BM Technologies (BMTX) Q2 2024 earnings summary

Executive summary

• Operating revenues for Q2 2024 were $12.5 million, nearly flat year-over-year; H1 2024 revenues rose 10% to $28.7 million compared to H1 2023.

• Q2 2024 net loss was $4.8 million, primarily due to $1.6 million in one-time NextGen technology costs; H1 2024 net loss improved to $4.1 million from $9.4 million in 2023.

• Technology transformation to a microservice platform completed, enabling rapid product launches and improved customer engagement.

• Focus remains on Higher Education business, with new product launches, strong client retention, and growth initiatives such as a rewards engine and IDV product.

• Liquidity remains strong with $12.5 million in cash and no debt at quarter end; projected liquidity of $16.7 million as of August 2025.

Financial highlights

• Q2 2024 operating revenue was $12.5 million, nearly flat year-over-year; H1 2024 revenue was $28.7 million, up 10% from 2023.

• Q2 2024 net loss was $4.8 million, or $(0.41) per share; H1 2024 net loss was $4.1 million, improved from $9.4 million in 2023.

• Interchange and card revenue surged 57% year-over-year in Q2, reaching $2.3 million.

• Core EBITDA loss improved to $(0.9) million in Q2 2024; H1 2024 Core EBITDA was $0.5 million.

• Cash and cash equivalents at June 30, 2024, were $12.5 million, down from $14.3 million at year-end 2023.

Outlook and guidance

• Anticipates positive Core EBITDA for full year 2024, supported by revenue growth and cost controls.

• BaaS business expected to wind down by February 2025, with projected $1 million quarterly Core EBITDA improvement post-wind down.

• Next product launch before year-end will offer financial, insurance, and wellness benefits to students.

• Liquidity is projected to be sufficient for at least the next 12 months, with no current plans for dividends.

• Focused on growth in Higher Education and exploring strategic options to enhance shareholder value.