Release Date: September 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Payments revenue surged 54% to $5.2 million, now representing 23% of total revenue, up from 16% a year ago.
- Adjusted EBITDA increased 3% to $8.5 million, and adjusted net income rose 31% to $5.6 million.
- Adjusted diluted earnings per share grew to $0.93 from $0.68, a 37% increase.
- Strong balance sheet with $105 million in cash and cash equivalents, $29 million invested in AAA-rated money market funds, and an undrawn $40 million revolving credit facility.
- Expanded agent network to 51 airport and about 480 non-airport locations, and added 21 new financial institution clients during the quarter.
Negative Points
- Banknotes revenue declined 4% to $17.2 million due to temporary branch relocations and lower demand for higher-margin exotic currencies.
- Operating expenses increased 11% to $14.6 million, driven by higher bank service charges, salaries, stock-based compensation, and IT costs.
- Online FX revenue decreased 20% to $0.8 million, mainly due to lower activity in exotic currencies like Vietnamese dong.
- Revenue from company-owned branches fell 6% to $5.6 million, impacted by the temporary closure of four established branches for relocation.
- Reported net income from continuing operations was flat at $5.3 million, and reported EBITDA declined 1% to $8.1 million.
Q & A Highlights
Q: Jason Zaneski asked about the payments segment EBITDA margin, which appeared flattish year over year, and whether margins compressed due to the EBC closure. He also asked if there is an operating leverage component that should drive margin expansion as revenue grows.
A: Group CFO Gerhard Barnard confirmed that the margin compression was related to the transfer of bank charges from discontinued operations (EBC) to continuing operations. He noted that the largest cost in the payments business is wire fees, and the second largest is sales commissions. With new correspondent banking relationships, the company expects to drive down wire costs and improve EBITDA margins over time. CEO Randolph Finna added that he is comfortable saying the company should see improved margins as the business continues to grow, since heavier costs will be spread out while simultaneously driving down the physical cost of each transaction.
Q: Robin Cornwell asked about the new wholesale bank relationship with a large global bank, whether it involves exclusivity, and how it is progressing.
A: CEO Randolph Finna explained that the relationship is with a well-known European-based global bank that processes FX for institutions worldwide. There is no exclusivity clause requiring minimum volume commitments. The relationship was established partly because CXI’s volume has grown large enough, aided by the prior Exchange Bank of Canada relationship. Finna noted the improved pricing will incentivize CXI to route more volume through them, but the company respects its existing bank relationships and does not want to put everything in one basket. CXI has also expanded domestically with another bank in North America.
Q: Jason Zaneski asked about the company’s EPS outlook, noting that year-to-date adjusted EPS of $1.65 and last year’s Q4 of approximately $0.70 suggest a full-year EPS of $2.30-$2.50, and whether there is anything unusual that would prevent EPS growth going forward.
A: CEO Randolph Finna confirmed that there is nothing known that would prevent normal performance. He stated that Q4, which has already started, should be similar to historical Q4 performance, noting that Q3 and Q4 are typically the stronger quarters. He acknowledged that banknote activity has been softer than normal all year due to geopolitical factors and reduced inbound travel, particularly from Canada, but expects results to be similar to the rest of the year in both payments and banknotes.
Q: Jason Zaneski asked about the share buyback limit of $27 Canadian, noting it implies a very low valuation (approximately 8 times earnings) and asking how the company arrived at that level given the low P/E and excess capital.
A: CEO Randolph Finna explained that the company is keen on buying back stock but is limited by daily purchase restrictions. The board reviews and approves additional buyback funds each quarter based on trading opportunities. He emphasized that the company’s commitment to buybacks has not changed.
Q: Robin Cornwell asked whether the company can maintain its EBITDA margin in the payments business as transaction volumes increase substantially and individual transaction sizes potentially grow larger.
A: Group CFO Gerhard Barnard stated that the company has actually been able to increase its EBITDA margin in the payments product line, now above 20%. He explained that for US-to-US wires, the fee structure differs from foreign exchange transactions, but overall gross margin is affected by banknote charges, wire fees, and commissions. The new correspondent bank relationship will help negotiate bank charges and wire fees down over the next quarter or two, contributing positively to EBITDA margin.
Q: Jason Zaneski asked whether the payments business benefits from operating leverage, where growing revenue should naturally lead to margin expansion by leveraging fixed costs.
A: Group CFO Gerhard Barnard confirmed that the largest cost is wire fees, followed by sales commissions. He noted the company is actively addressing the wire cost, which goes straight to the bottom line. CEO Randolph Finna agreed that the company should see EBITDA grow faster than revenue in the payments business going forward, as heavier costs will be spread out while the physical cost per transaction decreases.
Q: Robin Cornwell asked about the new global wholesale bank relationship and whether it involves exclusivity arrangements.
A: CEO Randolph Finna clarified that there is no exclusivity requirement in either direction. The global bank processes for many institutions worldwide, and CXI is simply happy to be a member of their network. He noted that the improved pricing will incentivize CXI to route more volume through them, but the company maintains relationships with multiple banks to avoid concentration risk.
Q: Jason Zaneski asked for confirmation that the payments segment margin compression was a one-time issue related to the EBC closure and that going forward, cost to fulfill should decrease, allowing EBITDA to grow faster than revenue.
A: Group CFO Gerhard Barnard confirmed that the issue will resolve once the bank charges from discontinued operations are fully out of the reported numbers. CEO Randolph Finna agreed, adding that while the company may need to hire additional processing staff as volume grows, the heavier costs will be spread out and the physical cost per transaction is being driven down, supporting improved margins over time.
Q: Robin Cornwell asked about the payments business EBITDA margin and whether higher transaction volumes and larger transaction sizes would affect the company’s ability to maintain margins.
A: Group CFO Gerhard Barnard explained that the payments business is currently above 20% EBITDA margin. He noted that the gross margin is affected by banknote charges, wire fees, and commissions paid. The new correspondent banking relationship signed on will assist in negotiating bank charges and wire fees down over the next quarter or two, which should contribute positively to maintaining or improving EBITDA margins.
Q: Jason Zaneski asked about the buyback limit and how the company arrived at the $27 Canadian threshold given the low implied P/E multiple and excess capital position.
A: CEO Randolph Finna explained that the company is limited by daily purchase restrictions under its normal course issuer bid. The board reviews and approves additional buyback funds each quarter based on trading opportunities, including potential block purchases. He emphasized that the company’s commitment to returning capital through buybacks remains unchanged.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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