Should You Hold or Fold EXOD Stock After a 38.3% Decline in a Month

Exodus Movement EXOD shares have lost 38.3% in the past month, underperforming the Zacks Internet – Software industry’s decline of 3%.

EXOD One Month Performance Chart

Since the company has a sizable asset in the form of liquid and cryptocurrencies, it is valid to use the P/B valuation metric to justify its valuation. From a valuation standpoint, Exodus Movement trades at a trailing 12-month price-to-book ratio of 1.41X, lower than the industry’s average of 5.81X.

EXOD Trailing Twelve Month (P/B) Valuation Chart

Given this decline in the stock price and favorable valuation, investors should ask: Is it the right time to buy, hold or sell the stock at present? Let’s discuss the fundamentals that will bring clarity about its prospects.

EXOD Benefits From Rise in Asset Price and XO Swaps

Exodus Movement is growing fast as a self-custodial wallet and Web3 financial services solution provider. Exodus Movement revenues climbed 51% year over year on the back of rising digital asset prices throughout 2025. The company also saw 82% year-over-year growth in swap volume in the third quarter of 2025, of which 28% of the volume was contributed by B2B swaps.

Contribution from rising trading activity, user engagement and strong partner traction has been a major tailwind for Exodus Movement. EXOD’s partner strategy, which allows its partners to access multi-chain liquidity and routing without having to build their own infrastructure, is rapidly growing. EXOD added 16 new partners in the third quarter of 2025, of which 10 are already paying.

EXOD’s entrance into the high-growth Stablecoin payments market, with the Grateful acquisition, is another tailwind. EXOD can now provide instant merchant settlement, charge lower fees per transaction and is set to enter into the Argentinian and Uruguayan markets. Alongside these factors, EXOD now has a pool of $315 million worth of digital and liquid assets, which makes its balance sheet robust as it has no debt.

With more than $3 trillion market cap of cryptocurrency, $26 trillion in stablecoin transaction volume, EXOD is expected to benefit from this massive total addressable market. However, the company also faces some challenges.

Key Challenges Faced by Exodus Movement Stock

Softened user engagement was a headwind in the third quarter of 2025. Although Quarterly Funded Users grew 20% year over year to reach 1.8 million, Monthly Active Users have fallen significantly from 2.3 million in the fourth quarter of 2024 to just 1.5 million in the third quarter of 2025.

Exodus Movement’s heavy dependence on third-party API providers for service dispersal and on swap aggregation activities to generate revenues raises structural and concentration risk. Exodus also faces competitive pressure from exchanges that specialize in digital assets and offer self-custodial wallet solutions like Coinbase COIN.

Coinbase provides self-custody through Coinbase Wallet and allows in-app swaps, fiat on/off ramps and stablecoin payments. Other FinTech companies with substantial infrastructure, like Robinhood HOOD and PayPal PYPL, potentially compete with EXOD as they provide solutions for crypto trading, institutional wallet solutions and cross-border payments.

PayPal has introduced agentic commerce, PayPal World, Tap to Pay, PYUSD stablecoin and Pay with Crypto to stay ahead of its competitors. Robinhood is also expanding its crypto presence while keeping custody of users’ cryptocurrencies with it. Recently, it acquired global cryptocurrency exchange Bitstamp Ltd.

These factors, along with the crypto volatility, make EXOD’s earnings highly volatile. The Zacks Consensus Estimate for EXOD’s 2025 earnings shows a modest year-over-year growth of 3.5%.

Conclusion: Hold EXOD Stock Now

Reliance on third-party APIs, rising competition and earnings volatility are concerns. However, Exodus Movement’s strong asset base, attractive P/B valuation and growing swap and payments ecosystem provide solid long-term potential. Given these factors, we suggest investors retain this Zacks Rank #3 (Hold) stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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