Core Insights - International Money Express, Inc. (Intermex) has launched a redesigned Remittance-as-a-Service (RaaS) platform aimed at facilitating cross-border money transfers for businesses [1][2] - The platform allows companies to offer branded payment services in various markets, including Latin America and select regions in Southeast Asia, the EU, and Africa [3][4] Group 1: Platform Features - The RaaS platform provides a customizable system for businesses to create branded customer experiences across multiple channels, including WhatsApp and mobile apps [4] - It includes essential compliance measures such as licensing, know your customer (KYC), and anti-money laundering (AML) protocols [4] - The platform supports a wide range of payout options, including cash pickups, home deliveries, and direct bank deposits, leveraging one of the largest payout networks in Latin America [4] Group 2: Business Benefits - The platform aims to eliminate barriers for businesses looking to innovate and expand by providing a turnkey solution built on extensive industry experience [4] - Companies can access integrated payment services, merchant account management, chargeback support, and advanced anti-fraud tools [4] - Intermex offers 24/7 bilingual customer support, business insights, and ongoing strategic guidance to its partners [4][5] Group 3: Company Background - Founded in 1994, Intermex specializes in facilitating money transfers from various countries to over 60 destinations, utilizing proprietary technology [6] - The company operates through a network of retail agents and company-operated stores, with headquarters in Miami, Florida, and international offices in Mexico, Guatemala, the UK, and Spain [6]

Core Insights - International Money Express, Inc. (Intermex) has launched a redesigned Remittance-as-a-Service (RaaS) platform aimed at facilitating cross-border money transfers for businesses [1][2] - The platform allows companies to offer branded payment services in various markets, including Latin America and select regions in Southeast Asia, the European Union, and Africa [3][4] Company Overview - Intermex, founded in 1994, specializes in money transfers from locations such as the U.S., Canada, Spain, Italy, the U.K., and Germany to over 60 countries [6] - The company operates through a combination of digital platforms and a vast network of retail agents and company-operated stores [6] Platform Features - The RaaS platform provides a customizable system for businesses to create branded customer experiences across multiple channels, including WhatsApp and mobile apps [4] - It includes essential services such as cash pickups, home deliveries, direct bank deposits, integrated payment services, and advanced anti-fraud tools [4][5] - The platform is supported by appropriate licensing and compliance measures, ensuring adherence to regulations [4] Business Benefits - The RaaS platform aims to eliminate barriers for businesses looking to innovate and expand, providing a turnkey solution that includes infrastructure, licenses, and support teams [4][5] - Partners benefit from 24/7 bilingual customer support, business insights, and ongoing strategic guidance [4]

Core Insights - International Money Express, Inc. (Intermex) has announced a partnership with the New York Red Bulls, focusing on serving the Latino community through soccer [1][2][3] Company Overview - Intermex is a leading money remittance provider, enabling consumers to send money from various countries to over 60 destinations [4] - The company utilizes proprietary technology and operates through a network of retail agents and company-operated stores [4] Partnership Details - The partnership aims to engage with Latino communities in the northeast U.S. through in-stadium activations, community outreach events, and cultural initiatives [3] - Intermex's collaboration with the New York Red Bulls highlights its commitment to supporting the sport that resonates with Latino identity and tradition [2][3] Market Context - There are over 85 million soccer fans in the U.S., with Latinos making up nearly 70% of MLS viewership, indicating a strong market for this partnership [2]

Company Overview - International Money Express, Inc. (Intermex) is a leading money remittance provider focused on Latin America and the Caribbean, founded in 1994 [5] - The company utilizes proprietary technology to facilitate money transfers from various countries to over 60 destinations [5] - Intermex operates through a combination of digital platforms and a network of retail agents and company-operated stores [5] Partnership Announcement - Intermex has announced a new partnership with Houston Dynamo FC, a Major League Soccer team, aimed at promoting Latino culture through soccer [1][2] - This collaboration is significant in Houston, where over 45% of the population identifies as Latino, and Latino fans constitute nearly 70% of the MLS audience [2] Cultural and Community Engagement - The partnership seeks to enhance cultural pride, family connections, and community empowerment through various initiatives [2][4] - Intermex's Chief Product, Marketing & Digital Officer emphasized the importance of connecting with customers beyond financial services through shared heritage and passion for soccer [3] - The collaboration will include in-stadium experiences, community events, and cultural celebrations that honor the Latino community [4] Houston Dynamo FC Overview - Houston Dynamo FC is part of a multi-faceted organization that includes the Dynamo, the Houston Dash, and the Houston Dynamo Academy [6] - The club has a history of success, including two MLS Cup championships and participation in international competitions [6] - Recent investments include a multi-million-dollar renovation of Shell Energy Stadium and a new headquarters in East Downtown Houston [6]

First-of-Its-Kind Deal Deepens Intermex’s Connection to Soccer and Latino Communities Across Southern CaliforniaLOS ANGELES and MIAMI, May 29, 2025 (GLOBE NEWSWIRE) -- The reigning 2024 MLS Cup champion LA Galaxy and their home stadium, Dignity Health Sports Park (DHSP), have launched a new partnership with International Money Express, Inc. (NASDAQ: IMXI) (Intermex), a leading money remittance provider to Latin America and the Caribbean. The multiyear agreement, brokered by AEG Global Partnerships, makes In ...

[Introduction](index=1&type=section&id=Introduction) [Filing Information](index=1&type=section&id=Filing%20Information) This section details the company's SEC filing status, identifying it as a large accelerated filer and confirming compliance with filing requirements for the preceding 12 months. As of May 5, 2025, the company had **29,976,651** shares of common stock outstanding - The registrant is a large accelerated filer and has filed all required reports and interactive data files during the preceding 12 months[3](index=3&type=chunk)[4](index=4&type=chunk) Common Stock Details | Metric | Value | | :--- | :--- | | Common Stock Par Value | $0.0001 | | Common Stock Outstanding (May 5, 2025) | 29,976,651 shares | [Special Note Regarding Forward-Looking Statements](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section provides a cautionary note regarding forward-looking statements in the report, which reflect current views on future performance but are subject to various risks and uncertainties. Key risk factors include changes in regulations, economic conditions, foreign exchange volatility, competition, cybersecurity threats, and the ability to maintain compliance and banking relationships - Forward-looking statements are based on current management views and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially[9](index=9&type=chunk)[10](index=10&type=chunk) - Key risk factors include changes in immigration laws, success in expanding digital services, new technology disruption, loss of key agents, economic factors (inflation, recession, interest rates), international political factors, foreign exchange volatility, cybersecurity attacks, and regulatory compliance[10](index=10&type=chunk)[12](index=12&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements[11](index=11&type=chunk) [Part I - Financial Information](index=7&type=section&id=PART%201%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for International Money Express, Inc., including the balance sheets, statements of income and comprehensive income, statements of changes in stockholders' equity, and statements of cash flows, providing a snapshot of the company's financial position and performance for the periods ended March 31, 2025 and December 31, 2024 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows an increase in total assets to **$490.6 million** as of March 31, 2025, from **$462.4 million** at December 31, 2024, driven primarily by higher cash and accounts receivable. Total liabilities also increased, while stockholders' equity saw a modest rise Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $151,764 | $130,503 | | Accounts receivable, net | $131,026 | $107,077 | | Total current assets | $325,928 | $297,783 | | Total assets | $490,589 | $462,377 | | **LIABILITIES** | | | | Wire transfers and money orders payable, net | $115,081 | $85,044 | | Total current liabilities | $186,468 | $151,998 | | Debt, net | $147,385 | $156,623 | | Total liabilities and stockholders' equity | $490,589 | $462,377 | | **STOCKHOLDERS' EQUITY** | | | | Total stockholders' equity | $139,243 | $134,924 | [Condensed Consolidated Statements of Income and Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For the three months ended March 31, 2025, total revenues decreased by **4.1%** to **$144.3 million**, primarily due to lower wire transfer fees. Net income declined significantly by **35.8%** to **$7.8 million**, resulting in a basic EPS of **$0.25**, down from **$0.36** in the prior year Condensed Consolidated Statements of Income and Comprehensive Income (in thousands, except EPS) | Metric (in thousands, except EPS) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total revenues | $144,310 | $150,412 | -4.1% | | Operating income | $14,075 | $19,586 | -28.1% | | Net income | $7,769 | $12,106 | -35.8% | | Basic EPS | $0.25 | $0.36 | -30.6% | | Diluted EPS | $0.25 | $0.35 | -28.6% | - Wire transfer and money order fees, net, decreased by **$6.7 million (5.3%)** due to lower transaction volume, despite a **3.7%** increase in principal amount sent[15](index=15&type=chunk)[140](index=140&type=chunk) - Other income increased by **29.0%** to **$4.0 million**, driven by higher fees from 'wires-as-a-service' relationships and abandoned property[15](index=15&type=chunk)[142](index=142&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased to **$139.2 million** as of March 31, 2025, from **$134.9 million** at December 31, 2024. This was primarily due to net income of **$7.8 million** and share-based compensation, partially offset by treasury stock acquisitions totaling **$5.0 million** Condensed Consolidated Statements of Changes in Stockholders' Equity (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Stockholders' Equity | $139,243 | $134,924 | | Net income | $7,769 | $12,106 (Q1 2024) | | Share-based compensation | $2,112 | $2,153 (Q1 2024) | | Acquisition of treasury stock, at cost | $(4,981) | $(23,423) (Q1 2024) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$41.3 million** for Q1 2025 from **$48.2 million** in Q1 2024, mainly due to lower net income and changes in working capital. Net cash used in investing activities significantly decreased to **$5.3 million**, while net cash used in financing activities also decreased to **$15.1 million**, primarily due to lower share repurchases Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,282 | $48,236 | | Net cash used in investing activities | $(5,313) | $(13,480) | | Net cash used in financing activities | $(15,145) | $(55,064) | | Net increase (decrease) in cash and cash equivalents | $21,261 | $(20,408) | | Cash and cash equivalents, end of period | $151,764 | $218,795 | - The decrease in cash from operating activities was primarily due to a **$4.3 million** decrease in Net Income and a **$3.4 million** change in working capital[195](index=195&type=chunk) - The decrease in cash used in investing activities was mainly due to the non-recurrence of **$8.4 million** in leasehold improvements and equipment purchases for the new U.S. headquarters in Q1 2024[196](index=196&type=chunk) - Financing activities in Q1 2025 included **$9.2 million** net repayments under the revolving credit facility and **$5.0 million** for common stock repurchases[197](index=197&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed information on the company's business, significant accounting policies, recent acquisitions, revenue recognition, and various financial statement line items. They also cover share-based compensation, debt, equity, income taxes, segment reporting, and commitments and contingencies, offering crucial context to the condensed consolidated financial statements [Note 1 – Business and Accounting Policies](index=12&type=section&id=NOTE%201%20%E2%80%93%20BUSINESS%20AND%20ACCOUNTING%20POLICIES) International Money Express, Inc. operates as a money transmitter primarily from the U.S., Canada, and Europe to Latin America, Africa, and Asia, through a network of agents and company-operated stores. The financial statements are prepared in accordance with GAAP, and management's opinion is that all necessary adjustments for fair presentation have been included. The company notes market volatility and instability in key Latin American markets - The Company operates as a money transmitter from the U.S., Canada, Spain, Italy, UK, and Germany to Mexico, Guatemala, other Latin American countries, Europe, Africa, and Asia[20](index=20&type=chunk) - Financial statements are prepared in accordance with GAAP and include all necessary adjustments for fair presentation[21](index=21&type=chunk)[22](index=22&type=chunk) - Current political conditions in the U.S. and economic instability in Latin American markets (high interest rates, inflation, foreign currency volatility) are noted as factors affecting the business[23](index=23&type=chunk) - The company maintains cash balances in various U.S. and foreign banks, some of which may exceed insured limits, but no losses have been incurred[24](index=24&type=chunk) - New FASB guidance (ASU 2023-09 and ASU 2024-03) on income tax and expense disaggregation disclosures is being evaluated, with no material effect expected for 2025 from ASU 2023-09[26](index=26&type=chunk)[27](index=27&type=chunk) [Note 2 – Acquisitions](index=14&type=section&id=NOTE%202%20%E2%80%93%20ACQUISITIONS) On July 2, 2024, the company acquired a UK money services entity for approximately **$1.4 million** in cash, expanding its outbound remittance services from the United Kingdom. The acquisition resulted in **$1.2 million** in goodwill, primarily representing the value of the assembled workforce and expected synergies - Acquired **100%** of a UK money services entity on July 2, 2024, for approximately **$1.4 million** in cash, expanding into new markets for outbound remittances from the UK[29](index=29&type=chunk)[30](index=30&type=chunk) Acquisition Details (in thousands) | Metric (in thousands) | July 2, 2024 (Initially Reported) | March 31, 2025 (As Adjusted) | | :--- | :--- | :--- | | Total identifiable assets acquired | $399 | $399 | | Total liabilities assumed | $(176) | $(176) | | Net identifiable assets acquired | $223 | $223 | | Consideration transferred | $1,432 | $1,432 | | Goodwill | $1,209 | $1,209 | - Goodwill from the acquisition, valued at **$1.2 million**, is not tax-deductible and represents the estimated value of the assembled workforce and expected synergies[32](index=32&type=chunk) [Restructuring Costs](index=14&type=section&id=Restructuring%20Costs%20(Note)) The company initiated a restructuring plan in 2024 for foreign operations and La Nacional to reorganize the workforce, streamline processes, and integrate technology. For Q1 2025, **$0.3 million** in severance and related benefits were incurred, with a remaining liability of **$69 thousand** - Restructuring plan initiated in 2024 for foreign operations and La Nacional aims to reorganize workforce, streamline operations, and integrate technology[33](index=33&type=chunk) Restructuring Costs (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | | :--- | :--- | | Charges incurred (severance costs) | $297 | | Payments (severance costs) | $(528) | | Ending balance (severance costs) | $69 | | Beginning balance (legal and professional fees) | $16 | | Charges incurred (legal and professional fees) | $9 | | Payments (legal and professional fees) | $(25) | | Ending balance (legal and professional fees) | $0 | - Approximately **$0.3 million** in expenses for workforce reduction were incurred in Q1 2025, primarily severance payments[33](index=33&type=chunk) [Transaction Costs](index=15&type=section&id=Transaction%20Costs%20(Note)) Transaction costs, primarily legal, consulting, accounting, and financial advisory fees related to acquisitions and strategic alternatives, increased significantly to **$1.2 million** for Q1 2025, compared to **$10.0 thousand** in Q1 2024 Transaction Costs (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Transaction costs | $1,169 | $10 | - Transaction costs include internal and external costs directly related to acquisition activities and the evaluation of strategic alternatives[35](index=35&type=chunk) [Note 3 – Revenues](index=15&type=section&id=NOTE%203%20%E2%80%93%20REVENUES) Total revenues for Q1 2025 were **$144.3 million**, a decrease from **$150.4 million** in Q1 2024, primarily due to a decline in wire transfer and money order fees. Foreign exchange gains remained stable, while other income increased. The company terminated its loyalty program effective February 1, 2025, with points redeemable until July 31, 2025 Revenues (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Wire transfer and money order fees, net | $120,167 | $126,921 | | Foreign exchange gain, net | $20,181 | $20,346 | | Other income | $3,962 | $3,145 | | Total revenues | $144,310 | $150,412 | - The loyalty program, which offered discounted fees or favorable exchange rates, was terminated on February 1, 2025, with a redemption period until July 31, 2025[36](index=36&type=chunk) - The company acts as principal for most revenues, recognizing revenue on a gross basis, and also generates fees from 'wires-as-a-service' relationships with digital partners[38](index=38&type=chunk) [Note 4 – Accounts Receivable and Agent Advances Receivable, Net of Allowance](index=16&type=section&id=NOTE%204%20%E2%80%93%20ACCOUNTS%20RECEIVABLE%20AND%20AGENT%20ADVANCES%20RECEIVABLE,%20NET%20OF%20ALLOWANCE) Accounts receivable, net, increased to **$131.0 million** as of March 31, 2025, from **$107.1 million** at December 31, 2024. Agent advances receivable, net, remained stable at **$4.2 million**. The allowance for credit losses increased to **$4.4 million**, reflecting higher provisions and write-offs Accounts Receivable and Agent Advances Receivable (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts receivable, net | $131,026 | $107,077 | | Agent advances receivable, net current | $1,944 | $2,087 | | Agent advances receivable, net long-term | $2,230 | $2,198 | | Total agent advances receivable | $4,511 | $4,600 (approx) | | Allowance for credit losses | $4,432 | $3,836 | - Agent advances receivable are collateralized by personal guarantees and business assets from sending agents[41](index=41&type=chunk) Allowance for Credit Losses Rollforward (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Beginning balance (Allowance for credit losses) | $3,836 | $2,794 | | Provision | $2,066 | $1,595 | | Charge-offs | $(1,757) | $(1,847) | | Recoveries | $170 | $458 | | Ending Balance (Allowance for credit losses) | $4,432 | $2,930 | [Note 5 – Prepaid Expenses and Other Assets](index=18&type=section&id=NOTE%205%20%E2%80%93%20PREPAID%20EXPENSES%20AND%20OTHER%20ASSETS) Prepaid expenses and other current assets slightly decreased to **$10.6 million** as of March 31, 2025. Other assets, including revolving credit facility origination fees and right-of-use assets, also decreased to **$30.8 million**. The company maintains a **$3.8 million** valuation allowance for deposits held by a closed Mexican financial institution Prepaid Expenses and Other Assets (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaid expenses and other current assets | $10,561 | $10,998 | | Other assets | $30,787 | $32,198 | | Funds held by seized banking entities, net of allowance | $1,564 | $1,539 | | Valuation allowance for seized deposits | $3,800 (approx.) | $3,800 (approx.) | - The company has approximately **$5.4 million** exposure from deposits with a closed Mexican bank, maintaining a **$3.8 million** valuation allowance[45](index=45&type=chunk) [Note 6 – Goodwill and Intangible Assets](index=18&type=section&id=NOTE%206%20%E2%80%93%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Goodwill remained stable at **$55.2 million**, while intangible assets, net, decreased to **$26.1 million** as of March 31, 2025, primarily due to amortization expense. Intangible assets include agent relationships, trade names, and developed technology, amortized over estimated useful lives of up to 15 years Goodwill and Intangible Assets (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Goodwill | $55,195 | $55,195 | | Intangible assets, net | $26,058 | $26,847 | | Amortization expense (Q1 2025) | $(827) | - | - Intangible assets include agent relationships, trade names (Intermex, La Nacional, Amigo Paisano, I-Transfer), and developed technology, amortized using an accelerated method over up to **15 years**[46](index=46&type=chunk) Future Amortization Expense (in thousands) | Year | Amortization Expense (in thousands) | | :--- | :--- | | 2025 (remainder) | $3,645 | | 2026 | $3,753 | | 2027 | $3,178 | | 2028 | $2,696 | | 2029 | $2,305 | | Thereafter | $10,481 | | Total | $26,058 | [Note 7 – Leases](index=19&type=section&id=NOTE%207%20%E2%80%93%20LEASES) The company leases office space, warehouses, stores, and vehicles. Right-of-use assets decreased to **$17.7 million**, and total lease liabilities decreased to **$23.9 million** as of March 31, 2025. Operating lease costs for Q1 2025 were **$1.7 million**, with a weighted-average remaining lease term of **6.5 years** and a discount rate of **6.32%** Lease Metrics (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Right-of-use assets | $17,677 | $18,511 | | Total Lease liabilities | $23,885 | $25,050 | | Operating lease cost (Q1) | $1,745 | $1,802 | | Weighted-average remaining lease terms | 6.5 years | 6.6 years | | Weighted-average discount rate | 6.32% | 6.31% | Future Minimum Lease Payments (in thousands) | Year | Future Minimum Lease Payments (in thousands) | | :--- | :--- | | 2025 (remainder) | $5,218 | | 2026 | $5,661 | | 2027 | $4,046 | | 2028 | $2,879 | | 2029 | $2,305 | | Thereafter | $9,807 | | Total lease payments | $29,916 | | Less: Imputed interest | $(6,031) | | Present value of lease liabilities | $23,885 | [Note 8 – Wire Transfers and Money Orders Payable, Net](index=20&type=section&id=NOTE%208%20%E2%80%93%20WIRE%20TRANSFERS%20AND%20MONEY%20ORDERS%20PAYABLE,%20NET) Wire transfers and money orders payable, net, increased to **$115.1 million** as of March 31, 2025, from **$85.0 million** at December 31, 2024. This increase was primarily driven by higher wire transfers payable and customer voided wires payable, which are subject to state unclaimed property laws with abandonment periods ranging from three to seven years Wire Transfers and Money Orders Payable (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Wire transfers payable, net | $46,064 | $22,437 | | Customer voided wires payable | $34,527 | $32,583 | | Money orders payable | $34,490 | $30,024 | | Total | $115,081 | $85,044 | - Customer voided wires payable are funds not collected by recipients within **30 days** and not claimed by senders, subject to state unclaimed property laws with statutory abandonment periods of three to seven years[54](index=54&type=chunk) [Note 9 – Accrued and Other Liabilities](index=21&type=section&id=NOTE%209%20%E2%80%93%20ACCRUED%20AND%20OTHER%20LIABILITIES) Accrued and other liabilities remained stable at **$48.0 million** as of March 31, 2025. Key components include commissions payable, accrued salaries and benefits, and current lease liabilities. The deferred revenue loyalty program liability decreased to **$2.0 million** due to revenue recognition and termination of the program Accrued and Other Liabilities (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commissions payable to sending agents | $17,925 | $18,080 | | Accrued salaries and benefits | $4,152 | $5,581 | | Lease liability, current portion | $6,392 | $6,468 | | Accrued taxes | $5,333 | $2,965 | | Deferred revenue loyalty program | $2,039 | $2,692 | | Total | $47,977 | $47,434 | Deferred Revenue Loyalty Program (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Beginning balance (Deferred revenue loyalty program) | $2,692 | $4,771 | | Revenue deferred during the period | $141 | $682 | | Revenue recognized during the period | $(794) | $(672) | | Ending balance (Deferred revenue loyalty program) | $2,039 | $4,781 | [Note 10 – Debt](index=21&type=section&id=NOTE%2010%20%E2%80%93%20DEBT) Total debt, primarily from the revolving credit facility, decreased to **$147.4 million** as of March 31, 2025, from **$156.6 million** at December 31, 2024. The company entered into a Second Amended and Restated Credit Agreement in August 2024, providing a **$425.0 million** multi-currency revolving credit facility. The effective interest rate for the revolving credit facility was **2.57%** for Q1 2025. The company was in compliance with all debt covenants as of March 31, 2025 Debt (in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Revolving credit facility | $147,365 | $156,600 | | Total Debt, net | $147,385 | $156,623 | - The Second A&R Credit Agreement, effective August 29, 2024, provides a **$425.0 million** multi-currency revolving credit facility maturing August 29, 2029[58](index=58&type=chunk) - Interest rates on revolving loans are variable, based on SOFR, EURIBOR, or SONIA plus applicable margins (**1.75%-2.25%**) or a base rate plus margins (**0.75%-1.25%**)[60](index=60&type=chunk) - The effective interest rate for the revolving credit facility was **2.57%** for Q1 2025[62](index=62&type=chunk) - The company was in compliance with its quarterly minimum interest coverage ratio of **3.00:1.00** and maximum consolidated leverage ratio of **3.50:1.00** as of March 31, 2025[65](index=65&type=chunk) [Note 11 – Fair Value Measurements](index=22&type=section&id=NOTE%2011%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) The company's financial instruments are generally carried at amortized cost, with fair values approximating book values due to their short-term nature or market-rate interest structures. Non-financial assets like goodwill and intangible assets are measured at fair value on a nonrecurring basis using Level 3 inputs, based on discounted cash flow analyses and various assumptions - Fair value is determined as an exit price in an orderly transaction, using a three-level hierarchy (Level 1: quoted prices, Level 2: observable inputs, Level 3: unobservable inputs)[69](index=69&type=chunk) - Non-financial assets (goodwill and intangible assets) are measured at fair value on a nonrecurring basis using Level 3 inputs, based on discounted cash flow analysis and assumptions like forecasted revenues, agent turnover, and market rates[70](index=70&type=chunk) - Cash and cash equivalents, accounts receivable, agent advances, prepaid wires, accounts payable, wire transfers payable, and the revolving credit facility are carried at amortized cost, with fair values approximating book values[71](index=71&type=chunk)[72](index=72&type=chunk) Assets Measured at Fair Value (Non-Recurring, in thousands) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Goodwill | $55,195 | $55,195 | | Intangible assets, net | $26,058 | $26,847 | | Total assets measured at fair value (non-recurring) | $81,253 | $82,042 | [Note 12 – Share-Based Compensation](index=25&type=section&id=NOTE%2012%20%E2%80%93%20SHARE-BASED%20COMPENSATION) The company grants stock options, RSUs, RSAs, and PSUs under its 2020 Omnibus Equity Compensation Plan. Total share-based compensation expense for Q1 2025 was **$2.1 million**. Unrecognized compensation expense of approximately **$16.6 million** related to RSUs, RSAs, and PSUs is expected to be recognized over a weighted-average period of **2.0 years** - The 2020 Plan authorizes **3.7 million** shares for stock-based incentive awards, with **1.1 million** shares remaining available as of March 31, 2025[74](index=74&type=chunk) - Share-based compensation is recognized on a straight-line basis over the vesting period, generally one to four years[76](index=76&type=chunk) Share-Based Compensation Expense (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Stock options compensation expense | $0 | $44.4 | | RSUs compensation expense | $900 | $1,000 | | Share awards compensation expense | $0 | $20.1 | | RSAs compensation expense | $500 | $400 | | PSUs compensation expense | $300 | $700 | | Total share-based compensation (from cash flow) | $2,112 | $2,153 | - Unrecognized compensation expense for RSUs, RSAs, and PSUs totals approximately **$16.6 million**, to be recognized over a weighted-average period of **2.0 years**[127](index=127&type=chunk) [Stock Options](index=25&type=section&id=Stock%20Options) No stock option compensation expense was recognized in Q1 2025, compared to **$44.4 thousand** in Q1 2024. As of March 31, 2025, **151,125** stock options remained outstanding and exercisable, with a weighted-average exercise price of **$12.13** Stock Options Outstanding | Metric | Outstanding at Dec 31, 2024 | Outstanding at Mar 31, 2025 | | :--- | :--- | :--- | | Number of Options | 151,125 | 151,125 | | Weighted Average Exercise Price | $12.13 | $12.13 | | Weighted Average Remaining Contractual Term (Years) | 4.36 | 4.11 | | Weighted Average Grant Date Fair Value | $4.35 | $4.35 | - No compensation expense for stock options was recognized in Q1 2025; **$44.4 thousand** was recognized in Q1 2024[76](index=76&type=chunk) - The aggregate intrinsic value of stock options exercised in Q1 2024 was **$2.4 million** (none in 2025)[78](index=78&type=chunk) [Restricted Stock Units](index=26&type=section&id=Restricted%20Stock%20Units) Compensation expense for RSUs was **$0.9 million** in Q1 2025, down from **$1.0 million** in Q1 2024. As of March 31, 2025, **567,498** nonvested RSUs were outstanding, with **$9.3 million** in unrecognized compensation expense expected to be recognized over **2.0 years** Restricted Stock Units Outstanding (nonvested) | Metric | Outstanding (nonvested) at Dec 31, 2024 | Outstanding (nonvested) at Mar 31, 2025 | | :--- | :--- | :--- | | Number of RSUs | 432,316 | 567,498 | | Weighted Average Grant Price | $20.71 | $18.81 | | Granted (Q1 2025) | - | 254,575 | | Vested (Q1 2025) | - | (95,515) | | Forfeited (Q1 2025) | - | (23,878) | - Compensation expense for RSUs was **$0.9 million** in Q1 2025 and **$1.0 million** in Q1 2024[79](index=79&type=chunk) - Unrecognized compensation expense for RSUs is approximately **$9.3 million**, to be recognized over a weighted-average period of **2.0 years**[79](index=79&type=chunk) [Share Awards](index=26&type=section&id=Share%20Awards) No compensation expense for share awards was recognized in Q1 2025, compared to **$20.1 thousand** in Q1 2024. The grant of share awards to independent directors was replaced with Restricted Stock Awards (RSAs) starting in Q2 2024 - No compensation expense for share awards in Q1 2025; **$20.1 thousand** in Q1 2024[81](index=81&type=chunk) - Grant of share awards to independent directors was replaced with RSAs effective Q2 2024[81](index=81&type=chunk) [Restricted Stock Awards](index=26&type=section&id=Restricted%20Stock%20Awards) Compensation expense for RSAs was **$0.5 million** in Q1 2025, up from **$0.4 million** in Q1 2024. As of March 31, 2025, **258,835** nonvested RSAs were outstanding, with **$5.0 million** in unrecognized compensation expense expected to be recognized over **2.0 years** Restricted Stock Awards Outstanding (nonvested) | Metric | Outstanding (nonvested) at Dec 31, 2024 | Outstanding (nonvested) at Mar 31, 2025 | | :--- | :--- | :--- | | Number of RSAs | 227,518 | 258,835 | | Weighted Average Grant Price | $20.65 | $20.13 | | Granted (Q1 2025) | - | 121,825 | | Vested (Q1 2025) | - | (90,508) | - Compensation expense for RSAs was **$0.5 million** in Q1 2025 and **$0.4 million** in Q1 2024[82](index=82&type=chunk) - Unrecognized compensation expense for RSAs is **$5.0 million**, to be recognized over a weighted-average period of **2.0 years**[83](index=83&type=chunk) [Performance Stock Units](index=27&type=section&id=Performance%20Stock%20Units) Compensation expense for PSUs was **$0.3 million** in Q1 2025, down from **$0.7 million** in Q1 2024. As of March 31, 2025, **321,530** nonvested PSUs were outstanding, with **$2.3 million** in unrecognized compensation expense expected to be recognized over **1.8 years** Performance Stock Units Outstanding (nonvested) | Metric | Outstanding (nonvested) at Dec 31, 2024 | Outstanding (nonvested) at Mar 31, 2025 | | :--- | :--- | :--- | | Number of PSUs | 321,530 | 321,530 | | Weighted Average Remaining Contractual Term (Years) | 8.77 | 8.53 | | Weighted Average Grant Price | $21.88 | $21.88 | - Compensation expense for PSUs was **$0.3 million** in Q1 2025 and **$0.7 million** in Q1 2024[86](index=86&type=chunk) - Unrecognized compensation expense for PSUs is **$2.3 million**, to be recognized over a weighted-average period of **1.8 years**[86](index=86&type=chunk) [Note 13 – Equity](index=27&type=section&id=NOTE%2013%20%E2%80%93%20EQUITY) The company's Board of Directors has approved a stock repurchase program, most recently increased by **$63.8 million** in August 2024, with no expiration date. During Q1 2025, the company repurchased **367,873** shares for **$5.0 million**, including a privately-negotiated transaction for **100,000** shares. As of March 31, 2025, **$59.5 million** remained available under the program - The stock repurchase program was increased by an additional **$63.8 million** on August 26, 2024, with no expiration date[88](index=88&type=chunk) Stock Repurchase Program | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Shares purchased | 367,873 | 1,124,476 | | Aggregate purchase price | $5.0 million | $23.4 million | | Available for future repurchases (as of Mar 31, 2025) | $59.5 million | - | - A privately-negotiated transaction on March 12, 2025, involved purchasing **100,000** shares from Latin-American Investment Holdings Inc. for **$1.3 million**[90](index=90&type=chunk) [Note 14 – Earnings Per Share](index=28&type=section&id=NOTE%2014%20%E2%80%93%20EARNINGS%20PER%20SHARE) Basic EPS for Q1 2025 was **$0.25**, a decrease from **$0.36** in Q1 2024, while diluted EPS was **$0.25**, down from **$0.35**. The decrease reflects lower net income, partially offset by a reduced weighted-average share count due to stock repurchases Earnings Per Share (in thousands, except EPS) | Metric (in thousands, except EPS) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $7,769 | $12,106 | | Weighted-average common shares outstanding – basic | 30,587,949 | 33,675,441 | | Weighted-average common shares outstanding – diluted | 30,831,633 | 34,188,814 | | Earnings per common share – basic | $0.25 | $0.36 | | Earnings per common share – diluted | $0.25 | $0.35 | - The effect of stock repurchases reduced weighted-average shares outstanding by **69,236** shares in Q1 2025 and **386,747** shares in Q1 2024[94](index=94&type=chunk) - Certain RSUs and RSAs were excluded from diluted EPS calculation as their inclusion would be anti-dilutive[92](index=92&type=chunk)[93](index=93&type=chunk) [Note 15 – Income Taxes](index=29&type=section&id=NOTE%2015%20%E2%80%93%20INCOME%20TAXES) The income tax provision for Q1 2025 was **$3.6 million**, a decrease from **$4.8 million** in Q1 2024, primarily due to lower income before taxes. The effective income tax rate varies based on estimated taxable earnings and jurisdictional mix. A valuation allowance is maintained for deferred tax assets associated with Canadian, Spanish, Italian, German, Dutch, and British net operating loss carryforwards due to a history of taxable losses Income Tax Provision (in thousands, except tax rate) | Metric (in thousands, except tax rate) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Income before income taxes | $11,375 | $16,884 | | U.S statutory tax rate | 21% | 21% | | Income tax expense at statutory rate | $2,389 | $3,546 | | State tax expense, net of federal benefit | $867 | $1,229 | | Total income tax provision | $3,606 | $4,778 | - A valuation allowance is recorded on deferred tax assets for foreign net operating loss carryforwards (Canada, Spain, Italy, Germany, Netherlands, UK) due to a history of taxable losses[96](index=96&type=chunk) - The effective state tax rate for Q1 2025 was higher than Q1 2024, primarily due to lower share-based compensation tax benefits[97](index=97&type=chunk) [Note 16 – Segment Reporting](index=29&type=section&id=NOTE%2016%20%E2%80%93%20SEGMENT%20REPORTING) The company operates as a single reportable segment, focusing on global omnichannel money remittance services, primarily from the U.S. to Latin America and the Caribbean, with expansion into Africa, Asia, and Europe. The CEO and President, Robert Lisy, is the chief operating decision maker (CODM) and uses consolidated financial results, including Net Income, to analyze performance and allocate resources - The company has identified one operating and reportable segment: global omnichannel money remittance services[98](index=98&type=chunk) - The CODM (CEO and President, Robert Lisy) uses consolidated financial results, with Net Income as a key metric, for decision-making[99](index=99&type=chunk) Segment Operating Performance (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $144,310 | $150,412 | | Agent commissions | $61,163 | $64,137 | | Payer commissions | $23,811 | $25,116 | | Bank charges and fees | $6,594 | $6,014 | | Salaries and benefits | $18,288 | $18,106 | | Operating income | $14,075 | $19,586 | | Net income | $7,769 | $12,106 | [Note 17 – Commitments and Contingencies](index=30&type=section&id=NOTE%2017%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) The company is subject to various legal proceedings and claims in the ordinary course of business, but management believes the ultimate disposition of these matters will not have a material adverse effect on financial condition or results of operations. The company's subsidiaries were in compliance with minimum tangible net worth and liquid asset requirements as of March 31, 2025 - Management believes that current legal proceedings and claims will not have a material adverse effect on the company's financial condition or results of operations[102](index=102&type=chunk) - The company's subsidiaries comply with regulatory requirements for minimum tangible net worth and liquid assets to cover wire transfers and money orders payable[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and operating results for the three months ended March 31, 2025, compared to the same period in 2024. It covers an overview of the business, key factors and trends, how performance is assessed, detailed results of operations, non-GAAP financial measures, liquidity and capital resources, and critical accounting estimates [Overview](index=32&type=section&id=Overview) International Money Express, Inc. is a leading global omnichannel money remittance company, primarily serving the U.S. to Latin America and Caribbean corridor, with expanded services to Africa, Asia, and Europe. The company utilizes proprietary technology through a network of over **100,000** agents, **116** company-operated stores, and digital channels. For Q1 2025, principal amount sent increased by **3.7%** to **$5.6 billion**, while total remittances processed decreased by **5.2%** due to a shift in consumer behavior towards fewer, larger transactions - The company is a global omnichannel money remittance service provider, primarily focused on the U.S. to Latin America and Caribbean corridor, with services also to Africa, Asia, and Europe[107](index=107&type=chunk) - Services are available through over **100,000** independent agents, **116** company-operated stores, and digital channels (websites and mobile apps) in over **60** countries[107](index=107&type=chunk)[109](index=109&type=chunk) - Money remittance services to LAC countries are the primary revenue source, generated from consumer fees and foreign exchange gains[108](index=108&type=chunk) Principal Amount Sent and Remittances Processed | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Principal amount sent | $5.6 billion | $5.4 billion (approx.) | | Principal amount sent (YoY change) | +3.7% | - | | Total remittances processed | 12.8 million | 13.5 million (approx.) | | Total remittances processed (YoY change) | -5.2% | - | - The decrease in remittances processed is attributed to a change in consumer behavior with a lower number of money transfers combined with a higher principal sent per transaction, partially offset by increased digital and European subsidiary volume[109](index=109&type=chunk) [Restructuring Costs](index=34&type=section&id=Restructuring%20Costs%20(MD%26A)) The company is executing a restructuring plan for foreign operations and La Nacional, incurring **$0.3 million** in Q1 2025 for workforce reduction. This plan aims to reorganize the workforce, streamline operations, and integrate technology, with an expected annual reduction of approximately **$2.0 million** in compensation and facilities expenses, primarily realized in the second half of 2025 - Restructuring plan for foreign operations and La Nacional aims to reorganize workforce, streamline processes, and integrate technology for efficiency[112](index=112&type=chunk) - Incurred approximately **$0.3 million** in Q1 2025 for workforce reduction, primarily severance payments[112](index=112&type=chunk) - Expected to reduce compensation and facilities expenses by approximately **$2.0 million** annually, with primary realization in H2 2025[114](index=114&type=chunk) [Key Factors and Trends Affecting our Business](index=34&type=section&id=Key%20Factors%20and%20Trends%20Affecting%20our%20Business) The business is influenced by immigration trends, global economic conditions, and competition from new digital platforms. The company is investing significantly in digital market penetration and offerings, which may adversely affect short-term results. Strict legal and regulatory requirements, particularly for anti-money laundering and cybersecurity, continue to increase costs and necessitate ongoing compliance enhancements - Key factors include changes in immigration laws, expansion of digital services, new technology disruption, economic factors (inflation, recession, interest rates), international political factors, and foreign exchange volatility[115](index=115&type=chunk) - The company faces increasing competition from electronic platforms and is making significant investments in digital market penetration, customer acquisition, and enhanced digital offerings, which may adversely affect short-term results[116](index=116&type=chunk) - The market is highly competitive, with large players like Western Union, MoneyGram, Remitly, and Euronet, as well as smaller niche providers[117](index=117&type=chunk) - Business resilience during economic instability is noted, but prolonged market volatility or sustained appreciation of the Mexican peso/Guatemalan quetzal could negatively affect revenues and profitability[118](index=118&type=chunk) - Strict legal and regulatory requirements, including anti-money laundering, cybersecurity, and consumer protection, continue to result in increased costs and require ongoing enhancements to compliance programs[120](index=120&type=chunk)[122](index=122&type=chunk) [How We Assess the Performance of Our Business](index=37&type=section&id=How%20We%20Assess%20the%20Performance%20of%20Our%20Business) The company assesses performance using revenues, service charges, salaries and benefits, other selling, general and administrative expenses, and net income. Non-GAAP measures like Adjusted Net Income, Adjusted Earnings per Share, and Adjusted EBITDA are also used to evaluate core operating results and trends, supplementing GAAP financial statements - Key performance indicators include revenues, service charges from agents and banks, salaries and benefits, other selling, general and administrative expenses, and net income[124](index=124&type=chunk) - Non-GAAP financial measures (Adjusted Net Income, Adjusted EPS, Adjusted EBITDA) are used to evaluate performance by excluding items not indicative of core operating results, such as non-cash compensation and amortization of intangibles[124](index=124&type=chunk)[158](index=158&type=chunk) [Revenues](index=37&type=section&id=Revenues%20(Assessment)) Revenue is primarily driven by transaction volume, with fees varying by location and amount. Foreign exchange gains are generated from currency exchange spreads. Additional revenue comes from technology services, credit/debit card processing, check cashing, maintenance fees, and 'wires-as-a-service' contracts with digital partners - Transaction volume is the primary revenue driver, with fees varying by send/receive locations and amount[125](index=125&type=chunk) - Foreign exchange gains are generated from the difference between the set exchange rate and the wholesale market rate[125](index=125&type=chunk) - Additional revenue sources include technology services, credit/debit card processing, check cashing, maintenance fees, and 'wires-as-a-service' fees from digital partners[125](index=125&type=chunk) [Operating Expenses](index=37&type=section&id=Operating%20Expenses%20(Assessment)) Operating expenses include service charges from agents and banks (commissions, bank fees), salaries and benefits (cash and share-based compensation), other selling, general and administrative expenses (IT, rent, insurance, professional services, marketing), provision for credit losses, restructuring costs, transaction costs, and depreciation and amortization - Service charges from agents and banks include sending/paying agent commissions (approx. **50%** of transaction fee) and bank fees, varying by transaction method and payer organization[126](index=126&type=chunk) - Salaries and benefits cover corporate, sales team, and company-operated store employees, including cash and share-based compensation. Unrecognized share-based compensation is **$16.6 million** over **2.0 years**[127](index=127&type=chunk) - Other selling, general and administrative expenses include fixed overhead, IT, telecommunications, rent, insurance, professional services, non-income taxes, facilities, credit loss provision, selling expenses, and regulatory compliance[128](index=128&type=chunk)[130](index=130&type=chunk) - Restructuring costs are internal and external costs related to workforce reorganization, operational streamlining, and technology integration, primarily severance and legal fees[131](index=131&type=chunk) - Transaction costs are internal and external costs for acquisitions and strategic alternatives, including legal, consulting, accounting, and advisory fees[132](index=132&type=chunk) - Depreciation and amortization include computer equipment, software, and intangible assets (agent relationships, trade names, developed technology)[133](index=133&type=chunk) [Service Charges from Agents and Banks](index=37&type=section&id=Service%20Charges%20from%20Agents%20and%20Banks) Service charges primarily consist of sending and paying agent commissions and bank fees, which vary based on commission percentages, bank fee structures, and transaction methods. These charges also include transaction costs paid to third parties for digital money transfers - Service charges include sending and paying agent commissions (approximately **50%** of transaction fee) and bank fees[126](index=126&type=chunk) - Charges vary based on agent commission percentages, bank/payer fee structures, and consumer's chosen transfer method[126](index=126&type=chunk) - Transaction costs paid to third parties for digital money transfers are also included in service charges[126](index=126&type=chunk) [Salaries and Benefits](index=37&type=section&id=Salaries%20and%20Benefits%20(Assessment)) Salaries and benefits encompass cash and share-based compensation for corporate employees, sales teams, and company-operated store staff. Share-based compensation is expensed straight-line over the vesting period, with **$16.6 million** in unrecognized expense expected over **2.0 years** - Includes cash and share-based compensation for corporate, sales, and company-operated store employees[127](index=127&type=chunk) - Share-based compensation is expensed straight-line over the vesting period[127](index=127&type=chunk) - Approximately **$16.6 million** of unrecognized share-based compensation expense is expected to be recognized over a weighted-average period of **2.0 years**[127](index=127&type=chunk) [Other Selling, General and Administrative](index=37&type=section&id=Other%20Selling,%20General%20and%20Administrative) These expenses cover fixed overhead for operations, including IT, telecommunications, rent, insurance, professional services, non-income taxes, facilities maintenance, provision for credit losses, selling expenses (advertising, digital marketing), public company reporting, and regulatory compliance - Comprises fixed overhead expenses for operations, including IT, telecommunications, rent, insurance, professional services, and facilities maintenance[128](index=128&type=chunk) - Includes selling expenses such as advertising, promotion, and digital marketing to expand customer base and agent network[130](index=130&type=chunk) - Also covers public company reporting requirements and regulatory compliance costs[128](index=128&type=chunk) [Provision for Credit Losses](index=43&type=section&id=Provision%20for%20Credit%20Losses%20(Assessment)) The provision for credit losses increased by **$0.5 million (31.3%)** to **$2.1 million** in Q1 2025, primarily due to a higher average balance of outstanding receivables from sending agents and a slight increase in write-offs Provision for Credit Losses (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Provision for credit losses | $2,066 | $1,595 | | Change (YoY) | +$0.5 million (+31.3%) | - | - Increase primarily due to a higher average balance of outstanding receivable balances from sending agents and a slight increase in write-offs[147](index=147&type=chunk) [Restructuring Costs](index=39&type=section&id=Restructuring%20Costs%20(MD%26A%20Detail)) Restructuring costs are incurred for plans related to foreign operations and La Nacional, encompassing severance payments, asset write-offs, and legal/professional fees, presented separately due to their significance - Costs associated with restructuring plans for foreign operations and La Nacional[131](index=131&type=chunk) - Primarily consist of severance payments, write-off of assets, and legal and professional fees[131](index=131&type=chunk) - Presented separately in the condensed consolidated statements of income due to their significance[131](index=131&type=chunk) [Transaction Costs](index=39&type=section&id=Transaction%20Costs%20(MD%26A%20Detail)) Transaction costs relate to completed and potential acquisitions, as well as the Board's evaluation of strategic alternatives. These include legal, consulting, accounting, and financial advisory fees, and certain incentive bonuses, presented separately due to their significance - Costs associated with completed and potential acquisitions, and evaluation of strategic alternatives[132](index=132&type=chunk) - Primarily consist of legal, consulting, accounting, and financial advisory fees, and certain incentive bonuses[132](index=132&type=chunk) - Presented separately in the condensed consolidated statements of income due to their significance[132](index=132&type=chunk) [Depreciation and Amortization](index=39&type=section&id=Depreciation%20and%20Amortization%20(Assessment)) Depreciation and amortization primarily cover computer equipment, software supporting the technology platform, and intangible assets such as agent relationships, trade names, and developed technology - Largely consists of depreciation of computer equipment and amortization of software for the technology platform[133](index=133&type=chunk) - Includes amortization of intangible assets related to agent relationships, trade names, and developed technology[133](index=133&type=chunk) [Non-Operating Expenses](index=39&type=section&id=Non-Operating%20Expenses%20(Assessment)) Non-operating expenses include interest expense, primarily from the revolving credit facility, and the income tax provision. The income tax provision reflects state taxes, non-deductible expenses, share-based compensation tax expense, and foreign tax rates, with a valuation allowance on certain foreign deferred tax assets - Interest expense primarily relates to the revolving credit facility, with an effective interest rate of **2.57%** for Q1 2025[134](index=134&type=chunk) - Income tax provision includes expected benefits of deferred tax assets and net operating loss carryforwards[135](index=135&type=chunk) - A valuation allowance is recorded on deferred tax assets associated with foreign net operating loss carryforwards[135](index=135&type=chunk) [Interest Expense](index=39&type=section&id=Interest%20Expense%20(Assessment)) Interest expense primarily stems from the revolving credit facility, which had an effective interest rate of **2.57%** for the three months ended March 31, 2025 - Interest expense primarily associated with the revolving credit facility[134](index=134&type=chunk) - Effective interest rate for the revolving credit facility was **2.57%** for Q1 2025[134](index=134&type=chunk) [Income tax provision](index=39&type=section&id=Income%20tax%20provision%20(Assessment)) The income tax provision includes the expected benefit of deferred tax assets and net operating loss carryforwards. A valuation allowance is maintained for foreign net operating loss carryforwards due to a history of taxable losses in those subsidiaries - Includes expected benefit of deferred tax assets and net operating loss carryforwards[135](index=135&type=chunk) - No valuation allowance required for U.S. federal or state deferred tax assets as of March 31, 2025[135](index=135&type=chunk) - Valuation allowance recorded on deferred tax assets associated with foreign net operating loss carryforwards due to historical taxable losses[135](index=135&type=chunk) [Net Income](index=39&type=section&id=Net%20Income%20(Assessment)) Net income is calculated by subtracting both operating and non-operating expenses from total revenues - Net income is derived by subtracting operating and non-operating expenses from revenues[136](index=136&type=chunk) [Earnings per Share](index=39&type=section&id=Earnings%20per%20Share%20(Assessment)) Basic EPS is net income divided by weighted-average common shares outstanding. Diluted EPS adjusts for potential dilution from share-based awards using the treasury stock method, excluding treasury stock from the share count - Basic EPS is net income divided by weighted-average common shares outstanding[137](index=137&type=chunk) - Diluted EPS adjusts basic EPS for assumed issuance of dilutive share-based awards (options, RSUs, RSAs, PSUs) using the treasury stock method[137](index=137&type=chunk) - Treasury stock is excluded from the weighted-average common shares outstanding calculation[137](index=137&type=chunk) [Segments](index=39&type=section&id=Segments%20(Assessment)) The company operates as a single reportable segment, providing money transmittal services primarily between the U.S., Canada, and Europe to Latin America, Africa, Asia, and Europe, through authorized agents, company-operated stores, and digital channels. The CEO and President monitors consolidated operating performance and allocates resources - The business is organized around one reportable segment: money transmittal services[138](index=138&type=chunk) - Services are provided through a network of authorized agents, **116** company-operated stores, and digital channels[138](index=138&type=chunk) - The CEO and President, as the chief operating decision maker, monitors consolidated operating performance and allocates resources[138](index=138&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) For the three months ended March 31, 2025, total revenues decreased by **4.1%** to **$144.3 million**, primarily due to a **5.3%** decline in wire transfer fees. Operating income fell by **28.1%** to **$14.1 million**, and net income decreased by **35.5%** to **$7.8 million**, resulting in a basic EPS of **$0.25**, down from **$0.36** in the prior year Results of Operations Summary (in thousands, except EPS) | Metric (in thousands, except EPS) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total revenues | $144,310 | $150,412 | -4.1% | | Operating income | $14,075 | $19,586 | -28.1% | | Net income | $7,769 | $12,106 | -35.5% | | Basic EPS | $0.25 | $0.36 | -30.6% | | Diluted EPS | $0.25 | $0.35 | -28.6% | [Revenues](index=42&type=section&id=Revenues%20(Results)) Total revenues decreased by **4.1%** to **$144.3 million** in Q1 2025. Wire transfer and money order fees, net, declined by **5.3%** due to lower transaction volume, despite a **3.7%** increase in principal sent. Foreign exchange gain remained stable, while other income increased by **29.0%** due to 'wires-as-a-service' activity and abandoned property fees Revenues by Type (in thousands) | Revenue Type (in thousands) | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Wire transfer and money order fees, net | $120,167 | $126,921 | -5.3% | | Foreign exchange gain, net | $20,181 | $20,346 | -0.8% | | Other income | $3,962 | $3,145 | +26.0% | | Total revenues | $144,310 | $150,412 | -4.1% | - Decrease in wire transfer fees primarily due to lower transaction volume through retail network, attributed to consumer behavior shift towards fewer, higher-principal transactions[140](index=140&type=chunk) - Other income increased due to higher fees from 'wires-as-a-service' relationships and increased base fees on abandoned property money transfers[142](index=142&type=chunk) [Operating Expenses](index=42&type=section&id=Operating%20Expenses%20(Results)) Total operating expenses slightly decreased by **0.5%** to **$130.2 million** in Q1 2025. Service charges from agents and banks decreased by **4.2%** due to lower transaction volume. Salaries and benefits increased by **1.1%** due to merit increases. Other selling, general and administrative expenses rose by **10.0%**, driven by increased advertising and IT expenses. Provision for credit losses increased by **31.3%**, and restructuring and transaction costs were significantly higher Operating Expenses by Type (in thousands) | Expense Type (in thousands) | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Service charges from agents and banks | $93,788 | $97,934 | -4.2% | | Salaries and benefits | $18,288 | $18,106 | +1.1% | | Other selling, general and administrative expenses | $10,989 | $9,953 | +10.4% | | Provision for credit losses | $2,066 | $1,595 | +29.5% | | Restructuring costs | $306 | $0 | N/A | | Transaction costs | $1,169 | $10 | N/A | | Depreciation and amortization | $3,629 | $3,228 | +12.4% | | Total operating expenses | $130,235 | $130,826 | -0.5% | - Other selling, general and administrative expenses increased due to **$0.7 million** in advertising for digital channels and **$0.5 million** in higher IT expenses[146](index=146&type=chunk)[156](index=156&type=chunk) - Depreciation and amortization increased due to additional software development and computer equipment for digital expansion, partially offset by lower amortization of trade names and agent relationships[149](index=149&type=chunk) [Non-Operating Expenses](index=43&type=section&id=Non-Operating%20Expenses%20(Results)) Interest expense remained flat at **$2.7 million** in Q1 2025. The income tax provision decreased by **$1.2 million** to **$3.6 million**, primarily due to lower income before taxes Non-Operating Expenses (in thousands) | Expense Type (in thousands) | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Interest expense | $2,700 | $2,702 | -0.1% | | Income tax provision | $3,606 | $4,778 | -24.5% | - Decrease in income tax provision mainly attributable to a decrease in income before taxes[151](index=151&type=chunk) [Net Income](index=43&type=section&id=Net%20Income%20(Results)) Net income for Q1 2025 was **$7.8 million**, a decrease of **$4.3 million (35.5%)** compared to **$12.1 million** in Q1 2024, reflecting the combined impact of decreased revenues and increased operating expenses Net Income (in thousands) | Metric (in thousands) | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Income | $7,769 | $12,106 | -35.8% | - The decrease in net income is due to the factors discussed in revenues and operating expenses[152](index=152&type=chunk) [Earnings Per Share](index=43&type=section&id=Earnings%20Per%20Share%20(Results)) Basic EPS decreased by **$0.11 (30.6%)** to **$0.25**, and diluted EPS decreased by **$0.10 (28.6%)** to **$0.25** in Q1 2025. This decline primarily reflects the decrease in net income, partially offset by a reduced share count due to stock repurchases Earnings Per Share | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Basic EPS | $0.25 | $0.36 | -30.6% | | Diluted EPS | $0.25 | $0.35 | -28.6% | - The decrease in EPS reflects lower net income and a reduced share count from stock repurchases[154](index=154&type=chunk) [Non-GAAP Financial Measures](index=43&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted Net Income, Adjusted Earnings per Share, and Adjusted EBITDA as non-GAAP measures to evaluate performance by excluding certain non-core or volatile items. Adjusted Net Income decreased by **25.9%** to **$10.9 million**, and Adjusted EBITDA decreased by **15.0%** to **$21.6 million** in Q1 2025, primarily due to lower net income - Non-GAAP measures (Adjusted Net Income, Adjusted EPS, Adjusted EBITDA) are used to evaluate performance by excluding non-core operating results and items that vary widely, such as non-cash compensation and amortization of intangibles[158](index=158&type=chunk) - Adjusted EBITDA is a primary metric for management, but it has limitations, such as not reflecting interest expense, income tax, or asset replacement costs[160](index=160&type=chunk)[161](index=161&type=chunk) [Adjusted Net Income and Adjusted Earnings per Share](index=45&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Earnings%20per%20Share) Adjusted Net Income decreased by **25.9%** to **$10.9 million** in Q1 2025, and Adjusted Basic EPS decreased by **18.2%** to **$0.36**. This decline was primarily due to lower Net Income, partially offset by the net effect of adjusting items and a lower weighted-average share count from repurchases - Adjusted Net Income is Net Income adjusted for non-cash amortization of intangibles, non-cash compensation, and other non-core items[162](index=162&type=chunk) Adjusted Net Income and EPS (in thousands, except per share data) | Metric (in thousands, except per share data) | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Income | $7,769 | $12,106 | -35.8% | | Adjusted Net Income | $10,928 | $14,671 | -25.5% | | Adjusted Earnings per Share - Basic | $0.36 | $0.44 | -18.2% | | Adjusted Earnings per Share - Diluted | $0.35 | $0.43 | -18.6% | - The decrease in Adjusted Net Income and Adjusted EPS was primarily due to the decrease in Net Income, partially offset by a lower weighted average common shares total due to stock repurchases and the net effect of adjusting items[164](index=164&type=chunk)[169](index=169&type=chunk)[171](index=171&type=chunk) [Adjusted EBITDA](index=47&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA decreased by **15.0%** to **$21.6 million** in Q1 2025, primarily driven by the decrease in Net Income, partially offset by the net effect of adjusting items such as interest, taxes, depreciation, amortization, share-based compensation, restructuring, and transaction costs Adjusted EBITDA (in thousands) | Metric (in thousands) | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Income | $7,769 | $12,106 | -35.8% | | EBITDA | $17,704 | $22,814 | -22.4% | | Adjusted EBITDA | $21,618 | $25,414 | -15.0% | - Adjusted EBITDA decreased primarily due to the decrease in Net Income, partially offset by the higher net effect of adjusting items (interest expense, income tax provision, depreciation and amortization, share-based compensation, restructuring costs, transaction costs, and other charges)[174](index=174&type=chunk)[175](index=175&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily supported by cash from operations and its **$425.0 million** revolving credit facility. As of March 31, 2025, **$147.4 million** was outstanding on the facility, with **$377.6 million** available. The company repurchased **$5.0 million** of common stock in Q1 2025, with **$59.5 million** remaining under the program. Operating cash flows decreased, while investing and financing cash outflows decreased significantly - Principal liquidity sources are cash from operating activities and borrowings under the revolving credit facility[178](index=178&type=chunk) - The company believes current cash, projected operating cash flows, and the revolving credit facility are sufficient to fund short and long-term liquidity needs[179](index=179&type=chunk) [Credit Agreement](index=48&type=section&id=Credit%20Agreement%20(Liquidity)) The Second Amended and Restated Credit Agreement provides a **$425.0 million** multi-currency revolving credit facility, maturing August 29, 2029. As of March 31, 2025, **$147.4 million** was outstanding, with **$377.6 million** available. The effective interest rate for Q1 2025 was **2.57%**. The company was in compliance with all covenants, including a minimum interest coverage ratio of **3.00:1.00** and a maximum consolidated leverage ratio of **3.50:1.00** - The Second A&R Credit Agreement provides a **$425.0 million** multi-currency revolving credit facility, maturing August 29, 2029[180](index=180&type=chunk) Revolving Credit Facility Details | Metric | March 31, 2025 | | :--- | :--- | | Outstanding on revolving credit facility | $147.4 million | | Additional borrowings available | $377.6 million | | Effective interest rate (Q1 2025) | 2.57% | - The company was in compliance with all covenants, including a quarterly minimum interest coverage ratio of **3.00:1.00** and a maximum consolidated leverage ratio of **3.50:1.00**[187](index=187&type=chunk)[188](index=188&type=chunk) [Repurchase Program](index=50&type=section&id=Repurchase%

Core Viewpoint - International Money Express (IMXI) reported a decline in revenue and earnings per share (EPS) for the quarter ended March 2025, missing both revenue and EPS estimates [1][3]. Financial Performance - Revenue for the quarter was $144.31 million, down 4.1% year-over-year, and below the Zacks Consensus Estimate of $147 million, resulting in a surprise of -1.83% [1]. - EPS was reported at $0.35, a decrease from $0.43 in the same quarter last year, with an EPS surprise of -14.63% against the consensus estimate of $0.41 [1]. Key Metrics - Other income was reported at $3.96 million, exceeding the average estimate of $2.47 million by three analysts, reflecting a year-over-year increase of +26% [4]. - Foreign exchange gain, net, was $20.18 million, slightly below the average estimate of $21.20 million, showing a year-over-year decline of -0.8% [4]. - Revenue from wire transfer and money order fees, net, was $120.17 million, also below the average estimate of $125.87 million, representing a year-over-year decrease of -5.3% [4]. Stock Performance - Shares of International Money Express have returned +8.1% over the past month, compared to a +10.6% change in the Zacks S&P 500 composite [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3].

International Money Express (IMXI) came out with quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -14.63%. A quarter ago, it was expected that this company would post earnings of $0.59 per share when it actually produced earnings of $0.57, delivering a surprise of -3.39%.Over the last four quarters, ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $144.3 million, down from $150.4 million in the same period last year [19] - Net income was $7.8 million, with adjusted EBITDA at $21.6 million and adjusted diluted EPS at $0.35 per share, all down year over year [10][24] - Total principal amount sent increased by 4% year over year, indicating underlying strength despite transaction volume decline [10][19] Business Line Data and Key Metrics Changes - Digital transactions grew nearly 70% year over year, with expectations of further growth to about 80% in April [13][31] - Retail transactions, however, saw a decline of over 5%, with the average transaction amount increasing but fewer transactions overall [19][20] - The company focused on optimizing its retail operations, improving transaction processing time from 20 seconds to 9 seconds [12] Market Data and Key Metrics Changes - Total volume sent increased in four out of five top markets, but transaction counts decreased in the same markets [11] - The company noted a shift in consumer behavior, with larger amounts being sent less frequently, impacting transaction growth and fee income [8][20] Company Strategy and Development Direction - The company is investing heavily in its digital business as part of its omnichannel strategy, viewing it as critical for future growth [13][15] - Strategic partnerships and targeted investments in retail are being prioritized to enhance profitability and operational efficiency [11][12] - The company is also focused on maintaining strong cash flow and profitability while navigating a challenging macroeconomic environment [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the remittance market to Latin America, despite current challenges [7][10] - The company is revising its full-year guidance due to increased uncertainty and volatility in market conditions [25] - Management believes that the retail market will recover over time, while digital growth is expected to continue at high rates [33][37] Other Important Information - The company ended the quarter with $151.8 million in cash and generated over $10 million in free cash flow [17][24] - The company has initiated a restructuring process to achieve approximately $2 million in annual savings [16] Q&A Session Summary Question: Near term trends and retail vs digital behavior - Management noted that digital growth is significantly outpacing retail, with digital transactions growing at 70% year over year [31][32] Question: Revised full-year guidance and revenue trajectory - Management indicated that while digital investments may not immediately improve margins, they are expected to drive revenue growth [40][41] Question: Retention metrics and digital performance - Retail customer acquisition costs are approximately $2,500 per retailer, with payback expected in about seven months [50] Question: Monthly cadence and retail foot traffic stabilization - Management does not typically provide monthly comparisons due to variability but noted that February had a downturn compared to January [58][60] Question: Digital growth and Amigo Paizano's impact - Management clarified that the 70% digital growth was organic and not aided by Amigo Paizano [108]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $144.3 million, down from $150.4 million in the same period last year [19] - Net income was $7.8 million, with adjusted EBITDA at $21.6 million and adjusted diluted EPS at $0.35 per share, all showing year-over-year declines [10][24] - Total volume sent increased by 4%, while total transactions sent decreased by over 5% year-over-year [19][20] Business Line Data and Key Metrics Changes - Retail transactions remain the foundation of the business, but the number of transactions decreased while the principal amount sent increased [10][11] - Digital transactions grew nearly 70% year-over-year, indicating strong growth in the digital segment [13][21] - The company invested more in digital marketing than ever before, which is expected to continue driving growth [13][15] Market Data and Key Metrics Changes - Four out of five top markets saw a decrease in transactions sent, despite total volume sent increasing significantly [11][19] - The overall market for remittances to Latin America remains resilient, but consumer behavior is shifting towards sending larger amounts less frequently [8][20] Company Strategy and Development Direction - The company is focused on maintaining profitability while strategically investing in growth, particularly in the digital business [27] - The integration of La Nationale agents onto the Intermex tech platform is expected to streamline operations and reduce costs [16] - The company is committed to enhancing its omnichannel strategy, with digital being a critical component for future growth [13][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic, political, and immigration backdrop affecting the business model [7] - There is a belief that the current consumer behavior shift is not long-term, and the retail market will recover [34][106] - The company is revising its full-year guidance due to increased uncertainty and volatility in market conditions [25][26] Other Important Information - The company ended the quarter with $151.8 million in cash and generated over $10 million in free cash flow [17][24] - Total debt decreased to $147.4 million from $156.6 million at year-end [24] Q&A Session Summary Question: Near-term trends and behavior on retail vs digital side - Management noted that digital transactions grew much faster than retail, with digital growth at 70% year-over-year and increasing to 80% in April [32][34] Question: Revised full-year guidance and revenue trajectory - Management indicated that while revenue growth may improve, margins may not see significant improvement due to ongoing investments in digital [40][44] Question: Retention metrics and digital growth - Retail customer acquisition costs are about $2,500 per retailer, with payback in about seven months, while digital retention is slightly better than the prior quarter [50][55] Question: Monthly cadence and retail foot traffic stabilization - Management explained that they do not typically analyze monthly data due to variability but noted that retail performance is relatively stable [60][62] Question: Digital investment strategy - The company is committed to continuing its digital investments, viewing it as essential for future growth [71][72] Question: Impact of larger principal amounts on quarter performance - Management confirmed that if transactions had been at more normalized amounts, revenue could have been $7 million to $10 million higher [82]