Exodus' 'cost reset is real' as payments offset crypto wallet slowdown, StoneX says

StoneX kept a Buy rating and a $12 price target for Exodus Movement Exodus Movement, Inc. (EXOD) on Thursday.

The basis of its argument is that Exodus' push into payments and lower costs are helping offset weaker activity in its legacy crypto wallet business, bringing it closer to breaking even on an adjusted basis. "The cost reset is real," StoneX analyst Mark Palmer wrote in a Thursday report.

Exodus shares were up over 8% to $4.68 on Thursday morning, with StoneX's $12 target implying a further gain of around 150%.

The company reported third-quarter earnings on Monday, reaching revenue of $32.5 million and topping analyst estimates of between $29 million and $31 million. Its adjusted EBITDA loss shrank to $3.9 million from $6.7 million in the second quarter, while its net loss totaled $8.3 million.

Exodus' payments segment contributed nearly $11 million in its first full quarter following the acquisitions of Monavate and Baanx in May. That helped offset a 29% year-over-year drop-off in wallet-related revenue to $21.6 million. The company noted that around 64% of payments revenue came from traditional payments, while the other 36% came from onchain finance.

Exodus also cut its headcount from 326 to 214 employees between May and Monday's earnings, with management expecting roughly $30 million in savings going into 2027.

"Our cost base is lower. If exchange volumes rise, revenue can grow without a proportionate increase in overhead," CEO JP Richardson said on Monday's earnings call.

However, Richardson also warned that many of the company's milestones still depend on regulatory approval and execution.

Exodus is still waiting on approval in Latvia that would allow the company to resume issuing its payment cards in Europe. The company said it has already resumed issuing cards in the U.S.