WM Technology — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue for the quarter ended September 30, 2026, was $38.5 million, a decrease from $42.2 million in the prior year period.
• Net loss was $5.9 million, compared to net income of $3.6 million in the prior year.
• Adjusted EBITDA was $0.8 million, down from $7.6 million in the prior year.
• Average monthly paying clients decreased to 4,899 from 5,221 in the prior year.
• Average monthly revenue per paying client decreased to $2,618 from $2,693 in the prior year.
• Cash and cash equivalents totaled $51.0 million as of September 30, 2026, down from $62.4 million as of December 31, 2025.
• Deferred revenue was $4.8 million as of September 30, 2026, down from $5.5 million as of December 31, 2025.
• Total shares outstanding were 161.1 million as of September 30, 2026.
• For the nine months ended September 30, 2026, revenue was $124.5 million compared to $131.6 million in the prior year; net loss was $1.3 million compared to net income of $8.3 million; and Adjusted EBITDA was $11.6 million compared to $29.4 million in the prior year.

Guidance and Future Outlook:

• The Company expects fourth quarter 2026 revenue to decline by a low-single digit percentage compared with the third quarter.
• Management anticipates that revenue will follow marketing momentum in challenged markets like Michigan, Colorado, and Oklahoma despite current softness.
• The Company expects some churned clients or those who decreased spend to return due to the importance of the platform.
• A new sponsored ad product for brands is launching in the current month and is anticipated to contribute to revenue shortly after launch.
• The Company plans to evaluate potential strategic transactions and opportunities, targeting best-in-class assets that generate positive cash flow at reasonable multiples.
• The transition away from public reporting is expected to reduce administrative overhead and compliance costs.

Business Segments and Product Lines:

• Revenue decreases were driven by client payment difficulties and churn in established markets.
• Operating expenses included increased marketing spend to attract more consumers to the platform.
• One-time expenses included a securities litigation settlement and severance costs associated with a workforce reduction in the third quarter.
• The Company is focusing on collections and terminating clients who are late with payments to ensure long-term business health.

Market and Competitive Landscape:

• The operating environment remains challenging for certain customers facing margin compression and cash flow constraints.
• Established markets are experiencing price deflation and ongoing consolidation.
• Heavy regulation and price compression are contributing to softness in Michigan, Colorado, and Oklahoma.
• The Company holds a strong belief in the power of cannabis and advocates for full U.S. legalization and industry-wide social equity.

Risks and Challenges:

• Risks include market reactions to the Company's delisting from Nasdaq and deregistration as an SEC reporting company, potentially impacting liquidity and share price.
• Trading on OTC markets may be less liquid and have greater price volatility.
• The Company faces material weaknesses in internal controls and risks regarding their remediation.
• Future results depend on the Company's ability to maintain its OTC listing, acquire new clients, retain existing clients, and collect on outstanding receivables.
• Risks include changes in domestic and foreign business conditions, cannabis regulations, and macroeconomic factors such as inflation and geopolitical events.
• Potential impacts from cyber-attacks, security vulnerabilities, and litigation outcomes are noted.

Management Commentary and Tone:

• CFO Susan Echard stated that revenue and Adjusted EBITDA decreased due to client payment difficulties, with cash utilization increasing for marketing and one-time expenses.
• CEO Doug Francis described the quarter as operationally successful despite optical near-term pressures, noting that foundational work has laid the foundation for future growth.
• Management emphasized a "long game" strategy, focusing on cleaning up the client base, optimizing user acquisition costs, and finalizing strategic expansion infrastructure.
• The tone reflects confidence that the deliberate decision to terminate late-paying clients will benefit the business long-term.

Other Key Points:

• The Company voluntarily delisted from Nasdaq earlier in the year and announced its intention to deregister as an SEC reporting company.
• A reduction in force was completed during the third quarter, with severance costs included in the quarter's expenses.
• The Company sold a domain name, resulting in a $1.0 million gain recognized in the nine-month period.
• The Company is being highly disciplined in its approach to potential acquisitions, targeting assets with positive cash flow potential.