Bitcoin Depot Inc. Q1 FY2025 earnings call

• Bitcoin Depot had 19% year-over-year revenue growth and record net income of $12.2 million in Q1 2025. - Median transaction size was up 46% year-over-year to $300, and total transaction volume was $163.8 million. - Adjusted gross profit was up 92% year-over-year, and adjusted EBITDA was up over threefold to $20.3 million. - Ended Q1 with approximately 8,483 active machines and expects continued kiosk growth. - 3,200 kiosks installed for less than one year, with Bitcoin ATMs typically having payback periods of less than eight months. - International expansion: over 100 kiosks deployed in Australia, evaluating entry into at least two additional countries in 2025. - Domestic footprint scaling: deploying kiosks from inventory, aiming for ~10,000 active fleet. - Regulatory expansion: ongoing discussions in New York State, strong compliance infrastructure. - Appointed David Gray as CFO and Chris Ryan as Chief Legal Officer.

Revenue for the first quarter of 2025 was $164.2 million, an increase of 19% compared to $138.5 million in the first quarter of 2024. Adjusted gross margin in Q1 2025 increased to 20.2% from 12.5% in Q1 2024, a 770 basis point increase. Adjusted EBITDA in Q1 2025 was $20.3 million, up 315% from $4.9 million in Q1 2024. Cash and cash equivalents in cryptocurrencies as of March 31, 2025, were $43.3 million.

• Anticipates Q2 revenues to grow in the low to mid-single-digits both sequentially and compared to Q2 2024. - Plans to pay down at least an additional $3.5 million of the term loan by year-end.

• Factors beyond control could cause actual results to differ from forward-looking statements. - Evolving regulatory environment at federal and state levels. - Competition in the Bitcoin ATM market affecting profitability.

Q: Do you have a year-end '25, year-end '26 rough kiosk goal and then what would you think of, I don't know, rough CapEx for '25 and '26?

A: No announced public kiosk installed fleet goal, moving slower on additional net new installations than last year, no significant CapEx anticipated this year beyond small parts costs.

Q: If those 3,200 kiosks that have been in place less than a year ramp to be average kiosks, what incremental lift to revenue would that be?

A: Can't calculate exact number, but typically kiosks in year two see at least 50% growth in revenue versus year one.

Q: Thoughts on capital management priorities for the rest of the year, balancing M&A, Bitcoin purchases, and potential quarter dividend?

A: Opportunistic with Bitcoin purchases, focus on paying down debt quicker due to strong balance sheet, no near-term M&A in US/Canada/Australia but evaluating international M&A for strategic value.

Q: Reason for extremely steep increase over the last 4 quarters in median transaction size?

A: Function of transaction tiers for KYC, with $200 tier having many transactions, and once crossing that, median moves up more quickly.

Q: Thoughts on spreads of the machines this quarter, gross margins, and drivers moving forward?

A: Gross margin expansion attributable to pricing strength and leveraging higher revenue across fixed and semi-fixed costs, expecting this to continue strong.

Q: Landscape of additional kiosk acquisition opportunities?

A: Competition in US shrinking, with over 3,000 competitor kiosks disappearing, potential for additional kiosks to come to market for sale.