EXODUS Q3 2026 EARNINGS WEBCAST - EXODUS MOVEMENT INC

Financial Performance:

• Q3 2026 revenue reached $32.5 million, a 24% increase sequentially from Q2 ($26.2M) and up from $30.3 million year-over-year.
• Revenue mix shifted to $21.6 million from digital asset services and $10.9 million from payments, indicating growing recurring revenue streams.
• Exchange provider volume averaged $1.1 billion monthly in Q3, with Q3 total exchange volume slightly below Q2 but showing a 28% sequential growth trend by September.
• Payments transaction volume hit approximately $1 billion in Q3 (up from $600 million in Q3 2025), with total active cards reaching ~1.6 million by Q4.
• Net loss for the quarter was $8.3 million ($0.27 per share); Adjusted EBITDA loss narrowed to $3.9 million from $6.7 million in Q2.
• Q3 Adjusted EBITDA loss was front-loaded, improving significantly by September as integration synergies and cost reductions took effect.
• Cash position: $9.6 million in cash/cash equivalents, $54.3 million in restricted cash, $6.6 billion in stablecoins, and $25.3 billion in digital assets; zero debt on the balance sheet.
• Headcount reduced from 326 to 214 (post-acquisition), achieving $10–13 million in annualized savings with a goal to reduce costs by ~$30 million annually by 2027.

Guidance and Future Outlook:

• Management anticipates meaningful overall revenue growth in 2027 driven by stabilizing crypto markets and expanded payments activity.
• Full year 2027 guidance implies further EBITDA improvement, with Q4 expected to show significant gains and monthly EBITDA losses targeted below $1 million by year-end.
• Strategic focus is shifting toward "agentic commerce," positioning the platform to facilitate payments by AI agents within defined budgets and permissions.
• 2027 objectives include expanding distribution for ExoCash, launching branded stablecoin capabilities for enterprise clients, and completing the integration of Monovate.
• Management expects to return to growth spending in the new year, offsetting remaining contract-driven efficiencies.
• Long-term goal is to serve as core infrastructure for bridging traditional finance and on-chain activities, targeting trillions in market volume.

Business Segments and Product Lines:

• ExoSuite: A modular platform combining wallet tech, swaps, card issuance, payment processing, and stablecoin services (ExoCash) to allow enterprises to build embedded financial products.
• ExoCash: U.S. dollar-backed stablecoin issued by MoonPay; primary near-term priority is expanding distribution within the wallet and enabling enterprise branded stablecoin issuance.
• Payments: Restarted U.S. card issuance via new partnership; seeking additional U.S. partners and awaiting regulatory approval in Europe for the Tixi Pay acquisition.
• Monovate: Integration finalized; reorganized into a distinct enterprise division focusing on bespoke B2B solutions like virtual card issuance for supply chain payments.
• Exodus Wallet: Central consumer hub with ~1.4 million monthly active users; roadmap includes integrating tokenized securities (Solana-based) and allowing direct spending of non-stable assets (e.g., BTC, XRP) via Visa/MasterCard rails.
• AI Agent Infrastructure: Launching "AgentKit" features to allow AI agents to hold wallets, claim stablecoins, and execute payments under strict consumer-defined guardrails.

Market and Competitive Landscape:

• Identified a growing market shift where "agentic commerce" and AI agents will drive demand for programmable payment rails and stablecoins.
• Competitors are investing billions to bridge fiat and on-chain finance, but Exodus claims a unique position by offering the full stack (wallet, stablecoin, swaps, card issuance, and settlement) in one platform.
• Stablecoin transaction volume reportedly exceeded Visa and Mastercard volumes in a recent 12-month period, highlighting the sector's explosive growth.
• Global fintech companies face fragmentation in tech providers and regulatory licenses; Exodus offers a consolidated solution to reduce integration complexity and time-to-market.
• UFC partnership leveraged for consumer acquisition (900M fan base) and hospitality experiences, though broader conversion results are still being built.

Risks and Challenges:

• Regulatory Uncertainty: Acquisition of Tixi Pay in Latvia is pending Bank of Latvia approval for change of control and business plan update; card issuance in Europe remains paused.
• Execution Risks: Progress depends on partner readiness, regulatory approvals, and successful integration of the Monovate business.
• Market Volatility: Digital asset services revenue remains sensitive to crypto market activity, though Q3 showed signs of stabilization.
• Customer Retention: Managing churn risks while card issuance in the U.S. was temporarily suspended; however, active programs and existing customer base remained steady.
• Adoption Lag: Early stage of "agentic commerce" market; success depends on mass adoption of AI agents for financial transactions.

Management Commentary and Tone:

• Tone was confident yet cautious, emphasizing "execution" and "discipline" as the primary metrics for success.
• Leadership described Q3 as a transition from strategic vision to operational execution, focusing on restoring payment capabilities and simplifying the org structure.
• Management expressed strong conviction in the "agentic wave" and the necessity of stablecoins as the underlying currency for AI-to-business commerce.
• CFO James Gernetsky and CEO J.P. Richardson highlighted the "one-plus-one-equals-three" synergy of combining wallet and payment technologies.
• Commitment to profitability is clear, with a focus on operating leverage and cost discipline post-workforce reduction.

Analyst Questions and Answers:

• Q: Tixi Pay approval timeline? A: Expected by year-end; process involves change of control and business plan review, which may be combined by the regulator.
• Q: Customer churn during card suspension? A: Minimal churn observed as existing customers retained access; pipeline for new business remains strong.
• Q: Tokenized securities (stock) integration? A: Confirmed roadmap to allow users to trade tokenized stocks on Solana within the Exodus app.
• Q: Go-to-market strategy for B2B vs. B2C? A: B2C focusing on UFC partnerships and consumer acquisition; B2B focusing on licensing acquisition (Tixi) and sales team expansion for ExoSuite.
• Q: Q4 EBITDA run rate and volume trends? A: Q4 expected to be significantly improved with monthly EBITDA losses under $1M; crypto volumes stabilized in Oct/Nov after July lows.
• Q: Monetization of stablecoins and payments? A: Revenue from conversion fees and yield on ExoCash reserves; future monetization includes spending crypto assets directly via card rails.
• Q: Value proposition of ExoSuite vs. building in-house? A: ExoSuite eliminates the need for multiple vendors and regulatory compliance efforts, allowing businesses to launch global financial products in days rather than years.

Other Key Points:

• Corporate restructuring announced: Splitting into a holding company with two divisions—Consumer (Exodus Wallet) and Enterprise (Monovate).
• ExoCash positioned as the primary "transit medium" for the ExoSuite platform and for AI agents.
• Management noted that Bill Gates' early internet predictions serve as an analogy for the current skepticism regarding AI agents in commerce, predicting a similar mainstream shift.
• The company intends to allow users to spend non-stable digital assets (like Bitcoin) via card networks in the near future.
• Emphasis on "simplifying the organization" to align resources with high-growth opportunities and reduce duplication.