GBOX - GreenBox POS stock hits 3-month high as record processing volume drives strong results

GreenBox POS ( NASDAQ: GBOX ) stock more than doubled in value, touching a 3-month high, on Tuesday after the fintech firm reported strong Q2 results .

The company also appointed J. Drew Byelick as CFO , effectively immediately.

GBOX reported Q2 EPS of $0.24 vs. $0 in Q2 2021 due to a decrease in the change in fair value of the derivative liability.

Revenue rose 9.4% Y/Y to $7M, driven by higher processing volume but offset by higher fees to gateways and ISOs.

GBOX saw record processing volume of over $1B in Q2, up 40% sequentially and and more than double Q2 2021.

Acquiring business, including the Sky Financial portfolio, processing volume was $769M, outpacing GBOX's estimates by over 38%. FX and international payments business saw over $184M in volume.

"We expect acquiring line of business to continue exceeding processing volume targets through the balance of the year," said COO Min Wei in a post-earnings call .

Wei said the company expects adj. pro forma EBITDA to breakeven in Q3 vs. -$4.9M in Q2, while Q4 adj. pro forma EBITDA is projected to be ~$3M.

"In terms of operating cash flow, we expect to turn positive starting in Q3," he added.

Over 75M GBOX shares changed hands as of xx pm ET vs. average trading volume of ~0.6M.

Shares of GBOX fell 40.9% YTD and 66% in the last 1 year.

GBOX is at high risk of performing badly due to decelerating momentum and inferior profitability vs. other IT stocks, according to SA Quant .

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