By Lisa Thompson
OTC:CLPMF
READ THE FULL CLPMF RESEARCH REPORT
Q3 was a busy quarter for Clip Money (OTC:CLPMF) as it both added customers via its new Green Dot rollout in stores and added Claire’s as a new customer. For Q3, Clip Money reported growth of 175% to $1.4 million in revenues and the addition of 1,110 new user locations. The two events were unrelated, as Claire’s signed up because it was acquired by Ames Watson, the controlling investor in Lids, who is one of Clip’s top five customers. Clip on-boarded all 780 Claire’s locations in a matter of days and in less than three weeks from the initial meeting. The stores are using all three of Clip Money’s deposit channels—ClipDrop, ClipATM, and ClipCenter (through the Green Dot network), as well as its change order delivery product, ClipChange. The stores were using local branch banking, so the switch over had to be rapid, as under new ownership, all of the stores’ banking accounts had to be changed. Moving to Clip Money’s system allowed accounts to be centralized, reduced, and now provides much more transparency as to where and how much cash is in the system. The switch also made life easier for the store employees. Many stores have only one or two employees working at a time, so leaving the mall and going to a branch had to be done mostly after hours and in the dark. Now most of the stores can just use a Dropbox installed in the mall, making it easier and safer.
ClipChange is catching on, and it recorded 19% sequential order growth in Q3 2025 compared to Q2 2025.
In addition, “ClipCenter” was launched, enabling deposits through Green Dot at over 4,000 stores in the US. This brings the number of locations available to customers to 8,100. We still expect a second major chain using Green Dot to be added to Clip Money’s network next year. This chain will serve more rural areas and is located in strip malls, diversifying Clip Money access points.
The company ended the quarter with 520 ClipDrops installed compared to 409 last year, adding a net 111 boxes. Some low usage boxes were removed as Green Dot locations were added as potential substitutes. When you add in NCR’s ATMs and almost 4,000 stores in the Green Dot network, you are at 8,100 locations, far exceeding the reach of any bank. 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 expects local and regional banks will be future partners as they try to compete with the large nationals with many more branches. Clip Money 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.
Going forward, we expect gross margins to be positive and improving from now on as economics continue to improve from higher prices charged to new customers, combined with economies of scale. By year end, Clip Money should be generating about $600,000 a month in recurring revenue, and with new customers coming on board and old customers taking new services, it should be able to easily double revenue next year. With expanding margins and increased revenue, we expect that Clip Money should reach operating breakeven by the end of 2026, if not sooner.
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