10-K: Athena Bitcoin Global Reports Steep 2025 Net Loss Amid Revenue Decline

Athena Bitcoin Global reported a net loss of $6.034 million in 2025, a significant reversal from the $10.284 million net income in 2024, primarily due to an 18% revenue decrease and increased operating expenses.

Summary

• Reported a net loss of $6.034 million for the year ended December 31, 2025, compared to a net income of $10.284 million in 2024.
• Total revenues decreased by 18% to $234.597 million in 2025 from $285.391 million in 2024.
• Gross profit declined by 35% to $24.838 million in 2025 from $38.000 million in 2024, with the gross profit percentage decreasing from 13% to 11%.
• Operating expenses increased by 27% to $23.821 million in 2025, up from $18.709 million in 2024, driven by higher general and administrative and litigation expenses.
• Income from operations saw a substantial 95% decrease, falling to $1.017 million in 2025 from $19.291 million in 2024.
• The company recorded a $5.283 million loss on extinguishment of debt in 2025, related to the termination and settlement of agreements with Taproot Acquisition Enterprises, LLC.
• Adjusted EBITDA decreased by $14.506 million to $10.425 million in 2025 from $24.931 million in 2024.
• The number of Athena Bitcoin ATMs decreased by 5% from 3,111 at December 31, 2024, to 2,953 at December 31, 2025.
• Despite the decrease in ATM count, the number of Bitcoin ATM transactions increased by 15% to 213,683 in 2025 from 185,789 in 2024.
• The median ATM transaction size for Bitcoin decreased by 30% from $150 in 2024 to $105 in 2025.
• The average markup on Bitcoin sold through ATMs increased from 22% in 2024 to 24% in 2025.
• White-label service revenue decreased by 42% to $2.790 million in 2025, primarily due to a decrease in monthly service fees during the last quarter of 2024.
• The company voluntarily repaid $3.036 million in outstanding debt to KGPLA on November 24, 2025, terminating related loan and security agreements.
• Material weaknesses in internal control over financial reporting were identified as of December 31, 2025, and 2024.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative filing due to the significant reversal from net income to a substantial net loss, coupled with an 18% revenue decline and worsening working capital, despite some operational improvements and debt reduction.

Positives

• Bitcoin ATM transaction volume increased by 15% to 213,683 in 2025, indicating continued customer engagement with the core service.
• The average markup on Bitcoin sold through Athena Bitcoin ATMs increased from 22% in 2024 to 24% in 2025, potentially improving per-transaction profitability.
• Successfully repaid $3.036 million in outstanding debt to KGPLA on November 24, 2025, reducing interest-bearing debt and eliminating associated restrictive covenants.
• Launched the Athena Bitcoin Affiliates Program in June 2025, providing a turnkey solution for independent Bitcoin ATM operators to expand brand presence without significant capital expenditure.
• Successfully deployed its own proprietary ATM software platform, replacing Genesis Coin's software and resolving prior dependencies after terminating the relationship on September 12, 2024.

Negatives

• Reported a net loss of $6.034 million in 2025, a significant decline from the $10.284 million net income in 2024.
• Total revenues decreased by 18% to $234.597 million in 2025, primarily due to an 18% decrease in Athena Bitcoin ATM revenue and a 42% decrease in White-label Service revenue.
• Gross profit decreased by 35% to $24.838 million in 2025, and the gross profit percentage fell from 13% to 11%.
• Operating expenses increased by 27% to $23.821 million in 2025, largely due to a 56% increase in general and administrative expenses and a 15% increase in litigation expenses.
• Income from operations plummeted by 95% to $1.017 million in 2025.
• Recorded a $5.283 million loss on extinguishment of debt in 2025, related to the termination of agreements with Taproot Acquisition Enterprises, LLC.
• The number of active Athena Bitcoin ATMs decreased by 5% from 3,111 in 2024 to 2,953 in 2025.
• Median ATM transaction size decreased by 30% from $150 in 2024 to $105 in 2025, indicating smaller individual customer transactions.
• Working capital deficit worsened to $9.235 million in 2025 from $2.506 million in 2024.
• Accumulated deficit of $497 thousand in 2025, a reversal from accumulated income of $5.537 million in 2024.

Risks

• Revenue is heavily dependent on crypto transaction volumes and the volatile prices of crypto assets, which can materially harm results and investor confidence.
• Operating in a new, rapidly evolving crypto product market makes forecasting demand, volume, and performance difficult.
• Significant indebtedness of $21.3 million as of December 31, 2025, with restrictive covenants that limit flexibility and potential difficulty in raising additional capital.
• Cash and crypto assets face risks of theft or loss, especially from compromised private keys, with limited insurance coverage.
• Operational disruptions due to failures in ATMs, software, IT, or blockchain networks could reduce users and harm the brand.
• International operations, particularly in El Salvador, create risks from political or economic instability, enforcement issues, and restrictions on asset ownership.
• Weak global or regional economies and negative sentiment toward crypto could reduce demand for services.
• Inability to protect intellectual property or defend against infringement claims could disrupt operations.
• Regulatory uncertainty in the crypto industry is rapidly changing, with potential reclassification of assets as securities, forfeiture actions, or banking restrictions.
• Failure to secure required licenses or comply with AML, privacy, and other laws could halt operations or result in penalties.
• Government intervention could restrict or ban crypto use, limiting the ability to operate.
• Loss of key personnel or inability to attract talent could hurt performance.
• Employee or service provider errors or misconduct could damage financials and reputation.
• Potential conflicts of interest due to insiders' involvement in other crypto projects.
• Provisions in the company's charter, bylaws, and Nevada law may deter takeovers, affecting stock value.
• The company's stock lacks a trading market and may face volatility unrelated to performance.
• Founders and major shareholders hold significant control, influencing shareholder decisions.
• Future equity raises may dilute shareholders.
• The company's securities are 'Penny Stocks,' which may make them less desirable or accessible by investors.
• Material weaknesses in disclosure controls and procedures and internal control over financial reporting, which if not remediated, could result in material misstatements and failure to meet reporting obligations.

Future Outlook

Management believes the company is in the early stages of a new digital financial order system and anticipates that as crypto asset use cases expand and worldwide adoption increases, fluctuations in volume and price will decrease. The focus remains on prioritizing growth, especially in geographic areas where consumers have restricted access to the global financial system, including planned expansion in Latin America. The company expects sales and marketing expenses, and technology and development expenses to increase in the coming years to support expanding activities and potential commercialization of new products and services. Management also believes that the recent changes to El Salvador's Bitcoin Law, making usage voluntary and the government stepping back from Chivo Wallet, may open opportunities for private companies to fill service gaps, without negatively impacting existing operations.

Management Comments

• Management believes that our plans, intentions and expectations reflected in, or suggested by, the forward-looking statements are reasonable, but provides no assurance that these plans, intentions or expectations will be achieved.
• Management believes that Bitcoin, altcoins, blockchains and smart contracts are poised to transform the international financial order by providing the unbanked and billions of others in the world with a connection to the new global digital financial system.
• Management believes that the continued increase in crypto owners demonstrates the durability of the new digital global financial system, and is optimistic that as worldwide adoption continues, the variability of the price and the frequency of negative events will decrease.
• Management believes that the use of Bitcoin ATMs will continue to rise as the Bitcoin and crypto industry and its many interconnected service providers expand.
• Our mission is to connect the world's cash to the new global digital financial system.
• Management believes that our foremost competitive advantage is our many years of business experience combined with our insight into optimizing many interrelated factors and aspects of the crypto business, ultimately driving bottom-line profits.
• Management believes that site selection is a substantial factor in overall performance, and our methodology is a trade secret not easily uncovered.
• Management believes operational efficiency is in the same category of importance as site selection, including proprietary approaches to manage operations efficiently across crypto transactions, risk management, and cash handling spanning five countries.
• Management believes our branding gives us a competitive advantage with many store owners, as our brand has roots to the early years of Bitcoin and Bitcoin ATMs, standing out from larger, more centralized competitors.
• Management believes the industry is nascent and that worldwide tens of thousands of attractive locations remain untouched, and that the U.S. market limit for Bitcoin ATMs has not yet been reached and is expanding.
• Management believes the Consolidated Financial Statements as included in Part II of this Annual Report on Form 10-K fairly represent, in all material respects, the Company's financial condition, results of operations and cash flows as of and for the periods presented in accordance with generally accepted accounting principles in the United States, despite identified material weaknesses in internal control over financial reporting.

Industry Context

StockSavvy.ai notes that Athena Bitcoin Global operates within a dynamic and rapidly evolving cryptocurrency market, which saw global cryptocurrency owners increase by 12.4% in 2025 to 741 million. The global crypto ATM market is projected to grow significantly, from $191.130 million in 2025 to $1.20 billion in 2030, at a 44.54% CAGR. While the overall Bitcoin ATM network expanded globally by 3.8% in 2025, Athena's own ATM count decreased by 5%. The company's strategy to focus on growth in regions with low banking access, particularly Latin America, aligns with broader trends of crypto adoption in emerging markets. However, the significant price volatility of Bitcoin, as observed with swings from over $126,000 to $60,000 in late 2025 and early 2026, continues to pose a challenge for the industry and the company's revenue stability. The increasing regulatory scrutiny, exemplified by new laws in California, Connecticut, Minnesota, and Nebraska, and the proposed Crypto ATM Fraud Prevention Act, reflects a tightening environment that could impact all operators, including Athena. The company's move to proprietary software and its affiliate program are strategic responses to competitive pressures and the need for operational efficiency in a fragmented market.

Comparison to Industry Standards

• Athena Bitcoin Global's 2,953 active Bitcoin ATMs as of December 31, 2025, represent approximately 10% of the worldwide Bitcoin ATM market, which stood at 39.2 thousand machines. This positions Athena as a notable, but not dominant, player compared to larger networks like Bitcoin Depot Inc. (9,150 units) and Coinflip (5,679 units).
• The global ATM services market is projected to grow at a CAGR of 6.4% from $23.23 billion in 2025 to $24.71 billion in 2026. Athena's revenue decline of 18% in 2025 contrasts sharply with this positive industry growth, indicating underperformance relative to the broader ATM services market.
• The global crypto ATM market is projected to increase from $191.130 million in 2025 to $1.20 billion in 2030, with a 44.54% CAGR. Athena's decrease in ATM count and overall revenue suggests it is not fully capitalizing on this projected high growth within its specific niche.
• The company's average markup on Bitcoin sold of 24% in 2025 falls within the typical range of 13% to 28% mentioned in the filing, suggesting competitive pricing strategies are being maintained despite market pressures.
• The median ATM transaction size decreased by 30% to $105 in 2025, which could indicate a shift towards smaller, more frequent transactions or a decline in the average value of customer purchases, potentially impacting overall revenue per machine compared to industry averages if competitors maintain higher transaction values.

Management Changes

Corporate Governance

Legal Proceedings

• Arley Lozano-Jaramillo filed a complaint on October 9, 2023, alleging breach of contract, promissory estoppel, unjust enrichment, fraud, and conversion, seeking $1.4 million and 270 million shares of common stock (valued at $27 million). Trial is scheduled for March 21, 2026.
• Digital Access, LLC filed a complaint on June 21, 2024, alleging tortious interference, conversion, and trespass. A mutually acceptable settlement was reached, and the case was dismissed on March 25, 2025.
• Keon Jackson filed a class action complaint on August 20, 2024, alleging receipt of unwanted telemarketing text messages. Class certification was granted on June 18, 2025. A settlement terms sheet for $4.5 million was signed on December 22, 2025, pending court approval.
• S.M. filed a class action complaint on September 9, 2024, alleging negligence and Ohio Products Liability Act violations due to elder financial scams involving kiosks, seeking an undetermined amount (not exceeding $5 million). A motion to dismiss is pending.
• Karen Carew filed a class action complaint on November 25, 2024, alleging negligence and violations of New Jersey statutes related to elder financial scams. The case was remanded to State Court, and a motion to dismiss was denied in part.
• Girma Yilma filed a class action complaint on January 21, 2025, alleging negligence and Colorado consumer protection act violations related to elder financial scams. A confidential settlement agreement was reached in arbitration.
• Zamareeh Odoms sent an extrajudicial claim for $500 thousand on January 31, 2025, alleging lack of proper due diligence regarding an employee's conduct. The company assesses no liability.
• Diane Reynolds filed a class action complaint on February 6, 2025, alleging Maryland Safe Act violations, negligence, product liability, and consumer protection act violations related to elder financial scams. A motion to dismiss is pending.
• The State of Iowa initiated an ongoing investigation into crypto ATM companies, filing complaints against competitors on February 26, 2025, and requesting information from Athena. Iowa seeks civil penalties and restitution for defrauded victims.
• Rachael Gnadinger, Madeline McCausland, and Joanne Nebus-Horning filed a class action complaint on May 30, 2025, alleging negligence and New Jersey statutes violations related to elder financial scams, seeking an undetermined amount (not exceeding $5 million).
• The District of Columbia filed a complaint on September 8, 2025, alleging failure to disclose excessive fees and protect consumers, violating the CPPA and Financial Exploitation Act. A motion to dismiss is pending, with a hearing scheduled for March 17, 2026.
• AML Software, Inc. filed a complaint on September 23, 2025, alleging copyright infringement and misappropriation of proprietary Bitcoin kiosk software source code, seeking injunctive relief and damages. The company intends to vigorously defend itself.
• Chris Vaughan filed a putative nationwide class action complaint on November 6, 2025, alleging violations of the Florida Deceptive and Unfair Trade Practices Act and the Florida Financial Exploitation of Vulnerable Adults Act, related to excessive and undisclosed fees and unfair refund practices.

Related Party Transactions

• Repaid $3.036 million to KGPLA Holdings, LLC (an entity with controlling interest by Michael Komaransky, a principal shareholder and former director, and whose CIO is Huaxing Jason Lu, a current director) on November 24, 2025, for the Secured Convertible Debenture.
• Repaid $4.0 million principal on the Senior Secured Revolving Credit Promissory Note with KGPLA on March 28, 2024.
• Incurred cash logistics services of $6.537 million in 2025 and $5.156 million in 2024 with Move On Security LLC, an entity in which CEO Matias Goldenhrn has a 50% interest. Outstanding balance due to Move On Security, LLC was $112 thousand in 2025 and $246 thousand in 2024.
• Incurred ATM services of $4.955 million in 2025 and $3.858 million in 2024 with Move On Tech Service, LLC, an entity in which CEO Matias Goldenhrn has a 50% interest. Outstanding balance due to Move On Tech Service, LLC was $77 thousand in 2025 and $165 thousand in 2024.
• Carries a payables balance to Red Leaf Advisors (an entity in which former CEO Eric Gravengaard has a controlling interest) of $66 thousand in 2025 and $407 thousand in 2024 for previous crypto asset purchases. Disbursed $341 thousand to SDY Trust on September 5, 2025, related to a Turnover Order for funds belonging to Red Leaf Advisors.

Stakeholder Impact

• Shareholders face significant dilution risk from potential future equity raises and the existing concentration of ownership by founders and major shareholders, who can exert substantial influence.
• Shareholders are exposed to high stock price volatility, as the company's stock is a 'Penny Stock' with limited liquidity, and certain registered shares are subject to fixed-price sales, potentially capping market price appreciation.
• Customers may be impacted by transaction limits and fee caps imposed by new state regulations (e.g., California, Connecticut, Minnesota, Nebraska), and the company faces numerous class action lawsuits alleging consumer fraud and inadequate protection against scams.
• Employees and management are subject to performance-based bonuses, with $2.9 million accrued in 2025, but also face the challenges of operating in a rapidly evolving and highly scrutinized industry.
• The company's relationships with banking partners are critical, and the 'higher risk' perception of crypto businesses could lead to difficulties in maintaining banking access, impacting operations.
• The company's reputation and brand could be harmed by negative media characterizations, regulatory scrutiny, and ongoing litigation, potentially reducing user trust and demand for services.

Next Steps

• Onboard additional Bitcoin ATM operators in key markets throughout 2026 as part of the Athena Bitcoin Affiliates Program.
• Evaluate the progress of the Affiliates Program by metrics such as the number of affiliate Bitcoin ATMs deployed and incremental revenue generated.
• Remediate identified material weaknesses in internal control over financial reporting by hiring additional qualified accounting and financial reporting personnel, enhancing accounting processes and risk assessment, and designing, implementing, and monitoring respective controls.
• Continue to monitor and adapt to the evolving regulatory environment for cryptocurrencies and Bitcoin ATMs in the U.S. and internationally.
• Vigorously defend against ongoing legal proceedings, including class action lawsuits related to consumer fraud and alleged misappropriation of software.

Key Dates

Recommendation

The company reported a significant net loss of $6.034 million in 2025, a stark reversal from a $10.284 million net income in 2024, coupled with an 18% decline in total revenues and a 35% drop in gross profit. The worsening working capital deficit, substantial loss on debt extinguishment, and a decrease in the number of active Bitcoin ATMs indicate deteriorating financial health and operational challenges. Furthermore, the company faces numerous ongoing class action lawsuits and regulatory scrutiny, which could lead to significant financial penalties and reputational damage. Identified material weaknesses in internal controls add to the operational risk. While some strategic initiatives like the affiliate program and debt repayment are positive, they are overshadowed by the overall negative financial performance and heightened regulatory and legal risks. The stock's 'penny stock' status and fixed-price sales for certain registered shares also limit its investment appeal and liquidity.

Keywords

Bitcoin, Cryptocurrency, ATM, Crypto ATM, Blockchain, Financial Technology, SEC Filing, 10-K, Athena Bitcoin Global, Digital Assets, El Salvador, Money Services Business, Fintech, OTC Markets