BM Technologies, Inc. (BMTX), formerly known as BankMobile, reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, BMTX generated operating revenues of $14.1 million, a slight decrease of 2% from $14.4 million in the same period of 2023. However, for the nine months ended September 30, 2024, operating revenues increased by 6% to $42.8 million, up from $40.4 million year-over-year. Notably, interchange and card revenue saw significant growth, rising 30% to $3.0 million for the third quarter and 29% to $8.7 million for the nine months.

Total operating expenses for the third quarter decreased to $18.2 million from $18.8 million in the prior year, while for the nine months, expenses fell by 9% to $50.9 million from $56.2 million. This reduction in expenses was attributed to lower technology costs and a decrease in salaries and employee benefits, despite an increase in provision for operating losses due to fraud-related issues.

Despite the decrease in operating expenses, BMTX reported a net loss of $5.0 million for the third quarter, an increase from a loss of $4.0 million in the same period last year. For the nine months, the net loss improved to $9.1 million from $13.4 million, reflecting a 32% reduction in losses. Basic loss per share for the third quarter was $(0.42), compared to $(0.34) in 2023, while for the nine months, it improved to $(0.77) from $(1.16).

The company’s cash and cash equivalents decreased to $11.2 million as of September 30, 2024, down from $14.3 million at the end of 2023. However, net cash provided by operating activities showed a positive shift, totaling $1.8 million compared to a cash outflow of $5.5 million in the same period last year.

Strategically, BMTX has initiated a Profit Enhancement Plan, resulting in a workforce reduction of approximately nine employees in the nine months ended September 30, 2024, a significant decrease from 60 employees in the same period of 2023. Additionally, the company entered into a Merger Agreement on October 24, 2024, which will convert each share of common stock into $5.00 in cash, subject to shareholder approval and regulatory conditions.

Overall, while BMTX experienced a decline in quarterly revenues and an increase in net loss, it showed improvement in year-to-date performance and operational efficiency, alongside strategic moves towards a merger that could reshape its future.