Exodus Movement, Inc. Q1 FY2026 earnings call

• Strategic Acquisitions: Successfully closed the acquisitions of Monavate (U.K. and core assets) and Baanx after 15 months of negotiations, marking the largest transaction in Exodus' history. The adjusted transaction excludes the originally planned W3C holding company acquisition and a small Latvian target entity, but includes all critical issuer processing, card program assets and core teams. The acquisition diversifies Exodus' revenue by adding non-crypto recurring revenue from card processing, interchange, issuance and settlement; brings non-crypto customers including a major buy now, pay later provider and a large maritime payments player; gives Exodus full control of the end-to-end payment stack from self-custody to transaction processing; and adds existing enterprise partnerships with MetaMask, Ledger, Kraken and OKX. The adjusted purchase price is $108 million, down from the originally announced $175 million. Pro forma financials for the acquisition will be produced during Q2 2026 while the company focuses on integration. • New Product Launches: Launched Exodus Pay, which is now live in all 50 U.S. states, Canada and parts of Europe, allowing customers to spend digital dollar holdings directly from their Exodus wallet for everyday purchases. Announced XO Cash, a stablecoin purpose-built for AI agent transactions powered by MoonPay, running on the newly acquired Monavate payment rails. XO Cash is currently live, and Exodus is building AgentKit, a developer toolkit that lets AI agents make payments from a user's Exodus Pay balance without the agent ever holding user private keys, with all transactions limited by user-set permissions. • Key Partnerships: Announced a partnership to become the official payments partner of UFC, providing massive global distribution for Exodus Pay and brand exposure to 700 million UFC fans worldwide. The partnership will launch in June 2026, headlined by sponsorship of the Freedom 250 fight on the White House lawn. The partnership also drives B2B relationship building via hospitality experiences, which management expects will lead to new large enterprise partnerships. Secured a letter of intent for global card issuance with Visa, complementing existing relationships with both Visa and Mastercard to support global expansion. • Balance Sheet: Ended Q1 2026 with no debt, $74 million in cash and cash equivalents, and $48 million in digital assets. This strong capital position provides flexibility for M&A and other growth initiatives. • Strategic Direction: The company is actively transitioning its business model from a crypto-native self-custody wallet reliant on crypto trading volumes and price cycles to a diversified full-stack financial services platform with a durable revenue model less dependent on crypto market conditions.

Exodus reports only a single core crypto-focused business segment plus the newly acquired Monavate and Baanx payment assets in Q1 2026. The core crypto business generated total Q1 2026 revenue of $22.7 million, a 23% sequential decrease from Q4 2025 and a 37% year-over-year decrease from Q1 2025. Q1 2026 swap volume for the core business was $1.18 billion, down 26% sequentially from Q4 2025. Monthly active users ended the quarter at 1.5 million, down 6% year-over-year and flat sequentially. Quarterly funded users totaled 1.4 million, down 18% sequentially and 22% year-over-year. Exchange-related revenue, the primary revenue stream of the core crypto segment, fell below 90% of total company revenue in Q1 2026. The acquired Monavate and Baanx payment segments did not contribute meaningful revenue to the quarter, as the transaction closed just before the earnings call.

• Management expects funded user counts to rebound with positive crypto market catalysts such as U.S. crypto legislation and as new payments services like Exodus Pay gain market traction. • Management projects that by 2027, approximately 40% or more of Exodus' total revenue will come from the Monavate payment platform. • No updated formal full-year guidance has been issued following the adjusted acquisition structure; more detailed financial forecasts will be provided after one to two quarters of integration and once pro forma financials are completed in Q2 2026. • The core crypto business saw no material deviation from general market trends in the April-May 2026 period, remaining in line with the weak trading volumes seen in Q1 2026.

• The company's historical business model remains heavily reliant on crypto asset prices and trading volumes, as demonstrated by the material year-over-year and sequential revenue and volume declines in Q1 2026 during a period of weak crypto market conditions. • Forward-looking statements about new products, partnerships, expansion and revenue diversification are inherently uncertain, and actual results may differ materially from expectations due to unforeseen market, regulatory and operational risks. • Integration of the newly acquired Monavate and Baanx assets carries execution risk, with revenue contribution dependent on successful integration and go-to-market execution that may take multiple quarters to yield results. • Global expansion into high-growth emerging markets carries unquantified regulatory and market adoption risk.

Q: How does Exodus differentiate its new diversified payments platform from competing solutions for both consumers and B2B customers? / A: Management says growth in the near term will primarily come from existing large partnerships with MetaMask, Ledger and other crypto platforms that have millions of existing users, bringing Exodus' payment technology to their pre-established customer bases. For the consumer Exodus Pay app, differentiation comes from removing crypto complexity entirely: unlike competing crypto wallets, users do not need to manage seed phrases or navigate different blockchains to make everyday payments. Management also notes that long-term differentiation will come from consolidating banking, payments and brokerage functionality into a single app, plus early first-mover advantage in enabling secure AI agent payments that keep user private keys under customer control. / Q: What does the Visa global card issuance letter of intent mean for Exodus, and what opportunities do you see in priority emerging markets like Argentina, Nigeria, and the UAE? / A: The partnership with Visa supports Exodus' goal of launching Exodus Pay in as many global markets as possible, complementing its existing relationship with Mastercard. In Argentina, there is already high existing demand for dollar stablecoins due to severe local inflation, and Exodus Pay will allow users to easily spend stablecoins via Visa with no on-chain gas fee complexity. Nigeria is already a large existing market for Exodus' crypto products with high unmet demand for simple payment services. In the UAE, high expat populations and widespread dollar pricing for goods and real estate create strong demand for dollar-backed payment services. Local issuing capability, a core asset of the Monavate acquisition, gives Exodus an advantage over competing global payment platforms in these markets. / Q: Why was the purchase price for Monavate lower than the originally announced $175 million, and what assets were excluded from the adjusted deal? / A: The lower price stems from the adjusted transaction structure: Exodus did not acquire the original W3C holding company or a small Latvian target entity that were part of the original November 2025 agreement, and only acquired the critical card program, processing assets and core teams it targeted. Additional retention-related expenses for the acquired team may still arise, but these were not included in the headline purchase price for the adjusted transaction. / Q: What is the go-to-market strategy for Exodus Pay, and how will the UFC partnership drive customer adoption? / A: The UFC partnership provides direct consumer brand exposure to 700 million global fans via in-fight advertising, QR codes and on-screen activations to drive app downloads. Management notes an underappreciated benefit of the partnership is B2B relationship building: the hospitality and event access from the partnership helps build trust with potential enterprise partners, which management expects will lead to large new B2B deals over time.