Mogo Finance Technology ((TSE:MOGO)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Mogo Finance Technology painted a largely positive picture of the company’s financial health and strategic direction. Despite facing some challenges, such as a decline in interest revenue and net cash flow, the overall sentiment was buoyed by strong growth in assets under management (AUM), wealth, and payments revenue. The company’s strategic advancements, particularly in Bitcoin holdings and improved EBITDA guidance, suggest a promising outlook.
Record AUM and Wealth Revenue Growth
Mogo Finance Technology reported a record $498 million in assets under management, marking a 22% increase year-over-year. This impressive growth was accompanied by a 27% rise in wealth revenue, underscoring the company’s robust performance in this segment.
Payment Business Growth
The company’s payments revenue saw an 11% increase year-over-year, driven by continued strength in the European market. Processing volume also grew by 12% year-over-year, reaching $2.8 billion, highlighting the solid expansion of Mogo’s payment business.
Bitcoin Holdings Increase
Mogo’s Bitcoin holdings experienced a substantial rise, increasing by more than 300% quarter-over-quarter to $4.7 million. This significant growth reflects the company’s strategic focus on cryptocurrency as a key component of its financial strategy.
Improved EBITDA Guidance
Mogo reported an adjusted EBITDA of $2 million, with an 11.6% margin, prompting the company to raise its 2025 EBITDA guidance from $5 million to a range of $6 million to $7 million. This adjustment indicates confidence in their growth trajectory and operational efficiency.
Strong Balance Sheet
The company ended the quarter with total cash and investments amounting to $46 million and a book value of approximately $77.5 million. This strong balance sheet positions Mogo well for future growth and stability.
Interest Revenue Decline
Interest revenue saw a 5% decline year-over-year, attributed to a new rate cap implemented at the beginning of the year. This challenge highlights the impact of regulatory changes on Mogo’s financial performance.
Net Cash Flow Decrease
The company experienced a decrease in net cash flow before loan book year-over-year, primarily due to the timing of working capital items. This decrease points to potential areas for improvement in cash flow management.
Forward-Looking Guidance
Looking ahead, Mogo has raised its 2025 EBITDA guidance to a range of $6 million to $7 million, reflecting their confidence in continued growth and operational efficiency. The company’s strategic focus on wealth, payments, and Bitcoin is expected to drive future performance and shareholder value.
In conclusion, Mogo Finance Technology’s earnings call highlighted a positive sentiment, driven by strong growth in key areas and strategic advancements. Despite some challenges, the company’s improved EBITDA guidance and robust balance sheet suggest a promising future. Investors and stakeholders can look forward to Mogo’s continued focus on expanding its wealth, payments, and Bitcoin segments.