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Wm Technology, Inc. (MAPS)
NASDAQ:MAPS
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WM Technology
(NASDAQ:MAPS)
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Rating:60Neutral
Price Target:
$0.92
▲(9.17% Upside)
The overall stock score of 60 reflects WM Technology's strong gross margins and improving profitability metrics, which are offset by declining revenue and inconsistent cash flow performance. The technical analysis indicates a bearish trend with limited momentum, while the valuation suggests the stock is undervalued. The absence of earnings call and corporate events data did not impact the score.
Positive Factors
Strong Gross Margins
High gross margins indicate efficient cost management and pricing power, which are crucial for sustaining profitability in the competitive cannabis technology sector.
Improving Profitability Metrics
Improved profitability metrics suggest operational efficiency and potential for enhanced shareholder value, critical for long-term financial health despite revenue challenges.
Improved Financial Leverage
Reducing debt-to-equity ratio enhances financial stability and flexibility, allowing WM Technology to invest in growth opportunities and weather industry volatility.
Negative Factors
Declining Revenue Growth
Declining revenue growth poses a risk to long-term sustainability, as it may limit the company's ability to invest in innovation and compete effectively in the market.
Inconsistent Cash Flow Performance
Inconsistent cash flow can hinder the company's ability to fund operations and strategic initiatives, impacting its long-term growth and financial resilience.
Volatile Return on Equity
Volatile return on equity reflects inconsistent financial performance, which can affect investor confidence and the company's ability to attract capital for growth.
WM Technology (MAPS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$135.82M
Dividend YieldN/A
Average Volume (3M)1.45M
Price to Earnings (P/E)11.4
Beta (1Y)0.90
Revenue Growth0.59%
EPS GrowthN/A
CountryUS
Employees440
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding107,897,130
10 Day Avg. Volume1,165,876
30 Day Avg. Volume1,454,328
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)3.68
Price to Sales (P/S)0.72
P/FCF Ratio5.31
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit1.00
Enterprise Value/Ebitda6.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.15
Revenue Forecast (FY)$183.25M
WM Technology Business Overview & Revenue Model
Company DescriptionWM 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.
How the Company Makes MoneyWM Technology generates revenue primarily through subscription fees for its software services, which provide cannabis retailers with essential tools for their operations. The company also earns money through transaction fees on sales processed through its platform. Additionally, WM Technology has established partnerships with various cannabis brands and retailers, enhancing its service offerings and driving further revenue through integrated marketing services and analytics solutions. The growth of the legal cannabis market and the increasing demand for technology solutions in this sector significantly contribute to its earnings.
WM Technology Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced sentiment with consistent profitability and strategic advancements mitigating the impact of revenue decline and market challenges. The company shows resilience in emerging markets and product innovation despite regulatory hurdles and declining revenue metrics.Q2-2025 Updates
Positive Updates
Consecutive Profitability and Cash Flow
WM Technology achieved its 11th consecutive quarter of adjusted EBITDA profitability and eighth consecutive quarter of positive cash flow, signifying consistent operational rigor.
Emerging Market Progress
The company is witnessing accelerated client onboarding in emerging markets like New York, achieving significant retail density on its marketplace.
Expansion in Product Offerings
Significant progress in new product development under CTO Sarah Griffis, with promising results from beta testing expanded premium placement opportunities for brands.
Strong Balance Sheet
WM Technology ended the quarter with $59 million in cash, marking its eighth consecutive quarter of cash growth and maintaining a debt-free position.
Increased Client Acquisition
The company increased its average monthly paying clients by 4% to 5,241, driven by new client acquisition in emerging markets such as New York and Ohio.
Negative Updates
Revenue Decline
Second quarter revenue was $44.8 million, a decline of 2% from the prior year, affected by ongoing market headwinds and reduced client marketing spend.
Challenges in Key Markets
Pressure in key markets like California and Michigan due to increased taxes, overregulation, and price compression, impacting revenue opportunities.
Average Revenue Per Client Decline
Average monthly revenue per paying client declined 6% to $2,852, due to reduced spend in mature markets and onboarding new clients at lower initial spend levels.
Regulatory Uncertainty in Hemp Market
Legislative activities in states like Texas create uncertainty in the hemp market, delaying the company’s potential product expansion in this area.
Revenue Outlook Lowered
The company expects third-quarter revenue to be between $41 million and $43 million, reflecting ongoing market softness and volatility.
Company Guidance
During WM Technology, Inc.'s second quarter 2025 earnings call, the company provided guidance indicating expected third-quarter revenue between $41 million to $43 million and non-GAAP adjusted EBITDA ranging from $5 million to $7 million. Despite a 2% year-over-year revenue decline in Q2 to $44.8 million, the company achieved an 81% increase in net income to $2.2 million and a 16% rise in non-GAAP adjusted EBITDA to $11.7 million. The decline was mainly attributed to lower revenue from featured and deal listings due to market headwinds, while display advertising saw growth. Average monthly paying clients increased by 4% to 5,241, although average monthly revenue per paying client fell by 6% to $2,852. The company ended the quarter with $59 million in cash, marking eight consecutive quarters of cash growth, and maintained no debt, providing flexibility amid market uncertainties.WM Technology Financial Statement Overview
Summary
WM Technology demonstrates strong gross margins and improving profitability metrics, but faces challenges with declining revenue and inconsistent cash flow performance. The balance sheet shows signs of improvement in leverage, but the company needs to address its revenue growth and cash flow stability to ensure long-term financial health.Income Statement
WM Technology shows a strong gross profit margin of over 95% consistently, indicating efficient cost management. However, the company has experienced declining revenue growth, with a significant drop in the TTM period. Net profit margins have improved recently but remain modest. The EBIT and EBITDA margins are positive, showing operational profitability, but the declining revenue trend is a concern.Balance Sheet
The company has managed to reduce its debt-to-equity ratio over time, indicating improved financial leverage. However, the return on equity has been volatile, with recent improvements. The equity ratio is relatively low, suggesting potential financial risk. Overall, the balance sheet shows some improvement but remains a concern due to past high leverage.Cash Flow
WM Technology's cash flow performance is mixed. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, free cash flow growth has been negative recently, and the free cash flow to net income ratio shows some inconsistency. The company needs to stabilize its cash flow generation to improve its financial health.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.31M | 184.51M | 187.99M | 215.53M | 193.15M | 161.79M |
| Gross Profit | 170.38M | 175.50M | 175.47M | 200.12M | 185.21M | 154.16M |
| EBITDA | 28.08M | 31.80M | 23.01M | -49.15M | -1.38M | 45.18M |
| Net Income | 7.88M | 7.64M | -9.90M | -115.99M | 60.38M | 38.83M |
Balance Sheet | ||||||
| Total Assets | 192.91M | 181.87M | 167.02M | 199.03M | 365.14M | 53.89M |
| Cash, Cash Equivalents and Short-Term Investments | 62.59M | 51.97M | 34.35M | 28.58M | 67.78M | 19.92M |
| Total Debt | 27.44M | 30.09M | 33.04M | 39.38M | 44.84M | 205.00K |
| Total Liabilities | 57.55M | 61.80M | 63.87M | 84.26M | 233.20M | 24.62M |
| Stockholders Equity | 56.91M | 36.08M | 16.38M | 13.38M | 63.56M | 29.27M |
Cash Flow | ||||||
| Free Cash Flow | 17.50M | 25.04M | 11.06M | -27.68M | 15.16M | 37.92M |
| Operating Cash Flow | 26.13M | 36.68M | 22.93M | -11.62M | 23.09M | 39.24M |
| Investing Cash Flow | -8.63M | -11.64M | -11.87M | -17.77M | -30.43M | -1.31M |
| Financing Cash Flow | -3.59M | -7.42M | -5.29M | -9.80M | 55.20M | -22.97M |
WM Technology Technical Analysis
Negative
0.84
Price Trends
0.92
Negative
1.04
Negative
1.05
Negative
Market Momentum
-0.03
Positive
44.09
Neutral
53.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAPS, the sentiment is Negative. The current price of 0.84 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.92, and below the 200-day MA of 1.05, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAPS.
WM Technology Risk Analysis
WM Technology disclosed 81 risk factors in its most recent earnings report. WM Technology reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WM Technology Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $348.13M | -5.12 | -25.48% | ― | -24.30% | -181.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $135.82M | 11.36 | 18.24% | ― | 0.59% | ― | |
59 Neutral | $338.00M | -10.77 | -20.20% | ― | -6.23% | 28.57% | |
48 Neutral | $618.16M | -9.09 | -28.65% | ― | 16.40% | 22.80% | |
47 Neutral | $58.65M | -0.94 | -451.95% | ― | 35.79% | 14.85% | |
46 Neutral | $187.33M | -3.09 | -120.79% | ― | -9.86% | 0.87% |
* Technology Sector Average
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WM Technology
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.