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IM

International Money Express, Inc. (IMXI)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue declined 6.1% year over year to $161.1M, with transactions down 7.8% but average principal per transaction up 5.0% to $441; adjusted EBITDA fell 7.4% to $28.8M, while adjusted diluted EPS was $0.51 .
  • Versus consensus, adjusted EPS slightly beat ($0.51 vs $0.501*), while revenue ($161.13M vs $164.21M*) and EBITDA ($26.14M vs $26.73M*) modestly missed; six estimates for both EPS and revenue* .
  • Management withdrew financial guidance and canceled the earnings call due to a pending all-cash acquisition by Western Union at $16.00 per share, framing near-term stock narrative around merger approval and timing .
  • Liquidity improved: cash and equivalents rose to $174.7M, and net free cash generated increased 10.5% YoY to $14.7M; IMXI repurchased ~0.98M shares for $11.4M in Q2 .

Values with asterisk (*) are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Digital products and foreign exchange gains partially offset revenue pressure, aided by higher average principal per transaction ($441, +5.0% YoY) .
  • Strong cash generation: net free cash generated was $14.7M (+10.5% YoY), and cash & equivalents reached $174.7M at quarter-end .
  • Shareholder returns: repurchased 980,341 shares for $11.4M in Q2; 1.35M shares for $16.3M in 1H25 .
  • Management tone on business resilience (prior quarter): “Intermex's first quarter results reflect the strength and discipline of the Intermex business model… despite an economic and political backdrop that was difficult to anticipate” — Bob Lisy, CEO .

What Went Wrong

  • Top-line pressure: revenue down 6.1% YoY to $161.1M as consumers sent remittances less frequently, reducing fee income; transactions fell 7.8% YoY to 14.1M, while volume declined only 3.1% .
  • Profitability compression: net income down 21.4% to $11.0M, diluted EPS down 11.9% to $0.37, driven by lower transactions, $2.2M transaction costs, and higher amortization .
  • Consensus misses in revenue and EBITDA modestly underscored weaker-than-expected activity and cost dynamics this quarter* .

Values with asterisk (*) are retrieved from S&P Global.

Financial Results

Sequential Comparison (oldest → newest)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Thousands)164,758 144,310 161,133
Net Income ($USD Thousands)15,385 7,769 11,007
Diluted EPS ($)0.49 0.25 0.37
Adjusted Diluted EPS ($)0.57 0.35 0.51
Adjusted EBITDA ($USD Thousands)30,914 21,618 28,788

Year-over-Year Comparison

MetricQ2 2024Q2 2025
Revenue ($USD Thousands)171,531 161,133
Net Income ($USD Thousands)14,033 11,007
Diluted EPS ($)0.42 0.37
Adjusted Diluted EPS ($)0.55 0.51
Adjusted EBITDA ($USD Thousands)31,052 28,788

Revenue Components

Revenue Component ($USD Thousands)Q2 2024Q1 2025Q2 2025
Wire transfer & money order fees, net145,837 120,167 132,970
Foreign exchange gain, net22,800 20,181 23,681
Other income2,894 3,962 4,482
Total Revenues171,531 144,310 161,133

KPIs

KPIQ1 2025Q2 2025
Transactions (Millions)12.8 14.1
Average principal per transaction ($)~438 (computed from $5.6B / 12.8M) 441

Note: Q1 average principal is computed from disclosed volume and transactions.

Guidance Changes

MetricPeriodPrevious Guidance (as of Q1 2025)Current Guidance (Q2 2025)Change
Revenue ($USD Millions)FY 2025634.9–654.2 No longer providing guidance Withdrawn
Diluted EPS ($)FY 20251.53–1.65 No longer providing guidance Withdrawn
Adjusted Diluted EPS ($)FY 20251.86–2.02 No longer providing guidance Withdrawn
Adjusted EBITDA ($USD Millions)FY 2025103.6–106.8 No longer providing guidance Withdrawn

Earnings Call Themes & Trends

Note: The Q2 2025 earnings call was canceled due to the pending Western Union acquisition .

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Digital initiatives (app, WhatsApp, RaaS)Emphasis on scaling digital; 48.3% digital revenue growth in Q4 Omnichannel strength; continued execution; WhatsApp transfers launched in Feb. Digital growth helping offset revenue pressure; RaaS enhanced in July Improving focus and capabilities
Consumer remittance behaviorSlowing retail growth; transactions down 3.2% in Q4 Fewer transactions, higher amounts per transaction (volume +3.7%) Less frequent sends, larger amounts; avg principal $441; volume down 3.1% YoY Stable-to-mixed, frequency down
Strategic alternatives / M&ASAC concluded review with no definitive superior offer; focus on digital investment Revised FY25 guidance; discontinued quarterly guidance Western Union all-cash merger at $16.00 per share announced; guidance withdrawn Transaction-driven
Cost/opex & non-GAAP adjustmentsTransaction costs elevated; restructuring costs present Transaction costs and restructuring noted $2.2M transaction costs; higher amortization; adjusted measures used Continued headwinds
Regulatory / macroMacro/tariffs/FX risks highlighted Similar macro risk disclosure Added note on possible taxes on certain remittances beginning in 2026 Watchlist risk

Management Commentary

  • “Intermex's first quarter results reflect the strength and discipline of the Intermex business model… Year-over-year volume growth reflects our highly resilient consumer base and our ability to serve them effectively through our omnichannel strategy.” — Bob Lisy, Chairman, President & CEO (Q1 2025 press release) .
  • “We have delivered another year of strong EPS growth and continued providing solid operating results for our shareholders… we are now turning our attention to invest and expand our high margin digital business.” — Bob Lisy (Q4 2024 press release) .
  • “Our RaaS platform helps remove [innovation] barriers, giving partners a turnkey solution built on decades of experience and one of the strongest payout networks in Latin America.” — Marcelo Theodoro, Chief Digital, Product & Marketing Officer (RaaS launch) .
  • “Given the pending acquisition by Western Union, the Company will not host its previously announced conference call… and is no longer providing financial guidance.” — Company statement (Q2 2025) .

Q&A Highlights

  • No Q&A session this quarter as the earnings call was canceled due to the pending Western Union acquisition .

Estimates Context

MetricConsensus (Q2 2025)Actual (Q2 2025)Surprise
Adjusted EPS ($)0.501*0.51 +$0.01*
Revenue ($USD)164,210,130*161,133,000 -$3,077,130*
EBITDA ($USD)26,733,880*26,139,000 -$594,880*
EPS Estimates (#)6*——
Revenue Estimates (#)6*——

Values marked with * are retrieved from S&P Global. Actual EPS reflects adjusted diluted EPS reported by IMXI .

Key Takeaways for Investors

  • The quarter was operationally mixed: lower fee revenue from reduced send frequency pressured results, but higher average principal and digital growth partially cushioned revenue and margin compression .
  • Adjusted EPS slightly beat consensus, but revenue and EBITDA missed modestly; watch for estimate resets to reflect weaker transactions and elevated transaction costs* .
  • The Western Union $16.00/share all-cash deal is the primary stock catalyst; focus shifts to regulatory approvals, timeline, and any competing bids/conditions .
  • Guidance withdrawal and canceled call lower near-term disclosure; portfolio managers should anchor on cash generation and balance sheet strength ($174.7M cash) pending M&A closure .
  • Share repurchases continued (0.98M shares, $11.4M in Q2), signaling confidence in intrinsic value; however, buybacks may be constrained pending merger .
  • Macro/regulatory watch items: potential taxation of certain remittances starting in 2026 and broader FX/tariff risks could shape forward profitability and demand .
  • The company’s digital initiatives (app, WhatsApp, RaaS) remain strategic levers to stabilize growth/margins through cycle variability .

Values with asterisk (*) are retrieved from S&P Global.