Exodus cost cuts and payments push support path to breakeven, StoneX says
Exodus Movement is leaning on a lower cost base and a growing payments business to counter slower activity in its core crypto wallet operations. StoneX maintains a Buy rating and a $12 price target, arguing the company is moving closer to adjusted breakeven as annual savings build toward 2027.
Highlights
- Exodus beat Q3 revenue estimates with $32.5 million and narrowed its adjusted EBITDA loss to $3.9 million from $6.7 million sequentially.
- Headcount reduction from 326 to 214 employees is projected to generate about $30 million in annual savings by 2027, improving operational leverage.
- Payments business contributed nearly $11 million in Q3, offsetting a 29% year-over-year drop in wallet revenue to $21.6 million following Monavate and Baanx acquisitions.
Analyst view on earnings and cost savings
As reported by The Block, StoneX kept a Buy rating and a $12 price target for Exodus on Thursday after the company’s latest quarterly results showed stronger revenue and a narrower adjusted EBITDA loss.StoneX analyst Mark Palmer wrote that Exodus’ expansion into payments and lower operating costs are helping offset weaker performance in its legacy wallet business. Shares were up more than 8% to $4.68 on Thursday morning, and StoneX said its $12 target implies about 150% further upside.
Exodus reported third-quarter revenue of $32.5 million on Monday, ahead of analyst estimates of $29 million to $31 million. Its adjusted EBITDA loss narrowed to $3.9 million from $6.7 million in the second quarter, while net loss totaled $8.3 million.
The company also reduced headcount to 214 employees from 326 between May and Monday’s earnings report. Management expects that move to generate roughly $30 million in annual savings going into 2027.
Payments growth offsets wallet weakness
Payments contributed nearly $11 million in their first full quarter after Exodus acquired Monavate and Baanx in May. That growth helped balance a 29% year-over-year decline in wallet-related revenue to $21.6 million.Exodus said about 64% of payments revenue comes from traditional payments, with the remaining 36% tied to onchain finance. CEO JP Richardson said on Monday’s earnings call that the lower cost base gives the company room to grow revenue if exchange volumes improve without a matching rise in overhead.
Still, Richardson said several company milestones remain tied to regulatory approvals and execution. Exodus is awaiting approval in Latvia to resume issuing payment cards in Europe, while the company said card issuance has already resumed in the U.S.
As we previously wrote, Nasdaq 100 volatility was in focus as traders positioned ahead of major earnings and potential Fed decisions.
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