Exodus Movement, Inc.

Hi, everyone. Welcome to Exodus's third quarter 2025 earnings call. I'm your host, Elizabeth Shores, and joining us again are Exodus's co-founder and CEO, JP Richardson, and CFO, James Gernetsky. Now, during today's call, 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. Actual results may vary materially from those expressed or implied, in the forward-looking statements due to a variety of factors. These factors are described in forward-looking statements at our earnings press release and our most recent form 10Q filed with the Securities and Exchange Commission, available on the investor relations portion of our website. We do not undertake any obligation to update forward-looking statements. Now you can feel free to visit our social media accounts on X or Reddit to submit any questions you may have about this quarter for our investor relations team after our call. And now our CEO will discuss our developments and our quarter. Take it away, JP.

Thank you, Elizabeth. And thank you, everyone, for joining us this morning. I'm excited about the positive momentum in our business. We had a good quarter. Exodus posted over $30 million in revenue this quarter. That's 51% year-over-year growth. As consumers and industry partners continue to get value from Exodus products. We'll speak more to that value later in this call. Exodus is a company of builders. We've described many of the technologies we have built, such as Passkeys in previous calls. These products have laid the foundation for the next great wave of innovation in money. Exodus is building completely beyond the boundaries of a crypto wallet. We're building toward a future where people use Exodus as an app, not just to invest and save their money, but to make payments and transfer money in the broader financial system. It's a future where with one tap, you can send $20 to your mom across the world. A future where you can easily use crypto wealth to buy groceries, all without any crypto complexity. Many of these experiences will be powered with stablecoins. Payments with stablecoins and purchases with cards using stablecoins. Now I'm excited to share with you our acquisition of Grateful that we announced this morning. The tools that Grateful ship will be helpful to us as we work to produce useful products to consumers and merchants across the payment space. Grateful has built a merchant checkout experience built on stable coins. In addition, we've built a payments app on Passkeys and stable coins to pair with this merchant experience. The Grateful payments app will go live next month in Argentina and Uruguay. Finally, Grateful is a company of builders themselves. The Grateful acquisition is bringing crypto builders and company founders into the fold at Exodus. And that's a positive development that we intend to make into a habit. Now, shifting gears to our traditional crypto business and ExoSwap. We've gotten more traction with recent names signed, including MetaMask. While some of the notable recent signings are still in the integration phase, we are expanding across the industry with 16 signed partnerships, 10 of which are already producing. We've been tracking these producing partners in our monthly treasury updates. In September, we served 37% of exchange provider volume to ExoSwap industry partners, up from 26% in the previous month. Also on this topic, since there were a lot of questions about MetaMask after the last call, this integration is not yet producing revenue. But MetaMask recently posted on X that they are expecting Bitcoin support soon. And as a result, we are optimistic about the prospects for our white label services with continued traction and success since launch. It's gratifying to see Xs extend our services across the industry. Every new partnership validates our technology and drives benefits from scale. Now let's talk about tokenization. Tokenization is another area where Exodus works consistently to be on the leading edge because I strongly believe that tokenization of assets, particular stocks, is the future of financial markets. We announced that we are exploring a Bitcoin dividend. As those plans have progressed, our team has thought through a number of other crypto-like value-added activities that we could power for our shareholders utilizing our XOD token within our Exodus products. But first things first, we are working through the steps for a potential Bitcoin dividend, and James is going to have more on that later. Now, we've partnered with Superstate to extend the Exodus common stock token to the Solana blockchain. So now, Exxon is on two blockchains, Solana and Algorand, with more to come. Enabling Solana is only the first step. All of you who know me well know how excited I am to be moving towards an on-chain stock trading. And it's a priority for Exodus to be in front when U.S. companies start trading. So I'm excited to see the world of Solana and Exodus investment community come together. The time is now. Now let's talk about the industry and market briefly. And while the price of Bitcoin and Ethereum crypto assets supported our overall economic environment for the quarter, we see stable coin and real world asset tokenization adoption as key catalysts in the Exodus world future. I'd like to reiterate once again that Exodus is already a leader in key components of this future. Our multi-chain self-custodial wallet technology, our exchange aggregator that power swaps across blockchains, and our groundbreaking common stock tokens all demonstrate our deep experience across many different rails. So it remains our long-term goal for Exodus to become the last and best app that consumers will ever need for their finances. So I'd like to quickly say thank you to everyone that's joining us on this journey. James, over to you to discuss our finances.

Great. Thanks, JP. Let's jump in. Okay, so Q3 revenue came in at 30.3 million. That's 51% increase from a year ago. And one of the items driving this growth is a higher digital asset prices, which we've seen over the last 12 months as we've had a very favorable backdrop for our industry. Q3 swap volume totaled $1.75 billion. That's an increase of 82% from the prior quarter, from the prior year quarter, excuse me. And as B2B swaps contributed $496 million. That's 28% of our quarterly volume. Key drivers to the overall volume increase here included higher digital asset prices and the emergence of very meaningful volume from our actual swap partnerships. non-exchange related revenue increased to over 10% of our revenue. That's the first time that we've seen that in quite some time. This primarily reflects improvements in staking, specifically in Solana staking. And we've also seen traction from our ExoPay product in the United States. From a user front, our monthly active users ended at 1.5 million. That's similar to the end of last quarter and been down 6% from the previous year. Quarterly funded users ended at 1.8 million and that's up 6% from last quarter and up 20% from a year ago. So, and as a reminder, QFUs counts funded users. Those are users that have put their money on the Exodus platform, and that demonstrates the real stickiness of the XO wallet and the loyalty shown by those users who've trusted us to put their money on our platform. And as we look at the Grateful acquisition, our payment strategy is spearheaded by this acquisition. Grateful is a talented outfit that helps us implement and refine aspects of our software for mass consumption. Additionally, the benefit of Grateful that gives us is a great deal of flexibility with our go-to-market strategy across jurisdictions, including targeted rollouts and feature testing. Excuse me. And onto our balance sheet, it remains a source of strength for us. As of September 30th, digital and liquid assets totaled $315 million. And Exodus maintains a debt-free position while we increased our Bitcoin to 2,123 Bitcoin. With regards to our strategy, the Grateful acquisition provides a beachhead into traditional payment space that can be augmented through development and successive acquisitions as we broaden our capabilities. Meanwhile, the Grateful team's focus on simple, efficient, and multi-chain payment experience for merchants and customers gives us inroads to pursue new regions and new users in conjunction with our existing multi-chain software. On the dividend front, we filed an information statement on Friday. So as previously reported, we are currently exploring the possibility of issuing Bitcoin dividends to our stockholders. We believe that issuing the right to receive a Bitcoin, right to receive a dividend in BTC will allow us to leverage a core asset to reward our public stockholders directly and to promote business objectives such as the adoption of Exodus products and services and promoting the advantages of common stock tokens. As part of this process, we are seeking to amend our charter to allow Exodus to declare and pay dividends to only our publicly listed Class A common stock. And we believe that this charter amendment will allow flexibility in our capital allocation strategy and potentially maximize the value of any potential dividend through targeted distributions to our Class A stockholders, given that our founders, sorry, JP, hold over 96% of our Class B common stock. But any potential dividend remains subject to board approval and the charter amendment is subject to completion. So for additional information on the charter amendment, please refer to the preliminary information statement filed with the SEC on November 7th. And now let's go back to Elizabeth to bring questions and answers from our analysts.