0001683168-26-003924
SEC filingRevenue nearly halved and the company swung to a net loss, driven by regulatory fee caps and reduced transaction volumes.
Revenue for the first quarter of 2026 was $37.2 million, a decrease of 48.8% compared to $72.6 million in the same period last year. The decline was driven by regulatory fee caps and transaction limits that reduced per-customer revenue, as well as a reduction in the number of ATMs deployed. Management noted that the decrease in gross profit was attributable to lower revenues driven by regulations, reduced transaction volumes, and reductions in the number of ATMs that have been deployed.
Management expects the revenue decline to continue as fee caps and transaction limits remain enforced and are replicated by other states. The company plans to increase sales, marketing, and technology spending over the next several years to support potential new products and services, which could pressure margins further. Additionally, the board approved filing a Form 15 to suspend SEC reporting obligations after this filing, citing cost burdens, which will reduce public information availability and could impact stock liquidity. The company also faces material weaknesses in internal controls over financial reporting, though management believes the financial statements are fairly presented.