WM Technology Q1 revenue, net income decline amid challenging conditions for cannabis operators

WM Technology

11/05/2026 21:34

Overview

U.S. cannabis marketplace and tech provider's Q1 revenue declined yr/yr

Q1 net income, adjusted EBITDA fell from prior yr amid challenging conditions for cannabis operators

Outlook

Company expects Q2 2026 revenue to decline by low-single digit percentages sequentially

Company says full impact of federal cannabis rescheduling will take time to unfold

Result Drivers

SOFTNESS IN CORE MARKETS - Co said revenue decline was primarily driven by continued softness across core markets as challenging conditions for cannabis operators weighed on advertising spend

CLIENT CHURN - Average monthly paying clients decreased yr/yr, largely due to churn in more established markets, partially offset by new client acquisitions in developing markets

REVENUE PER CLIENT MIX - Average monthly revenues per paying client increased, primarily reflecting a positive mix impact from churn among clients with below-average spend levels

Company press release: ID:nBw5RTjJVa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$43.56 mln
$42.11 mln (1 Analyst)
Q1 Net Income
$1.69 mln
Q1 Pretax Profit
$1.73 mln


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 605.4% above its May 8 closing price of $0.37

The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 5 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)