Currency Exchange International (CXI) Q3 2025 earnings summary

Executive summary

• Q3 2025 net income was $4.2 million, up 8% year-over-year, with $5.2 million from continuing operations and a $1 million loss from discontinued Canadian operations.

• Revenue for Q3 2025 rose 7% to $21.3 million, driven by growth in payments and banknotes segments.

• The discontinuance of Exchange Bank of Canada (EBC) is in its final phase, with all customer activity ceased by August 2025 and regulatory application pending in Q4 2025.

• 282,400 shares were repurchased and cancelled year-to-date for $4.25 million under the NCIB.

• Strategic focus is shifting to U.S. operations, with updated plans based on customer, agent, and shareholder feedback.

Financial highlights

• Q3 2025 EBITDA was $8.1 million, up 4% year-over-year; adjusted EBITDA was $8.2 million, up 5%.

• Q3 2025 adjusted net income was $4.1 million, down 10% year-over-year; adjusted diluted EPS was $0.66, down 4%.

• Nine-month revenue from continuing operations reached $52.6 million, up 4%; reported net income was $7 million, up 33%.

• Adjusted net income for the nine months was $7.5 million, up 2%; adjusted diluted EPS was $1.20.

• Net working capital was $67.6 million and total equity $83.8 million as of July 31, 2025.

Outlook and guidance

• Fiscal 2026 will focus on revenue growth and efficiency, leveraging automation and simplification.

• No formal earnings guidance provided; referral agreements from EBC discontinuance expected to generate some fee income, but not material.

• Software-as-a-service (SaaS) fee income expected to become more noticeable in 2026.

• Management expects certain operating and personnel costs, previously shared with EBC, to be fully borne by continuing operations, estimated at $3 million after tax annually.

• The application to discontinue EBC is expected in Q4 2025, pending regulatory approval.