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Banxa Holdings, Inc. (TSE:BNXA)
:BNXA
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Banxa Holdings
(BNXA)
47Neutral
Positive Factors
Financial Performance
Adjusted EBITDA losses are down significantly year over year, with 2024 full-year loss of A$1.1M versus A$13.4M for the 2023 fiscal year.
Revenue Growth
Sequential increase in September revenue, which sprang to A$96.5M, up 77% from the A$54.5M posted in the June quarter.
Service Integration
Recent crypto-focused discussions leave us thinking we should see more service integration, which should be a benefit to Banxa.
Negative Factors
Management Confidence
A loss of confidence in management's curation and articulation of Banxa's business and strategy has had detrimental effects on the company's capital structure.
Revenue Decline
Revenues fell to A$91.6M in December from A$96.5M in September, only a 5% misstep.
Transaction Volume
Banxa missed benefiting from the run this past December, saw a 14% sequential drop in total transaction volume (TTV).
Banxa Holdings (BNXA) vs. S&P 500 (SPY)
Market Cap
C$35.47M
Dividend YieldN/A
Average Volume (3M)28.91K
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth69.35%
EPS Growth70.48%
CountryCA
Employees158
SectorFinancial
Sector Strength84
IndustryInformation Technology Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding42,231,483
10 Day Avg. Volume19,294
30 Day Avg. Volume28,915
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)-4.59
Price to Sales (P/S)0.00
P/FCF Ratio92.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Banxa Holdings Business Overview & Revenue Model
Company DescriptionBanxa Holdings, Inc. (BNXA) is a financial technology company operating in the digital assets space. The company specializes in providing a fiat-to-crypto gateway solution, enabling seamless transactions between traditional currencies and digital assets. Banxa serves as a bridge for consumers and businesses looking to access the cryptocurrency market, offering a secure and compliant platform for exchanging fiat money into cryptocurrencies. The company operates globally, catering to both individual users and institutional clients, and is committed to ensuring regulatory compliance and security in all its operations.
How the Company Makes MoneyBanxa Holdings, Inc. generates revenue primarily through transaction fees charged on its fiat-to-crypto gateway services. Users who convert their traditional currencies to cryptocurrencies via Banxa's platform are charged a fee, which constitutes a significant portion of the company's income. Additionally, Banxa collaborates with various cryptocurrency exchanges, wallets, and service providers, integrating its gateway solutions to facilitate smooth transactions. These partnerships can contribute to additional revenue streams in the form of service fees or shared revenue agreements. The company's focus on regulatory compliance and security also enhances its appeal to institutional clients, potentially leading to higher transaction volumes and, consequently, increased revenue.
Banxa Holdings Financial Statement Overview
Summary
Banxa Holdings, Inc. demonstrates strong revenue growth but struggles with profitability and financial stability. Persistent net losses, negative equity, and high leverage present significant risks. Although cash flow from operations has improved, overall financial health remains weak.Income Statement
Banxa Holdings, Inc. shows considerable revenue growth with a substantial increase from $6.8M in 2020 to $347.4M in TTM, indicating strong top-line expansion. However, profitability remains a concern with persistent net losses, and negative EBIT and EBITDA across most periods, reflecting operational inefficiencies. The gross profit margin is declining, from 39.5% in 2020 to 8.7% in TTM, further highlighting cost management challenges.45
Neutral
Balance Sheet
The company's balance sheet shows significant financial strain, with negative stockholders' equity and increasing total debt, reaching $14.5M in TTM. The debt-to-equity ratio is not meaningful due to negative equity, and the equity ratio is negative, indicating insolvency risk. There is a downward trajectory in equity, contributing to financial instability.30
Negative
Cash Flow
Cash flow from operations has improved to a positive $341K in TTM from significant negative figures in previous years. However, free cash flow remains weak, and the free cash flow to net income ratio is not favorable due to ongoing net losses. The operating cash flow to net income ratio is improving, but overall cash flow management remains a concern.40
Negative
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 347.39M | 321.21M | 80.35M | 60.72M | 45.97M | 6.79M | Gross Profit |
| 30.13M | 28.76M | 17.23M | 20.84M | 16.85M | 2.68M | EBIT |
| 940.77K | -8.55K | -10.24M | -13.89M | 1.65M | -1.19M | EBITDA |
| 613.27K | -792.79K | -7.33M | -16.30M | -5.29M | -559.17K | Net Income Common Stockholders |
| -2.73M | -4.26M | -9.36M | -17.27M | -5.83M | -4.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.31M | 2.03M | 8.30M | 9.36M | 18.62M | 2.07M | Total Assets |
| 15.63M | 14.43M | 16.52M | 15.39M | 24.90M | 4.05M | Total Debt |
| 14.54M | 11.84M | 9.57M | 1.18M | 444.87K | 460.81K | Net Debt |
| 11.22M | 9.81M | 1.31M | -8.19M | -18.17M | -1.61M | Total Liabilities |
| 22.40M | 20.24M | 18.74M | 7.95M | 5.96M | 2.83M | Stockholders Equity |
| -6.77M | -5.81M | -2.21M | 7.45M | 18.93M | 1.23M |
| Cash Flow | Free Cash Flow | ||||
| 340.61K | -7.96M | -11.33M | -8.23M | -1.18M | -2.56M | Operating Cash Flow |
| 341.47K | -7.95M | -11.33M | -8.03M | -1.11M | -2.48M | Investing Cash Flow |
| 554.54K | 379.31K | 2.59M | -198.31K | -39.82K | -721.47K | Financing Cash Flow |
| -33.16K | 1.16M | 7.50M | -578.01K | 16.83M | 4.14M |
Banxa Holdings Technical Analysis
Positive
0.84
Price Trends
0.70
Positive
0.89
Negative
0.73
Positive
Market Momentum
0.03
Positive
57.00
Neutral
91.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BNXA, the sentiment is Positive. The current price of 0.84 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.70, and above the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 91.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BNXA.
Banxa Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% | |
58 Neutral | C$104.58M | 13.71 | 124.21% | ― | -52.43% | 941.71% | |
54 Neutral | C$35.63M | ― | -18.24% | ― | -10.76% | -19.28% | |
47 Neutral | C$35.47M | ― | 73.33% | ― | 69.35% | 70.48% | |
44 Neutral | $22.74M | ― | -14.91% | ― | 127.63% | 62.71% | |
44 Neutral | C$11.74M | ― | -198.19% | ― | -64.39% | 59.86% | |
38 Underperform | C$12.66M | ― | 99.64% | ― | 34.05% | -58.84% |
* Financial Sector Average
Performance Comparison
TSE:BNXA
Banxa Holdings
0.80
0.12
17.65%
TSE:SPOT
GoldSpot Discoveries
0.17
-0.05
-25.00%
TSE:PBIT
POSaBIT Systems
0.08
-0.13
-62.50%
TSE:KNR
Kontrol Technologies
2.50
0.00
0.00%
TSE:PVT
Pivotree
1.34
-0.26
-16.25%
TSE:PAID
XTM
0.06
-0.08
-57.14%
Banxa Holdings Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2025)
| % Change Since: -14.29%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Banxa with strategic expansions in licensing and market reach, alongside cost efficiencies and new partnerships. However, there are ongoing market challenges and operational losses that need to be addressed.Q1-2025 Updates
Positive Updates
Expansion of Licensing and Market Reach
The company is activating U.K. crypto licenses and U.S. MTL licenses, which will provide cost savings and product flexibility. They've applied for a European markets and crypto assets license in the Netherlands.
Improved Financial Metrics
Net take rate is currently at the upper range of 3.2%, and gross profit has improved by 10% year-on-year. Core business activity saw a 16% increase year-on-year.
Operational and Cost Efficiency
Significant reduction in foreign exchange costs and cost of capital, with cheaper lending facilities secured. The company has maintained flat operating expenses despite increased business volume.
Partnerships and Product Developments
New partnerships with big-name companies like Exodus, CoinW, and Opera MiniPay were established. Product innovations include reducing user journey friction with Google Sign-in and Express Checkout.
Strategic U.S. Expansion
Plans to establish a corporate office in a major U.S. city in 2025 to improve engagement with U.S. investors and expand marketing efforts.
Negative Updates
Market Challenges and Headwinds
Despite improved market sentiment, consumers remain financially challenged, impacting profitability forecasts.
Operational Losses
Operating losses are effectively at breakeven, but the company is not yet consistently profitable.
Increased Chargeback Expenses
Chargeback expenses have increased by $400,000 to $500,000, although offset by reductions in other operating costs.
Company Guidance
During Banxa's Q1 2025 earnings call, the company's leadership highlighted several key metrics and strategic initiatives. The company's transaction volume (TTV) for 2024 was approximately $1 billion, and they expressed confidence that reaching $1.5 billion in TTV annually would lead to profitability, given their current net take rate of 2.8% to 3.2%. They are expanding their reach, now servicing over 170 countries and embedding their services in more than 300 crypto platforms, with exposure to over 1 billion users globally. Their operational focus includes obtaining key licenses, such as the U.K. crypto license and U.S. money transmission licenses, to enhance product offerings and achieve cost savings. The company is also working on unbundling their technology stack to tap into new markets like cross-border remittances and commerce payments. Banxa plans to shift its corporate offices to the U.S. in 2025, aiming to strengthen partnerships and investor engagement, while also considering reporting financials in USD instead of Australian dollars. The management emphasized their commitment to maintaining expense control and prudent capital allocation to ensure sustainable growth and profitability.Banxa Holdings Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Banxa Secures US$5 Million Loan to Enhance Operational Capabilities
Positive
Apr 30, 2025
Banxa Holdings Inc. has announced the completion of a secured loan transaction, issuing a promissory note for up to US$5.0 million to an arm’s length third party. The loan will be disbursed in tranches, with an initial US$2.0 million followed by three monthly tranches of US$1.0 million each, and will mature in six months with a 10% annual interest rate. The funds are intended for working capital and general corporate purposes, with the company’s obligations secured by its assets. This financial move is expected to bolster Banxa’s operational capabilities and strengthen its position in the rapidly evolving crypto economy.
Spark’s Take on TSE:BNXA Stock
According to Spark, TipRanks’ AI Analyst, TSE:BNXA is a Neutral.
Banxa Holdings, Inc. demonstrates rapid revenue growth but faces significant challenges with profitability, financial stability, and valuation. Technical analysis shows some potential for short-term momentum, but high leverage and negative equity are critical risks. Overall, the stock is a speculative investment, mainly appealing to investors seeking growth potential amid financial uncertainties.
To see Spark’s full report on TSE:BNXA stock, click here.
M&A TransactionsBusiness Operations and Strategy
Banxa Holdings Receives Unsolicited Acquisition Proposal
Neutral
Apr 8, 2025
Banxa Holdings Inc. has received an unsolicited acquisition proposal from an investor group led by Mr. Khurram Shroff to acquire all outstanding shares at a price between C$1.00 to C$2.00 per share. The company’s board is reviewing the proposal with legal and financial advisors to determine the best course of action for shareholders. The board is also exploring various strategic and financial options to enhance shareholder value, but there is no guarantee that any agreement will be reached.
Spark’s Take on TSE:BNXA Stock
According to Spark, TipRanks’ AI Analyst, TSE:BNXA is a Underperform.
Banxa Holdings, Inc. faces significant financial challenges with operational inefficiencies, high leverage, and negative equity. Despite rapid revenue growth, profitability remains elusive. Technical indicators suggest weak momentum, and valuation metrics do not offer an attractive entry point. Overall, the stock’s financial instability and lack of positive catalysts result in a low score.
To see Spark’s full report on TSE:BNXA stock, click here.
Business Operations and StrategyFinancial Disclosures
Banxa Holdings Inc. Reports Financial Results for December Quarter
Neutral
Mar 3, 2025
Banxa Holdings Inc. reported a 10% decrease in Total Transaction Volume for the December quarter, attributed to increased competition and low exposure to certain digital assets. Despite this, the company achieved a 6% increase in Gross Profit and improved its Adjusted EBITDA, reflecting successful optimization of transaction costs and pricing strategies. The company’s strategic investments in infrastructure and technology have positioned it as a leading platform in the industry, opening up new market opportunities.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.