What Exodus Movement (EXOD) Said on Its Q3 Earnings Call

Key Points

• Revenue increased to $32.5 million from $26.2 million in Q2, while the adjusted EBITDA loss narrowed to $3.9 million from $6.7 million. Exodus reported a net loss of $8.3 million.
• Payments transaction volume rose to about $1.1 billion from $600 million in the prior quarter. Cost reductions, including a drop in headcount from 326 to 214, put the company on track for approximately $30 million in annual cost savings going into 2027.
• Exodus restarted U.S. card issuance, while European card issuance remains subject to regulatory approval. The company is also developing business-focused payment and stablecoin products, but has not yet provided adoption or revenue figures for them.

Exodus Movement NYSEAMERICAN: EXOD reported higher third-quarter revenue and a narrower adjusted EBITDA loss as the digital asset wallet provider integrated its acquired payments businesses and reduced costs.

Revenue rose to $32.5 million from $26.2 million in the second quarter and $30.3 million a year earlier, Chief Financial Officer James Gernetzke said on the company’s earnings call. The quarter was the first full period to include the acquired Monavate and Baanx businesses, making year-over-year comparisons less straightforward because of the change in business mix.

The company posted a net loss of $8.3 million, or $0.27 per share. Its adjusted EBITDA loss narrowed to $3.9 million from $6.7 million in the second quarter.

Payments Volume Rises as Exchange Activity Improves

Digital asset services generated approximately $21.6 million in third-quarter revenue, while payments accounted for $10.9 million. Payment transaction volume reached about $1.1 billion, up from approximately $600 million in the prior quarter, and active cards totaled roughly 1.6 million.

Exchange provider processed volume was approximately $1.1 billion, also rounded to $1.1 billion in the second quarter. XO Swap represented 24% of provider volume, and Exodus had approximately 1.4 million monthly active users at quarter-end.

Co-founder and Chief Executive Officer JP Richardson said exchange volume improved during the quarter, with September activity about 7% higher than August and 28% higher than July. Total quarterly exchange volume remained slightly below the second quarter, he said.

Gernetzke said October volumes declined slightly from September, while it was too early to assess November. He said the company anticipates meaningful overall revenue growth in 2027 from opportunities in both digital asset services and payments.

Cost Reductions Narrow Loss

Gernetzke said the adjusted EBITDA loss was concentrated toward the beginning of the third quarter and improved as expense reductions and integration savings took hold in August and September. Asked for more detail, he said the company was looking at a loss of less than $1 million a month around September and expected significant improvement entering the fourth quarter.

Headcount had fallen to 214 from 326 at the May 1 acquisition date, and the company achieved its original target of $10 million to $13 million in annualized headcount savings, Gernetzke said. Exodus is now on track to reduce annual costs by approximately $30 million going into 2027.

Further efficiencies remain possible, including as vendor contracts expire, although Gernetzke said the company also expects to increase spending on growth at some point next year.

At quarter-end, Exodus held $9.6 million in cash and cash equivalents, $54.3 million in restricted cash, $6.6 million in stablecoins and $25.3 million in digital assets. Gernetzke said the company had no debt.

U.S. Card Issuance Restarts; Europe Approval Pending

Monavate CEO Michael Rolph said the company had restarted U.S. card issuance through a new partnership and was exploring additional issuing relationships. Its focus is now on supporting customer programs and building transaction activity.

In Europe, Exodus has submitted a change-of-control application and an updated business plan to the Bank of Latvia for its proposed acquisition of TigSiPay. Completion remains subject to regulatory non-objection and other closing conditions. Richardson said card issuance under the European arrangements had not yet resumed.

Rolph told analysts that he remained confident of a positive outcome toward the end of the year, while cautioning that the regulatory process was not complete. He said the business had retained existing customers and continued issuing cards for them, but new business onboarding would depend on receiving the relevant permissions.

Exodus Builds Enterprise and Stablecoin Products

Management outlined plans for a group holding company with separate consumer and enterprise divisions: Exodus Wallet and Monavate. The company is building XO Suite to combine services such as wallets, card issuance, payment processing, swaps and stablecoins for business customers.

Richardson said Exodus Pay is intended to let wallet users spend using XO Cash, a U.S. dollar-backed stablecoin issued by MoonPay. Exodus sees potential revenue from conversions into XO Cash and yield on its underlying reserves, he said. Rolph said enterprise customers could eventually incorporate branded stablecoin and wallet services into their own products.

The company also wants to support payments by AI agents operating within customer-defined budgets and permissions. Responding to a retail investor question, Richardson clarified that XO Cash had launched in May but AgentKit had not yet launched. He did not provide adoption or revenue figures for the products.

Richardson also said trading tokenized assets is on the Exodus app roadmap. Separately, he said the company had not yet seen the consumer results it wanted from its UFC partnership, though it had seen success using the relationship for hospitality experiences with potential partners.

About Exodus Movement (NYSEAMERICAN:EXOD)

Exodus Movement, Inc develops and operates a non-custodial cryptocurrency wallet platform. Its software enables users to manage, store, send and receive digital assets while retaining control of their private keys. The company's products are designed for individuals seeking to interact with cryptocurrencies and other blockchain-based assets without relying on a centralized exchange to hold their funds.

Exodus offers wallet applications for desktop and mobile devices, along with browser-based tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.