Exodus Q3 Net Income Soars 1,921% on Digital Asset Gains

Ticker: EXOD · Form: 10-Q · Filed: 2025-11-10T00:00:00.000Z

Sentiment: bullish

Topics: FinTech, Digital Assets, Cryptocurrency, Earnings Report, 10-Q, Self-Custody Wallet, Blockchain

Related Tickers: EXOD

TL;DR

**Exodus is printing money this quarter, but watch out for those concentrated revenue streams.**

AI Summary

Exodus Movement, Inc. reported a significant increase in revenue and net income for the three months ended September 30, 2025, with revenues reaching $30.343 million, up from $20.117 million in the prior year period, representing a 50.8% increase. Net income surged to $17.041 million, a substantial rise from $0.843 million in the same period of 2024. For the nine months ended September 30, 2025, revenues were $92.166 million, compared to $71.485 million in 2024, a 28.9% increase. However, net income for the nine-month period decreased to $41.835 million from $46.024 million in 2024, primarily due to a larger gain on digital assets in the prior year and increased operating expenses. The company's digital asset holdings increased to $263.911 million as of September 30, 2025, from $196.359 million at December 31, 2024. Key business changes include a significant gain on digital assets of $21.003 million for the quarter, compared to a $0.370 million loss in the prior year. Risks include concentration of revenue from API providers, with Company B contributing $6.089 million (20.1%) of quarterly revenue. Strategic outlook appears focused on continued growth in digital asset services and platform development, as evidenced by increased technology, development, and user support expenses of $16.987 million for the quarter.

Why It Matters

Exodus's impressive Q3 net income surge, driven by digital asset gains, signals strong performance in a volatile crypto market, potentially boosting investor confidence in its self-custodial wallet platform. This growth could attract more users, intensifying competition with other FinTech and crypto wallet providers like MetaMask or Coinbase Wallet. For employees, sustained profitability might lead to increased opportunities and stability. However, the reliance on a few API providers for a significant portion of revenue, such as Company B contributing over 20% of quarterly revenue, presents a concentration risk that investors should monitor closely.

Risk Assessment

Risk Level: medium — The risk level is medium due to significant revenue concentration, with Company B accounting for $6.089 million (20.1%) of total revenues for the three months ended September 30, 2025. Additionally, the company's substantial digital asset holdings of $263.911 million expose it to market volatility, as evidenced by the $44.694 million gain on digital assets for the nine months ended September 30, 2025, which can fluctuate significantly.

Analyst Insight

Investors should consider Exodus's strong Q3 performance and increasing digital asset holdings as a positive indicator of its market position. However, they should also diversify their portfolio to mitigate risks associated with revenue concentration and the inherent volatility of digital assets. Monitor future filings for changes in API provider revenue distribution.

Financial Highlights

debt To Equity
N/A
revenue
$30.343M
operating Margin
N/A
total Assets
$263.911M
total Debt
N/A
net Income
$17.041M
eps
N/A
gross Margin
N/A
cash Position
$50.548M
revenue Growth
+50.8%

Revenue Breakdown

SegmentRevenueGrowth
Digital Asset Services$30.343M+50.8%
API Provider Services$6.089MN/A

Key Numbers

Key Players & Entities

FAQ

What were Exodus Movement's revenues for the three months ended September 30, 2025?

Exodus Movement, Inc. reported revenues of $30.343 million for the three months ended September 30, 2025, a substantial increase from $20.117 million in the same period of 2024.

How did Exodus Movement's net income change in Q3 2025 compared to Q3 2024?

Net income for Exodus Movement, Inc. dramatically increased to $17.041 million for the three months ended September 30, 2025, up from $0.843 million in the prior year period, representing a 1,921% surge.

What is the value of digital assets held by Exodus Movement as of September 30, 2025?

As of September 30, 2025, Exodus Movement, Inc. held $263.911 million in digital assets, an increase from $196.359 million reported at December 31, 2024.

What was the gain or loss on digital assets for Exodus Movement in Q3 2025?

Exodus Movement, Inc. recorded a significant gain on digital assets, net, of $21.003 million for the three months ended September 30, 2025, a reversal from a $0.370 million loss in the same period of 2024.

Does Exodus Movement have revenue concentration risks?

Yes, Exodus Movement, Inc. faces revenue concentration risks, with Company B contributing $6.089 million, or 20.1%, of total revenues for the three months ended September 30, 2025.

What were the total assets for Exodus Movement as of September 30, 2025?

Exodus Movement, Inc.'s total assets stood at $338.451 million as of September 30, 2025, an increase from $287.995 million at December 31, 2024.

How much cash and cash equivalents did Exodus Movement have at the end of Q3 2025?

As of September 30, 2025, Exodus Movement, Inc. reported cash and cash equivalents of $50.548 million, up from $37.883 million at the beginning of the period.

What is Exodus Movement's business model?

Exodus Movement, Inc. operates in the FinTech subsector of the blockchain and digital asset industry, developing an un-hosted self-custodial digital asset wallet on the Exodus Platform and contracting with third parties for various user services.

What were Exodus Movement's technology, development and user support expenses in Q3 2025?

For the three months ended September 30, 2025, Exodus Movement, Inc. incurred $16.987 million in technology, development and user support expenses, an increase from $11.333 million in the same period of 2024.

What is the ticker symbol for Exodus Movement, Inc.?

The ticker symbol for Exodus Movement, Inc. is EXOD, and its Class A Common Stock is registered on the NYSE American.

Risk Factors

Industry Context

The digital asset and blockchain technology sector continues to experience rapid innovation and adoption. Companies in this space often leverage technology platforms and API services to facilitate transactions and provide access to digital assets. However, the industry is also characterized by significant price volatility and evolving regulatory scrutiny.

Regulatory Implications

Exodus Movement operates in a sector with increasing regulatory attention. The company must navigate evolving compliance requirements related to digital assets, data privacy, and financial services. Failure to comply with current or future regulations could lead to penalties and operational disruptions.

What Investors Should Do

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Key Dates

Glossary

Digital Assets
Cryptocurrencies or other digital representations of value that can be traded or transferred. (A significant portion of Exodus Movement's balance sheet and a driver of quarterly gains/losses.)
API Providers
Companies that offer Application Programming Interfaces, allowing other software to interact with their services. (A key source of revenue for Exodus Movement, with a notable concentration risk.)
Gain on Digital Assets
Profit realized from the sale or increase in fair value of digital asset holdings. (A major contributor to Q3 2025 net income, but also a source of volatility.)

Year-Over-Year Comparison

Exodus Movement, Inc. has demonstrated robust revenue growth, with Q3 2025 revenue up 50.8% year-over-year to $30.343 million. This growth, coupled with a significant gain on digital assets ($21.003 million in Q3 2025 vs. a loss in Q3 2024), led to a dramatic increase in quarterly net income. However, for the nine-month period, net income declined due to higher operating expenses and a less favorable comparison to a large digital asset gain in the prior year. The company's digital asset holdings have also grown substantially, increasing financial exposure to market volatility.

Filing Stats: 4,509 words · 18 min read · ~15 pages · Grade level 16.2 · Accepted 2025-11-10 16:19:31

Key Financial Figures

Filing Documents

Financial Statements (Unaudited)

Financial Statements (Unaudited) 2 Condensed Consolidated Balance Sheets 2 Condensed Consolidated Statements of Operations and Comprehensive Income 3 Condensed Consolidated Statements of Changes in Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 24 Item 4.

Controls and Procedures

Controls and Procedures 25 PART II. OTHER INFORMATION 27 Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 3. Defaults Upon Senior Securities 27 Item 4. Mine Safety Disclosures 27 Item 5. Other Information 27 Item 6. Exhibits 28

Signatures

Signatures 29 i Cautionary Note on Forward-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All forward-looking statements are based upon our current expectations and various assumptions and apply only as of the date of this Quarterly Report on Form 10-Q. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs and projections will be achieved. Forward-looking statements are generally identified by the words "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," "forecast," as well as variations of such words or similar expressions. Forward-looking statements include statements concerning: our business plans and strategy; projected profitability, performance or cash flows; future capital expenditures; our growth strategy, including our ability to grow organically and through mergers and acquisitions ("M&A"); anticipated financing needs; business trends; our capital allocation strategy; liquidity and capital management; and other information that is not historical information. There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from those expressed or implied by our forward-looking statements, including those set forth in the sections titled "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q and "Item 1A. Risk Factors" of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on

—FIN ANCIAL INFORMATION

PART I—FIN ANCIAL INFORMATION Ite m 1. Financial Statements. Exodus Movement, Inc. and Subsidiaries Condensed Consoli dated Balance Sheets (Unaudited, in thousands, except share and par value) September 30, December 31, 2025 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 50,548 $ 37,883 U.S. dollar coin 257 12 Treasury bills - 30,490 Accounts receivable 5,953 7,654 Prepaid expenses 3,496 2,326 Income tax receivable 5,954 4,305 Other current assets 718 125 Total current assets 66,926 82,795 OTHER ASSETS Fixed assets, net 426 357 Digital assets 263,911 196,359 Software assets, net 4,788 6,129 Other long-term asset 52 109 Indefinite-lived assets 2,146 2,146 Other investments 200 100 Deferred tax assets 2 - Total other assets 271,525 205,200 TOTAL ASSETS $ 338,451 $ 287,995 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 4,058 $ 1,162 Other current liabilities 9,663 7,183 Total current liabilities 13,721 8,345 LONG-TERM LIABILITIES Other long-term liabilities 376 344 Deferred tax liability 27,650 21,779 Total long-term liabilities 28,026 22,123 Total liabilities 41,747 30,468 STOCKHOLDERS' EQUITY Preferred stock $ 0.000001 par value, 5,000,000 shares authorized, no shares issued and outstanding - - Class A Common Stock $ 0.000001 par value, 300,000,000 shares authorized, - - 9,772,697 issued and outstanding as of September 30, 2025 - - 8,460,707 issued and outstanding as of December 31, 2024 - - Class B Common Stock $ 0.000001 par value, 27,500,000 shares authorized, - - 19,465,219 issued and outstanding as of September 30, 2025 - - 19,749,388 issued and outstanding as of December 31, 2024 - - ADDITIONAL PAID IN CAPITAL 123,047 124,387 ACCUMULATED OTHER COMPREHENSIVE LOSS ( 2,070 ) ( 752 )

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