Exodus Movement NYSEAMERICAN: EXOD reported second-quarter revenue of $26.2 million and a net loss of $18.6 million as the company began integrating payments infrastructure providers Monavate and Baanx into its business.
Co-founder and CEO JP Richardson said the company is pursuing a strategic shift from its historical identity as a self-custodial cryptocurrency wallet provider toward a broader payments and financial-services platform. The company plans to retire the Baanx brand and combine its team, technology and relationships into Monavate, which will serve as Exodus’ payments business.
“Exodus is becoming a payments company,” Richardson said, describing the second quarter as the start of execution rather than the completion of the company’s transformation.
Revenue split between wallet and payments operations
Of Exodus’ reported quarterly revenue, approximately $21.2 million came from the legacy Exodus business and $5 million came from Monavate. Chief Financial Officer James Gernetzke said a non-GAAP calculation that included Monavate for the full quarter would have produced combined revenue of about $29 million, as Exodus owned Monavate only during May and June.
The company’s legacy wallet metrics were largely unchanged sequentially. Monthly active users remained at 1.4 million in the second quarter, while quarterly swap volume was approximately $1.13 billion. Gernetzke said swap volume was lower year over year, reflecting price pressure across the cryptocurrency market.
Monavate processed approximately $900 million in gross transaction volume during the second quarter and more than $1.8 billion year to date. Gernetzke said that, on a normalized basis across Monavate’s core client base, second-quarter volume represented a 60% increase from the prior quarter.
Monavate CEO Michael Rolph said the business had issued more than 6 million cards and processed more than $8.5 billion in transactions since inception. As of the end of the second quarter, it supported about 40 active enterprise customers, 1.4 million active cards and payment activity in more than 50 countries.
Integration expenses contributed to quarterly loss
Exodus reported an EBITDA loss of $21.5 million and an adjusted EBITDA loss of $6.7 million for the quarter. Management attributed the reported losses largely to acquisition-related expenses, technology integration and restructuring costs associated with combining the organizations.
During the question-and-answer session, Gernetzke said the company recorded roughly $17 million in transaction-related incentive costs and about $5.8 million in professional-services expenses. He said integration efforts remain incomplete and that Exodus continues to seek additional efficiencies from the combined organization.
Richardson said Exodus recently reduced its workforce by approximately 25%. The company expects the reduction to generate $10 million to $13 million in annualized operating-expense savings, with the full monthly run rate expected in the fourth quarter.
Gernetzke said the expected quarterly savings equate to approximately $2.5 million to $3.5 million when annualized savings are divided by four. However, severance payments will delay the full cash impact until later in the fourth quarter, with the company expecting the full benefit in 2027.
European card issuance remains a central priority
A key near-term focus is restoring Monavate’s ability to issue new cards for European clients. Rolph said Monavate UAB faced a regulatory setback in late 2025 after an inspection by the Bank of Lithuania. The outcome required tighter controls, a pause in new European program onboarding and the offboarding of a limited number of programs while remediation work proceeded.
Rolph said Monavate UAB was not part of the Exodus acquisition and has continued servicing most existing customers during the remediation process.
In July, Exodus assumed W3C’s rights and obligations under an agreement to acquire TXIPay, subject to change-of-control approval from the Bank of Latvia. TXIPay holds licenses that Exodus believes could help it resume business development at scale in Europe.
Rolph said Exodus expects to submit the required filing imminently. The Bank of Latvia’s service-level timeline is effectively 60 days, though the review could extend to as much as 90 days if regulators request clarification or additional information. Richardson said the company remains on track to establish a new issuing arrangement during the fourth quarter.
Exodus is also transitioning to a new domestic U.S. banking partner, a move management said is intended to support domestic payment capabilities for Exodus Pay and enterprise customers.
Payments strategy emphasizes existing users and enterprise clients
Richardson said Exodus is initially focused on deepening its relationship with its 1.4 million active users by expanding from asset custody into everyday money movement through Exodus Pay. The company is holding off on reporting Exodus Pay adoption metrics until card-issuance capabilities are fully available.
Management said the combined company’s enterprise offering could include card issuing, processing, settlement, BIN sponsorship, stablecoin settlement, compliance support and self-custody infrastructure. Rolph said Monavate sees opportunities to offer Exodus’ institutional products to its existing customer base and to develop integrated services spanning fiat and digital assets.
Monavate’s clients include companies in fintech, payroll, insurance, logistics and on-chain finance, according to Rolph. He said transaction volume increased more than 50% in the first half of 2026 from the prior-year period when excluding one large client that moved card processing in-house after scaling its U.K. buy-now-pay-later platform. The client remains a customer at reduced volume, Rolph said.
Richardson said the company’s near-term priorities are completing the Exodus-Monavate integration, restoring Monavate’s global operating capabilities and converting its more diversified revenue base and reduced cost structure into sustainable profitability and positive cash generation.
About Exodus Movement (NYSEAMERICAN:EXOD)
Exodus Movement, Inc is a software company focused on developing user-friendly tools for managing digital assets. Its flagship product, the Exodus Wallet, is a non-custodial cryptocurrency wallet available on desktop and mobile platforms. The wallet enables users to secure, send, receive and exchange a broad range of digital currencies while retaining full control of their private keys. With built-in portfolio tracking and an integrated exchange feature powered by third-party liquidity providers, Exodus offers a one-stop interface for both newcomers and experienced crypto enthusiasts.
Since its initial release in mid-2016, Exodus has expanded support to over 100 cryptocurrencies and tokens, including major assets such as Bitcoin, Ethereum and Litecoin as well as numerous ERC-20 tokens.
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