Currency Exchange International (CXI) Q3 2025 earnings summary

Executive summary

• Discontinuance of Exchange Bank of Canada (EBC) finalized, with all customer activity ceased by August 2025 and regulatory application to discontinue expected in Q4 2025.

• U.S. operations now the sole focus, with updated strategic plan emphasizing revenue growth, efficiency, and automation for fiscal 2026.

• Strong growth in payments and direct-to-consumer banknotes, supported by new customer additions and expanded agent network.

• Net income for Q3 2025 was $4.2 million, up 8% year-over-year, with $5.2 million from continuing operations and a $1.0 million loss from discontinued Canadian operations.

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

Financial highlights

• Q3 2025 revenue grew 7% year-over-year to $21.3 million; operating expenses up 8% to $13.1 million.

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

• Adjusted net income for Q3 was $4.1 million, down 10% year-over-year due to EBC revenue tapering; adjusted diluted EPS was $0.66, down 4%.

• For the nine months ended July 31, 2025, revenue rose 4% to $52.6 million, EBITDA up 9% to $16.7 million, and reported net income up 33% to $7 million.

• Payments revenue up 24% in Q3 and 16% for the nine months, driven by new and existing clients.

Outlook and guidance

• Fiscal 2026 expected to be a "clean year" with no discontinued operations, focusing on revenue growth and operational efficiency.

• Continued investment in automation, simplification, and selective expansion of retail and agent locations.

• Exploring M&A opportunities that are strategic and accretive, but nothing imminent.

• 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.