WM Technology reported lower third-quarter revenue and Adjusted EBITDA, alongside increased cash use, as cannabis clients faced payment and cash-flow pressures. The company says it tightened collections and cut off some late-paying customers, while also increasing marketing investment and absorbing one-time litigation-settlement and severance costs.
Management described the quarter as a period of groundwork for growth: it is expanding consumer marketing, preparing a new advertising product for cannabis brands and considering acquisitions that would take it further into the cannabis supply chain.
Key details
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Revenue declined about 9% year over year. WM Technology generated $38.5 million in the quarter ended Sept. 30, compared with $42.2 million a year earlier. The company attributed the drop mainly to weaker spending by customers facing margin compression and cash-flow constraints.
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The paying-client base also shrank. Average monthly paying clients totaled 4,899, down from 5,221 a year earlier. Churn in more established markets was partly offset by new customer additions in developing markets.
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The company is prioritizing collections, even at the cost of near-term sales. It stepped up efforts to collect overdue balances and terminate clients that fall behind on payments. Management said this contributed to the quarter’s revenue pressure, but was intended to improve the long-term health of the business. It expects some customers that churned or reduced spending to return, citing the importance of its platform to their businesses.
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Spending rose for marketing and one-time costs. The company said a significant portion of its operating expenses and cash spending went toward higher marketing investment. Other spending primarily covered a securities-litigation settlement and severance related to a workforce reduction during the quarter. Adjusted EBITDA declined, although no amount was included in the provided results excerpt.
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Marketing investment is aimed at attracting consumers and supporting future client revenue. WM Technology said improvements to its digital marketing strategy created opportunities to draw more consumers to the platform, prompting a meaningful increase in its user-acquisition budget. It also plans to launch a new sponsored-ad product for brands in November and expects it to begin contributing revenue shortly after launch.
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Some established markets remain difficult. Management pointed to Michigan, Colorado and Oklahoma, where heavy regulation and price compression are weighing on customers. It said marketing momentum in those regions remains strong, while acknowledging that revenue has yet to follow.
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The company is evaluating expansion through acquisitions. WM Technology said it wants to move further into the cannabis supply chain and is looking for high-quality assets that can generate positive cash flow at reasonable prices. It has identified potential targets but did not name them or announce a transaction.
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Its public-company structure is changing. The company said it voluntarily delisted from Nasdaq earlier in 2026 and intends to deregister as an SEC reporting company. Management expects the shift away from public reporting to reduce administrative and compliance costs and provide more operating flexibility.
What changes for investors
The immediate picture is of a business accepting weaker near-term revenue as it removes late-paying customers and increases marketing spending. The longer-term plans—new advertising, possible supply-chain acquisitions and a move away from public reporting—are management’s stated priorities; no acquisition or specific deregistration timetable was announced in the material provided.