WM Technology Q4 revenue falls 10% as client spend drops amid pricing pressue

Overview

• U.S. cannabis marketplace's Q4 revenue fell yr/yr amid pricing pressure and lower client spend

• Company posted Q4 net loss of $5.0 mln, down from net income a year earlier

Outlook

• Company expects Q1 2026 revenue to decline by mid- to high-single digit percentages sequentially

• WM Technology will not provide Adjusted EBITDA guidance for Q1 2026

Result Drivers

• PRICING PRESSURE - Co said ongoing pricing pressure in core markets compressed client operating margins and constrained marketing budgets

• CLIENT SPEND DECLINES - Co attributed lower average monthly revenues per paying client to spend declines in established markets, driven by price deflation and industry consolidation

• CLIENT CHURN - Co said decrease in average monthly paying clients was largely due to churn in more established markets, partially offset by new client acquisitions in developing markets

Company press release: ID:nBw38gjJHa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for WM Technology Inc is $2.61, about 243.3% above its March 11 closing price of $0.76

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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