Currency Exchange International (CXI) Q2 2025 earnings summary

Executive summary

• Discontinuation of Exchange Bank of Canada (EBC) is on schedule, with all customer activity to cease by August 2025 and formal discontinuance expected in Q4 2025.

• U.S. operations now represent continuing operations, with Canadian operations classified as discontinued.

• Strategic focus is on U.S. payments and banknotes businesses, with growth initiatives in both segments.

• 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.

• Revenue declined 3% to $15.9 million due to lower consumer demand for foreign currency as travel activity slowed.

Financial highlights

• Net income from continuing operations was $2.7 million in Q2 2025; net loss from discontinued operations (EBC) was $0.7 million.

• Adjusted net income rose 18% year-over-year; adjusted diluted EPS up 24% to $0.36.

• Revenue from continuing operations was $16 million, down 3% year-over-year due to lower banknotes demand, offset by 5% growth in payments.

• Adjusted EBITDA grew 15% to $5.1 million in Q2 2025.

• Six-month revenue increased 3% to $31.3 million; payments revenue up 11%, banknotes revenue up 1%.

Outlook and guidance

• Management expects $3 million in annualized post-tax expenses to remain after EBC exit, mainly personnel and shared costs, but is working to reduce them.

• Growth anticipated in payments and banknotes, with a robust pipeline and continued investment in automation and marketing.

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