Q4 2025 Silver Spike Acquisition Corp Earnings Call

March 12, 2026

Speaker #1: Thank you for standing by, and welcome to the WM Technology, Inc. fourth quarter and full year 2025 earnings call. I'd now like to introduce your host for today's program, Simon Yao.

Operator: Thank you for standing by, and welcome to the WM Technology, Inc. Q4 and Full Year 2025 Earnings Call. I'd now like to introduce your host for today's program, Simon Yao. Please go ahead, sir.

Speaker #1: Please go ahead, sir.

Speaker #2: Good afternoon, and thank you for joining us to discuss our fourth quarter and full year 2025 results. Today, we are joined by our CEO, Douglas Francis, and our CFO, Susan Echard.

Simon Yao: Good afternoon, and thank you for joining us to discuss our fourth and full year 2025 results. Today we are joined by our CEO, Douglas Francis, and our CFO, Susan Echard. By now, everyone should have access to our earnings announcement and supporting slide deck on our investor relations website. During this call, we will make forward-looking statements about our business outlook, strategies, and long-term goals.

Simon Yao: Good afternoon, and thank you for joining us to discuss our Q4 and full year 2025 results. Today we are joined by our CEO, Douglas Francis, and our CFO, Susan Echard. By now, everyone should have access to our earnings announcement and supporting slide deck on our investor relations website. During this call, we will make forward-looking statements about our business outlook, strategies, and long-term goals. Keep in mind that forward-looking statements are not guarantees of future performance and are subject to a variety of risks and uncertainties, some of which are beyond our control. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of risk and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC website and our investor relations website.

Speaker #2: By now, everyone should have access to our earnings announcement and supporting slide deck on our investor relations website. During this call, we will make forward-looking statements about our business outlook, strategies, and long-term goals.

Speaker #2: Keep in mind that forward-looking statements are not guarantees of future performance and are subject to a variety of risk and uncertainties. Some of which are beyond our control.

Simon Yao: Keep in mind that forward-looking statements are not guarantees of future performance and are subject to a variety of risks and uncertainties, some of which are beyond our control. Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of risk and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC website and our investor relations website.

Speaker #2: Our actual results could differ materially from expectations reflected in any forward-looking statements. For a discussion of risk and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC website and our investor relations website.

Speaker #2: We specifically disclaim any intent or obligation to update these forward-looking statements, except as required by law. For the benefit of those who may be listening to the replay or archived webcast, this call was held on March 12th, 2026.

Simon Yao: We specifically disclaim any intent or obligation to update these forward-looking statements except as required by law. For the benefit of those who may be listening to the replay or archived webcast, this call was held on 12 March 2026. Since then, we may have made announcements related to the topics discussed, so please refer to the company's most recent press releases and SEC filings. We will also discuss non-GAAP financial measures alongside those prepared in accordance with GAAP. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. You can find a reconciliation of these measures to our GAAP results in our earnings release and earnings presentation. Finally, today's call is being webcasted from our investor relations website, and an audio replay will be available shortly. With that, I will now turn it over to Doug.

Speaker #2: Since then, we may have made announcements related to the topics discussed, though please refer to the company's most recent press releases and SEC filings.

Speaker #2: We will also discuss non-GAAP financial measures alongside those prepared in accordance with GAAP. Non-GAAP financial measures should be considered in addition to, but not as a substitute for the information prepared in accordance with GAAP.

Simon Yao: Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. You can find a reconciliation of these measures to our GAAP results in our earnings release and earnings presentation. Finally, today's call is being webcasted from our investor relations website, and an audio replay will be available shortly. With that, I will now turn it over to Doug.

Speaker #2: You can find a reconciliation of these measures to our GAAP results in our earnings release and earnings presentation. Finally, today's call is being webcasted from our investor relations website, and an audio replay will be available shortly.

Speaker #2: With that, I will now turn it over to Doug.

Speaker #3: Good afternoon, everyone, and thank you for joining us today. Over the past year, we have remained focused on executing against a clear set of priorities.

Douglas Francis: Good afternoon, everyone, and thank you for joining us today. Over the past year, we have remained focused on executing against a clear set of priorities, operating with discipline, strengthening our financial position, and continuing to invest in the platform to support long-term growth. While the cannabis industry continues to face significant structural headwinds, Weedmaps remains focused on the long game. For the full year 2025, we delivered $175 million in revenue, generating $40 million in Adjusted EBITDA and ending the year with $62 million in cash, an almost 20% increase in our cash balance at the end of 2024. Our 2025 results reflected our team's ability to manage through industry cycles and the actions we have taken to reset and reinforce the business over the past several years.

Speaker #3: Operating with discipline, strengthening our financial position, and continuing to invest in the platform to support long-term growth. While the cannabis industry continues to face significant structural headwinds, Weedmaps remains focused on the long game.

Speaker #3: For the full year 2025, we delivered 175 million in revenue, generating 40 million in adjusted EBITDA, and ending the year with 62 million in cash and almost 20% increase, and our cash balance at the end of 2024.

Speaker #3: Our 2025 results reflected our team's ability to manage through industry cycles and the actions we have taken to reset and reinforce the business over the past several years.

Speaker #3: We are navigating a survival and balance sheet management mindset across the sector, but our strong liquidity allows us to invest thoughtfully. Revenue for the fourth quarter came in at the top end of our prior guidance, and adjusted EBITDA exceeded our guidance for the quarter.

Douglas Francis: We are navigating a survival and balance sheet management mindset across the sector, but our strong liquidity allows us to invest thoughtfully. Revenue for the Q4 came in at the top end of our prior guidance, and Adjusted EBITDA exceeded our guidance for the quarter. That said, both of these measures were down 10% or more compared to the Q4 of 2024, reflecting the continuation of the industry trends that we discussed last quarter, which persisted through the Q4 and into the start of this year. Susan will walk through how these trends affected our financial results in more detail. Before I turn it over to her, I would like to provide our view of some of the macro trends and how we see them impacting our business. The cannabis landscape continues to be reshaped by consolidation. We see this led by two groups.

Speaker #3: That said, both of these measures were down 10% or more compared to the fourth quarter of 2024, reflecting the continuation of the industry trends that we discussed last quarter, which persisted through the fourth quarter and into the start of this year.

Speaker #3: Susan will walk through how these trends affected our financial results in more detail. Before I turn it over to her, I would like to provide our view of some of the macro trends and how we see them impacting our business.

Speaker #3: The cannabis landscape continues to be reshaped by consolidation. We see this led by two groups. On one hand, we have the MSOs, who largely operate outside of the legacy states.

Douglas Francis: On one hand, we have the MSOs, who largely operate outside of the legacy states, and on the other, we have the large California-based retailers who continue to dominate and expand in the market. MSOs are prioritizing states where the operating and regulatory conditions support sustainable path to profitability. While battle-hardened California operators are adapting to operate on low margins in one of the industry's most competitive markets. This trend creates two possible challenges for Weedmaps. First, consolidation reduces the number of operators in a market, and like most marketplaces, our platform tends to perform best in regions with a larger and more competitive base of operators as they compete for visibility on our platform. Second, product choice and shelf space become streamlined, making a narrower set of brands available to the user.

Speaker #3: And on the other, we have the large California-based retailers, who continue to dominate and expand in the market. MSOs are prioritizing states where the operating and regulatory conditions support a sustainable path to profitability, while battle-hardened California operators are adapting to operate on low margins in one of the industry's most competitive markets.

Speaker #3: This trend creates two possible challenges for Weedmaps. First, consolidation reduces the number of operators in a market, and like most marketplaces, our platform tends to perform best in regions with a larger and more competitive base of operators as they compete for visibility on our platform.

Speaker #3: Second, product choice and shelf space become streamlined, making a narrower set of brands available to the user. As these market dynamics persist, we remain focused on enhancing our product offerings and deepening our relationships with large California-based clients and MSO partners, improving adoption in states with regulatory capture, and strengthening the overall marketplace experience.

Douglas Francis: As these market dynamics persist, we remain focused on enhancing our product offerings, deepening our relationships with large California-based clients and MSO partners, improving adoption in states with regulatory capture, and strengthening the overall marketplace experience. These efforts remain a strategic priority, and we expect to make meaningful investments across our teams and technology throughout the year as we continue building for the future of Weedmaps. On Schedule III, we remain cautious around its potential for Weedmaps despite the positive headlines. It is critical to understand that rescheduling will not make cannabis federally legal, nor will it immediately allow Weedmaps to enter new business lines or launch new revenue strategies. Being a company serving the cannabis industry market while being listed on a major US exchange limits our strategic options relative to other technology businesses.

Speaker #3: These efforts remain the strategic priority that we expect to make meaningful investments across our teams and technology throughout the year as we continue building for the future of weed maps.

Speaker #3: On schedule three, we remain cautious around its potential for weed maps despite the positive headlines. It is critical to understand that rescheduling will not make cannabis federally legal, nor will it immediately allow weed maps to enter new business lines or launch new revenue strategies.

Speaker #3: Being a company serving the cannabis industry market while being listed on a major UX exchange limits our strategic options relative to other technology businesses.

Speaker #3: We are restricted in how we can monetize and execute cannabis technology, and how we can handle transactions and logistics. Without these capabilities, we are not able to provide customers a regular e-commerce experience like what they are used to outside of cannabis.

Douglas Francis: We are restricted in how we can monetize and execute cannabis technology and how we can handle transactions and logistics. Without these capabilities, we are not able to provide customers a regular e-commerce experience like what they are used to outside of cannabis, nor are we able to access the full benefit of our dual-sided marketplace. Unfortunately, Schedule Three will not change this in the near term, nor do we believe plant-touching companies will be allowed on either of the US exchanges anytime soon. While the potential elimination of 280E tax will improve cash flows for some, the impact may be more limited than the current positive sentiment within the industry suggests. Many plant-touching operators, including the majority of publicly traded MSOs, have adopted certain legal positions, utilized accounting consolidation strategies, or recorded allowances for uncertain tax liabilities.

Speaker #3: Nor are we able to access the full benefit of our dual-sided marketplace. Unfortunately, schedule three will not change this in the near term, nor do we believe plant-touching companies will be allowed on either of the US exchanges anytime soon.

Speaker #3: While the potential elimination of 280(e) tax will improve cash flows for some, the impact may be more limited than the current positive sentiment within the industry suggests.

Speaker #3: Many plant-touching operators, including the majority of publicly traded MSOs, have adopted certain legal positions utilizing accounting consolidation strategies or recorded allowances for uncertain tax liabilities.

Speaker #3: As a result, most clients are already realizing cash flow benefits similar to what they would see if Section 280(e) did not apply. Rescheduling will just make the future of these benefits clearer and more certain.

Douglas Francis: As a result, most clients are already realizing cash flow benefits similar to what they would see if Section 280E did not apply. Rescheduling will just make the future of these benefits clearer and more certain, and rescheduling on its own will not erase these companies' historical tax liabilities, which even if they are manageable, may slow down a client's ability to spend that newly freed cash flow on growth rather than debt service. Furthermore, the tax benefits of rescheduling are likely to disproportionately favor large operators and MSOs who will continue to consolidate the market, which as I explained, could have an impact on the Weedmaps business model. Ultimately, we want full legalization, and Schedule III is a step in that process. We are excited for the industry and the potential benefits rescheduling could provide, including extended research opportunities and greater regulatory clarity.

Speaker #3: And rescheduling on its own will not erase these companies' historical tax liabilities, which, even if they are manageable, may slow down a client's ability to spend that newly freed cash flow on growth rather than debt service.

Speaker #3: Furthermore, the tax benefits of rescheduling are likely to disproportionately favor large operators and MSOs, who will continue to consolidate the market, which, as I explained, could have an impact on the Weedmaps business model.

Speaker #3: Ultimately, we want full legalization and schedule three is a step in that process. We are excited for the industry and the potential benefits rescheduling could provide, including extended research opportunities and greater regulatory clarity.

Speaker #3: In the meantime, we continue to focus on what we can control, building a broad marketplace where consumers can discover the brands and the products they want and ultimately transact with our retail partners.

Douglas Francis: In the meantime, we continue to focus on what we can control, building a broad marketplace where consumers can discover the brands and the products they want and ultimately transact with our retail partners. We are optimistic about several growth levers. We have several product updates underway designed to enable product-first discovery and shopping journeys. We believe this mode of engagement with the platform will allow retailers and brands to offer consumers an e-commerce experience more similar to what they find when shopping in other industries. We're pleased with the early momentum we've seen in New York and hope to leverage our learnings and experiences to grow our presence in other new markets like Minnesota, Texas, and the regulatory captured markets where we've historically had less of a presence. I wanna thank our team for their continued focus and execution during a challenging period for the industry.

Speaker #3: We are optimistic about several growth levers. We have several product updates underway designed to enable product-first discovery and shopping journeys. We believe this mode of engagement with the platform will allow retailers and brands to offer consumers an e-commerce experience more similar to what they find when shopping in other industries.

Speaker #3: We're pleased with the early momentum we've seen in New York and hope to leverage our learnings and experiences to grow our presence in other new markets like Minnesota and Texas, and the regulatory capture markets where we've historically had less of a presence.

Speaker #3: I want to thank our team for their continued focus and execution during a challenging period for the industry. While there is still work ahead, we believe the investments we are making today position weed maps well for the next phase of the industry's evolution.

Douglas Francis: While there is still work ahead, we believe the investments we are making today position Weedmaps well for the next phase of the industry's evolution. With that, I'll turn it over to Susan.

Speaker #3: With that, I'll turn it over to Susan.

Speaker #1: Thanks, Doug. Now turning to our financial performance. Revenue for the fourth quarter was $43 million, a decline of 10% year over year, reflecting the persistent challenges our clients faced across our core markets.

Susan Echard: Thanks, Doug. Now turning to our financial performance. Revenue for Q4 was $43 million, a decline of 10% year over year, reflecting the persistent challenges our clients face across our core markets. In these regions, severe pricing compression, competition from the illicit markets, and elevated excise tax burdens continue to weigh on our clients' margins and marketing budgets, limiting their ability to spend on our platform. These dynamics were reflected in lower spend across our Featured and Deal Listings, which tend to be more sensitive to shifts in marketing spend. These conditions have driven contraction and consolidation across several of the industry's largest markets, particularly California and Michigan, where both total retail sales and average retail prices declined year over year throughout 2025.

Speaker #1: In these regions, severe pricing compression, competition from the illicit markets, and elevated excise tax burdens continue to weigh on our clients' margins and marketing budgets, limiting their ability to spend on our platform.

Speaker #1: These dynamics reflected in lower spend across our featured and deals listings, which tend to be more sensitive to shifts in marketing spend. These conditions have driven contraction and consolidation across several of the industry's largest markets, particularly California and Michigan, where both total retail sales and average retail prices declined year over year throughout 2025.

Speaker #1: We saw encouraging growth in newer markets such as New York and Ohio, where our team's prioritized client penetration as retailers come online in those states.

Susan Echard: We saw encouraging growth in newer markets such as New York and Ohio, where our teams prioritize client penetration as retailers come online in those states. While this growth did not offset the pressure in our more mature markets, we are pleased with the early momentum we have seen in these states. As a result, full year revenue was $175 million, compared to $185 million in 2024, representing a year-over-year decline of approximately 5%. Average paying clients in Q4 were 5,120, down approximately 2% both year-over-year and sequentially, reflecting the consolidation and operator exits in the markets such as California, Michigan, and Oklahoma, partially offset by growth in newer markets like in New York, where our client count nearly doubled compared to the prior year.

Speaker #1: While this growth did not offset the pressure in our more mature markets, we are pleased with the early momentum we have seen in these states.

Speaker #1: As a result, full-year revenue was $175 million, compared to $185 million in 2024, representing a year-over-year decline of approximately 5%. Average paying clients in the fourth quarter were $5,120, down approximately 2% both year over year and sequentially, reflecting the consolidation and operator exits in the markets such as California, Michigan, and Oklahoma, partially offset by growth in newer markets like in New York where our client count nearly doubled compared to the prior year.

Speaker #1: For the full year, average paying clients were $5,190, up 2% compared to 2024. Average revenue per paying client for both the fourth quarter and the full year was approximately $2,800, down from prior-year levels.

Susan Echard: For the full year, average paying clients were 5,091, up 2% compared to 2024. Average revenue per paying client for both the Q4 and the full year was approximately $2,800, down from prior year levels. This is attributed to lower spend from certain existing clients amid tighter marketing budgets, as well as the addition of clients in newer markets who typically begin at lower initial spend levels. Against a softer revenue backdrop, we remained disciplined in managing our cost structure throughout the year.

Speaker #1: This is attributed to lower spend from certain existing clients amid tighter marketing budgets, as well as the addition of clients in newer markets, who typically begin at lower initial spend levels.

Speaker #1: Against a softer revenue backdrop, we remain disciplined in managing our cost structure throughout the year. Total operating expenses increased modestly by 2% to $174 million for the full year, compared to $170 million in 2024, primarily due to certain non-recurring items.

Susan Echard: Total operating expenses increased modestly by 2% to $174 million for the full year compared to $170 million in 2024, primarily due to certain non-recurring items. Full year sales and marketing and product development expenses declined by $2 million and $8 million respectively, driven by lower headcount related costs and reduced advertising spend following restructuring actions taken earlier in the year to optimize and refocus these teams. These reductions were more than offset by higher general and administrative expenses, which increased approximately $6 million year-over-year. This increase included a couple of one-time items, including a $2.3 million non-cash loss contingency recorded in Q2 related to a contractual obligation with our server provider, as well as a $2.8 million legal settlement disclosed as a subsequent event in our 2025 Form 10-K.

Speaker #1: Full-year sales and marketing and product development expenses declined by $2 million and $8 million, respectively, driven by lower headcount-related costs and reduced advertising spend following restriction actions taken earlier in the year to optimize and refocus these teams.

Speaker #1: These reductions were more than offset by higher general and administrative expenses which increased approximately $6 million year over year. This increase included a couple of one-time items, including a $2.3 million non-cash loss contingency recorded in the second quarter related to a contractual obligation with our server provider.

Speaker #1: As well as a $2.8 million legal settlement disclosed as a subsequent event in our 2025 Form 10-K. Additionally, in the fourth quarter, we recorded a non-cash asset impairment charge of approximately $7.8 million largely related to our goodwill asset.

Susan Echard: Additionally, in Q4, we recorded a non-cash asset impairment charge of approximately $7.8 million, largely related to our goodwill asset. As a result, net income for the full year was $3 million. Despite our revenue decline year-over-year, our cost control efforts resulted in a non-GAAP Adjusted EBITDA for the full year of $40 million, compared to $43 million for 2024. In the current industry environment, maintaining tight cost control enables us to navigate these challenges while preserving the flexibility to invest in key organic growth initiatives. Our operating model allows us to manage expenses and maintain profitability while self-funding operations and continuing to invest in the business. Looking ahead, many of the industry dynamics that impacted our clients in 2025 have carried into the early part of this year and are expected to persist through 2026.

Speaker #1: As a result, net income for the full year was $3 million. Despite our revenue decline year over year, our cost control efforts resulted in a non-gap adjusted EBITDA for the full year of $40 million, compared to $43 million for 2024.

Speaker #1: In the current industry environment, maintaining tight cost control enables us to navigate these challenges while preserving the flexibility to invest in key organic growth initiatives.

Speaker #1: Our operating model allows us to manage expenses and maintain profitability while self-funding operations and continuing to invest in the business. Looking ahead, many of the industry dynamics that impacted our clients in 2025 have carried into the early part of this year, and are expected to persist through 2026.

Speaker #1: As a result, we expect first-quarter revenue to decline sequentially by mid- to high-single digits from the fourth quarter. We plan to continue investing opportunistically across the business, and, given the potential variability in the timing of these investments, will not be providing adjusted EBITDA guidance for 2026.

Susan Echard: As a result, we expect Q1 revenue to decline sequentially by mid to high single digits from Q4. We plan to continue investing opportunistically across the business, and given the potential variability in the timing of these investments, we'll not be providing Adjusted EBITDA guidance for 2026. The company remains committed to preserving financial flexibility and disciplined capital allocation as we assess the opportunities ahead. With that, I'll turn the call back to the operator.

Speaker #1: The company remains committed to preserving financial flexibility and disciplined capital allocation, as we assess the opportunities ahead. With that, I'll turn the call back to the operator.

Operator: Thank you. Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

Q4 2025 Silver Spike Acquisition Corp Earnings Call

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