Exodus Movement, Inc.

Previous wording

We are engaged principally in the business of creating and distributing self-custodial wallets for digital assets. Because a majority of our revenue is derived from services provided by application programming interface (“API”) providers (“API Providers”) to persons located outside the United States pursuant to a transaction-based structure, our profitability is dependent on a number of factors including the pricing of digital assets, the volume of transactions and the quality of our third-party relationships.

Current wording

We are engaged principally in the business of creating and distributing self-custodial wallets for digital assets. Due to a majority of our revenue being derived from services provided by application programming interface (“API”) providers (“API Providers”) to persons located outside the United States pursuant to a transaction-based structure, our profitability is dependent on a number of factors including the pricing of digital assets, the volume of transactions and the quality of our third-party relationships.

Previous wording

Cloud based infrastructure expense – Cloud infrastructure expenses decreased $0.3 million and $0.4 million for the three and six months ended June 30, 2025, respectively, compared to three and six months ended June 30, 2024 primarily due to cost optimization efforts, including monthly reviews by the Development Operations team to reduce waste, improve instance efficiency, and minimize inter-zone transfer costs. We anticipate increased cloud infrastructure expenses as the platform continues to grow due to increased database capacity and new users.

Current wording

Cloud based infrastructure expense – Cloud infrastructure expenses increased $0.7 million and $0.3 million for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024, respectively. We anticipate increased cloud infrastructure expenses as the platform continues to grow due to increased database capacity and new users.

Previous wording

Investment in human capital – Costs related to investment in human capital (including recruiting costs, salary, incentive and compensation costs) increased $1.3 million and $2.6 million for the three and six months ended June 30, 2025 compared to three and six months ended June 30, 2024, primarily due to an increase in salaries, payroll taxes and stock based compensation. As the Exodus platform continues to expand, we anticipate the need to add more team members to accommodate the growth in our business, which is expected to materially increase expenses as a result of the impact on the human capital costs described above. Human capital costs are also expected to increase due to the need to add additional team members to address compliance with the evolving regulatory environment, including as a publicly traded company.

Current wording

Investment in human capital – Costs related to investment in human capital increased $5.7 million and $8.3 million for the three and nine months ended September 30, 2025 compared to three and nine months ended September 30, 2024, respectively, primarily due to an increase in salaries, payroll taxes and stock based compensation. As the Exodus platform continues to expand, we anticipate the need to add more team members to accommodate the growth in our business, which is expected to materially increase expenses as a result of the impact on the human capital costs described above. Human capital costs are also expected to increase due to the need to add additional team members to address compliance with the evolving regulatory environment, including as a publicly traded company.

Previous wording

Marketing expenses – Marketing-related costs increased $3.4 million and $4.5 million for the three and six months ended June 30, 2025 compared to three and six months ended June 30, 2024, respectively. The increase was primarily due to increased spending on website advertisements targeted at the digital asset focused spaces and on online platforms, such as the App Store, and marketing agency expenses. To date, we have primarily focused our marketing strategy toward user growth. We continue to evaluate our marketing strategy and in the future may decide to refocus the current organic growth-based strategy in growing our user base to a more competitive approach, which would be expected to further increase marketing-related expenses.

Current wording

Marketing expenses – Marketing-related costs increased $2.7 million and $7.2 million for the three and nine months ended September 30, 2025 compared to three and nine months ended September 30, 2024, respectively. The increase was primarily due to increased spending on website advertisements targeted at the digital asset focused spaces and on online platforms, such as the App Store, and marketing agency expenses. To date, we have primarily focused our marketing strategy toward user growth. We continue to evaluate our marketing strategy and in the future may decide to refocus the current organic growth-based strategy in growing our user base to a more competitive approach, which would be expected to further increase marketing-related expenses.

Previous wording

Changes in tax laws –We operate in various jurisdictions and are subject to changes in applicable tax laws, treaties or regulations in those jurisdictions. A material change in the tax laws, treaties or regulations, or their interpretation, of any jurisdiction with which we do business, or in which we have significant operations, could adversely affect us. For example, the new Pillar 2 approach, which came into effect in 2023 in certain jurisdictions, will establish a global minimum tax rate of 15%, such that multinational enterprises with an effective tax rate in a jurisdiction below this minimum rate will need to pay additional tax. While many aspects of the application of Pillar 2 remain to be clarified, including how the jurisdictions in which we operate, and those in which we and our subsidiaries are based, choose to implement the Organization for Economic Cooperation and Development’s approach in their tax treaties and domestic tax laws, we do not expect Pillar 2 to apply in 2025. On July 4, 2025, the “One Big Beautiful Bill Act” (P.L. 119‑21) was enacted into law. The legislation reinstates and extends several provisions of the 2017 Tax Cuts and Jobs Act, including permanent 100% bonus depreciation, enhanced Section 179 expensing, full R&D expense deduction for domestic expenditures and modification to the international tax framework. We are currently assessing its impact on our consolidated financial statements.

Current wording

Changes in tax laws –We operate in various jurisdictions and are subject to changes in applicable tax laws, treaties or regulations in those jurisdictions. A material change in the tax laws, treaties or regulations, or their interpretation, of any jurisdiction with which we do business, or in which we have significant operations, could adversely affect us. For example, the new Pillar 2 approach, which came into effect in 2023 in certain jurisdictions, will establish a global minimum tax rate of 15%, such that multinational enterprises with an effective tax rate in a jurisdiction below this minimum rate will need to pay additional tax. While many aspects of the application of Pillar 2 remain to be clarified, including how the jurisdictions in which we operate, and those in which we and our subsidiaries are based, choose to implement the Organization for Economic Cooperation and Development’s approach in their tax treaties and domestic tax laws, we do not expect Pillar 2 to apply in 2025. On July 4, 2025, the “One Big Beautiful Bill Act” (P.L. 119‑21) was enacted into law. The legislation reinstates and extends several provisions of the 2017 Tax Cuts and Jobs Act, including permanent 100% bonus depreciation, enhanced Section 179 expensing, full R&D expense deduction for domestic expenditures and modification to the international tax framework. The primary impact of the legislation is the acceleration of deductions related to research and development costs incurred in the US which did not have a material impact on the Company’s effective tax rate in the quarter ended September 30, 2025. We are continuing to assess its impact on our consolidated financial statements.

Previous wording

During the three and six months ended June 30, 2025, the Company incurred approximately $1.2 million and $3.0 million in expenses associated with the evaluation, negotiation, and travel due to prospective business acquisitions. The Company expects these expenses to continue throughout 2025 as it continues to evaluate potential acquisition targets. These expenses primarily include legal and advisory costs and are recorded within general and administrative expenses in the accompanying condensed consolidated statements of operations. There were no growth initiative expenses in the three and six months ended June 30, 2024.

Current wording

During the three and nine months ended September 30, 2025, the Company incurred $1.3 million and $4.3 million, respectively, in expenses associated with the evaluation, negotiation, and travel due to prospective business acquisitions. The Company expects these expenses to continue throughout 2025 as it continues to evaluate potential acquisition targets. These expenses primarily include legal and advisory costs and are recorded within general and administrative expenses in the accompanying condensed consolidated statements of operations. There were no growth initiative expenses in the three and nine months ended September 30, 2024.

Previous wording

In addition, the Company incurred approximately $2.2 million and $6.5 million in revenue sharing expenses related to its business-to-business partnerships for the three and six months ended June 30, 2025, respectively and approximately $0.4 million and $0.8 million in revenue sharing expenses related to its business-to-business partnerships for the three and six months ended June 30, 2024. While the Company does not control the operations or growth of its partners, their success can directly impact our own performance. As these partners grow or as new partnerships are formed, our associated revenue sharing expenses are expected to increase. These expenses represent costs of revenue and are included within technology, development, and user support expenses in the consolidated statements of operations.

Current wording

In addition, the Company incurred $5.0 million and $11.7 million in revenue sharing expenses related to its business-to-business partnerships for the three and nine months ended September 30, 2025, respectively and $0.5 million and $1.3 million in revenue sharing expenses related to its business-to-business partnerships for the three and nine months ended September 30, 2024. While the Company does not control the operations or growth of its partners, their success can directly impact our own performance. As these partners grow or as new partnerships are formed, our associated revenue sharing expenses are expected to increase. These expenses represent costs of revenue and are included within technology, development, and user support expenses in the condensed consolidated statements of operations.

Previous wording

Monthly Active Users ("MAUs") were 1.5 million at each of June 30, 2025 and 2024. Our strategic focus remains on expanding our active user base, improving app features, and expanding our business-to-business partnerships. We believe that over the long term, interest in digital assets and digital asset markets will continue to increase. However, during any given period, we cannot be certain that our MAU growth efforts will be effective or that interest in digital assets will remain or continue to increase.

Current wording

Monthly Active Users ("MAUs") were 1.5 million and 1.6 million as of September 30, 2025 and 2024, respectively. Our strategic focus remains on expanding our active user base, improving app features, and expanding our business-to-business partnerships. We believe that over the long term, interest in digital assets and digital asset markets will continue to increase. However, during any given period, we cannot be certain that our MAU growth efforts will be effective or that interest in digital assets will remain or continue to increase.

Previous wording

QFUs totaled 1.7 million and 1.5 million as of June 30, 2025 and 2024, respectively, reflecting an increase of 0.2 million, or approximately 13%. This growth reflects user engagement in addition to active user count. We expect MAUs to fluctuate more significantly in response to app usage patterns and broader market conditions. In contrast, QFUs provide a longer-term view of engagement, representing a more stable cohort—users with funded wallets actively participating in the Exodus platform.

Current wording

QFUs totaled 1.8 million and 1.5 million as of September 30, 2025 and 2024, respectively, reflecting an increase of 0.3 million, or 20%. This growth reflects user engagement in addition to active user count. We expect MAUs to fluctuate more significantly in response to app usage patterns and broader market conditions. In contrast, QFUs provide a longer-term view of engagement, representing a more stable cohort—users with funded wallets actively participating in the Exodus platform.

Previous wording

Results of operations for the three and six months ended June 30, 2025 and 2024 (in thousands):

Current wording

Results of operations for the three and nine months ended September 30, 2025 and 2024 (in thousands):

Previous wording

Revenue increased $3.5 million, or 16%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily driven by exchange aggregation revenue, which increased $3.5 million, or 17%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, which was primarily attributable to volume exchange growth related to our business-to-business partner efforts. Non-exchange aggregation (i.e., fiat onboarding, staking, consulting, and other) revenue increased $0.05 million, or 2%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase in non-exchange revenue was primarily driven by a $0.6 million (113%) rise in staking revenue, reflecting growth in total staked assets. This was partially offset by a 62% year-over-year decline in NFT and consulting revenue, due to lower business-to-business NFT activity and reduced demand for consulting services.

Current wording

Revenue increased $10.2 million, or 51%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was primarily driven by exchange aggregation revenue, which increased $8.8 million, or 48%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, which was primarily attributable to volume exchange growth related to our business-to-business partner efforts. Non-exchange aggregation (i.e., fiat onboarding, staking, consulting, and other) revenue increased $1.5 million, or 73%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The non-exchange revenue increase was driven by higher staking revenue with an increase of $1.3 million or 272%, reflecting growth in total staked assets and reward mechanisms, while also having an increase in fiat-onboarding, reflecting growth of 55%, or $0.5 million.

Previous wording

Revenue increased $10.5 million, or 20%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase was primarily driven by exchange aggregation revenue, which increased $10.5 million, or 23%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, which was primarily attributable to volume exchange growth related to our business-to-business partner efforts. Non-exchange aggregation (i.e., fiat onboarding, staking, consulting, and other) revenue decreased $0.1 million, or 2%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The non-exchange revenue decrease was driven by lower NFT revenue with a decrease of $0.8 million or 86% as a result of the business-to-business NFT revenue decreasing due to reduced market demand within the NFT market, but partially offset by growth in staking and fiat revenue, which grew by 45% and 8%, respectively, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.

Current wording

Revenue increased $20.7 million, or 29%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily driven by exchange aggregation revenue, which increased $19.3 million, or 30%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, which was primarily attributable to volume exchange growth related to our business-to-business partner efforts. Non-exchange aggregation (i.e., fiat onboarding, staking, consulting, and other) revenue increased $1.4 million, or 21%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The non-exchange revenue increase was driven by higher staking revenue with an increase of $1.9 million or 112% as a result in growth in total staked assets and new reward mechanisms. Fiat revenue grew by 22%, or $0.6 million for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

Previous wording

For the three and six months ended June 30, 2025, five API Providers accounted for more than 10% each of total revenue and collectively generated exchange aggregation revenue of $19.3 million and $43.9 million, respectively. For the three and six months ended June 30, 2024, four API Providers accounted for more than 10% each of total revenue and collectively generated exchange aggregation revenue of $15.5 million and $36.7 million, respectively.

Current wording

For the three months ended September 30, 2025, four API Providers accounted for more than 10% each of total revenue and collectively generated exchange aggregation revenue of $18.4 million. For the nine months ended September 30, 2025, five API Providers accounted for more than 10% each of total revenue and collectively generated exchange aggregation revenue of $64.3 million. For the three and nine months ended September 30, 2024, four API Providers accounted for more than 10% each of total revenue and collectively generated exchange aggregation revenue of $13.8 million and $50.6 million, respectively.

Previous wording

The following table summarizes the revenue by users of the platform and the business-to-business partnerships for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes the revenue by users of the platform and the business-to-business partnerships for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Technology, development and user support increased $4.0 million, or 37%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase was primarily due to a $1.5 million increase in partner fee expense as a result of a correlated increase in revenue from business-to-business partnerships, a $1.5 million increase in team member compensation and benefit expense as a result of increased team member compensation, payroll taxes and stock based compensation, a $0.6 million decrease in capitalized labor as a result of impairment of software projects, a $0.4 million increase in testing expenses, and a $0.2 million increase in subscription expenses primarily driven by higher costs associated with key infrastructure vendors for development tools, application development, performance optimization and security protections, partially offset by a $0.3 million dollar decrease in cloud services expenses and a $0.2 million decrease in depreciation and amortization expenses.

Current wording

Technology, development and user support increased $5.7 million, or 50%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was primarily due to a $4.5 million increase in partner fee expense as a result of a correlated increase in revenue from business-to-business partnerships, a $2.1 million increase in team member compensation and benefit expense as a result of increased team member compensation and a $0.7 million increase in cloud services expenses, partially offset by a $0.6 million decrease in subscription expenses primarily driven by higher costs associated with key infrastructure vendors for development tools, application development, performance optimization and security protections and a $0.5 million decrease in depreciation and amortization expenses.

Previous wording

Technology, development and user support increased $8.2 million, or 38%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase was primarily due to a $5.8 million increase in partner fee expense as a result of a correlated increase in revenue from business-to-business partnerships, a $0.7 million increase in team member compensation and benefit expense as a result of increased team member compensation, payroll taxes and stock based compensation, a $1.3 million decrease in capitalized labor as a result of impairment of software projects, a $0.4 million increase in testing expenses, and a $0.5 million increase in subscription expenses primarily driven by higher costs associated with key infrastructure vendors for development tools, application development, performance optimization and security protections, partially offset by a $0.4 million decrease in depreciation and amortization expenses and a $0.1 million decrease in technology equipment.

Current wording

Technology, development and user support increased $13.8 million, or 42%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily due to a $10.4 million increase in partner fee expense as a result of a correlated increase in revenue from business-to-business partnerships, a $2.8 million increase in team member compensation and benefit expense as a result of increased team member compensation, payroll taxes and stock based compensation, partially offset by a $1.4 million increase in capitalized labor as a result of impairment of software projects, a $0.9 million decrease in depreciation and amortization expenses, a $0.2 million decrease in subscription expenses primarily driven by higher costs associated with key infrastructure vendors for development tools, application development, performance optimization and security protections, a $0.1 million decrease in technology equipment expense.

Previous wording

General and administrative expenses increased $9.8 million, or 108%, for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. Expenses driving the increase include a $3.4 million increase in marketing expenses, a $3.3 million increase in meeting and travel expense, a $2.5 million increase in legal and regulatory expenses, a $1.3 million increase in legal and consulting expenses, a $0.3 million increase in political contributions, a $0.2 million increase in subscription expenses, partially offset by a $1.4 million decrease in foreign currency expense and a $0.2 million decrease in team member compensation and benefit expenses.

Current wording

General and administrative expenses increased $6.4 million, or 76%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Expenses driving the increase include a $3.6 million increase in team member compensation and benefit expenses, $2.7 million increase in marketing expenses, a $0.7 million increase in foreign currency expense, a $0.5 million increase in legal and consulting expenses, a $0.4 million increase in expense associated with the issuance of warrants, a $0.2 million increase in subscription expense and a $0.2 million increase in miscellaneous expenses partially offset by a $0.3 million decrease in meeting and travel expenses and a $0.1 million decrease in political contributions.

Previous wording

General and administrative expenses increased $16.0 million, or 94%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. Expenses driving the increase include a $4.5 million increase in marketing expenses, a $4.5 million increase in meeting and travel expenses, a $2.5 million increase in legal and regulatory expenses, a $1.8 million increase in team member compensation and benefit expenses as a result of increased team member compensation, payroll taxes and stock based compensation, a $3.3 million increase in legal and consulting expenses, $1.4 million increase in political contributions, a $0.4 million increase in subscription expenses, and a $0.1 million increase in technology equipment expenses, partially offset by a $2.9 million decrease in foreign currency expense and $0.1 million in network fees.

Current wording

General and administrative expenses increased $22.4 million, or 88%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Expenses driving the increase include a $7.2 million increase in marketing expenses, a $5.4 million increase in team member compensation and benefit expenses as a result of increased team member compensation, a $4.2 million increase in meeting and travel expenses, a $3.8 million increase in legal and consulting expenses, a $2.5 million increase in regulatory expenses, a $1.3 million increase in political contributions, a $0.7 million increase in miscellaneous expenses, a $0.6 million increase in subscription expense and a $0.4 million increase in expense associated with the issuance of warrants, partially offset by a decrease of $2.1 million in foreign currency expenses.

Previous wording

The Company experienced a favorable fluctuation in the market price of digital assets held during the three months ended June 30, 2025, primarily driven by institutional inflows and ETF adoption, regulatory clarity and stablecoin legislation, and macro and geopolitical tailwinds. During the three months ended June 30, 2025, the Company recognized net realized gains from exchange of digital assets of $1.2 million and net unrealized gains from remeasurement of digital assets of $51.2 million. During the three months ended June 30, 2024, the Company recognized net realized gains from exchange of digital assets of $1.8 million and net unrealized losses from remeasurement of digital assets of $19.0 million.

Current wording

The Company experienced a favorable fluctuation in the market price of digital assets held during the three months ended September 30, 2025, primarily driven by institutional inflows and ETF adoption, regulatory clarity and stablecoin legislation, and macro and geopolitical tailwinds. During the three months ended September 30, 2025, the Company recognized net realized gains from exchange of digital assets of $3.6 million and net unrealized gains from remeasurement of digital assets of $24.6 million. During the three months ended September 30, 2024, the Company recognized net realized losses from exchange of digital assets of $0.7 million and net unrealized gains from remeasurement of digital assets of $0.4 million.

Previous wording

The Company experienced a favorable fluctuation in the market price of digital assets held during the six months ended June 30, 2025, primarily driven by institutional inflows and ETF adoption, regulatory clarity and stablecoin legislation, and macro and geopolitical tailwinds. During the six months ended June 30, 2025, the Company recognized net realized gains from exchange of digital assets of $6.3 million and net unrealized gains from remeasurement of digital assets of $17.3 million. During the six months ended June 30, 2024, the Company recognized net realized gains from exchange of digital assets of $5.8 million and net unrealized gains from remeasurement of digital assets of $33.7 million.

Current wording

The Company experienced a favorable fluctuation in the market price of digital assets held during the nine months ended September 30, 2025, primarily driven by institutional inflows and ETF adoption, regulatory clarity and stablecoin legislation, and macro and geopolitical tailwinds. During the nine months ended September 30, 2025, the Company recognized net realized losses from exchange of digital assets of $2.8 million and net unrealized gains from remeasurement of digital assets of $41.9 million. During the nine months ended September 30, 2024, the Company recognized net realized gains from exchange of digital assets of $5.1 million and net unrealized gains from remeasurement of digital assets of $34.1 million.

Previous wording

Income tax expense was $0.9 million for the six months ended June 30, 2025, compared to an expense of $9.3 million for the six months ended June 30, 2024. The effective tax rate during the six months ended June 30, 2025 was 3.6% compared to 17.3% during the six months ended June 30, 2024. For the six months ended June 30, 2025, the change from the effective rate was primarily impacted by the change in permanent differences, including non-deductible expenses, and discrete items, including stock-based compensation and tax effect of realized and unrealized digital asset gains and losses during the period. For the six months ended June 30, 2024, the change from the effective rate was primarily impacted by the change in permanent differences and discrete items, including the tax benefit from the foreign derived intangible income and the effect of digital asset gains and losses, specifically recognized in the period.

Current wording

Income tax expense was $3.3 million for the three months ended September 30, 2025, compared to an expense of $0.1 million for the three months ended September 30, 2024. The effective tax rate during the three months ended September 30, 2025 was 16.1%, compared to 11.4% during the three months ended September 30, 2024. Income tax expense was $4.2 million for the nine months ended September 30, 2025, compared to an expense of $9.4 million for the nine months ended September 30, 2024. The effective tax rate during the nine months ended September 30, 2025 was 9.1%, compared to 16.9% during the nine months ended September 30, 2024. For the nine months ended September 30, 2025, the change from the effective rate was primarily impacted by federal research tax credits and the change in permanent differences, including the tax benefit from the foreign derived intangible income, non-deductible expenses, and discrete items, including stock-based compensation and tax effect of realized and unrealized digital asset gains and losses during the period. For the nine months ended September 30, 2024, the change from the effective rate was primarily impacted by the change in permanent differences and discrete items, including the tax benefit from foreign derived intangible income and the effect of digital asset gains and losses, specifically recognized in the period.

Previous wording

Net cash used in operating activities increased from June 30, 2024 to June 30, 2025 by $9.5 million. The primary drivers of the change were a decrease in net income of $20.4 million, an increase of $4.5 million in operating activities settled in digital assets and USDC, an increase of $2.4 million in working capital, and a decrease in deferred tax expense of $4.1 million, offset by a net decrease on digital assets of $15.9 million and an increase in stock based compensation of $2.0 million. The primary drivers of the increase in operating activities settled in digital assets and USDC included an increase to revenue of $11.6 million related to increased transaction volume, increased currency conversion of $2.0 million and increased payroll liabilities of $2.1 million, partially offset by $6.5 million of increased expenses, $2.3 million of conversion of digital assets and USDC to cash, net for use in operational expense and $2.3 million in accounts receivable.

Current wording

Net cash used in operating activities increased by $9.4 million for the nine months ended September 30, 2025 as compared to September 30, 2024. The primary drivers of the change were an increase of $10.0 million in operating activities settled in digital assets and USDC, an increase in stock based compensation of $5.7 million, a net increase in gains on digital assets of $5.5 million, a decrease in net income of $4.2 million, offset by a decrease of $6.3 million in working capital and a decrease in deferred tax expense of $0.9 million. The primary drivers of the increase in operating activities settled in digital assets and USDC included an increase to revenue of $21.1 million related to increased transaction volume, $12.5 million of increased expenses, $1.5 million of conversion of digital assets and USDC to cash, net for use in operational expense and $1.1 million in accounts receivable, partially offset by decreased payroll liabilities of $2.6 million and decreased currency conversion of $1.3 million.

Previous wording

Net cash provided by investing activities increased from June 30, 2024 to June 30, 2025 by $16.8 million. The increases were related to $24.0 million of net change in treasury bills investments and redemptions, proceeds for the sale of future token interests of $2.0 million, a decrease in purchases of $1.0 million of digital assets, partially offset by a decrease of $10.2 million of digital assets sold for cash.

Current wording

Net cash provided by investing activities increased by $16.9 million for the nine months ended September 30, 2025 as compared to September 30, 2024. The increases were related to $29.2 million of net change in treasury bills investments and redemptions, proceeds for the sale of future token interests of $2.0 million, partially offset by a decrease of $14.5 million of digital assets sold for cash and a decrease in purchases of $0.1 million of digital assets.

Previous wording

Net cash used in financing activities increased from June 30, 2024 to June 30, 2025 by $8.6 million. This was primarily driven by cash used for the repurchase of shares of our common stock to pay employee withholding taxes as a part of our 2019 and 2021 Plan.

Current wording

Net cash used in financing activities increased by $10.1 million for the nine months ended September 30, 2025 as compared to September 30, 2024. This was primarily driven by cash used for the repurchase of shares of our common stock to pay employee withholding taxes as a part of our 2019 and 2021 Plan.