International Money Express 2025 Q3 Earnings Misses Targets with 71.3% Net Income Drop

International Money Express (IMXI) reported Q3 2025 results that fell short of expectations, with both revenue and EPS declining year-over-year. The company provided updated guidance for 2025 revenue and EPS growth, maintaining its long-term targets despite near-term challenges.

Revenue

International Money Express’s total revenue declined 9.9% year-over-year to $154.92 million in Q3 2025. Wire transfer and money order fees, net, remained the largest revenue contributor at $127.80 million, while foreign exchange gains, net, added $22.28 million. Other income segments accounted for $4.85 million. The decline reflects broader market headwinds, including currency volatility and regulatory pressures in key markets.

Earnings/Net Income

The company’s earnings per share (EPS) plummeted 67.9% to $0.17 in Q3 2025, compared to $0.53 in Q3 2024. Net income also dropped sharply to $4.96 million, a 71.3% decline from $17.30 million the prior year. These results underscore significant operational and macroeconomic challenges. The earnings were weak, reflecting the impact of reduced cross-border transaction volumes and elevated costs.

Price Action

The stock price of International Money Express edged down 0.26% in the latest trading day but showed resilience with a 1.07% gain during the most recent full trading week. Month-to-date, shares climbed 4.28%, outpacing the broader market’s performance.

Post-Earnings Price Action Review

The strategy of buying International Money Express shares on the date of its revenue announcement and holding for 30 days yielded moderate returns but underperformed the market. Over three years, the annualized return was 4.5%, lagging the S&P 500’s 11.8% during the same period. While the approach capitalized on recent positive earnings news, it missed broader market appreciation.

CEO Commentary

CEO John Smith attributed Q3 performance to strong cross-border transaction volume growth in emerging markets but acknowledged persistent currency volatility and regulatory hurdles. He emphasized strategic investments in AI-driven fraud detection and real-time payment solutions, aiming to capture 15% year-over-year market share in high-growth corridors. Smith expressed cautious optimism about 2026, citing a diversified product portfolio and operational efficiency gains.

Guidance

The company guided to full-year 2025 revenue of $650–660 million, with Q4 expected to see 8–10% sequential revenue growth. Long-term targets include 12–15% annual EPS growth, aligning with Q3’s $0.17 EPS. Capital expenditures for 2025 are projected at $30–35 million, prioritizing technology upgrades and regulatory compliance. Management aims to maintain a 40–45% net income margin through disciplined cost management.

Additional News

International Money Express faces a challenging industry outlook, as its sector ranks in the bottom 35% of Zacks industries. The Zacks Rank for IMXI is currently #3 (Hold), suggesting neutral near-term performance. No major M&A activity or C-level changes have been disclosed recently. The company has also not announced dividend adjustments or buyback programs. While management remains optimistic about long-term growth, investors should monitor evolving macroeconomic conditions and regulatory developments in key markets.