Exodus Movement, Inc. 2026 Q2 Earnings Call

Thanks, Ben, and thank you everyone for joining us. If there's one takeaway from today's call, it's this: Exodus is becoming a payments company, and this quarter, the transformation moved from plan to execution. Over the last few months, Exodus began to execute on the strategy we've presented to you in past calls, turning our company from one of the industry's leading self-custodial wallets to a diversified financial services platform built to help individuals and businesses manage and move money. Everything we'll discuss today builds on that theme. During the second quarter, we completed the most strategic acquisition in our company's history throughout the purchase of Monavate and Baanx. We spent the second quarter focused on integrating the businesses and creating a new combined organization that is optimized around the payments business. This is a strategic transformation. Again, we are becoming a payments company.

We are fundamentally expanding our infrastructure and our enterprise capabilities to be a payments provider and a full-service fintech solution. Monavate opens the door to a new enterprise payments market with associated revenue streams that are largely independent of the crypto markets. Exodus gains capabilities to tap into and potentially monetize many billions of USD of self-custodial wallets currently held by our users. Finally, the combination of our core wallet and Monavate's payment infrastructure enables us to build novel solutions for new markets, most notably agentic payments. Our product roadmap is built around one goal, make Exodus more useful in our customers' financial lives and earn a stronger economic relationship with them over time. As a part of this transformation, we have made some fundamental changes to align with our long-term payment strategy and position Exodus for future profitability.

A few weeks ago, I had to make the difficult decision to reduce the size of our team by approximately 25%, and we expect $10 million to $13 million in annualized operating expense savings with the full monthly run rate in place in the fourth quarter of this year. I want to say I am deeply grateful to everyone affected. They helped build this company and create a product that millions of people use to self-custody their digital assets. As I looked ahead, I realized that our team was organized around who we were and not where we are headed. As you are going to hear from Michael in a bit, we are working closely with Monavate to bring our businesses together and create a new company purpose-built for the opportunities ahead. This quarter, we faced costs associated with business transformation. Revenue was $26 million with a net loss of $19 million.

Two key headlines about our financials. First, on revenue. Our revenue has remained relatively consistent over the past six months. This is despite the continued weakness in the crypto market and the incredible amount of time spent acquiring and integrating Monavate into Exodus. I am confident that our platform of direct users and enterprise partners is stable, is the foundation for growth ahead. Second, our net loss largely reflects the one-time operational expenses connected with combining the organizations. Looking forward, I believe our revised operating platform can support our growth plans without an associated increase in cost structure. Shortly, James will take you through this in more detail. Now, I want to take a few minutes to orient you on the road ahead for Exodus. Historically, we have been known as a self-custodial wallet company.

We are modeled on wallet metrics viewed as a place to hold and manage digital assets. That made sense because it is the company we originally built. Our customers trusted Exodus to manage their assets, but our platform was limited. This is changing. Exodus Pay is the first example, moving beyond holding assets into everyday money movement. The Monavate acquisition gives us the infrastructure to take that much further. These efforts are directed at our core base of 1.4 million active users, with the goal of deepening our financial relationship with them. While we are actively exploring ways to build our customer base, such as partnerships with UFC and DirecTV, our greatest near-term opportunity is with our existing users who already trust our platform. For Monavate, whose existing business is built around supporting both traditional commercial enterprises and on-chain finance clients, we see a significant opportunity for growth.

Before that can be achieved, we are focused on strengthening Monavate's payments infrastructure and restoring capabilities that have been constrained for the past year. Specifically, Monavate's inability to issue new cards for new clients in Europe. This issue was known at the time of our purchase, and it was a principal reason we were able to make this acquisition at such a favorable price relative to substantially higher valuations seen in other transactions such as Rain, Reed, and Bridge. We always believed we could solve the issue, and the improvements we're making today operationalize the same capabilities we saw as significant untapped value when we acquired the business. I will let Michael from Monavate provide some additional details, but I'm pleased to say we've made meaningful progress over the past couple of months, and we are on track to establish a new issuing arrangement during the fourth quarter.

At the same time, we are also transitioning to a new domestic banking partner in the United States, which will accelerate our domestic capabilities to support interest in Exodus Pay and enterprise payment clients. Exodus Pay growth is gated on the same issuance fixes, which is why we are holding off from reporting adoption metrics until the product is fully available. Together, these initiatives represent an important milestone in unlocking Monavate's full potential and position the business to contribute much more meaningfully as we move forward. One final point before I hand over to Michael. I've used the term Monavate throughout my remarks. When we say Monavate, we mean the combined teams, businesses, and relationships from both the Monavate and Baanx acquisitions. The Baanx brand is being retired. Its team and technology are folding into Monavate, and Monavate is our payments business going forward. Michael, over to you. Thanks, JP.

I'm pleased to be joining my first earnings call as part of Exodus. Over the past several months, I've spent considerable time with JP, James, and the broader leadership team. What stands out is the alignment around a clear long-term vision. Building infrastructure that bridges traditional financial services to on-chain finance, powering instant, borderless and programmable movement of value for the world. Stablecoins are accelerating the modernization of financial services with near real-time settlement, continuous availability, and borderless interoperability. They are improving how value moves across remittance, global payments, and tokenized assets. Combined with the coming revolution of commerce due to the proliferation of agentic payments use cases, both consumers and enterprises increasingly expect financial products to operate seamlessly across fiat and on-chain environments. That shift is driving demand for regulated infrastructure that enables these experiences to be delivered securely, efficiently, and at scale.

That is precisely where Monavate is positioned. For those less familiar, Monavate provides regulated payments infrastructure that enables enterprises to launch and operate modern payment programs. Our platform includes card issuing, processing, settlement, BIN sponsorship, stablecoin settlement, compliance oversight, and multi-jurisdictional operational support, allowing clients to move money safely and efficiently. As JP noted, we experienced a regulatory setback in Europe in late 2025 following a Bank of Lithuania inspection of UAB Monavate. Whilst UAB Monavate was not part of the Exodus transaction, it is important context. The outcome required us to tighten controls, pause new program onboarding in Europe, and off-board a limited number of programs while enhancements were implemented. Importantly, UAB Monavate has continued to service the majority of its existing customers throughout this period as we continue our work on the remediation.

Europe remains a key strategic market, and in July 2026, Exodus assumed W3C Corp's rights and obligations under its existing agreement to acquire TXIPay, subject to regulatory approval by the Bank of Latvia. As a result, Exodus is positioned to acquire TXIPay, which holds the licenses required to help resume scaled business development across Europe. We view this as an important step in restoring and expanding our regional presence. As of the end of Q2, Monavate supports approximately 40 active enterprise customers. Since inception, we have issued more than 6 million cards and processed over $8.5 billion in transactions. Year to date, we have processed over $1.8 billion in gross transaction volume across more than 50 countries, supported by approximately 1.4 million active cards.

Our customer base spans fintech, payroll, insurance, logistics, and on-chain businesses. Excluding the impact of one large concentrated client, transaction volumes grew by over 50% in the first half of 2026 compared to the prior year. I will return to that client in a moment. The strategic rationale for Exodus' acquisition of Monavate is straightforward. We provide the infrastructure layer for moving money. Our customers include Crecard, MarTrust, ShipMoney, Pipelayer, OKX, Kraken, and Gnosis, to name a few, who span both traditional payment use cases and the digital asset ecosystems. Equally important is what Exodus enables for Monavate. Our enterprise clients now gain access to Exodus' capability in self-custody and digital asset infrastructure, creating meaningful opportunities for cross-sell and the development of integrated end-to-end solutions that bridge fiat and crypto. Integration is progressing well. Our priorities remain clear, maintaining uninterrupted service for customers, advancing technology integration, and executing on commercial synergies.