DATE

Monday, Mar. 16, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Scott Buchanan
• Chief Financial Officer — David Gray

TAKEAWAYS

• Revenue — $116,000,000 for the fourth quarter, down from $136,800,000, largely due to new state regulations and enhanced compliance standards.
• Full-Year Revenue — $615,000,000, representing a 7% increase, driven by kiosk expansion and growth in median transaction size.
• Active Kiosks — 9,721 installed at year end, up 15% from the prior year, reflecting both organic growth and acquisitions.
• Median Transaction Size — $400, up 43% from 2024, indicating higher average customer spend per transaction.
• User Lifetime Value — $5,311 per user, up 5% from the previous year, calculated for users active at any point between 2016 and Q4 2025.
• Gross Profit — $15,300,000 for 2025, down from $23,500,000.
• Gross Margin (Q4) — 13.2% compared to 17.2% the prior year, attributed to lower quarterly revenue; full-year gross margin expanded by 300 basis points to 17.2%.
• Total Operating Expenses — $21,400,000 in the quarter, up from $15,000,000, primarily due to higher legal and incentive compensation expenses.
• Full-Year Operating Expenses — $72,100,000, a 7% increase versus 2024, largely from increased legal costs.
• GAAP Net Loss (Full Year) — $24,900,000, which includes an $18,500,000 accrual for an arbitration judgment liability.
• Net Loss Attributable to Common Shareholders (Q4) — $21,000,000, or -$2.80 per share, compared to a loss of $6,600,000, or $2.54 per share, a year earlier.
• GAAP Net Income (Q4) — $5,100,000, down from $7,800,000 the previous year.
• Adjusted EBITDA (Q4) — $1,600,000, versus $13,000,000 a year ago, reflecting lower revenue and higher OpEx.
• Adjusted EBITDA (Full Year) — $56,400,000, a 42% increase, highlighting improvements over the longer cycle.
• Cash Position — $76,600,000 in cash, cash equivalents, and cryptocurrencies as of year end, up from $31,000,000, supported in part by a $15,000,000 equity offering.
• Cash from Operating Activities — $34,000,000 during 2025, an increase of 51% over last year.
• Total Debt — $62,500,000 at quarter end, including an $18,000,000 term loan and $40,000,000 in profit share liabilities; company notes no plans to expand profit share program.
• 2026 Revenue Guidance — Expected decline of 30%-40% for the core BTM business due to regulatory headwinds, with management indicating “the industry resets and adapts to a changing landscape.”
• Cut Acquisition — Entrance into peer-to-peer social betting via the acquisition of Cut, with projected 2026 revenue contribution “definitely… below $5,000,000.”
• ReadyBox Launch — Debut of ReadyBox, an independent business advance platform offering $500-$2,000 advances to small businesses, gig workers, and independent contractors, leveraging core company infrastructure.
• Regulatory Outlook — Management expects 80%-90% of states to have established their stance on regulations by end of 2026, resulting in decreased uncertainty after that period.
• International Expansion — Active projects underway for launches in two new countries, anticipated in late Q1 or early Q2; regulatory impact abroad is expected to be less of a factor than in the U.S. at this stage.

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RISKS

• David Gray said, “2026 is likely to be a challenging year for our core BTM business, where we expect revenue to decline between 30% to 40% year over year as the industry resets and adapts to a changing landscape.”
• Higher legal expenses and an $18,500,000 arbitration judgment liability materially increased full-year operating costs and contributed to the net loss.
• Adjusted EBITDA in the fourth quarter declined sharply to $1,600,000 from $13,000,000, reflecting lower revenue and elevated expenses.

SUMMARY

Bitcoin Depot (BTM 9.82%) reported declining fourth-quarter revenue and gross profit, attributing the contraction to state-level regulations and heightened compliance requirements. The company expanded both its kiosk footprint and median transaction size during the year, resulting in solid annual revenue growth and improved adjusted EBITDA for the full year. Recent acquisitions and new product launches, including peer-to-peer betting via Cut and the ReadyBox merchant advance platform, form the foundation of a diversification strategy, but are expected to contribute minimally to revenue in the near term. Management provided 2026 guidance forecasting a significant revenue drop for the core kiosk business due to persistent regulatory pressures, while highlighting ongoing international expansion and cost optimization efforts.

• The company completed a platform transition for more than 500 newly acquired kiosks and formed strategic retail partnerships with GPM Investments and Wild Bill Tobacco, expanding national reach.
• Profit share arrangements accounted for $40,000,000 of total debt, with the company stating it “currently do not anticipate further expansion” of this program.
• Relocation of underperforming kiosks into higher-traffic locations is a key operational lever, enabled without incremental capital spending.
• Full-year user lifetime value increased to $5,311, indicating a rising level of cumulative spend per customer across the network.
• Ongoing international expansion efforts target new markets, with launches in two countries planned for early 2026 and management citing less immediate regulatory interference abroad.

INDUSTRY GLOSSARY

• BTM: Bitcoin Transaction Machine; refers to cryptocurrency kiosks that allow users to buy or sell digital assets such as bitcoin, litecoin, or ethereum.
• Profit Share Arrangements: Financing structures under which the company receives an upfront payment from partners in exchange for a share of future profits from designated kiosks over a fixed period, recognized as debt under U.S. GAAP.
• Kiosk Relocation: Operational practice of moving machines to higher-performing locations to optimize returns and reduce underutilization, without adding new units.
• ReadyBox: Standalone business advance product recently launched by Bitcoin Depot, providing working capital to small businesses and independent workers.
• Cut: Peer-to-peer social betting platform enabling direct wagers between users, recently acquired as part of the company’s diversification initiatives.

Full Conference Call Transcript

Operator: Good morning, and welcome to Bitcoin Depot Inc.’s fourth quarter and full-year 2025 conference call. My name is John, and I will be your operator today. Before this call, Bitcoin Depot Inc. issued its financial results in a press release. A copy will be furnished in a report on Form 8-K filed with the SEC and will be available in the Investor Relations section of the company’s website. Joining us on today’s call are Bitcoin Depot Inc.’s CEO, Scott Buchanan, and CFO, David Gray. Following their remarks, we will open the call for questions. Before we begin, Cody Slach from the Gateway Group will make a brief introductory statement. Mr. Slach, please proceed.

Cody Slach: Thank you, operator. Good morning, everyone. Before management begins their formal remarks, we would like to remind everyone that some statements we are making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a few factors, many of which are beyond our control, that could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the SEC.

We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date forward-looking statements are made, except as required by law. We will also discuss non-GAAP financial metrics and encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. We refer you to our filings with the SEC for detailed disclosures and descriptions of our business as well as uncertainties and other variable circumstances, including but not limited to, risks and uncertainties identified under the caption Risk Factors in our recent filings.

You may get Bitcoin Depot Inc.’s SEC filings for free by visiting the SEC website at sec.gov. I would like to remind everyone this call is being recorded and will be available for replay via a link in the Investor Relations section of Bitcoin Depot Inc.’s website. A supplemental earnings presentation highlighting our performance has also been made available on our IR website. I will now turn the call over to Bitcoin Depot Inc.’s CEO, Scott Buchanan.

Scott Buchanan: Thanks, Cody, and good morning, everyone. Thank you for joining us today. 2025 was a strong year for Bitcoin Depot Inc. with growth across the majority of our key operating and financial metrics and meaningful progress executing on our long-term strategy. While our fourth quarter results declined year over year, this was primarily driven by recently enacted state regulations that introduced transaction size caps and, to a lesser extent, enhancements to our compliance standards that modestly impacted transaction activity. Importantly, we view both developments as constructive for the long-term health, credibility, and sustainability of the digital asset industry.

As the largest operator in North America, with one of the most robust compliance programs, Bitcoin Depot Inc. is best positioned to navigate this evolving regulatory environment. We ended the fourth quarter with approximately 9,700 active machines, reflecting both organic growth and targeted acquisitions. In October, we completed the transition of the assets acquired from National Day Bitcoin ATM to our operating platform, adding more than 500 kiosks to our network. We also expanded through new retail partnerships, including GPM Investments, a subsidiary of Arco Corp., placing our kiosks in 188 initial locations with one of the country’s largest convenience store operators.

Additionally, we announced a new partnership with Wild Bill Tobacco, launching with a pilot installation in 10 stores and the opportunity to expand across a portfolio of more than 250 locations. Subsequent to quarter end, we acquired the assets of Instant Coin Bank, further strengthening our presence across the South Central United States. Relocation remains an important lever in our growth playbook. By continuously evaluating kiosk-level performance, we can redeploy machines into higher-traffic, higher-conversion locations, improving unit economics without incremental capital investment. On the regulatory front, we expect continued activity at the state level in 2026.

While jurisdictions may introduce additional transaction limits or enhanced consumer protection requirements, we believe these measures ultimately raise industry standards and reinforce the advantages of scale, compliance infrastructure, and regulatory engagement, areas where Bitcoin Depot Inc. has led for years. Building on our previously announced first-transaction ID verification in February, we extended identity verification requirements for returning users, adding an additional layer of oversight and real-time transaction monitoring. These measures strengthen our consumer protection, deter bad actors, and further differentiate Bitcoin Depot Inc. as a trusted, compliant platform as the industry matures.

Earlier this month, we announced the acquisition of Cut, a peer-to-peer social betting platform that enables users to wager directly against one another across sports, entertainment, and user-generated events. This acquisition marks our entry into the P2P social betting market and reflects our broader strategy to thoughtfully diversify beyond Bitcoin ATMs by leveraging our existing payment infrastructure, compliance capabilities, and consumer engagement expertise. To add to this diversification strategy, just last week, we announced the launch of ReadyBox, a standalone business advance platform providing working capital solutions to small businesses, gig workers, and independent contractors. ReadyBox offers advances ranging from $500 to $2,000 in its initial rollout across select states.

Importantly, this platform operates independently from our Bitcoin kiosk business, while leveraging the same compliance, underwriting, and payment infrastructure that underpins our core operation. Together, Cut and ReadyBox represent important steps in our evolution from a single-product operator into a broader fintech platform. Both initiatives leverage our core strengths—compliance, payment, risk management, and customer trust—while expanding our addressable market and creating new, scalable revenue streams. I will now turn the call over to our CFO, David Gray, to walk you through our financial results in more detail. David?

David Gray: Thanks, Scott, and good morning, everyone. Jumping right into our results for the fourth quarter, revenue in the fourth quarter was $116,000,000 compared to $136,800,000 in the prior-year period, reflecting the impact of recently enacted state regulations and enhanced compliance standards. For the full year, revenue increased 7% to $615,000,000, driven by kiosk expansion and continued growth in median transaction size. In fact, at the end of 2025, installed kiosks were 9,721, up 15% from 2024. Median transaction size also grew to $400, up 43% from 2024. We now also define lifetime value, which measures the average cumulative dollar value of all purchases users acquired from inception through the most recent quarter.

Users who have completed at least one transaction between 2016 and 12/31/2025 have transacted a total of $5,311 on average. This is up 5% from the previous year. Gross profit in 2025 was $15,300,000 compared to $23,500,000 in 2024. Fourth-quarter gross margin was 13.2% compared to 17.2% last year, primarily reflecting lower revenue volume in the quarter. For the full year, gross margin expanded 300 basis points to 17.2%, demonstrating the underlying operating leverage in our model. Total operating expenses were $21,400,000 compared to $15,000,000 in last year’s fourth quarter, with the increase due to higher legal and incentive compensation-related expenses. For the year, total OpEx was up 7% to $72,100,000 due to the higher legal expenses.

GAAP net loss for 2025 was $24,900,000 compared to net income of $5,400,000 for 2024. 2025 included an $18,500,000 accrual for an arbitration judgment liability. Net loss attributable to common shareholders in 2025 was $21,000,000, or -$2.80 per share, compared to a net loss of $6,600,000, or $2.54 per share, in last year’s fourth quarter. GAAP net income for the year was down slightly to $5,100,000 compared to $7,800,000 in 2024. Adjusted EBITDA in the fourth quarter was $1,600,000 compared to $13,000,000 in the prior year, reflecting lower revenue and higher operating expenses. For the full year, adjusted EBITDA increased 42% to $56,400,000, underscoring the strength of our operating model over a full-cycle view.

Now turning to our balance sheet and cash flow, cash, cash equivalents, and cryptocurrencies as of 12/31/2025 increased to $76,600,000, compared to $31,000,000 at the end of 2024. During the fourth quarter, we completed a $15,000,000 registered direct offering of our Class A common stock, which we are using for general corporate purposes. We generated $34,000,000 of cash from operating activities in 2025, compared to $22,500,000 last year, an increase of 51%. Debt, including a term loan, finance leases, and profit share arrangements, was $62,500,000 at quarter end compared to $60,900,000 at the end of 2024. Of the total debt balance, $18,000,000 is our term loan, and $40,000,000 is comprised of profit-sharing liabilities.

As a reminder, these profit share arrangements contain an upfront lump-sum payment to the company by our partners in exchange for a portion of future profits generated from a specified group of kiosks for a specified period of time. Because we continue to operate and typically retain title to the machines, we must account for these arrangements as debt under U.S. GAAP. We currently do not anticipate further expansion of the profit share program moving forward.

Now turning to our outlook, given the dynamic regulatory environment Scott discussed, 2026 is likely to be a challenging year for our core BTM business, where we expect revenue to decline between 30% to 40% year over year as the industry resets and adapts to a changing landscape. We will be focused on cost containment and fleet optimization to adapt to these changes, while also working to scale our recently acquired P2P betting platform and newly launched merchant cash advance products. However, we do not expect these to have a material impact on our overall revenue in the current year. Thank you for joining us today and for your continued interest in Bitcoin Depot Inc.

We appreciate your support and look forward to keeping you updated as we continue to build a compliant, diversified fintech platform designed for long-term growth. With that, I will turn it over to the operator to take questions.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. At this time, I would like to remind everyone, in order to ask a question, please press star followed by the number 1 on your telephone keypad. If you would like to withdraw your questions, simply press star 1 again. Our first question comes from the line of Michael Anthony Colonnese from H.C. Wainwright. Please go ahead.

Michael Anthony Colonnese: Thank you for taking my questions. And Scott, congratulations, Don, on the new role with Pharma. Well deserved. First question for me, I was wondering if you could unpack the 2026 revenue guidance a bit. Just trying to get a better sense of the underlying kiosk growth assumption embedded in the outlook. And, David, you touched on this a bit that the Cut acquisition is not going to be a material contributor, but it would just be great to get a better idea as to what that revenue contribution from Cut could look like for 2026.

Scott Buchanan: Yeah. Hey, Mike. This is Scott. Thank you for the question. For the core BTM business, I mean, the revenue decline obviously is a big range that David gave, and that is largely because we do not know exactly what regulatory changes will happen this year. Right? We know states will pass additional measures that will limit the economics in those states, but we do not know how many states or exactly what bills will pass. So that is our best estimate at this point in terms of what the revenue decline could be.

In terms of number of kiosks, that will likely stay flat or down slightly depending on how we want to handle relocations for states that pass particularly negative bills. But it will really just depend on what specifically gets done during this year, and we will continue to update guidance as we have better clarity on that throughout the year.

David Gray: On Cut, Cut is a relatively small business. We think we can accelerate the growth substantially by investing more into their marketing and engineering teams. They have had a very small team prior to us acquiring them, and we think there are a lot of quick wins we can get there. As far as a specific revenue forecast, we do not have that, but revenue will definitely be below $5,000,000 for Cut this year.

Michael Anthony Colonnese: Got it. Very helpful, Scott. Appreciate that. And how do you guys envision the new Bitcoin ATM regulations that have been passed and ones that are to be passed at the state level changing the M&A landscape from here? Obviously, you guys have been acquisitive in the past. Can we expect Bitcoin Depot Inc. to be more acquisitive this year given some of the changes to the laws?

Scott Buchanan: Potentially. Again, it will really depend on what exactly passes and how the rest of the industry reacts to those regulatory changes. We have kind of been opportunistic in the way we approached M&A, where if we have seen some smaller competitors that are struggling to comply with these challenging regulations from an engineering and operating standpoint, it has been us an ability to buy these at attractive valuations. We are not going out and hunting to acquire people in the space, but if there are attractive opportunities out there, we are going to be strategically acquisitive. So it could happen, but it is not like we are actively trying to roll up the entire industry right now.

We really want to see how everyone else reacts to the changes and how well they can comply and how that affects all of our volume going forward.

Operator: And if you would like to ask a question, please press star followed by the number 1 on your telephone keypad. Our next question comes from the line of Patrick Joseph McCann with Noble Capital Markets.

Patrick Joseph McCann: Hey, good morning. Thanks for taking my questions. Just have a couple here. First, both with regard to regulations, I guess, with regard to 2026 and what you are seeing there in terms of which states are in the process of passing regulations and which ones, you know, recently did. I was wondering if, you know, by the end of 2026, do you have a sense of where the regulatory landscape will settle for the—you know, for your largest states?

I guess, you know, really, my question is, will—do you believe you will be at a point where many of your largest states will have gone through the regulatory changes, or maybe how much more disruption or meaningful disruption would you expect that would still be ahead in terms of states that have not yet gotten around to this?

Scott Buchanan: Yeah. I think a great question. Thank you, Pat. I think in 2026, we will have seen 80% to 90% of the states decide where their stance is on this from a regulatory standpoint, at least initially. So 2027 should be much, much less activity. There could be some revisions to existing states with bills in 2027 as they kind of learn more and see what the impact is of what they passed initially. But, generally, I would say by the end of 2026, we will have clarity on which states are going to regulate them now.

Patrick Joseph McCann: Great. That is helpful. And then my other question is really just a follow-up. With the regulatory actions going on in the states, I was just wondering how that affects your view of the markets. Are those going to be having similar issues or similar developments, or do those become more appealing now? Has that changed or maybe accelerated your ambitions in the international markets at all?

Scott Buchanan: I do not know that we have seen changes internationally anywhere like what we are seeing in the U.S. So we are still actively working on two more countries currently that we would hope to launch in either late Q1 or early Q2. We are still actively working on international expansion, and we still have high hopes for that being a successful path for us. But, again, it will depend on each jurisdiction. Right? Like, there are still so few kiosks in most of these countries that these countries probably have not even thought about regulating the industry.

And so we will just have to pay close attention as we are going into these spaces on how they view the industry once there starts to be a meaningful number of kiosks in those countries.

Operator: At this time, that concludes our question-and-answer session. I will now turn the call back over to Scott Buchanan for closing remarks.

Scott Buchanan: Thank you, everybody, for joining the call today. We look forward to keeping you updated on our progress throughout the year.

Operator: Thank you for joining us today for Bitcoin Depot Inc.’s fourth quarter call. You may now disconnect.