XTM Files Q3 2025 Interim Financial Results

Key Terms

md&a financial

Management’s Discussion and Analysis (MD&A) is a section of a company’s financial filing where executives explain recent results, the reasons behind changes, risks faced, and expectations for the future in plain language alongside the numbers. Investors use it like an owner’s narrative to understand the story behind the raw financial data — what drove performance, potential pitfalls, and management’s plans — helping judge whether the company’s numbers are likely to improve or worsen.

earned wage access financial

Earned wage access is a service that lets workers withdraw the portion of their pay they have already earned before the scheduled payday, like taking a small portion from a running paycheck instead of waiting for the full payroll cycle. For investors, it matters because providers can create steady fee or subscription revenue and reduce employee turnover for client companies, while employers may see changes in payroll timing, cash flow needs and regulatory exposure.

management services agreement financial

A management services agreement is a contract where one party hires another to run specific business functions—like finance, operations, or marketing—on its behalf, similar to hiring an external manager to run part of a household. Investors care because the deal spells out fees, responsibilities, and decision-making authority, which affect a company’s costs, operational performance and governance, and can change future cash flow and risk.

preferred shares financial

Preferred shares are a type of investment that gives investors priority over common shareholders when it comes to receiving dividends and getting their money back if a company is sold or liquidated. Think of them as a safer, more predictable way to earn income from a company's profits, similar to a fixed-return investment, but without voting rights. This makes preferred shares appealing to those seeking stable income with a higher claim on assets than regular stockholders.

tokenization technical

Tokenization is the process of converting real-world assets or rights into digital tokens stored on a computer network. This allows assets, such as property or investments, to be divided into smaller parts, making them easier to buy, sell, or transfer electronically. For investors, tokenization can increase access to a wider range of investments and make transactions faster and more efficient.

digital wallet technical

A digital wallet is a secure electronic tool that stores your payment information, such as credit card details and bank account numbers, allowing you to make transactions online or with your mobile device. It functions like a virtual wallet in your pocket, making it easier and faster to pay without carrying physical cards or cash. For investors, it represents a key component of modern financial technology that enables quick, contactless payments and digital financial management.

Year-to-Date Revenue Up 19%; Net Operating Loss Decreases 25%

Sale of Processor Assets Completed

TORONTO--(BUSINESS WIRE)-- XTM Inc. (“XTM” or the “Company”) (QB: XTMIF / CSE: PAID / FSE: 7XT), a fintech innovator in automated tip calculations, instant payouts for employees and gig workers, and a provider of Earned Wage Access (“EWA”) through its AnyDay™ platform, today announced the filing of its interim financial statements and management’s discussion and analysis (“MD&A”) for the quarter ended September 30, 2025 (the “Required Filings”).

With the October 24, 2025 announcement of a Management Services and Program Management Agreement (“MSA”) with Everyday People Financial Corp. (“EPF”), XTM is transitioning from a directly managed payments model to a capital-light, profit-sharing structure. Under the MSA, EPF will assume full operational management, compliance oversight, and technology administration for XTM’s Canadian network-branded card and digital wallet programs.

Q3 2025 Financial and Operational Highlights

• Revenue Growth: Revenue was $7.4 million for the nine months ended September 30, 2025, up 19% from $6.4 million in the prior-year period.
• Reduced Net Operating Loss: Net loss from operations decreased to $10.8 million, a 25% improvement over the prior-year period loss of $14.5 million. Total net less and comprehensive loss for the 9 months ended was $11,930,735.
• Sale of Processor Assets: On September 16, 2025, the Company sold the QRails processor assets, recording a $1.2 million loss on sale. XTM retained all QRails EWA assets, including EWA technology, payroll and time & attendance API integrations, mobile apps, web portals, and EWA client contracts.
• Processing Restructure: Following the asset sale, the Company now pays transaction-based processing fees, significantly reducing fixed costs and overhead previously required to operate the processor.

Subsequent Events

• Management Services Agreement with EPF: On October 24, 2025, the Company entered into an MSA with EPF, under which a newly formed joint subsidiary, Everyday People Payments Inc. (“EP Payments”), will assume operational management, compliance, and technology administration of XTM’s Canadian card and digital wallet programs. This marks a significant shift to a capital-light, profit-sharing business model.
• Cost Reductions and Transition: Following execution of the MSA, XTM initiated a transition plan that includes substantial reductions in employee, rent, consultant, and other operating costs. As of November 30, 2025, monthly payroll costs were reduced by more than 35%, with further reductions expected upon full transition by year-end.
• XTM USA – Finance Tokenization Initiative: On November 18, 2025, the Company announced a binding Letter of Intent (“LOI”) with AGORACOM RWA DBX, a Dubai-based consulting agency, to support the acquisition of Preferred Shares of XTM USA by an arm’s-length organization for tokenization. The initiative applies only to Preferred Shares of a private subsidiary and does not create or imply any blockchain token associated with XTM’s common equity or public listing.
• U.S. EWA Contracts: As part of its focus on the U.S. market, XTM is pursuing multiple contracts to provide EWA and Early Tip Disbursement services. Employer adoption is being driven in part by the “One, Big, Beautiful Bill Act: Tax deductions for working Americans,” which offers tax-free treatment on tips up to $25,000 annually and overtime up to $12,500. Employers are seeking instant access solutions for these earnings, leveraging XTM’s technology.

Filing Details

The interim financial statements and MD&A for the quarter ended September 30, 2025 are available on the Company’s profile on SEDAR+.

About XTM Inc.

XTM Inc. (CSE: PAID) is a fintech company providing real-time payment and earned wage access solutions. XTM’s platform enables instant access to earnings for workers and contractors through digital wallets and prepaid cards, serving the restaurant, hospitality, and gig-economy sectors across North America.

Learn more at www.xtminc.com.

Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” under applicable Canadian securities laws. These statements involve known and unknown risks, uncertainties, and assumptions, and may include terms such as “expects,” “intends,” “anticipates,” “plans,” and “believes.” Actual results may differ materially due to various risks and factors beyond the Company’s control.

The CSE has neither approved nor disapproved the contents of this press release and assumes no responsibility for its accuracy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251202259857/en/

Investor Contact



Brad K Kirby

Email: finance@xtminc.com

Phone: 416-260-1641

Source: XTM Inc.