Q1 2026 Exodus Movement Inc Earnings Call

May 12, 2026

Speaker #1: Hi Marlowe, 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.

Speaker #1: 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.

Speaker #1: Actual results may vary materially, and those expressed or implied in the forward-looking statements do to a variety of factors. These factors are referenced in the forward-looking statement disclosure and our earnings release and described in more detail in our recent Form 10-K filed with the SEC, earlier this year, and is also available on our investor relations portion of our website.

Speaker #1: Do not undertake any obligation to update forward-looking statements. As always, please feel free to contact us and investors at exodus.com if you have any questions or submit your questions via our social media accounts on X or Reddit.

Speaker #1: With that, I will turn the call over to JP.

Speaker #2: Thanks, Zach. Thank you, everybody, for joining us here today. Okay. Two weeks ago, on May 1st, our team traveled from all over the world to Omaha, Nebraska, for our first shareholder day.

Speaker #2: 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.

Speaker #2: What you didn't see is, leading up to the summit, we were on calls all day and night, working on closing Monday and banks. In fact, everyone was running on a few hours of sleep, and some of our team members even pulled all-nighters.

Speaker #2: But finally, the night before the summit began, the team closed the Monovate and Banks UK deals. But Banks US was still pending. So the team spent all day on calls backstage, pushing to close the deal.

Speaker #2: And about 20 minutes before I walked on stage, we got word the deal had closed. I'll always remember this moment as we officially owned that entity.

Speaker #2: 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.

Speaker #2: Monovate and Banks strengthened our business in four important ways. First, this transaction diversifies our revenue away from the crypto trading cycle. We're adding new recurring revenue like card processing, interchange, and issuance, and settlement.

Speaker #2: Second, this adds an additional customer base that's completely separate from crypto. And customers from Monovate include all types of customers. There's a major buy now, pay later customer, and laters maritime payments.

Speaker #2: So this is revenue with no exposure to the crypto markets. Third, these acquisitions give Exodus control over more of the payments stack, from self-custody to card transaction processing payments.

Speaker #2: Finally, all under one roof. And they expand what we can offer with the Exodus Suite. Monovate and Banks bring existing relationships across MetaMask, Ledger, Kraken, and OKX.

Speaker #2: And 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, again, that we own the full payments stack.

Speaker #2: And now we are executing on this vision that we've shared with you on past calls. We have product in the market in two complete acquisitions and here's what's next.

Speaker #2: One of the biggest milestones in Q1 was launching of Exodus Pay. We're now live in all 50 states, plus Canada and parts of Europe.

Speaker #2: People can manage 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, and Exodus Pay is just the beginning.

Speaker #2: Now check this out. In the same way that Exodus makes self-custody and payments simple for our customers, we are extending this simplicity and control to AI agents.

Speaker #2: Last week, you may have seen it. We announced ExoCash 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 in the future of payments.

Speaker #2: We believe that everyone is about to have hundreds of agents working for them around the clock, buying products, placing trades, managing their finances. And ExoCash was built for this future.

Speaker #2: The stablecoin is live today, and we're now building agent can developer toolkit that sits on top of it. And so effectively, what this means is that agents will be able to pay on your behalf using either stablecoins or credit cards.

Speaker #2: And what's really important about this is that this is funded from the Exodus, from the customers' Exodus Pay balance while the keys are kept safely in Exodus.

Speaker #2: The agent never touches the keys. Again, I can't understand how important this is. AI agents can send dollars at any Visa or MasterCard accepting merchant, drawing from the user's Exodus Pay balance under the limits and permissions that the consumer set.

Speaker #2: The announcement is live at exocash.com and runs on the Monovate rails we just acquired. Now, the broader strategy is about bringing these products to a much larger audience.

Speaker #2: Which is why the summit we announced that we are becoming the official payment partner of the UFC. This partnership gives Exodus Pay a major distribution channel and also brings Exodus brand to one of the most trusted sports environments in the world.

Speaker #2: It's a regular presence on screens around the world. When hundreds of millions of UFC fans think of spending money, they're going to think of Exodus.

Speaker #2: We're going to kick off this partnership in June as the sponsor of the official Freedom 250 fight on the White House lawn. Exodus is going to be front and center at one of the biggest cultural moments of the year.

Speaker #2: So for anyone who has not been able to attend the summit, I would encourage you to watch the summit online for the more comprehensive and detailed discussion of our vision and strategy.

Speaker #2: You can find it on our investors page and some few thoughts on the core before I hand it over to James. Q1 looked a lot like Q4.

Speaker #2: Digital asset prices fell and trade volume fell with them. This is exactly the crypto dependence I flagged on prior calls. And there's a whole reason for the work that we're doing.

Speaker #2: From shifting our business from speculation to payments. In Q1, we showed the limits of the old model. And the acquisitions and products launched we're talking about today show the path to a more durable revenue model.

Speaker #2: We're building Exodus into a business, again, with a direction of crypto doesn't determine the quarter. So from here, our priorities are clear. Integrate Monovate and Banks, scale Exodus Pay, expand payments-related revenue, and continue building a more durable revenue model.

Speaker #2: But I have to share some thank yous because none of this happens without the people behind it. I want to thank Exodus team, our customers, you, our investors for your continued support, specifically want to call out our CFO, James, general accountant, Blake Rizzo, Kevin Wood, our director of revenue operations, and Monovate CEO, Michael Roth.

Speaker #2: They were essential in helping to work together to get to this successful transaction close and getting across the finish line. So, with that, I'm going to hand it over to James now, and he's going to go through the financials.

Speaker #2: James?

Speaker #1: Thanks, JP. Let's start with a quick discussion of the impact of Monovate Bank's acquisition. Followed by a recap of Exodus' Q1 revenue and swap volume.

Speaker #1: As we discussed at the summit, this transaction is the most important strategic move in Exodus history to date. The addition of Monovate Bank, which I will refer to as Monovate going forward, advances the Exodus platform beyond its reliance on crypto asset prices to full-stack finance services platform.

Speaker #1: Which 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.

Zach Barlow: I am Zach 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 risk and uncertainties and is not a guarantee of future performance. Actual results may vary materially and 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, and is also available on our investor relations portion of our website. We do not undertake any obligation to update forward-looking statements.

Zach Barlow: As always, please feel free to contact us at investors.exodus.com 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: Thanks, Zach Barlow. Thank you everybody for joining us here today. Okay. Two weeks ago on 1 May, 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 Baanx. In fact, everyone was running on a few hours of sleep, and some of our team members even pulled all-nighters. Finally, the night before the summit began, the team closed the Monavate and Baanx UK deals.

JP Richardson: Thanks, Zach. Thank you everybody for joining us here today. Okay. Two weeks ago on 1 May, 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 Baanx. In fact, everyone was running on a few hours of sleep, and some of our team members even pulled all-nighters. Finally, the night before the summit began, the team closed the Monavate and Baanx UK deals.

JP Richardson: Baanx US was still pending, the team spent all day on calls backstage pushing to close the deal. 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 Baanx 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 Baanx strengthen our business in 4 important ways. First, this transaction diversifies our revenue away from the crypto trading cycle. We're adding new recurring revenue like card processing, interchange, and issuance and settlement. Second, this adds an additional customer base that's completely separate from crypto. Customers from Monavate include all types of customers.

JP Richardson: Baanx US was still pending, the team spent all day on calls backstage pushing to close the deal. 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 Baanx 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 Baanx strengthen our business in four important ways. First, this transaction diversifies our revenue away from the crypto trading cycle. We're adding new recurring revenue like card processing, interchange, and issuance and settlement. Second, this adds an additional customer base that's completely separate from crypto. Customers from Monavate include all types of customers.

JP Richardson: There's a major buy now, pay later customer and one of the largest players in maritime payments. This is, again, this is revenue with no exposure to the crypto markets. Third, these acquisitions give Exodus control over more of the payment stack, from self-custody to card transaction processing payments, finally, all under one roof. They expand what we can offer with the ExoSuite. Monavate and Baanx 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 again that we own the full payment stack, and 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, and here's what's next.

JP Richardson: One of the biggest milestones in Q1 was launching 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 wallet to pay for groceries, and Exodus Pay is just the beginning. Now check this out. 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, you may have seen it, we announced XO 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.

JP Richardson: We believe that everyone is about to have hundreds of agents working for them around the clock, buying products, placing trades, managing their finances. XO Cash was built for this future. The stablecoin is live today. We're now building AgentKit, the developer toolkit that sits at the top of it. Effectively, what this means is that agents will be able to pay on your behalf using either stablecoins or credit cards. What's really important about this 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. Again, 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 permission that the consumer sets.

JP Richardson: The announcement is live at XOCash.com and runs on the Monavate rails we've just acquired. Now, the broader strategy is about bringing these products to a much larger audience, which is why 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 it also brings Exodus brands to one of the most trusted sports environments in the world. It's 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.

JP Richardson: For anyone who is not able to attend the summit, I would encourage you to watch the summit online for the 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. It's the whole reason for the work that we're doing from shifting our business from speculation to payment. Q1 showed the limits of the old model. The acquisitions and products launches we're talking about today show the path to a more durable revenue model. We're building Exodus into a business again where the direction of the crypto doesn't determine the quarter.

JP Richardson: From here, our priorities are clear. Integrate Monavate and Baanx, 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 Exodus team, our customers, you, our investors, for your continued support. Specifically want to call out our CFO, James, our General Counsel, Blake Rizzo, Kevin Wood, our Director of Revenue Operations, and Monavate CEO, Michael Rolph. They were essential in helping to work together to get to the 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?

Speaker #1: We did not acquire the W3C holding company as originally intended. But we did acquire much of the target assets and teams of Monovate Banks.

James Gernetzke: Thanks, JP. Let's start with a quick discussion on the impact of the Monavate Baanx 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 Baanx, 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, which 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 Baanx.

Speaker #1: These bring over the issuer, processing, and guard programs critical to both traditional and on-chain payment processing. We understand many people may not appreciate the quality and size of Monovate platform.

Speaker #1: 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.

Speaker #1: One final slide on the transaction and how the adjusted deal changed from our originally communicated transaction back in November. We tend to have pro formas produced this quarter.

Speaker #1: 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 dollars, representing a 23% decrease from Q4 of '25, and a 37% decline from our record first quarter in 2025.

James Gernetzke: 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.

Speaker #1: The sequential and year-over-year decline primarily reflected a materially soft Bitcoin and digital asset market, with weaker overall industry volumes amid a muted retail environment.

Speaker #1: Here is 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.

Speaker #1: 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 dollars, down 18% from last quarter, and 22% year-over-year.

Speaker #1: 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.

Speaker #1: Turning to our balance sheet, as of March 31st, we had no debt, 74 million of cash and cash equivalents, and 48 million dollars in digital assets.

James Gernetzke: 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 is 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.

Speaker #1: 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.

Speaker #1: The goal of increasing long-term treasury value over time. Jack, with that, let's open the call to questions.

Speaker #2: Thanks, James. For our analysts, Q&A session, please use the raise your hand function in Zoom to ask a question. And note we will leave your line open.

Speaker #2: Should you have any follow-up questions, after our response. Let's see what we have for questions. Our first question comes through Andrew Hart with BDIG.

James Gernetzke: 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 31 March, 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 in 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. Zach, with that, let's open the call to questions.

Speaker #2: Andrew, go ahead.

Speaker #3: 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?

Speaker #3: How do you see yourself differentiating from the other solutions that are out there in the market?

Speaker #1: 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?

Speaker #3: 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.

Zach Barlow: Thanks, James. For our analysts, 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.

Speaker #1: Yeah. Okay. So I think, again, from a historically over the last year, the way that we've looked at it, the growth of Exodus is primarily, I would, for the next six months to a year, most of, I think, our growth is going to come from partnerships.

Speaker #1: Right? We're going to continue to strike big partnerships as we have historically. And the reason this is so important is because these partnerships have very strong distribution with very large customer bases.

Speaker #1: If you look at, again, Ledger and MetaMask, they themselves have millions of customers. So when we integrate and build ExoSwap, and ExoSwap to them, as partners and customers of us, our products and technology then make it out to their customers.

Andrew Hart: Thanks for the question. JP, can you kind of talk about how you see the business competing as you move from this, you know, 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?

Andrew Harte: Thanks for the question. JP, can you kind of talk about how you see the business competing as you move from this, you know, 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?

Speaker #1: And so I think, again, that's really important for a growth perspective. And when you look at technology at Monovate and banks provide, we can then, again, bring that card technology to these partners.

JP Richardson: Andrew, just for clarity, I'm assuming you're referring to the consumer business, or you're referring to our B2B business, or do you want me to kind of touch on both?

Speaker #1: So back to Exodus Pay, the consumer app, for us, the Exodus Pay the consumer app is, again, it's just the beginning from shifting what people have historically seen as, "Oh, Exodus is the wallet.

Andrew Hart: I think more of the consumer business. I guess the B2B business would be very helpful as well.

Andrew Harte: I think more of the consumer business. I guess the B2B business would be very helpful as well.

JP Richardson: Yeah, I think.

Andrew Hart: More thinking about the consumer side.

Andrew Harte: More thinking about the consumer side.

JP Richardson: Yeah, okay. I think again, from historically over the last year, the way that we've looked at it, the growth of Exodus is primarily, for the next six months to a year, most of, I think, our growth is going to come from partnerships, right? We're going to continue to strike big partnerships as we have historically. The reason this is so important is because these partnerships have, you know, very strong distribution with very large customer base. It's like if you look at, again, Ledger and MetaMask, they themselves have millions of customers. When we integrate and build, you know, 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, again, that's really important for a growth perspective.

Speaker #1: 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.

Speaker #1: A lot of the crypto wallets out there, they still have a lot of the crypto complexity. And you're still focusing on, "Oh my gosh, I got to write down my 12 vert secret phrase.

Speaker #1: Oh my gosh, I’ve 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.

Speaker #1: And so that's just the base of what we're building on. And so we're moving the business on top of that. And so then over time, as we announce back at the shareholder summit, we announce they're going to bring in tokenized stocks.

Speaker #1: We announce that we're going to do a lot of things like prediction markets. So the fundamental belief is this, that when you look at the apps that you have on your device, on your phone, you at least have three apps, right?

JP Richardson: When you look at the technology that Monavate and Baanx provides, we can then, again, bring that card technology to these partners. Back to Exodus Pay, the consumer app, like for us, the Exodus Pay, the consumer app is again, it's just the beginning from shifting what people have historically seen as, Oh, Exodus, the wallet. It's a really great wallet. It's a really great crypto wallet. 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, they still have a lot of the crypto complexity, and you're still focusing on, Oh my gosh, I gotta write down my 12-word secret phrase. Oh my gosh, I gotta worry if I'm on Ethereum L2, Solana, whatever.

Speaker #1: You have a banking app, you have a payments app, like maybe a Venmo, and then you have at least a brokerage app. And so we just see a future where your financial lives should not be scattered across multiple apps.

Speaker #1: So what's really comes down to simplifying and putting them all in one app. And then finally, I know this is very long, but there's so much to discuss here, right?

Speaker #1: 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.

Speaker #1: Right? Now, anybody in the company can go and really make changes to the product and safely, of course. But again, we're so deep in this, and so we're going to make it so the consumers can easily connect to Exodus Pay and then have all the functionality of Exodus Pay safely in an AI agent.

JP Richardson: When a person downloads Exodus Pay, just, it's very simple. There's actually no crypto complexity whatsoever. That's just the base of what we're building on. We're moving the business on top of that. Over time, as we announced back at The Exodus Summit, we announced that we're going to bring in tokenized stocks. We announced that we're going to do a lot of things like prediction markets. The fundamental belief is this, that 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 like a Venmo, and then you have at least a brokerage app.

Speaker #1: And so when you think of the total addressable market of being the world of 8 billion, well, AI agents are going to make that into the trillions.

Speaker #1: And I think that's a really important aspect of growth.

Speaker #2: Thanks, JP. That was great.

Speaker #1: Jack, you're on mute.

Speaker #2: Our next question comes from Gareth with Gasetta.

Speaker #4: Hey, guys. Thanks for taking the question. I was just wanted to kind of double-click on the letter of intent with Visa for global card issuance.

Speaker #4: 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: We just 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, I know this is very long, but there's so much to discuss here. 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 and safely, of course.

Speaker #1: Yeah, absolutely. So really, what it comes down to is that Exodus has great relationships with both Mastercard and Visa. But 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.

Speaker #1: And so there's a lot of growth opportunities that we see all over the world. And of course, we'll never ignore the United States and get on a lot of the Western world.

Speaker #1: But I think when you look at places like South America, and you look at places like Nigeria, and you look at places like the UAE, they all have different elements in different reasons as to why people are really seeking out crypto-type solutions, payment-type solutions.

JP Richardson: 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 Pay safely in an AI agent. When you think of the total addressable market of being the world of 8 billion, well, AI agents are going to make that into the trillions. I think that's a really important aspect of growth.

Speaker #1: Right? If we look down into let's just start with South America, and let's look at Argentina. We already saw this trend before we even went down this path.

Andrew Hart: Thanks, JP. That was great.

Andrew Harte: Thanks, JP. That was great.

Speaker #1: One of the most popular assets inside of Exodus is actually its USDT on Tron. And a lot of people here are going to wonder, like, "Why would the USDT on Tron?" First of all, USDT, as many of you already know, is a dollar stablecoin.

JP Richardson: Zach Barlow, you're on mute.

Zach Barlow: Our next question comes from Gareth with Gacetta.

Speaker #1: 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.

[Analyst] (Gacetta): 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 Exodus Summit like Argentina, Latin America, Nigeria, UAE, and the opportunity you guys see there?

[Analyst]: 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 Exodus Summit like Argentina, Latin America, Nigeria, UAE, and the opportunity you guys see there?

Speaker #1: And this is why it's so important in Exodus Pay. Consumers don't even have to think about, "Oh, I have to pay Solana gas fees or anything of that nature." So in Argentina, the people in Argentina because of the currency is the Argentinian currency, the inflation is so nasty, right?

JP Richardson: Yeah, absolutely. Really what it comes down to is that, you know, Exodus has great relationships with both Mastercard and Visa. You know, ultimately at the end of the day that, you know, we're looking to get Exodus Pay out in as many markets as possible, but being very thoughtful about it. There's a lot of growth opportunities that we see all over the world. Of course, you know, we'll never ignore the United States and Canada and a lot of the Western world. I think when you look at places like South America, and you look at places like Nigeria, and you look at places like the UAE, they all have different elements and different reasons as to why people are really seeking out crypto type solutions, payment type solutions, right?

Speaker #1: A lot of people are really seeking out dollars. And so there's high demand there. So we bring Exodus Pay to a place like Argentina, get very simple, connect to a card like Visa, and allow our customers to easily and people in Argentina be able to easily send money to friends in a peer-to-peer way.

Speaker #1: Pay for the groceries with the tap of the pay through Visa, and again, be able to buy things that benefit their daily lives. So then over to Nigeria, we've just Nigeria is one of the largest African countries.

Speaker #1: And we're seeing a lot of strong crypto demand there. And then for Nigeria, it's going to be for similar reasons. Nigeria is fastly becoming one of the largest countries that are already using Exodus.

JP Richardson: If we look down, let's start with South America, and let's 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 gonna wonder, like, why would it be USDT on Tron? First of all, USDT, as many of you already know, is a dollar stablecoin. 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.

Speaker #1: So again, we just see it as an opportunity to get in there because we have Nigerians already using Exodus. Now, the UAE is a little bit of a more different case.

Speaker #1: And the reason the UAE becomes really interesting for us, specifically Dubai, Abu Dhabi, is that in these countries, you have a high count of expats in there, right?

Speaker #1: And a lot of expats, and a lot of the pricing of goods and services—like things like real estate—you'll typically see in dollars. So this gives it a good inroad to have a global partnership with Visa and to do these things in these places.

Speaker #1: And so we see this big opportunity in growth areas.

Speaker #4: Totally. That's super helpful. And I know it's still early days, but it seems like kind of combined this has sort of a TAM uplift, but also an economic uplift.

JP Richardson: Consumers don't even have to think about, oh, I have to pay Solana gas fees or anything of that nature. In Argentina, the people in Argentina, because of the currency is the Argentinian currency, the inflation is so nasty, right? A lot of people are really seeking out dollars. That's, 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 to easily, and people in Argentina be able to easily, again, send money to friends in a peer-to-peer way, pay for the groceries with the tap of pay through Visa, and again, be able to buy things that benefit their daily lives.

Speaker #4: So could you maybe talk about the economic side of the uplift and the acquisition of Monobet and how that plays into the equation?

Speaker #1: Yeah. So we have not, as you can imagine, we have not given any added guidance since the since our discussion in November and the deal has changed.

Speaker #1: But obviously, we absolutely see and I believe in the summit we talked about the 2027 kind of as a timeframe. And we expect about 40-ish plus percent of our revenue to start coming through the Monobet platform in 2027.

Speaker #1: 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 and we'll definitely be able to give you a lot more color here and especially once we get those proformas out.

JP Richardson: Over into Nigeria, we've just, you know, Nigeria is one of the largest African countries and we're seeing a lot of strong crypto demand there. Now for Nigeria, it's gonna be for similar reasons. Nigeria is fastly becoming one of the largest countries that were already using Exodus. Again, we just see it as an opportunity to get in there because we have Nigerians already using Exodus. Now, the UAE is a little bit of a more different case. The reason the UAE becomes really interesting for us, you know, specifically, Dubai and Abu Dhabi, is that in these countries, you have a high count of expats in there, right?

Speaker #1: I would just note on the previous question, there are some advantages to local issuing. It's one of the advantages that Monobet has over some of the other platforms, as you saw in my slides.

Speaker #1: And the global issue is 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.

Speaker #4: Awesome. Thanks, guys. Thanks for all the questions.

Speaker #3: Thanks, guys. Our next question comes from Mike Randall, Northline.

JP Richardson: A lot of expats and a lot of pricing of goods and services like things like real estate, you will typically see in dollars. This gives us a good inroads to have a global partnership with Visa and to do these things in these places. We see this as a big opportunity in growth areas.

Speaker #5: Hey, 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.

Speaker #5: Can you mention again why it's lower and what assets or businesses you did not receive?

[Analyst] (Gacetta): Totally. That, that's super helpful. I know it is still early days, but it seems like kinda combined this has sort of a TAM uplift, but also an economic uplift. Could you maybe talk about the economic side of the uplift and the acquisition of Monavate and how that plays into the equation?

[Analyst]: Totally. That, that's super helpful. I know it is still early days, but it seems like kinda combined this has sort of a TAM uplift, but also an economic uplift. Could you maybe talk about the economic side of the uplift and the acquisition of Monavate and how that plays into the equation?

Speaker #1: Sure. It's lower for a number of reasons. I mean, if you watched how this played out with the note that we did in the notes 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.

James Gernetzke: Yeah. We have not, as you can imagine, we have not given any added guidance since our discussion in November, and the deal has changed. Obviously, you know, we absolutely see, and I believe in The Exodus Summit we talked about 2027 kind of as a timeframe. You know, we expect, you know, about 40-ish +% of our revenue to start coming through the Monavate platform, you know, in 2027. In the short term here, you know, we are actively integrating. And, you know, we'll obviously have more here shortly, you know, as we get through a Q1 or 2.

Speaker #1: And then we did a separate agreement to acquire some of the other assets that we wanted. And that and because of that structure, there were things in the original agreement around that were paper around things like retention, of employees, etc.

Speaker #1: There was a lacking company, Tixie Pay, that didn't come over. And there were some things of that nature. And so we still expect that there will be more expenses related to this.

Speaker #1: It's just they did not necessarily make it into the transaction. In the same manner that the first one was. So I don't know if that was gave you enough clarity or.

James Gernetzke: We'll definitely be able to give you a lot more color here, you know, and especially once we get those pro formas out. I would just note on the previous question, you know, 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. I guess the ultimate answer to that question is, you know, we absolutely see, you know, strong future, you know, economic impact here. We'll be giving more color and clarity over the next quarter or 2.

Speaker #5: No, that's a sense. And maybe for JP, I saw the UFC announcement, but for Exodus Pay, Monobet, how would you describe your go-to-market strategy?

Speaker #5: Is this going to be a big push? How is the word going to get out?

Speaker #1: Yeah. I mean, what's great about the UFC is that there's 700 million fans worldwide. And so this partnership with the UFC, I mean, from a consumer perspective, is really big.

[Analyst] (Gacetta): Awesome. Thanks, guys. Thanks for all the questions.

[Analyst]: Awesome. Thanks, guys. Thanks for all the questions.

Zach Barlow: Thanks, Gareth. Our next question comes from Mike Rindal with Nordland.

Speaker #1: As mentioned, the official payments partner of the UFC, and so that's huge, right? So there's a number of assets that come along with it, right?

Mike Rindal: 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?

Speaker #1: There's digital assets and the commercials and when the fight happens, there's going to be Exodus Pay, in-fight commercials, and things like that with QR codes and activation points and for us, I think those are all very exciting.

James Gernetzke: Sure. It's lower for a number of reasons. I mean, if you watched how this played out, you know, with the note that we did in the notes that we did in the original transaction that, you know, we ended up using as a mechanism to acquire the UK entities. I mean, I think that was the first one, and then we did a separate agreement to acquire some of the other assets that we wanted. That, and because of that structure, you know, there were things in the original agreement, you know, around that were papered around things like retention of employees, et cetera.

Speaker #1: But I think bigger than that is the aspect of and a lot of people aren't thinking about it like this, but the aspect of B2B and hospitality.

Speaker #1: And I think that's an underrated thing. And what I mean by that is years ago, there's a company who we're still partners today and I didn't even ask them if I could say their name in advance.

Speaker #1: So I'm going to leave their name out. But before we signed a deal with them, they asked me, "JP, have you ever went out and experienced the F1?" I never had.

Speaker #1: 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.

James Gernetzke: There was a Latvian company, Tix pay, that didn't come over, and there were some things of that nature. You know, we still expect that there will be more expenses related to this. It's just they did not necessarily make it into the transaction, you know, in the same manner that the first one was. I don't know if that was, gave you enough clarity?

Speaker #1: And just again, these really high hospitality conversations. And experiences. And over time, just helped to really develop a relationship of as I got to know the people at this company, of really strong trust.

Speaker #1: And so for us, as we have 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.

Mike Rindal: No, that's a sense.

James Gernetzke: Okay.

Mike Rindal: Maybe for JP, I saw the UFC announcement, but for Exodus Pay Monavate, how would you describe your go-to-market strategy? Is this gonna be a big push? Like, how is the word gonna get out?

James Gernetzke: Okay.

Speaker #1: So again, the UFC partnership, again, provides a lot. The consumer side, but the aspect that I think will be great for our business is on the B2B side.

Speaker #1: 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 for seats.

JP Richardson: Yeah, I mean, what's great about the UFC is that there's 700 million fans worldwide. This partnership with the UFC, I mean, from a consumer perspective is really big. As mentioned, we're the official payments partner of the UFC, that's huge, right? There's a number of assets that come along with it, right? There's a lot of digital assets in the sense of, you know, commercials and when fights are happening, there's gonna be Exodus Pay in-fight commercials and things like that with QR codes and activation points. For us, I think those are all very exciting.

Speaker #1: He thought it was amazing. He's never experienced anything like that before. And I anticipate at some point in time, we'll continue to have a really big deal with this company.

Speaker #5: Awesome. And maybe just one more. April and May activity any comment on call it the last five, six weeks?

Speaker #1: No, we don't necessarily have a lot of color there other than you can just see that the general market moves and that's reflected, obviously, in some of our volumes.

Speaker #1: We, on the base business, we're absolutely looking forward to seeing the impact of some of the things like clarity and things of that nature.

JP Richardson: I think bigger than that is the aspect of, a lot of people aren't thinking about it like this, 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 who we're still partners today, and I didn't even ask them if I could say their name in advance. I'm gonna leave their name out. Before we signed a deal with them, they asked me, JP, have you ever went out and experienced the F1? I never had. They invited me out to go to an F1 race, and it was incredible. They invited me to a courtside basketball game. It was incredible. Just, again, these really high hospitality conversations and experiences.

Speaker #1: And the other aspects of the business, again, the Monobet piece, again, that'll come over the next couple of quarters. And Exodus Pay, we'll be watching that over time as well.

Speaker #1: So I think just from the base, but just perspective, it's somewhat business as usual at the moment.

Speaker #5: Yeah. Thank you.

Speaker #3: Thanks, Mike.

Speaker #2: Seeing no more questions, this will conclude our call. As a brief reminder, if you have any follow-up questions, please reach out to us directly or use our social media channels on X and Reddit.

JP Richardson: Over time, it just helped to really develop a relationship of, as I got to know people at this company, of really strong trust. For us, as we have 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. So again, the UFC partnership, again, it 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 gonna name this partner either, but I recently invited a, you know, top executive of a partner down to a UFC match, 4 seats. He thought it was amazing. He's never experienced anything like that before.

JP Richardson: I anticipate at some point in time we'll continue to have really big deals with this company.

Mike Rindal: Awesome. Maybe just one more. April and May activity, any comment on, call it the last 5, 6 weeks?

James Gernetzke: No, we don't necessarily have a, you know, a lot of color there other than, you just see the general market moves and that's reflected obviously in some of our volumes. You know, we on the base business, you know, we're absolutely looking forward to, you know, seeing the impact of some of the things like CLARITY and things of that nature. You know, the other aspects of the business, again, you know, the Monavate piece, you know, again, that'll come over the next couple quarters. Exodus Pay, you know, we'll be watching that over, you know, over time as well.

James Gernetzke: I think, you know, just from a, from the base business perspective, it's somewhat business as usual at the moment.

Mike Rindal: Got it. Thank you.

James Gernetzke: Thanks, Mike.

Zach Barlow: Seeing no more questions, this will conclude our call. As a brief reminder, if you have any follow-up questions, please reach out to us directly or use our social channels on X and Reddit. Thanks for joining us today, and we look forward to talk to you again next quarter.