Exodus Movement Q2 Earnings Call Highlights

Exodus is shifting toward payments: The company reported $26.2 million in Q2 revenue, including $5 million from newly acquired Monavate, and plans to integrate Baanx into Monavate while expanding beyond its traditional self-custodial wallet business.

Integration costs drove losses: Exodus posted an $18.6 million net loss and a $21.5 million EBITDA loss, partly due to approximately $17 million in transaction-related incentives and $5.8 million in professional-services expenses. A 25% workforce reduction is expected to deliver $10 million–$13 million in annualized savings.

European payments expansion remains dependent on regulatory progress: Exodus is working to restore European card issuance and expects to establish a new issuing arrangement in Q4, while pursuing TXIPay’s licenses and transitioning to a new U.S. banking partner.

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.

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.

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%.