Currency Exchange International (TSE:CXI) executives highlighted stronger profitability, steady banknotes demand, and rapid expansion in payments during the company’s fourth-quarter and fiscal 2025 earnings call, while also providing an update on the wind-down of its Canadian banking subsidiary, Exchange Bank of Canada (EBC).
Fiscal 2025 results: higher net income, modest revenue growth
Group CFO Gerhard Barnard said the company reported net income of $10.3 million for the year ended Oct. 31, 2025, up $7.8 million (317%) from the prior year, on 5% revenue growth. Barnard attributed the year-over-year comparability in part to a reduction in non-recurring items versus fiscal 2024.
Excluding restructuring and other non-recurring items, management reported adjusted net income from continuing operations of $14.5 million, up 10%, while adjusted Group net income rose to $10.8 million, up 6%. The company’s adjusted diluted EPS increased to $1.77, a 14% gain, Barnard said.
Fourth quarter: payments growth offsets softer travel-driven demand
In the fourth quarter, Barnard said revenue rose to $19.8 million, up 8% year over year. Operating expenses increased 6% to about $13.0 million. Reported EBITDA was $6.4 million (up roughly 4%), while adjusted EBITDA increased 10% to $6.8 million.
Barnard said revenue growth was driven by 31% growth in the payments product line, while banknotes revenue rose 4%. Payments represented 17% of total revenue for the period, with banknotes at 83%.
Management attributed the payments growth to a 40% increase in business trading volume to nearly $2.1 billion during the quarter, supported by increased activity from existing financial institution customers and onboarding of new customers.
In banknotes, Barnard said trading volumes declined slightly due to disruptions from an October 2025 U.S. federal government shutdown that impacted several airports and a slowdown in inbound international travelers, “especially from Canada.” He added that this was “substantially offset” by more outbound travel by U.S. citizens to Europe and Asia.
Direct-to-consumer and footprint expansion
Barnard said direct-to-consumer (DTC) banknotes revenue rose about $600,000 (8%) in the quarter, representing 43% of total revenue, with gains “mainly in the OnlineFX platform due to the increased demand for exotic foreign currencies.”
During the quarter, the company:
- Added South Carolina to the states where the OnlineFX platform operates
- Added more than 51 new non-airport agents
- Opened a new company-owned branch in New York
For the full year, Barnard said DTC banknotes revenue increased by $1.1 million (4%) and represented 41% of annual revenue, supported by OnlineFX demand for exotic currencies and the addition of three new states during the year.
At Oct. 31, 2025, CXI had 39 company-owned branch locations, operated in 50 airport agents (up three year over year), and had 468 non-airport agent locations, nearly 245 more than the prior year.
Costs, excess cash, and capital allocation
Barnard said some operating expenses and personnel costs previously shared with EBC were assumed by CXI during the year. The annualized “stranded cost” estimate was initially about $3 million after tax, but is now expected to be closer to 90% of that original estimate once a full 12-month period is completed.
In the fourth quarter, variable costs (including postage and shipping, bank charges, sales commissions, and incentive compensation) rose to $3.4 million, up 8%, primarily due to shipping costs and bank service charges, partially offset by lower variable compensation. Barnard noted CXI fully transitioned check clearing and payment processing away from EBC during the quarter, which moved bank fees into continuing operations and accounted for roughly $150,000 of the variance.
Barnard also pointed to interest income from excess cash: CXI held nearly $25 million in AAA-rated money market funds at Oct. 31, 2025, compared to zero in the prior year.
At year-end, Barnard said CXI reported:
- Cash balance of $95.5 million, plus about $5 million held in EBC (total cash slightly above $100 million)
- Net working capital of $73 million and total equity of $85 million
- An unused $40 million line of credit
He emphasized that cash is the company’s “primary product,” and that banknotes inventory at year-end totaled $53.2 million, within what management considers an optimal cyclical range of $50 million to $70 million.
On capital returns, Barnard said share buybacks remain a “primary objective.” Over the past year, CXI acquired and canceled 312,300 shares for $4.75 million. The TSX accepted a new Normal Course Issuer Bid on Nov. 26, 2025, allowing repurchases of up to 360,000 shares (10% of public float as of Nov. 18, 2025). As of the day before the call, the company had repurchased about 170,000 shares under the program.
EBC wind-down, payments strategy, and listing considerations
Management reiterated that EBC ceased operations on Oct. 31, 2025 and has applied to regulators for formal discontinuance under the Bank Act. Barnard said management expects required regulatory approvals to be granted in the second fiscal quarter of 2026, after which EBC’s remaining assets and liabilities would be liquidated and net assets distributed to CXI. He said net assets associated with EBC were approximately $5 million as of Oct. 31.
CEO Randolph Pinna said the company’s focus is now “100% on CXI” and described the EBC exit as largely complete aside from final approvals. On payments, Pinna said CXI is now fully a SWIFT member and is investing further in international payments offerings through integrations with core banking software providers, including Jack Henry and Fiserv. He also said the company is in “final stages” of onboarding with a major stablecoin operator to test a USDC capability for moving domestic dollars in the U.S.
In the Q&A, Pinna said CXI has piloted a software-as-a-service offering with four U.S. financial institutions using a Federal Reserve connection, generating monthly fee income, though he said it is not material enough yet to be a separate line item.
Asked about strategic alternatives and cash usage, Pinna said the board reviews options quarterly, including dividends or a substantial issuer bid, but stated that at present the company views repurchasing and retiring shares as the best use of cash, while continuing to prioritize growth investments. He also said the company is evaluating potential M&A in payments but will not overpay.
Pinna also told callers that CXI has been “happy with” the TSX, but the company’s exit from Canada has prompted consideration of a potential future Nasdaq listing, suggesting that in “like a 2027” timeframe investors could see a move, though no decision has been made.
About Currency Exchange International (TSE:CXI)
Currency Exchange International Corp operates as a money service business and provides currency exchange, wire transfer, and cheque cashing services at its locations in the United States and Canada. The company earns maximum revenue from the United States of America. The company earns revenue in the form of Commission and Fee income.
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