International Money Express Inc.
05/11/2026 | Press release | Distributed by Public on 05/11/2026 07:31
Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related Notes included in this Quarterly Report on Form 10-Q, as well as our Audited Consolidated Financial Statements and related Notes and MD&A included in our Annual Report on Form 10-K for the year ended December 31, 2025. This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry, business and future financial results. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed in other sections of this Quarterly Report on Form 10-Q, including "Risk Factors," which are incorporated in the MD&A by reference. See "Special Note Regarding Forward-Looking Statements" for additional factors relating to such statements, and see "Risk Factors" in the documents that we have filed with or furnished to the SEC for a discussion of certain risk factors applicable to our business, financial condition and results of operations. Past operating results are not necessarily indicative of operating results in any future periods.
Overview
We are a leading global omnichannel money remittance services company focused primarily on the United States of America ("United States" or "U.S.") to Latin America and the Caribbean ("LAC") corridor, which includes Mexico, Central and South America and the Caribbean. We also provide remittance services to Africa and Asia from the United States and offer money transfer services from Canada to Latin America and Africa. We also provide remittance services from Spain, Italy and Germany to Africa, Asia and Latin America. We utilize our proprietary technology to deliver convenient, reliable and value-added services to consumers through a broad network of sending and paying agents. Our remittance services, which include a comprehensive suite of ancillary financial processing solutions and payment services, are available in all 50 states in the U.S., Washington D.C., Puerto Rico and 13 provinces in Canada, as well as in certain locations in Spain, Italy and Germany, where consumers can send money to beneficiaries in more than 60 countries in LAC, Europe, Africa and Asia. Our services are accessible in person through over 100,000 independent sending and paying agents and 114 Company-operated stores, as well as digitally through the Internet via our websites, co-branded websites with digital partners and mobile device applications. Additionally, our product and service portfolio include online payment options, pre-paid debit cards and direct deposit payroll cards, which may present different cost, demand, regulatory and risk profiles relative to our core money remittance business.
Money remittance services to LAC countries, mainly Mexico, Guatemala, El Salvador, Honduras and the Dominican Republic, are the primary source of our revenue. These services involve the movement of funds on behalf of an originating consumer for receipt by a designated beneficiary at a designated receiving location. Our remittances to LAC countries are primarily generated in the United States by consumers with roots in Latin American and Caribbean countries, many of whom do not have an existing relationship with a traditional full-service financial institution capable of providing the services we offer. We provide these consumers with flexibility and convenience to help them meet their financial needs. We believe many consumers who use our services may have access to traditional banking services, but prefer to use our services based on reliability, convenience and value. We generate money remittance revenue from fees paid by consumers (i.e., the senders of funds), which we share with our sending agents and digital partners in the originating country and our paying agents in the destination country. Remittances paid in local currencies that are not pegged to the U.S. dollar, Canadian dollar or Euro can also generate revenue if we are successful in our daily management of currency exchange spreads. We also generate revenue from our "Remittance-as-a-Service" ("RaaS") relationships with digital partners where we receive a fee for facilitating money transfers processed through our proprietary software systems, money transmitter licenses and payer network relationships.
Our money remittance services enable consumers to send funds through our broad network of locations in the United States, Canada, Spain, Italy and Germany that are primarily operated by third-party businesses, as well as by Company-operated stores located in those jurisdictions. Transactions are processed and payment is collected by our agents ("sending agent(s)") and those funds become available for pickup by the beneficiary at the designated destination, usually within minutes, at any Intermex payer location ("paying agent(s)"). We refer to our sending agents and our paying agents collectively as agents. In addition, our services are offered digitally through the Internet via our websites (intermexonline.com and online.i-transfer.es), co-branded websites with our digital partners and mobile device applications. For the three months ended March 31, 2026, our agent network decreased slightly by approximately 0.6%. For the three months ended March 31, 2026, principal amount sent decreased by approximately 11.4% to $4.9 billion, as compared to the same period in 2025, and total remittances processed were approximately 11.2 million, representing a decrease of approximately 12.0%, as compared to the same period in 2025 primarily related to decreased volume generated that we attribute to a contraction in the retail remittance market, particularly the LAC corridor. This overall decrease was partially offset by increased volume generated by our digital channels and European subsidiaries.
Current political, social, economic and market conditions in the United States, including recent economic, trade and immigration enforcement actions taken by the current administration in the U.S., as well as in foreign countries, including those that are destinations for money transfers or in which we currently operate, remain volatile. There is uncertainty as to the economic and financial impact of such conditions.
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Pending Merger with The Western Union Company
On August 10, 2025, the Company entered into the Merger Agreement by and among the Company, Western Union and Merger Sub, pursuant to which, on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into the Company and the Company will become an indirect wholly-owned subsidiary of Western Union. The Merger Agreement provides that each share of the Company's common stock issued and outstanding immediately prior to the effective time of the Merger (subject to limited exceptions) will be cancelled and converted into the right to receive $16.00 per share in cash, without interest.
Consummation of the Merger is subject to the satisfaction or waiver of certain remaining customary closing conditions, including: (i) the absence of any judgment by any governmental authority of competent jurisdiction or any applicable law that enjoins, restrains or otherwise makes illegal, prevents or prohibits consummation of the Merger ("Restraint"), (ii) the receipt of applicable consents, approvals or other clearances required to be obtained under the Merger Agreement, including with respect to the Company's or its subsidiaries' money transmitter licenses, and (iii) other customary closing conditions.
In addition, the consummation of the Merger was conditioned upon (i) the expiration or termination of the applicable waiting period under the HSR Act, which waiting period under expired on October 6, 2025, and (ii) approval of the stockholders of the Company, which approval was received at a special meeting of stockholders of the Company on December 9, 2025.
To date, money transmission regulators in 51 applicable U.S. states and territories have provided their approval of or non-objection to the Merger, and approval or non-objection is currently pending from one U.S. state. Additionally, the parties have received approval from all international money transmission regulators. The Company cannot predict with certainty whether and when any of the remaining required closing conditions will be satisfied or if the Merger will close, but is working towards a consummation of the Merger in the second quarter of 2026.
The Merger Agreement contains termination rights for the Company and Western Union, including a right for either party to terminate if the Merger is not consummated by May 11, 2026 (subject to certain automatic extensions to obtain certain regulatory approvals as set forth in the Merger Agreement). Upon termination of the Merger Agreement, (i) Western Union, upon termination of the Merger Agreement by the Company or Western Union due to a Restraint relating to any antitrust laws, or the failure to obtain necessary consents, approvals or clearances related to antitrust laws, would be required to pay the Company a termination fee equal to $27.3 million, and (ii) the Company, under specified circumstances, including termination of the Merger Agreement by Western Union as a result of an Adverse Recommendation Change (as defined in the Merger Agreement), would be required to pay Western Union a termination fee equal to $19.8 million.
Restructuring costs
During the three months ended March 31, 2026, the Company paid out $0.2 million of a liability balance related to restructuring costs that remained as of December 31, 2025. As a result, the Company has a liability of $45.0 thousand recorded in accrued and other liabilities in the consolidated balance sheet as of March 31, 2026.
As a result of implementing certain restructuring plans in 2025, the Company expects to reduce compensation expense and certain facilities related charges in an amount of approximately $2.5 million a year. The anticipated effect of this reduction in expenses will be primarily realized beginning in the second quarter of 2026. In addition, the Company does not expect that the execution of this strategy will result in any material reduction of revenues or increase of its ongoing operating expenses.
Key Factors and Trends Affecting our Business
Various trends and other factors have affected and may continue to affect our business, financial condition and operating results, including, but not limited to:
•Factors relating to the contemplated pending acquisition of the Company by Western Union, including: (i) the completion of the pending transaction on anticipated terms and timing or at all, including obtaining stockholder and regulatory approvals and other conditions to the completion of the transaction; (ii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, which may require us to pay a termination fee or other expenses; (iii) potential significant transaction costs associated with the pending transaction (including litigation expenses and liabilities, if any), and the possibility that the pending transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (iv) continued availability of capital and other changes in capital markets; (v) potential litigation or regulatory actions relating to the pending transaction, which could delay or prevent consummation of the transaction; (vi) the risk that disruptions from the pending transaction, such as diverting management's attention from our ongoing business operations and relationships, may harm our business, including current plans and operations; (vii) the effect of the announcement, pendency or completion of the pending transaction on our ability to retain and
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hire key personnel; (viii) our ability to maintain relationships with customers, suppliers, governments, regulators and others with whom we do business, or our operating results or business generally; and (ix) potential adverse business uncertainty resulting from restrictions imposed by the Merger Agreement during the pendency of the pending transaction that may impact our ability to pursue certain business opportunities or strategic transactions;
•changes in immigration laws and their enforcement, including any adverse effects on the level of immigrant employment, earning potential, and other commercial activities;
•our success in expanding customer acceptance of our digital services and infrastructure, as well as developing, introducing and marketing new digital and other products and services;
•new technology or competitors that disrupt the current money transfer and payment ecosystem, including the introduction of new digital platforms;
•changes in tax laws in the United States and other countries in which we operate, including the imposition of taxes on certain types of remittances that began in 2026;
•loss of, or reduction in business with, key sending agents;
•our ability to effectively compete in the markets in which we operate;
•economic factors such as inflation, the level of economic activity, recession risks and labor market conditions, as well as volatility in market interest rates;
•political conditions in the United States and other markets in which we operate or plan to operate as well as the impact and duration of the recent partial federal government shutdown;
•international political factors, including ongoing conflicts in Ukraine and the Middle East and other geopolitical developments, political instability, tariffs, including the effects of tariffs on domestic markets and industrial activity and employment, border taxes or restrictions on remittances or transfers from the outbound countries in which we operate or plan to operate;
•volatility in foreign exchange rates that could affect the volume of consumer remittance activity and/or affect our foreign exchange related gains and losses;
•consumer confidence in our brands and in consumer money transfers generally;
•expansion into new geographic markets or product markets;
•cybersecurity-attacks or disruptions to our information technology, computer network systems, data centers and mobile device applications;
•our ability to successfully execute, manage, integrate and obtain the anticipated financial benefits of key acquisitions and mergers;
•the ability of our risk management and compliance policies, procedures and systems to mitigate risk related to transaction monitoring;
•consumer fraud and other risks relating to the authenticity of customers' orders or the improper or illegal use of our services by consumers, sending agents or digital partners;
•our ability to maintain favorable banking and paying agent relationships necessary to conduct our business;
•bank failures, sustained financial illiquidity, or illiquidity at the clearing, cash management or custodial financial institutions with which we do business;
•changes to banking industry regulation and practice;
•credit risks from our agents, digital partners and the financial institutions with which we do business;
•our ability to recruit and retain key personnel;
•our ability to maintain compliance with applicable laws and regulatory requirements including those intended to prevent use of our money remittance services for criminal activity, those related to data and cybersecurity protection, and those related to new business initiatives;
•enforcement actions and private litigation under regulations applicable to the money remittance services;
•our ability to protect our brands and intellectual property rights;
•our ability to satisfy our debt obligations and remain in compliance with our credit facility requirements;
•public health conditions, responses thereto and the economic and market effects thereof;
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•the use of third-party vendors and service providers; and
•weakness in U.S. or international economic conditions.
We have encountered and continue to expect to encounter increasing competition as new electronic platforms emerge that enable consumers to send and receive money through a variety of channels. Regardless, we continue to innovate in the industry by differentiating our money remittance business through programs to foster loyalty among agents as well as consumers and have expanded our channels through which our services are accessed to include online and mobile offerings which are experiencing higher consumer adoption. During 2026, we expect to continue investing in increasing our penetration of the digital market, to add digital customers, to enhance our digital offerings and to increase digital revenues, while maintaining and continuing to develop our retail service offerings. Although we believe that investment in our digital business should provide significant financial benefits in the mid to long term timeframes, these investments are likely, in the shorter term, to adversely affect our results of operation.
The market for money remittance services is very competitive. Our competitors include a small number of large money remittance providers, financial institutions, banks and a large number of small niche money remittance service providers that serve select regions. We compete with larger companies, such as Western Union, MoneyGram, Remitly and Euronet, and a number of other smaller money services business ("MSB") entities. We generally compete for money remittance agents on the basis of value, service, quality, technical and operational differences, commission structure and marketing efforts. As a philosophy, we sell credible solutions to our sending agents, not discounts or higher commissions, as is typical for the industry. We compete for money remittance customers on the basis of trust, convenience, service, efficiency of outlets, value, enhanced technology and brand recognition.
As noted above, current political, social, economic and market conditions in the United States, including recent economic, trade and immigration enforcement actions taken by the current administration in the U.S., as well as in foreign countries, including those that are destinations for money transfers or in which we currently operate remain volatile. There is uncertainty as to the economic and financial impact of such conditions. Our business has generally been resilient during times of economic instability as money remittances are essential to many recipients, with the funds used by the receiving parties for their daily needs; however, continued enhanced immigration enforcement activities in the U.S., prolonged volatility in the market, continued global economic and geopolitical uncertainty, and long-term sustained appreciation of the Mexican peso or Guatemalan quetzal as compared to the U.S. dollar could negatively affect our revenues and profitability. Moreover, as noted above, we have experienced a reduction in revenues generated that we attribute to a contraction in the remittance market, which may reflect this increased volatility and current economic conditions.
Trends in the cross-border money remittance business tend to correlate to immigration trends, global economic opportunity and related employment levels in certain industries such as construction, information technology, manufacturing, agriculture and hospitality, as well as other service industries. The three largest remittance corridors we serve are United States to Mexico, United States to Guatemala and Unites States to the Dominican Republic. According to the latest information available from the World Bank Remittance Matrix, the United States to Mexico remittance corridor was one of the largest in the world in 2025. In addition, changes to U.S. immigration, tariffs, trade, economic, tax and other policies may have both positive and negative effects on our business, none of which can be predicted with any degree of certainty.
Money remittance businesses have continued to be subject to strict legal and regulatory requirements, and we continue to focus on and regularly review our compliance programs. In connection with these reviews, and in light of regulatory complexity and heightened attention of governmental and regulatory authorities related to cybersecurity and compliance activities, we have made, and continue to make, enhancements to our processes and systems designed to detect and prevent cyber-attacks, consumer fraud, money laundering, terrorist financing, human trafficking and other illicit activities, along with enhancements to improve consumer protection in accordance with regulatory requirements, including the Dodd-Frank Act and similar regulations outside the United States. In coming periods, we expect these and future regulatory requirements will continue to result in changes to certain of our business and administrative practices and may result in increased costs.
We maintain compliance departments in the United States as well as in certain of our foreign subsidiaries, the responsibility of which is to monitor transactions, detect and report suspicious activity, maintain appropriate records and train our employees and agents. Independent third-parties periodically review our policies and procedures and perform independent testing to assess the effectiveness of our anti-money laundering and Bank Secrecy Act compliance programs. We also maintain a regulatory affairs and licensing department, under the direction of our Chief Compliance Officer.
How We Assess the Performance of Our Business
In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators of the financial condition and operating performance of our business are revenues, service charges from agents and banks, salaries and benefits, other selling, general and administrative expenses and net income. To help us assess our performance with these key indicators, we primarily use Adjusted Net Income, Adjusted Earnings per Share and Adjusted EBITDA as non-GAAP financial measures. We believe these non-GAAP measures provide useful information to investors and expanded insight to measure our revenue and cost performance as a
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supplement to our U.S. GAAP condensed consolidated financial statements. See the "Adjusted Net Income and Adjusted Earnings per Share" and "Adjusted EBITDA" sections below for reconciliations of these non-GAAP financial measures to net income and earnings per share, our closest GAAP measures.
Revenues
Transaction volume is the primary generator of revenue in our business. Revenue on transactions is derived primarily from transaction fees paid by consumers to transfer money. Revenues per transaction vary based upon send and receive locations and the amount sent. In certain transactions involving different send and receive currencies, we generate foreign exchange gains based on the difference between the set exchange rate charged by us to the sender and the rate available to us in the wholesale foreign exchange market. Also, we generate revenues from technology services provided to the independent network of agents and other service partners that utilize the Company's technology in processing transactions paid by credit or debit card, check cashing services and maintenance fees, for which revenue is derived by a fee per transaction. In addition, we generate revenue from our RaaS contracts with digital partners under which we receive fees for facilitating money transfers processed through our proprietary software systems, as well as using our money transmitter licenses and payer network relationships.
Operating Expenses
Service Charges from Agents and Banks
Service charges primarily consist of sending and paying agent commissions and bank fees. Service charges vary based on agent commission percentages and the amount of fees charged by the banks. Sending agents earn a commission on each transaction they process of approximately 50% of the transaction fee. Service charges also include transaction processing costs incurred in facilitating money transfers processed through our digital channels. Service charges may increase if banks or payer organizations increase their fee structure or sending agents use higher fee methods to remit funds to us. Service charges also vary based on the method the consumer selects to send the transfer and the payer organization that facilitates the transaction.
Salaries and Benefits
Salaries and benefits include cash and share-based compensation associated with our corporate employees and sales team as well as employees at our Company-operated stores. Corporate employees include management, customer service, compliance, information technology, operations, finance, legal and human resources. Our sales team, located throughout the United States, Canada, Spain and Italy, is focused on supporting and growing our sending agent network. Share-based compensation is primarily recognized as an expense on a straight-line basis over the requisite service period. Unrecognized compensation expense related to restricted stock units ("RSUs"), restricted stock awards ("RSAs") and performance stock units ("PSUs") of approximately $22.2 million is expected to be recognized over a weighted-average period of 1.9 years.
Other Selling, General and Administrative
General and administrative expenses primarily consist of fixed overhead expenses associated with our operations, including our Company-operated stores, such as information technology, telecommunications, rent, insurance, professional services, non-income or indirect taxes, facilities maintenance, selling expenses, public company reporting requirements, regulatory compliance requirements and other similar types of operating expenses. Selling expenses include expenses such as advertising and promotion, digital marketing, shipping, supplies and other expenses associated with serving and increasing our customer base, digital channel offerings and network of agents.
Provision for Credit Losses
Provision for credit losses represent the charges to adjust the allowance for estimated losses resulting from the inability of sending agents or digital partners to make the required payments.
Restructuring Costs
We incurred costs associated with restructuring plans related to our domestic and foreign operations. These costs included all internal and external costs directly related with the restructuring and consist primarily of severance payments, write-off of assets and certain legal and professional fees.
Transaction Costs
We incurred transaction costs associated with completed and potential acquisitions. These costs included all internal and external costs directly related to the transactions, consisting primarily of legal, consulting, accounting and advisory fees and certain incentive
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bonuses. Due to their significance, they are presented separately in our condensed consolidated statements of income and comprehensive income. Transaction costs also include internal and external costs related to the Board's evaluation of strategic alternatives and the pending Merger with Western Union.
Depreciation and Amortization
Depreciation and amortization largely consists of depreciation of computer equipment and amortization of software that supports our technology platform. In addition, it includes amortization of intangible assets primarily related to our agent relationships, trade names and developed technology.
Non-Operating Expenses
Interest Expense
Interest expense consists primarily of interest associated with our debt, which consists of a revolving credit facility. The effective interest rate for the three months ended March 31, 2026 for the revolving credit facility was 2.10%.
Income tax provision
Our income tax provision includes the expected benefit of all deferred tax assets, including our net operating loss carryforwards. After consideration of all evidence, both positive and negative, management has determined that no valuation allowance is required at March 31, 2026 on the Company's U.S. federal or state deferred tax assets; however, a valuation allowance has been recorded as of March 31, 2026 on deferred tax assets associated with foreign net operating loss carryforwards. Our income tax provision reflects the effects of state taxes, non-deductible expenses, share-based compensation expense, and foreign tax rates applicable to the Company's foreign subsidiaries that are higher or lower than the U.S. statutory rate.
Net Income
Net income is determined by subtracting operating and non-operating expenses from revenues.
Earnings per Share
Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding for each period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares and common share equivalents outstanding for each period. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of RSUs, RSAs and PSUs have vested, using the treasury stock method. Shares of treasury stock are not considered outstanding and therefore are excluded from the weighted-average number of common shares outstanding calculation.
Segments
Our business is organized around one reportable segment that provides money transmittal services primarily between the United States, Canada and certain countries in Europe to Mexico, Guatemala and other countries in Latin America, Africa, Asia and Europe through a network of authorized agents located in various unaffiliated retail establishments and 114 Company-operated stores throughout the United States, Canada, Spain, Italy and Germany, as well as digitally through the Internet via our websites, co-branded websites with digital partners and mobile device applications. This is based on the objectives of the business and how our chief operating decision maker, the CEO and President, monitors operating performance and allocates resources.
Results of Operations
The following table summarizes the key components of our results of operations for the periods indicated:
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| Three Months Ended March 31, | ||||||||||||||
| (in thousands, except for share data) | 2026 | 2025 | ||||||||||||
| Revenues: | ||||||||||||||
| Wire transfer and money order fees, net | $ | 99,752 | $ | 120,167 | ||||||||||
| Foreign exchange gain, net | 16,320 | 20,181 | ||||||||||||
| Other income | 5,880 | 3,962 | ||||||||||||
| Total revenues | 121,952 | 144,310 | ||||||||||||
| Operating expenses: | ||||||||||||||
| Service charges from agents and banks | 79,091 | 93,788 | ||||||||||||
| Salaries and benefits | 18,890 | 18,288 | ||||||||||||
| Other selling, general and administrative expenses | 11,555 | 10,989 | ||||||||||||
|
Provision for credit losses
|
2,891 | 2,066 | ||||||||||||
| Restructuring costs | - | 306 | ||||||||||||
| Transaction costs | 1,166 | 1,169 | ||||||||||||
| Depreciation and amortization | 4,685 | 3,629 | ||||||||||||
| Total operating expenses | 118,278 | 130,235 | ||||||||||||
| Operating income | 3,674 | 14,075 | ||||||||||||
| Interest expense | 2,208 | 2,700 | ||||||||||||
| Income before income taxes | 1,466 | 11,375 | ||||||||||||
| Income tax provision | 955 | 3,606 | ||||||||||||
| Net income | $ | 511 | $ | 7,769 | ||||||||||
| Earnings per common share: | ||||||||||||||
| Basic | $ | 0.02 | $ | 0.25 | ||||||||||
| Diluted | $ | 0.02 | $ | 0.25 | ||||||||||
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Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Revenues
Revenues for the above periods are presented below:
| ($ in thousands) | Three Months Ended March 31, 2026 |
% of Revenues |
Three Months Ended March 31, 2025 |
% of Revenues |
|||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Wire transfer and money order fees, net | $ | 99,752 | 82 | % | $ | 120,167 | 83 | % | |||||||||||||||
| Foreign exchange gain, net | 16,320 | 13 | % | 20,181 | 14 | % | |||||||||||||||||
| Other income | 5,880 | 5 | % | 3,962 | 3 | % | |||||||||||||||||
| Total revenues | $ | 121,952 | 100 | % | $ | 144,310 | 100 | % | |||||||||||||||
Wire transfer and money order fees, net of $99.8 million for the three months ended March 31, 2026 decreased by $20.4 million, or 17.0%, from $120.2 million for the three months ended March 31, 2025. The decrease was primarily due to a decrease in transaction volume processed through our retail network of sending agents and Company-operated stores in the three months ended March 31, 2026 compared to the three months ended March 31, 2025, which we primarily attribute to a contraction in the retail remittance market, particularly the LAC corridor. As noted in the overview section above, for the three months ended March 31, 2026, principal amount sent decreased by approximately 11.4% to $4.9 billion whereas the number of transactions decreased by approximately 12.0% to 11.2 million, as compared to the same period in 2025. Therefore, the lower number of wire transfers sent resulted in lower fees paid by consumers.
Revenues from foreign exchange gain, net of $16.3 million for the three months ended March 31, 2026 decreased by $3.9 million, or 19.3%, from $20.2 million for the three months ended March 31, 2025. This decrease was primarily due to the decrease in transaction volume described above, partially offset by an increase in the average principal sent per transaction.
Other income of $5.9 million for the three months ended March 31, 2026 increased by $1.9 million, or 47.5%, from $4.0 million for the three months ended March 31, 2025 primarily due to higher fees related to increased activity of our RaaS relationships, under which the number of transactions processed and total principal sent increased by approximately 156% and 127%, respectively.
Operating Expenses
Operating expenses for the above periods are presented below:
| ($ in thousands) | Three Months Ended March 31, 2026 |
% of Revenues |
Three Months Ended March 31, 2025 |
% of Revenues |
|||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Service charges from agents and banks | $ | 79,091 | 65 | % | $ | 93,788 | 65 | % | |||||||||||||||
| Salaries and benefits | 18,890 | 16 | % | 18,288 | 13 | % | |||||||||||||||||
| Other selling, general and administrative expenses | 11,555 | 10 | % | 10,989 | 8 | % | |||||||||||||||||
| Provision for credit losses | 2,891 | 2 | % | 2,066 | 1 | % | |||||||||||||||||
| Restructuring costs | - | - | % | 306 | NM | ||||||||||||||||||
| Transaction costs | 1,166 | 1 | % | 1,169 | 1 | % | |||||||||||||||||
| Depreciation and amortization | 4,685 | 4 | % | 3,629 | 3 | % | |||||||||||||||||
| Total operating expenses | $ | 118,278 | 97 | % | $ | 130,235 | 90 | % | |||||||||||||||
NM - Amounts round to less than 1%.
Service charges from agents and banks - Service charges from agents and banks were $79.1 million for the three months ended March 31, 2026 compared to $93.8 million for the three months ended March 31, 2025. The decrease of $14.7 million, or 15.7%, was primarily due to the decrease in transaction volume described above, as well as lower payer fees as a result of better pricing negotiated with our paying agents.
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Salaries and benefits - Salaries and benefits of $18.9 million for the three months ended March 31, 2026 increased by $0.6 million, or 3.3%, from $18.3 million for the three months ended March 31, 2025. The increase is primarily due to the Company's investment in talent acquisition and improved compensation for our sales force and higher share-based compensation as a result of timing of annual grants of stock awards to certain employees.
Other selling, general and administrative expenses - Other selling, general and administrative expenses of $11.6 million for the three months ended March 31, 2026 increased by $0.6 million, or 5.5%, from $11.0 million for the three months ended March 31, 2025. The increase was primarily the result of $0.8 million - higher IT related expenses incurred to sustain our business expansion and to improve our technology environment.
Provision for credit losses - Provision for credit losses of $2.9 million for the three months ended March 31, 2026 increased by $0.8 million, or 38.1%, from $2.1 million for the three months ended March 31, 2025. The increase is primarily due to a higher chargebacks of uncollected online money transfer transactions, and an increase in write-offs of agent receivable balances primarily as a result of sending agents that were not able to pay in accordance with the original terms of their agreements with us and are, accordingly, subject to our normal collection procedures.
Restructuring costs - Restructuring costs of $0.3 million for the three months ended March 31, 2025 (none in 2026) included primarily severance costs related to the restructuring of La Nacional and our foreign operations.
Transaction Costs - Transaction costs of $1.2 million for both the three months ended March 31, 2026 and 2025, respectively, consist primarily of financial advisory fees as well as other professional fees and legal fees incurred in connection with the Company's evaluation of strategic alternatives, including the pending Merger with Western Union and business acquisition transactions.
Depreciation and amortization - Depreciation and amortization of $4.7 million for the three months ended March 31, 2026 increased by $1.1 million from $3.6 million or 30.6%, for the three months ended March 31, 2025. The increase is primarily the result of higher depreciation associated with additional software developed being placed into production and computer equipment acquired to support our proprietary software enhancements and increasing sending agent network.
Non-Operating Expenses
Interest expense - Interest expense of $2.2 million for the three months ended March 31, 2026 decreased from $2.7 million for the three months ended March 31, 2025. The decrease was primarily due to lower usage of our revolving credit facility and lower market interest rates paid during 2026.
Income tax provision - Income tax provision was $1.0 million for the three months ended March 31, 2026, which represents a decrease of $2.6 million from an income tax provision of $3.6 million for the three months ended March 31, 2025. The decrease in income tax provision was mainly attributable to a decrease in income before taxes primarily due to the factors discussed above.
Net Income
We reported net income of $0.5 million for the three months ended March 31, 2026 compared to net income of $7.8 million for the three months ended March 31, 2025, which resulted in a decrease of $7.3 million, or 93.6%, due to the same factors discussed above.
Earnings Per Share
Earnings per Share - Basic for the three months ended March 31, 2026 was $0.02, representing a decrease of $0.23, or 92.0%, compared to $0.25 for the three months ended March 31, 2025.
Earnings per Share - Diluted for the three months ended March 31, 2026 was $0.02, representing a decrease of $0.23, or 92.0%, compared to $0.25 for the three months ended March 31, 2025.
The decrease in both basic and diluted EPS largely reflects the decrease in net income discussed above, offset by a reduced share count as a result of the stock repurchases executed during the first six months of 2025.
Non-GAAP Financial Measures
We use Adjusted Net Income, Adjusted Earnings per Share and Adjusted EBITDA to evaluate our performance, both internally and as compared with our peers, because these measures exclude certain items that may not be indicative of our core operating results, as well as items that can vary widely among companies within our industry. For example, non-cash compensation costs can be subject to volatility from changes in the market price per share of our common stock or variations in the value and number of shares granted, and amortization of intangible assets is subject to business and asset acquisition activities, which varies from period to period.
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We present these non-GAAP financial measures because we believe they are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Furthermore, we believe they are helpful in highlighting trends in our operating results by focusing on our core operating results and are useful to evaluate our performance in conjunction with our GAAP financial measures. Adjusted Net Income, Adjusted Earnings per Share and Adjusted EBITDA are non-GAAP financial measures and should not be considered as an alternative to operating income, net income or earnings per share as a measure of operating performance or cash flows or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to GAAP measures.
Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business because it excludes, among other things, the effects of certain transactions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the jurisdictions in which we operate and capital investments.
In particular, Adjusted EBITDA is subject to certain limitations, including the following:
•Adjusted EBITDA does not reflect interest expense, or the amounts necessary to service interest or principal payments on our debt;
•Adjusted EBITDA does not reflect income tax provision (benefit), and because the payment of taxes is part of our operations, tax provision is a necessary element of our costs and ability to operate;
•Although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any costs of such replacements;
•Adjusted EBITDA does not reflect the non-cash component of share-based compensation;
•Adjusted EBITDA does not reflect the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations; and
•other companies in our industry may calculate Adjusted EBITDA or similarly titled measures differently than we do, limiting its usefulness as a comparative measure.
We adjust for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA, as well as our other non-GAAP financial measures, only as supplemental information.
Adjusted Net Income and Adjusted Earnings per Share
Adjusted Net Income is defined as net income adjusted to add back certain charges and expenses, such as non-cash amortization of intangible assets resulting from business and asset acquisition transactions, which will recur in future periods until these assets have been fully amortized, non-cash compensation costs and other items set forth in the table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.
Adjusted Earnings per Share - Basic and Diluted is calculated by dividing Adjusted Net Income by GAAP weighted-average common shares outstanding (basic and diluted).
Adjusted Net Income for the three months ended March 31, 2026 was $3.8 million, representing a decrease of $7.1 million, or 65.1%, from Adjusted Net Income of $10.9 million for the three months ended March 31, 2025. The decrease in Adjusted Net Income was primarily due to the decrease in net income as discussed above, slightly offset by the higher net effect of the adjusting items detailed in the table below.
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The following table presents the reconciliation of Net Income, our closest GAAP measure, to Adjusted Net Income:
| Three Months Ended March 31, | |||||||||||
| (in thousands, except for per share data) | 2026 | 2025 | |||||||||
| Net Income | $ | 511 | $ | 7,769 | |||||||
| Adjusted for: | |||||||||||
| Share-based compensation (a) | 2,526 | 2,112 | |||||||||
| Restructuring costs (b) | - | 306 | |||||||||
| Transaction costs (c) | 1,166 | 1,169 | |||||||||
|
Other charges and expenses (d)
|
359 | 327 | |||||||||
|
Amortization of intangibles (e)
|
899 | 711 | |||||||||
|
Income tax benefit related to adjustments (f)
|
(1,629) | (1,466) | |||||||||
| Adjusted Net Income | $ | 3,832 | $ | 10,928 | |||||||
| Adjusted Earnings per Share | |||||||||||
| Basic | $ | 0.13 | $ | 0.36 | |||||||
| Diluted | $ | 0.13 | $ | 0.35 | |||||||
| Weighted-average common shares outstanding | |||||||||||
| Basic | 29,858,890 | 30,587,949 | |||||||||
| Diluted | 30,382,817 | 30,831,633 | |||||||||
(a)Represents share-based compensation relating to equity awards granted primarily to employees and independent directors of the Company.
(b)Represents primarily severance related to the execution of restructuring plans.
(c)Represents primarily financial advisory, professional and legal fees related to strategic alternatives, including the pending Merger with Western Union.
(d)Represents primarily loss on disposal of fixed assets.
(e)Represents the amortization of certain intangible assets that resulted from business and asset acquisition transactions.
(f)Represents the current and deferred tax impact of the taxable adjustments to Net Income using the Company's blended federal and state tax rate for each period. Relevant tax-deductible adjustments include all adjustments to Net Income.
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Adjusted Earnings per Share - Basic and Diluted (previously defined and used as described above) are as follows:
Adjusted Earnings per Share - Basic for the three months ended March 31, 2026 was $0.13, representing a decrease of $0.23, or 63.9%, compared to $0.36 for the three months ended March 31, 2025. The decrease in Adjusted Earnings per Share - Basic was primarily due to the decrease in Net Income.
Adjusted Earnings per Share - Diluted for the three months ended March 31, 2026 was $0.13, representing a decrease of $0.22, or 62.9%, compared to $0.35 for the three months ended March 31, 2025. The decrease in Adjusted Earnings per Share - Diluted was primarily due to the decrease in Net Income.
The following table presents the reconciliation of Earnings per Share, our closest GAAP measure, to Adjusted Earnings per Share:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Basic | Diluted | Basic | Diluted | ||||||||||||||||||||
|
Earnings per Share
|
$ | 0.02 | $ | 0.02 | $ | 0.25 | $ | 0.25 | |||||||||||||||
| Adjusted for: | |||||||||||||||||||||||
| Share-based compensation | 0.08 | 0.08 | 0.07 | 0.07 | |||||||||||||||||||
| Restructuring costs | - | - | 0.01 | 0.01 | |||||||||||||||||||
| Transaction costs | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||||||||||||
| Other charges and expenses | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||||||||
| Amortization of intangibles | 0.03 | 0.03 | 0.02 | 0.02 | |||||||||||||||||||
| Income tax benefit related to adjustments | (0.05) | (0.05) | (0.05) | (0.05) | |||||||||||||||||||
| Adjusted Earnings per Share | $ | 0.13 | $ | 0.13 | $ | 0.36 | $ | 0.35 | |||||||||||||||
The table above may contain slight summation differences due to rounding.
Adjusted EBITDA
Adjusted EBITDA is defined as net income before depreciation and amortization, interest expense, income taxes, and also adjusted to add back certain charges and expenses, such as non-cash share-based compensation costs and other items set forth in the table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.
Adjusted EBITDA for the three months ended March 31, 2026 was $12.4 million, representing a decrease of $9.2 million, or 42.6%, from $21.6 million for the three months ended March 31, 2025. The decrease in Adjusted EBITDA was primarily due to the decrease in Net Income as discussed above coupled with the lower net effect of the adjusting items detailed in the table below.
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The following table presents the reconciliation of Net Income, our closest GAAP measure, to Adjusted EBITDA:
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
| Net Income | $ | 511 | $ | 7,769 | |||||||
| Adjusted for: | |||||||||||
| Interest expense | 2,208 | 2,700 | |||||||||
| Income tax provision | 955 | 3,606 | |||||||||
| Depreciation and amortization | 4,685 | 3,629 | |||||||||
| EBITDA | 8,359 | 17,704 | |||||||||
| Share-based compensation (a) | 2,526 | 2,112 | |||||||||
| Restructuring costs (b) | - | 306 | |||||||||
| Transaction costs (c) | 1,166 | 1,169 | |||||||||
| Other charges and expenses (d) | 359 | 327 | |||||||||
| Adjusted EBITDA | $ | 12,410 | $ | 21,618 | |||||||
(a)Represents share-based compensation relating to equity awards granted primarily to employees and independent directors of the Company.
(b)Represents primarily severance related to the execution of restructuring plans.
(c)Represents primarily financial advisory, professional and legal fees related to strategic alternatives, including the pending Merger with Western Union.
(d)Represents primarily loss on disposal of fixed assets.
Liquidity and Capital Resources
We consider liquidity in terms of our cash and cash equivalents position, cash flows from operations and their sufficiency to fund business operations, including working capital needs, debt service, acquisitions, capital expenditures, contractual obligations and other commitments. In particular, to meet our payment service obligations at all times, we must have sufficient highly liquid assets and be able to move funds on a timely basis.
Our principal sources of liquidity are our cash generated by operating activities supplemented with borrowings under our revolving credit facility. Our primary cash needs are for day-to-day operations, to pay interest and principal on our indebtedness, to fund working capital requirements, and to make capital expenditures and repurchases of our common stock. However, the Company has suspended activity under the Repurchase Program and does not intend to make further repurchases under it during the pendency of the Merger Agreement.
We have funded and still expect to continue funding our liquidity requirements through internally generated funds, supplemented in the ordinary course, with borrowings under our revolving credit facility. We maintain a strong cash and cash equivalents balance position and have access to committed funding sources, which we have used only on an ordinary course basis during the three months ended March 31, 2026. Therefore, we believe that our current cash and cash equivalents position, as well as projected cash flows generated from operations, together with borrowings under our revolving credit facility are sufficient to fund our principal and interest payments, lease expenses, our working capital needs, our business acquisitions, our expected capital expenditures and projected common stock repurchases in the short and long terms.
Credit Agreement
The Company and certain of its subsidiaries are party to a Second Amended and Restated Credit Agreement (the "Second A&R Credit Agreement") with a group of banking institutions, which amended and restated in its entirety the A&R Credit Agreement. The Second A&R Credit Agreement provides for a new $425.0 million, multi-currency, revolving credit facility and an uncommitted incremental facility, which may be utilized for additional term and revolving loans of up to $100.0 million. The Second A&R Credit Agreement also provides for the issuance of letters of credit, which would reduce availability under the revolving credit facility. The maturity date of the Second A&R Credit Agreement is August 29, 2029. Borrowings under the Second A&R Credit Agreement are available for general corporate purposes to support the Company's growth, as well as to fund share repurchases.
As of March 31, 2026, there were $240.8 million of outstanding amounts drawn on the revolving credit facility. There were $284.2 million of additional borrowings available under this facility as of March 31, 2026.
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Under the Second A&R Credit Agreement and at the election of the Company, interest on the revolving loans denominated in U.S. Dollars is determined by reference to either (i) the secured overnight financing rate ("SOFR"), (ii) the daily simple SOFR or (iii) a defined "base rate," in each case, plus an applicable margin ranging from 1.75% to 2.25% for SOFR rate loans and from 0.75% to 1.25% for base rate loans based upon the Company's consolidated leverage ratio, as so calculated pursuant to the terms of the Second A&R Credit Agreement. Interest on revolving loans denominated in Euros or Pounds Sterling is determined by reference to the Euro Interbank Offered Rate ("EURIBOR") or Sterling Overnight Index Average ("SONIA"), in each case, plus an applicable margin ranging from 1.75% to 2.25% based upon the Company's consolidated leverage ratio, as so calculated.
The revolving loans may be borrowed, repaid, and reborrowed from time to time in accordance with the terms and conditions of the Second A&R Credit Agreement. Interest is payable quarterly for base rate loans, daily simple SOFR loans, and daily simple SONIA loans, and on the expiration of the applicable interest period for term SOFR loans and EURIBOR loans. The Company also pays an annual commitment fee of up to 0.30% of the actual daily amount by which the maximum availability under the revolving credit facility exceeds the sum of the outstanding amount of revolving credit loans.
The effective interest rate for the three months ended March 31, 2026 for the revolving credit facility was 2.10%.
The Second A&R Credit Agreement also provides the Company with increased flexibility to make certain restricted payments, including the repurchase of its common stock, without limitation so long as the Company's consolidated leverage ratio, as of the then most recently completed four fiscal quarters, after giving pro forma effect to such restricted payments, is 2.50 to 1.00 or less. In addition, the Company may make restricted payments that do not exceed in the aggregate during any fiscal year the greater of (i) $30.3 million and (ii) 25% of Consolidated EBITDA (as defined in the Second A&R Credit Agreement) for the then most recently completed four fiscal quarters of the Company.
The Second A&R Credit Agreement also contains customary covenants that limit the ability of the Company and its subsidiaries to, among other things, grant liens, incur additional indebtedness, make acquisitions or investments, dispose of certain assets, issue dividends and distributions (other than to the Company and certain of its subsidiaries), change the nature of their businesses, enter into certain transactions with affiliates, or amend the terms of material indebtedness, in each case subject to certain thresholds and exceptions.
Under the Second A&R Credit Agreement, the Company is required to maintain a quarterly minimum interest coverage ratio of 3.00:1.00 and a quarterly maximum consolidated leverage ratio of 3.50 with a step-up to 3.75 in the quarter during which the Company completes a material acquisition, in each case, as computed in accordance with the terms of the Second A&R Credit Agreement.
As of March 31, 2026, we were in compliance with the covenants of the Second A&R Credit Agreement that require the Company to maintain a quarterly minimum interest coverage ratio of 3.00:1.00 and a quarterly maximum consolidated leverage ratio of 3.50:1.00.
Our indebtedness could adversely affect our ability to raise additional capital, limit our ability to react to changes in the economy or our industry, expose us to interest rate risk and prevent us from meeting our obligations. See "Risk Factors-Risks Relating to Our Indebtedness-The Company's indebtedness may limit our operating flexibility and could adversely affect our business, financial condition and results of operations" and "Our Second Amended and Restated Credit Agreement contains covenants that may limit our ability to conduct business" included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Repurchase Program
On August 18, 2021, the Company's Board of Directors approved a stock repurchase program (the "Repurchase Program") that authorized the Company to purchase up to $40.0 million of its outstanding shares of the Company's common stock. On March 3, 2023, the Board of Directors approved an increase to the Repurchase Program that authorizes the Company to purchase an additional $100.0 million of its outstanding shares. On August 26, 2024, the Board of Directors approved a second increase to the Repurchase Program that authorizes the Company to purchase an additional $63.8 million of its outstanding shares. Under the Repurchase Program, the Company is authorized to repurchase shares from time to time in accordance with applicable laws, both on the open market and in privately negotiated transactions and may include the use of derivative contracts or structured share repurchase agreements. The timing and amount of repurchases depends on several factors, including market and business conditions, the trading price of the Company's common stock and the nature of other investment opportunities. The Repurchase Program may be limited, suspended or discontinued at any time without prior notice. The Repurchase Program does not have an expiration date. The Second A&R Credit Agreement permits the Company to make restricted payments (including share repurchases, among others) under a variety of tests as described above, including, without limitation, so long as the Consolidated Leverage Ratio (as defined in the Second A&R Credit Agreement), as of the then most recently completed four fiscal quarters of the Company, after giving pro forma effect to such restricted payments, is 2.50:1.00 or less.
The Company accounts for purchases of treasury stock under the cost method. Any direct costs incurred to acquire treasury stock are considered stock issue costs and added to the cost of the treasury stock. During the three months ended March 31, 2026, there were no share repurchases. During the three months ended March 31, 2025, the Company purchased 367,873 shares for an aggregate purchase price of $5.0 million. As of March 31, 2026, there was $48.3 million available for future share repurchases under the Repurchase Program.
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The Company has suspended activity under the Repurchase Program and does not intend to make further repurchases under it during the pendency of the Merger Agreement.
Operating Leases
We are party to operating leases for office space, warehouses, Company-operated store locations and vehicles, which we use as part of our day-to-day operations. Operating lease expenses were $1.8 million for the three months ended March 31, 2026, which we expect to be consistent throughout the year. We have not entered into finance lease commitments. For additional information on operating lease obligations, refer to Note 7, Leases, to the Condensed Consolidated Financial Statements.
Merger Agreement
Until the Merger closes, or the Merger Agreement is terminated, our liquidity requirements will primarily be funded by our cash flow from operations, borrowings under our existing credit facility and certain other capital activities allowed under the Merger Agreement. In particular, we are subject to various restrictions under the Merger Agreement (except for under limited exceptions) on assuming additional debt, issuing additional equity or debt, repurchasing equity, making certain capital expenditures, and entering into certain acquisition, disposition and leasing transactions, among other restrictions, subject to the restrictions under the Merger Agreement.
Cash Flows
The following table summarizes the changes to our cash flows for the periods presented:
| Three Months Ended March 31, | |||||||||||
| (in thousands) | 2026 | 2025 | |||||||||
|
Statements of Cash Flows Data:
|
|||||||||||
| Net cash (used in) provided by operating activities | $ | (37,364) | $ | 41,282 | |||||||
| Net cash used in investing activities | (5,493) | (5,313) | |||||||||
| Net cash provided by (used in) financing activities | 45,061 | (15,145) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (562) | 437 | |||||||||
| Net increase in cash and cash equivalents | 1,642 | 21,261 | |||||||||
| Cash and cash equivalents, beginning of period | 168,682 | 130,503 | |||||||||
| Cash and cash equivalents, end of period | $ | 170,324 | $ | 151,764 | |||||||
Operating Activities
Net cash used in operating activities was $37.4 million for the three months ended March 31, 2026, a decrease of $78.7 million from net cash provided by operating activities of $41.3 million for the three months ended March 31, 2025. The decrease is primarily a result of a $74.0 million change in working capital, which varies due to timing of remittances of consumer funds by sending agents and transmittal orders and payments, as well as prefunding of payers primarily for weekends, and also reflects the decrease in net income.
Investing Activities
Net cash used in investing activities was $5.5 million for the three months ended March 31, 2026, representing an increase of $0.2 million from net cash used in investing activities of $5.3 million for the three months ended March 31, 2025. Net cash used in investing activities for both periods primarily represent our investment in software development and computer equipment for our sending agent network.
Financing Activities
Net cash used in financing activities was $45.1 million for the three months ended March 31, 2026, which primarily consisted of $46.0 million of net borrowings under the revolving credit facility.
Net cash used in financing activities was $15.1 million for the three months ended March 31, 2025, which primarily consisted of $9.2 million of net repayments under the revolving credit facility, $5.0 million used for repurchases of common stock and $0.9 million of payments for stock-based awards for shares withheld for tax payments in connection with share-based compensation arrangements.
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Critical Accounting Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions about future events that affect amounts reported in our condensed consolidated financial statements and related notes, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Management evaluates its accounting policies, estimates and judgments on an on-going basis. Management bases its estimates and judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions and conditions.
An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimate that are reasonably likely to occur, could materially impact the consolidated financial statements. Our Critical Accounting Policies and Estimates disclosed in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates" in our Annual Report on Form 10-K for the year ended December 31, 2025, for which there were no material changes during the three months ended March 31, 2026, included the following:
•Allowance for Credit Losses
•Goodwill and Intangible Assets
•Income Taxes
Recent Accounting Pronouncements
Refer to Note 1, Business and Accounting Policies, of the Condensed Consolidated Financial Statements for information on recent accounting pronouncements.
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International Money Express Inc. published this content on May 11, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 11, 2026 at 13:31 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]