GSR II METEORA A(GSRM) - 2025 Q2 - Quarterly Results

Financial Performance Overview Bitcoin Depot reported strong Q2 2025 growth with increased revenue and significant improvements in net income and Adjusted EBITDA, driven by operational leverage and strategic financial management Second Quarter 2025 Financial Highlights Bitcoin Depot reported strong year-over-year growth in the second quarter of 2025, with a 6% increase in revenue to $172.1 million. Profitability saw significant improvement, as net income surged by 183% to $12.3 million and Adjusted EBITDA grew by 46% to $18.5 million Q2 2025 Key Financial Metrics (Year-over-Year) | Metric | Q2 2025 | Growth vs Q2 2024 | | :--- | :--- | :--- | | Revenue | $172.1 Million | 6% ↑ | | Net Income | $12.3 Million | 183% ↑ | | Gross Profit | $30.9 Million | 32% ↑ | | Adjusted EBITDA | $18.5 Million | 46% ↑ | Management Commentary Management attributes the strong quarterly performance to operating leverage from kiosk expansion, higher transaction volumes, and disciplined cost management. The company has improved profitability, strengthened its balance sheet with nearly $60 million in cash and digital assets, and simplified its corporate structure to enhance transparency and shareholder alignment. Strategic initiatives include continued Bitcoin accumulation for its treasury - The company's performance demonstrates operating leverage driven by kiosk expansion, higher transaction volumes, and disciplined cost management[2] - Bitcoin Depot holds nearly $60 million in cash and digital assets, positioning it for U.S. and international growth opportunities[2] - The company eliminated its UP-C corporate structure to simplify governance and improve transparency[2] - The company continued to strategically add Bitcoin to its treasury as part of its capital allocation strategy[2] Detailed Financial Results The company achieved significant revenue growth and profitability improvements in Q2 2025, alongside a strengthened balance sheet and robust cash flow from operations Second Quarter 2025 Financial Performance In Q2 2025, revenue grew 6% to $172.1 million, driven by more kiosks and larger transaction sizes. Operating expenses fell 9% to $17.0 million due to cost optimization. This led to a 183% increase in net income to $12.3 million and a 32% rise in gross profit to $30.9 million, with gross margin expanding by 360 basis points to 17.9% Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $172.1M | $163.1M | +6% | | Operating Expenses | $17.0M | $18.8M | -9% | | Net Income | $12.3M | $4.4M | +183% | | Gross Profit | $30.9M | $23.4M | +32% | | Gross Profit Margin | 17.9% | 14.3% | +360 bps | - Net income attributable to common shareholders was $6.1 million, or $0.16 per share, a significant improvement from a net loss of $2.6 million, or ($0.13) per share, in Q2 2024[5] - Adjusted EBITDA increased 46% to $18.5 million, primarily due to higher revenue and gross profit[7] Balance Sheet and Cash Flow As of June 30, 2025, the company's financial position strengthened, with cash, cash equivalents, and cryptocurrencies totaling $59.6 million, up from $31.0 million at year-end 2024. The company continued to invest in Bitcoin, holding 100.35 BTC. Net cash from operations for the first six months of 2025 more than doubled to $26.4 million compared to the same period in 2024 Key Balance Sheet and Cash Flow Items | Metric | June 30, 2025 | Dec 31, 2024 / H1 2024 | Change | | :--- | :--- | :--- | :--- | | Cash, equivalents, & crypto | $59.6M | $31.0M | +$28.6M | | Bitcoin held for investment | 100.35 BTC | - | +6.00 BTC in Q2 | | Net cash from operations (H1) | $26.4M | $11.5M | +129.6% | Business Outlook The company anticipates continued high-single-digit revenue growth and a substantial increase in Adjusted EBITDA for the third quarter of 2025 Third Quarter 2025 Outlook The company anticipates continued growth in the third quarter of 2025, forecasting high-single-digit percentage revenue growth and a 20% to 30% increase in Adjusted EBITDA compared to the third quarter of 2024 - Q3 2025 revenue is expected to grow by high-single digits year-over-year[9] - Q3 2025 Adjusted EBITDA is expected to be 20% to 30% above the prior year's quarter[9] Financial Statements The financial statements reflect significant improvements in net income and cash flow from operations, alongside a strengthened balance sheet with increased assets and positive stockholders' equity Consolidated Statements of (Loss) Income The consolidated statements of income show a significant increase in profitability for the three and six months ended June 30, 2025. For the second quarter, net income rose to $12.3 million from $4.4 million in the prior year. For the six-month period, net income was $24.5 million, a substantial increase from $122 thousand in the same period of 2024 Consolidated Statements of (Loss) Income (Unaudited, in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | 2025 | 2024 | | Revenue | $172,108 | $163,066 | $336,334 | $301,605 | | Cost of revenue (excl. D&A) | 139,382 | 136,708 | 270,473 | 257,995 | | Total operating expenses | 16,978 | 18,754 | 32,315 | 35,307 | | Income from operations | 15,748 | 7,604 | 33,546 | 8,303 | | Other (expense) income, net | (2,263) | (2,984) | (6,433) | (8,049) | | Income before taxes | 13,485 | 4,620 | 27,113 | 254 | | Income tax (expense) | (1,162) | (270) | (2,614) | (132) | | Net income | $12,323 | $4,350 | $24,499 | $122 | | Net income (loss) attributable to common stockholders | $6,070 | $(2,561) | $10,264 | $(4,099) | | Net income per share - basic and diluted | $0.16 | $(0.13) | $0.35 | $(0.23) | Consolidated Balance Sheets The balance sheet as of June 30, 2025, shows total assets of $109.1 million, an increase from $80.1 million at the end of 2024. This was driven by a significant rise in cash and cryptocurrencies. Total liabilities increased to $104.4 million from $96.6 million, while total stockholders' equity turned positive to $4.7 million from a deficit of $16.5 million Consolidated Balance Sheets (Unaudited, in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $62,691 | $34,333 | | Cash and cash equivalents | $48,038 | $29,472 | | Cryptocurrencies | $11,563 | $1,510 | | Total property and equipment, net | $24,541 | $26,847 | | Total assets | $109,053 | $80,104 | | Total current liabilities | $44,543 | $40,629 | | Total Liabilities | $104,360 | $96,590 | | Total Stockholders' Equity (Deficit) | $4,693 | $(16,486) | | Total Liabilities and Stockholders' Equity | $109,053 | $80,104 | Consolidated Statements of Cash Flows For the first six months of 2025, net cash provided by operating activities was $26.4 million, more than double the $11.5 million from the same period in 2024. Net cash used in investing activities was $9.2 million, primarily for BTC acquisitions. Net cash provided by financing activities was $1.4 million. The company ended the period with $48.0 million in cash and cash equivalents Consolidated Statements of Cash Flows (Unaudited, in thousands) | | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net Cash Flows Provided by Operations | $26,403 | $11,475 | | Net Cash Flows Used In Investing Activities | $(9,159) | $(3,190) | | Net Cash Flows Provided by Financing Activities | $1,436 | $5,851 | | Net change in cash and cash equivalents | $18,566 | $14,183 | | Cash and cash equivalents - beginning of period | $29,472 | $29,759 | | Cash and cash equivalents - end of period | $48,038 | $43,942 | Non-GAAP Financial Measures The company utilizes non-GAAP measures like Adjusted EBITDA and Adjusted Gross Profit to provide clearer insights into core operational performance and profitability, with detailed reconciliations provided Explanation of Non-GAAP Measures Bitcoin Depot uses non-GAAP measures like Adjusted EBITDA and Adjusted Gross Profit to supplement its GAAP results. The company believes these metrics offer a better understanding of its core operational performance by excluding non-cash items, unpredictable expenses, and non-recurring costs, thus facilitating period-to-period comparisons - Adjusted EBITDA is defined as net income before interest, taxes, depreciation, amortization, non-recurring expenses, share-based compensation, and certain financing costs[26] - Adjusted Gross Profit is defined as revenue less cost of revenue, with depreciation and amortization added back[26] - Management uses these non-GAAP measures internally for operating decisions, performance evaluation, and financial planning[26] Reconciliation of Net (loss) income to Adjusted EBITDA For Q2 2025, the company reconciled a net income of $12.3 million to an Adjusted EBITDA of $18.5 million. This compares to a net income of $4.4 million and an Adjusted EBITDA of $12.7 million in Q2 2024, representing a 46% increase in Adjusted EBITDA. The Adjusted EBITDA margin improved to 10.8% from 7.8% Reconciliation of Net Income to Adjusted EBITDA (Unaudited, in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | (in thousands) | 2025 | 2024 | 2025 | 2024 | | Net income | $12,323 | $4,350 | $24,499 | $122 | | Interest expense | 4,726 | 2,880 | 7,794 | 7,824 | | Income tax expense | 1,162 | 270 | 2,614 | 132 | | Depreciation and amortization | 1,869 | 2,992 | 3,766 | 5,939 | | Unrealized loss on crypto | (2,315) | — | (1,221) | — | | Non-recurring expenses | 43 | 444 | 282 | 907 | | Share-based compensation | 704 | 1,728 | 1,072 | 2,625 | | Adjusted EBITDA | $18,512 | $12,664 | $38,806 | $17,549 | | Adjusted EBITDA margin | 10.8% | 7.8% | 11.5% | 5.8% | Reconciliation of revenue to Adjusted Gross Profit The company reconciled its GAAP Gross Profit of $30.9 million to an Adjusted Gross Profit of $32.7 million for Q2 2025. This resulted in an Adjusted Gross Profit Margin of 19.0%, up from 16.2% in the prior-year quarter, highlighting improved profitability at the gross level when excluding depreciation Reconciliation of Revenue to Adjusted Gross Profit (Unaudited, in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | (in thousands) | 2025 | 2024 | 2025 | 2024 | | Revenue | $172,108 | $163,066 | $336,334 | $301,605 | | Gross Profit | $30,864 | $23,382 | $62,108 | $37,753 | | Adjustments (D&A) | $1,862 | $2,976 | $3,753 | $5,857 | | Adjusted Gross Profit | $32,726 | $26,358 | $65,861 | $43,610 | | Gross Profit Margin | 17.9% | 14.3% | 18.5% | 12.5% | | Adjusted Gross Profit Margin | 19.0% | 16.2% | 19.6% | 14.5% | Other Information This section provides details on the upcoming earnings call, an overview of Bitcoin Depot's business, and a cautionary statement regarding forward-looking information Conference Call Information Bitcoin Depot will host a conference call and webcast on August 12, 2025, at 10:00 a.m. Eastern time to discuss its second-quarter financial results. The release provides toll-free and toll numbers, a conference ID, and a webcast link for participation, along with details for a replay available until August 19, 2025 - A conference call to discuss Q2 2025 results is scheduled for Tuesday, August 12, 2025, at 10:00 a.m. ET[10] - Dial-in and webcast details are provided for live participation, and a replay will be available through August 19, 2025[10][11] About Bitcoin Depot Founded in 2016, Bitcoin Depot Inc. (Nasdaq: BTM) aims to connect cash-based consumers to the digital financial system. It is the largest Bitcoin ATM operator in North America, with over 8,800 kiosk locations as of June 2025, allowing users to convert cash into Bitcoin - Bitcoin Depot's mission is to provide simple and intuitive means for converting cash into Bitcoin[12] - The company has the largest market share in North America with over 8,800 kiosk locations as of June 2025[12] Cautionary Statement Regarding Forward-Looking Statements This section serves as a legal disclaimer, warning that statements about future plans, strategies, and financial performance are forward-looking and not guarantees of future results. These statements are based on current management beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are based on management's current beliefs and are not guarantees of future performance[13] - Actual results may differ due to risks such as market conditions, regulatory changes, competition, and other factors detailed in SEC filings[14] - The company cautions readers not to place undue reliance on these statements and undertakes no obligation to update them[15]