Crypto wallet company Exodus Movement reported a sharp fall in first-quarter revenue and a significantly wider loss, as a broad market downturn in digital asset trading weighed on results.
Earnings overview
Exodus posted first-quarter revenue of $22.7 million, down 37% from the same period a year earlier. Net loss widened to $32.1 million, compared with a loss of $12.9 million a year ago, according to results released Monday.
A $36.4 million loss on digital assets contributed heavily to the deeper loss, highlighting the company’s exposure to price swings in crypto markets.
Trading activity and volumes
Exchange aggregation revenue fell 40.8% in the quarter. Total trading volume reached $1.18 billion, down 26% from the fourth quarter of 2025.
Business-to-business swap activity made up 22% of total trading, generating $257 million in volume.
The company also reported an 18% drop in quarterly funded users, to 1.4 million, pointing to softer engagement across its platform.
Stock performance
Shares of Exodus declined 5.75% in regular trading Monday and slid a further 4.9% in after-hours trading following the earnings release.
Despite the selloff on the day, the stock is up 20.5% over the past month. It remains 47.9% lower since the start of the year.
Broader market backdrop
The company’s weaker revenue mirrors a broader contraction in crypto trading.
Total spot trading volume on the top 10 centralized exchanges fell 39.1% in the first quarter of 2026, dropping to $2.7 trillion from $4.5 trillion in the final quarter of 2025.
Average daily trading volumes across the market declined 27% over the same period, underscoring the cyclical downturn facing trading platforms and related businesses.
Strategic shift and acquisitions
On May 1, Exodus completed the acquisitions of Monavate and Baanx, moves that expand its payments and card infrastructure.
The deals mark a pivot toward vertical integration, reducing reliance on third-party payment processors and allowing Exodus to capture more of the payments value chain.
By bringing payments infrastructure in-house, the company aims to:
- issue its own payment cards through major networks
- expand its product lineup in the United States, United Kingdom, and European Union
CEO JP Richardson described the acquisitions as a “turning point for Exodus,” framing them as central to a broader payments platform strategy.
Building a payments platform
Exodus is positioning itself as more than a transaction-driven trading gateway. Management is investing in a comprehensive payments platform intended to support future growth in financial services, even as current trading-linked revenue comes under pressure.
Non-exchange services, such as fiat onboarding, grew by more than 25% in the quarter. However, these areas still contribute only a modest share of total revenue.
Outlook and next steps
Those tracking the company now face a tradeoff: near-term earnings drag from a weak trading cycle versus the potential benefits of a more diversified and integrated business model over time.
Exodus plans to hold its quarterly earnings call at 8:30 a.m. ET on May 12, where executives are expected to provide further detail on the integration of Monavate and Baanx and the roadmap for its payments platform.
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