WM Technology, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Q2 2026 revenue was $42.4 million, a decrease from $44.8 million in the prior year period, driven by customer margin compression and cash flow constraints.
• Net income increased to $2.9 million (reported as $2,882 thousand in tables) compared to $2.2 million in the prior year period.
• Adjusted EBITDA decreased to $5.0 million (reported as $4,967 thousand) from $11.7 million in the prior year period.
• Average monthly paying clients declined to 5,040 from 5,241 in the prior year period due to churn in established markets.
• Average monthly revenue per paying client decreased to $2,807 from $2,852 in the prior year period, attributed to spend declines in established markets.
• Cash and cash equivalents increased to $60.5 million as of June 30, 2026, from $59.0 million as of June 30, 2025.
• Total shares outstanding were 159.7 million as of June 30, 2026.
• Deferred revenue increased to $5.8 million as of June 30, 2026, from $5.5 million as of December 31, 2025.
• Total liabilities decreased to $51.7 million as of June 30, 2026, from $58.9 million as of December 31, 2025.
• Operating lease liabilities (current and non-current combined) decreased from $26.6 million at year-end 2025 to $24.7 million at June 30, 2026.
• Net cash provided by operating activities for the six months ended June 30, 2026, was $6.9 million, down from $16.7 million in the prior year period.

Guidance and Future Outlook

• The Company expects third quarter 2026 revenue to decline by mid-single digit percentages sequentially from the second quarter.
• Guidance assumes no business acquisitions, investments, restructurings, or legal settlements are concluded in the period.

Business Segments and Product Lines

• The Company operates Weedmaps, a marketplace for consumers, and eCommerce and compliance software solutions for cannabis businesses in U.S. state-legal markets.
• Management is strengthening the core marketplace and expanding into underpenetrated states.
• Resources are being allocated to targeted marketing, product enhancements, and automation initiatives to improve scalability and operating efficiency.

Market and Competitive Landscape

• The cannabis industry is entering a more demanding phase with sustained economic and regulatory pressures reshaping the competitive landscape in established markets.
• Industry challenges include price deflation and ongoing consolidation.
• The Company is evaluating adjacent opportunities across the broader cannabis ecosystem to support long-term growth.

Risks and Challenges

• Risks include the impact of the Company's delisting from Nasdaq and deregistration under Section 12(b) of the Securities Exchange Act of 1934 on liquidity and security prices.
• Potential for less liquidity and greater price volatility on OTC Markets.
• Material weaknesses in internal controls and the ability to remediate them.
• Ongoing litigation and regulatory proceedings, including shareholder derivative actions.
• Macroeconomic conditions, inflation, tariffs, and geopolitical events.
• Changes in laws and regulations regarding the cannabis and hemp industries.
• Ability to acquire and retain paying clients and collect on outstanding receivables.

Management Commentary and Tone

• CEO Doug Francis stated the industry is entering a demanding phase and emphasized strengthening the core marketplace and expanding into underpenetrated states.
• CFO Susan Echard highlighted maintaining a strong liquidity position, disciplined expense management, and aligning the operating structure with business scale.
• Management noted the allocation of resources to targeted marketing and automation to strengthen long-term economics.

Other Key Points

• The Company sustained consecutive quarters of Adjusted EBITDA profitability.
• A gain of $1.0 million was recognized from the sale of a domain name in the first half of 2026.
• Tax receivable agreement liability was fully paid down ($2.7 million paid in financing activities) and is $0 as of June 30, 2026.
• Warrant liability is $0 as of June 30, 2026, down from $195 thousand in current liabilities at December 31, 2025.
• The Company is committed to advocating for full U.S. legalization and industry-wide social equity.