WM Technology (MAPS) AI Stock Analysis

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WM Technology

(NASDAQ:MAPS)

Rating:62Neutral

Price Target:

$1.00

▼(-9.91%Downside)

WM Technology's stock score of 62 is driven by strong financial performance in terms of operational efficiency and cash flow management. The positive aspects are tempered by challenges in revenue growth and profitability. Valuation is fair, though technical indicators suggest limited momentum. The earnings call provides a cautiously optimistic outlook, balancing growth with challenges.

WM Technology (MAPS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$171.35M

Dividend YieldN/A

Average Volume (3M)646.27K

Price to Earnings (P/E)13.8

Beta (1Y)1.02

Revenue Growth0.20%

EPS GrowthN/A

CountryUS

Employees440

SectorTechnology

Sector Strength84

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.02

Shares Outstanding105,053,764

10 Day Avg. Volume492,616

30 Day Avg. Volume646,266

Financial Highlights & Ratios

PEG Ratio1.64

Price to Book (P/B)2.38

Price to Sales (P/S)0.00

P/FCF Ratio7.08

Enterprise Value/Market Cap0.86

Enterprise Value/Revenue0.20

Enterprise Value/Gross Profit0.84

Enterprise Value/Ebitda1.21

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

WM Technology Business Overview & Revenue Model

Company DescriptionWM Technology, Inc., operating under the brand name Weedmaps, is a leading technology and software infrastructure provider to the cannabis industry. Founded in 2008 and headquartered in Irvine, California, the company operates within the healthcare and technology sectors. Weedmaps offers a comprehensive suite of cloud-based software solutions designed to support cannabis businesses, including dispensaries, cultivators, and manufacturers. Its core platform serves as a marketplace connecting consumers with cannabis retailers, providing valuable information such as product listings, pricing, and reviews.

How the Company Makes MoneyWM Technology primarily generates revenue through a subscription-based model by offering its software solutions and services to cannabis retailers and brands. These clients pay recurring fees for access to the Weedmaps platform, which includes tools for point-of-sale integration, compliance, and customer relationship management. Additionally, the company earns revenue through advertising and listing fees from cannabis businesses seeking increased visibility on its platform. Key partnerships with industry stakeholders further bolster its revenue streams, as Weedmaps facilitates transactions and interactions within the cannabis ecosystem. The company's earnings are significantly influenced by the regulatory environment of the cannabis industry, impacting the expansion and adoption of its services.

WM Technology Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -5.13%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted modest revenue growth and client base expansion, alongside significant technological advancements and a solid cash position. However, these positives were balanced by substantial regulatory challenges, a decrease in revenue from specific listings, declining revenue per client, and increased operating expenses.

Q1-2025 Updates

Positive Updates

Revenue Growth and Exceeding Guidance

First quarter revenue was $44.6 million, a modest increase of $0.2 million or 1% year-over-year, driven by growth in standard listings and display advertising. Adjusted EBITDA for the first quarter was $10.1 million, exceeding expectations.

Client Base Expansion

Average monthly paying clients for the quarter increased 5% year-over-year to 5,179, driven by new client acquisitions in underpenetrated markets.

Cash Growth and No Debt

The company generated $1.3 million in cash from operations and ended the first quarter with a cash balance of $53.3 million, marking the seventh consecutive quarter of cash growth, with no debt on the balance sheet.

Technological Advancements

Progress in technology and product development with improvements to data infrastructure, automation, and machine learning capabilities under the new CTO.

Negative Updates

Regulatory Challenges

The cannabis industry faces ongoing challenges due to regulatory inaction, over-taxation, and competition from unregulated hemp. Tariffs also pose a new challenge, potentially increasing operating costs.

Revenue Decline in Featured and Deal Listings

A $1 million decline in revenue from featured and deal listings reflects financial pressures in the industry, limiting discretionary spend.

Decline in Revenue Per Client

Average monthly revenue per paying client declined to $2,871 from $2,997 in the prior year, due to pricing pressures, consolidation, and reduced marketing budgets.

Increase in Operating Expenses

GAAP operating expenses increased by $1.3 million or 3% year-over-year, with a rise in general and administrative expenses due to non-recurring charges.

Company Guidance

During the first quarter of 2025 earnings call, WM Technology, Inc. provided a cautiously optimistic guidance amidst industry challenges. The company reported a first-quarter revenue of $44.6 million, a 1% year-over-year increase, with growth in standard listings and display advertising partially offset by a decline in featured and deal listings. The average monthly paying clients rose by 5% to 5,179, although the average monthly revenue per paying client dropped to $2,871 due to financial pressures in mature markets. Despite a 3% increase in GAAP operating expenses to $42 million, net income grew to $2.5 million, driven by warrant adjustments and higher interest income. Adjusted EBITDA exceeded expectations at $10.1 million, supported by reduced advertising and wage costs. The company ended the quarter with a cash balance of $53.3 million, marking seven consecutive quarters of cash growth with no debt. For the second quarter, WM Technology anticipates revenues of approximately $45 million and a non-GAAP adjusted EBITDA of around $8 million, as it continues to navigate regulatory and market challenges within the cannabis industry.

WM Technology Financial Statement Overview

Summary

WM Technology presents strong operational capabilities with robust gross margins and improving cash flow metrics. The balance sheet shows moderate leverage and a stable capital structure. However, challenges persist in revenue growth and profitability consistency, requiring focus on sustaining growth and profitability.

Income Statement

Neutral

The company shows a strong gross profit margin with TTM at 95.16%, indicating effective cost management. However, the net profit margin is modest at 4.36% TTM, with recent years showing inconsistent profitability. Revenue growth is negative year-over-year, indicating a decline from 2022 to 2024. EBIT and EBITDA margins are improving but were negative in earlier years, highlighting past operational challenges.

Balance Sheet

Neutral

The debt-to-equity ratio is moderate at 0.60 TTM, showing a manageable level of leverage. The return on equity has improved significantly to 16.61% TTM, indicating better utilization of equity. The equity ratio is 26.37% TTM, suggesting a stable capital structure, although there were fluctuations in previous years.

Cash Flow

Positive

The company has a strong free cash flow to net income ratio of 3.01 TTM, indicating good cash generation relative to earnings. Operating cash flow to net income ratio stands at 4.34 TTM, showing efficient cash operations. Free cash flow growth is stable, reflecting good cash management, although past periods showed variability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
184.74M	184.51M	187.99M	215.53M	193.15M	161.79M
	Gross Profit
175.78M	175.50M	175.47M	200.12M	185.21M	154.16M
	EBIT
13.63M	14.75M	-18.46M	-69.62M	-8.18M	41.20M
	EBITDA
30.52M	31.80M	23.01M	-49.15M	-1.38M	45.18M
	Net Income Common Stockholders
8.05M	7.64M	-9.90M	-82.65M	152.22M	38.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.97M	51.97M	34.35M	28.58M	67.78M	19.92M
	Total Assets
33.75M	181.87M	167.02M	199.03M	365.14M	53.89M
	Total Debt
205.32K	30.09M	33.04M	39.38M	44.84M	205.00K
	Net Debt
-4.76M	-21.87M	-1.31M	10.79M	-22.94M	-19.71M
	Total Liabilities
20.95M	61.80M	63.87M	84.26M	233.20M	24.62M
	Stockholders Equity
12.80M	36.08M	16.38M	13.38M	63.56M	29.27M
Cash Flow		Free Cash Flow
24.19M	25.04M	11.06M	-27.68M	15.16M	37.92M
	Operating Cash Flow
34.94M	36.68M	22.93M	-11.62M	23.09M	39.24M
	Investing Cash Flow
-10.75M	-11.64M	-11.87M	-17.77M	-30.43M	-1.31M
	Financing Cash Flow
-6.63M	-7.42M	-5.29M	-9.80M	55.20M	-22.97M

WM Technology Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price1.11

Price Trends

50DMA

1.10

Positive

100DMA

1.22

Negative

200DMA

1.14

Negative

Market Momentum

MACD

-0.02

Negative

RSI

52.71

Neutral

STOCH

86.04

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAPS, the sentiment is Neutral. The current price of 1.11 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.10, and below the 200-day MA of 1.14, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.71 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 2 New Risks

Public statements from investors, including expressions of interest or proposals to purchase our company, may increase the volatility of, or otherwise have an adverse impact on, the market price of our Class A common stock. Q4, 2024

In the past we have not met, and may in the future not comply with, the listing standards of Nasdaq, and as a result our Class A Common Stock may be delisted. Delisting could adversely affect the liquidity of our Class A Common Stock and the market price of our Class A Common Stock could decrease. Q4, 2024

WM Technology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PERF	72 Outperform	$184.86M	27.37	4.60%	―	11.28%	41.56%
MAPS	62 Neutral	$171.35M	13.77	23.24%	―	0.20%	―
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
LAW	59 Neutral	$270.59M	―	-33.75%	―	3.84%	-76.01%
ONTF	56 Neutral	$234.89M	―	-24.47%	―	-8.39%	7.79%
SMRT	51 Neutral	$172.43M	―	-22.66%	―	-25.43%	-135.09%
MRT	42 Neutral	$214.25M	―	103.42%	―	―	―

* Technology Sector Average

Performance Comparison

MAPS

WM Technology

1.11

0.15

15.63%

ONTF

ON24

5.56

-0.10

-1.77%

SMRT

SmartRent

0.92

-1.52

-62.30%

PERF

Perfect Corp

1.79

-0.16

-8.21%

LAW

CS Disco

4.33

-1.68

-27.95%

MRT

Marti Technologies

2.60

0.84

47.73%

WM Technology Corporate Events

M&A Transactions

WM Technology Receives Acquisition Proposal from Co-Founders

Neutral

Dec 19, 2024

WM Technology has received a non-binding proposal from co-founders Douglas Francis and Justin Hartfield to acquire all outstanding shares of the company not already owned by them for $1.70 per share, representing a significant premium over current trading levels. A special committee of independent directors has been formed to evaluate the proposal with the assistance of financial and legal advisors, although there is no guarantee that a definitive agreement will be reached or the transaction completed.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.