WM Technology Inc (NASDAQ:MAPS) reported its third-quarter 2025 financial results, delivering a performance that fell short of analyst expectations on both the top and bottom lines. The company's quarterly figures reflect the ongoing pressures within the cannabis industry, which management cited as a continued headwind.
Earnings and Revenue Versus Estimates
The company's financial results for the quarter ended September 30, 2025, came in below Wall Street's projections. The key metrics highlight a challenging period for the cannabis technology provider.
- Revenue: The company reported revenue of $42.2 million, which missed the analyst consensus estimate of $43.4 million.
- Earnings Per Share (EPS): WM Technology reported non-GAAP EPS of $0.02, falling short of the estimated $0.04 per share.
This dual miss indicates that the company faced difficulties in both generating sales and maintaining profitability at anticipated levels during the quarter.
Market Reaction
The market's response to the earnings release was decisively negative. Following the announcement, the stock traded down over 3% in after-hours trading. This immediate price action suggests investor disappointment with the company's inability to meet quarterly expectations. The negative sentiment is further contextualized by the stock's recent performance, which has seen a decline of over 18% in the past month, indicating that concerns about the company's near-term prospects may have been building.
Press Release Summary
The earnings report detailed a quarter of contraction amid a difficult operating environment. Key takeaways from the press release include:
- Financial Performance: Revenue decreased to $42.2 million from $46.6 million in the prior year period. Net income also declined to $3.6 million, down from $5.3 million a year ago.
- Client Metrics: The company reported a mixed picture with its user base. While average monthly paying clients increased to 5,221 from 5,100, the average monthly revenue per paying client fell significantly to $2,693 from $3,043. This points to increased client acquisition but at lower spending levels.
- Profitability: Adjusted EBITDA decreased to $7.6 million from $11.3 million in the same quarter last year.
- Balance Sheet: The company maintained a strong cash position, with cash increasing to $62.6 million as of September 30, 2025.
- Executive Commentary: CEO Doug Francis described the quarter as one of "disciplined execution in a challenging market," while CFO Susan Echard noted that "industry pressures continue to affect our clients’ operating margins and ability to spend on our platform."
Business Outlook Versus Estimates
Looking ahead, WM Technology provided guidance for the fourth quarter of 2025 that also sits below current analyst expectations.
- Q4 2025 Revenue Guidance: The company expects revenue between $41 million and $43 million. The midpoint of this range, $42 million, is below the analyst sales estimate of $43.8 million for the quarter.
- Q4 2025 Adjusted EBITDA Guidance: The company projects Adjusted EBITDA between $5 million and $7 million.
This conservative outlook for the final quarter of the year likely contributed to the negative market reaction, as it signals that management anticipates the challenging conditions to persist.
Conclusion
WM Technology's third-quarter results and fourth-quarter guidance underscore the persistent headwinds facing the cannabis sector. The company's inability to meet revenue and earnings estimates, coupled with a decline in key profitability metrics, has dampened investor confidence, as evidenced by the stock's after-hours decline. While the company continues to add clients and maintains a solid cash balance, the pressure on client spending and margins remains a significant challenge. Investors will be watching closely to see if the company's disciplined operational focus can navigate these industry-wide pressures effectively in the coming quarters.
For a detailed look at historical earnings and future analyst estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security.
