Exodus Movement, Inc. Q4 FY2025 earnings call

2025 was consequential for the company as they rang the NYSE bell, announced Exodus Pay, closed Grateful acquisition and W3C acquisition, expanded ExoSwap, and expanded tokenized equity to Solana. They are shifting from a speculation-based company to a payments company with Exodus Pay at the center, built on stablecoins and using W3C's product. AI is reshaping how they build and what they build, with AI agents potentially creating a large addressable market. ExoSwap has 18 signed partnerships, 11 producing, and MetaMask is a notable new partner.

Full-year revenue was $121.6 million, up 5% from 2024. Q4 revenue was $29.5 million, down 3% from Q3 and 34% from the prior year's record Q4. Full-year swap volume was $6.89 billion, up 21% from 2024. Q4 swap volume was $1.59 billion, down 9% sequentially and 32% year over year. ExoSwap had $416 million in Q4 volume, 26% of quarterly total. Full-year staking revenue reached over $4 million, nearly doubling 2024's total. Fiat onboarding revenue saw a 28% increase versus 2024. Quarterly funded users finished the year at 1.7 million, down 6% from last quarter and 11% from a year ago. Monthly active users at end of Q4 were 1.5 million, down 35% from previous year.

They are working toward closing the W3C acquisition in 2026. They continue to evaluate tokenized equity but are pausing Bitcoin dividend plans to prioritize M&A and growth initiatives. They expect ExoSwap's book of business to continue growing with new deals and partners.

There are risks associated with forward-looking statements, including factors described in the earnings press release and Form 10-K. There are regulatory and integration complexities with acquisitions like W3C. There are also risks related to the performance of partners in the ExoSwap business, such as one partner potentially stopping operations.

Q: Can you expand on the steps needed to make agentic payments a reality?

A: To enable agents to transact with wallets, need to ensure user control over wallets, have back-end software for businesses, and implement security controls.

Q: Can you go through costs related to M&A in Q4 and future?

A: There were legal costs, interest from Galaxy loan (now paid off), and other one-time costs, with some expected to be lower but not zero in coming quarters.

Q: Detail drivers to improved monetization in ExoSwap and future opportunities?

A: ExoSwap grew book of business with new partners, expect changes as book grows, pleased with new deals.

Q: Questions about Exodus Pay go-to-market and W3C timeframe?

A: Exodus Pay was renamed ExoRamp, early test group had good feedback, aligning with big cultural moments; W3C acquisition has regulatory complexities and progressing on timeline.

Q: Risk assessment and capital allocation for Exodus Pay and W3C timeframe?

A: Exodus Pay is evolution of company focused on consumer needs, capital allocation follows similar path; W3C has integration complexities with subsidiaries and progressing with regulators on timeline.