Exodus Movement Reports $36M Revenue in Q1 2025, Faces $12.9M Net Loss

Exodus Movement, Inc. reported a revenue of $36.0 million for the first quarter of 2025, marking a 24% increase from $29.1 million in the same period of the previous year. The growth was primarily driven by a significant rise in exchange aggregation revenue, which increased by $7.1 million, or 26%, attributed to user growth and enhanced transaction volumes through business-to-business partnerships. However, the company experienced a net loss of $12.9 million, a stark contrast to the net income of $54.8 million reported in the first quarter of 2024, largely due to a $28.8 million loss on digital assets, compared to a gain of $56.8 million in the prior year.

In terms of operational metrics, Exodus reported a decrease in monthly active users (MAUs) to 1.6 million, down from 1.7 million a year earlier, reflecting a 6% decline. This decrease was attributed to negative consumer sentiment in the cryptocurrency market, influenced by macroeconomic factors. Conversely, quarterly funded users (QFUs) increased to 1.8 million, up from 1.6 million, indicating a 13% rise in user engagement with funded wallets. The company continues to focus on expanding its user base and enhancing app features to drive future growth.

Exodus also noted significant changes in its expense structure, with technology, development, and user support costs rising by 39% to $14.9 million, driven by increased partner fees and subscription expenses. General and administrative expenses surged by 78% to $14.3 million, influenced by transaction-related expenses associated with potential acquisitions, increased team member compensation, and marketing costs. The company incurred approximately $1.8 million in expenses related to evaluating prospective business acquisitions during the quarter.

The company’s total assets decreased to $263.2 million as of March 31, 2025, down from $288.0 million at the end of 2024, primarily due to a reduction in digital assets, which were valued at $175.2 million, down from $196.4 million. Cash and cash equivalents increased to $59.8 million, up from $37.9 million, reflecting a strategic focus on liquidity. Exodus continues to evaluate its capital structure and may seek additional funding through equity offerings to support its growth initiatives.

Looking ahead, Exodus remains optimistic about the long-term growth of the digital asset market, despite current market volatility. The company plans to continue investing in its platform and expanding its user base while navigating the evolving regulatory landscape. Management believes that the combination of increased market acceptance of digital assets and the company's strategic initiatives will support its ability to generate sufficient cash flow to meet operational needs in the foreseeable future.