Exodus Targets $30 Million in Cuts as Payments Lift Revenue 24%

Exodus Movement says it is on track to cut roughly $30 million in combined annual costs going into 2027, after third-quarter revenue climbed 7% year over year to $32.5 million on the strength of its newly acquired card-payments businesses.

Revenue jumped 24% from $26.2 million in the second quarter, a period that included the Monavate and Baanx acquisitions only from May 1. The third quarter was the first full period with both deals on the books, and the payments engine showed its scale: 1.6 million active cards and $1.1 billion in card gross transaction volume, up from 1.1 million cards and $0.6 billion in Q2.

That volume carries a new cost line. Payment processing expenses — a line that didn't exist a year ago — came in at $9.5 million for the quarter, more than double the $4.4 million booked in the second quarter.

Back in the red

The quarter swung to a net loss attributable to the company of $8.3 million, against net income of $17.0 million a year earlier. The comparison flatters the past: Q3 2025 results carried a $21.0 million gain on digital assets, while this quarter's digital asset gain was $11.4 million.

General and administrative expenses nearly doubled year over year to $28.9 million, though they fell sharply from $44.7 million in the second quarter. Adjusted EBITDA — which excludes digital asset gains, $5.0 million of transaction costs and $3.2 million of restructuring costs — showed a $3.9 million loss. That's narrower than the $6.7 million loss in Q2 but well below the $5.9 million profit a year earlier.

What happened to the wallet business?

Core wallet activity was essentially flat. Monthly active users held at 1.4 million, quarterly funded users edged up to 1.4 million from 1.3 million, and swap volume slipped 3.4% from the second quarter to $1.1 billion.

The revenue trajectory reflects that softness. By MLQ's SEC-derived figures, Exodus booked $44.8 million in the fourth quarter of 2024 and $36.0 million in the first quarter of 2025 — both above the current quarter's $32.5 million — before sliding to $22.8 million in Q1 2026 and $26.2 million in Q2. Payments, not the wallet, are now the growth story.

Chief Executive JP Richardson said the company made "substantial progress bringing Exodus, Monavate and Baanx together," and he pitched the wallet plus the XO Suite enterprise platform as payment infrastructure not just for people and businesses but for software. "As AI agents begin to transact on behalf of people and businesses, they will need that same infrastructure, with clear permissions and spending limits," Richardson said.

Where the money goes from here

The release offered no revenue outlook beyond the cost target, leaving the $30 million reduction as the company's main forward commitment. If payments volume keeps compounding while G&A continues to fall from its Q2 peak, the narrowing adjusted EBITDA loss suggests a path toward breakeven — but with digital asset gains still propping up reported results, the market will be watching whether card volume alone can carry the model into 2027.

Metric	Q3 2026	Q2 2026	Q3 2025
Revenue	$32.5M	$26.2M	$30.3M
Payment processing expenses	$9.5M	$4.4M	—
General and administrative	$28.9M	$44.7M	$14.9M
Net income (loss)	($8.3M)	($18.6M)	$17.0M
Adjusted EBITDA	($3.9M)	($6.7M)	$5.9M
Quarterly funded users	1.4M	1.3M	n/d
Card gross transaction volume	$1.1B	$0.6B	—