MOGO Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

Assets Under Management (AUM): Reached a record $498 million, up 22% year-over-year.
Wealth Revenue: Increased by 27% year-over-year.
Payments Revenue: Grew 11% year-over-year, driven by strong performance in Europe.
Adjusted EBITDA: Reported at $2 million, with an 11.6% margin, consistent with the previous year.
Total Revenue: Adjusted total revenue grew 2% year-over-year to $17 million.
Total Cash and Investments: Ended the quarter at $46.1 million, including $18 million in cash and restricted cash.
Net Cash Flow Before Loan Book: Decreased year-over-year due to timing of working capital items.

2. Strategic Updates and Business Highlights

Intelligent Investing Platform: Mogo is launching a new unified investing platform that combines managed and self-directed investing, aimed at improving investor behavior and outcomes.
Bitcoin Holdings: Increased by over 300% quarter-over-quarter, reaching $4.7 million, as part of a strategic initiative to allocate up to $50 million in Bitcoin.
Payments Business (Carta): Processing volume grew 12% year-over-year to $2.8 billion, with plans to integrate stablecoin payments to enhance cross-border transactions.
Member Growth: Total members in Canada increased to 2.3 million, up 6%.

3. Forward Guidance and Outlook

Revenue Guidance: Reaffirmed for 2025, with an increase in adjusted EBITDA guidance from $5-6 million to $6-7 million.
Focus for 2026: Priorities include growing the recurring revenue base, maintaining profitability, and capital allocation centered on Bitcoin and hard asset value creation.

4. Challenges and Points of Concern

Interest Revenue Decline: Down 5% year-over-year due to a new rate cap, though it showed slight sequential improvement.
Lending Business: Currently a drag on revenue growth due to the rate cap impact, with expectations that it will become a smaller part of overall business growth moving forward.
Market Competition: The rise of "dopamine-fueled" trading platforms presents competitive pressures, necessitating Mogo's strategic pivot towards a more disciplined investing approach.

5. Notable Q&A Insights

Balance Between Growth and Margins: Management emphasized the importance of remaining EBITDA positive while pursuing top-line growth, particularly with the rollout of the new platform.
Intelligent Investing Rollout: The transition will begin with managed accounts, followed by self-directed accounts, aiming for a seamless user experience.
Regulatory Progress on Crypto Trading: Mogo is advancing discussions on partnerships to integrate crypto trading into its new platform, with updates expected in 2026.

Overall, Mogo's Q3 2025 results reflect a solid performance with strategic initiatives focused on enhancing its wealth management capabilities and expanding its Bitcoin holdings, despite facing challenges in interest revenue and competitive pressures in the fintech landscape.

MOGO — Mogo Inc.