WM Technology (NASDAQ:MAPS) executives said the company managed through ongoing cannabis industry pressure in 2025 by emphasizing operating discipline, liquidity, and targeted investment in its platform, even as revenue and client spending softened in several mature markets.
On the company’s fourth-quarter and full-year 2025 earnings call held March 12, 2026, CEO Doug Francis said Weedmaps remained focused on long-term priorities amid what he described as “significant structural headwinds” across the sector. CFO Susan Echard detailed how pricing compression, illicit-market competition, and high excise taxes weighed on operator margins and, in turn, marketing budgets that support WM Technology’s advertising-driven marketplace.
Full-year results: revenue down, adjusted EBITDA still positive
Fourth-quarter revenue totaled $43 million, down 10% year-over-year. Francis said fourth-quarter revenue came in at the top end of prior guidance and adjusted EBITDA exceeded guidance for the quarter, though both measures were down by 10% or more compared to the prior-year period due to industry conditions that persisted into early 2026.
Industry pressure: client consolidation and lower marketing spend
Management pointed to continued consolidation in cannabis, describing two primary groups reshaping the landscape: multi-state operators (MSOs) concentrating on states with more favorable economics and regulatory frameworks, and large California-based retailers expanding in a highly competitive low-margin environment.
Francis said consolidation creates potential challenges for Weedmaps, including fewer operators competing for visibility on the platform and streamlined product assortment that can narrow the set of brands and items available to consumers. He said the company’s response includes enhancing product offerings, deepening relationships with large California-based clients and MSO partners, improving adoption in “regulatory capture” states where Weedmaps has historically been less present, and strengthening the overall marketplace experience.
Echard said severe pricing compression, illicit-market competition, and elevated excise taxes continued to pressure client margins in WM Technology’s core markets, limiting their ability to spend on the platform. She said the impact showed up in lower spend across the company’s Featured and Deal Listings, which she described as more sensitive to shifts in marketing budgets. She also cited contraction and consolidation in major markets, particularly California and Michigan, where both total retail sales and average retail prices declined year-over-year throughout 2025.
Paying clients and ARPC trends
Average paying clients in the fourth quarter were 5,120, down about 2% both year-over-year and sequentially. Echard attributed the decline to consolidation and operator exits in markets such as California, Michigan, and Oklahoma, partially offset by growth in newer markets like New York. For the full year, average paying clients were 5,190, up 2% compared to 2024.
Average revenue per paying client (ARPC) for both the fourth quarter and the full year was approximately $2,800, down from prior-year levels. Echard said the decline reflected lower spend from certain existing clients amid tighter marketing budgets, as well as the addition of clients in newer markets that typically begin with lower initial spending. She added that New York client count nearly doubled year-over-year, and the company also saw growth in states such as Ohio, although those gains did not offset pressure in more mature markets.
Costs, one-time items, and profitability
Against the weaker revenue backdrop, management emphasized cost controls. Total operating expenses increased modestly by 2% to $174 million for full-year 2025, compared to $170 million in 2024, primarily due to non-recurring items.
Echard said full-year sales and marketing expenses declined by $2 million and product development expenses fell by $8 million, driven by lower headcount-related costs and reduced advertising spend after actions taken earlier in the year to “optimize and refocus” those teams. However, she said those reductions were more than offset by higher general and administrative expense, which increased by about $6 million year-over-year.
She cited several items affecting G&A and overall results, including:
- A $2.3 million non-cash loss contingency recorded in the second quarter related to a contractual obligation with the company’s server provider.
- A $2.8 million legal settlement disclosed as a subsequent event in the company’s 2025 Form 10-K.
- A fourth-quarter non-cash asset impairment charge of approximately $7.8 million, largely related to goodwill.
Net income for full-year 2025 was $3 million. Echard said the company’s operating model enabled it to manage expenses, maintain profitability, and continue investing while self-funding operations.
View on Schedule III and outlook for 2026
Francis said the company remained cautious about the potential impact of cannabis rescheduling to Schedule III, despite positive headlines. He argued that rescheduling would not make cannabis federally legal and would not immediately enable Weedmaps to enter new business lines or launch new revenue strategies. Francis also said that, as a company serving the cannabis market while listed on a major U.S. exchange, WM Technology faces restrictions affecting monetization, transactions, and logistics that limit its ability to deliver a “regular e-commerce experience” and fully leverage its marketplace.
He also discussed potential implications of Section 280E tax treatment, saying that while eliminating 280E could improve cash flows for some operators, the impact may be more limited than industry sentiment suggests because many plant-touching companies have already adopted positions or strategies that deliver similar cash flow benefits. Francis added that rescheduling would not erase historical tax liabilities and that tax benefits may disproportionately favor larger operators and MSOs, potentially accelerating consolidation—an outcome he said could pressure Weedmaps’ business model.
For 2026, Echard said many of the dynamics that affected clients in 2025 carried into early 2026 and are expected to persist through the year. The company expects first-quarter revenue to decline sequentially by mid- to high-single digits from the fourth quarter. WM Technology said it plans to continue investing opportunistically, but will not provide adjusted EBITDA guidance for 2026 due to variability in the timing of investments. Management said it remains focused on preserving financial flexibility and disciplined capital allocation.
About WM Technology (NASDAQ:MAPS)
WM Technology, Inc is a software-as-a-service provider that delivers cloud-based solutions to the wealth and asset management industry. The company’s platform is designed to support financial advisors, broker-dealers and registered investment advisors with digital investment advice, portfolio management, performance reporting and compliance monitoring.
WM Technology’s product suite includes tools for streamlined client onboarding, interactive financial planning, automated portfolio rebalancing and tax-aware investment strategies.
