Earnings call transcript: Mogo Q2 2025 sees 48% wealth revenue growth

Mogo Inc. reported strong financial results for the second quarter of 2025, showcasing significant growth in its wealth and payments segments. The company also made strides in product development and operational efficiency. The stock, which according to InvestingPro analysis is currently undervalued, closed at $1.72, up 4.88% from the previous session. This follows an impressive 37% gain over the past six months, though the stock remains well below its 52-week high of $3.83.

Key Takeaways

• Wealth revenue increased by 48% year-over-year.
• Payments revenue rose by 23%.
• The company achieved a positive cash flow.
• Mogo is developing a unified AI-native platform, set to launch in Q4 2025.
• The company is focusing on the European payments market.

Company Performance

Mogo’s Q2 2025 performance was marked by robust growth in key revenue segments. Wealth revenue surged 48% compared to the previous year, while payments revenue saw a 23% increase. InvestingPro data shows the company maintains a healthy current ratio of 3.94, indicating strong short-term liquidity. The company continued to focus on long-term investment strategies, targeting disciplined investors. This approach aligns with Mogo’s strategic positioning against competitors like Wealthsimple.

Financial Highlights

• Net income: $13.5 million
• Adjusted EBITDA margin: 11.4%
• Book value: $81.6 million ($3.41 per share)
• Cash, marketable securities, and investments: Over $50 million

Outlook & Guidance

Looking ahead, Mogo plans to launch its AI-native platform in Q4 2025, integrating crypto and equity trading within a single regulated account. The company is also exploring regulatory approval for crypto trading, anticipating a six-month timeline for full compliance. Additionally, Mogo intends to continue its Bitcoin treasury strategy, reflecting its commitment to innovation in digital finance. For deeper insights into Mogo’s financial health and growth potential, InvestingPro subscribers can access 11 additional ProTips and comprehensive financial metrics in the Pro Research Report.

Executive Commentary

CEO Dave Feller emphasized the company’s focus on long-term investment strategies, stating, "The next great investment platform won’t be the ones that monetize attention. They’ll be the ones that help people perform." He further highlighted Mogo’s unique approach: "Our members aren’t optimizing for activity. They’re optimizing for discipline."

Risks and Challenges

• Regulatory hurdles in crypto trading could delay new product launches.
• Market volatility in cryptocurrencies may impact revenue stability.
• Increased competition from established investment platforms could challenge market share.
• Economic uncertainties in Europe may affect payment volumes.
• Potential technological challenges in launching the new AI-native platform.

Q&A

During the earnings call, analysts inquired about Mogo’s Bitcoin balance sheet strategy and its openness to mergers and acquisitions. The company confirmed its disciplined growth strategy and detailed its approach to expanding the lending business.

Mogo’s strategic initiatives and financial performance in Q2 2025 highlight its commitment to innovation and market expansion, positioning it as a key player in the evolving financial technology landscape.

Full transcript - Mogo Inc (MOGO) Q2 2025:

Conference Operator: afternoon, ladies and gentlemen, and welcome to the Mogo Second Quarter twenty twenty five Financial Results Conference Call. At this time, all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on Thursday, 08/07/2025. I would now like to turn the conference over to Craig Armitage, Investor Relations.

Please go ahead.

Craig Armitage, Investor Relations, Mogo: Thank you, and good afternoon, everyone. Just a few quick notes before we get started. Today’s call will contain forward looking statements that are based on current assumptions and subject to risks and uncertainties that could cause actual results to differ materially from those projected. Company undertakes no obligation to update these statements except as required by law. Information about the risks and uncertainties are included in Mogo’s Q2 filings as well as periodic filings with regulators in Canada and The U.

S, which you can find on SEDAR plus EDGAR and you can also access via the Mogo Investor Relations website. Lastly, today’s session will include several adjusted financial measures or non IFRS measures. Please consider these as a supplement to and not as a substitute for the IFRS measures. You’ll see that we’ve included reconciliations to those in the press release and in the investor deck that accompanies the webcast. With that, I’ll turn it over

Dave Feller, CEO, Mogo: to Dave Feller. Go ahead, Dave. Thanks, Greg. Thanks everyone for joining. Q2 is a strong quarter across the board, profitable, high margin and structurally aligned with our long term vision.

We delivered net income of 13,500,000.0 wealth revenue grew 48% year over year payments was up 23% and adjusted EBITDA margin expanded 11.4%. We were also cash flow positive. Book value now stands at 81,600,000.0 or $3.41 per share cash marketable securities investments total over 50,000,000. We expanded our Bitcoin treasury strategy. Well, AUN hit an all time high of $462,000,000.

And we began a regulatory process to offer crypto trading positioning us to be one of only two companies in Canada to be able to offer both crypto and equities in one regulated experience. We also saw continued strength in European payments with card volume up 15% year over year in Europe, excluding the exited Canadian business. One of the most important parts of our long term architecture is the way we’re building value across both product and capital. What we call our dual compounding strategy. On the capital side, we began our Bitcoin treasury strategy in 2024.

In Q2, we deployed a $1,000,000 into Bitcoin ETF. And post quarter, we added another 1,400,000.0 funded by proceeds from our monetization. That monetization was close to $14,000,000 a real world example of how capital appreciation is now a live part of our compounding engine. At the same time, we’re working on embedding Bitcoin into our product stack across wealth lending and payments, making it not just a reserve asset, but part of how the system grows and self reinforces. But sets this business apart is the behavioral foundation we’ve built it on.

Our members aren’t optimizing for activity. They’re optimizing for discipline and we’re seeing that reflected in outcomes. Our top 10 members are now tracking towards over 2,000,000,000 in long term wealth outcomes. That’s not because of stock picking. It’s a result of contributing consistently holding over time and ignoring noise.

On the business side, our wealth AUM reached $462,000,000 up 18% year over year. And again, wealth revenue was up 48%. Importantly, we’re seeing a meaningful ARPU shift. While we’re not spending on marketing today, new users are coming in at $20 a month versus $10 a month for our legacy base. That shift alone is driving strong revenue growth and it gives us confidence heading into Q4 platform launch and Q1 twenty twenty six marketing ramp.

We’re now deep into building our new unified AI native platform for long term investors. This isn’t just a redesign. It’s a full rebuild. And from day one, we’ve been using AI to build it from product strategy to copy to UX to code with tools like cursor at the core of our development process. Every part of this platform is being constructed to reinforce behavioral discipline, not engagement.

Most platforms today are optimized for trading activity and usage, because that’s how they monetize. Ours is different. We’re a subscription based model. We don’t need users to trade. We just need them to hold.

And that alignment gives us room to build the right thing. As Warren Buffett said, the most important quality for an investor is temperament, not intellect. We expect to launch V1 in this platform in Q4. Real time AI integration will begin rolling out in phases post launch once the behavioral foundation is in place. In July, we began the formal regulatory process to enable crypto trading alongside equities.

If approved, Mogo would become one of only two companies in Canada authorized to offer both in a single regulated account. To clarify, this is not about encouraging crypto speculation. We’re launching this to drive. We’re not launching it to drive short term activity or fee trading behavior. The model most platforms rely on our approach is consistent with everything we’ve built behavioral discipline, long term investing and alignment with our members outcomes.

Just as we’ve done with equities will bring crypto into the experience in a way that reinforces temperament, not undermine it. Our flat subscription model means we don’t need members to trade. Instead, we help them calibrate exposure thoughtfully and hold with conviction, not chase volatility. This is buffet mode applied to crypto. And it’s why we believe this will be a structurally different kind of crypto offering.

Platforms like Robin Hood and Wealthsimple of scaled rapidly by optimizing for engagement and trading activity. But activity doesn’t guarantee outcomes and over time outcomes are what matter. We believe the shift is already underway. We’re not trying to dominate the market. We don’t have to.

Well, simple last product valuation is almost 100 times ours. We don’t need to catch them. We don’t even need to compete with them. We just need to serve the investors who eventually outgrow speculation. Even capturing a fraction of that shift would represent meaningful upside and we’re structured for it in our pricing platform and our philosophy.

The next great investment platform won’t be the ones that monetize attention. They’ll be the ones that help people perform. That’s what we’re building. I’ll now pass it over to Greg to walk through the financials.

Greg, CFO, Mogo: Thanks Dave. Before I turn to financials, just want to touch on Carta. Turning to our payment business, we processed 2,800,000,000.0 volume in Q2, which is flat year over year on a reported basis. But as Dave mentioned, we previously announced the decision to exit Canada at the end of Q1 to exclusively focus on Europe where card has been a pioneer in payments market. When you exclude the Canadian volume mark, core European business was up 15% year over year on a volume basis.

In other words, we replaced the 13% revenue exit with 15% growth in the market we’re scaling. With a full OCI migration now complete, Card is operating in a modern infrastructure stack and improves both scalability and cost efficiency. In the longer term we see an opportunity for Cardi to play a role in stablecoin based payments aligned with broader shift to real time blockchain based settlements across Fintech. Now I’ll walk through our Q2 financial results which reflect the progress we made across both operations and capital allocation. In Q2 we delivered strong year over year growth in both wealth and payments up 4823% respectively.

Gross margin expanded to 72%, net income came in at $13,500,000 and we were operating cash flow positive. We also delivered an adjusted EBITDA margin of 11.4% reflecting both operating leverage and capital discipline. Our growth is being driven by the right segments. Wealth and payments are both scaling organically and importantly within wealth we’re seeing an ARPU shift towards higher value users. We’re not spending to acquire right now as Dave mentioned, but new users are coming in at meaningfully higher ARPUs while legacy lower values users continue to churn.

The mix shift is driving revenue growth without adding costs and positions us for strong unit economics when we plan to begin broader marketing of our intelligent investing wealth platform in 2026. On the profitability side, we delivered adjusted EBITDA of $1,900,000 up from $1,100,000 last quarter and $1,400,000 a year ago. Margin also expanded as I mentioned to 11.4%. We’re also operating cash flow positive again this quarter, a key indicator that we can self fund core growth while also executing our capital strategy depending on our growth ambitions. Turning to the balance sheet, we ended the quarter with $50,800,000 in cash and marketable securities and private investments or about $2.1 per share.

Our investment portfolio which will increasingly reflect our Bitcoin strategy currently includes high quality holdings in companies like WonderFi, Gemini and Hootsuite. While our Bitcoin reserve is still in early stages crypto related investments now represent close to 80% of our total investing holdings as of quarter end. Supporting this position our book value at quarter end stood at 81,600,000.0 or $3.41 per share. When you compare those data points to our $54,000,000 market cap the disconnect is clear. And when you also consider that our operating business is approaching a $70,000,000 annualized revenue run rate with high growth contributions from welcome payments that disconnect becomes even harder to justify.

We believe we’re operating one of the most attractive and strategically important segments of the market with an increasingly deep mode and long term tailwinds firmly behind us. As long as we continue to execute and deliver, we believe the market gap will close. In the meantime, our balance sheet is strong and strategic and gives us flexibility to invest with conviction, adapt when needed and compound value over the long term. Finally, let’s revisit our Bitcoin treasury strategy, a key part of the structural foundation we’re building at Mogo. We launched this strategy in 2024.

Reminder, we are one of the first public companies in The US to actually put Bitcoin on our balance sheet when we added that back in 2020 after MicroStrategy and Block and before Tesla. And in ’24 we decided that we’re going to expand on that. And this quarter we expanded both at scale and strategic content. We think of this in three layers. At the base layer our Bitcoin reserve.

This is a long term sort of value and capital benchmark. In the middle our regulatory infrastructure where we’re working to become one of only two regulated platforms in Canada offering both equities and crypto. And on top our product integrations including plans to launch a flagship sixtyforty equity Bitcoin portfolio, BTC backed lending and stablecoin enabled payment infrastructure. This is more than investment, it’s a compounding system. Platform integration fuels user growth, which drives operating income, which funds treasury expansion and future capital gains, and that in turn reinforces the reserve.

We’re still early in our Bitcoin deployment and that’s intentional. Our near term focus has been monetizing our stake in WonderFi, which is in the process of being acquired by Robinhood. After quarter end we monetized just under 50% of our WonderFi position for approximately 14,000,000 in net proceeds and immediately deployed over a million into additional Bitcoin. This is not a statement, it’s execution and it’s a real time example of our dual compounding model at work. This is how we intend to build long term value structurally, repeatably and with discipline.

With that I’ll turn it back to Dave.

Dave Feller, CEO, Mogo: I think we’re ready to open up for questions.

Conference Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer

Dave Feller, CEO, Mogo: hand

Conference Operator: has raised. The first question comes from Scott Buck at H. C. Wainwright. Please go ahead.

Scott Buck, Analyst, H.C. Wainwright: Hi, good afternoon guys. Thanks for taking my questions. I’m curious, how do you prioritize or balance the accumulation of Bitcoin for the balance sheet versus using that same cash to reinvest in some of your high growth business verticals. Is it one or the other? Can you do both?

I mean, how are you thinking about that?

Greg, CFO, Mogo: Yeah, thanks Scott. So our plan is to do both but remember our overarching framework is using Bitcoin as a hurdle rate. So if we believe that we can get a Bitcoin like or higher return in our core business that will be the hurdle rate to invest money there. Right now we’re currently operating fairly close to cash flow breakeven. And so with the proceeds from the WonderFi transaction and our continued focus on monetizing other pieces of that portfolio, we’re going to have significant cash and liquidity available to we believe do both invest in Bitcoin and the business.

And the way we’ll do that approach that initially is that if we believe that we have high, we can meet the hurdle rate in our core business for Bitcoin, but we don’t believe that we really need to use all the excess cash in our balance sheet for that business, then that by definition frees up money for Bitcoin. And obviously the fact that we’ve started to make those investments in Bitcoin tells you that we believe we’ve got ample liquidity to do both. But again Bitcoin will be the hurdle rate that we look at going forward as we consider any investments with cash from our balance sheet.

Scott Buck, Analyst, H.C. Wainwright: Great. That’s helpful. Given your liquidity position and kind of anticipated liquidity position, how are you thinking about or what’s your appetite for potential M and A to accelerate growth in maybe wealth or even payments?

Greg, CFO, Mogo: I think we’re always open to M and A. I mean, we’ve done a number of transaction over the years. I mean, wealth business really started with an acquisition years ago. That business has been radically transformed since then, but really that’s what got us into that business. Obviously, that’s also what got us into payments.

And even the one to five monetization was from investments we made in crypto space early days. So we’re not shy about doing that, but I think for us it would have to be pretty strategic because we believe that we’ve got a high return opportunity in both our core business today and in Bitcoin. So that would be the hurdle rate for any acquisition as well. So, as I said, we’ve got the muscle memory and the skills that Mogo to do M and A, but it would have to be strategic and make sense and meet that hurdle rate for the areas that we’re focused on.

Scott Buck, Analyst, H.C. Wainwright: Got it. That makes sense. On the crypto trading initiative, can you give us a sense of timeline to work through the regulatory process? And does it require any kind of meaningful, you know, investment from you guys in terms of, you know, increased OpEx or anything to get through, you know, to get to approval, I guess?

Greg, CFO, Mogo: Yeah, I think from a regulatory perspective, for Mogo to get fully licensed, remember, we’re already licensed with the regulators on the equity side. So we think that actually helps us as it relates to going through the crypto side of the regulation. You know, that regulation is probably a minimum of six months and can be longer depending on issues that may or may not come up, but that sort of give you a sense of the direction. But it doesn’t mean that in between there, there wouldn’t be other opportunities potentially from a partnership perspective for us to execute partially on that crypto strategy as well. So, I think we’re exploring multiple sort of parallel paths.

There will be some investment related to it, but we don’t think it’s a massive investment. We’ve got a lot of that infrastructure already in place for our existing wealth business. And so it makes it a lot easier for us to you know, take that undertaking given that.

Scott Buck, Analyst, H.C. Wainwright: Got it. Okay, great. And then if I could sneak one last one in.

Greg, CFO, Mogo: You could talk a

Scott Buck, Analyst, H.C. Wainwright: little bit about the lending business and how you see the environment and maybe what your plans are with that business here over the next twelve months or so?

Greg, CFO, Mogo: Yeah, I think, look, we, you know, lending’s always been an important part of our business. You know, we see it as a profitable cash flow generating business, fairly high ROI business. And we’ve got, you know, twenty plus years of experience in that business. And we think that that really the data that we have there, the experience we have there is an asset and a big moat. This is not an easy business to get into.

As I say, it’s easy to start lending. It’s harder to get the money back if you haven’t done that for a long time. And, you know, we’ve been doing this for twenty years. We’ve gone through cycles including the global financial crisis. So we do expect that, I mean we grew the loan book this quarter.

So I think our goal is that that business is supportive of growth, I. E. Not a drag on growth, but not our primary focus to drive growth. Wealth and payments will be our primary focus to drive growth with you know, the lending business supporting that. And we’re going to continue to be pretty disciplined on how we grow that business.

But the business is performing well and we like what we see. So I think we’re going to continue with sort of our current path today.

Scott Buck, Analyst, H.C. Wainwright: All right. Well, I appreciate the added color, guys. Thank you very much, and congrats on the results.

Greg, CFO, Mogo: All right. Thanks, Scott.

Conference Operator: Thank you. There are no further questions. I’ll turn the call back over to the presenters.

Dave Feller, CEO, Mogo: Okay, well, again, thanks everybody for joining us on our Q2 call. We look forward to updating you again post our Q3 earnings. Thanks again.

Conference Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and we ask that you please disconnect your lines.

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