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Digital Turbine Reports Fiscal 2025 Third Quarter Financial Results

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2 years ago

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Third Quarter Revenue Totaled $134.6 Million

Third Quarter GAAP Net Loss of $23.1 Million, or GAAP EPS of ($0.22); Third Quarter Non-GAAP Adjusted Net Income1 of $13.7 Million and Non-GAAP Adjusted EPS1 of $0.13

Third Quarter Non-GAAP Adjusted EBITDA2 Totaled $22.0 Million

AUSTIN, Texas, Feb. 5, 2025 /PRNewswire/ — Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended December 31, 2024.

Recent Financial Highlights:

Fiscal third quarter of 2025 revenue totaled $134.6 million, representing an increase of 13% quarter-over-quarter as compared to the fiscal second quarter of 2025, and a decline of 6% year-over-year as compared to the fiscal third quarter of 2024.

GAAP net loss for the fiscal third quarter of 2025 was $23.1 million, or ($0.22) per share, as compared to GAAP net loss for the fiscal third quarter of 2024 of $14.1 million, or ($0.14) per share. Non-GAAP adjusted net income1 for the fiscal third quarter of 2025 was $13.7 million, or $0.13 per share, as compared to Non-GAAP adjusted net income1 of $15.6 million, or $0.15 per share, in the fiscal third quarter of 2024.

Non-GAAP adjusted EBITDA2 for the fiscal third quarter of 2025 was $22.0 million, representing an increase of 44% quarter-over-quarter as compared to the fiscal second quarter of 2025, and a decline of 13% year-over-year as compared to Non-GAAP adjusted EBITDA2 of $25.4 million in the fiscal third quarter of 2024.

Non-GAAP free cash flow3 totaled $6.4 million in the fiscal third quarter of 2025.

“Our financial results exceeded our expectations in the December quarter with improved execution and the enactment of transformational profit-optimization measures driving improved operating performance and free cash flow,” said Bill Stone, CEO. “Strong advertiser and publisher demand for our increasingly wide array of On-Device product offerings and continuing growth in spending from leading advertising agencies and brand advertisers on our App Growth Platform were important revenue drivers. We are raising our fiscal 2025 outlook, which implies year-over-year revenue growth in the March quarter with more material year-over-year growth in EBITDA.  We believe that our future is bright, and I am extremely grateful for the resilience, focus and hustle prominently displayed throughout the organization as Digital Turbine returns to a growth company.”  

Fiscal 2025 Third Quarter Financial Results

Total revenue for the third quarter of fiscal 2025 was $134.6 million. Total On Device Solutions revenue before intercompany eliminations was $91.7 million. Total App Growth Platform revenue before intercompany eliminations was $44.2 million.

GAAP net loss for the third quarter of fiscal 2025 was $23.1 million, or ($0.22) per share, as compared to GAAP net loss for the third quarter of fiscal 2024 of $14.1 million, or ($0.14) per share.

Non-GAAP adjusted net income1 for the third quarter of fiscal 2025 was $13.7 million, or $0.13 per share, as compared to Non-GAAP adjusted net income1 of $15.6 million, or $0.15 per share, in the third quarter of fiscal 2024.

Non-GAAP adjusted EBITDA2 for the third quarter of fiscal 2025 was $22.0 million, as compared to Non-GAAP adjusted EBITDA2 for the third quarter of fiscal 2024 of $25.4 million.

Business Outlook

Based on information available as of February 5, 2025, the Company is raising its annual guidance, and currently expects the following for fiscal year 2025:

Revenue of between $485 million and $490 millionNon-GAAP adjusted EBITDA2 of between $69 million and $71 million

It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company’s stock price, or other items that are difficult to predict with precision.

About Digital Turbine, Inc.

Digital Turbine empowers superior mobile consumer experiences and results for the world’s leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners’ abilities to supercharge awareness, acquisition, and monetization – connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com.

Conference Call

Management will host a conference call and webcast today at 4:30 p.m. ET to discuss its fiscal 2025 third quarter financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed online via the webcast link: https://app.webinar.net/r46V3JYXmyx. The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 8775045. A live and archived webcast of the call can be accessed via the Investor Relations section of Digital Turbine’s website.  The webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine’s website.

For those unable to join the live call, a playback will be available through February 12th, 2025. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 3909564.

An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine’s website.

Use of Non-GAAP Financial Measures

To supplement the Company’s consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share (“EPS”), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.

Non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management’s internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

1Non-GAAP adjusted net income and EPS are defined as GAAP net income and EPS adjusted to exclude the effect of stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, changes in fair value of contingent considerations, contract settlement fees, and tax adjustments. Readers are cautioned that non-GAAP adjusted net income and EPS should not be construed as an alternative to comparable GAAP net income figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

2Non-GAAP adjusted EBITDA is calculated as GAAP net income excluding the following cash and non-cash expenses: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, contract settlement fees, changes in fair value of contingent considerations, and severance costs. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.

3Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.

4Non-GAAP gross profit is defined as GAAP income from operations adjusted to exclude the effect of product development costs, sales and marketing costs, general and administrative costs, contract settlement fees, and depreciation of software included in other direct costs of revenue. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company’s financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.

Forward-Looking Statements

This news release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:

Risks Specific to our Business

We have a history of net lossesWe have a limited operating history for our current portfolio of assets.Growth may place significant demands on our management and our infrastructure.Our operations are global in scope, and we face added business, political, regulatory, legal, operational, financial and economic risks as a result of our international operations.Our financial results could vary significantly from quarter-to-quarter and are difficult to predict.A significant portion of our revenue is derived from a limited number of wireless carriers and customers.The risk of impairment of our goodwill.The effects of the current and any future general downturns in the U.S. and the global economy, including financial market disruptions.Our products, services and systems rely on software that is highly technical, and if it contains errors or viruses, our business could be adversely affected.Our business may involve the use, transmission and storage of confidential information and personally identifiable information, and the failure to properly safeguard such information could result in significant reputational harm and monetary damages.Our business and reputation could be impacted by information technology system failures and network disruptionsSystem security risks and cyber-attacks could disrupt our internal operations or information technology services provided to customers.Our business and growth may suffer if we are unable to hire and retain key talent.If we are unable to maintain our corporate culture, our business could be harmed.Our transformation activities and reduction in force may not adequately reduce our operating costs or improve our operating margins or cash flows, may lead to additional workforce attrition and may cause operational disruptions.If we make future acquisitions, this could require significant management attention and disrupt our business.Adverse effects of negative developments affecting the financial services industry, including events or concerns involving liquidity, defaults, or non-performance by financial institutions.Entry into new lines of business, and our offering of new products and services, resulting from our investments may result in exposure to new risks.Litigation may harm out business.

Risks Related to the Mobile Advertising Industry

The mobile advertising business is an intensely competitive industry, and we may not be able to compete successfully.The markets for our products and services are rapidly evolving and may decline or experience limited growth.Our business is dependent on the continued growth in usage of smartphones and other mobile connected devices.Wireless technologies are changing rapidly, and we may not be successful in working with these new technologies.The complexity of and incompatibilities among mobile devices may require us to use additional resources for the development of our products and services.If wireless subscribers do not continue to use their mobile devices to access mobile content and other applications, our business growth and future revenue may be adversely affected.A shift of technology platform by wireless carriers and mobile device manufacturers could lengthen the development period for our offerings, increase our costs, and cause our offerings to be published later than anticipated.Actual or perceived security vulnerabilities in devices or wireless networks could adversely affect our revenue.We may be subject to legal liability associated with providing mobile and online services.Risks of public health issues, such as a major epidemic or pandemic.Risk related to geopolitical conditions and the global economy, including conflicts, financial markets, and inflation.Risk related to the geopolitical relationship between the U.S. and China or changes in China’s economic and regulatory landscape.

Industry Regulatory Risks

We are subject to rapidly changing and increasingly stringent laws, regulations and contractual requirements related to privacy, data security, and protection of children.We are subject to anti-corruption, import/export, government sanction, and similar laws, especially related to our international operations.Government regulation of our marketing methods could restrict or prevent our ability to adequately advertise and promote our content, products and services available in certain jurisdictions.Regulatory requirements pertaining to the marketing, advertising, and promotion of our products and services.Governmental regulation of our marketing methods.

Risks Related to Our Intellectual Property and Potential Liability

Third parties may obtain and improperly use our intellectual property; and if so, our competitive position may be adversely affected, particularly if we do not, or are unable to, adequately protect our intellectual property rightsThird parties may sue us for intellectual property infringement, which may prevent or limit our use of the intellectual property and disrupt our business and could require us to pay significant damage awards.Our platform contains open source software.Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, damages caused by malicious software, and other losses.

Risks Relating to Our Common Stock and Capital Structure

We have secured and unsecured indebtedness, which could limit our financial flexibility.To service our debt and fund our other obligations and capital requirements, we will require a significant amount of cash, and our ability to generate cash will depend on many factors beyond our control.The market price of our common stock is likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares at or above the current price or the price at which you purchased your shares.Risk of not being able to raise capital to grow our business.Risk to trading volume of lack of securities or industry analysts research coverage.A material weakness in our internal control over financial reporting and disclosure controls and procedures could, if not remediated, result in material misstatements in our financial statements.Maintaining and improvising financial controls and being a public company may strain resources.Anti-takeover provisions in our charter documents could make an acquisition of our company more difficult.Our bylaws designate Delaware as the exclusive forum for certain disputes.Other risks described in the risk factors in Item 1A of our latest Annual Report on Form 10-K under the heading “Risk Factors” and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:
Brian Bartholomew
Digital Turbine, Inc.
brian.bartholomew@digitalturbine.com

 

Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income 
(Unaudited)
(in thousands, except share and per share amounts)

Three months ended December 31,

Nine months ended
December 31,

2024

2023

2024

2023

Net revenue

$     134,637

$          142,634

$   371,354

$   432,259

Costs of revenue and operating expenses

Revenue share

69,947

70,364

182,092

208,675

Other direct costs of revenue

8,954

8,614

25,182

27,244

Product development

10,203

13,036

30,350

42,873

Sales and marketing

15,494

14,432

47,628

45,546

General and administrative

42,792

45,455

128,485

127,339

Impairment of goodwill

—

—

—

147,181

Total costs of revenue and operating expenses

147,390

151,901

413,737

598,858

Loss from operations

(12,753)

(9,267)

(42,383)

(166,599)

Interest and other income (expense), net

Change in fair value of contingent consideration

(500)

—

(300)

372

Interest expense, net

(8,446)

(7,666)

(25,928)

(22,900)

Foreign exchange transaction gain

1,037

338

879

155

Other expense, net

(57)

(311)

21

(67)

Total interest and other expense, net

(7,966)

(7,639)

(25,328)

(22,440)

Loss before income taxes

(20,719)

(16,906)

(67,711)

(189,039)

Income tax provision (benefit)

2,412

(2,845)

5,562

(5,097)

Net loss

(23,131)

(14,061)

(73,273)

(183,942)

Less: net loss attributable to non-controlling interest

—

—

—

(220)

Net loss attributable to Digital Turbine, Inc.

(23,131)

(14,061)

(73,273)

(183,722)

Other comprehensive income (loss)

Foreign currency translation gain (loss)

(4,101)

3,585

(3,157)

(3,809)

Comprehensive loss

(27,232)

(10,476)

(76,430)

(187,751)

Less: comprehensive income attributable to non-controlling
interest

—

—

—

519

Comprehensive loss attributable to Digital Turbine, Inc.

$      (27,232)

$          (10,476)

$   (76,430)

$ (188,270)

Net loss per common share

Basic

$          (0.22)

$              (0.14)

$       (0.71)

$       (1.83)

Diluted

$          (0.22)

$              (0.14)

$       (0.71)

$       (1.83)

Weighted-average common shares outstanding

Basic

104,148

101,376

103,201

100,643

Diluted

104,148

101,376

103,201

100,643

 

Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except par value and share amounts)

December 31, 2024

March 31, 2024

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$               35,314

$             33,605

Accounts receivable, net

199,949

191,015

Prepaid expenses

6,877

7,704

Other current assets

12,418

10,017

Total current assets

254,558

242,341

Property and equipment, net

49,625

45,782

Right-of-use assets

10,631

9,127

Intangible assets, net

270,262

313,505

Goodwill

221,080

220,072

Other non-current assets

33,992

34,713

TOTAL ASSETS

$             840,148

$           865,540

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$             147,732

$           159,200

Accrued revenue share

34,734

33,934

Accrued compensation

8,475

7,209

Acquisition purchase price liabilities

1,886

—

Other current liabilities

47,830

35,681

Total current liabilities

240,657

236,024

Long-term debt, net of debt issuance costs

408,154

383,490

Deferred tax liabilities, net

14,903

20,424

Other non-current liabilities

12,853

11,670

Total liabilities

676,567

651,608

Commitments and contingencies

Stockholders’ equity

Preferred stock

Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares
authorized, 100,000 issued and outstanding (liquidation preference of $1)

100

100

Common stock

$0.0001 par value: 200,000,000 shares authorized; 105,593,103 issued and
104,834,978 outstanding at December 31, 2024; 102,877,057 issued and
102,118,932 outstanding at March 31, 2024

10

10

Additional paid-in capital

884,270

858,191

Treasury stock (758,125 shares at December 31, 2024 and March 31, 2024)

(71)

(71)

Accumulated other comprehensive loss

(52,112)

(48,955)

Accumulated deficit

(668,616)

(595,343)

Total stockholders’ equity

163,581

213,932

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$             840,148

$           865,540

 

Digital Turbine, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)

Three months ended December 31,

2024

2023

Cash flows from operating activities:

Net (loss) income

$          (23,131)

$          (14,061)

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

19,613

21,008

Non-cash interest expense

533

209

Allowance for credit losses

846

1,348

Stock-based compensation expense

8,250

7,987

Change in estimate of remaining contingent consideration

500

—

Right-of-use asset

238

(1,272)

Foreign exchange transaction gain

(1,037)

(338)

(Increase) decrease in assets:

Accounts receivable, gross

(9,532)

(27,790)

Prepaid expenses

143

(2,484)

Other current assets

(43)

(2,680)

Other non-current assets

284

(1,205)

Increase (decrease) in liabilities:

Accounts payable

(7)

19,799

Accrued revenue share

5,463

11,537

Accrued compensation

1,244

(743)

Other current liabilities

9,719

(2,788)

Deferred income taxes

(2,243)

1,723

Other non-current liabilities

(397)

1,411

Net cash provided by operating activities

10,443

11,661

Cash flows from investing activities

Equity investments

—

(9,678)

Business acquisitions, net of cash acquired

—

65

Capital expenditures

(7,125)

(3,107)

Net cash used in investing activities

(7,125)

(12,720)

Cash flows from financing activities

Proceeds from borrowings

—

8,000

Repayment of debt obligations

—

(17,998)

Payment of withholding taxes for net share settlement of equity awards

(71)

(139)

Options exercised

10

57

Net cash used in financing activities

(127)

(10,080)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(642)

1,955

Net change in cash and cash equivalents and restricted cash

2,549

(9,184)

Cash and cash equivalents and restricted cash, beginning of period

32,765

58,649

Cash and cash equivalents and restricted cash, end of period

$            35,314

$            49,465

 

REVENUE BY SEGMENT

(in thousands)

(Unaudited)

Three months ended December 31,

2024

2023

% Change

On Device Solutions

$           91,736

$           94,298

(3) %

App Growth Platform

44,241

49,181

(10) %

Elimination

(1,340)

(845)

59 %

Consolidated

$         134,637

$         142,634

(6) %

 

GAAP (LOSS) INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT

(in thousands)

(Unaudited)

Three months ended December 31,

2024

2023

Net revenue

$      134,637

$      142,634

(Loss) income from operations

(12,753)

(9,267)

Add-back items:

Product development

10,203

13,036

Sales and marketing

15,494

14,432

General and administrative

42,792

45,455

Depreciation of software included in other direct costs of revenue

17

572

Contract settlement fees

3,800

—

Non-GAAP gross profit

$        59,553

$        64,228

Non-GAAP gross profit percentage

44 %

45 %

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED NET INCOME

(in thousands)

(Unaudited)

Three months ended December 31,

2024

2023

Net (loss) income

$      (23,131)

(14,061)

Add-back items:

Stock-based compensation expense

8,250

7,987

Amortization of intangibles

13,474

15,936

Change in fair value of contingent consideration

500

—

Tax adjustment (1)

7,685

—

Business transformation costs

667

4,763

Transaction-related expenses

207

46

Severance costs

2,220

909

Contract settlement fees

3,800

—

Non-GAAP adjusted net income

$        13,672

$        15,580

Non-GAAP adjusted net income per common share

$            0.13

$            0.15

Weighted-average common shares outstanding, diluted

105,851

103,459

(1) Valuation allowance

 

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED EBITDA

(in thousands)

(Unaudited)

Three months ended December 31,

2024

2023

Net (loss) income

$          (23,131)

$          (14,061)

Add-back items:

Stock-based compensation expense

8,250

7,987

Depreciation and amortization

19,613

21,008

Interest expense, net

8,446

7,666

Other expense, net

57

311

Change in fair value of contingent consideration

500

—

Business transformation costs

667

4,763

Foreign exchange transaction (gain) loss

(1,037)

(338)

Income tax provision (benefit)

2,412

(2,845)

Transaction-related expenses

207

46

Severance costs

2,220

909

Contract settlement fees

3,800

—

Non-GAAP adjusted EBITDA

$            22,004

$            25,446

 

GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW

(in thousands)

(Unaudited)

Three months ended December 31,

2024

2023

Net cash provided by operating activities

$            10,443

$            11,661

Capital expenditures

(7,125)

(3,107)

Transaction-related expenses

207

46

Severance costs

2,220

909

Business transformation costs

667

4,763

Non-GAAP free cash flow provided (used) by operations

$              6,412

$            14,272

View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-turbine-reports-fiscal-2025-third-quarter-financial-results-302369262.html

SOURCE Digital Turbine, Inc.

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October 19, 2026

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At the 140th Canton Fair, PhotonPay examines how fiat and stablecoin infrastructure can give advanced manufacturers more flexibility in managing cross-border payments and working capital.

HONG KONG, Oct. 19, 2026 /PRNewswire/ — A piece of industrial machinery may take months to engineer, manufacture and deliver. The payments behind it follow a different timeline. Suppliers need to be paid, freight costs must be covered, and overseas buyers may settle invoices in stages. When production, delivery and payment span multiple markets, keeping these commitments aligned becomes a challenge of its own.

At the 140th Canton Fair, where manufacturers are showcasing industrial machinery, electronic components, automotive parts and other advanced manufacturing products, this less visible side of global trade deserves closer attention. PhotonPay is participating in the fair at Area D, Booths DT1714–DT1718, examining how more flexible financial infrastructure can help businesses manage cross-border payments alongside the demands of international trade.

The Payment Gap Behind Global Supply Chains

Supply chain resilience is often discussed in terms of sourcing, manufacturing capacity and logistics. The flow of money deserves the same attention.

A manufacturer may have sufficient orders and production capacity but still face pressure when incoming payments and outgoing obligations fall out of sync. A payment initiated by a buyer does not necessarily mean the funds are immediately available to the seller. The transfer may involve multiple financial institutions, currency conversion, local processing and compliance checks before the recipient can use the money.

Costs can also be difficult to assess across different payment corridors. Depending on the banks and arrangements involved, intermediary fees, foreign exchange charges and other transaction costs may affect the final amount received. Limited visibility into a payment’s status can make it harder for finance teams to plan supplier payments and reconcile invoices.

The answer is not to abandon established banking infrastructure. Bank transfers still remain important to international trade. Nor is every payment delayed or expensive simply because it crosses a border. The more useful question is whether businesses have the right payment options for different markets, currencies and settlement requirements, rather than relying on one approach for every transaction.

Why Fiat and Stablecoin Rails Need to Work Together

Discussions about cross-border payments increasingly include stablecoins, but the choice facing corporate finance teams is not simply traditional banking versus blockchain.

Banking infrastructure remains essential. It connects businesses to local accounts, domestic payment systems and established financial relationships. Stablecoin networks offer a different set of capabilities: transfers can take place outside conventional banking hours, subject to the network and service arrangements involved.

Each serves different needs. A stablecoin transfer alone may not put spendable local currency in a supplier’s hands. The recipient’s ability to accept the asset, conversion and liquidity arrangements, access to local payout channels and applicable regulatory requirements all matter. A business also needs to know how a transaction will be screened, recorded and reconciled with its underlying commercial documents.

This is where a dual-rail model becomes relevant. By connecting traditional fiat infrastructure with stablecoin payment channels, a business can access different ways to move funds within a unified financial environment, where supported and permitted.

The choice of payment route should reflect the corridor, currency, counterparty, timing requirements and compliance obligations. For advanced manufacturers, this flexibility can help finance teams coordinate incoming payments with supplier invoices, logistics costs and other business obligations. Foreign exchange exposure, liquidity constraints and compliance reviews still require careful management, while access to different payment rails gives businesses more options to work with.

From Payment Choice to Operational Control

More payment options are useful only when they fit into the way a business operates.

For an exporter, receiving funds is one step in a longer process. The money may need to be converted into another currency, held until a supplier payment is due, or distributed to different counterparties across markets. Managing these steps through disconnected accounts and systems can add work for finance teams and make it harder to maintain a consistent view of cash positions.

PhotonPay, a stablecoin-powered payment operating system, brings together global accounts, local collection capabilities, multi-currency fund management, currency conversion and global payouts across fiat and stablecoin infrastructure.

Through PhotonPay’s global accounts, businesses can collect payments from overseas customers through local accounts and international transfers. Its multi-asset wallet connects fiat currencies with stablecoins, while its 24/7 currency conversion capabilities give businesses greater flexibility in managing different currency needs. Global payout capabilities help businesses move funds onward to suppliers and other counterparties across markets.

Together, these capabilities connect the key stages of cross-border fund management, from receiving customer payments and converting currencies to making subsequent business payments. Finance teams can manage incoming funds and outgoing obligations within a more integrated financial environment, with greater visibility across their global operations.

For B2B trade, operational visibility is as important as the ability to initiate a transfer. Finance teams need to understand the amount received, the costs associated with a transaction, its processing status and how the resulting movement of funds relates to an invoice or supplier payment.

By bringing payment infrastructure and fund management into a more connected workflow, PhotonPay helps businesses manage the movement of money alongside the commercial activity it supports.

Making Money Move at the Pace of Business

Global trade depends on two flows moving in sync: goods moving through supply chains and money moving between counterparties. For manufacturers operating across markets, the ability to collect, convert and deploy funds efficiently can shape how they manage supplier commitments, working capital and the next stage of production.

At the 140th Canton Fair, PhotonPay is showcasing how integrated fiat and stablecoin capabilities can help businesses keep capital moving alongside their operations. Visit PhotonPay at Area D, Booths DT1714–DT1718, during the Canton Fair.

About PhotonPay

PhotonPay is a stablecoin-powered payment operating system built for global infrastructure. Designed for modern enterprises, PhotonPay enables businesses to send, receive, convert, and settle funds across both fiat and stablecoin rails through a single, compliance-first integration, spanning 200+ countries and territories.

For more information, visit [www.photonpay.com].

Disclaimer

This material is for general informational purposes only and does not constitute legal, regulatory, tax, accounting, or investment advice, nor an offer or solicitation for any product or service. The availability, features, and regulatory treatment of PhotonPay’s products and services may vary depending on the user’s location, business model, and the laws and regulations that apply. Any descriptions of functionality, performance, efficiency, cost savings, or compliance support (including, without limitation, references to “real‑time”, “24/7”, “high‑efficiency”, or “compliant” solutions) are aspirational or forward‑looking in nature. Actual outcomes may differ due to market conditions, technological constraints, and regulatory developments, and PhotonPay makes no express or implied representation, warranty, or guarantee as to the achievement of any particular result.

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Technology

Following the Money: Stablecoin Transfers Under $100 Account for 77% of Activity, While Large Transactions Move Two-Thirds of Value, Mercuryo and BNB Chain Report Finds

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October 19, 2026

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LONDON, Oct. 19, 2026 /PRNewswire/ — Global payments infrastructure platform Mercuryo and BNB Chain, the community-driven blockchain ecosystem, have published a joint report highlighting the versatility of stablecoins, which facilitate activity ranging from low-value remittances to transactions made by ‘crypto whales’ moving digital assets across capital markets.  

The research found that 77.4% of stablecoin transfers on BNB Chain in Q3 2026 were valued at under $100, while transfers of $10,000 or more accounted for 66.2% of total transfer value.  

Combining Mercuryo’s fiat-to-crypto and crypto-to-fiat transaction data with BNB Chain’s on-chain data for Q3 2026, Stablecoins on BNB Chain: Fiat to Crypto and Back offers a complementary view of how stablecoins move. The findings show the versatility and usability of stablecoins and how they can serve very different purposes on the same permissionless blockchain infrastructure. 

Everyday Transfers & Large-Scale Capital Movements 

The findings point to a market serving multiple purposes simultaneously. While stablecoins remain an important component of digital asset markets, the data also highlights patterns consistent with their growing role in everyday stablecoin payments such as cross-border remittances. Most on-chain transfers are low-value, and stablecoins are frequently being converted between local currencies and digital dollars. 

The median network fee for a stablecoin transfer on BNB Chain was just *$0.0068:Low costs matter both to people sending remittances and to institutions settling high-value payments.Together, these figures demonstrate how the same blockchain infrastructure can accommodate frequent, low-value transfers alongside large-scale movements of capital.

“The research by Mercuryo and BNB Chain sheds light on one of the defining features of stablecoins, that being their versatility,” said Arthur Firstov, Chief Business Officer at Mercuryo. “The same permissionless blockchain infrastructure that facilitates small-value transfers and cross-border payments is underpinning large-scale trading and liquidity across capital markets. Stablecoins were designed as a place to hold value between trades for those taking positions on Bitcoin. We now see the tokens being used for a host of different purposes as the efficiencies and lower costs of blockchain technology bring benefits to the masses.” 

Local Currencies & Familiar Payment Methods  

The report found that in Q3 2026, 70% of the value used to purchase dollar-denominated stablecoins on BNB Chain through Mercuryo was paid in non-US dollar currencies. The US accounted for just 9.8% of purchase value, with Asia the largest regional market at 39.3%, followed by Europe at 33.4%. 

Payment preferences also resemble mainstream online shopping behaviour. Everyday shopping patterns are mirrored on-chain, with Apple Pay and Google Pay accounting for 69.5% of stablecoin purchases and 57.7% of purchase value through Mercuryo. Their combined share of purchases increased from 42.3% in Q3 2025, while 87.2% of purchases with a recorded device were made on a phone.

Worldpay’s Global Payments Report 2026 found that digital wallets collectively accounted for 56% of global e-commerce value in 2025. The comparison suggests that stablecoin purchases are increasingly compatible with the familiar checkout experiences consumers already use online, rather than requiring every user to adopt specialist crypto payment methods. 

Self-Custody Leads

Self-custody leads at every stage of a stablecoin’s usage examined in the report. Through Mercuryo, 59.5% of stablecoin purchase value went to self-custody wallet channels. Across BNB Chain, individual addresses held 63.3% of stablecoin value, while 59.8% of off-ramp value processed through Mercuryo originated from self-custody wallet channels. 

Although the datasets use different measures of wallet activity, the findings point to the continued importance of self-custody wallets in accessing and managing stablecoins. These wallets allow users to hold and transfer assets directly, while providing access to applications and services across the on-chain ecosystem. 

Stablecoins in Active Circulation 

The report also found that 64.3% of stablecoin value on BNB Chain had moved within the previous 30 days, suggesting that much of the value was actively circulating. The findings highlight stablecoins’ dual role, facilitating the movement of value while continuing to support trading, decentralised finance (DeFi) and broader on-chain activity. 

Taken together, the findings of this report show stablecoins as more than digital tokens held on a blockchain. They form part of a broader financial lifecycle connecting fiat currencies, self-custody wallets, on-chain applications, and traditional payment infrastructure, serving a wider range of financial needs than trading alone. 

* Stablecoin transfers on BNB Chain are $0.0068. Additional fees for the purchase, sale or conversion into stablecoins may apply. 

Stablecoins carry risks, including potential loss of value, issuer and redemption risks, and risks associated with the underlying blockchain. They are not equivalent to bank deposits or cash, and are not be covered by deposit protection schemes. 

About Mercuryo 

Mercuryo is a leading payment infrastructure platform in the digital token space. Standing out in the decentralized ecosystem by enhancing payment use case growth and on-chain integration, Mercuryo’s intuitive and robust solutions are powering the next generation of Web3 payment services. Mercuryo’s innovative payment products such as Spend, bridge the gap between TradFi, Web2 and Web3. Mercuryo is the proud partner of leading pillars in the digital token economy such as Trust Wallet and MetaMask, along with Revolut, Mastercard and Visa. Driven by an evolving product suite, Mercuryo is expanding further and continuing to innovate with a diversified stack of payment services. 

Media Contact    
Joe Morgan, PR Manager, Mercuryo    
j.morgan@mercuryo.io  

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