WM Technology, Inc. (MAPS): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed assessment of WM Technology, Inc.'s (MAPS) portfolio, and honestly, the BCG matrix for them is a bit messy right now, reflecting the volatility of the cannabis sector. We've got a clear Star in the core platform, which lists approximately 80% of U.S. state-legal dispensaries, funding a Cash Cow operation that hit $7.6 million in adjusted EBITDA in Q3 2025, supported by a $62.6 million cash balance. The real tension is that the main revenue engine is showing Dog-like symptoms, with Featured and Deal Listings revenue declining to $27.1 million in Q2 2025, while the promising B2B software remains a Question Mark needing investment to capture that projected 27.3% market CAGR through 2032. Let's map out the next strategic moves below.

Background of WM Technology, Inc. (MAPS)

You're looking to map out WM Technology, Inc. (MAPS) using the BCG framework, so let's start with what the company actually does and where it stands as of late 2025. WM Technology, Inc. is known as a leading marketplace and technology solutions provider specifically for the cannabis industry in the United States and internationally. Honestly, the environment they operate in right now is tough, marked by ongoing pricing pressure and consolidation in their core operational states.

The core of their offering is the Weedmaps marketplace, which lets cannabis users search for, browse, and reserve products from local retailers. Beyond the consumer-facing side, WM Technology, Inc. provides monthly subscription-based business software solutions to retailers and brands. These tools include things like WM Listings, WM Orders, WM Store, WM Connectors, and WM Insights, plus add-ons such as WM Ads and WM Dispatch. They also offer education and learning information to help newer consumers understand product choices.

Looking at the most recent numbers, the third quarter ended September 30, 2025, showed some mixed signals. Revenues for that quarter hit $42.2 million, which was actually a decrease of 9% compared to the same period last year when revenues were $46.6 million. This revenue dip reflects the industry headwinds affecting client marketing budgets.

On the client side, the picture is a bit more nuanced. WM Technology, Inc. managed to increase its average monthly paying clients to 5,221 as of September 30, 2025, up from 5,100 the prior year. That's good client acquisition, especially in developing markets. However, the average monthly revenue per paying client fell to $2,693 from $3,043 year-over-year, showing that even though they have more clients, they're spending less on average due to those market pressures we mentioned.

Profitability is another key area. For Q3 2025, net income was $3.6 million, and the non-GAAP Adjusted EBITDA came in at $7.6 million. That's down from $11.3 million in the prior year period, showing that the lower revenue per client is definitely squeezing margins, even with disciplined cost management. The company did report GAAP Earnings Per Share (EPS) of $0.02 for the quarter.

From a stability standpoint, WM Technology, Inc. looks solid on the balance sheet. As of September 30, 2025, cash reserves stood at $62.6 million, which was an increase from $52.0 million at the end of 2024. Importantly, the company continues to operate with no debt, giving them flexibility to navigate this volatile market while selectively reinvesting. Total shares outstanding across Class A and Class V Common Stock were 157.2 million at that date.

For the immediate future, management's guidance for the fourth quarter of 2025 reflects caution. They estimate revenue will be between $41 million to $43 million, with Non-GAAP Adjusted EBITDA expected to be in the range of $5 million to $7 million. That lower EBITDA guidance suggests they anticipate continued pressure or planned investments that will weigh on short-term profitability.

WM Technology, Inc. (MAPS) - BCG Matrix: Stars

The overall cannabis technology market is a high-growth environment, projected to grow at a Compound Annual Growth Rate (CAGR) of up to 27.3% through 2032.

The core Weedmaps platform holds a dominant position, listing approximately 80% of U.S. state-legal dispensaries, giving it high relative market share. This market leadership is reflected in the client base metrics as of mid-2025.

Strategic investment in the B2B software suite aims to convert this dominant marketplace position into a high-growth, high-share integrated ecosystem. The company is focusing on expanding its client base, even as average spend per client faces pressure from industry headwinds.

• Average Monthly Paying Clients increased to 5,241 in Q2 2025 from 5,045 in Q2 2024.
• The company revised its fiscal year 2025 revenue estimate upward to $180.61 million.
• The company reported an estimated Q3 2025 revenue target between $41 million and $43 million.
• The company is preparing to launch expanded premium placement opportunities for brands.

Potential for massive upside if federal regulatory changes occur, allowing the platform to fully monetize its market leadership. The company maintains a strong financial footing to support this investment phase, evidenced by its balance sheet strength.

The company's financial resilience supports the Star strategy of continued investment:

• Cash balance reached $59 million at the end of Q2 2025.
• The company reported no outstanding debt as of June 30, 2025.
• GAAP Net Income for Q2 2025 was $2.2 million, an 83% increase from the prior year period.
• Adjusted EBITDA margin expanded to 26% in Q2 2025, up from 22% in the prior year period.

WM Technology, Inc. (MAPS) - BCG Matrix: Cash Cows

You're looking at the core engine of WM Technology, Inc. (MAPS) portfolio right now, the unit that keeps the lights on and funds the riskier bets. Cash Cows, in this framework, are where market share is high in a mature space, and they generate more cash than they need to maintain their position.

Operational efficiency and cost discipline are generating profit despite revenue headwinds, with Q3 2025 Net Income at $3.6 million. This marks the seventh consecutive quarter of positive Net Income for WM Technology, Inc. (MAPS). Still, you see the pressure in the top line; Q3 2025 Revenues were $42.2 million, a 9% decrease from the prior year period's $46.6 million.

The overall business is adjusted EBITDA positive, reporting $7.6 million in Q3 2025, which is a key measure of cash generation. This profitability reflects the continued focus on expense discipline even while navigating industry softness. The company ended the quarter with a strong, debt-free balance sheet with $62.6 million in cash as of September 30, 2025, up from $52.0 million as of December 31, 2024, providing significant stability.

Core advertising and featured listings are the primary revenue engine, generating the bulk of the cash flow used to fund other parts of the business. You can see the concentration here:

The majority of the revenue decrease from the prior year was driven by featured and deal listings, which tend to be the first area clients scale back when budgets tighten due to persistent pricing compression in core markets. This is the classic Cash Cow dynamic: the primary cash generator is feeling the pinch of a mature, pressured market.

Even with lower average monthly revenues per paying client-down to $2,693 from $3,043 in the prior year period-the business unit is still milking gains. The client base is actually growing slightly, with average monthly paying clients at 5,221, up from 5,100 year-over-year, largely due to new client acquisitions in developing markets. That growth in client count, combined with disciplined cost management, is what keeps this segment a reliable source of cash flow to support the rest of WM Technology, Inc. (MAPS).

• Net Income (Q3 2025): $3.6 million
• Adjusted EBITDA (Q3 2025): $7.6 million
• Cash Balance (Sept 30, 2025): $62.6 million
• Average Monthly Paying Clients (Q3 2025): 5,221

Finance: draft 13-week cash view by Friday.

WM Technology, Inc. (MAPS) - BCG Matrix: Dogs

Dogs are business units or products characterized by a low market share in a low-growth market. For WM Technology, Inc. (MAPS), this quadrant is populated by revenue streams and client segments that are mature, face significant external headwinds, and require careful management to avoid becoming cash traps.

The primary indicator of a Dog segment is the sustained decline in revenue from the core listings products, which are typically associated with established, mature markets. Revenue from Featured and Deal Listings, the largest segment, is declining year-over-year, falling to $27.1 million in Q2 2025 from $28.4 million in Q2 2024. This segment is highly sensitive to client profitability, which is being squeezed by market forces.

The erosion of client spending is clearly reflected in the Average Monthly Revenue per Paying Client (ARPU), which is shrinking. This metric dropped to $2,693 in Q3 2025 from $3,043 in the prior year period (Q3 2024). This represents a year-over-year decrease of approximately 11.5% in the average revenue generated per client.

Legacy markets like California and Michigan are experiencing severe price deflation and consolidation, directly eroding client spending on the platform. This external pressure forces clients to cut discretionary marketing spend, which directly impacts WM Technology, Inc. (MAPS)'s top-line performance in these regions. For example, Michigan wholesale prices declined to approximately $225 per ounce from $300-$350 per ounce. Furthermore, the average price of an ounce of recreational marijuana in Michigan dropped to just $61.79 in September 2025, marking the 12th straight month of price drops. Wholesale flower pricing for all grow types in California also saw a decline entering 2025.

These mature, high-cost client relationships in established markets are consuming resources while yielding lower returns. While the total number of average monthly paying clients still saw a slight increase year-over-year in Q3 2025 to 5,221 from 5,100 in Q3 2024, this growth is concentrated in developing markets, while established clients are trimming budgets. The lower ARPU suggests that the revenue generated from these legacy client relationships is insufficient to justify the maintenance costs associated with serving them.

Here's a quick look at the key declining metrics that characterize these Dog segments:

The overall revenue for the company in Q3 2025 was $42.2 million, down from $46.6 million in the prior year period, illustrating the broad impact of these pressured segments.

The strategic implications for these Dog assets include:

• Avoidance/Minimization: Focus on minimizing resource allocation to maintaining market share in these low-growth, low-return areas.
• Cost Discipline: Continued focus on reducing the GAAP Operating Expenses associated with servicing these mature client bases. GAAP Operating Expenses in Q3 2025 were $40.2 million, a 3% decrease from the prior year period, driven partly by cost control in sales and marketing and product development.
• Divestiture Candidate: These units are prime candidates for divestiture if an expensive turnaround plan is not immediately viable or if capital can be better deployed elsewhere.
• Client Churn: Churn in more established markets partially offset new client acquisition in Q3 2025.

WM Technology, Inc. (MAPS) - BCG Matrix: Question Marks

You're looking at the Question Marks quadrant, which for WM Technology, Inc. centers on newer growth vectors that demand capital but haven't yet secured a dominant position. The B2B software solutions-encompassing eCommerce, compliance, and POS tools under WM Business-operate in a segment that is inherently high-growth within the evolving state-legal cannabis industry, but the revenue per user isn't yet reflecting that potential dominance. Consider the client base growth versus the revenue realization. Average Monthly Paying Clients grew to 5,241 in Q2 2025, yet the Average Monthly Revenue Per Paying Client fell to $2,852 from $3,033 in the prior year period, signaling that gaining market share with new or smaller clients requires significant initial effort or pricing concessions. This dynamic-high market growth potential coupled with low current returns-is the textbook definition of a Question Mark needing heavy investment to shift into a Star.

Here's a quick look at the operating metrics that frame this investment need, comparing Q2 2025 to the preceding year:

The revenue stream from Other Ad Solutions serves as a clear proxy for newer product adoption, which is exactly where you look for Question Marks. This segment saw revenue increase from $4.1 million to $4.5 million year-over-year in Q2 2025. While this represents growth, it remains a small fraction of the total Q2 2025 revenue of $44.8 million. Management is clearly pushing these newer visibility tools to diversify spend away from pressured featured listings, but scaling this revenue requires convincing more clients to adopt these newer, unproven offerings.

Expansion into emerging state-legal markets, like New York, is a key investment area consuming cash to build future dominance. Management noted that the majority of operational retailers in New York are now on the platform as of the Q2 2025 call. Capturing this density requires significant upfront sales and marketing spend to establish platform lock-in before competitors solidify their positions. This investment strategy is reflected in the Q3 2025 guidance, where expected revenue was lowered to $41 million to $43 million, and Adjusted EBITDA was guided down to $5 million to $7 million, signaling that capital is being strategically deployed for future growth rather than immediate margin maximization.

Furthermore, the exploration of adjacent markets, specifically the intoxicating hemp sector, is a high-risk, high-reward bet that is currently on hold pending regulatory clarity. Management stated they are delaying aggressive moves in this segment until there is a clearer line of sight on regulation. This waiting game still requires capital for planning and readiness, representing a potential future drain or a massive upside if they can scale quickly once regulatory hurdles clear.

• Investment Required: Sales and marketing costs were down 20% year-over-year in Q2 2025, but the Q3 guidance suggests a necessary increase in investment to support client acquisition in developing markets.
• Cash Burn/Consumption: The company generated $16.7 million in operating cash flow in the first half of 2025, but the lower Q3 Adjusted EBITDA guidance of $5 million to $7 million (down from $11.7 million in Q2) shows the immediate return on investment for these growth bets is currently low.
• Risk of Becoming a Dog: Continued pressure in established markets like California and Michigan, which drove the Q3 revenue miss, threatens to turn these growth efforts into Dogs if market share isn't captured quickly.