Exodus posts higher revenue and a narrower adjusted EBITDA loss

By Marcus Bennett

Exodus Movement generated $32.5 million in third-quarter revenue, up from $26.2 million in the second quarter and $30.3 million a year earlier, CFO James Gernetzke said on the earnings call. The quarter was the first full period to include the acquired Monavate and Baanx businesses, making year-over-year comparisons less straightforward because of the changed business mix.

Its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss narrowed to $3.9 million from $6.7 million as expense reductions and integration savings took hold. Management expects meaningful overall revenue growth in 2027 from both digital asset services and payments.

Exodus recorded a net loss of $8.3 million, or $0.27 per share. Revenue mix was:

• Digital asset services revenue: approximately $21.6 million.
• Payments revenue: $10.9 million.

Payment transaction volume reached approximately $1.1 billion, up from roughly $600 million in the prior quarter, while active cards totaled roughly 1.6 million. Volume processed by exchange providers was approximately $1.1 billion in both quarters, after rounding.

XO Swap represented 24% of provider volume. The company had approximately 1.4 million monthly active users at quarter-end, and Co-founder and CEO JP Richardson said September exchange activity was 7% higher than August and 28% higher than July.

Total quarterly exchange volume remained slightly below the second quarter, Richardson said. “October volumes declined slightly from September,” Gernetzke said, adding that it was too early to assess November.

What did cost reductions achieve?

Gernetzke said the adjusted EBITDA loss was concentrated toward the beginning of the third quarter and improved as expense reductions and integration savings took hold in August and September. The company was looking at a loss of less than $1 million a month around September and expected significant improvement entering the fourth quarter.

Headcount fell to 214 from 326 at the May 1 acquisition date. Exodus achieved its original target of $10 million to $13 million in annualized headcount savings, Gernetzke said.

The company is on track to reduce annual costs by approximately $30 million going into 2027. Further efficiencies remain possible as vendor contracts expire, although Gernetzke expects spending on growth to increase at some point next year.

How much liquidity does Exodus hold?

At quarter-end, Exodus reported no debt and held:

• Cash and cash equivalents: $9.6 million.
• Restricted cash (cash subject to restrictions): $54.3 million.
• Stablecoins (digital tokens designed to track a reference asset): $6.6 million.
• Digital assets: $25.3 million.

Can card issuance expand in the US and Europe?

Monavate CEO Michael Rolph said the company had restarted U.S. card issuance through a new partnership. It is exploring additional issuing relationships, while the current focus is supporting customer programs and building transaction activity.

In Europe, Exodus submitted a change-of-control application (a filing addressing transfer of ownership) and an updated business plan to the Bank of Latvia for its proposed acquisition of TigSiPay. Completion remains subject to regulatory non-objection (no objection from authorities) and other closing conditions. Richardson said card issuance under the European arrangements had not yet resumed.

Rolph said he remained “confident of a positive outcome toward the end of the year,” while cautioning that the regulatory process was incomplete. The business retained existing customers and continued issuing cards for them, but onboarding new business depends on receiving the relevant permissions.

What are the enterprise and stablecoin plans?

Management outlined plans for a group holding company with separate consumer and enterprise divisions, Exodus Wallet and Monavate. It is building XO Suite to combine wallets, card issuance, payment processing, swaps (digital-asset exchanges) and stablecoins for business customers.

Exodus Pay is intended to let wallet users spend using XO Cash, a U.S. dollar-backed stablecoin issued by MoonPay. Management sees potential revenue from conversions into XO Cash and yield on its underlying reserves; enterprise customers could eventually incorporate branded stablecoin and wallet services into their products.

Exodus also wants to support payments by AI agents operating within customer-defined budgets and permissions. XO Cash launched in May, but AgentKit had not yet launched, and Richardson disclosed no adoption or revenue figures for the products.

Trading tokenized assets is on the Exodus app roadmap. Richardson said the company had not yet achieved the consumer results it wanted from its UFC partnership, though it found success using the relationship for hospitality experiences with potential partners.

Exodus develops and operates a non-custodial cryptocurrency wallet platform, software that lets users retain control of their private keys (credentials used to authorize transfers). Its desktop, mobile and browser-based tools let users manage, store, send and receive digital assets without relying on a centralized exchange to hold their funds.

The next operating tests are fourth-quarter payment and exchange volumes, the loss run rate, U.S. card activity and European regulatory clearance. The company disclosed no adoption or revenue figures for XO Cash or AgentKit, leaving those products’ commercial contribution unquantified.