Currency Exchange International (CXI) Q1 2025 earnings summary

Executive summary

• Announced decision to cease operations of Exchange Bank of Canada, with discontinuance expected in Q4 2025 pending regulatory approval and restructuring underway.

• Revenue grew 10% year-over-year to $19.9 million in Q1 2025, with growth in both US and Canada markets.

• Net income for the quarter was $812,000, down 4% year-over-year due to tax impacts and regulatory charges, including a $0.3 million one-time advisory cost.

• Adjusted net income rose 29% to $1.1 million, and adjusted diluted EPS increased 31% to $0.17.

• Strategic focus shifting to US operations, optimizing group structure, and enhancing technology for future growth.

Financial highlights

• Adjusted EBITDA increased to $3.4 million (17% margin), up 45% year-over-year; reported EBITDA was $3.1 million, up 33%.

• Net operating income rose 32% to nearly $3 million.

• Diluted EPS was $0.12, down 8% year-over-year; adjusted diluted EPS was $0.17, up 31%.

• Net working capital stood at $73.6 million and total equity at $79.4 million as of January 31, 2025.

• Banknotes revenue increased 9% and payments revenue increased 12% year-over-year.

Outlook and guidance

• Management expects the Canadian exit to positively impact group results and is focused on US growth opportunities, operational efficiencies, and technology-driven product enhancements.

• No specific margin or revenue guidance provided due to uncertainty.