Bitcoin Depot anticipates high single-digit revenue growth for Q3 2025 while strengthening international presence
Aug. 12, 2025 12:43 PM ET
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Earnings Call Insights: Bitcoin Depot Inc. (BTM) Q2 2025
Management View- CEO Brandon Mintz stated that "Bitcoin Depot delivered another strong quarter with revenue increasing 6% year-over-year and a near threefold increase in net income to $12.3 million." Mintz highlighted robust consumer demand with a 30% year-over-year increase in median transaction size to $300 and total transaction volume of $172.1 million. He emphasized the "success of our kiosk optimization strategy and the powerful cash flow we can generate once fixed costs are covered."
- Mintz reported that Q2 gross profit rose 32% year-over-year and adjusted EBITDA increased 46% to $18.5 million, attributing these results to kiosk optimization. He also noted approximately 9,000 active machines at quarter-end and expects continued kiosk growth. "We have now deployed over 200 kiosks to support our ongoing launch in Australia this year," Mintz said, and the company is evaluating entry into at least two more countries in 2025.
- Mintz announced the acquisition of Pelicoin’s assets to strengthen their Gulf South presence, saying "this acquisition is part of our broader effort to consolidate a fragmented market and extend our leadership in cash-to-crypto access."
- Mintz reported the appointment of Philip Brown as Chief Compliance Officer and elimination of the UP-C corporate structure, "which has simplified our cap table and reduced our effective cash tax rate by roughly 12%."
- CFO David Gray stated, "Revenue was $172.1 million, up 6% from the second quarter of 2024 and up 5% sequentially," driven by "increased kiosk deployment and higher median transaction size." He outlined a 32% increase in gross profit to $30.9 million, a 360 basis-point improvement in gross margin to 17.9%, and a 9% decline in total operating expenses to $17.0 million. GAAP net income attributable to common shareholders reached $6.1 million or $0.16 per share compared to a net loss of $2.6 million or negative $0.13 per share last year, supported by a $2.3 million mark-to-market gain on BTC investments.
Outlook- Gray stated, "We anticipate Q3 revenues to grow in high single digits on a percentage basis compared to Q3 of 2024, and adjusted EBITDA growth of 20% to 30% versus the prior year quarter." He mentioned a continued commitment to operational enhancements including "improving vendor pricing, lowering professional service costs and optimizing customer markups."
- Management did not provide specific forward EPS or revenue figures but projected ongoing kiosk growth and international expansion.
Financial Results- Gray reported cash, cash equivalents, and cryptocurrencies of $59.6 million as of June 30, 2025, up from $31.0 million at the end of 2024. The company acquired 6 more Bitcoin during the quarter, bringing total holdings to 100.35 BTC. Operating cash flow for the first half of 2025 reached $26.4 million, more than doubling the prior year’s first half.
- Gray disclosed $8.9 million paid in connection with the elimination of the UP-C structure and $12 million raised from an ATM equity offering, with total debt at quarter-end at $69.7 million. Of this, $25 million is a term loan, and a $5 million voluntary payment was made during the quarter. Profit share franchise arrangements expanded, contributing to the debt increase, but Gray noted, "We currently do not anticipate further expansion of the profit share program going forward."
Q&A- Michael John Grondahl, Northland Capital Markets: Could you talk about revenue per ATM trends, cohort performance, and kiosks in inventory? Christopher Scott Buchanan explained that mature kiosks improved this quarter and new kiosks would continue to ramp. David Gray reported 1,700 kiosks in inventory.
- Grondahl asked about kiosk goals for year-end 2026 and gross profit outlook. Buchanan said there is no specific kiosk goal due to multiple factors, does not anticipate buying additional kiosks in 2025, and expects gross profit margin to "hold steady or decline slightly going into the end of the year."
- Michael Anthony Colonnese, H.C. Wainwright: Inquired about revenue and EBITDA outlook drivers. Buchanan linked growth to operational kiosk expansion and maturation, with EBITDA growth benefiting from cost structure optimization. Colonnese followed up on international expansion; Mintz cited the need for Bitcoin adoption, TAM, and regulatory considerations before moving into new markets.
- Patrick Joseph McCann, NOBLE Capital Markets: Asked about Australia expansion and future international priorities. Mintz clarified over 200 machines installed in Australia, with a total of about 330 to 340 in-country and does not expect significant additional deployments there soon. McCann asked about California operations; Mintz said fewer than 200 kiosks remain, with legislative change efforts ongoing but no recent progress.
- Harold Lee Goetsch, B. Riley Securities: Asked about seasonality and kiosk demographics. Mintz described Q2 to Q3 revenue decline as seasonal, typically tied to tax return season, and said the number of kiosks less than one year old is unlikely to decline much in the next quarter.
- Goetsch asked about a potential stablecoin off-ramp strategy. Mintz said the company is not focused on developing a card product due to limited profitability but is open to evaluating more nonphysical off-ramp options.
Sentiment Analysis- Analysts focused on operational metrics, international expansion, and financial strategy, with a neutral to slightly positive tone. Questions were direct and sought clarification on growth drivers, margin sustainability, and new market entry.
- Management maintained a confident tone in prepared remarks, using phrases such as "we are well positioned for future growth and operational excellence." In Q&A, management responses were detailed and transparent, expressing confidence in strategic direction and operational execution.
- Compared to the previous quarter, management maintained confidence, while analysts pressed more on forward strategy and international expansion rather than near-term financial metrics.
Quarter-over-Quarter Comparison- Guidance shifted from "low to mid-single-digits" Q2 revenue growth (Q1 call) to "high single digits" for Q3, reflecting greater confidence in accelerating top-line momentum.
- Strategic focus expanded: Q1 emphasized ongoing kiosk optimization and initial Australia launch, while Q2 highlighted asset acquisition (Pelicoin), expanded international ambitions, and a more robust compliance posture.
- Analysts in both quarters sought clarity on kiosk deployment, international expansion, and cash allocation. In the current quarter, they probed more into international market entry criteria and the impact of regulatory environments.
- Management tone remained confident and forward-looking. Analyst tone was consistently neutral, with a slight increase in probing on international and regulatory strategy in Q2.
Risks and Concerns- Mintz pointed to regulatory challenges, especially in California, where "we still were actively engaged in efforts to change the legislation that passed in 2023 this year. Unfortunately, we were not able to achieve any changes in that legislation."
- Management highlighted ongoing engagement with regulators and cited compliance infrastructure as a competitive advantage.
- Analysts raised questions about international market risks, specifically regulatory requirements for new countries and the ramp-up of brand recognition in Australia.
Final Takeaway
Bitcoin Depot delivered strong Q2 results, highlighted by revenue growth, significant increases in profitability, and robust free cash flow, as well as ongoing strategic expansion both domestically and internationally. The company continues to optimize its kiosk network, maintain cost discipline, and pursue targeted M&A, all while strengthening its compliance infrastructure and evaluating new market opportunities. Management projects high single-digit revenue growth and 20% to 30% adjusted EBITDA growth for Q3 2025, positioning the company for ongoing operational and financial momentum.
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