the industry is moderate, as there are significant barriers to entry, including high capital requirements and regulatory hurdles. However, the increasing trend of digitalization and innovation in the industry may attract new entrants.

Intensity Of Rivalry

The industry in which WM Technology, Inc. operates is highly competitive, with many established players and new entrants vying for market share. The company faces intense competition, which may lead to pricing pressures and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.86%
Debt Cost 3.95%
Equity Weight 33.14%
Equity Cost 8.08%
WACC 5.32%
Leverage 201.73%

11. Quality Control: WM Technology, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Olo

A-Score: 5.4/10

Value: 3.5

Growth: 8.3

Quality: 5.2

Yield: 0.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
WM Technology

A-Score: 4.5/10

Value: 7.5

Growth: 3.0

Quality: 7.0

Yield: 0.0

Momentum: 8.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
CS Disco

A-Score: 4.5/10

Value: 7.4

Growth: 4.9

Quality: 5.4

Yield: 0.0

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
ShotSpotter

A-Score: 4.1/10

Value: 5.3

Growth: 5.8

Quality: 4.4

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
PagerDuty

A-Score: 3.8/10

Value: 3.9

Growth: 7.8

Quality: 3.5

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Jamf

A-Score: 3.3/10

Value: 4.2

Growth: 5.8

Quality: 4.8

Yield: 0.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.87$

Current Price

0.87$

Potential

-0.00%

Expected Cash-Flows