IM
International Money Express, Inc. (IMXI)·Q1 2025 Earnings Summary
Executive Summary
- Q1 2025 revenue declined 4.1% year over year to $144.3M, with GAAP diluted EPS at $0.25 and adjusted diluted EPS at $0.35; management cited fewer transactions but larger send amounts as the key headwind .
- Versus S&P Global consensus, revenue missed ($144.3M vs $147.2M*) and EPS missed (Primary EPS $0.35* vs $0.416*); adjusted EBITDA also trailed consensus ($21.6M vs $23.6M*)*.
- Full-year 2025 guidance was cut across revenue, EPS, and adjusted EBITDA, and quarterly guidance was discontinued, a likely negative sentiment catalyst near term .
- Digital momentum is strong: digital transactions grew ~70% YoY and April was tracking ~80% growth, supported by increased digital marketing and new features like WhatsApp-based transfers .
What Went Well and What Went Wrong
What Went Well
- Digital acceleration: “In Q1, our digital transactions grew just under 70% year-over-year… so far in April… about 80% growth” .
- Operational excellence: Reduced retail transaction processing time from ~20 seconds to ~9 seconds and 99.995% uptime, strengthening agent experience and reliability .
- Strong cash and flexibility: Ended the quarter with $151.8M cash, repurchased ~368K shares for $5.0M, and maintained low net leverage, supporting strategic investments .
What Went Wrong
- Transaction softness despite higher principal: Transactions fell 5.2% YoY while principal rose 3.7%, compressing fee income and margins; revenue down 4.1% YoY, adjusted EBITDA down 15.0% YoY, and adjusted EBITDA margin declined to 15.0% .
- Guidance cut and quarterly guide discontinued: FY25 revenue, EPS, and adjusted EBITDA ranges were lowered; quarterly guidance withdrawn due to uncertainty in consumer behavior and targeted digital investment .
- Mix headwind quantified: Management estimated the fewer-but-larger send pattern reduced revenue by $7–$10M and operating income by $2–$3M in Q1, weighing on profitability .
Financial Results
Segment (Revenue components)
KPIs
Balance sheet and capital allocation (point-in-time)
- Cash & cash equivalents: $151.8M (Mar 31, 2025) .
- Total debt: $147.4M (Mar 31, 2025) .
- Net Free Cash Generated: $10.3M in Q1 2025 .
- Share repurchases: 367,873 shares for $5.0M in Q1 2025 .
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- “Our digital transactions grew just under 70% year-over-year… so far in April… about 80% growth. We are very encouraged by the performance of our digital business and the long-term opportunity it represents.” — Robert Lisy, CEO .
- “For Q1 volumes sent via more normalized send amounts, we estimate revenue would have been stronger by $7 million to $10 million and operating income stronger by $2 million to $3 million.” — Andras Bende, CFO .
- “Accordingly, the Company is discontinuing issuing quarterly guidance.” — Earnings press release .
- “By integrating money transfers into WhatsApp, we’re making sending money as easy as sending a message—secure, seamless, and available anytime.” — Marcelo Theodoro, CDO .
Q&A Highlights
- Digital investment cadence: Management is “full systems go” on digital investments given favorable CAC/LTV economics and sees WaaS as incremental upside not in guidance .
- Retail trend and monthly cadence: Foot traffic sensitivities and immigration enforcement perceptions are pressuring retail; management evaluates performance in 4-week segments due to calendar effects .
- Pricing rationality: Pricing remains rational; targeted price aggressiveness in underpenetrated markets (e.g., CA/TX) to drive incremental wires without degrading core margins .
- Mix headwind quantified: Fewer/larger sends reduce total fees even as FX per wire looks better; the Q1 dynamic materially impacted revenue and EBITDA .
Estimates Context
How Q1 2025 actuals compared to S&P Global consensus:
Values marked with an asterisk were retrieved from S&P Global.
Implications:
- Consensus cuts likely: Misses on revenue and EPS (on S&P Global “Primary EPS”) plus guidance reductions should drive estimate revisions lower near term*.
- Target price and recommendation: Target price consensus mean $16.0*; recommendation text unavailable at period granularity*.
Key Takeaways for Investors
- Near-term sentiment risk: Guidance reset and discontinued quarterly guidance, combined with Q1 misses vs consensus and prior guidance, are likely to weigh on the stock near term .
- Digital growth is a structural positive: Sustained 60–80%+ digital transaction growth and WhatsApp launch enhance omnichannel positioning and future revenue mix .
- Retail execution focus: Addressing transaction softness with targeted agent expansion and data-driven pricing in underpenetrated ZIP codes may stabilize volumes over H2 .
- Mix normalization is a swing factor: If send-frequency normalizes, revenue and operating income could recover the $7–$10M/$2–$3M headwind seen in Q1, offering upside vs reset guidance .
- Balance sheet flexibility: $151.8M cash, modest leverage, and buybacks provide capital allocation optionality while scaling digital .
- Watch the WaaS pipeline: Management views WaaS upside as not embedded in guidance; signs of commercialization could be a positive surprise .
- Monitor immigration/macro narrative: Foot traffic and enforcement perceptions remain key variables for retail demand trajectory .
S&P Global disclaimer: Values marked with an asterisk were retrieved from S&P Global.