Currency Exchange International Reports Third Quarter 2025 Results

Executive Summary

• Currency Exchange International, Corp. (CXI) reported net income of $4.2 million for the third quarter of 2025, an 8% increase year-over-year, driven by strong organic growth in Payments revenue and increased trading volumes.
• The company announced the strategic cessation of operations for its wholly owned subsidiary, Exchange Bank of Canada (EBC), which is classified as a discontinued operation; regulatory approval for discontinuance is expected in Q4 2025.
• CXI completed a Normal Course Issuer Bid (NCIB) repurchasing 190,300 shares for $2.85 million during the nine-month period, with an additional 92,100 shares repurchased for $1.40 million between August 1 and September 10, 2025.

Key Details

• Q3 2025 Financial Performance:
  • Reported Net Income: $4.2 million (Up 8% YoY).
  • Reported EBITDA: $8.1 million (Up 4% YoY).
  • Diluted EPS: $0.67 (Up 14% YoY).
  • Adjusted Net Income: $4.1 million (Down 10% YoY, excluding restructuring and discontinued operation impacts).
  • Adjusted Diluted EPS: $0.66 (Down 4% YoY).
  • Total Revenue: $21.3 million (Up 7% YoY).
  • Banknotes Revenue: $0.7 million increase (4% YoY).
  • Payments Revenue: $0.6 million increase (24% YoY).
• Discontinued Operations (Exchange Bank of Canada):
  • Net loss from EBC: $1.0 million.
  • Restructuring credit related to discontinued operations: $0.1 million.
  • EBC operations ceased on February 18, 2025; application to discontinue from the Bank Act expected in Q4 2025.
  • Estimated annualized cost impact on continuing operations: ~$3 million after tax.
• Share Repurchases (NCIB):
  • Nine-month period ended July 31, 2025: 190,300 shares purchased for $2.85 million.
  • August 1 – September 10, 2025: 92,100 shares purchased for $1.40 million.
  • Total year-to-date repurchases: 282,400 shares for $4.25 million.
• Operational Highlights (Q3 2025):
  • Processed 51,727 payment transactions representing $1.77 billion in business (vs. 40,859 transactions/$1.36 billion in prior year).
  • Opened new company-owned location in Scottsdale, Arizona.
  • Added 138 new non-airport locations across the United States.
  • Added 31 new financial institutions clients in the U.S. banknotes market.
• Balance Sheet Strength:
  • Total Equity: $83.8 million (as of July 31, 2025).
  • Net Working Capital: $67.6 million (as of July 31, 2025).
• Listing Update:
  • Shares commenced trading on the OTCQX Best Market under symbol CURN on May 20, 2025.

Notable Quotes

• "CXI delivered positive results in the third quarter, driven by growth in its Payments and Banknotes business segments, highlighting the resilience of our diversified business model and strong capital position. We continue to leverage and invest in technology, pursue strategic growth initiatives, and maintain disciplined expense management." — Randolph Pinna, CEO