Mogo Q2 2025 presentation: Wealth revenue surges 48% as crypto strategy expands

Introduction & Market Context

Mogo Inc. (NASDAQ:MOGO) released its Q2 2025 earnings presentation on August 7, highlighting strong growth in key business segments and outlining strategic initiatives. The fintech company, which closed at $1.75 on August 14, down 1.69% for the day, has seen its stock gain approximately 37% over the past six months despite remaining well below its 52-week high of $3.83.

The presentation emphasized Mogo’s transition toward higher-growth areas like wealth management and payments processing while expanding its cryptocurrency strategy. The company’s book value of $3.41 per share significantly exceeds its current market price, suggesting potential undervaluation according to management’s perspective.

Quarterly Performance Highlights

Mogo reported positive net income of $13.5 million for Q2 2025, with particularly strong performance in its wealth and payments segments. Wealth revenue increased 48% year-over-year to $3.6 million, while payments revenue grew 23% to $2.6 million compared to Q2 2024.

As shown in the following chart detailing revenue growth across segments:

The company achieved an adjusted EBITDA of $1.9 million, representing an 11.4% margin and an increase from $1.4 million in the same quarter last year. Operating cash flow remained positive at $0.9 million, up from $0.5 million in Q2 2024, demonstrating improved operational efficiency.

The following image illustrates this financial improvement:

Assets under management (AUM) in Mogo’s wealth segment reached $462 million, an all-time high representing 18% year-over-year growth. Meanwhile, Carta, the company’s payments processing business, handled $2.8 billion in volume during the quarter, with European payments volume growing 15% year-over-year after exiting the Canadian market.

The growth trajectory in European payments is illustrated here:

Strategic Initiatives

Mogo outlined several strategic initiatives aimed at positioning the company for future growth. A key focus is the planned expansion into cryptocurrency trading, which would make Mogo one of only two platforms in Canada offering regulated access to both equities and crypto within a single account.

This strategic positioning is visualized in the following diagram:

The company also announced plans to launch a completely rebuilt platform in Q4 2025, designed around behavioral economics principles rather than engagement metrics. This platform aims to promote long-term investment discipline and will eventually incorporate an AI guidance layer in 2026.

The platform evolution roadmap is outlined below:

Another significant strategic focus is Mogo’s Bitcoin treasury strategy, which includes a $50 million authorization for Bitcoin purchases. The company views this as part of a "strategic compounding loop" where Bitcoin integration across products, platform growth, and treasury expansion reinforce each other.

Financial Analysis

Mogo’s balance sheet shows $50.1 million in cash, marketable securities, and investments, representing approximately $2.10 per share. Notably, 78% of the company’s investment portfolio is allocated to crypto-related assets, reflecting management’s conviction in digital assets.

The composition of Mogo’s balance sheet assets is illustrated here:

The company highlighted that its book value of approximately $82 million ($3.41 per share) exceeds its market capitalization of around $55 million, suggesting potential undervaluation according to management’s perspective.

For the full fiscal year 2025, Mogo expects subscription and services revenue to grow at a mid-to-high single-digit rate. More specifically, wealth revenue is projected to increase by 20-25%, while payments revenue is expected to grow in the mid-to-high teens percentages. However, interest revenue from the lending business is anticipated to decrease by 8-10% due to a more cautious approach amid economic uncertainty.

Forward-Looking Statements

Looking ahead, Mogo expects adjusted EBITDA for fiscal year 2025 to be in the range of $5 to $6 million. The company is positioning its upcoming platform rebuild as a significant catalyst, with CEO Dave Feller emphasizing that "the next great investment platform won’t be the ones that monetize attention. They’ll be the ones that help people perform."

The company’s wealth segment continues to show strong momentum, with management highlighting that their top 10 members are tracking toward over $2 billion in combined assets. This growth trajectory in wealth management is visualized below:

Mogo’s expansion in Europe’s payments market represents another growth avenue, with the company noting that it completed its Oracle Cloud Infrastructure migration in Q1 2025, improving scalability and cost profile. Management indicated they are exploring stablecoin settlement infrastructure to modernize payment rails in the European market, which they value at over $1 trillion.

While the company maintains a positive outlook, investors should note potential challenges including regulatory hurdles in crypto trading, market volatility in cryptocurrencies, increased competition from established investment platforms, and economic uncertainties in Europe that could affect payment volumes.

Full presentation:

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