Banxa Reports March Quarter Financial Results

Rhea-AI Summary

Banxa Holdings (BNXAF) reported challenging Q3 FY2025 financial results with significant declines across key metrics. Total Transaction Volume fell 28% to AUD $194M (USD $125M) due to increased competition and limited exposure to Solana-based memecoins. Gross Profit decreased 32% to AUD $5.5M (USD $3.6M), while Net Take Rate dropped to 2.0% from 2.9%. The company posted an Adjusted EBITDA loss of AUD $2.8M (USD $1.8M), compared to a profit of AUD $1.3M in the previous year. Cash, Trade Receivables, and Crypto Inventories stood at AUD $11.5M (USD $7.4M), down from AUD $13.5M. The decline in performance was attributed to inventory devaluation during volatile crypto markets and reduced user trading activity in an uncertain macro environment.

Positive

• Integration revenue provided some offset to declining performance
• Company maintains AUD $11.5M in cash, receivables, and crypto inventories
• 49% improvement in Adjusted EBITDA on TTV excluding integration revenue

Negative

• 28% decrease in Total Transaction Volume to AUD $194M
• 32% decline in Gross Profit to AUD $5.5M
• Net Take Rate decreased from 2.9% to 2.0%
• Adjusted EBITDA turned negative at -AUD $2.8M from positive AUD $1.3M
• Loss of a key partner and limited exposure to Solana-based memecoins affected performance
• Net loss per share of -AUD $0.05 compared to positive AUD $0.01 last year

Toronto, Ontario--(Newsfile Corp. - May 30, 2025) - Banxa Holdings Inc. (TSXV: BNXA) (OTC Pink: BNXAF) (FSE: AC00) ("Banxa'' or the "Company") is pleased to report the unaudited financial results for the third quarter of fiscal year 2025, being the period ended March 31st, 2025 ("Q3"). 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 March 31st, 2024, unless otherwise stated)

• 28% decrease in Total Transaction Volume ("TTV") to $194 million (USD $125 million), down from $269 million (USD $173 million), driven by increased competition, churn of a partner and low exposure to the Solana chain based memecoins

• 32% decrease in Gross Profit to $5.5 million (USD $3.6 million), down from $8.2 million (USD $5.3 million), due decline in TTV and Net Take Rate ("NTR"). Negatively impacted by inventory devaluation during a volatile crypto market and reduced user trading activity in an uncertain macro environment

  • Gross Profit on TTV, excluding integration revenue*, decreased 42%, at $4.6 million (USD $3.0 million)

• NTR decreased to 2.0% from 2.9% due to inventory devaluation and reduced pricing, driven by lower user trading activity in an uncertain macro environment

• Adjusted EBITDA decreased by $4.0 million (USD $2.6 million) to ($2.8 million) (USD ($1.8 million), compared to $1.3 million (USD $0.8 million), due to reduced TTV and NTR, while offset by improvement in integration revenue

  • 49% improvement in Adjusted EBITDA on TTV, excludes integration revenue*, to ($3.6 million) (USD ($2.3 million)), down from $1.0 million (USD $0.7 million)

• Net loss per share on a basic and diluted basis to ($0.05) (USD ($0.03)) compared to $0.01 (USD $0.0)

• Cash, Trade Receivables** and Crypto Inventories at $11.5 million (USD $7.4 million), down from $13.5 million (USD $8.7 million) as of December 31st, 2024 due to decreased 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

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.

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 DIRECTORS
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/254003

FAQ

What were Banxa Holdings (BNXAF) key financial results for Q3 2025?

Banxa reported a 28% decrease in Total Transaction Volume to AUD $194M, a 32% decrease in Gross Profit to AUD $5.5M, and an Adjusted EBITDA loss of AUD $2.8M compared to a profit of AUD $1.3M in the previous year.

Why did Banxa's (BNXAF) performance decline in Q3 2025?

The decline was due to increased competition, loss of a partner, limited exposure to Solana-based memecoins, inventory devaluation during volatile crypto markets, and reduced user trading activity in an uncertain macro environment.

What is Banxa's (BNXAF) current cash position as of Q3 2025?

Banxa's combined Cash, Trade Receivables, and Crypto Inventories stood at AUD $11.5M (USD $7.4M), down from AUD $13.5M as of December 31st, 2024.

How did Banxa's (BNXAF) Net Take Rate change in Q3 2025?

Banxa's Net Take Rate decreased to 2.0% from 2.9% due to inventory devaluation and reduced pricing driven by lower user trading activity.

What was Banxa's (BNXAF) earnings per share for Q3 2025?

Banxa reported a net loss per share of AUD $0.05 (USD $0.03) compared to a profit of AUD $0.01 in the same period last year.