Bitcoin Depot Set to Report Q2 Earnings: Buy, Sell or Hold the Stock?

Core Viewpoint - Bitcoin Depot, Inc. (BTM) is set to release its second-quarter 2025 results on August 12, with expectations of revenue growth driven by rising Bitcoin prices and kiosk expansion [1][4][21] Financial Performance - In the last reported quarter, BTM's earnings exceeded the Zacks Consensus Estimate, attributed to higher revenues and lower operating expenses, although increased other expenses posed a challenge [1][2] - The Zacks Consensus Estimate for quarterly sales is $170.31 million, indicating a 4.4% year-over-year improvement, while earnings are expected to be 17 cents, reflecting a 230.8% increase from the previous year [2][8] Revenue Drivers - The surge in Bitcoin prices during the second quarter is expected to significantly boost BTM's revenues, particularly from its Kiosks segment, as investors sought to capitalize on potential returns [4][6] - BTM's acquisition of Pelicoin, LLC, is anticipated to enhance its market presence and contribute positively to revenue growth [6][7] Expense Considerations - Total operating expenses are likely to remain high due to ongoing kiosk network expansion, customer support improvements, and regulatory compliance efforts [7] - Integration-related charges from the Pelicoin acquisition may also impact expenses during the quarter [7] Stock Performance - BTM shares experienced a remarkable increase of 257% in Q2 2025, outperforming the industry average rise of 16.1% and key peers like Coinbase and BTCS [10][8] - Currently, BTM is trading at a forward price/sales ratio of 0.5X, which is below the industry average, suggesting it may be undervalued compared to peers [14][16] Investment Outlook - Bitcoin Depot is positioned for growth due to its leadership in BTM kiosks and the expansion of BDCheckout, alongside favorable regulatory developments and increasing interest in cryptocurrencies [17][19] - The company has a solid balance sheet, allowing for potential share repurchase plans, although it does not pay dividends as it focuses on reinvestment [19][21]