Financial Performance - As of December 31, 2025, the company generated approximately $614.9 million in revenue, a 7.1% increase from $573.7 million in 2024, with a net income of $4.7 million and an Adjusted EBITDA of $56.4 million[29]. - For the years ended December 31, 2025 and 2024, the company generated revenue of approximately $614.9 million and $573.7 million, respectively, with gross profit of $113.3 million and $81.5 million[57]. - The company’s gross profit margin for the year ended December 31, 2025, was 17.2%, an increase from 15.9% in 2024[29]. - The company has experienced seasonality in revenue, with lower activity in the fourth quarter due to public holidays[93]. - The company has successfully managed inflationary cost increases through pricing, productivity, and cost-cutting initiatives[93]. User Transactions and Growth - The company completed over 4.0 million user transactions from inception in July 2016 to December 31, 2025, totaling approximately $3.4 billion in transaction value[29]. - The company has an average of approximately 16,602 new users per quarter, defined as users completing their first transaction during that period[29]. - Bitcoin represents 99% of the total transaction volume for the year ended December 31, 2025[477]. - The company has launched BDCheckout, which allows users to load cash into their accounts at retail locations, diversifying revenue streams and increasing transaction volumes[59]. Market Presence and Expansion - The company operates approximately 9,700 kiosks across 48 U.S. states, 10 Canadian provinces, 6 Australian states, and Hong Kong, addressing approximately 69% of the U.S. population[30][49]. - The company holds a market share of approximately 23% in North America as of December 31, 2025, making it the largest BTM operator in the region[49]. - The total number of BTMs deployed globally grew from approximately 1,000 to 40,000 from January 1, 2017, to December 31, 2025, representing a CAGR of approximately 42%[43]. - The company has signed a master placement agreement with EG America LLC to install BTMs in approximately 900+ locations, marking a significant expansion[60]. - The company intends to expand into the state of New York, estimating the market could support thousands of kiosks based on comparisons with other states[56]. - The company completed the acquisition of Instant Coin Bank, further consolidating its presence in Texas and Oklahoma, reinforcing its leading market position[64]. Compliance and Regulatory Environment - The company has invested in robust compliance procedures, requiring customer identification for transactions, making it one of the few operators in the industry to implement such standards[52]. - The company is subject to various anti-money laundering laws and has implemented a compliance program to prevent illicit activities[94]. - Arizona's new Cryptocurrency Kiosk License Fraud Prevention law mandates a 10-day introductory period for new customers and daily transaction limits of $2,000 for new customers[103]. - Arkansas's Money Transmission Kiosk Act requires a fee cap of the greater of $5 or 18% and daily transaction limits of $2,000 for new customers[104]. - California's Digital Financial Assets Law limits charges to the greater of $5 or 15% of the transaction amount and requires written disclosures prior to transactions[106]. - Connecticut's Act Concerning Digital Assets imposes a transaction limit of $2,000 for new customers and caps fees at 15%[111]. - Illinois SB 2319 mandates a fee cap of 18% and daily transaction limits of $2,500 for new customers and $10,500 for existing customers[113]. - Iowa Code § 533C.1004 imposes a fee cap of the greater of $5 or 15% and a daily transaction limit of $1,000 for all customers, with an aggregate limit of $10,000 for new customers in their first 30 days[114]. - Louisiana H 483 requires a daily transaction limit of $3,000 and a 72-hour delay in transaction processing, allowing full refunds within this period without proof of fraud[115]. - Maine's legislation mandates a fee cap of the greater of $5 or 3% and a daily transaction limit of $1,000, with full refunds for fraudulent transactions within 90 days of the first kiosk transaction[116]. - Maryland S 305 establishes daily transaction limits of $2,000 for new customers and $10,500 for existing customers, with mandatory refunds for verified fraudulent transactions[117][118]. - Nebraska's LB 609 sets a transaction limit of $2,000 for new customers and $10,500 for existing customers, with an 18% fee cap and full refunds for new customers within their first 14 days[121]. - North Dakota H 1447 requires a daily transaction limit of $2,000 for all customers, focusing on record-keeping through mandatory receipts[122][123]. - Oklahoma S 1083 imposes a fee cap of 15% and a daily transaction limit of $2,000 for new customers, with full refunds for fraudulent transactions within the first 72 hours[124]. - Rhode Island SB 16 mandates daily transaction limits of $2,000 for new customers and $5,000 for existing customers, with full refunds for fraudulent transactions within the first 30 days[125][126]. - Vermont H.137 establishes a fee cap of the greater of $5 or 15% and daily transaction limits of $2,000 for new customers and $5,000 for existing customers, with full refunds for fraud reported within 90 days[127][128]. Competition and Market Dynamics - The company faces competition from traditional financial institutions, fintech companies, and digital payment firms[481]. - The company anticipates that competition will intensify as new entrants and existing competitors enhance their offerings[481]. - The digital financial system is characterized by healthy competition and rapid innovation, with new products frequently introduced[479]. - The adoption of cryptocurrency is expected to grow, expanding the company's addressable market[477]. - The company must continue to offer competitive features and functionalities to stay relevant in the evolving market[481]. Operational Insights - The company has a significant reliance on Circle K, which represented approximately 18% and 23% of total revenues for the years ended December 31, 2025 and 2024, respectively[76]. - The company has a sophisticated Bitcoin management process, maintaining a balance of less than $1.0 million in hot wallets to manage volatility[54]. - The company typically holds less than $2.0 million in Bitcoin in its hot wallets to fulfill user orders while replenishing through liquidity providers[88]. - The company has lease commitments to acquire all kiosks for a bargain purchase option at the end of the lease term as of December 31, 2025[84]. - As of December 31, 2025, the company employed 135 full-time employees, with no labor union representation[89]. - The company is exposed to currency fluctuations, but transaction gains and losses were insignificant for the years ended December 31, 2024, and 2025[475]. - The cost of new kiosks may be significantly higher due to inflation, supply constraints, and labor shortages[478].
GSR II METEORA A(GSRM) - 2025 Q4 - Annual Report