Company Overview
WM Technology, Inc. operates as an online cannabis marketplace that delivers ecommerce and compliance software solutions to retailers and brands within the United States and international cannabis markets. The company specifically offers the Weedmaps marketplace platform, which enables cannabis users to search for and browse various cannabis products while providing the necessary digital infrastructure for industry participants. This entity functions within the broader Technology sector and more specifically within the Software - Application industry, positioning itself as a provider of specialized digital tools rather than a direct cannabis cultivator or distributor. The company's scale is defined by a market capitalization of $106.03M and an annual revenue of $174.70M, supported by a workforce of 416 employees. These valuation and revenue figures indicate that WM Technology, Inc. holds a significant position as a mid-cap software provider, suggesting a substantial operational footprint that serves a fragmented and expanding regulatory market while maintaining a valuation that reflects its software-based revenue model.
Financial Health
The company reported a revenue of $174.70M for the trailing twelve months, with a net income of $1.96M and an EBITDA of $29.68M. The substantial gap between the $174.70M in revenue and the $1.96M in net income reveals a cost structure where operating expenses, including cost of goods sold, depreciation, and general administrative costs, consume a significant majority of top-line revenue before reaching the bottom line. Despite the narrow net income, the company generates robust free cash flow of $21.54M, which indicates a high degree of financial flexibility allowing for capital allocation decisions such as debt reduction or strategic reinvestment without relying solely on external financing. The company maintains healthy margins, including a gross margin of 94.9%, an operating margin of 20.5%, and a profit margin of 1.1%, where the high gross margin reflects the software-intensive nature of the business while the lower operating and profit margins highlight the substantial investment required in sales, marketing, and general operations. On the balance sheet, WM Technology, Inc. holds $62.40M in cash against $26.55M in debt, resulting in a debt-to-equity ratio of 20.15, which suggests a conservative financial posture given the significant cash buffer relative to obligations. Liquidity is further supported by a current ratio of 2.34, indicating that the company possesses more than double the current assets necessary to cover its short-term liabilities, ensuring stability in meeting upcoming financial obligations. Return on Equity stands at 2.6% while Return on Assets is 5.5%, metrics that reveal the efficiency with which management utilizes shareholder capital and total assets to generate earnings, though these returns are currently modest relative to the company's cash generation capabilities.
Valuation Assessment
The stock carries a trailing P/E ratio of 30.41 compared to a forward P/E of 3.58, a stark difference that implies the market is currently pricing in a significant expected earnings trajectory change or that current earnings are suppressed by one-time costs or restructuring charges. The price-to-book ratio is 1.17, indicating that the market values the company at a slight premium over its book value, suggesting that intangible assets or future growth prospects are being factored into the current share price. Alternative valuation metrics provide additional context, with a price-to-sales ratio of 0.61 and an EV/EBITDA of 3.58, which suggest the company is valued at a discount relative to its sales and earnings potential when adjusted for enterprise value. The 52-week high for the stock is $1.37 and the low is $0.60, meaning the current trading price sits significantly below the recent high, reflecting the recent decline in revenue and the market's cautious stance on the company's near-term profitability. The stock exhibits a beta of 1.28, which means the price volatility of WM Technology, Inc. is expected to be 28% higher than the broader market, indicating higher risk and potential for larger price swings in response to market movements.
Growth & Income
Revenue growth for the trailing twelve months is -9.7%, while earnings growth is listed as N/A, indicating that the company is currently contracting in terms of top-line sales rather than expanding. The absence of positive earnings growth combined with negative revenue growth implies that the company is in a contractionary phase where existing revenue streams are not being replenished or expanded fast enough to offset losses or stagnation. As a non-dividend payer, the company does not distribute a dividend yield, maintaining a payout ratio of 0.0%, which implies that the company reinvests all generated earnings into operational growth, technology development, or balance sheet strengthening rather than returning cash to shareholders. The overall growth and income profile for WM Technology, Inc. is characterized by a contraction in revenue and a lack of dividend income, positioning the stock primarily as a vehicle for potential future expansion once the current revenue decline reverses.