Executive Summary

Q2 revenue was $22.3M, up 80% year-over-year, but down 23% sequentially as crypto markets cooled from Q1 highs; exchange aggregation remained the core at 89% of revenue while B2B-related non-exchange revenue rose as a mix contributor .
GAAP net loss was $(9.6)M driven by a $(17.2)M net loss on digital asset remeasurement under ASU 2023-08; Adjusted EBITDA was $5.8M (26.1% margin), reflecting operating leverage despite lower volumes versus Q1 .
KPIs: exchange provider processed volume was $1.05B (–22% q/q; +78% y/y); MAUs were 1.5M (vs. 1.7M in Q1 and 1.2M a year ago), consistent with modest market cooling .
No formal quantitative guidance; management continues to target positive Adjusted EBITDA while investing in Wallet-as-a-Service, Passkeys, and fiat onboarding; potential catalysts include further B2B partnerships (e.g., Magic Eden) and Passkeys adoption .

What Went Well and What Went Wrong

What Went Well

Strong topline growth: Q2 revenue +80% y/y to $22.3M, led by exchange aggregation and rising non-exchange B2B contributions; CFO highlighted early B2B traction (e.g., Magic Eden) .
Positive profitability on a non-GAAP basis: Adjusted EBITDA of $5.8M (26.1% margin) despite lower q/q volumes, demonstrating inherent operating leverage .
Strategic momentum: Management launched Passkeys Wallet (no seed phrases, embedded wallet, MPC) and emphasized growing B2B distribution partnerships; “We are excited to see the early traction of our B2B strategy” – CFO .

What Went Wrong

Sequential slowdown vs. a hot Q1: Revenue declined 23% q/q and volumes fell 22% as crypto markets cooled from Q1 levels; MAUs dipped from 1.7M to 1.5M .
GAAP earnings volatility from fair value accounting: Net loss of $(9.6)M driven by $(17.2)M net loss on digital assets (ASU 2023-08), reversing the large Q1 fair value gain dynamic .
Operating optics: Reported operating margin of (66%) reflects the digital asset loss line in operating expenses; underscores continued P&L sensitivity to crypto price marks under new accounting .

Financial Results

Summary P&L vs. Prior Periods

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD millions)	$12.4	$29.1	$22.3
GAAP Net Income ($USD millions)	$1.869	$54.8	$(9.606)
GAAP Diluted EPS ($)	$0.06	—	$(0.37)
Operating Margin (%)	12%	231%	(66%)
Adjusted EBITDA ($USD millions)	$4.072	$13.2	$5.822
Adjusted EBITDA Margin (%)	32.8%	45%	26.1%

Notes: Q1 2024 EPS not disclosed in preliminary materials; Q2 2024 adjusted EBITDA margin cited in prepared remarks; operating margin includes digital-asset remeasurement effects under ASU 2023-08 .

Revenue by Category (Mix and Growth)

Category ($USD millions)	Q2 2023	Q2 2024
Exchange aggregation	$11.6	$19.9
Fiat on/off-boarding	$0.6	$1.0
Staking	$0.2	$0.5
Consulting	—	$0.5
Other	< $0.1	$0.4
Operating Revenues	$12.4	$22.3

Management commentary: exchange aggregation was 89.3% of total in Q2 vs. 92.1% in Q1, primarily due to nonrecurring higher consulting/other revenue related to B2B partnerships .

KPIs

KPI	Q2 2023	Q1 2024	Q2 2024
Exchange provider processed volume ($USD billions)	$0.59	$1.35	$1.05
Monthly Active Users (millions)	1.2	1.6937	1.5
Digital assets and cash ($USD millions)	—	$206.9	$195.5

Additional detail: As of 6/30/24, digital assets and cash included $121.3M in BTC/ETH and $70.7M in cash/cash equivalents, USDC, and T-bills .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Overall outlook	FY2024	No formal quantitative guidance; focus on profitable growth (positive Adjusted EBITDA)	No formal quantitative guidance; continue investing while maintaining positive Adjusted EBITDA	Maintained
Commentary	FY2024	Emphasized disciplined OpEx and investment in Wallet-as-a-Service and fiat onboarding	Reiterated operating leverage and continued investment; no numeric targets provided	Maintained

Note: Company does not provide detailed revenue/EPS guidance; management frames outlook around sustaining positive Adjusted EBITDA with disciplined investment .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q4’23, Q-1: Q1’24)	Current Period (Q2’24)	Trend
Wallet-as-a-Service (B2B) & Magic Eden	Q4: Introduced Wallet-as-a-Service; Magic Eden partnership already generating revenue . Q1: Strong traction; distribution partner logic (not competing wallets) .	Continued momentum; Magic Eden browser extension at ~300k installs; mobile wallet launch “coming weeks” .	Accelerating
Passkeys Wallet (embedded, no seed phrases)	Q1: Teased a product to remove 12-word phrases .	Product launched July 9 with MPC, integrated on-ramps and cross-chain swap via third parties . Early feedback “they love it” from integrated partners .	Launch & adoption ramp
Fiat onboarding (XO Pay)	Q4: ExoPay planned in limited jurisdictions in Q2 . Q1: Expected Q2 limited rollout .	Not yet live; licensing/partnership work underway for US/EU/LATAM; vision: seamless on/off ramp and tap-to-pay future .	Slightly delayed but progressing
Market/tariffs/macro	Q1: Crypto tailwinds (ETFs, halving), volumes near 2021 levels .	Markets cooled vs. Q1; volumes –22% q/q; y/y still strong .	Moderating sequentially
Regulatory/legal posture	Q1: Conservative design (no mixing features); treating assets as if securities operationally .	Reiterated compliance-first posture; no new regulatory headwinds noted on call .	Stable
Treasury/digital assets accounting	Q1: ASU 2023-08 adoption drove big net income gain on fair value marks .	Q2 GAAP net loss driven by $(17.2)M digital asset remeasurement; balance of digital assets and cash $195.5M .	Volatile GAAP; robust treasury

Management Commentary

“Our strong Q2 performance reflects our leadership in product innovation and the overall growth of the digital asset market.” – CEO JP Richardson .
“We delivered high year-over-year revenue growth and operational excellence… we intend to continue to make strategic investments… [and] believe the early traction of our B2B strategy will enable us to expand our footprint.” – CFO James Gernetzke .
On Passkeys: “It allows consumers to not have to worry about downloading a wallet… embedded wallet experience directly on the dApp… we will announce more Passkeys partnerships in the coming weeks.” – CEO .
On B2B distribution logic: “We monetize through our infrastructure… All of these wallets that we’re building become other distributions for our infrastructure.” – CEO .

Q&A Highlights

Passkeys traction: Early integrations “love it,” removing seed phrases and extension installs for mainstream-friendly onboarding; more partnerships to be announced .
Magic Eden momentum: ~300k browser extension installs; mobile wallet launch imminent, seen as further catalyst; partnership evidences strong demand for Exodus infrastructure (XO Swap) .
XO Pay timing: Not live yet; licensing/partnering underway for U.S., Europe, Latin America; longer-term vision is seamless on/off-ramp and tap-to-pay from self-custodial wallets .
Accounting/volatility: Q2 net loss driven by $(17.2)M digital asset fair value loss; contrasts with Q1 gain under ASU 2023-08; management emphasized sustained operating discipline and leverage .

Estimates Context

Metric	Q2 2024 Actual	Q2 2024 S&P Global Consensus	Surprise
Revenue ($USD millions)	$22.3	N/A – S&P Global consensus unavailable at time of writing	N/A
GAAP Diluted EPS ($)	$(0.37)	N/A – S&P Global consensus unavailable at time of writing	N/A
Adjusted EBITDA ($USD millions)	$5.8	N/A – S&P Global consensus unavailable at time of writing	N/A

Note: S&P Global consensus was not retrievable at the time of writing due to data-access limits. Management does not provide formal quarterly guidance, so estimate anchoring was not available this quarter .

Key Takeaways for Investors

Structural leverage intact: Despite a 23% q/q revenue decline, Adjusted EBITDA remained positive with a 26.1% margin; operating leverage should expand again if volumes rebound .
B2B distribution is a second growth engine: Partnerships like Magic Eden (and Passkeys embeddability) broaden Exodus’ reach and diversify revenue beyond swaps; expect more integrations to surface .
GAAP remains crypto-mark dependent: ASU 2023-08 drives P&L volatility; focus on Adjusted EBITDA and cash/digital asset treasury as core health indicators ($195.5M as of 6/30/24) .
Near-term catalysts: Passkeys adoption, Magic Eden mobile wallet rollout, and continued Wallet-as-a-Service wins; monitor volume sensitivity to crypto market volatility .
KPIs to watch: Exchange processed volume and MAUs (Q2: $1.05B and 1.5M) as leading indicators for swap-driven revenue and B2B engagement .
Guidance stance unchanged: No formal targets; management continues to prioritize positive Adjusted EBITDA and disciplined investment while scaling new products .
Note on disclosure discrepancy: CFO referenced “total assets of ~$195M,” likely referring to digital assets and cash; 8-K balance sheet shows total assets of $211.6M at 6/30/24 .

Appendix: Additional Context and Cross-References

Q2 2024 headline figures and financial statements (press release and 8-K exhibit) .
Q1 2024 preliminary results and call: revenue $29.1M; net income $54.8M; Adjusted EBITDA $13.2M; volumes ~$1.35B; positive operating margin due to digital asset mark-to-market under ASU 2023-08 .
Product and partnership updates: Passkeys Wallet launch (July 9) ; subsequent Passkeys fiat on-ramp partnership with Blockchain.com (Aug 14) -; Magic Eden mobile wallet launch (Aug 21) -.

Exodus Movement, Inc. (EXOD)·Q2 2024 Earnings Summary