CURRENC Group 2025 Q1 Earnings Net Income Decline Worsens

CURRENC Group (CURR) reported its fiscal 2025 Q1 earnings on May 20th, 2025. The company's earnings fell short of expectations, with a widening net loss and a sharp decline in revenue. Despite these challenges, CURRENC has adjusted its guidance, anticipating improved financial performance in the upcoming fiscal year. The company aims to grow its revenue by 17.98% in FY 2026, while also reducing its EPS loss. Management is optimistic about the strategic shift towards AI initiatives and expanded remittance services, which are expected to drive future growth.

Revenue
CURRENC Group's total revenue for Q1 2025 decreased by 23.3% to $10.06 million compared to the previous year. Remittance services generated $4.58 million, while fiat remittance contributed $4.41 million. The on-demand liquidity remittance segment recorded $172,728. Sales of airtime reached $5.46 million, and other services brought in $12,952, culminating in a total revenue of $10.06 million for the quarter.

Earnings/Net Income
CURRENC Group's net income performance deteriorated in Q1 2025, with the company reporting a loss of $0.13 per share, up from a loss of $0.09 per share in Q1 2024. The net loss widened significantly to $4.49 million from $2.63 million, marking a 70.5% increase. The EPS results indicate a continued financial struggle for the company.

Price Action
The stock price of CURRENC Group has experienced a significant downturn, dropping 15.90% during the latest trading day, 42.00% over the most recent full trading week, and 58.19% month-to-date.

Post-Earnings Price Action Review
The investment strategy of acquiring CURR shares post-revenue beats and holding for 30 days resulted in substantial losses. The approach yielded a negative return of 42.61%, which underperformed the benchmark by 43.64%. This strategy exhibited high volatility and poor returns, as evidenced by the Sharpe ratio of -1.05 and the maximum drawdown of 42.61%. Investors faced significant risks without commensurate returns, highlighting the challenges in relying on this approach amidst the company's recent financial struggles.

CEO Commentary
Ronnie Hui, CEO of CURRENC, highlighted the continued strength of the remittance business despite a competitive market, achieving a combined EBITDA of $1.2 million for Tranglo and WalletKu in Q1 2025. He acknowledged the challenges from reduced airtime demand and emphasized a strategic focus on AI initiatives and higher-margin remittance corridors. Hui stressed the importance of cost management, noting increased operating expenses due to a one-time share-based incentive from the de-SPAC merger. He expressed optimism about leveraging AI for growth while maintaining financial discipline to enhance operational scale and product value.

Guidance
CURRENC Group forecasts a revenue increase to $53.55 million for FY 2026, reflecting a year-over-year growth of 17.98%. The company plans to reduce its EPS loss from -0.15 in FY 2025 to -0.10 in FY 2026. Management aims to improve operational efficiency and diversify its revenue base through strategic investments in AI solutions and expanded remittance services.

Additional News
Recently, CURRENC Group announced a significant leadership change with the appointment of Wan Lung Eng as Chief Financial Officer, effective April 16, 2025. Eng brings over 20 years of experience in finance, having held CFO positions at various firms and executive roles at major financial institutions. The company also partnered with ARC Group to launch the CURR-ARC AI Fund 1, targeting up to $100 million in investments focused on AI computing and green energy infrastructure. Additionally, CURRENC plans to develop a 500MW hyperscale AI data center in Johor, Malaysia, to support AI adoption across Southeast Asia.