Northland has upgraded Bitcoin Depot (BTM, Financial) from Market Perform to Outperform, raising its price target from $3.25 to $5. This decision follows a robust first-quarter report that highlights the success of Bitcoin Depot's kiosk strategy. The company currently operates 3,200 kiosks that have been installed within the last year and holds an additional 2,000 in inventory, poised for future expansion. Investors are encouraged by the growth potential and performance improvements noted by the analyst.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Bitcoin Depot Inc (BTM, Financial) is $4.25 with a high estimate of $5.50 and a low estimate of $3.25. The average target implies an upside of 104.33% from the current price of $2.08. More detailed estimate data can be found on the Bitcoin Depot Inc (BTM) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Bitcoin Depot Inc's (BTM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
BTM Key Business Developments
Release Date: May 15, 2025
- Revenue: $164.2 million, up 19% year-over-year.
- Net Income: $12.2 million, compared to a net loss of $4.2 million in the previous year.
- Adjusted Gross Margin: Increased 92% to $33.1 million; margin increased to 20.2% from 12.5%.
- Adjusted EBITDA: $20.3 million, up 315% from $4.9 million in the previous year.
- Cash and Cash Equivalents: $43.3 million as of March 31, 2025.
- Operating Expenses: Declined 7% to $15.3 million.
- Cash from Operating Activities: $16.3 million, up from $1.3 million in the previous year.
- Active Machines: Approximately 8,483 kiosks.
- Bitcoin Holdings: 94.4 BTC valued at approximately $7.8 million.
- Debt: $60 million, with a $6 million paydown during the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bitcoin Depot Inc (BTM, Financial) reported a 19% year-over-year revenue growth for Q1 2025, reaching $164.2 million.
- The company achieved a record net income of $12.2 million, a significant improvement from a net loss in the previous year.
- Adjusted EBITDA increased by 315% to $20.3 million, driven by revenue outperformance and margin expansion.
- The company successfully expanded its kiosk network, ending Q1 with approximately 8,483 active machines.
- Bitcoin Depot Inc (BTM) is pursuing international expansion, with over 100 kiosks deployed in Australia and plans to enter additional countries in 2025.
Negative Points
- The company faces regulatory challenges, particularly in New York State, where it is still seeking a license to operate.
- Revenue growth is expected to decelerate in Q2 2025, with projections in the low to mid-single digits.
- California remains a challenging market due to regulatory changes, leading to a significant reduction in kiosk numbers in the state.
- The company has not announced a definitive timeline for further kiosk installations, indicating potential delays in expansion.
- Bitcoin Depot Inc (BTM) faces a highly fragmented market, which may impact its ability to maintain market share.
