WM Technology, Inc., a leading online cannabis marketplace, reported a slight decline in revenue for the fiscal year ending December 31, 2024, generating $184.5 million compared to $188.0 million in 2023. The company achieved a net income of $12.2 million, a significant turnaround from a net loss of $15.7 million in the previous year. This improvement in profitability was attributed to a reduction in total costs and expenses, which fell by approximately 18% to $169.8 million, primarily due to decreased sales and marketing expenses and the absence of asset impairment charges that had impacted the previous year.
The average monthly paying clients decreased to 5,077 from 5,419, reflecting challenges in client retention amid ongoing industry consolidation and budget constraints. However, the average monthly revenue per paying client increased to $3,029, up from $2,891, indicating that existing clients are spending more on the platform. The company also reported a cash balance of $52.0 million as of December 31, 2024, with no long-term debt, positioning it well for future investments and operational needs.
Strategically, WM Technology has focused on enhancing its product offerings, including the sunset of certain lower-performing products to concentrate on its core Weedmaps for Business solutions. The company operates in over 35 U.S. states and territories, with a significant portion of its revenue still concentrated in California, which accounted for approximately 53% of total revenue. The company plans to continue expanding its market presence and product capabilities, aiming to capitalize on the growing cannabis market, which is projected to reach $35 billion by 2027.
Despite the positive financial results, WM Technology faces ongoing risks, including regulatory challenges and competition from both legal and illicit cannabis markets. The company has acknowledged material weaknesses in its internal controls over financial reporting, which it is actively working to remediate. Looking ahead, WM Technology remains optimistic about its growth potential, driven by increasing consumer engagement and the expansion of its two-sided marketplace, while also navigating the complexities of the evolving cannabis regulatory landscape.
About WM TECHNOLOGY, INC.
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