CURRENC Group (CURR) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 declined 23% year-over-year to $10.1 million, mainly due to divestitures of TNG Asia and GEA and continued weakness in global airtime business.

• Net loss widened to $4.5 million from $2.6 million in Q1 2024, driven by lower revenue and increased share-based compensation expenses.

• EBITDA loss increased to $2.8 million from $0.2 million in the prior year period, primarily due to higher headquarters losses.

• Remittance and airtime transaction volumes and values declined, reflecting market saturation and competitive pressures in Southeast Asia.

• The company completed a business combination in August 2024, resulting in a reverse recapitalization and new private placement financing.

Financial highlights

• Gross profit for Q1 2025 was $3.2 million, down from $4.4 million in Q1 2024.

• Operating expenses rose to $7.5 million, up from $5.8 million, mainly due to $2.2 million in share-based compensation.

• Cash and cash equivalents at March 31, 2025, were $62.3 million, with a working capital deficit of $59.8 million and a net capital deficit of $43.9 million.

• Net cash used in operating activities was $1.5 million for the quarter.

• Remittance revenue (excluding divested entities) declined 8% to $4.6 million; global airtime revenue fell 23% to $2.0 million.

Outlook and guidance

• Management expects continued pressure on remittance and airtime revenues due to market saturation and competition in Southeast Asia.

• Strategic focus is on expanding B2C remittance in the Middle East and diversifying the airtime business into new regions.

• The company is launching new AI-driven products and an AI data center project to drive future growth.

• The company is evaluating funding alternatives, including an ELOC agreement for up to $10 million in additional liquidity.