Currency Exchange International's Q3 2025: Growth Insights
Currency Exchange International Reports Strong Third Quarter Results
Currency Exchange International, Corp. (the "Group" or "CXI") (TSX: CXI; OTCQX: CURN) revealed impressive financial results for the third quarter of 2025, showing a net income of $4.2 million, an increase of 8% compared to the previous year. This growth in net income was primarily supported by $5.2 million in continued earnings, despite posting a $1.0 million loss from its discontinued subsidiary, Exchange Bank of Canada. Notably, the Group included a net restructuring credit of $0.1 million in its financial analysis. When adjusting for these restructuring amounts, the adjusted net income decreased by 10% compared to the same period last year, with adjusted diluted earnings per share (EPS) down by 4%.
Financial Overview
Total revenue for Q3 was reported at $21.3 million, reflecting a 7% increase from the $20.0 million generated in the same quarter last year. This growth was driven by significant organic advancements in the Payments segment and heightened trading volumes, along with a notable rise in Banknotes revenue. Key highlights from the Group’s Q3 performance included:
- EBITDA: $8.1 million, up by 4% year-over-year.
- Net Income: $4.2 million, marking an 8% increase year-on-year.
- Diluted EPS: $0.67, a 14% rise compared to the previous year.
- Annualized Return on Equity (ROE): 5%, but down 44% year-over-year.
The Group's liquidity remains robust, with total equity sitting at $83.8 million and net working capital at $67.6 million as of the end of July. Previously, these figures were $79.4 million and $55.9 million as reported in October 2024.
Strategic Changes and Market Responses
As part of its restructuring efforts, the Group made a crucial decision to discontinue operations of its wholly-owned subsidiary, Exchange Bank of Canada, effective from February 2025. This strategic shift was communicated to staff shortly after and is in line with the Group's broader aim to streamline operations. Following this discontinuation, CXI expects that the operational costs formerly shared with EBC will be fully absorbed by its continuing operations, with an annual estimated cost impact of approximately $3 million post-tax.
Stock Buyback Initiatives
During the nine-month period ending July 31, 2025, Currency Exchange International took decisive action to enhance shareholder value by purchasing 190,300 common shares for $2.85 million under its Normal Course Issuer Bid (NCIB). Between August and early September 2025, an additional 92,100 shares were repurchased, totaling $1.40 million. This brings the total share buybacks for the year to 282,400 common shares worth $4.25 million, reflecting the Group's commitment to returning value to shareholders.
Growth in Payment and Banknote Segments
Randolph Pinna, CEO of CXI, expressed confidence in the Group's performance, highlighting sustained growth in Payments and Banknotes sectors. In Q3 alone, the Group processed 51,727 payment transactions valued at $1.77 billion, compared to 40,859 transactions worth $1.36 billion from the previous year. The growing direct-to-consumer market through physical branch locations and the OnlineFX platform continues to strengthen CXI’s customer base.
Future Outlook and Conference Call
Looking forward, CXI's management is focused on leveraging technology and pursuing strategic growth initiatives to drive revenue and profitability. The commitment to disciplined expense management is aimed at maximizing returns for shareholders. To further discuss these developments, CXI will host a conference call on September 11, 2025, at 8:30 AM EST, welcoming participants to dial the toll-free number (+1) 800 717 1738 with Conference ID Number: 85154.
Frequently Asked Questions
What were the key financial results for Q3 2025?
CXI reported a net income of $4.2 million, EBITDA of $8.1 million, and a diluted EPS of $0.67 for Q3 2025, indicating solid growth from the previous year.
Why did CXI discontinue Exchange Bank of Canada?
The decision was made as part of a strategic restructuring to streamline operations and redirect focus on more profitable ventures.
How much has CXI spent on stock buybacks recently?
CXI has repurchased a total of 282,400 common shares for approximately $4.25 million through its Normal Course Issuer Bid (NCIB).
What initiatives is CXI focusing on for growth?
CXI is leveraging technology and pursuing strategic growth initiatives in its Payments and Banknotes segments while maintaining disciplined expense management.
When will CXI host its next conference call?
CXI plans to host a conference call on September 11, 2025, at 8:30 AM EST for further discussions on recent results and future strategies.
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