Currency Exchange International (CXI) Q2 2025 earnings summary

Executive summary

• Discontinuation of Canadian subsidiary, Exchange Bank of Canada (EBC), is on schedule, with all customer activity to cease by August 2025 and full regulatory exit expected in Q4 2025.

• U.S. operations now represent all continuing operations, with Canadian results classified as discontinued from Q2 2025.

• Strategic focus is on U.S. payments and banknotes businesses, with growth initiatives in both segments and ongoing review of M&A opportunities.

• Net income for Q2 2025 was $1.98 million, up 291% year-over-year, reflecting $2.7 million from continuing operations and a $0.7 million loss from discontinued Canadian operations.

• Adjusted net income rose 18% year-over-year, with adjusted diluted EPS up 24% year-over-year.

Financial highlights

• Net income from continuing operations was $2.7M in Q2, with a $0.7M net loss from discontinued operations; adjusted net income rose 18% to $2.3M year-over-year.

• Revenue from continuing operations was $16M for Q2, down 3% year-over-year, mainly due to lower banknotes demand, while payments revenue grew 5%.

• Q2 2025 reported EBITDA was $4.9M, up 10% year-over-year; adjusted EBITDA was $5.1M, up 15%.

• For the six months, revenue increased 3% to $31.3M, with payments revenue up 11% and banknotes revenue up 1%.

• Net working capital was $60.4M and total equity $81.2M as of April 30, 2025.

Outlook and guidance

• Management expects $3M in annualized post-tax expenses to remain after EBC exit, but is actively working to reduce these costs.

• Outbound travel-related business remains strong, with expectations for continued growth in online FX and direct-to-consumer channels.

• Strategic plan for U.S. operations is being finalized, with a focus on payments and banknotes growth.

• CEO highlighted continued growth in the payments business and new client additions despite travel-related headwinds.