On Tuesday, Exodus Movement (AMEX:EXOD) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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Access the full call at https://exodus-movement.zoom.us/j/84802971541#success
Summary
Exodus Movement Inc completed its largest transaction by acquiring Monavate and Banks, diversifying revenue streams away from crypto and enhancing its payments capabilities.
The launch of Exodus Pay marked a significant milestone, now operational in all 50 U.S. states, Canada, and parts of Europe, simplifying digital money management.
The company announced a strategic partnership with the UFC to expand brand visibility and distribution of Exodus Pay.
Q1 revenue was $22.7 million, down 23% from Q4 2025, attributed to a decline in digital asset market activity.
Exodus plans to integrate Monavate and Banks, scale Exodus Pay, and focus on expanding its payments-related revenue.
Management emphasized the importance of new product launches like Exo Cash for AI agents, aiming to simplify digital transactions.
The company maintained a strong balance sheet with $74 million in cash and cash equivalents, and $48 million in digital assets.
Future revenue projections include a significant contribution from Monavate by 2027, expected to account for over 40% of total revenue.
Full Transcript
Jack Barlow, Head of Investor Relations
Good morning and welcome to Exodus Movement Inc’s first quarter 2026 earnings call. I am Jack Barlow, Head of Investor Relations, and with me today is our Co-Founder and CEO, JP Richardson, and our CFO, James Gernetzke. Last night, we issued a press release and filed our quarterly results, which are both available on our website. During today’s call, we’ll reference our earnings and we may make forward-looking statements. The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance.
Actual results may vary materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are referenced in the forward-looking statement disclosure in our earnings release and described in more detail in our recent Form 10-K filed with the SEC earlier this year, which is also available on our Investor Relations portion of our website. We do not undertake any obligation to update forward-looking statements.
As always, please feel free to contact us at [email protected] if you have any questions or submit your questions via our social media accounts on X or Reddit. With that, I will turn the call over to JP.
JP Richardson, Chief Technical Officer, Founder
Thanks, Jack. Thank you, everybody, for joining us here today. Two weeks ago, on May 1st, our team traveled from all over the world to Omaha, Nebraska, for our first shareholder day, the Exodus Summit. We brought investors, partners, and customers together for a full day of programming. We made many new announcements to show what we’re building and heard directly from the leaders and partners building it with us. What you didn’t see is that in the days leading up to the summit, we were on calls all day and night working on closing Monavate and Banks.
Everyone was running on a few hours of sleep, and some of our team members even pulled all-nighters. But finally, the night before the summit began, the team closed the Monavate and Banks UK deals. Banks US was still pending, so the team spent all day on calls, pushing to close the deal, and about 20 minutes before I walked on stage, we got word that the deal had closed. I’ll always remember this moment as we officially owned Banks and Monavate. This was not an easy process, and it took 15 months of countless hours and extraordinary effort from our teams.
It was the largest transaction in Exodus history and marks a major step for the next chapter of the company. Monavate and Banks strengthen our business in four important ways. First, this transaction diversifies the revenue away from the crypto trading cycle. We’re adding new recurring revenue like card processing, interchange, issuance, and settlement. Second, this adds an additional customer base that’s completely separate from crypto. Customers from Monavate include all types of customers, including a major buy now, pay later customer and one of the largest players in maritime payments.
So this is revenue with no exposure to crypto markets. Third, these acquisitions give Exodus control over more of the payment stack from self-custody to card transaction processing payments, all under one roof. They expand what we can offer with the Exodus suite. Monavate and Banks bring existing relationships across Metamask, Ledger, Kraken, and OKX. They give us more ways to serve enterprise customers with payments capabilities we now own. This is the first earnings call where we can officially say that we own the full payment stack.
Now we are executing on this vision that we’ve shared with you on past calls. We have products in the market and two completed acquisitions. Here’s what’s next. One of the biggest milestones in Q1 was the launch of Exodus Pay. We’re now live in all 50 states, plus Canada and parts of Europe. People can manage their money, send, and spend all from one app. Our customers are now using the digital dollars they hold in their wallets to pay for groceries.
Exodus Pay is just the beginning. In the same way that Exodus makes self-custody and payment simple for our customers, we are extending this simplicity and control to AI agents. Last week, we announced Exo Cash, powered by MoonPay, as the first stablecoin designed for AI agents. Let’s spend a moment on this because it captures how we’re thinking about agents and the future of payments. We believe that everyone is about to have hundreds of agents working for them around the clock, buying products, placing trades, managing their finances.
Exo Cash was built for this future. The stablecoin is live today, and we’re now building Agent Kit, the developer toolkit that sits on top of it. Effectively, this means that agents will be able to pay on your behalf using either stablecoins or credit cards. What’s really important is that this is funded from the customer’s Exodus Pay balance. While the keys are kept safely in Exodus, the agent never touches the keys. I can’t underscore how important this is.
The AI agents can spend dollars at any Visa or MasterCard accepting merchant, drawing from the user’s Exodus Pay balance under the limits and permissions that the consumer sets. The announcement is live at exocash.com and runs on the Monavate rails we just acquired. The broader strategy is about bringing these products to a much larger audience. At the summit, we announced that we are becoming the official payments partner of the UFC. This partnership gives Exodus Pay a major distribution channel and brings Exodus’s brand to one of the most trusted sports environments in the world, with a regular presence on screens around the world.
When hundreds of millions of UFC fans think of sending money, they’re going to think of Exodus. We’re going to kick off this partnership in June and sponsor the official Freedom 250 fight on the White House lawn. Exodus is going to be front and center of one of the biggest cultural moments of the year. For anyone who was not able to attend the summit, I would encourage you to watch it online for a more comprehensive and detailed discussion of our vision and strategy.
You can find it on our Investors page. A few thoughts on the quarter before I hand it over to James. Q1 looked a lot like Q4. Digital asset prices fell, and trading volume fell with them. This is exactly the crypto dependence I flagged on prior calls. That’s the whole reason for the work that we’re doing, shifting our business from speculation to payments. Q1 showed the limits of the old model, and the acquisitions and product launches we’re talking about today show the path to a more durable revenue model.
We’re building Exodus into a business where the direction of crypto doesn’t determine the quarter. From here, our priorities are clear: integrate Monavate and Banks, scale Exodus Pay, expand payments-related revenue, and continue building a more durable revenue model. Finally, I have to share some thank yous because none of this happens without the people behind it. I want to thank the Exodus team, our customers, and you, our investors, for your continued support.
Specifically, I want to call out our CFO James, our General Counsel Blake Rizzo, Kevin Wood, our Director of Revenue Operations, and Monavate CEO Michael Roth. They were essential in helping to work together to get to this successful transaction close and getting across the finish line. With that, I’m going to hand it over to James now, and he’s going to go through the financials.
James Gernetzke, Chief Financial Officer
Thanks, JP. Let’s start with a quick discussion on the impact of the Monavate and Banks acquisition, followed by a recap of Exodus Q1 revenue and swap volume. As we discussed at the summit, this transaction is the most important strategic move in Exodus history to date. The addition of Monavate and Banks, which I will refer to as Monavate going forward, advances the Exodus platform beyond its reliance on crypto asset prices to a full-stack finance services platform.
This benefits from expanded revenue opportunities from our direct user population and increased revenue attached to payments infrastructure. While this deal is transformative for Exodus, the final transaction is slightly different from what we announced in November. We did not acquire the W3C holding company as originally intended, but we did acquire much of the target assets and teams of Monavate and Banks. These bring over the issuer processing and card programs critical to both traditional and on-chain payment processing.
We understand many people may not appreciate the quality and size of the Monavate platform. Here are a couple of data points to highlight the platform relative to other providers, demonstrating favorable processing volumes, regulatory access points, and processing partnerships. One final slide on the transaction and how the adjusted deal changed from our originally communicated transaction back in November. We intend to have pro formas produced this quarter.
Right now, we are focused on the integration of the entities under this new transaction structure. Returning to a quick recap of our core business in Q1, revenue was $22.7 million, representing a 23% decrease from Q4 of 2025 and a 37% decline from our record first quarter in 2025. The sequential and year-over-year decline primarily reflected a materially softer Bitcoin and digital asset market with weaker overall industry volumes amid a muted retail environment.
Here’s our revenue breakout for the quarter. It’s worth noting exchange-related revenue fell below 90% in Q1. Moving on to volumes, Q1 swap volume of $1.18 billion was down 26% from Q4. Monthly active users at the end of Q1 2026 were 1.5 million, down 6% from the previous year and unchanged sequentially. Quarterly funded users, those who have placed their money with Exodus, finished the quarter at 1.4 million, down 18% from last quarter and 22% year over year.
We expect this number to rebound should we see crypto market catalysts such as legislation and as new services gain traction, such as Exodus Pay. Turning to our balance sheet, as of March 31st, we had no debt, $74 million of cash and cash equivalents, and $48 million of digital assets. The strong capital position gives us flexibility as we build the next phase of Exodus. As we have said before, we view our treasury, including our digital asset holdings, as a strategic source of capital to support M&A and other growth initiatives with the goal of increasing long-term treasury value over time.
Jack, with that, open the call to questions.
Jack Barlow, Head of Investor Relations
Thanks, James. For our Analyst Q&A session, please use the raise your hand function in Zoom to ask a question. Note, we will leave your line open should you have any follow-up questions after our response. Let’s see who we have for questions. Our first question comes through. Andrew Hart with BTIG. Andrew, go ahead.
Andrew Hart, Analyst at BTIG
Hey, thanks for the question. JP, can you kind of talk about how you see the business competing as you move from this really volatile self-custodial wallet only that’s dependent on crypto volumes to this more diverse money movement platform that you’ve talked about? How do you see yourself differentiating from the other solutions that are out there in the market?
JP Richardson, Chief Technical Officer, Founder
Andrew, just for clarity, I’m assuming you’re referring to the consumer business or are you referring to our B2B business, or do you want me to kind of touch on both?
Andrew Hart, Analyst at BTIG
I think more of the consumer business, but I guess the B2B business would be very helpful as well. But more thinking about the consumer side.
JP Richardson, Chief Technical Officer, Founder
Yes. Okay. So I think, again, from historically over the last year, the way that we’ve looked at it, the growth of Exodus is primarily, I would say, for the next six months to a year, most of our growth is going to come from partnerships. We’re going to continue to strike big partnerships as we have historically. The reason this is so important is because these partnerships have very strong distribution with very large customer bases. If you look at Ledger and Metamask, they themselves have millions of customers.
When we integrate and build ExoSwap and give ExoSwap to them as partners and customers of us, our products and technology then make it out to their customers. I think that’s really important for a growth perspective. When you look at the technology that Monavate and Banks provide, we can then bring that card technology to these partners. Back to Exodus Pay, the consumer app. For us, Exodus Pay, the consumer app, is just the beginning of shifting what people have historically seen as, ‘Oh, Exodus, the wallet, it’s a really great wallet.
It’s a really great crypto wallet.’ But now it’s a payments platform, and we’re going to continue to simplify it and remove all of the crypto complexity. A lot of the crypto wallets out there still have a lot of the crypto complexity, and you’re still focusing on, ‘Oh my gosh, I got to write down my 12-word secret phrase, oh my gosh, I got to worry if I’m on Ethereum, L2, Solana, whatever.’ When a person downloads Exodus Pay, it’s very simple. There’s actually no crypto complexity whatsoever.
That’s just the base of what we’re building on, and we’re moving the business on top of that. Then over time, as we announced back at the shareholder summit, we’re going to bring in tokenized stocks, we’re going to do a lot of things like prediction markets. The fundamental belief is this: when you look at the apps that you have on your device, on your phone, you at least have three apps, right? You have a banking app, you have a payments app, like maybe a Venmo, and then you have at least a brokerage app.
We see a future where your financial life should not be scattered across multiple apps. It really comes down to simplifying and putting them all in one app. Finally, the integration with AI agents, I think, is going to be critical for the success of our business. We are deep in this, and we’re using agents behind the scenes in Exodus to accelerate our software development. Right now, anybody in the company can go and really make changes to the product safely, of course, but again, we are so deep in this.
We’re going to make it so that consumers can easily connect Exodus Pay and then have all the functionality of Exodus safely in an AI agent. When you think of the total addressable market of being the world of 8 billion, AI agents are going to make that into the trillions. I think that’s a really important aspect of growth.
Andrew Hart, Analyst at BTIG
Thanks, JP. That’s great.
Jack Barlow, Head of Investor Relations
Our next question comes from Gareth with Caseta.
Gareth, Analyst at Caseta
Hey guys, thanks for taking the question. I just wanted to kind of double-click on the letter of intent with Visa for global card issuance. Could you maybe talk about what that means for the business and then maybe some of the priority markets you guys mentioned at the summit, like Argentina, Latin America, and then Nigeria, UAE, and the opportunity you guys see there?
JP Richardson, Chief Technical Officer, Founder
Yeah, absolutely. So really what it comes down to is that Exodus has great relationships with both MasterCard and Visa. Ultimately, at the end of the day, we’re looking to get Exodus Pay out in as many markets as possible, but being very thoughtful about it. There are a lot of growth opportunities that we see all over the world. Of course, we’ll never ignore the United States and Canada and a lot of the Western world, but I think when you look at places like South America and you look at places like Nigeria and the UAE, they all have different elements and different reasons as to why people are really seeking out crypto-type solutions, payment-type solutions. If we look down into South America and look at Argentina, we already saw this trend before we even went down this path. One of the most popular assets inside of Exodus is actually USDT on Tron. A lot of people here are going to wonder why it would be USDT on Tron. First of all, USDT, as many of you already know, is a dollar stablecoin. But why Tron? The reason people are using Tron is because in South America and Latin America, the way they’re thinking about it is on Tron, they don’t have to pay any fees for the initial transfer of the dollars.
This is why it’s so important. In Exodus Pay, consumers don’t even have to think about paying Solana gas fees or anything of that nature. In Argentina, because the Argentinian currency’s inflation is so nasty, a lot of people are really seeking out dollars, and there’s high demand there. We bring Exodus Pay to a place like Argentina, make it very simple, connect it to a card like Visa, and allow our customers and people in Argentina to easily send money to friends in a peer-to-peer way, pay for groceries with the tap to pay through Visa, and buy things that benefit their daily lives.
Over in Nigeria, Nigeria is one of the largest African countries, and we’re seeing a lot of strong crypto demand there. For Nigeria, it’s going to be for similar reasons. Nigeria is fast becoming one of the largest countries already using Exodus. We see it as an opportunity to get in there because we have Nigerians already using Exodus. The UAE is a little bit of a more different case. The reason the UAE becomes really interesting for us, specifically Dubai and Abu Dhabi, is that in these countries, you have a high count of expats, and a lot of expats and a lot of pricing of goods and services, like real estate, you will typically see in dollars.
This gives us a good inroad to have a global partnership with Visa and to do these things in these places. We see this as big opportunity in growth areas.
Gareth, Analyst at Caseta
Totally. That’s super helpful. And I know it’s still early days, but it seems like combined, this has sort of a TAM uplift, but also an economic uplift. So could you maybe talk about the economic side of the uplift and the acquisition of Monavate and how that plays into the equation?
JP Richardson, Chief Technical Officer, Founder
Yeah, so we have not, as you can imagine, we have not given any added guidance since our discussion in November, and the deal has changed. But we absolutely see, and I believe in the summit we talked about 2027 as a timeframe, and we expect about 40% plus of our revenue to start coming through the Monavate platform in 2027. In the short term, here we are, we’re actively integrating, and we’ll obviously have more here shortly as we get through a quarter or two.
We’ll definitely be able to give you a lot more color here, especially once we get those pro formas out. I would just note on the previous question, there are some advantages to local issuing. It’s one of the advantages that Monavate has over some of the other platforms, as you saw in my slides. The global issuing basically just helps round out that platform. So I guess the ultimate answer to that question is we absolutely see strong future economic impact here, but we’ll be giving more color and clarity over the next quarter or two.
Gareth, Analyst at Caseta
Awesome. Thanks, guys. Thanks for all the questions.
Jack Barlow, Head of Investor Relations
Thanks, Gareth. Our next question comes from Mike Grindal with Northline.
Mike Grindal, Analyst at Northline
Hey, thanks, guys. Maybe the first one for James. I think I saw on one of your slides, the original purchase price was $175 million. Now it looked like it was about $108 million. Can you mention again why it’s lower and what assets or businesses you did not receive?
James Gernetzke, Chief Financial Officer
It’s lower for a number of reasons. If you watched how this played out with the note that we did in the original transaction that we ended up using as a mechanism to acquire the UK entities, I think that was the first one. Then we did a separate agreement to acquire some of the other assets that we wanted. Because of that structure, there were things in the original agreement that were papered around, things like retention of employees, et cetera.
There was a Latvian company, Pixie Pay, that didn’t come over, and there were some things of that nature. We still expect that there will be more expenses related to this. They did not necessarily make it into the transaction in the same manner that the first one was. I don’t know if that gave you enough clarity.
Mike Grindal, Analyst at Northline
No, that’s a sense. And then maybe for JP, I saw the UFC announcement, but for Exodus Pay and Monavate, how would you describe your go-to-market strategy? Is this going to be a big push? Like, how is the word going to get out?
JP Richardson, Chief Technical Officer, Founder
Yeah, I mean, what’s great about the UFC is that there are 700 million fans worldwide. This partnership with the UFC, from a consumer perspective, is really big. As mentioned, we’re the official payments partner of the UFC, and that’s huge. There are a number of assets that come along with it. There are a lot of digital assets in the sense of commercials. When fights are happening, there will be Exodus Pay commercials and things like that with QR codes and activation points.
For us, I think those are all very exciting, but I think bigger than that is the aspect of B2B and hospitality. I think that’s an underrated thing. What I mean by that is, years ago, there’s a company we’re still partners with today, and I didn’t even ask them if I could say their name in advance, so I’m going to leave their name out. Before we signed a deal with them, they asked me, ‘JP, have you ever run out and experienced the F1?’ I never had.
So they invited me out to go to an F1 race, and it was incredible. Then they invited me to a courtside basketball game. It was incredible. These really high hospitality conversations and experiences, over time, helped to really develop a relationship as I got to know people at this company of really strong trust. As we entered into this UFC partnership, we’re thinking about it in that same aspect of providing hospitality and experiences to our partners and allowing them to have great experiences with us.
The UFC partnership provides a lot on the consumer side, but the aspect that I think will be great for our business is on the B2B side. In fact, I’m not going to name this partner either, but I recently invited a top executive of a partner down to a UFC match. Four seats. He thought it was amazing. He’s never experienced anything like that before. I anticipate at some point in time, we’ll continue to have really big deals with this company.
Mike Grindal, Analyst at Northline
Awesome. Maybe just one more. April and May activity. Any comment on, call it, the last five, six weeks?
James Gernetzke, Chief Financial Officer
No, we don’t necessarily have a lot of color there other than you just see the general market moves, and that’s reflected obviously in some of our volumes on the base business. We’re absolutely looking forward to seeing the impact of some of the things like cloud.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.
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