Athena Bitcoin Global (OTCID: ABIT) filed its Q3 2025 10-Q on November 13, 2025, disclosing a quarter defined by shrinking revenue, a net loss, and aggressive debt restructuring. The publicly traded Bitcoin ATM operator — one of two in the industry filing with the SEC, alongside Bitcoin Depot (NASDAQ: BTM) — posted $57.4 million in Q3 revenue, down 17% from $69.4 million a year earlier, while swinging to a net loss of $2.5 million from net income of $2.3 million in Q3 2024.
The filing reveals a company at an inflection point: Athena is growing its ATM count and transaction volume while simultaneously battling declining per-transaction economics, mounting legal costs, and the aftermath of a $9 million debt settlement that triggered a $4.6 million loss on extinguishment.
Revenue and Profitability: The Headline Numbers
For the nine months ended September 30, 2025, Athena reported total revenue of $192.9 million, down 13% from $221.7 million in the same period of 2024. The decline accelerated in Q3, with quarterly revenue dropping 17% year-over-year.
The company attributes the revenue decline to market uncertainty, citing geopolitical disruption, tariff fears, and U.S. employment concerns that depressed per-transaction prices. Gross profit fell even harder — down 27% to $23.1 million for the nine-month period and down 11% to $7.2 million in Q3 alone.
Nine-Month P&L Summary (in thousands)
Revenue: $192,852 (2025) vs $221,737 (2024) — down 13%
Gross Profit: $23,122 (2025) vs $31,629 (2024) — down 27%
Income from Operations: $9,647 (2025) vs $21,178 (2024) — down 54%
Net Income: $1,555 (2025) vs $12,207 (2024) — down 87%
Adjusted EBITDA: $17,210 (2025) vs $25,016 (2024) — down 31%
Operating income fell 54% to $9.6 million for the first nine months as expenses rose. General and administrative costs jumped 32% to $9.7 million — driven by additional headcount, legal fees from SEC filings and litigation, and higher insurance costs. Technology and development spending increased 42% to $1.3 million as the company expanded its engineering teams.
The nine-month net income figure of $1.6 million masks a deteriorating trajectory: Q3 alone posted a $2.5 million net loss, compared to $2.3 million net income in Q3 2024. The swing was largely driven by a one-time $4.6 million loss on debt extinguishment from the Taproot settlement.
Transaction Metrics: More Transactions, Smaller Tickets
The operational story underneath the revenue decline is nuanced. Athena processed 170,309 Bitcoin transactions in the first nine months of 2025, up 33% from 128,056 in the same period of 2024. But the median transaction size dropped from $180 to $120 — a 33% decline that more than offset the volume gains.
The average markup held steady at 23% for both periods — Athena hasn't tried to offset lower transaction sizes with higher fees. Revenue per ATM is falling, but the company is serving significantly more customers at smaller dollar amounts. This pattern suggests a shift toward more casual, lower-dollar users rather than the high-value transactions that have drawn regulatory scrutiny across the industry.
The OTC desk (Athena Plus) showed an even more dramatic shift: median OTC transaction size dropped 67% from $48,600 to $16,000, while transaction count surged 292% from 39 to 153.
The Taproot Settlement: $9 Million to Clean the Balance Sheet
The most consequential event in Q3 was Athena's September 4, 2025 settlement with Taproot Acquisition Enterprises — the equipment financing entity that had maintained liens on Athena's ATMs and source code. The deal replaced a web of equipment financing agreements, revenue-sharing arrangements, and service contracts with a single $9.0 million payment: $3.0 million upfront, plus $115,400 weekly over 52 weeks.
What Athena Got for $9 Million:
- Full ownership of all ATM equipment and source code
- Release of all liens and security interests on company assets
- Termination of revenue-sharing obligations (0.8% of Bitcoin ATM revenue)
- Three-year non-compete from Taproot parties
- Elimination of all prior equipment financing agreements
The accounting impact was severe: Athena booked a $4.6 million loss on debt extinguishment plus $681,000 in written-off unamortized imputed interest. These charges are the primary reason Q3 swung to a net loss. However, the settlement eliminates ongoing revenue-sharing fees and equipment financing obligations, which should reduce recurring costs going forward.
As of September 30, 2025, Athena still owed $5.5 million of the Taproot settlement balance — the largest remaining equipment-related liability on its books.
Liquidity: $17.4 Million Cash, But a Working Capital Deficit
Athena held $17.4 million in cash and equivalents as of September 30, 2025, including $2.8 million in restricted cash held for customers (advances from the Government of El Salvador). That's down slightly from $17.6 million at year-end 2024.
The company carries a working capital deficit of $5.9 million, up from $2.5 million at year-end — largely due to $10.8 million in current operating lease liabilities for its ATM locations. Total liabilities stood at $54.3 million against total assets of $77.2 million, leaving stockholders' equity of $22.9 million.
Balance Sheet Snapshot (September 30, 2025)
Total Assets: $77.2M
Total Liabilities: $54.3M (current: $30.7M, long-term: $23.6M)
Stockholders' Equity: $22.9M
Cash & Equivalents: $17.4M (incl. $2.8M restricted)
Working Capital Deficit: -$5.9M
Cash from operations dropped sharply: $7.7 million for the first nine months of 2025, down from $18.4 million in the same period of 2024. Athena spent $6.7 million on financing activities — primarily paying down equipment notes — and $1.1 million on capital expenditures. The company's cash obligations for the remainder of 2025 total approximately $16.6 million, with $37.7 million due through 2029.
KGPLA Debt Repayment and the Related-Party Web
On November 24, 2025, Athena repaid the $3 million KGPLA convertible debenture — a related-party obligation dating back to January 2020. KGPLA Holdings is controlled by Mike Komaransky, a former Athena director and principal shareholder. The debenture carried 8% annual interest and was convertible at $0.012 per share.
This repayment, disclosed in a separate Form 8-K filing, eliminates the last major related-party debt obligation and the restrictive covenants that came with it — including restrictions on additional debt, asset liens, and dividend payments. The company funded the repayment from operating cash flow.
ATM Network: Growth Amid Revenue Decline
Athena grew its ATM fleet from 3,111 machines at year-end 2024 to 3,225 as of September 30, 2025 — a 4% increase. The network spans 34 U.S. states plus operations in El Salvador (18 ATMs), Argentina (6), Colombia (15), and Mexico (2), making Athena one of the few Bitcoin ATM operators with a meaningful international footprint.
ATM Network by Region (September 30, 2025)
Notably, nearly all U.S. machines are one-way (buy only), while all 41 international machines support two-way transactions. The company also launched its Affiliates Program in June 2025, offering independent Bitcoin ATM operators access to Athena's software platform, compliance infrastructure, and cash management services in exchange for revenue-sharing or licensing fees.
Revenue by Segment and Geography
Bitcoin ATM transactions remain the dominant revenue source at $188.2 million for the nine-month period (97.6% of total). Athena Plus (OTC) contributed $3.9 million, while Athena Pay, Affiliates, and ancillary revenue added $844,000.
Geographically, U.S. operations generated 96.6% of revenue ($186.3 million), with El Salvador contributing $6.4 million and Argentina/Colombia/Mexico adding just $211,000. El Salvador revenue remained flat year-over-year despite the repeal of Bitcoin's legal tender status in January 2025 — the company says demand is driven by voluntary consumer usage rather than mandatory acceptance.
Legal Exposure: Five Active Lawsuits and Counting
The 10-Q discloses a mounting legal docket that adds material uncertainty to Athena's financial outlook:
Active Litigation Timeline
The company also disclosed it was among 14 Bitcoin ATM operators subpoenaed by the Iowa Attorney General as part of a broader industry investigation. This is the same investigation that led to lawsuits against Bitcoin Depot and CoinFlip in October 2025.
Unquantified Risk: The 10-Q does not disclose any legal reserves or estimated liabilities for any of these lawsuits. All are described as in early stages with outcomes that "cannot be predicted." The DC AG action alone alleges 93% of transactions on Athena's DC machines are products of fraud — if that theory prevails, the exposure could be substantial.
Material Weaknesses: Internal Controls Still Broken
Athena disclosed material weaknesses in internal controls over financial reporting as of December 31, 2024. These weaknesses — related to the absence of formalized risk assessment, control monitoring, and change management systems — remained unremediated as of September 30, 2025.
The company says it needs additional qualified accounting personnel and enhanced financial reporting processes to fix the issues. Until remediated, these weaknesses mean Athena's financial statements carry higher risk of material misstatement. Management states it believes the quarterly financial statements are nonetheless accurate.
The Stock: $0.015 Per Share, 4.1 Billion Shares Outstanding
Athena trades on the OTCID market under the symbol ABIT at $0.015 per share as of November 14, 2025. With 4,095,009,545 shares outstanding, the company's market capitalization is approximately $61.4 million.
The filing also relates to a prospectus supplement for 473.9 million shares of common stock registered under a Form S-1. Basic earnings (loss) per share for Q3 2025 was -$0.0006, compared to $0.0006 in Q3 2024.
What the Numbers Tell Us
Athena's Q3 filing presents a company navigating multiple headwinds simultaneously:
The Good:
- Transaction count up 33% — the network is serving more customers
- ATM network grew 4% to 3,225 machines
- Taproot settlement eliminates complex debt structure and revenue-sharing obligations
- KGPLA debenture repaid — no more related-party debt covenants
- Affiliates Program launched — a new, capital-light revenue stream
The Bad:
- Revenue declining despite transaction growth — smaller tickets eroding top line
- Net income down 87% for the nine-month period; Q3 was a net loss
- G&A costs surging (+32%) driven by legal, compliance, and public company overhead
- Five active lawsuits with no reserves disclosed
- Material weaknesses in internal controls remain unfixed for over 9 months
- Working capital deficit widening from -$2.5M to -$5.9M
As one of only two publicly traded Bitcoin ATM operators — alongside Bitcoin Depot (NASDAQ: BTM) — Athena's SEC filings offer a rare window into an industry that otherwise operates behind closed doors. What the numbers show is an operator generating meaningful revenue — nearly $200 million annualized — but struggling to convert that into sustainable profitability as legal costs mount and transaction economics shift toward lower-value, higher-volume usage.
The company faces approximately $54 million in total cash obligations over the next four years, must resolve multiple lawsuits without disclosed reserves, and needs to fix long-standing internal control weaknesses — all while operating on a $5.9 million working capital deficit. The Taproot and KGPLA debt cleanup removes complexity from the balance sheet, but the underlying revenue trend and legal exposure remain unresolved.
---Source: Athena Bitcoin Global Form 424B3 (Prospectus Supplement No. 2), filed November 17, 2025. Includes Form 8-K (September 10, 2025) and Form 10-Q for the quarter ended September 30, 2025. All figures from SEC filings. See our Athena Bitcoin operator profile for current trust rating and full regulatory history.