Currency Exchange International, Corp. reported higher revenue and net income for the third quarter ended July 31, 2026, with growth in its Payments business partially offsetting a decline in Banknotes revenue. Unless otherwise stated, all figures are in U.S. dollars.
#Third-quarter financial results
Revenue reached $22.4 million, an increase of $1.1 million, or 5%, from the same period last year. Reported Group net income was $5.2 million, up $1.0 million, or 24%.
The quarter included $0.3 million, after tax, in stock based compensation expense. Adjusted net income was $5.6 million, an increase of $1.3 million, or 31%, compared with the same period last year. The adjusted figure also excludes certain non-recurring items and discontinued operations recognised in the third quarter of the prior year.
Adjusted diluted earnings per share was $0.93, compared with $0.68 in the prior-year period. Reported earnings per share were $0.89 on a basic basis and $0.87 on a diluted basis, compared with $0.68 and $0.67, respectively, in the prior period.
CXI said adjusted results are non-GAAP financial measures and ratios, are not standardised under IFRS, and are based on management-determined non-recurring items. The company also said such measures may not be comparable with similar measures used by other companies.
#Payments growth offsets Banknotes decline
Payments revenue rose $1.8 million, or 54%, during the quarter. The increase reflected higher volumes from existing customers, new customer additions and a 33% increase in business trading volumes compared with the same period last year.
Banknotes revenue decreased $0.7 million, or 4%. CXI attributed the decline primarily to temporary disruption linked to the relocation of certain company-owned branches and softer travel conditions associated with persisting macroeconomic and geopolitical uncertainties.
Reported EBITDA was $8.1 million, a 1% decline from the prior period. Adjusted EBITDA was $8.5 million, up 3% from the prior period.
#Transaction volumes and branch activity
The International Payments business processed 68,698 payment transactions representing $2.4 billion in business volume, compared with 51,727 transactions representing $1.8 billion in the prior period.
The company opened two branches during the quarter, in Newport Beach, California, and at SouthPark Mall in North Carolina. Its MacArthur Center location in Virginia closed after the shopping centre shut for redevelopment; CXI said a nearby replacement location opened in the fourth quarter.
The company also reported the addition of 21 new financial institution clients in its Wholesale Banknotes business. Direct-to-Consumer Banknotes activity was affected by temporary branch closures and lower demand for certain foreign currencies, while CXI continued operating through company-owned locations, agency relationships and its OnlineFX platform.
#Capital position and corporate actions
As of July 31, 2026, CXI reported $84.9 million in net working capital and $90.3 million in total equity.
On May 4, 2026, the company announced completion of the discontinuance of its wholly-owned subsidiary, Exchange Bank of Canada. The action followed the board of directors’ decision on February 18, 2025, and concluded the subsidiary’s orderly exit from Canada.
During the current year, CXI purchased 241,700 common shares for cancellation at normal market prices trading on the TSX for $4.2 million under a Normal Course Issuer Bid. The shares were cancelled and removed from treasury stock.
#Management outlook and identified risks
Randolph Pinna, CEO of Currency Exchange International, said the company remained focused on revenue growth across its Banknotes and Payments businesses through branch network expansion, enhanced online services and cost management.
The company identified risks and uncertainties including competition in foreign exchange, geopolitical developments, public health emergencies or pandemics, global economic deterioration affecting tourism, currency exchange risks, regulatory and compliance requirements, network security, system reliability, physical safety, reliance on key management personnel and volatile securities markets.
CXI stated that actual results may differ materially from forward-looking information because of these and other factors. It also said the information reflects management’s expectations as of the date provided and that it has no intention or obligation to update or revise it except as required under applicable securities laws.
#Conference call
Currency Exchange International plans to host an earnings conference call on September 10, 2026, at 8:30 AM Eastern Time. The conference ID is 78368.
#Key Takeaways
- Third-quarter revenue was $22.4 million, up $1.1 million, or 5%, year over year.
- Reported Group net income rose to $5.2 million, an increase of $1.0 million, or 24%.
- Payments revenue increased $1.8 million, or 54%, while Banknotes revenue declined $0.7 million, or 4%.
- The company processed 68,698 payment transactions representing $2.4 billion in business volume.
- CXI reported $84.9 million in net working capital and $90.3 million in total equity as of July 31, 2026.
Original source: Read original article