Currency Exchange International Reports First Quarter 2026 Results

Executive Summary

• Currency Exchange International reported Q1 2026 revenue of $15.4 M (flat YoY) and net income of $1.5 M, an 88% increase year‑over‑year.
• Adjusted EBITDA rose to $3.8 M (up 1% YoY); adjusted net income climbed 84% to $1.9 M; adjusted diluted EPS increased 100% to $0.32.
• Payments revenue grew 49% (+$1.4 M) while Banknotes revenue fell 11% (‑$1.4 M); the company also repurchased and cancelled 151,000 common shares for $2.5 M under its NCIB.

Key Details

• Revenue: $15.4 M (unchanged YoY).
• Segment performance: Payments revenue +49% (+$1.4 M) driven by a 46% rise in trading volume and new customer onboarding; Banknotes revenue –11% (‑$1.4 M) due to reduced international travel and higher sourcing costs.
• EBITDA: Reported $3.3 M (‑14% YoY); Adjusted $3.8 M (+1% YoY).
• Net Income: Reported $1.5 M (↑88% YoY); Adjusted $1.9 M (↑84% YoY).
• Diluted EPS: Reported $0.25 (up from $0.13/0.12 prior year); Adjusted $0.32 (up from $0.17/0.16 prior year).
• Non‑recurring items: Restructuring charge $0.1 M (Miami vault closure) and stock‑based compensation $0.3 M. Excluding these, adjusted net income from continuing operations was $2.1 M (+29% YoY).
• Equity & Liquidity: Total equity $84 M; Net working capital $74 M as of Jan 31 2026.
• Share repurchase: 151,000 shares cancelled for $2.5 M under Normal Course Issuer Bid.
• Discontinued operation: Exchange Bank of Canada (EBC) classified as discontinued in Q2 2025; liquidation plan underway with estimated $3 M after‑tax annualized cost to CXI.
• Operational highlights: Processed 59,804 payment transactions ($2.16 B) vs. 43,415 transactions ($1.47 B) prior period; added Nevada to OnlineFX network (now licensed in 47 states + DC); secured 21 new wholesale banknote institutional clients.
• Management commentary: CEO Randolph Pinna emphasized growth in Payments, continued expansion of branch/network footprint, and focus on revenue growth despite geopolitical uncertainty.
• Conference call: Scheduled for Thu Mar 12 2026 at 8:30 AM EST (Toll‑Free +1 800 717 1738, Conf ID 93504).
• Annual General Meeting: Tue Mar 24 2026, 3:00 PM EST, Orlando, FL.

Notable Quotes

“CXI performed well in the first quarter of the new fiscal year… Payments experienced significant growth, underscoring CXI's continued commitment to expanding digital payment streams.” – Randolph Pinna, CEO

Materiality Assessment: Material – Positive (significant earnings improvement and operational growth disclosed).