Inquired about the greatest opportunities for ancillary services outside of processing among Monavate's current client base.

Michael Rolph explained two buckets: core Monavate offerings like KYC, PEPs, sanctions checking, and chargeback management, which are provided through a single integration; and future integration of Exodus' institutional products (self-custody, digital asset infrastructure, stablecoins, swaps) into the Monavate stack to offer an enhanced, end-to-end solution to existing and new enterprise clients. “The second bucket of ancillary services are the ones that we're obviously looking to now start to embed as we move forward, which will be the institutional products of Exodus into the Monavate stacks so that we can offer those to our existing customer base.”

Asked for details on the timeline and steps required for Monavate to restart card issuance in Europe.

Michael Rolph stated that the main step is the regulatory change of control approval process for the ZixiPay acquisition by the Bank of Latvia. This filing is expected imminently, with an SLA of effectively 60 days, potentially extending up to 90 days if the bank pauses for questions. “We expect that to be filed imminently. And there is a process around the SLA at the Bank of Latvia works to which is effectively 60 days, but they have obviously opportunity within that to pause and ask questions and clarify the submission. So we are hoping that it will be closer to the 60 days, but it could be as much as 90 days from the point of submission.”

Inquired if previously discussed product features like prediction markets and tokenized equities for the legacy Exodus app would still move forward, given the pivot to payments.

JP Richardson confirmed that the immediate focus is 100% on restoring card issuance across Europe and the United States. While other products like prediction markets are being worked on behind the scenes, they will be released later as the primary focus is on payments and delivering mainstream utility with cards. “right now, the focus is to absolutely ensure that we have card issuance 100% restored across where Exodus is served. So that means Europe and the United States as well. On top of that, though, behind the scenes, we are working on these other products.”

EXOD

Exodus (EXOD) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 10, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Annualized operating expense savings	$10 million to $13 million high materiality	FY27	High
New card issuing arrangement for Monavate	Established high materiality	Q4 · FY26	High
ZixiPay regulatory approval process	Closer to 60 days, potentially up to 90 days high materiality	Q4 · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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	—	—	—

Product announcements

Product	Type	Timeline	Details
Exodus Pay	update	Currently gated by issuance fixes, full availability expected post Q4 FY26

Deals & partnerships

Monavate and Baanx Strategic 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.

ZixiPay Acquisition 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

Regulatory setback in Europe for Monavate Late 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 client Q2 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 market Ongoing

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 transformation Q2 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

Monavate new card issuing arrangement

Q4 FY26

Current Meaningful progress made, on track

Target Established

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.

Find out whether EXOD delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.