Currency Exchange International (CXI) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $1.5 million, up 88% sequentially, with revenue stable year-over-year and strong growth in continuing operations, impacted by discontinued operations from EBC.

• Adjusted net income from continuing operations rose to $2.1 million, a 29% increase, and adjusted diluted EPS nearly doubled to $0.32 year-over-year.

• Payments revenue surged 49%, offsetting an 11% decline in banknotes revenue, with a 46% increase in trading volume and new clients added.

• Discontinued operations of Exchange Bank of Canada (EBC) impacted results, with EBC ceasing operations as of October 31, 2025.

• OnlineFX platform expanded to Nevada, now licensed in 47 states plus DC.

Financial highlights

• Revenue held steady at CAD 15.5 million ($15.4 million) compared to Q1 2025.

• Operating expenses increased 5% to CAD 12.2 million, mainly due to higher bank charges and salaries.

• Reported EBITDA fell 14% to $3.3 million, while adjusted EBITDA was unchanged at $3.8 million.

• Net working capital stood at $74 million and total equity at $84 million as of January 31, 2026.

• 151,000 common shares were repurchased and cancelled for $2.5 million under NCIB.

Outlook and guidance

• Management expects regulatory approval for EBC discontinuance in Q2 2026, after which EBC assets will be liquidated and distributed.

• Ongoing cost absorption from EBC exit is estimated at $3 million after tax annually, with continued expense streamlining planned for 2026.

• Long-term normalization anticipated for banknote business as international travel recovers.

• Continued focus on expanding payments and consumer business, including new store openings, digital initiatives, and branch/online service offerings.