SINGAPORE, May 20, 2025 (GLOBE NEWSWIRE) -- Currenc Group Inc. (Nasdaq: CURR) ("Currenc" or the "Company"), a fintech pioneer empowering financial institutions worldwide with artificial intelligence (AI) solutions, today announced its financial results for the first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights
-- Total Processing Value (TPV) through Tranglo was US$1.30 billion for the
first quarter of 2025, decreasing by 3.7% year-over-year. Total number of
transactions decreased to 2.77 million for the first quarter of 2025 from
2.94 million for the same period of 2024. The decline in TPV was mainly
due to the decline in business volume from the Hong Kong market.
-- Total revenues excluding TNG Asia and GEA1 were US$10.0 million for the
first quarter of 2025, representing a year-over-year decrease of 11.5%,
primarily due to the 23.1% decline in global airtime revenue.
For the three-month period ended March
31,
-----------------------------------------
2025 2024
-------------------- -------------------
$ $
-------------------- -------------------
(dollars in thousands)
Remittance revenue
excluding TNG Asia &
GEA 4,583 5,025
Global Airtime
Revenue 2,022 2,573
Indonesian Airtime
Revenue 3,437 3,742
------------------- -------------------
Total Revenue
excluding TNG Asia &
GEA 10,042 11,340
-- Total remittance revenues excluding TNG Asia and GEA, i.e., remittance
revenues contributed by Tranglo, were US$4.6 million for the first
quarter of 2025, down 8% year-over-year. The decline in remittance
revenue was mainly due to a decrease in remittance revenue from the Hong
Kong market. Tranglo's overall take rate declined to 0.35% in the first
quarter of 2025 from 0.37% in the same period of 2024.
-- Currenc's global airtime transfer revenues were US$2.0 million for the
first quarter of 2025, representing a year-over-year decrease of 23.1%.
The growing availability of free Wi-Fi in Southeast Asian countries,
especially Malaysia and Indonesia, has led to declining demand for
Malaysia-Indonesia airtime transfers, resulting in a decline in global
airtime business in the first quarter of 2025. As Currenc expects this
trend to continue in Southeast Asian markets, the Company's management
plans to deemphasize airtime transfer and reallocate its resources and
capital to expand its new AI product offerings.
-- Total direct costs of revenue were US$6.9 million for the first quarter
of 2025, representing a year-over-year decrease of 20.7%.
-- The direct payout rate for Tranglo's remittance business was 0.13% for
the first quarter of 2025, flat compared to 0.12% for the same period of
2024. Currenc's overall gross profit margin ratio for the first quarter
of 2025 was 31.8%, compared to 33.6% for the same period of 2024.
-- Total operating expenses increased to $7.5 million for the first quarter
of 2025 from $5.8 million for the same period of 2024. The increase was
mainly due to expenses of $2.2 million in recognition of the incentive
shares granted to employees upon the completion of the INFINT SPAC
merger.As Currenc divested TNG Asia and GEA in August and July 2024,
respectively, its operating costs now reflect the operating costs of
Tranglo, WalletKu and the Company's headquarters only. Also, with the
rollout of its new AI initiatives, Currenc incurred $0.5 million in
operating costs related to these new businesses in the first quarter of
2025. The new AI businesses are expected to contribute incrementally to
revenues and positively impact EBITDA in 2025.
-- Tranglo's operating costs for the first quarter of 2025 were $3.2
million, representing an increase of 14% from $2.8 million in the
same period of 2024.
-- WalletKu's operating costs were $0.2 million for the first quarter
of 2025, as compared to $0.4 million for the same period of 2024.
-- Professional fees and director fees were $0.8 million and $0.6
million for the first quarter of 2025, respectively.
-- Other income totaled $1.0 million for the first quarter of 2025, mainly
contributed by Tranglo.
-- EBITDA analysis
For the
three-month TNG
period ended Asia Headquarters
March 31, and and Group
2025 Tranglo WalletKu GEA adjustments Total
------------- -------- -------- ---- ------------ ------
(dollars in thousands)
Net income
(loss) 1,160 (136) - (5,511) (4,487)
Add:
Income tax
expenses 141 - - (93) 48
Interest
expense,
net 21 - - 1,066 1,087
------- -------- ---- ------------ ------
EBIT 1,322 (136) - (4,538) (3,352)
Depreciation
and
amortization - - - - 554
EBITDA 1,322 (136) - (4,538) (2,798)
-- The Company's total EBITDA for the first quarter of 2025 was a loss of
$2.8 million.
-- Tranglo and WalletKu's combined EBITDA for the first quarter of 2025 was
$1.2 million.
-- TNG Asia and GEA's combined losses had no impact on the Company's results
from the fourth quarter of 2024 onwards as they were divested before the
completion of the de-SPAC merger.
-- Headquarters expenses and adjustments recorded an EBIT loss of $4.5
million, mainly contributed by:
-- $2.2 million in "Operating Expenses" in recognition of the
incentive shares granted upon completion of the de-SPAC merger.
-- $0.8 million for professional fees.
For the
three-month TNG
period ended Asia Headquarters
March 31, and and Group
2024 Tranglo WalletKu GEA adjustments Total
------------- -------- -------- ------ ------------ ------
(dollars in thousands)
Net income
(loss) 1,070 (123) (1,039) (2,540) (2,632)
Add:
Income tax
expenses 163 - - (92) 71
Interest
expense,
net - - 242 1,069 1,311
------- -------- ------ ------------ ------
EBIT 1,233 (123) (797) (1,563) (1,250)
Depreciation
and
amortization - - - - 1,016
EBITDA 1,233 (123) (797) (1,563) (234)
-- Net loss was US$4.5 million for the first quarter of 2025, primarily
driven by the net loss of $5.5 million incurred by headquarters and
adjustments.
Management Comments
"As demand for digital remittance continues to grow steadily, intensified market competition is compressing pricing," said Alex Kong, Founder and Executive Chairman of Currenc. "Against this backdrop, we strove to maintain Tranglo's healthy take rate while delivering TPV of US $1.30 billion in the first quarter of 2025, underscoring the strength of our core remittance platform and our disciplined strategic execution. Looking ahead, we are positioning Currenc for higher--margin growth through two key initiatives: scaling our AI product offerings and expanding our remittance services into major corridors. We believe this combination of broader reach and AI--driven innovation will support a more diversified revenue base and a structurally stronger bottom line."
Ronnie Hui, Chief Executive Officer of Currenc, commented, "While softer airtime demand weighed on our total revenues, our remittance business remained resilient amid a competitive environment in the first quarter of 2025, supporting a combined EBITDA for Tranglo and WalletKu of US $1.2 million. We are reallocating capital toward accelerating our AI initiatives and building higher--margin remittance corridors to boost product value and operational scale, priming the Company for quality growth throughout the year. We also enhanced cost management and maintained Tranglo's payout rate at 0.13%. Operating expenses rose to US $7.5 million, primarily due to a one--time US $2.2 million share--based incentive linked to the de--SPAC merger, as well as costs related to our new AI initiatives. Outside of these expenses, our headquarters' operating costs remained broadly stable. Going forward, this strengthened bottom line will allow us to invest in AI-driven growth while maintaining financial discipline."
Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements, which are prepared and presented in accordance with GAAP, it uses EBITDA, a non-GAAP financial measure as described below, to understand and evaluate its core operating performance. This non-GAAP financial measure, which may differ from similarly titled measures used by other companies, is presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
EBITDA is defined as net loss before interest, taxes, depreciation, and amortization. Currenc believes that EBITDA provides useful information to investors and others in understanding and evaluating its operating results. This non-GAAP financial measure eliminates the impact of items that Currenc does not consider indicative of the performance of its business. While Currenc believes that this non-GAAP financial measure is useful in evaluating its business, this information should be considered supplemental in nature and is not meant as a substitute for the related financial information prepared in accordance with GAAP.
About Currenc Group Inc.
Currenc Group Inc. (Nasdaq: CURR) is a fintech pioneer dedicated to transforming global financial services through artificial intelligence (AI). The Company empowers financial institutions worldwide with comprehensive AI solutions, including SEAMLESS AI Call Centre and other AI-powered Agents designed to reduce costs, increase efficiency and boost customer satisfaction for banks, insurance, telecommunications companies, government agencies and other financial institutions. The Company's digital remittance platform also enables e-wallets, remittance companies, and corporations to provide real-time, 24/7 global payment services, advancing financial access across underserved communities.
For additional information, please refer to the Currenc website https://www.currencgroup.com and the annual report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Further information regarding these and other risks, uncertainties, or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
Investor & Media Contact
Currenc Group Investor Relations
Email: investors@currencgroup.com
SOURCE: Currenc Group Inc.
CURRENC GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
Three months ended March 31,
--------------------------------
2025 2024
---------------- -------------
US$ US$
Revenue 10,055,569 13,104,123
Cost of revenue (6,854,172) (8,696,562)
------------ ------------
Gross profit 3,201,397 4,407,561
Selling expenses - (3,987)
General and administrative
expenses (7,522,252) (5,824,208)
------------ ------------
Loss from operations (4,320,855) (1,420,634)
Finance costs, net (1,087,313) (1,311,363)
Other income 969,691 189,735
Other expenses (402) (19,137)
------------ ------------
Loss before income tax (4,438,879) (2,561,399)
Income tax expense (48,479) (70,529)
------------ ------------
Net loss (4,487,358) (2,631,928)
Net income attributable to
non-controlling interests (187,000) (403,056)
------------ ------------
Net loss attributable to Currenc
Group Inc. (4,674,358) (3,034,984)
============ ============
Net loss per share, basic and
diluted (1) $ (0.13) $ (0.09)
============ ============
Shares used in net loss per share
computation, basic and diluted
(1) 35,374,891 33,980,753
============ ============
Other comprehensive loss:
Foreign currency translation
adjustments 171,532 368,135
------------ ------------
Total comprehensive loss (4,315,826) (2,263,793)
Total comprehensive loss (income)
attributable to non-controlling
interests (228,069) (407,798)
------------ ------------
Total comprehensive loss
attributable to Currenc Group
Inc. (4,543,895) (2,671,591)
============ ============
(1) Retrospectively restated to reflect Reverse Recapitalization
CURRENC GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, December 31,
2025 2024
------------- ------------
US$ US$
ASSETS
Current assets:
Cash and cash equivalents 62,300,298 63,821,397
Restricted cash 40,978 40,742
Accounts receivable, net 2,103,924 2,115,681
Other financial assets 3,171,000 -
Amounts due from related parties 449,094 560,823
Prepayments, receivables and
other assets 25,874,112 20,948,216
------------ ------------
Total current assets 93,939,406 87,486,859
Non-current assets:
Equipment and software, net 1,118,661 1,055,520
Right-of-use asset 294,965 349,240
Intangible assets 3,000,978 3,386,117
Goodwill 12,059,428 12,059,428
Deferred tax assets 344,291 342,822
------------ ------------
Total non-current assets: 16,818,323 17,193,127
Total assets 110,757,729 104,679,986
============ ============
LIABILITIES AND SHAREHOLDERS'
DEFICIT
Current liabilities:
Borrowings 20,128,362 20,150,058
Receivable factoring 480,225 258,415
Other financial liabilities 3,329,550 -
Accounts payable, accruals and
other payables 51,411,453 55,329,740
Amounts due to related parties 76,472,666 67,697,074
Convertible bonds 1,750,000 1,750,000
Lease liabilities 177,505 171,909
------------ ------------
Total current liabilities: 153,749,761 145,357,196
Non-current liabilities:
Deferred tax liabilities 784,479 876,912
Employee benefit obligation 39,259 45,289
Lease liabilities 111,833 156,647
------------ ------------
Total non-current liabilities: 935,571 1,078,848
------------ ------------
Total liabilities 154,685,332 146,436,044
------------ ------------
Commitments and contingencies
(Note 10)
Shareholders' deficit:
Ordinary shares (US$0.0001 par
value; 550,000,000 shares
authorized 46,527,999 and
46,527,999 shares issued and
outstanding as of March 31, 2025
and December 31, 2024,
respectively) (1) 4,653 4,653
Additional paid-in capital (1) 67,797,587 65,638,838
Accumulated deficit (136,197,260) (131,522,902)
Accumulated other Comprehensive
Loss 7,873 (108,122)
------------ ------------
Total shareholders' deficit
attributable to Currenc Group Inc. (68,387,147) (65,987,533)
Non-controlling interests 24,459,544 24,231,475
------------ ------------
Total deficit (43,927,603) (41,756,058)
------------ ------------
Total liabilities and shareholders'
deficit 110,757,729 104,679,986
============ ============
(1) Retrospectively restated to reflect Reverse Recapitalization
CURRENC GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three months ended March 31,
-------------------------------
2025 2024
--------------- -------------
US$ US$
Cash flows from operating
activities:
Net loss (4,487,358) (2,631,928)
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Non-cash expense for
Share-based compensation 2,158,749 -
Depreciation of equipment and
software 123,799 142,518
Depreciation of right-of-use
assets 53,712 41,981
Amortization of intangible
assets 385,139 831,392
Deferred income taxes (92,426) 54,704
Disposal of fixed assets 401 -
Unrealized foreign exchange
gain 328,269 (124,690)
Changes in operating assets and
liabilities:
Accounts receivable 33,923 (110,270)
Prepayments, receivables and
other assets (4,918,772) 9,477,057
Escrow money payable - 218,542
Client money payable - 146,847
Accounts payable, accruals and
other payables (4,068,655) (7,014,740)
Interest payable on
convertible bonds - 952,736
Amount due from a director 729,198 -
Amount due to Immediate
holding company 23,766 -
Amounts due from related
parties (3,652) -
Amounts due to related parties 8,245,995 (2,205,121)
-------------- -------------
Net cash used in operating
activities (1,487,912) (220,972)
-------------- -------------
Cash flows from investing
activities:
Decrease in short-term
investments - 615
Purchases of property, plant
and equipment (175,158) (12,058)
Proceeds received from
disposal of PPE 596 -
-------------- -------------
Net cash used in investing
activities (174,562) (11,443)
-------------- -------------
Cash flows from financing
activities:
Proceeds from borrowings - 639,210
Repayment of borrowings - (95,742)
Proceeds from receivable
factoring 433,287 586,789
Repayment of receivable
factoring (218,974) (610,559)
Payment of principal elements
of lease liabilities (65,286) (46,295)
Payment of interest elements
of lease liabilities (7,416) (2,952)
-------------- -------------
Net cash generated from/(used in)
financing activities 141,611 470,451
-------------- -------------
Net decrease in cash and cash
equivalents (1,520,863) 238,036
Cash and cash equivalents,
restricted cash and escrow money
receivable at beginning of the
period 63,862,139 58,960,384
-------------- -------------
Cash and cash equivalents,
restricted cash and escrow money
receivable at end of the period 62,341,276 59,198,420
============== =============
Supplemental disclosure of cash
flow information:
Income taxes paid (140,905) (15,825)
Interest paid (48,773) (346,270)
CURRENC GROUP INC. AND SUBSIDIARIES
EBITDA Analysis for the First Quarter of 2025 and
2024
For the
three-month TNG
period ended Asia Headquarters
March 31, and and Group
2025 Tranglo WalletKu GEA adjustments Total
------------- -------- -------- ---- ------------ ------
(dollars in thousands)
Net income
(loss) 1,160 (136) - (5,511) (4,487)
Add:
Income tax
expenses 141 - - (93) 48
Interest
expense,
net 21 - - 1,066 1,087
------- -------- ---- ------------ ------
EBIT 1,322 (136) - (4,538) (3,352)
Depreciation
and
amortization - - - - 554
EBITDA 1,322 (136) - (4,538) (2,798)
For the
three-month TNG
period ended Asia Headquarters
March 31, and and Group
2024 Tranglo WalletKu GEA adjustments Total
------------- -------- -------- ------ ------------ ------
(dollars in thousands)
Net income
(loss) 1,070 (123) (1,039) (2,540) (2,632)
Add:
Income tax
expenses 163 - - (92) 71
Interest
expense,
net - - 242 1,069 1,311
------- -------- ------ ------------ ------
EBIT 1,233 (123) (797) (1,563) (1,250)
Depreciation
and
amortization - - - - 1,016
EBITDA 1,233 (123) (797) (1,563) (234)
(1 TNG Asia and GEA were divested in August 2024 and July 2024, respectively.)
(2 Tranglo maintained a positive EBITDA for the first quarter of 2025 and 2024.)
(3 Tranglo and WalletKu maintained a combined positive EBITDA for the first quarter of 2025 and 2024.)
____________________________________
1 Currenc divested TNG Asia and GEA in August 2024 and July 2024, respectively. As such, from the fourth quarter of 2024 onward, only Tranglo's (digital remittance and global airtime transfer businesses) and WalletKu's (Indonesian airtime business) results will be consolidated and reported in the Company's financial statements.
(END) Dow Jones Newswires
May 20, 2025 16:01 ET (20:01 GMT)
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