- Revenue increased by 51% in Q1 2025 for XTM Inc. compared to the previous year.
- Net comprehensive loss decreased by 40% from Q1 2024.
- XTM expands its sales team to accommodate growing market demand.
XTM Inc. (XTMIF/CSE: PAID/FSE: 7XT), a leading fintech enterprise known for its automated tip calculations and Earned Wage Access (EWA) platform, has reported significant growth in its Q1 2025 financial results. The company recorded a revenue of $2.7 million in the first quarter, marking a remarkable 51% increase from the prior year's revenue of $1.8 million.
Despite the rise in revenue, the company managed to reduce its net and comprehensive loss to $3.2 million, a 40% decrease from the $5.3 million reported in Q1 2024. This improvement aligns with XTM's strategic realignment and focus on profitability, supported by a CAD$13 million credit facility signed with Pateno Payments on January 1, 2025, to foster growth and maintain cash neutrality.
As part of its strategic initiatives, XTM announced the extension of its transaction agreement with Pateno Payments Inc., a subsidiary of Digital Commerce Group, to accommodate the final US banking operation approvals necessary for closing. This partnership is expected to enhance XTM's capacity to scale its SaaS business swiftly.
The company also reported a decrease in restricted cash by $14.2 million. This includes a migration of $2.5 million in XTM-funded EWA programs to client-funded programs at QRails, and $9.6 million of deposits were transferred to KOHO financial, which are anticipated to be returned by Q3 2025.
In subsequent events, XTM has expanded its sales team, resulting in the successful closure of two new deals within the first two weeks of the new representative's tenure. As of the latest reporting period, XTM has signed 149 new client locations for its AnyDay wage and gratuity access solution, reflecting strong market demand and accelerated adoption.
For more comprehensive financial details, the company's audited consolidated financial statements and MD&A for the year ended December 31, 2024, are accessible on their profile at sedarplus.ca.
