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    EXOD
    Earnings call· Jun 2026(Q2 FY26)

    Exodus Movement Q2 FY26 earnings call EXOD

    Aug 10, 2026 Source

    Executive summary

    Exodus Q2 FY26 — Transformation to a Payments Company

    Exodus is undergoing a strategic transformation, pivoting from a self-custodial wallet company to a diversified financial services platform focused on payments, driven by the acquisition and integration of Monavate and Baanx. This shift aims to expand revenue streams beyond crypto market volatility, leverage existing user trust, and build a more durable financial model through operational efficiencies and restored global capabilities.

    Highlights

    4

    • Revenue remained relatively consistent at $26 million over the past 6 months despite continued crypto market weakness and integration efforts.

    • Monavate's core client base transaction volumes grew by 60% quarter-over-quarter on a normalized basis in Q2 FY26.

    • Meaningful progress made on establishing a new card issuing arrangement for Monavate, on track for Q4 FY26.

    • Exodus' legacy business showed resilience with monthly active users at 1.4 million and quarterly swap volume at $1.13 billion, holding generally constant from Q1 to Q2 FY26.

    Concerns

    4

    • Net loss of $19 million and EBITDA loss of $21.5 million in Q2 FY26 due to one-time acquisition-related expenses, technology integration, and restructuring costs.

    • Monavate experienced a regulatory setback in Europe in late 2025, leading to inability to issue new cards for new clients and offboarding of some programs.

    • Transaction volumes for Monavate declined due to one large client transitioning card processing in-house, though they remain a client at reduced volume.

    • The company made a difficult decision to reduce team size by approximately 25%, expecting $10 million to $13 million in annualized operating expense savings.

    Guidance & targets

    3
    CategoryTargetConfidence
    Annualized operating expense savings
    $10 million to $13 million
    high materiality
    High
    New card issuing arrangement for Monavate
    Established
    high materiality
    High
    ZixiPay regulatory approval process
    Closer to 60 days, potentially up to 90 days
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Exodus (legacy business)
    Revenue and key metrics held generally constant from Q1 to Q2 FY26, despite continued price pressure in the broader cryptocurrency market.
    Monthly active users: 1.4 millionQuarterly swap volume: $1.13 billion
    		$21.2 million—generally constant—
    Monavate
    Revenue contribution for May and June only. Normalized transaction volume growth excludes the impact of one large concentrated decline.
    Gross transaction volume (YTD): $1.8 billionGross transaction volume (Q2): $900 millionActive cards: 1.4 millionNormalized Q2 transaction volume growth (core client base): 60% QoQ
    		$5 million———

    Operational metrics

    13
    Total Revenue
    $26.2 million
    Q2 FY26

    Total reported revenue for the combined organization.

    Non-GAAP Total Revenue
    around $29 millionin line with pro forma Q1 2026 combined revenue
    Q2 FY26

    Would be higher if Exodus' ownership of Monavate was for the full quarter. In line with pro forma Q1 2026 combined revenue.

    Net Loss
    $18.6 million
    Q2 FY26

    Reflects one-time operational expenses connected with combining the organizations.

    Adjusted EBITDA
    ($6.7 million)
    Q2 FY26

    Adjusted to highlight the strength of the core operating business, excluding transitional costs.

    EBITDA Loss
    $21.5 million
    Q2 FY26

    Reflects activities connected with combining two companies and accounting for acquisition-related expenses, technology integration, and restructuring costs.

    One-time transaction-related incentive costs
    $17 million
    Q2 FY26

    Part of the bulk of one-time items in G&A.

    One-time professional services costs
    $5.8 million
    Q2 FY26

    Part of the bulk of one-time items in G&A.

    Team size reduction
    25%
    Q2 FY26

    Decision made to align with long-term payment strategy and position for future profitability.

    Monavate active enterprise customers
    approximately 40
    Q2 FY26

    Monavate supports a diverse customer base spanning fintech, payroll, insurance, logistics, and on-chain businesses.

    Cards issued by Monavate (since inception)
    more than 6 million
    since inception
    Transactions processed by Monavate (since inception)
    over $8.5 billion
    since inception
    Countries supported by Monavate
    more than 50
    YTD 2026
    Monavate transaction volumes growth (H1 2026)
    over 50%YoY
    H1 2026

    Excluding the impact of one large concentrated decline, transaction volumes grew significantly.

    Industry KPIs

    2
    MetricValueDetails
    Revenue growth$26.2 millionUSD
    Customer account count1.4 millionusers

    Product announcements

    1
    ProductTypeDetails
    Exodus Payupdate

    Deals & partnerships

    2
    Monavate and BaanxStrategic acquisition to transform Exodus into a payments company and expand into enterprise payments market.favorable price

    Completed during Q2 FY26. Baanx brand is being retired, its team and technology are folding into Monavate. Monavate is now Exodus' payments business.

    ZixiPayAcquisition of a regulated entity holding licenses required to resume scaled business development across Europe.

    Exodus assumed W3C rights and obligations under its existing agreement to acquire ZixiPay in July 2026, subject to regulatory approval by the Bank of Latvia.

    Risks & headwinds

    4
    Regulatory setback in Europe for MonavateLate 2025 (ongoing remediation)

    Inability to issue new cards for new clients in Europe; offboarding of a limited number of programs.

    Mitigation: Working on remediation, acquiring ZixiPay (pending regulatory approval) to restore licensing for scaled business development across Europe, on track to establish new issuing arrangement in Q4 FY26.

    Transaction volume decline from large clientQ2 FY26

    Impacted concentration and overall transaction volumes (not quantified directly, but implied significant enough to mention).

    Mitigation: Client remains, albeit at reduced volume, with potential to expand relationship into new product categories. Business is now well diversified and not dependent on any single customer.

    Continued weakness in crypto marketOngoing

    Swap volume down year-over-year for legacy Exodus business.

    Mitigation: Diversifying revenue streams by transforming into a payments company, less dependent on digital asset prices; leveraging existing user base and enterprise partners.

    One-time costs associated with business transformationQ2 FY26

    Net loss of $18.6 million and EBITDA loss of $21.5 million, including $17 million in transaction-related incentive costs and $5.8 million in professional services.

    Mitigation: Viewed as transitional rather than structural; organizational changes and team reduction (25%) expected to yield $10 million to $13 million in annualized operating expense savings by Q4 FY26.

    What to watch in Q3 FY26

    4

    Monavate new card issuing arrangement

    Q4 FY26
    CurrentMeaningful progress made, on track
    TargetEstablished

    Why it matters

    Critical for unlocking Monavate's full potential, supporting Exodus Pay growth, and expanding regional presence in Europe.

    I'm pleased to say we've made meaningful progress over the past couple of months. And we are on track to establish a new issuing arrangement during the fourth quarter.

    Q&A highlights

    5

    Asked for color on the step-up in G&A, distinguishing one-time transaction expenses from run-rate costs, and how the updated cost structure post-reductions compares.

    James Gernetzke clarified that approximately $17 million were pure transaction-related incentive costs and $5.8 million related to professional services, identifying these as one-time items. He noted that the integration is not fully complete, and further synergies and efficiencies are expected, with the full cash impact of the reduction in force to be realized by the end of Q4.

    “there's about $17 million in pure transaction-related incentive costs, there's about $5.8 million related to some professional services. And those are going to be the bulk of the 1x items there.”

    asked by Gareth Gacetta · answered by James Gernetzke

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Transformation to a Payments Company

    Exodus is fundamentally shifting its business model from a self-custodial wallet provider to a diversified financial services platform with a strong focus on payments. This transformation is driven by the acquisition of Monavate and Baanx, expanding Exodus' infrastructure and enterprise capabilities to become a full-service fintech solution. The company aims to monetize its existing 1.4 million active users more deeply and tap into new enterprise payments markets.

    02

    Monavate Acquisition and Integration

    The acquisition of Monavate and Baanx was completed in Q2 FY26, marking the most strategic acquisition in Exodus' history. The integration process is focused on combining the businesses, aligning operations, and realizing efficiencies. The Baanx brand is being retired, with its team and technology folding into Monavate, which will serve as Exodus' payments business going forward⏳. This integration is crucial for building novel solutions like Agentic payments.

    03

    Regulatory Remediation and European Expansion

    Monavate faced a regulatory setback in Europe in late 2025, which restricted its ability to issue new cards. Exodus is actively working to resolve this, including the acquisition of ZixiPay, which holds necessary licenses in Latvia. This move is expected to restore and expand Monavate's regional presence in Europe, with regulatory approval for ZixiPay anticipated within 60 to 90 days of submission.

    04

    Financial Performance and Cost Structure Optimization

    In Q2 FY26, Exodus reported $26.2 million in revenue and a net loss of $18.6 million, with an adjusted EBITDA loss of $6.7 million. The net loss was primarily due to one-time📎 acquisition-related expenses and restructuring costs. To achieve a more durable financial model, Exodus reduced its team size by approximately 25%, expecting $10 million to $13 million in annualized operating expense savings, with the full run rate in place by Q4 FY26.

    05

    Market Opportunity and Investor Modeling Shift

    The combined entity is positioned to bridge traditional financial services with on-chain finance, leveraging stablecoins and Agentic payments. Monavate's platform provides regulated payments infrastructure for enterprises, supporting 40 active customers and processing over $1.8 billion in gross transaction volume year-to-date. Exodus emphasizes that investors should now model the company with two segments: cyclical swap/transaction revenue tied to crypto markets and durable payments volume from Monavate, which grows with usage rather than asset prices.

    06

    Product Roadmap and Exodus Pay

    The product roadmap is centered on making Exodus more useful in customers' financial lives, with Exodus Pay being a key example of moving beyond asset holding to everyday money movement. The growth of Exodus Pay is currently gated by the same card issuance fixes affecting Monavate. The company is also transitioning to a new domestic banking partner in the US to accelerate capabilities for Exodus Pay and enterprise clients.

    AI-generated summary of the company’s earnings call. Not investment advice.