Currency Exchange International Posts Q3 2026 Revenue Growth Amid Payments Surge

Currency Exchange International Corp. delivered a strong third-quarter 2026 performance, with total revenue climbing 5% year-over-year to $22.4 million, following a 25% sequential increase from Q2 2026. The company’s payments revenue surged 54% to $5.2 million, accounting for 23% of total revenue—a notable shift from 16% in the prior year. Meanwhile, banknotes revenue fell 4% to $17.2 million, representing 77% of revenue, down from 84% the year earlier. Adjusted diluted earnings per share (EPS) rose to $0.93 from $0.68, while reported EPS climbed to $0.87 from $0.67, reflecting a 37% year-over-year increase in adjusted EPS. Net income from continuing operations remained flat at $5.3 million, but adjusted group net income grew 31% to $5.6 million, up $1.3 million from the prior period, which included a $1 million loss from discontinued operations at Exchange Bank of Canada (EBC). Operating expenses rose 11% to $14.6 million, while cash and cash equivalents stood at $105 million, including $65 million in banknotes in transit and vaults and $29 million invested in AAA-rated money market funds. The company’s gross profit margin remained robust at 98.4% over the trailing twelve months, and return on equity (ROE) was 17%. Share price traded near $30.45, up 1.43% from the prior day, near its 52-week high of $30.95, with a trailing P/E ratio of 9.5 and a market cap of $130 million. Over the first nine months of fiscal 2026, total revenue grew 6% to $56 million, with payments revenue increasing nearly 60% to $14.1 million. Payments volume expanded 33% to $2.4 billion, up from $1.8 billion in Q2, with 68,700 transactions processed—up from around 51,700 in the prior quarter. For the nine-month period, trading volume grew 40% to $6.6 billion. The company expanded its branch and agent network, adding two new company-owned locations—Newport Beach, California, and SouthPark Mall in Charlotte, North Carolina—and a new airport agent at O’Hare International Airport. Wholesale banknotes revenue declined slightly, while online FX revenue fell 20% due to reduced demand for the Vietnamese dong. The company’s guidance for fiscal 2026 revenue is $75.9 million, with EPS projected at $2.42, and $79.0 million for fiscal 2027, with EPS at $2.52. Management expects Q4 to follow seasonal strength, with no material disruptions. The company’s operational focus remains on payments growth, leveraging enhanced correspondent banking relationships and direct Federal Reserve access to expand its rails for currency and payment processing. Expenses rose across the board, including bank service charges, IT costs, and marketing, but cost management efforts are expected to support EBITDA margins. Share repurchases totaled 241,700 shares for $4.2 million under the issuer’s normal course bid.