WM Technology (NASDAQ:MAPS), the company behind Weedmaps, reported first-quarter 2026 revenue that was in line with expectations as management said cannabis operators continue to face difficult market conditions across several mature U.S. markets.
Revenue for the quarter was $43.6 million, down 2% from the prior-year period and up 1% sequentially, Chief Financial Officer Susan Echard said on the company’s earnings call. The sequential increase was driven by higher client spending in March ahead of the 4/20 holiday.
Client Churn Continues in Mature Markets
Echard said many of the company’s clients remain under financial pressure, particularly in the industry’s largest and most mature markets, including California, Michigan and Colorado. She cited price compression, elevated tax burdens and broader financial stress as factors weighing on client retention.
Average monthly paying clients totaled approximately 4,983, down 4% year over year and 3% sequentially. Echard said the decline was primarily driven by churn in mature markets, where operator financial pressure has contributed to business closures and account removals related to non-payment.
That decline was partially offset by new client acquisitions and growth in newer markets, including New York and Mississippi.
Average revenue per paying client was $2,914 in the first quarter, a marginal increase from the same quarter last year. Echard said the metric benefited from churn among lower-spending clients, which created a favorable mix effect, even as overall client spending remained under pressure.
Expenses Rise on Credit Loss Provision
Operating expenses were $43.4 million in the quarter, compared with $42 million in the prior-year period. Echard said the increase was primarily due to a higher provision for credit losses, including a $3.9 million allowance for doubtful accounts, as financial stress among cannabis operators continued to affect collections from certain delinquent accounts.
WM Technology is taking a disciplined approach to accounts receivable management, including greater focus on payment plans and collection efforts, Echard said. She added that while the company continues to support clients through a difficult operating environment, it is also taking action where payment behavior no longer supports continued service.
The higher credit loss provision was partially offset by lower costs in other areas, including management of headcount, vendor spending and discretionary expenses.
Net cash used in operating activities was $1.3 million in the first quarter, which Echard attributed primarily to slower collections at the start of the year and working capital timing. The company ended the quarter with $57 million in cash and investments, consisting mainly of cash, short-term Treasuries and bonds.
Federal Cannabis Rescheduling Seen as Constructive
Chief Executive Officer Douglas Francis addressed recent federal action to reschedule medical cannabis to Schedule III. He said the Department of Justice, through Acting Attorney General Todd Blanche, issued a final order in April moving FDA-approved marijuana products subject to state medical cannabis licenses from Schedule I to Schedule III under the Controlled Substances Act.
Francis called the action “an important milestone for the cannabis industry” and a recognition of the role medical cannabis plays for patients. He also noted that the broader federal rescheduling process remains ongoing, with the Drug Enforcement Administration expected to begin a new administrative hearing on June 29, 2026.
However, Francis said the full impact will take time to unfold, with questions remaining around implementation, how benefits may flow through to operators and what the developments could mean for the broader cannabis industry, including adult-use markets.
“At this time, we do not expect the rescheduling to materially affect our operations,” Francis said.
Delisting Intended to Increase Strategic Flexibility
Francis also discussed WM Technology’s recent voluntary delisting from Nasdaq, describing it as a strategic decision intended to provide Weedmaps with greater flexibility to pursue opportunities across the cannabis ecosystem.
He said major U.S. exchange policies had continued to limit the range of opportunities available to companies operating in and around cannabis. Following the delisting, Francis said WM Technology is now able to put its balance sheet to work in two ways:
- Investing in strategic clients and partner companies across the cannabis supply chain.
- Developing and expanding its technology platform and services into areas previously prohibited by Nasdaq.
Francis said the company remains focused on improving its core marketplace while investing in new products and capabilities for retailers, brands, multi-state operators and consumers.
Second-Quarter Revenue Expected to Decline
Looking ahead, Echard said WM Technology expects second-quarter revenue to decline sequentially by low single digits from the first quarter. The outlook reflects continued client churn and account removals in mature markets, along with a more normalized level of client spending following the seasonal increase ahead of 4/20.
Management said the company will continue operating with discipline while selectively investing in long-term priorities and supporting clients through a challenging cannabis market.
About WM Technology (NASDAQ:MAPS)
WM Technology, Inc is a software-as-a-service provider that delivers cloud-based solutions to the wealth and asset management industry. The company’s platform is designed to support financial advisors, broker-dealers and registered investment advisors with digital investment advice, portfolio management, performance reporting and compliance monitoring.
WM Technology’s product suite includes tools for streamlined client onboarding, interactive financial planning, automated portfolio rebalancing and tax-aware investment strategies.
