WM Technology Q2 revenue falls amid industry challenges

WM Technology

06/08/2026 21:34

Overview
Cannabis marketplace provider's Q2 revenue fell yr/yr amid industry challenges
Net income for Q2 increased from prior year despite revenue decline
Company expects Q3 revenue to decline by mid-single digit percentage sequentially

Outlook
Company expects Q3 revenue to decline by mid-single digit percentage sequentially from Q2
Company cites sustained economic and regulatory pressures in established cannabis markets
WM Technology plans to expand into underpenetrated states and pursue adjacent opportunities

Result Drivers
CUSTOMER CHALLENGES - Co said revenue decline was mainly due to margin compression and cash flow constraints faced by customers
CLIENT CHURN - Co attributed decline in average monthly paying clients to churn in established markets, partially offset by new client acquisitions in developing markets
SPEND DECLINES - Co said lower average monthly revenues per paying client were driven by spend declines in established markets due to price deflation and industry consolidation

Company press release: ID:nBw8nxCgSa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
$42.45 mln
$42.73 mln (1 Analyst)
Q2 Net Income
 
$2.88 mln
 
Q2 Pretax Profit
 
$2.88 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 645.7% above its August 5 closing price of $0.35
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 2 three months ago

Reuters Recommended Reads
Aug 6 - Cresco Labs Q2 revenue beats estimates
Aug 5 - Curaleaf Q2 revenue beats analyst estimates on domestic growth
Aug 5 - Verano Q2 revenue tops estimates on retail expansion

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.)