Q2 2025 Bitcoin Depot Inc Earnings Call

Speaker #3: Good morning and welcome to Bitcoin Depot's second quarter 2025 conference call. My name is John and I will be your operator for today. Before this call, Bitcoin Depot issued its Q2 results in a press release.

John (Operator): Good morning and welcome to Bitcoin Depot Inc.'s second quarter 2025 conference call. My name is John and I will be your operator for today. Before this call, Bitcoin Depot Inc. issued its Q2 results in a press release. A copy will be furnished in a report on Form 8-K filed with the SEC and will be available in the Investor Relations section of the company's website. Joining us on today's call are Bitcoin Depot Inc.'s CEO, Brandon Mintz, and CFO, David Gray. Following their remarks, we will open the line for questions. Before we begin, Cody Slach from Gateway Group will make a brief introductory statement. Mr. Slach, please proceed.

Speaker #3: A copy will be furnished in a report on Form 8-K filed with the SEC and will be available in the Investor Relations section of the company's website.

Speaker #3: Joining us on today's call are Bitcoin Depot's CEO, Brandon Mintz, and CFO, David Gray. Following their remarks, we will open the line for questions.

Speaker #3: Before we begin, Cody Slach from Gateway Group will make a brief introductory statement. Mr. Slach, please proceed.

Speaker #4: Thank you, operator. Good morning, everyone. Before management begins their formal remarks, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties.

Cody Slach: Thank you, operator. Good morning, everyone. Before management begins their formal remarks, we would like to remind everyone that some statements we are making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a few factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission. You disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

Speaker #4: As a result, we caution you that there are a few factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements.

Speaker #4: For more detailed risks, uncertainties, and assumptions, relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission.

Speaker #4: We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

Speaker #4: We also discuss non-GAAP financial metrics and encourage you to read our disclosures in the reconciliation tables to applicable GAAP measures and our earnings release carefully as you consider these metrics.

Cody Slach: We also discuss non-GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties identified under the caption "Risk Factors" in our recent filings. You may get Bitcoin Depot Inc.'s Securities and Exchange Commission filings for free by visiting the SEC website at sec.gov. I'd like to remind everyone this call is being recorded and will be available for replay via a link in the Investor Relations section of Bitcoin Depot Inc.'s website. A supplemental earnings presentation highlighting our performance has also been made available on our IR website.

Speaker #4: We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances including but not limited to risks and uncertainties identified under the caption 'Risk Factors' in our recent filings.

Speaker #4: You may get Bitcoin Depot's Securities and Exchange Commission filings for free by visiting the SEC website at sec.gov. I'd like to remind everyone this call is being recorded and will be available for replay via a link in the Investor Relations section of Bitcoin Depot's website.

Speaker #4: A supplemental earnings presentation highlighting our performance has also been made available on our IR website. Now, I will turn the call over to Bitcoin Depot's CEO, Brandon Mintz.

Cody Slach: Now I will turn the call over to Bitcoin Depot Inc.'s CEO, Brandon Mintz. Brandon?

Speaker #4: Brandon?

Speaker #5: Thanks, Cody, and good morning, everyone. Thank you for joining our second quarter 2025 earnings call. Bitcoin Depot delivered another strong quarter with revenue increasing 6% year-over-year and a near threefold increase in net income to $12.3 million.

Brandon Mintz: Thanks, Cody, and good morning, everyone. Thank you for joining our Q2 2025 earnings call. Bitcoin Depot Inc. delivered another strong quarter with revenue increasing 6% year-over-year and a near three-fold increase in net income to $12.3 million. Consumer demand remained quite strong in the quarter, with median transaction size up 30% year-over-year to $300 and total transaction volume moving steadily higher to $172.1 million. This performance demonstrates the strength of our operating model, the success of our kiosk optimization strategy, and the powerful cash flow we can generate once fixed costs are covered. Let me provide more details on this performance. Our kiosk growth and optimization plan continued to show the intended results as Q2 gross profit was up 32% year-over-year and adjusted EBITDA was up 46% to $18.5 million. These results could continue as the strategy unfolds.

Speaker #5: Consumer demand remained quite strong in the quarter, with median transaction size up 30% year-over-year to $300. And total transaction volume moving steadily higher to $172.1 million.

Speaker #5: This performance demonstrates the strength of our operating model, the success of our kiosk optimization strategy, and the powerful cash flow we can generate once fixed costs are covered.

Speaker #5: Let me provide more details on this performance. Our kiosk growth and optimization plan continued to show the intended results, as Q2 gross profit was up 32% year-over-year, and adjusted EBITDA was up 46% to $18.5 million.

Speaker #5: These results should continue as the strategy unfolds. We ended Q2 with approximately $9,000 active machines and expect to see continued growth in kiosks for the remainder of the year.

Brandon Mintz: We ended Q2 with approximately 9,000 active machines and expect to see continued growth in kiosks for the remainder of the year. As for our BPM relocation strategy, today, 3,300 of our kiosks have been installed for less than one year. As these machines ramp up, we expect to drive further cash flow as our Bitcoin ATMs typically see payback periods of less than eight months, regardless of Bitcoin price. Now turning to an update on our growth strategy. First, international expansion. We have now deployed over 200 kiosks to support our ongoing launch in Australia this year. Australia continues to emerge as a global hotspot for Bitcoin adoption, currently ranking third worldwide in total Bitcoin ATMs. While it's still early, we are encouraged by the retail partnerships and expansion opportunities we have identified so far.

Speaker #5: As for our BTM relocation strategy, today $3,300 of our kiosks have been installed for less than one year. As these machines ramp up, we expect to drive further cash flow as our Bitcoin ATMs typically see payback periods of less than eight months, regardless of Bitcoin price.

Speaker #5: Now, turning to an update on our growth strategy. First, international expansion. We have now deployed over 200 kiosks to support our ongoing launch in Australia this year.

Speaker #5: Australia continues to emerge as a global hotspot for Bitcoin adoption. Currently ranking third worldwide in total Bitcoin ATMs. While it's still early, we are encouraged by the retail partnerships and expansion opportunities we have identified so far.

Speaker #5: Beyond Australia, we are actively evaluating entry into at least two additional countries in 2025. Next is scaling our domestic footprint. We continue to deploy kiosks from the large inventory we've secured last year.

Brandon Mintz: Beyond Australia, we are actively evaluating entry into at least two additional countries in 2025. Next is scaling our domestic footprint. We continue to deploy kiosks from the large inventory we secured last year. Once fully deployed, these units could bring our total active fleet to approximately 10,000 kiosks. This will enhance our reach and support further efficiencies across the business. Given the strength of our business and our improving balance sheet, strategic M&A is also an opportunity to scale both domestically and internationally. In fact, in the second quarter, we acquired the assets of Telecoin, a crypto ATM operator based in New Orleans. Telecoin's locations give us a stronger presence in the Gulf South, and we can immediately apply our scale and experience to operate their machines more efficiently.

Speaker #5: Once fully deployed, these units could bring our total active fleet to approximately 10,000 kiosks. This will enhance our reach and support further efficiencies across the business.

Speaker #5: Given the strength of our business and our improving balance sheet, strategic M&A is also an opportunity to scale both domestically and internationally. In fact, in the second quarter, we acquired the assets of Telecoin, a crypto ATM operator based in New Orleans.

Speaker #5: Telecoin's locations, give us a stronger presence in the Gulf South and we can immediately acquire, scale, and experience to operate their machines more efficiently.

Speaker #5: This acquisition is part of our broader effort to consolidate a fragmented market and extend our leadership in cash-to-crypto access. Turning to corporate and financial governance, we've made several key enhancements.

Brandon Mintz: This acquisition is part of our broader effort to consolidate a fragmented market and extend our leadership in cash to crypto access. Turning to corporate and financial governance, we have made several key enhancements. We appointed Philip Brown as our new Chief Compliance Officer to strengthen our regulatory capabilities and oversight. We are actively engaged with regulators, including Fenton and various state agencies, to help shape a responsible future for the industry. Our strong compliance infrastructure, including rigorous KYC/AML protocols, continues to serve as a competitive advantage. We also simplified our corporate structure by eliminating the up-sea corporate structure, which has simplified our cap table and reduced our effective cash tax rate by roughly 12%. Additionally, we continue to strategically add Bitcoin to our treasury, reinforcing our commitment to long-term value creation.

Speaker #5: We appointed Philip Brown as our new Chief Compliance Officer to strengthen our regulatory capabilities and oversight. We are actively engaged with regulators including Fencen and various state agencies to help shape a responsible future for the industry.

Speaker #5: Our strong compliance infrastructure including rigorous KYC and AML protocols continues to serve as a competitive advantage. We also simplified our corporate structure by eliminating the upsea corporate structure which has simplified our cap table and reduced our effective cash tax rate, by roughly 12%.

Speaker #5: Additionally, we continue to strategically add Bitcoin to our treasury, reinforcing our commitment to long-term value creation. With nearly $60 million in combined cash and digital assets and a strengthened balance sheet, we are well positioned for future growth and operational excellence.

Brandon Mintz: With nearly $60 million in combined cash and digital assets and a strengthened balance sheet, we are well positioned for future growth and operational excellence. With that, I will now turn it over to our CFO, David Gray, who will walk through our financial results in more detail. David?

Speaker #5: With that, I will now turn it over to our CFO, David Gray, who will walk through our financial results in more detail. David?

Speaker #6: Thanks, Brandon, and good morning, everyone. I'm pleased to share the financial highlights of our second quarter. Revenue was $172.1 million up 6% from the second quarter of 2024, and up 5% sequentially.

David Gray: Thanks, Brandon, and good morning, everyone. I am pleased to share the financial highlights of our second quarter. Revenue was $172.1 million, up 6% from the second quarter of 2024 and up 5% sequentially. This growth was driven primarily by increased kiosk deployment and higher median transaction prices, reflecting strong consumer demand as well as the results of our kiosk redeployment efforts. Gross profit in the second quarter of 2025 increased 32% to $30.9 million compared to $23.4 million in the second quarter of 2024. Gross margin in the second quarter increased 360 basis points to 17.9% compared to 14.3% in the second quarter of last year. This margin increase was largely driven by revenue outperformance and pricing optimization. Total operating expenses declined 9% to $17.0 million compared to $18.8 million in last year's second quarter.

Speaker #6: This growth was driven primarily by increased kiosk deployment and higher median transaction prices. Reflecting strong consumer demand as well as the results of our kiosk redeployment efforts.

Speaker #6: Gross profit in the second quarter of 2025 increased 32% to $30.9 million compared to $23.4 million in the second quarter of 2024. Gross margin in the second quarter increased 360 basis points to $17.9% compared to $14.3% in the second quarter of last year.

Speaker #6: This margin increase was largely driven by revenue outperformance and pricing optimization. Total operating expenses declined 9% to $17.0 million compared to $18.8 million in last year's second quarter.

Speaker #6: The improvement was attributable to lower depreciation insurance and share-based compensation expenses as we continue to optimize our cost structure as a steady-state public company.

David Gray: The improvement is attributable to lower depreciation, insurance, and share-based compensation expenses as we continue to optimize our cost structure as a steady-state public company. Specifically, we have saved multiple million dollars on an annual basis by reducing costs related to our third-party legal costs, audit services, and insurance. GAAP net income for the second quarter of 2025 increased 183% to $12.3 million compared to $4.4 million for the second quarter of 2024. GAAP net income attributable to common shareholders increased to $6.1 million, or $0.16 per share, compared to a net loss of $2.6 million, or -$0.13 per share in last year's second quarter. The increase was due to higher revenue and income from operations in 2025, as well as a $2.3 million mark-to-market gain on the company's BTC investment holdings.

Speaker #6: Specifically, we have saved multiple million dollars on an annual basis by reducing costs related to our third-party legal costs, audit services, and insurance. GAAP net income for the second quarter of 2025 increased 183% to $12.3 million compared to $4.4 million for the second quarter of 2024.

Speaker #6: GAAP net income attributable to common shareholders increased to $6.1 million or $0.16 per share compared to a net loss of $2.6 million or negative $13.00 per share in last year's second quarter.

Speaker #6: The increase was due to higher revenue and income from operations in 2025, as well as a $2.3 million mark-to-market gain on the company's BTC investment holdings.

Speaker #6: Adjusted EBITDA, a non-GAAP measure, increased 46% to $18.5 million in the second quarter of 2025, compared to $12.7 million in the second quarter of last year.

David Gray: Adjusted EBITDA, a non-GAAP measure, increased 46% to $18.5 million in the second quarter of 2025 compared to $12.7 million in the second quarter of last year. This increase was primarily due to revenue outperformance and margin expansion. Now turning to our balance sheet and cash flow. Cash equivalents in cryptocurrencies as of June 30th, 2025, increased to $59.6 million compared to $31.0 million at the end of 2024. The company used $0.6 million in the second quarter of 2025 to acquire six more Bitcoin, bringing the total held for investment to $100.35 BTC. We generated $26.4 million of cash from operating activities in the first half of 2025, more than doubling the $11.5 million generated in the first half of 2024. Please note, during the quarter, $8.9 million was paid in connection with the elimination of our up-sea structure transaction.

Speaker #6: This increase was primarily due to revenue outperformance and margin expansion. Now turning to our balance sheet and cash flow. Cash, cash equivalents in cryptocurrencies as of June 30th, 2025, increased to $59.6 million compared to $31.0 million at the end of 2024.

Speaker #6: The company used $0.6 million in the second quarter of 2025 to acquire six more Bitcoin bringing the total held for investment to $100.35 BTC.

Speaker #6: We generated $26.4 million of cash from operating activities in the first half of 2025, more than doubling the $11.5 million generated in the first half of 2024.

Speaker #6: Please note, during the quarter, $8.9 million was paid in connection with the elimination of our upsea structured transaction. This was offset by $12 million in equity proceeds via our ATM offering.

David Gray: This was offset by $12 million in equity proceeds via our ATM equity offering. We view the ATM as an opportunistic and efficient way of raising capital to fuel our capital allocation strategy, which could include strategic M&A or accelerated debt paydown. Debt, which includes a term loan, finance leases, and profit share arrangements, was $69.7 million at quarter end, compared to $60.9 million at the end of 2024. Of the total debt balance, $25 million is our term loan on which we made a voluntary accelerated principal payment of $5 million during the quarter, and we are evaluating paying down additional principal by year-end, depending on M&A opportunities. The paydown of the term loan balance was more than offset by the expansion of our profit share franchise arrangements in the quarter.

Speaker #6: We view the ATM as an opportunistic and efficient way of raising capital to fuel our capital allocation strategy which could include strategic M&A, or accelerated debt paydown.

Speaker #6: Debt, which includes term loans, finance leases, and profit share arrangements, was $69.7 million at quarter-end, compared to $60.9 million at the end of 2024.

Speaker #6: Of the total debt balance, $25 million is our term loan on which we made a voluntary accelerated principal payment of $5 million during the quarter.

Speaker #6: And we are evaluating paying down additional principal by year-end, depending on M&A opportunities. The paydown of the term loan balance was more than offset by the expansion of our profit share franchise arrangements in the quarter.

Speaker #6: These agreements entail an upfront lump sum payment to the company by our partners, in exchange for a portion of future profits generated from a specified group of kiosks for a specified period of time.

David Gray: These agreements entail an upfront lump sum payment to the company by our partners in exchange for a portion of future profits generated from a specified group of kiosks for a specified period of time. Because we continue to operate and typically retain title on the machines, we must account for these arrangements as debt under U.S. GAAP. We currently do not anticipate further expansion of the profit share program going forward. Now turning to our operations, we anticipate Q3 revenues to grow in high single digits on a percentage basis compared to Q3 of 2024, and adjusted EBITDA growth of 20% to 30% versus the prior year quarter. We remain committed to additional operational enhancements to drive profitable growth going forward, including improving vendor pricing, lowering professional service costs, and optimizing customer markups. We are focused on optimizing the business for profitability and positive cash flow ahead.

Speaker #6: Because we continue to operate and typically retain title on the machines, we must account for these arrangements as debt under US GAAP. We currently do not anticipate further expansion of the profit share program going forward.

Speaker #6: Now turning to our outlook. We anticipate Q3 revenues to grow in high single digits on a percentage basis compared to Q3 of 2024. And adjusted EBITDA growth of 20% to to 30% versus the prior year quarter.

Speaker #6: We remain committed to additional operational enhancements to drive profitable growth going forward, including improving vendor pricing, lowering professional service costs, and optimizing customer markups.

Speaker #6: We are focused on optimizing the business for profitability and positive cash flow ahead. With that, we are now happy to take your questions. Operator?

David Gray: With that, we are now happy to take your questions. Operator?

Speaker #3: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. As a reminder, in order to ask a question, please press star followed by the number one on your telephone keypad.

John (Operator): Thank you. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, in order to ask a question, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. We will pause for a moment to compile the Q&A roster. Thank you. Our first question comes from the line of Mike Grundel with Northland Capital Markets. Please go ahead.

Speaker #3: And if you would like to withdraw your questions, you please press star one again. We will pause for a moment to compile the Q&A roster.

Speaker #3: Thank you. Our first question comes from the line of Mike Rundle with Northland Capital Markets. Please go ahead.

Speaker #7: Hey guys, thank you. Could you talk a little bit about revenue per ATM trends? Anything on the cohorts from earlier years? And then how many kiosks remain in inventory?

Mike Grundel: Hey, guys. Thank you. Could you talk a little bit about revenue per ATM trends? Anything on the cohorts from earlier years, and then how many kiosks remain in inventory?

Speaker #3: Hey Mike, this is Scott.

Cody Slach: Hey, Mike. This is Scott. Revenue per ATM, as we have talked about in the past, it is a tough one to nail down exactly because there are so many new kiosks and with the rest of the fleet aging. But generally, if we look at the mature kiosks, we did see improvement in those kiosks this quarter, and that is a large part of what drove the growth, with the new kiosks expected to continue to ramp up. What was the second part of your question again?

Speaker #8: revenue per ATM, it's as we've talked about in the past, right? It's a it's a tough one to nail down exactly because there's so many new kiosks and with the rest of the fleet aging.

Speaker #8: But generally, if we look at the mature kiosks, we did see improvement in those kiosks this quarter, and that's a large part of what drove the growth.

Speaker #8: With the new kiosks, we expect to continue to ramp up. And what was the second part of your question again?

Speaker #7: is there anything on a cohort basis you can share with us? You have that slide in the deck, but it's really as of '24.

Mike Grundel: Is there anything on a cohort basis you can share with us? You have that slide in the deck, but it is really as of 2024. Anything in the first half of 2025 you have seen on cohorts? And then how many kiosks are still in inventory?

Speaker #7: Anything on the first half of '25 you've seen on cohorts? And then how much?

Speaker #8: We haven't done a site visit or seen the inventory.

Speaker #7: Yeah.

Speaker #8: Yeah, we haven't done us past cohort analysis. but we we could definitely do that and talk about it going forward for you. The number in inventory still, David, I don't know if you have that from the Q better than I have it on top of my head, but there you go.

Cody Slach: Yeah, we haven't done a path cohort analysis, but we could definitely do that and talk about it going forward for you. The number in inventory still, David, I don't know if you have that from the queue.

Mike Grundel: Gotcha.

Cody Slach: Better than I have off the top of my head, but there you go, 1,700.

Speaker #8: 1,700.

Speaker #6: Yeah, 1,700.

Mike Grundel: Yeah, 1,700. And then maybe two more. Do you have, you know, you were 8,900 at the end of June. Do you have a rough goal for the end of the year or year-end 2026 and then kind of your gross profit outlook?

Speaker #7: And then maybe two more. Do you have, you know, you were 8,900 at the end of June. Do you have a rough goal for the end of the year or year-end 2026?

Speaker #7: And then, kind of your gross profit outlook.

Speaker #8: So we don't have a goal as far as a number of kiosks because there's so many factors around how many we'll remove versus how many new ones we're going to install.

Cody Slach: We do not have a goal as far as the number of kiosks because there are so many factors around how many we will remove versus how many new ones we are going to install. We do not anticipate buying additional kiosks in 2025. The max we could deploy would be a good portion of that number David said we have in inventory. As far as gross profit outlook, I think we will probably be able to hold this level for a while. I do not see it growing materially on a percentage basis, especially as we head into the back half of the year when, as we have said historically, Q2 is the best quarter revenue-wise. The margin on a percentage basis will probably hold steady or decline slightly going into the end of the year.

Speaker #8: but we don't anticipate buying additional kiosks in 2025. So the max we could deploy would be a good portion of that number, David said we have in inventory.

Speaker #8: As far as gross profit outlook? I think we'll probably be able to hold this level for a while. I don't see it growing materially on a percentage basis.

Speaker #8: especially as we head into the back half of the year when as we've said historically, Q2 is the the best quarter revenue-wise. so the margin on a percentage basis will probably hold steady or decline slightly going into the end of the year.

Speaker #8: And then we should see it pick up again going into '26. Just like we have historically on an annual seasonality basis.

Cody Slach: We should see it pick up again going into 2026, just like we have historically on an annual seasonality basis.

Speaker #7: Okay. Thank you.

Mike Grundel: Okay. Thank you.

Speaker #3: Your next question comes from the line of Mike Kolonesev at H.C. Wainwright. Please go ahead.

John (Operator): Your next question comes from the line of Mike Kolonezev at HD Wainwright. Please go ahead.

Speaker #9: Hey, good morning guys, and thank you for taking my questions. first one for me, if you could talk through some of the assumptions underpinning your revenue and adjusted EBITDA outlook for the year.

Mike Kolonezev: Hey, good morning, guys, and thank you for taking my questions. First one's for me. If you could talk through some of the assumptions underpinning your revenue and adjusted EBITDA outlook for the year, it looks like you expect top line growth to accelerate in Q3 versus Q2. So I was wondering if you could just unpack that a bit.

Speaker #9: It looks like you expect top-line growth to accelerate in Q3 versus Q2. So I was wondering if you could just unpack that a bit.

Speaker #7: Yeah, it's so top-line growth has been pretty strong, and it's driven largely by the number of kiosks we have in operation and the maturity of the existing kiosks ramping up in performance.

Cody Slach: Yeah. So the top line growth has been pretty strong, and it is driven largely by the number of kiosks we have in operation and the maturity of the existing kiosks ramping up in performance. As far as projections for that, I think David Gray talked about that toward the end of his script where we are expecting high single digits growth of top line revenue. Again, that will be driven by just the same store sales improving as kiosks mature and us continuing to work down that kiosk inventory and adding more kiosks into the operation of the fleet. On the EBITDA side, the growth will largely be driven by that top line as well. We think our cost structure at the SG&A level has come down a lot, as we have shown over the past year, year and a half.

Speaker #7: As far as projections for that, I think David talked about it toward the end of his script, where we're expecting high single-digit growth of top-line revenue.

Speaker #7: And again, that'll be driven by just the same store sales improving as kiosks mature and and us continuing to work down that kiosk inventory and adding more kiosks into the operation of the fleet.

Speaker #8: And And on the EBITDA side, the growth will largely be driven by that top-line as well. We think our cost structure at the SG&A level has come down a lot as we've shown over the past year, year and a half.

Speaker #8: And we think these levels can be sustained and potentially even lowered further. and so that'll drive the the more rapid EBITDA growth relative to the revenue growth as we continue to optimize the cost structure.

Cody Slach: We think these levels can be sustained and potentially even lowered further. That will drive the more rapid EBITDA growth relative to the revenue growth as we continue to optimize the cost structure.

Speaker #9: Got it. Thanks, Scott. So it sounds like a combination of kiosks being deployed from inventory, along with the maturation of existing kiosks, is driving that acceleration.

Mike Kolonezev: Got it. Thanks, Scott. So it sounds like a combination of kiosks being deployed from inventory along with the maturation of existing kiosks driving that acceleration. Okay. As a follow-up.

Speaker #9: Okay. And as a follow-up, okay. And as a follow-up, Brandon, I know you mentioned the international expansion being a continued focus for you guys.

Cody Slach: That's right.

Mike Kolonezev: Okay. As a follow-up, Brandon, I know you mentioned the international expansion being a continued focus for you guys, and you are talking to potentially two new countries being added at some point this year. I guess what needs to happen before you have the conviction, confidence, or the ability to move forward with expanding into those two additional countries?

Speaker #9: And you're talking to potentially two new countries, being added at some point this year. I guess what needs to happen before you have the conviction, confidence, or the ability to move forward with expanding into those those two additional countries?

Speaker #8: Hey Mike, part of it is the Bitcoin adoption, the number of Bitcoin ATMs already there today. We're factoring in, you know, what's the PAM of some countries we're looking at.

Brandon Mintz: Hey, Mike. On that part of it is the Bitcoin adoption, the number of Bitcoin kiosks already there today. We are factoring in what is the PAM of some countries we are looking at. We also have to look at the regulatory environment. If there is a country that requires a license, then we have to go through the process to be able to secure a license or partner with somebody or acquire another operator in that country to be able to enter another international market. There are not a lot of machines in countries besides the U.S., Canada, and Australia. It is difficult to tell for sure what is going to work. We have the team in place to be able to try out a couple of options that we feel conviction in.

Speaker #8: But also, we have to look at the regulatory environment and, you know, if there's a country that requires a license, then we have to go through the process to be able to secure a license or partner with somebody or acquire another operator in that country.

Speaker #8: To be able to enter another international market. But, you know, there's not a lot of machines in countries besides the U.S., Canada, and Australia, and it's difficult to tell for sure, you know, what is going to work.

Speaker #8: But we have the team in place to be able to try out a couple of options that we feel conviction in.

Speaker #9: Great. Thanks for the call, Brandon.

Mike Kolonezev: Thanks, thanks for the call, Brandon.

Speaker #3: Your next question comes from the line of Pat McCann with Noble Capital Markets. Please go ahead.

John (Operator): Your next question comes from the line of Pat McCann with Noble Capital Markets. Please go ahead.

Speaker #10: Hey guys, thanks for taking my questions and congrats on the quarter. I also wanted to touch on the international expansion. first, could you just clarify, did you say it was 500 kiosks deployed in Australia and then secondly, with regard to Australia, I was curious you know what your plans might be to to maybe continue to add kiosks there and how you how you view how you balance the prospect of additional expansion there versus the other new international markets.

Mike Kolonezev: Hey, guys. Thanks for taking my questions and congrats on the quarter. I also wanted to touch on the international expansion. First, could you just clarify, did you say it was 500 kiosks deployed in Australia? Secondly, with regard to Australia, I was curious what your plans might be to continue to add kiosks there and how you view, how you balance the prospect of additional expansion there versus the other new international markets. Considering the size of Australia and as being, I think, population-wise larger than the state of New York, as I think you guys have talked about before, what are the factors at play when you decide what is a best use of kiosk deployments in terms of just expanding in that market versus starting up in a new international market?

Speaker #10: And you know, considering the size of Australia and as being, I think, population-wise larger than the state of New York, as I think you guys have talked about before.

Speaker #10: you know, what's what are the factors at play when you decide you know what is a a best use of kiosk deployments in terms of just expanding in that market versus starting up in a in a in a new international market?

Speaker #8: Hey Pat, good question. On Australia, we've deployed over 200 machines so far installed in locations. we have about 330, 340 total in the country.

Brandon Mintz: Hey, Pat. Good question. On Australia, we have deployed over 200 machines so far installed in locations. We have about 330, 340 total in the country. We are still focused on signing up some of the last locations to deploy the remaining machines, and then there will be a few weeks lag time after we sign them up to get them all installed. It is still really early. As you know, these machines ramp up in performance over time, and we are entering into a market where people are not familiar with our brand, which I think will make the ramp-up time for machines to be fully matured a little bit longer just because we do not have that brand awareness there and we are a newer entrant in the market, whereas other operators have been there a couple of years. We are definitely excited about the progress.

Speaker #8: So we're still focused on signing up some of the last locations to deploy the remaining machines, and then there'll be a few weeks' lag time after we sign them up to get them all installed.

Speaker #8: But it's still really early. As you know, these machines ramp up in performance over time. And we're entering into a market where people are not familiar with our brand, which I think will make the the ramp-up time for machines to be fully matured a little bit longer.

Speaker #8: Just because we don't have that brand awareness there and we're a newer entrant in the market, whereas other operators have been there a couple of years.

Speaker #8: But we're definitely excited about the progress. We see the machines are ramping up month over month in volume, consistently. In terms of adding additional machines there, it's too early right now.

Brandon Mintz: We see the machines are ramping up month over month in volume consistently. In terms of adding additional machines there, it is too early right now. It is going to be, at least several months before we can evaluate where the machines will be close to landing in terms of mature kiosks. We would not want to send more kiosks to Australia at this time. We want to definitely reserve some for those two other additional markets we are talking about and see which is the most exciting market to expand more rapidly in. I think for now, you can expect the Australia kiosk count to stay the same, but the revenue should grow every quarter for a while until the machines get a little bit more ramped up.

Speaker #8: It's going to be, you know, at least several months before we can evaluate where the machines will be close to landing in terms of mature kiosks.

Speaker #8: So we wouldn't want to send more kiosks to Australia at this time. We want to definitely reserve some for those two other additional markets we're talking about.

Speaker #8: And see which is the most exciting market to expand more rapidly in. So I think for now, you can expect the Australia kiosk count to stay the same.

Speaker #8: But the revenue should grow every every quarter for a while until the machines get a little bit more ramped up. Thanks. And then and then my other question is I I just wanted to I guess revisit California and just make sure I'm understanding the situation there correctly.

Mike Kolonezev: Thanks. My other question is, I just wanted to, I guess, revisit California and just make sure I am understanding the situation there correctly. What level of kiosks do you still potentially have left in California at this point? Has there been any traction whatsoever regarding a new bill there to kind of alleviate some of the issues there with other players not abiding by the current laws?

Speaker #8: I mean, are there what level of kiosks do you still potentially have left in California at this point? And then you know, did it has there been any traction whatsoever regarding you know, a new bill there to kind of alleviate some of the issues there with with other players not not abiding by by the current laws?

Speaker #8: In California, I believe we have less than 200 kiosks still. so just a small portion of of what we originally had. Now, the reason why we still have kiosks is because we're you know, either making some money or potentially still hoping that there is change in in legislation there.

Brandon Mintz: On California, I believe we have less than 200 kiosks still. This is a small portion of what we originally had. The reason why we still have kiosks is because we are either making some money or potentially still hoping that there is change in legislation there. We still were actively engaged in efforts to change the legislation that passed in 2023 this year. Unfortunately, we were not able to achieve any changes in that legislation, but there is a significant reduction in machine count from other operators in the state.

Speaker #8: We were still actively engaged in efforts to change the legislation that passed in 2023. Unfortunately, we were not able to achieve any changes in that legislation.

Speaker #8: But there's a significant reduction in machine count from other operators in the state so it's possible that the existing fleet we have there although there's you know, limits and a cap on on what we can charge in terms of our spread in the state.

Brandon Mintz: It is possible that the existing fleet we have there, although there are limits and a cap on what we can charge in terms of our spread in the state, it is possible that we keep this 100 to 200 machine fleet in California because maybe margins improve a little bit and top line improves as other operators leave the state.

Speaker #8: It's possible that we keep, you know, this 100 to 200 machine fleet in California because maybe margins improve a little bit and top-line improves as other operators leave the state.

Speaker #8: Great. Thanks. I appreciate it.

Mike Kolonezev: Great. Thanks. Appreciate it.

Speaker #3: Your next question comes from the line of Mike Rundle with Northland Capital Markets. Please go ahead.

John (Operator): Your next question comes from the line of Mike Grundel with Northland Capital Markets. Please go ahead.

Speaker #7: Yeah. Hey guys, just a couple of follow-ups. the relocations you did in two-Q25 would you say those were consistent with prior quarters? elevated, lower than prior quarters?

Mike Grundel: Yeah. Hey, guys. Just a couple of follow-ups. The relocations you did in Q2 2025, would you say those were consistent with prior quarters, elevated, lower than prior quarters?

Speaker #8: Yeah. Sorry, Mike. I was—go ahead, David.

Cody Slach: I am sorry, Mike. Go ahead, David.

Speaker #6: Oh, Scott, I was going to say yeah, I don't have the numbers in front of me. So I know it's somewhat similar, but Scott, if you have any more specifics?

Brandon Mintz: Scott, I was going to say, yeah, I do not have the numbers in front of me, so I know it is somewhat similar, but Scott, if you have any more specifics.

Speaker #7: No, it's pretty similar. we haven't really seen a change in the in the rate of what we're doing removals and relocations. we we think it will slow down probably going into into the fall.

Cody Slach: No, that is pretty similar. We have not really seen a change in the rate of what we are doing removals and relocations. We think it will slow down. Probably going into the fall, it is probably going to be slightly slower in terms of the number of relocations we are doing, but it has generally been pretty steady the past couple of quarters.

Speaker #7: It's probably going to be slightly slower in terms of the number of relocations we're doing, but it's generally been pretty steady the past couple of quarters.

Speaker #7: Got it. And have you disclosed that number for Q2, the number of relocations you did?

Mike Grundel: Got it. Have you disclosed that number for Q2, the number of relocations you did?

Speaker #6: I don't I don't believe we have.

Cody Slach: I do not believe we have. Yeah.

Speaker #8: Yeah.

Speaker #6: No, we haven't.

Mike Grundel: No, we haven't. Okay. David, I think you said there's $25 million of term loan left you paid off. That was after paying off $5 million during the quarter. Can you repeat what you said about year-end? Did you say you are going to consider paying that off by year-end, or was it another $5 million? I did not quite catch it.

Speaker #7: Okay. And then, David, I think you said there's $25 million of term loan left. You paid off that after paying off $5 million during the quarter.

Speaker #7: Can you repeat what you said about year-end? Did you say you're going to consider paying that off by year-end, or was it another $5 million?

Speaker #7: I didn't quite catch it.

Speaker #6: No. We didn't say a specific number. We said we you know, we're we're going to evaluate making additional accelerated payments before year end. depending on you know, the M&A environment and opportunities in that respect.

David Gray: We didn't say a specific number. We said we're going to evaluate making additional accelerated payments before year-end, depending on the M&A environment and opportunities in that respect.

Speaker #7: Got it. Got it. And then the roughly 9 million payment on the upsea structure, is that done? Is there any more that's owed there?

Mike Grundel: Got it. Got it. And then the roughly $9 million payment on the ATM equity offering structure, is that done? Is there any more that is owed there?

Speaker #6: That's done.

David Gray: That's done.

Speaker #7: That's done. Okay. I think that does it. Thank you.

Mike Grundel: That's done. Okay. I think that does it. Thank you.

Speaker #3: Again, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. The next question comes from the line of Hal Goetsch with B Riley Securities.

John (Operator): Again, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. The next question comes from the line of Hal Getch with B Riley Securities. Please go ahead.

Speaker #3: Please go ahead.

Speaker #11: Hey guys, could you guys go over again some of the reasons for you know, the really the seasonality between you know, Q2 and Q3?

David Gray: Hey, guys. Could you guys go over again some of the reasons for the seasonality between Q2 and Q3? It seems like it is a pretty big step down in average revenue per kiosk taken as a whole. That is the first question. The number of kiosks that have been less than one year have been in the 3,300 to 3,800 range for the last two to three quarters. So the 3,300 this quarter, I think it was 3,200 last quarter, 3,800 Q4. What do you anticipate that will be just on the demographic of the machines, but say by Q4? You can just kind of think about that. Maybe you kind of have a feel for that. Thanks.

Speaker #11: Seems like it's a pretty big step down and you know, average revenue per kiosk taken as a whole. That's the first question. And then you know, the number of kiosks that have been less than one year have been in the 3300 to 3800 range for the last you know, two to three quarters.

Speaker #11: So the 3300 this quarter, I think it was 3300 last quarter, 3800 Q4. You know, what do you anticipate that will be just on the demographically new machines that say by you know, Q4?

Speaker #11: You just kind of think about that. Maybe you haven't kind of have a feel for that. Thanks.

Speaker #3: Hey Hal, it's Brandon. On the step down in revenue from Q2 to Q3, we typically see this what I can say about that is is not factual.

Brandon Mintz: Hey, Hal. It's Brandon. On the step down in revenue from Q2 to Q3, we typically see this. What I can say about that is not factual. It's just what we've seen over many years now is our seasonality seems to have some correlation with tax return season. Typically, late Q1, things start ramping up quite a bit, and they trail off typically around end of Q2. What we're seeing is very regular compared to previous years. Now, in terms of the machine count that's less than a year old, you have two things feeding into that number. You have relocations and you have net new kiosks that we've deployed. We've grown the number of kiosks in our fleet quite a bit over the past year.

Speaker #3: It's just what we've seen over many years now is our seasonality seems to have some correlation with tax return season. So typically, late Q1 things start ramping up quite a bit and they trail off typically around end of end of Q2.

Speaker #3: So, what we're seeing is very regular compared to previous years. Now, in terms of the machine count that's less than a year old, so you have two things feeding into that number.

Speaker #3: You have relocations and you have net new kiosks that we've deployed. So we've grown the number of kiosks in our fleet quite a bit over the past year.

Speaker #3: So the number of kiosks that are less than a year old it's hard for that number to decline. As we're continuing to grow new kiosks.

Brandon Mintz: The number of kiosks that are less than a year old, it's hard for that number to decline as we're continuing to grow new kiosks organically. If, for example, we stopped deploying any new kiosks and we were just focused on relocations, we would expect for that kiosk within a year-old number to decline. That's not the case since we still have roughly 1,700 kiosks in inventory, as David mentioned. I don't believe that we're going to see a whole lot of decline in the number of kiosks less than a year old in the next quarter, at least.

Speaker #3: Organically. So if, for example, we we stopped deploying any new kiosks and we were just focused on relocations, they would expect for that kiosk within a year old number to decline.

Speaker #3: But that's not the case since we still have roughly 1,700 kiosks and inventory, as David mentioned. I don't believe that we're going to see a whole lot of decline in the number of kiosks less than a year old.

Speaker #3: In the next quarter, at least.

Speaker #11: Yeah, okay. And if I could ask one follow-up, I don't know if this is something you could discuss or comment on, but, you know, we've seen a tremendous amount of market capitalization created through any company.

David Gray: Yeah. Okay. If I could ask one follow-up, I do not know if this is something you could discuss or comment on, but we have seen a tremendous amount of market capitalization created through any company developing a stablecoin strategy. When I look at your offering of cash into Bitcoin, it would be terrific if there was an off-ramp from ETF to, say, a stablecoin or that I could use maybe a virtual card to spend the money. I think I brought this up before, but I wanted to get your thoughts if your thinking on that devolved. I think an on-ramp and an off-ramp back to the fiat would increase the velocity of usage of current users. I think I would probably use it more myself.

Speaker #11: You know, developing a stablecoin strategy. And when I look at your offering of cash into Bitcoin, you know, it'd be terrific if there was an offering from the app to say a stablecoin or that I could use maybe a virtual card to spend the money.

Speaker #11: I think I brought this up before, but I wanted to get your thoughts if you're thinking on that's evolved. I think I think you know, an on-ramp and an off-ramp back to the fiat would increase the velocity of usage of current users.

Speaker #11: I think I'd probably use it more myself. So on that, on that note, could you comment on if there's any thinking on developing other use cases and functionality of your of your mobile wallet and Bitcoin cash to cash to Bitcoin strategies?

David Gray: On that note, could you comment on if there is any thinking on developing other use cases and functionality of your mobile wallet and cash-to-Bitcoin strategies? Thanks.

Speaker #11: Thanks.

Speaker #3: Great question. On that, yeah, we're always doing R&D to evaluate what additional products to add either to the machine or to our wallet or even evaluating you know, potential opportunities outside of exactly what we do today.

Brandon Mintz: Great question. On that, yeah, we're always doing R&D to evaluate what additional products to add either to the machine or to our wallet. We're even evaluating potential opportunities outside of exactly what we do today in this whole cash-to-Bitcoin environment. In terms of an off-ramp, you mentioned it would be great if someone could have a virtual card and hold stablecoins or maybe even USD to spend. That's existed for probably around eight years now. We believe a portion of our users are definitely using those products from other companies because you can just link your Bitcoin in your wallet to your card, and you can spend it typically if it's a Visa card anywhere where Visa is accepted, if it's a MasterCard anywhere where MasterCard is accepted. That's not something that we're focused on providing right now in terms of the card.

Speaker #3: And this whole cash to Bitcoin environment. in terms of an off-ramp, you mentioned it would be great if someone could have a virtual card and hold stablecoins or maybe even USD on to spend.

Speaker #3: That's existed for probably around eight years now. And we believe a a portion of our users are definitely using those products from other companies.

Speaker #3: Because you can just link your your Bitcoin in your wallet to your card and you can spend it typically if it's a Visa card anywhere Visa's accepted, if it's a MasterCard anywhere where MasterCard is accepted.

Speaker #3: that's not something that we're focused on providing right now in terms of the card. We just don't believe there's enough profit to be made and we think our customer base is very well served already.

Brandon Mintz: We just don't believe there's enough profit to be made. We think our customer base is very well served already with the options out there today for an off-ramp product like that. However, we're always evaluating more non-physical off-ramp options. In terms of priority, we're always focused on where there is going to be the most profit. We don't believe focusing on building an off-ramp will be the most profitable project that we can work on at this time.

Speaker #3: With the options out there today for an off-ramp product like that. however, we're we're always evaluating more non-physical off-ramp options. But in terms of priority, we're always focused on where there is going to be the most profit.

Speaker #3: And we don't believe focusing on building an off-ramp will be the most profitable project that we can work on at this time.

Speaker #11: Okay. Thank you.

David Gray: Okay. Thank you.

Speaker #3: Anything to add? You have no further questions. That concludes the Q&A session. I would now like to turn the call back over to Brandon Mintz for closing remarks.

John (Operator): If you have no further questions, that concludes the Q&A session. I would now like to turn the call back over to Brandon Mintz for closing remarks.

Speaker #8: Thanks, everyone. I think we delivered a great quarter once again and we're excited to speak to all of you next time.

Brandon Mintz: Thanks, everyone. I think we delivered a great quarter once again, and we are excited to speak to all of you next time.

Speaker #3: Thank you for joining us today for Bitcoin Depot's conference call. You may now disconnect your lines.

John (Operator): Thank you for joining us today for Bitcoin Depot's conference call. You may now disconnect your lines.

Speaker 1: Please wait. The conference will begin shortly.