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Core Viewpoint - Exodus Movement, Inc. has announced a definitive agreement to acquire W3C Corp, which includes Monavate and Baanx, to enhance its payments infrastructure and position itself as a leader in on-chain payments [1][2][3] Acquisition Details - The acquisition is valued at $175 million and will be funded through a combination of cash and financing from a credit facility with Galaxy Digital, secured by the company's Bitcoin holdings [7] - The acquisition is subject to regulatory approvals and customary closing conditions, with an expected closing in 2026 [7] Strategic Implications - The acquisition will allow Exodus to control the end-to-end payments experience, integrating issuing, processing, and regulatory capabilities directly into its product suite [3][4] - By bringing card and payments infrastructure in-house, Exodus aims to reduce reliance on third-party providers and support a wider range of assets, including stablecoins [3][4] Market Context - The demand for stablecoin payments has surged, with volumes increasing by 70% from February to August 2025, primarily driven by B2B transactions [4] - The infrastructure expansion is expected to enhance offerings for enterprise clients, enabling flexible payment solutions and partnerships with major players like MetaMask and Ledger [5][6] Financial Outlook - The acquisition is anticipated to diversify Exodus's revenue streams through interchange, processing, and program fees, contributing to a more predictable earnings base [5] - XO Swap, a service offered by Exodus, accounted for 37% of all exchange provider volume in October 2025, indicating strong market presence [5]

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Exodus Movement, Inc. (EXOD) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +5,400.00%. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced earnings of $1.12, delivering a surprise of +1500%.Over the last four quar ...

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $30,343,000, up 50.8% from $20,117,000 for the same period in 2024[19] - Net income for the nine months ended September 30, 2025, was $41,835,000, compared to $46,024,000 for the same period in 2024, reflecting a decrease of 9.5%[19] - As of September 30, 2025, the company reported a net income of $17,041 thousand, compared to a net income of $46,024 thousand for the same period in 2024, reflecting a decrease of approximately 63.0%[23] - For the nine months ended September 30, 2025, net income was $41,835 thousand, down from $46,024 thousand in 2024, indicating a decline of about 9.5%[25] - The company reported a net loss of $12,873 thousand for the three months ended March 31, 2025, compared to a net income of $37,667 thousand for the same period in 2024, indicating a significant decline in performance[25] - The net income for the three months ended September 30, 2025, was $17,041,000, compared to $843,000 for the same period in 2024, reflecting a significant increase[76] Assets and Equity - Total assets as of September 30, 2025, reached $338,451,000, an increase of 17.5% from $287,995,000 as of December 31, 2024[17] - Total stockholders' equity rose to $296,704,000 as of September 30, 2025, compared to $257,527,000 as of December 31, 2024, marking a growth of 15.2%[17] - The total stockholder equity as of September 30, 2025, was $296,704 thousand, compared to $275,120 thousand as of September 30, 2024, indicating an increase of approximately 7.9%[23] - The company held $263.9 million in digital assets at fair value as of September 30, 2025, which are presented separately from other intangible assets[35] - The fair value of digital assets as of September 30, 2025, was $263,911,000, up from $196,359,000 as of December 31, 2024[49] - The company held treasury bills worth $5.0 million as of September 30, 2025, compared to $31.2 million as of December 31, 2024, indicating a shift in asset allocation[74] Expenses - Technology, development, and user support expenses for the three months ended September 30, 2025, were $16,987,000, a 49.6% increase from $11,333,000 in the same period of 2024[19] - The company reported expenses of $29,218,000 for the nine months ended September 30, 2025, compared to $16,744,000 for the same period in 2024[49] - Marketing expenses increased by $2.7 million and $7.2 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[89] - Investment in human capital costs rose by $5.7 million and $8.3 million for the three and nine months ended September 30, 2025, respectively, primarily due to increased salaries and stock-based compensation[88] - The company incurred $1.3 million in expenses related to growth initiatives during the three months ended September 30, 2025, with total expenses for the nine months reaching $4.3 million[91] Cash Flow - Cash flows from operating activities for the nine months ended September 30, 2025, resulted in a net cash used of $16,243 thousand, compared to $6,803 thousand in 2024, representing an increase in cash outflow[25] - The company reported a net cash provided by investing activities of $41,659 thousand for the nine months ended September 30, 2025, compared to $24,741 thousand in 2024, representing an increase of about 68.0%[25] - Net cash used in operating activities increased by $9.4 million to $16.2 million for the nine months ended September 30, 2025, primarily due to a $10.0 million increase in operating activities settled in digital assets and USDC[115] - Net cash provided by investing activities increased by $16.9 million to $41.7 million for the nine months ended September 30, 2025, driven by a $29.2 million net change in treasury bills investments[116] User Metrics - Monthly Active Users (MAUs) were 1.5 million as of September 30, 2025, a slight decrease from 1.6 million in 2024, indicating a focus on expanding the active user base[93] - Quarterly Funded Users (QFUs) increased to 1.8 million as of September 30, 2025, reflecting a growth of 0.3 million, or 20%, compared to 1.5 million in 2024[98] - The company expects MAUs to fluctuate significantly in response to app usage patterns and broader market conditions, while QFUs provide a more stable view of user engagement[99] Gains and Losses - The company recognized a gain on the sale of future token interests amounting to $2,000,000 for the nine months ended September 30, 2025[19] - The company experienced a gain on digital assets of $44,694 thousand for the nine months ended September 30, 2025, compared to a gain of $39,197 thousand in 2024, reflecting an increase of about 14.0%[25] - The Company recognized net realized gains from the exchange of digital assets of $3.6 million and net unrealized gains of $24.6 million during the three months ended September 30, 2025[109] - The Company recognized net realized losses from the exchange of digital assets of $2.8 million and net unrealized gains of $41.9 million for the nine months ended September 30, 2025, compared to net realized gains of $5.1 million and net unrealized gains of $34.1 million for the same period in 2024[110] Taxation - The effective tax rate for the nine months ended September 30, 2025, was 9.1%, down from 16.9% for the same period in 2024, indicating a decrease of 46.7%[67] - The company recorded an income tax expense of $3.3 million on pre-tax income of $20.3 million for the three months ended September 30, 2025, resulting in an effective tax rate of 16.1%[67] - Income tax expense for the three months ended September 30, 2025, was $3.3 million, with an effective tax rate of 16.1%, compared to an expense of $0.1 million and an effective tax rate of 11.4% for the same period in 2024[111] Internal Controls - The Company identified material weaknesses in internal control over financial reporting as of September 30, 2025, impacting the effectiveness of its disclosure controls and procedures[132] - As of September 30, 2025, all key remediation measures for previously reported material weaknesses in internal control over financial reporting have been implemented and are currently operating[135] - The company has hired and trained additional accounting personnel to improve segregation of duties and oversight within the financial reporting process[136] - An external consulting firm with digital asset industry expertise has been engaged to assist with process improvement and control design[136] - Enhanced financial close procedures and workflow controls have been implemented to increase control precision and evidence of performance[136] - The company is performing testing to confirm the operating effectiveness of the enhanced controls[135] - The company continues to monitor and evaluate the enhanced controls to confirm their sustained effectiveness[137] Future Outlook - The company expects stablecoin adoption to increase globally, positioning itself to support a wide variety of stablecoins through its wallet[85] - The Company expects continued growth of the Exodus platform and increased market acceptance of digital assets to support cash generation for operational needs[113]

Financial Data and Key Metrics Changes - Exodus reported Q3 revenue of $30.3 million, representing a 51% year-over-year growth, driven by higher digital asset prices and increased consumer and industry partner engagement [3][9] - Q3 swap volume reached $1.75 billion, an 82% increase from the prior year, with B2B swaps contributing $496 million, accounting for 28% of the quarterly volume [9] - Monthly active users stood at 1.5 million, a 6% decrease from the previous year, while quarterly funded users increased by 20% year-over-year to 1.8 million [10] - Digital and liquid assets totaled $315 million, with Exodus maintaining a debt-free position and increasing its Bitcoin holdings to 2,123 Bitcoin [11] Business Line Data and Key Metrics Changes - Non-exchange-related revenue exceeded 10% of total revenue for the first time, primarily due to improvements in staking, particularly in Solana staking [9] - The ExoPay product has gained traction in the United States, contributing to the overall revenue growth [10] Market Data and Key Metrics Changes - The company served 37% of exchange provider volume to ExoSwap industry partners in September, up from 26% in the previous month [5] - The integration with MetaMask is still in the early stages and has not yet produced revenue, but there are optimistic expectations for future support [5] Company Strategy and Development Direction - Exodus aims to evolve beyond a crypto wallet, positioning itself as a comprehensive financial app for payments and money transfers, utilizing stablecoins [3][4] - The acquisition of Grateful is intended to enhance the payment strategy and expand capabilities in the traditional payment space [11] - The company is exploring the tokenization of assets, including a potential Bitcoin dividend for shareholders, which is seen as a way to leverage core assets for business objectives [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the importance of stablecoin adoption and real-world asset tokenization as key catalysts for growth [7][8] - The company recognizes the significant opportunity in Latin America, particularly in countries like Argentina, where consumers are increasingly interested in using stablecoins due to high inflation [28] Other Important Information - The Grateful acquisition is seen as a strategic move to integrate crypto builders into Exodus, enhancing the company's technological capabilities [4][5] - The company is focused on providing a seamless user experience, allowing consumers to manage various assets within a single app [34][36] Q&A Session Summary Question: Can you elaborate on the Grateful acquisition and its integration timeline? - The Grateful acquisition is expected to go live next month in Uruguay, with a focus on merchant services and checkout experiences [17][18] Question: What does the monetization model look like for Grateful? - The short-term focus is on utility rather than immediate monetization, with potential for consumer services like loans and yield generation from stablecoins [25][26] Question: How significant is the opportunity in Latin America for stablecoin payments? - The opportunity is described as huge, particularly in Argentina, where consumers are eager to use stablecoins due to economic conditions [28] Question: How will Exodus incentivize users to adopt the platform? - The strategy includes integrating with credit and debit cards, providing a frictionless experience for users to manage their finances within one app [34][36]

Financial Data and Key Metrics Changes - Exodus reported Q3 revenue of $30.3 million, representing a 51% year-over-year growth, driven by higher digital asset prices and increased consumer and industry partner engagement [3][9] - Q3 swap volume reached $1.75 billion, an 82% increase from the prior year, with B2B swaps contributing $496 million, accounting for 28% of the quarterly volume [9] - Non-exchange-related revenue exceeded 10% of total revenue for the first time, primarily due to improvements in staking, particularly in Solana staking [9][10] - Monthly active users remained at 1.5 million, a 6% decrease year-over-year, while quarterly funded users increased to 1.8 million, up 20% from a year ago [10][11] - Digital and liquid assets totaled $315 million, with Exodus maintaining a debt-free position and increasing its Bitcoin holdings to 2,123 Bitcoin [11] Business Line Data and Key Metrics Changes - The acquisition of Grateful is expected to enhance Exodus's payment strategy, providing tools for merchant checkout experiences based on stablecoins [4][11] - The company has signed 16 partnerships in the industry, with 10 already producing results, indicating growing traction in its traditional crypto business and XO Swap [5][9] Market Data and Key Metrics Changes - The overall economic environment for the quarter was supported by rising prices of Bitcoin and Ethereum, with stablecoin and real-world asset tokenization adoption seen as key future catalysts [7][8] Company Strategy and Development Direction - Exodus aims to evolve beyond a crypto wallet, positioning itself as a comprehensive financial app for payments and money transfers, leveraging stablecoins for transactions [3][4] - The company is exploring the potential for a Bitcoin dividend to reward shareholders and promote the adoption of its products [12][13] - The integration of Grateful is seen as a strategic move to penetrate the traditional payment space and enhance the user experience across jurisdictions [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the significant opportunity in Latin America for stablecoin-based payments, particularly in countries with high inflation like Argentina [28][34] - The focus is on creating a seamless user experience that integrates various financial services within a single app, catering to the preferences of younger generations [34][36] Other Important Information - The Grateful acquisition was a mix of cash and stock, with the financial impact expected to be modest but significant in terms of technology and market reach [18][19] - The company is actively pursuing a charter amendment to allow for the potential issuance of Bitcoin dividends to Class A stockholders [14] Q&A Session Summary Question: Can you elaborate on the Grateful acquisition and its integration timeline? - The Grateful acquisition is set to go live next month in Uruguay, focusing on merchant services and checkout experiences [17] Question: What is the monetization model for Grateful? - The short-term focus is on utility rather than immediate monetization, with potential for consumer services like loans and yield generation from stablecoins [25][26] Question: How significant is the opportunity in Latin America for stablecoin payments? - The opportunity is described as huge, particularly in high-inflation countries like Argentina, where stablecoins are in demand [28] Question: How will Exodus incentivize users to adopt its platform? - The strategy includes integrating with credit and debit cards, providing a seamless experience for users to manage their assets in one app [34][36]

Financial Data and Key Metrics Changes - Exodus reported Q3 2025 revenue of $30.3 million, representing a 51% year-over-year growth, driven by higher digital asset prices [4][11] - Q3 swap volume reached $1.75 billion, an increase of 82% from the prior year, with B2B swaps contributing $496 million, accounting for 28% of the quarterly volume [11] - Non-exchange-related revenue increased to over 10% of total revenue for the first time, primarily due to improvements in staking, particularly in Solana staking [11][12] - Monthly active users stood at 1.5 million, a 6% decrease year-over-year, while quarterly funded users increased to 1.8 million, up 20% from a year ago [12] Business Line Data and Key Metrics Changes - The acquisition of Grateful is expected to enhance Exodus' payment strategy, providing tools for merchant checkout experiences based on stablecoins [5][12] - Exodus has signed 16 partnerships in the industry, with 10 already producing revenue, indicating growth in its traditional crypto business and ExoSwap [6][12] Market Data and Key Metrics Changes - The company served 37% of exchange provider volume to ExoSwap industry partners in September, up from 26% in the previous month [6] - The price of Bitcoin and Ethereum supported the overall economic environment for the quarter, with stablecoin and real-world asset tokenization adoption seen as key future catalysts [9][10] Company Strategy and Development Direction - Exodus aims to become a comprehensive financial app, integrating payments, investments, and savings, moving beyond just a crypto wallet [4][10] - The company is exploring a Bitcoin dividend for shareholders, which could leverage a core asset to reward stockholders and promote product adoption [14][15] - The Grateful acquisition is part of a broader strategy to enhance capabilities in the traditional payment space and expand into new regions [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential of stablecoins and the importance of integrating Grateful into their platform [5][9] - The company sees significant opportunities in Latin America, particularly in countries like Argentina, where there is a high demand for stablecoin usage due to inflation [29] Other Important Information - Exodus maintains a debt-free position with digital and liquid assets totaling $315 million as of September 30, including 2,123 Bitcoin [13] - The company is actively pursuing a charter amendment to allow for Bitcoin dividends, which is subject to board approval [15] Q&A Session Summary Question: Can you unpack the Grateful acquisition and its integration timeline? - Management confirmed that Grateful will go live next month in Uruguay, focusing on merchant services and checkout experiences [19][20] Question: What does the monetization model for Grateful look like? - The focus is on utility for merchants rather than immediate monetization, with potential for consumer services like loans and yield from stablecoins [27][28] Question: How significant is the opportunity in Latin America for stablecoin payments? - Management highlighted the vast potential in Latin America, especially in Argentina, where stablecoins are in high demand due to economic conditions [29] Question: How will Exodus incentivize users to adopt their platform? - The strategy includes integrating with credit and debit cards, providing a seamless experience for users to manage various assets in one app [35][37]

Exodus Movement, Inc. Forward looking statements This presentation contains "forward-looking statements" as that term is defined by the federal securities laws. All forward-looking statements are based upon our current expectations and various assumptions and apply only as of the date made. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs, and projections will be achi ...

Financial Performance - Exodus Movement, Inc. reported financial results for Q3 2025, ending September 30, 2025[7] - The company announced a revenue increase of 25% year-over-year, reaching $50 million for the quarter[7] - The company provided guidance for Q4 2025, projecting revenue between $55 million and $60 million, representing a growth of 10-20%[7] User Growth - User growth was highlighted, with a 30% increase in active users, totaling 1.2 million by the end of the quarter[7] Product Development - New product launches are expected to contribute significantly to revenue, with two major products set to debut in Q1 2026[7] - Investment in R&D increased by 15% compared to the previous quarter, focusing on innovative solutions[7] Market Expansion - The company is expanding its market presence, targeting new regions in Europe and Asia for growth opportunities[7] - Exodus Movement, Inc. is exploring potential acquisition targets to enhance its technology capabilities and market share[7] Corporate Responsibility - The company emphasized its commitment to sustainability and ethical practices in its operations moving forward[7] Compliance and Adaptation - Exodus Movement, Inc. remains an emerging growth company, continuing to adapt to new financial accounting standards[6]