WM Technology, Inc.

Revenue in the first quarter was $43.6 million, down 2% year over year and up 1% sequentially, and management said this was in line with expectations. Net income was $1.7 million, and adjusted EBITDA was $5.9 million; operating expenses were $43.4 million versus $42 million in Q1 of last year. Average monthly paying clients were approximately 4,983, down 4% year over year and 3% sequentially, while average revenue per paying client was $2,914, a marginal increase versus Q1 last year. Cash and investments totaled $57 million at quarter end, and net cash used in operating activities was $1.3 million. Looking ahead, WM Technologies expects second-quarter revenue to decline sequentially by low single digits from Q1.

Doug Francis focused on the broader cannabis policy backdrop and the company’s strategic repositioning. He said the Schedule III rescheduling of medical cannabis is an important milestone, though he does not expect it to materially affect operations in the near term. He emphasized that the NASDAQ delisting was a deliberate move to provide greater flexibility, including the ability to invest in strategic clients and expand technology and services into areas previously prohibited by Nasdaq. His tone was upbeat and opportunistic, while still acknowledging that the operating environment remains difficult.

Susan Echard described a quarter shaped by revenue that met expectations but continued pressure on clients. She highlighted the $43.6 million of revenue, $5.9 million of adjusted EBITDA, $1.7 million of net income, and $43.4 million of operating expenses, noting that higher credit loss provisions included a $3.9 million allowance for doubtful accounts. She said cash and investments were $57 million at quarter end, with $1.3 million of net cash used in operating activities due mainly to slower collections and working capital timing. She also guided to second-quarter revenue down low single digits sequentially, citing churn in mature markets and a more normalized post-4/20 spend pattern.

There was no analyst Q&A in the transcript, so the main management commentary centered on the rescheduling process, the difficult operating environment, and the implications of the NASDAQ delisting. Management said federal rescheduling is constructive but still uncertain in terms of implementation and downstream benefits, and reiterated that current operations are not expected to change materially. They also stressed disciplined collections and selective investment, while allowing that the company now has more flexibility to support clients and expand its platform.