Weedmaps Parent WM Technology Posts Q2 Profit as Revenue Slips

WM Technology, the Irvine, California company behind the Weedmaps cannabis marketplace, reported second-quarter 2026 revenue of $42.4 million and net income of $2.9 million on August 6, 2026, pairing a modest revenue decline with a higher profit than it posted a year earlier.

Revenue for the quarter ended June 30, 2026 came in at $42.4 million, down from $44.8 million in the prior-year period, a decline the company attributes to a difficult operating environment for its customers, which it said have faced margin compression and cash flow constraints. Net income rose to $2.9 million from $2.2 million a year earlier, while adjusted EBITDA, the company’s preferred profitability measure, fell to $5.0 million from $11.7 million. The company said the quarter extends its run of consecutive profitable quarters on an adjusted EBITDA basis.

The customer metrics behind the top line moved in the same direction. Average monthly paying clients fell to 5,040 from 5,241 a year earlier, which the company attributed largely to churn in more established markets, partially offset by new client acquisitions in developing markets. Average monthly revenue per paying client slipped to $2,807 from $2,852, driven by spending declines in established markets where price deflation and consolidation continue to pressure dispensary and brand budgets.

“The cannabis industry is entering a more demanding phase, particularly in established markets where sustained economic and regulatory pressures continue to reshape the competitive landscape,” said Doug Francis, CEO and chairman of WM Technology, in the earnings release. He said the company is responding by strengthening its core marketplace, expanding into underpenetrated states, and evaluating adjacent opportunities across the cannabis ecosystem.

Chief financial officer Susan Echard pointed to cost discipline as the counterweight. “We maintained a strong liquidity position, managed expenses with discipline and continued to align our operating structure with the scale and needs of the business,” she said, noting selective investment in targeted marketing, product enhancements, and automation.

WM Technology’s Second Quarter by the Numbers

• Revenue: $42.4 million, down from $44.8 million in the second quarter of 2025
• Net income: $2.9 million, up from $2.2 million
• Adjusted EBITDA: $5.0 million, down from $11.7 million
• Average monthly paying clients: 5,040, down from 5,241
• Average monthly revenue per paying client: $2,807, down from $2,852
• Cash and equivalents: $60.5 million as of June 30, 2026, up from $59.0 million a year earlier
• Shares outstanding: 159.7 million across Class A and Class V common stock

Why WM Technology’s Profit Rose While Its Adjusted EBITDA Fell

The gap between those two headline numbers sits in the reconciliation table the company published with its results. Stripped of all adjustments, the company’s EBITDA actually improved year over year, rising to $5.6 million from $5.2 million. The adjusted figure moved the other way because the adjustments themselves flipped: in the second quarter of 2025 the company added back a $2.3 million loss contingency, $1.4 million in legal costs, and $2.6 million in stock-based compensation, while in the 2026 quarter the loss-contingency line moved $2.0 million in the company’s favor and legal and stock-compensation costs shrank to $263,000 and $1.2 million.

The legal-cost add-backs relate to ongoing shareholder derivative actions, according to the company’s footnotes, and the severance lines trace to reductions in force in its corporate technology and marketing divisions. The company cautions that its non-GAAP measures do not reflect capital expenditure requirements, working capital needs, or tax payments, and should be read alongside the GAAP figures.

One stress indicator did move sharply: the company’s provision for credit losses reached $8.0 million in the first half of 2026, up from $1.1 million in the same period of 2025, and accounts receivable climbed to $18.8 million from $14.6 million at the end of December 2025. Both are consistent with a customer base the company says is under cash flow pressure.

A Leaner, Over-the-Counter WM Technology

The quarter extends a reshaping year for the company. In its first-quarter 2026 results, reported May 11, 2026, WM Technology posted revenue of $43.6 million, net income of $1.7 million, and adjusted EBITDA of $5.9 million, meaning revenue slipped sequentially in the second quarter while net income improved. For the first half of 2026, revenue totaled $86.0 million against $89.5 million in the first half of 2025.

The company also announced on April 7, 2026 that it would voluntarily delist from the Nasdaq Stock Market, and SEC records show it filed its formal delisting notice on April 17, 2026. Its shares now trade over the counter under the ticker MAPS, though it continues to file quarterly reports with the SEC; its second-quarter report landed on August 6, 2026, the same day as the earnings release. The first half also included a $1.0 million one-time gain from the sale of a domain name, which the company excluded from adjusted EBITDA.

Weedmaps, which MyCannabis has profiled as a cannabis technology platform and marketplace, sells listing, eCommerce, and compliance software to dispensaries and brands in state-legal U.S. markets, so its client counts and per-client spending read as a proxy for retail marketing budgets across the industry. Its results arrive in the same week as second-quarter reports from operators Green Thumb Industries and Cresco Labs, which MyCannabis has also covered.

What Happens Next for WM Technology

For the third quarter of 2026, the company guided to a revenue decline in the mid-single-digit percentages sequentially from the second quarter’s $42.4 million. The guidance is an estimate as of August 6, 2026, assumes no acquisitions, investments, restructurings, or legal settlements during the period, and the company said it undertakes no obligation to update it publicly except as required by law.

Among the risk factors the company flagged alongside the outlook are material weaknesses in its internal controls and the timing of their remediation, the outcome of known and unknown litigation, its ability to maintain its over-the-counter listing, and its ability to continue collecting outstanding receivables from a financially strained client base.