By Lisa Thompson
READ THE FULL CLPMF RESEARCH REPORT
Clip Money (OTC:CLPMF) continues its march to profitability, reporting growth of 225% in Q1 2025 to $973,000, ahead of projections. Growth was driven by a 153% increase in new deposit users and a 10% increase in average monthly deposit revenues per user. New product revenue was 22% of total revenue in Q1 2025 versus 9% in last year’s quarter. Included in total revenue was $37,500 of $250,000 paid by Green Dot for integration with its systems. Clip Money expects the implementation to be completed and the remaining revenues of $212,500 for this to be booked in Q2 2025. This was not included in our forecasts. As a result, we are raising our Q2 and full-year revenue estimates by $200,000. This bumps up the 2025 growth rate to 195%, yielding revenues of $7.0 million. Despite this growth, the stock trades at only 3.5 times enterprise value to 2025 estimated sales.
The company added 29 new ClipDrop deposit locations in Q1 at shopping malls and signed 401 new, active depositing users, which included new retailer customers: Pop Mart, Squishable, Spring Step Shoes, and Go. The company ended the quarter with 473 ClipDrops installed compared to 444 at the end of the year. However, when you add in the 3,500 ATMs, the total locations are now about 4,000. When Green Dot comes online, that will rise to 8,000 locations, making Clip Money services more compelling and accessible to many more customers. Green Dot has 95,000 outlets; the final number of outlets added will be far more than 4,000, but not the entire 95,000. Management still expects to sign a bank or two this year, as it is an inexpensive way to serve business customers without adding physical locations. With bank deals, Clip Money expects to earn transaction fees, monthly access fees, and an initial integration fee as it did with Green Dot.
Q1 should be the last quarter with negative gross margins, as subsequent quarters should be higher than $1.1 million in revenues and economics continue to improve from higher prices charged to new customers combined with economies of scale. With expanding margins and increased revenue, we expect that Clip Money should reach cash flow breakeven by the beginning of 2026, if not sooner.
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