Exodus Movement, Inc. - Q1 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended March 31, 2026. Exodus Movement, Inc. operates in the FinTech subsector, providing an un-hosted self-custodial digital asset wallet. The company is a remote-first entity incorporated in Texas (redomesticated from Delaware in December 2025) and trades on the NYSE American under the symbol EXOD. As of May 4, 2026, the company had approximately 10.8 million Class A and 19.2 million Class B shares outstanding.
Key Financial Metrics
| Metric (in thousands) | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenues | $22,747 | $35,996 |
| Net Loss | $(32,139) | $(12,873) |
| Loss Per Share (Basic & Diluted) | $(1.08) | $(0.45) |
| Cash and Cash Equivalents | $72,919 | $59,773 |
| Digital Assets (Fair Value) | $48,229 | $156,447 |
| Loans Receivable, Net | $85,164 | $80,584 |
| Total Assets | $230,494 | $266,762 |
| Net Cash Used in Operating Activities | $(2,592) | $(6,166) |
| Net Cash Provided by Investing Activities | $71,902 | $33,694 |
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased 36.8% to $22.7 million, primarily driven by a 40.8% drop in exchange aggregation revenue due to lower user exchange volume. Conversely, fiat onboarding revenue increased 70.8%.
- Increased Net Loss: Net loss widened to $32.1 million from $12.9 million. This was significantly impacted by a $36.4 million net loss on digital assets (compared to $28.8 million in Q1 2025), driven by market volatility and unrealized losses on remeasurement.
- Expense Growth: Technology, development, and user support expenses rose 9.1% to $16.2 million, largely due to increased team compensation and stock-based compensation. General and administrative expenses increased 8.0% to $15.5 million, driven by higher marketing spend ($2.6 million vs. $1.2 million).
- Liquidity Improvement: Cash and cash equivalents surged to $72.9 million from $4.9 million at year-end 2025. This increase was fueled by $73.2 million in proceeds from the disposal of digital assets held, partially offset by operating cash outflows.
- Digital Asset Portfolio: The fair value of digital assets held dropped significantly from $156.4 million to $48.2 million, reflecting both market price declines and strategic sales to fund operations and acquisitions.
Outlook, Risks, and Subsequent Events
- Subsequent Acquisitions: Following the reporting period, Exodus acquired Monavate and Baanx entities (part of the W3C Group) in late April and early May 2026. The aggregate purchase price was approximately $106.3 million, satisfied largely through the discharge of outstanding indebtedness ($76.3 million) and a new stock and asset purchase agreement ($30.0 million). These acquisitions aim to expand on-chain payment capabilities.
- Legal Proceedings: The company filed litigation in Delaware Court of Chancery against W3C and its CEO to enforce a purchase agreement. This was subsequently resolved with the acquisition of assets and dismissal of the litigation with prejudice.
- Market Risks: The company faces significant exposure to digital asset price volatility. A hypothetical 10% decrease in digital asset prices would reduce fair value by $4.8 million. Revenue is heavily dependent on third-party API providers and transaction volumes.
- Regulatory Environment: Management notes that global stablecoin adoption and regulatory changes (including the "One Big Beautiful Bill Act" and Pillar 2 tax approaches) will influence future operations and tax liabilities.
- User Metrics: Monthly Active Users (MAUs) decreased to 1.5 million from 1.6 million, and Quarterly Funded Users (QFUs) dropped 22.2% to 1.4 million, reflecting reduced engagement correlated with a decrease in the broader cryptocurrency market cap.
Investor Verification Checklist
- Acquisition Accounting: Verify the final purchase price allocation and pro forma financial impact of the W3C/Monavate/Baanx acquisitions, which were not reflected in Q1 2026 financials.
- Digital Asset Valuation: Confirm the cost basis vs. fair value of the remaining $48.2 million digital asset portfolio and the sustainability of revenue given the 36.8% decline in exchange aggregation fees.
- Loan Receivables: Review the status and repayment terms of the $85.2 million in loans receivable, particularly the $72.6 million in facilities provided to W3C which were used to fund the subsequent acquisition.
- Revenue Concentration: Assess the risk associated with the top five API providers, which collectively generated $14.8 million of revenue in Q1 2026.
- Cash Burn vs. Liquidity: Monitor the trajectory of operating cash burn ($2.6 million in Q1) against the current cash balance of $72.9 million to determine runway without further capital raises.