Bitcoin Depot Inc. Q3 FY2025 earnings call

• Bitcoin Depot had strong third quarter performance, exceeding preliminary results announced in October, with revenue growth, increased adjusted EBITDA, and improved profitability. - Continued kiosk expansion, with over 9,300 active machines at the end of Q3 and expectation of continued growth. - International expansion: over 260 kiosks deployed in Australia, commenced operations in Hong Kong, and working on other jurisdictions. - Domestic footprint scaling: deploying kiosks from inventory, with potential to reach ~10,500 active kiosks when fully deployed. - Acquired National Bitcoin ATM's assets, adding over 500 kiosks. - Rolled out new compliance standards requiring customer identification before transactions and additional protections for seniors. - Strong balance sheet with over $70 million in cash and digital assets, well-positioned for growth opportunities and acquisitions.

Revenue for the third quarter was $162.5 million, up 20% from 2024. Gross profit in 2025 increased 40% to $28.2 million compared to $20.2 million in 2024, with gross margin in the third quarter increasing 250 basis points to 17.4%. Adjusted EBITDA, a non-GAAP measure, increased 75% to $16.1 million in 2025 compared to $9.2 million in the third quarter of last year. Cash, cash equivalents, and cryptocurrencies as of September 30, 2025, increased to $72.9 million compared to $31 million in 2024. Debt was $70 million at quarter end compared to $60.9 million in 2024.

• Anticipates Q4 revenues to range between $112 to $115 million and adjusted EBITDA to be in the low single-digit millions. - Impacted by state regulations imposing transaction size caps or fee caps, seasonality, and enhanced compliance standards. - Believes these factors are constructive for long-term industry health and positions Bitcoin Depot well to navigate the evolving regulatory environment.

• State regulations imposing transaction size caps or fee caps in several states, which have impacted near-term transaction activity. - Uncertainty around smaller, less compliant operators not adhering to regulations, though enforcement actions in some states are helping level the playing field.

Q: Can you give a bridge to components of difference between guidance today and prior estimates, including state regulation, seasonality, and enhanced compliance standards?

A: The biggest impact is state regulation, followed by seasonality, then enhanced compliance standards. Over 15 states enacted restrictions, six in Q3/Q4. Seasonality makes Q4 typically lowest. Compliance changes include customer ID for all transactions.

Q: Which states had biggest regulatory changes and future trends?

A: Over 15 states have enacted restrictions, six in Q3/Q4. Steepest drop initially, volumes may recover as others become compliant.

Q: Is the National Bitcoin ATM deal closed and contribution to Q4?

A: Deal is closed, converting kiosks to platform, mostly completed by Q4.

Q: Confidence in states enforcing regulations for competitors to become compliant?

A: Enforcement in California against non-compliant operators is sending a message, helping level the playing field.

Q: Outlook for 2026 regarding new kiosk deployment vs redeployment?

A: Still have inventory for new deployments, but will relocate machines from states with regulations. International expansion in Hong Kong and others without regulations.

Q: Size of Hong Kong market opportunity and acquisition candidates?

A: Hong Kong has handful of operators with 100+ kiosks, seen as exciting but not massive. Operators there could be acquisition targets.

Q: Update on BitLicense with NYDFS?

A: Unlikely to happen soon, no Bitcoin ATM operator has received BitLicense, uncertain state appetite for Bitcoin ATM companies in NY.