Company Update - Exodus Movement, Inc. will provide a business update and release its second quarter financial results on August 11, 2025, after market close [1] - An earnings conference webcast is scheduled for 4:30 PM ET on the same day [1] Company Overview - Exodus is a financial technology leader that offers secure, user-friendly cryptocurrency software solutions since 2015 [3] - The company focuses on making digital assets accessible through multi-asset crypto wallets that prioritize design and ease of use [3] Product Offerings - Exodus provides self-custodial wallets that allow customers full control over their funds, enabling them to swap, buy, and sell cryptocurrencies [4] - The company’s business solutions include Passkeys Wallet and XO Swap, which are tools for embedded crypto wallets and swap aggregation [4] Commitment to Finance - Exodus is dedicated to driving the future of accessible and secure finance [4]

Core Insights - Exodus Movement, Inc. is well-positioned to benefit from the increasing global adoption of stablecoins, emphasizing the importance of digital asset wallets for their functionality [4][5][6] Digital Asset Holdings - As of June 30, 2025, Exodus holds 2,058 BTC, 2,729 ETH, and 31,823 SOL, showing slight increases from May 31, 2025, where the holdings were 2,038 BTC, 2,721 ETH, and 29,109 SOL respectively [1] User Metrics - Monthly Active Users (MAUs) decreased to 1.5 million as of June 30, 2025, down from 2.2 million in May 2025, with a notable drop in Passkeys wallets from approximately 675,000 to 21,000 [2] Exchange Volume - The processed volume for Exodus' exchange provider was $446 million in June 2025, a decrease from $486 million in May 2025, with $90 million (20%) of the volume coming from XO Swap partners [3] Strategic Focus on Stablecoins - Exodus has supported stablecoins for nearly a decade, including major ones like Tether's USDT and Circle's USDC, and is equipped to support stablecoins across over 40 different networks [5][6] Product Offerings - The XO Swap product facilitates seamless swapping between stablecoins and blockchains, addressing the growing need for secure and trusted wallets in the financial sector [6] Vision for the Future - The company aims to build a better financial future through blockchain technologies, with stablecoins being a significant use case for its products [7]

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Company Overview - Exodus Movement, Inc. is a leading self-custodial cryptocurrency platform, focusing on secure and user-friendly crypto software solutions since 2015 [5][6] - The company emphasizes the importance of design and ease of use in its multi-asset crypto wallets, making digital assets accessible to a wide audience [5] Digital Asset Holdings - As of May 31, 2025, Exodus holds 2,038 Bitcoin (BTC), 2,721 Ethereum (ETH), and 29,109 Solana (SOL) in its corporate treasury [1] User Metrics - The company reported 2.2 million monthly active users (MAUs) as of May 31, 2025, with approximately 675,000 users utilizing Passkeys Wallets [2] Exchange Volume - The exchange provider processed a volume of $486 million in May 2025, with $69 million (14%) coming from XO Swap partners [3] Management Insights - The CEO highlighted the impact of a May promotion on user growth, particularly for Passkeys Wallets, although such promotions are not expected to continue in June [4] - The CFO noted that the increase in Bitcoin holdings reflects the operational philosophy of the company and its commitment to driving shareholder value through organic growth and potential acquisitions [4]

Core Insights - Exodus has launched XO Pay, a new service enabling customers to buy and sell cryptocurrency directly within the Exodus Mobile wallet, eliminating the need for third-party exchanges [1][3] - XO Pay supports popular cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin, and allows purchases using Visa, Mastercard, Apple Pay, or Google Pay [2] - The service is currently available across the United States, excluding New York and Vermont [2] Company Overview - Exodus aims to empower individuals by providing secure and user-friendly crypto software, focusing on self-custodial wallets that give customers full control over their funds [5] - The company has been operational since 2015 and offers solutions like Passkeys Wallet and XO Swap for businesses [5] Technology and Integration - XO Pay integrates Coinme's Crypto-as-a-Service API platform, creating a seamless in-app purchase experience while maintaining user control over assets [4][6] - The user experience is designed for simplicity, allowing customers to initiate purchases easily through the Exodus Mobile app [3] Customer Support - Dedicated support is available for XO Pay users, with representatives ready to assist with transaction issues [4][7]

Exodus Movement, Inc. (EXOD) came out with a quarterly loss of $0.45 per share versus the Zacks Consensus Estimate of $0.22. This compares to earnings of $1.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -304.55%. A quarter ago, it was expected that this company would post earnings of $0.10 per share when it actually produced earnings of $0.96, delivering a surprise of 860%.Over the last four quarters, the company has surp ...

Financial Data and Key Metrics Changes - Q1 revenue reached $36 million, marking a 24% increase year over year, and it was the second highest revenue quarter ever for the company [3][15][29] - Exchange process volumes for the quarter were $2.1 billion, reflecting a 62% growth year over year, but a 7% reduction sequentially [19] - Monthly active users (MAUs) were 1.6 million, down 30% sequentially and 6% year over year [19][20] - Quarterly funded users (QFUs) were 1.8 million, down 5% sequentially but up 6% year over year [21] Business Line Data and Key Metrics Changes - ExoSwap contributed approximately 30% of Q1 swap volume, up from 19% in Q4 [8][18] - ExoSwap generated 17% of Q1 revenue, indicating its role as a key revenue growth driver [18] - The Echo product, while not expected to have a material impact on revenue, resulted in over 1.2 million passkeys wallets created [6][22] Market Data and Key Metrics Changes - The price of Bitcoin declined 12% in Q1, with Ether and Solana experiencing losses of 45% and 34% respectively [9] - The company holds over 2,000 Bitcoin on its balance sheet, reflecting its long-standing Bitcoin treasury strategy [11][24] Company Strategy and Development Direction - The company aims to grow and diversify its services, expand partnerships, and pursue selective acquisitions [14][15] - The focus is on creating user-friendly crypto products and leveraging blockchain technology for everyday consumers [4][29] - The company is optimistic about regulatory clarity in the U.S. and its potential to accelerate mainstream digital asset adoption [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic headwinds impacting user activity but expressed confidence in the long-term growth prospects of the wallet and digital assets [16][29] - The company is actively engaging with policymakers to promote clear regulations that protect innovation [13] - Management remains optimistic about the future growth of stablecoins and their potential to disrupt traditional payment systems [28] Other Important Information - The company has a strong balance sheet with $238 million in digital and liquid assets and no debt [24] - The company pays 100% of salaries in Bitcoin, emphasizing its commitment to the cryptocurrency [11] Q&A Session Summary Question: What is the expected cadence for signing additional partnerships? - Management indicated that while they are actively talking to major players, the process takes time due to the need for trust and consumer base considerations [32][34] Question: Can you provide insights on ExoSwap's revenue contributions and future mix? - Management noted that ExoSwap's revenue share will be lower margin than the base exchange aggregator but expects significant contributions as more partnerships are signed [41][42] Question: What is the focus of new partnerships and their makeup? - Management highlighted that partnerships are increasingly focused on supporting cross-chain swaps, reflecting a growing demand for multichain products [46][49] Question: When can we expect Echo to launch commercially? - Management stated that Echo is currently focused on the X platform, with no immediate plans for other platforms, but it serves as a demonstration of their technology [55][59]

Financial Data and Key Metrics Changes - Q1 2025 revenues reached $36 million, marking a 24% year-over-year increase, and it was the second highest revenue quarter ever for the company [4][17] - Exchange process volumes for the quarter were $2.1 billion, reflecting a 62% growth year-over-year but a 7% sequential reduction [20] - Monthly active users (MAUs) were 1.6 million, down 30% sequentially and 6% year-over-year [20] - Quarterly funded users (QFUs) were 1.8 million, down 5% sequentially but up 6% year-over-year [22] Business Line Data and Key Metrics Changes - ExoSwap contributed approximately 30% of Q1 swap volume, up from 19% in Q4 [9] - ExoSwap generated 17% of Q1 revenue, indicating significant growth from partnerships and promotional campaigns [19] - The Echo product, while not a revenue generator, resulted in over 1.2 million passkeys wallets created, showcasing user engagement [7][24] Market Data and Key Metrics Changes - The price of Bitcoin declined by 12% in Q1, with Ethereum and Solana experiencing losses of 45% and 34% respectively [11] - The overall crypto market faced headwinds due to macroeconomic factors, impacting user activity and engagement [12] Company Strategy and Development Direction - The company aims to grow and diversify its services, expand partnerships, and pursue selective acquisitions [16] - There is a focus on increasing visibility through marketing and sponsorships, such as the upcoming Bitcoin conference [12][78] - The company is optimistic about regulatory clarity in the U.S. and its potential to accelerate mainstream digital asset adoption [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to benefit from the evolving regulatory landscape and the growth of digital assets [14][15] - The company remains committed to innovation and is exploring acquisition opportunities in a consolidating market [26][27] - Management highlighted the importance of stablecoins and their potential to disrupt traditional payment systems [28] Other Important Information - The company holds $238 million in digital and liquid assets, with no debt and a growing Bitcoin treasury strategy [25] - The company pays 100% of salaries in Bitcoin, emphasizing its commitment to the cryptocurrency ecosystem [13] Q&A Session Summary Question: Insights on Ledger partnership and future partnerships - Management acknowledged the significance of the Ledger partnership and indicated ongoing discussions with other major players, emphasizing the long-term growth potential from additional partnerships [33][36] Question: ExoSwap volume and revenue contributions - Management noted that ExoSwap's performance was boosted by a successful promotional campaign and discussed the challenges in forecasting short-term volumes due to partner-driven marketing efforts [40][42] Question: Details on new partnerships and their focus - Management described the mix of partnerships, highlighting the demand for cross-chain swaps and the growing interest in stablecoins among traditional finance players [46][50] Question: Commercialization of Echo product - Management clarified that Echo is currently a demo product focused on user engagement and gamification, with no immediate plans for commercialization [55][59] Question: Take rates from exchange process volumes - Management discussed the impact of the Ledger partnership on brand trust and the ongoing efforts to improve take rates while acknowledging the revenue share model of ExoSwap [63][65]

Financial Highlights - As of March 31, 2025, Exodus had $238 million in assets and no debt[10] - Exodus' revenue model is scalable due to relatively fixed costs and durable in bear markets, with growth in bull markets[10] - Exodus' revenue is generated from third-party API providers, and the company does not touch user funds[54] - As of March 31, 2025, Exodus held 2,011 units of Bitcoin valued at $166 million, $1.7 million in US Treasury bills, $61.1 million in cash, cash equivalents, & USDC, 2,693 units of Ether valued at $4.9 million, and $4.3 million in other digital assets[61] Market Opportunity - The total addressable market includes over 650 million people investing in crypto globally[13] - The global crypto market cap is $3 trillion[13] - USD-denominated on-chain Bitcoin transfer volumes were approximately $45.6 billion per day[13] - Stablecoin issuance (market cap) is at $237 billion[17] User Metrics - Monthly Active Users (MAUs) reached 1.5 million in Q1 2025[56] - Quarterly Funded Users (QFUs) also reached 1.5 million in Q1 2025[58]

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2025 financial statements report **$36.0 million** revenues and a **$12.9 million** net loss, a significant shift from prior year net income Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $59,773 | $37,883 | | Digital assets | $175,207 | $196,359 | | **Total Assets** | **$263,202** | **$287,995** | | Total current liabilities | $6,945 | $8,345 | | **Total Liabilities** | **$21,655** | **$30,468** | | **Total Stockholders' Equity** | **$241,547** | **$257,527** | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | **$35,996** | **$29,060** | | Loss (gain) on digital assets, net | $28,809 | $(56,799) | | (Loss) income before income taxes | $(21,741) | $67,953 | | **Net (Loss) Income** | **$(12,873)** | **$54,787** | | Basic net (loss) income per share | $(0.45) | $2.09 | | Diluted net (loss) income per share | $(0.45) | $1.75 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(6,166) | $450 | | Net cash provided by investing activities | $33,694 | $9,552 | | Net cash used in financing activities | $(5,638) | $(344) | | **Change in cash and cash equivalents** | **$21,890** | **$9,658** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports **$36.0 million** revenue for Q1 2025, a **24%** increase, but a net loss due to digital asset fluctuations and rising expenses Key Performance Indicators (KPIs) | Metric | As of March 31, 2025 | As of March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Monthly Active Users (MAUs) | 1.6 million | 1.7 million | -6% | | Quarterly Funded Users (QFUs) | 1.8 million | 1.6 million | +13% | Results of Operations Comparison (in thousands) | Account | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$35,996** | **$29,060** | **$6,936** | **24%** | | Technology, development and user support | $14,893 | $10,704 | $4,189 | 39% | | General and administrative | $14,318 | $8,055 | $6,263 | 78% | | Loss (gain) on digital assets, net | $28,809 | $(56,799) | $85,608 | (151)% | | **Net (Loss) Income** | **$(12,873)** | **$54,787** | **$(67,660)** | **(123)%** | - Revenue growth was primarily driven by a **$7.1 million (26%)** increase in exchange aggregation revenue, boosted by user growth and business-to-business partner efforts[87](index=87&type=chunk) - General and administrative expenses increased by **$6.3 million (78%)**, which included **$1.8 million** in transaction-related expenses for prospective business acquisitions, a **$2.2 million** increase in compensation, and a **$1.1 million** increase in marketing[90](index=90&type=chunk) - The company believes its existing cash, digital assets, and cash from operations will be sufficient to fund operations for the next twelve months[93](index=93&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are digital asset price volatility, interest rate fluctuations, and foreign currency exchange rates - A hypothetical **10%** change in digital asset prices would impact fair value by **$17.5 million** as of March 31, 2025[105](index=105&type=chunk) - A hypothetical **100 basis point** change in interest rates would result in a **$0.6 million** change in interest earned on cash and treasury bills[107](index=107&type=chunk) - The company's foreign currency exposure is mainly from Swiss Franc transactions, with **$0.5 million** net foreign currency gains for Q1 2025[108](index=108&type=chunk)[109](index=109&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to unremediated material weaknesses - Management concluded that the Company's disclosure controls and procedures were not effective as of March 31, 2025[112](index=112&type=chunk) - Material weaknesses related to insufficient personnel and inadequately designed control activities remain unremediated[113](index=113&type=chunk) - A remediation plan is underway, but material weaknesses are not yet fully resolved despite some completed activities[114](index=114&type=chunk)[115](index=115&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal claims and proceedings, not expected to have a material adverse effect - The Company is subject to a number of claims and proceedings that generally arise in the ordinary course of business, which are not expected to have a material adverse effect[62](index=62&type=chunk)[120](index=120&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the Annual Report on Form 10-K, except for a mitigated tax information reporting risk - A business-related risk regarding a proposed IRS rule on 'Gross Proceeds Reporting by Brokers' is no longer considered a risk due to new legislation[123](index=123&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the reporting period - None[124](index=124&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[125](index=125&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[126](index=126&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted, modified, or terminated any Rule 10b5-1 trading arrangement during Q1 2025 - No director or Section 16 officer adopted, modified, or terminated any Rule 10b5-1 trading arrangement during the first quarter of 2025[127](index=127&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications - The report includes certifications from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act[129](index=129&type=chunk)