Banxa Reports December Quarter Financial Results
Rhea-AI Summary
Banxa Holdings Inc. (BNXAF) has released its Q2 FY2025 financial results for the period ended December 31st, 2024. The company reported a 10% decrease in Total Transaction Volume (TTV) to $217 million, attributed to increased competition, partner churn, and low exposure to Solana-based memecoins.
Despite lower volumes, the company achieved a 6% increase in Gross Profit to $7.0 million through strategic cost optimization and pricing strategies. The Net Take Rate improved to 3.0% from 2.6%. Adjusted EBITDA turned positive at $0.1 million, compared to a previous loss of $0.7 million, driven by improved NTR, integration revenue, and reduced operating expenses.
The company's cash position, including Trade Receivables and Crypto Inventories, strengthened to $13.5 million, up from $11.1 million in September 2024. Notable achievements include the launch of U.S. Money Transmission Licenses, UK market entry, and submission of European Markets in Crypto Assets license application.
Positive
- Gross profit increased 6% to $7.0M
- Net Take Rate improved to 3.0% from 2.6%
- Adjusted EBITDA turned positive to $0.1M from -$0.7M loss
- Cash position strengthened to $13.5M from $11.1M
- Successful regulatory expansion in US and UK markets
Negative
- TTV decreased 10% to $217M
- Loss of partnership affecting volume
- Net loss per share increased to -$0.03 from -$0.02
- Increased competitive pressure affecting performance
News Market Reaction 1 Alert
On the day this news was published, BNXAF declined 15.93%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario--(Newsfile Corp. - March 3, 2025) - Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) ("Banxa'' or the "Company") is pleased to report the unaudited financial results for the second quarter of fiscal year 2025, being the period ended December 31st, 2024 ("Q2"). The full results including Management Discussion & Analysis ("MD&A") are available on SEDAR.
DECEMBER QUARTER FINANCIAL HIGHLIGHTS
(Figures are in AUD and all comparisons are relative to the three-month period ended December 31st, 2023, unless otherwise stated)
10% decrease in Total Transaction Volume ("TTV") to$217 million (USD$141 million ), down from$242 million (USD$157 million ), driven by increased competition, churn of a partner and low exposure to the Solana chain based memecoins6% increase in Gross Profit to$7.0 million (USD$4.5 million ), up from$6.6 million (USD$4.3 million ), due to growth in Net Take Rate ("NTR") and integration services revenue, this was achieved through strategically optimising our transaction costs and pricing, despite greater competition, together with focusing on closing new integration revenue deals across the quarter- Gross Profit on TTV, excluding integration revenue*, remained flat, at
$6.4 million (USD$4.2 million )
- Gross Profit on TTV, excluding integration revenue*, remained flat, at
- NTR increased to
3.0% from2.6% due to a focused approach on optimizing pricing strategies and transaction costs - Adjusted EBITDA increased by
$0.8 million (USD$0.5 million ) to$0.1 million (USD$0.05 million ), compared to a loss of ($0.7 million ) (USD ($0.5 million )), due to improved NTR, integration revenue, reduced operating expenses, specifically in legal & compliance costs49% improvement in Adjusted EBITDA on TTV, excludes integration revenue*, to ($0.5 million ) (USD ($0.3 million )), up from ($0.9 million ) (USD ($0.6 million ))
- Net loss per share on a basic and diluted basis to (
$0.03) (USD ($0.02) ) compared to ($0.02) (USD ($0.01) ) - Cash, Trade Receivables** and Crypto Inventories at
$13.5 million (USD$8.7 million ), up from$11.1 million (USD$7.2 million ) as of September 30th, 2024 due to increase in short term debt and improved adjusted EBITDA performance
*Integration revenue consists of coin and chain listings and does not have any costs attributed to it
**Trade Receivables primarily consists of funds with large payment service providers (e.g., Worldpay), from credit card transactions, that are settled in 2 to 4 days
Zafer Qureshi, Executive Director and Co-CEO, commented: "The December quarter was a critical period with the completion of key projects - launch of the U.S. Money Transmission Licenses, UK market Go-Live, and lodging of the European Markets in Crypto Assets license application. Despite the softer volumes, the team achieved strong Adj. EBITDA. Banxa's continued investment in its infrastructure and tech platform has positioned Banxa as the premier infrastructure platform that is opening up new use cases, such as crossborder payments, expanding the total addressable market."
ADJUSTED EBITDA DEFINITION
Adjusted EBITDA is a non-IFRS financial measure that we calculate as net profit before tax excluding depreciation and amortization expense, share based compensation expense, unrealized loss on inventory, finance expense, realized/unrealized gain on fair value of deposits & derivative liability, (gain)/loss on fair value of derivative, unrealised exchange (gain)/loss, (gain)/loss on sale of capital asset and listing expenses. Adjusted EBITDA is used by management to understand and evaluate the performance and trends of the Company's operations.
MARKETING ENGAGEMENT
In 2023, Banxa had engaged an IR marketing firm, Outside the Box Capital, to provide certain IR marketing services. Per the terms of the agreement, it was formally terminated in September 2023 and no options were due or granted.
ABOUT BANXA HOLDINGS INC.
Banxa is the leading infrastructure provider for enabling embedded crypto - empowering businesses to embed crypto seamlessly into their existing platforms and unlocking new opportunities in the rapidly evolving crypto economy. Through an extensive and growing network of global and local payment solutions and regulatory licenses, Banxa helps businesses provide seamless integration of crypto and fiat for global audiences with lower fees and higher conversion rates. Headquartered in the USA, Europe, and Asia-Pacific, the Banxa team is building for a world where global commerce is run on digital assets. For further information visit www.banxa.com.
CONTACTS
Investors:
Zafer Qureshi
investors@banxa.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ENDS
ON BEHALF OF THE BOARD OF DIRECTOR
Per: "Zafer Qureshi"
Zafer Qureshi, Executive Director and co-Chief Executive Officer, +1-888-332-2692
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information may be identified by statements including words such as: "anticipate," "intend," "plan," "budget," "believe," "project," "estimate," "expect," "scheduled," "forecast," "strategy," "future," "likely," "may," "to be," "could,", "would," "should," "will" and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and the conditional.
Statements including forward-looking information may include, without limitation, statements regarding the future prospects of the Company and other statements that are not material facts. Forward-looking information is based on assumptions that may prove to be incorrect. The Company considers such assumptions to be reasonable in the circumstances. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. By its nature, forward-looking information involves known and unknown risks, uncertainties, changes in circumstances and other factors that are difficult to predict and many of which are outside of the Company's control which may cause actual results to differ materially from any future or potential results expressed or implied by such forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243041
FAQ
What caused the 10% decrease in Banxa's (BNXAF) transaction volume in Q2 2025?
How did Banxa (BNXAF) improve its gross profit despite lower transaction volumes?
What is Banxa's (BNXAF) current Net Take Rate and how has it changed?
What key regulatory milestones did Banxa (BNXAF) achieve in Q2 2025?
