Company: IMXI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001683695-25-000063
Chunk: 111

Company: International Money Express, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 111
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 million and $29.8 million, respectively, of prepaid wires denominated in foreign currencies, primarily Mexican pesos and Guatemalan quetzales.

We are also exposed to changes in currency rates as a result of our investments in foreign operations and revenues generated in currencies other than the U.S. dollar. Revenues and profits generated by international operations will increase or decrease because of changes in foreign currency exchange rates. This foreign currency risk is related primarily to our operations in our foreign subsidiaries. Revenues from our foreign subsidiaries represents approximately 3% of our consolidated revenues for the three months ended March 31, 2025. Therefore, a 10% increase or decrease in these currency rates against the U.S. Dollar would result in a de minimis change to our overall operating results.

The spot and average exchange rates for the currencies in which we operate to U.S. dollar are as follows:

20252024Spot(1)Average(2)Spot(1)Average(2)U.S. dollar/Mexico Peso20.42 20.41 20.75 16.96 U.S. dollar/Guatemala Quetzal7.69 7.69 7.68 7.80 U.S. dollar/Canadian Dollar1.43 1.44 1.44 1.35 U.S. dollar/Dominican Peso62.69 62.07 61.10 58.77 U.S. dollar/Euro0.92 0.95 0.96 0.92 U.S. dollar/British Pound Sterling(3)0.77 0.79 0.80 — 

(1)Spot exchange rates are as of March 31, 2025 and December 31, 2024.

(2)Average exchange rates are for the three months ended March 31, 2025 and 2024.

(3)We commenced operations in the United Kingdom in connection with an acquisition of a money service entity in July 2024 and, therefore, no information is provided for the three months ended March 31, 2024.

Long-term sustained appreciation of the Mexican peso or Guatemalan quetzal as compared to the U.S. dollar could affect our revenues and profit margins.

Interest Rate Risk

As discussed above, interest under the Second A&R Credit Agreement is variable based on certain benchmark rates, including SOFR, EURIBOR and SONIA. Because interest