Mogo(US:MOGO)2025-08-07 11:00Financial Performance - Revenue for the three months ended June 30, 2025, was CAD 16,933 thousand, a slight decrease of 3.5% compared to CAD 17,553 thousand for the same period in 2024[10] - Gross profit increased to CAD 12,187 thousand for the three months ended June 30, 2025, compared to CAD 11,846 thousand in the same period of 2024, reflecting a growth of 2.9%[10] - Net income for the three months ended June 30, 2025, was CAD 13,509 thousand, a significant improvement from a net loss of CAD 12,351 thousand in the same period of 2024[10] - Operating expenses for the three months ended June 30, 2025, totaled CAD 12,790 thousand, a decrease of 2.7% from CAD 13,142 thousand in the same period of 2024[10] - The Company reported a basic and diluted loss per share of CAD 0.56 for the three months ended June 30, 2025, compared to a loss of CAD 0.51 per share in the same period of 2024[10] Assets and Liabilities - Total assets decreased from CAD 189,648 thousand as of December 31, 2024, to CAD 183,012 thousand as of June 30, 2025, representing a decline of approximately 3.4%[4] - Total liabilities decreased from CAD 108,431 thousand as of December 31, 2024, to CAD 101,424 thousand as of June 30, 2025, a reduction of approximately 6.5%[4] - The company’s total equity increased slightly from CAD 81,217 thousand as of December 31, 2024, to CAD 81,588 thousand as of June 30, 2025, an increase of 0.5%[4] - Cash and cash equivalents decreased from CAD 8,530 thousand at the end of 2024 to CAD 8,122 thousand by June 30, 2025, a decline of 4.8%[4] - The Company’s total non-current assets were CAD 67,755 as of June 30, 2025, down from CAD 70,872 as of December 31, 2024[51] Loans and Allowances - As of June 30, 2025, the total gross loans receivable amounted to CAD 73.593 million, with an allowance for loan losses of CAD 15.774 million[32] - The net loans receivable stood at CAD 57.819 million, reflecting an increase from CAD 58.620 million as of December 31, 2024[33] - The Company reported a provision for loan losses of CAD 935 thousand for the three months ended June 30, 2025, compared to CAD 687 thousand for the same period in 2024[35] - The allowance for loan losses increased from CAD 14.076 million at the end of 2024 to CAD 15.774 million as of June 30, 2025[35] Marketable Securities and Investments - The total marketable securities increased to CAD 30.068 million as of June 30, 2025, up from CAD 26.085 million at the end of 2024[36] - As of June 30, 2025, the investment portfolio balance was $9,912 million, down from $11,991 million as of December 31, 2024, reflecting a decrease of 17.4%[61] - The company disposed of $715 million in investments during the period, with an unrealized loss of $940 million on the investment portfolio[61] - The fair value of the company's loans receivable approximates $72,696 million, reflecting the short-term nature of these instruments[61] Credit Facilities and Debentures - The credit facility has a principal and interest balance outstanding of CAD 48.954 million as of June 30, 2025, compared to CAD 48.792 million at the end of 2024[39] - The principal balance of debentures decreased to CAD 33,920 as of June 30, 2025, from CAD 35,257 as of December 31, 2024[44] - The Company’s debentures have fixed interest rates and are not subject to variability due to interest rate risk, while the credit facility is subject to cash flow risk[68] - The company has a credit facility with a variable interest rate of 7% plus SOFR, which was 4.52% as of June 30, 2025[68] Shareholder Information - The company repurchased 523,091 common shares at an average price of CAD $2.02 per share, totaling a repurchase cost of $1,058 million[74] - As of June 30, 2025, the company had 23,949,286 common shares outstanding, a decrease from 24,472,377 shares as of December 31, 2024[73] - The company maintains a treasury share reserve of 190,706 common shares as of June 30, 2025, unchanged from December 31, 2024[75] - As of June 30, 2025, the company had 3,491,000 stock options outstanding with a weighted average exercise price of $2.71[79] - Total stock-based compensation costs related to options for the three months ended June 30, 2025, were $507,000, compared to $561,000 for the same period in 2024[81] - The company had 769,000 warrants outstanding as of June 30, 2025, with a weighted average exercise price of $5.02[83] Management and Future Outlook - The Company’s management has determined that it has adequate resources to continue as a going concern for at least 12 months from the date of approval of the financial statements[23] - The Company’s cash flow projections incorporate a rolling forecast and detailed cash flow modeling for the next 12 months[24] Other Income and Expenses - The company reported a non-recurring cash inflow of CAD 3,000 thousand from an investor rights agreement during the three months ended June 30, 2025[17] - The Company recognized CAD 3,000 as other income related to governance agreements during Q2 2025[54] - Interest expense on the credit facility for the six months ended June 30, 2025, was CAD 2.836 million, down from CAD 3.388 million for the same period in 2024[40] - The Company reported a revaluation loss of CAD 13,870 in Q2 2025, compared to a gain of CAD 8,301 in Q2 2024[53] Revenue Breakdown - Interest revenue decreased to CAD 6,536 in Q2 2025 from CAD 7,117 in Q2 2024, representing a decline of 8.1%[47] - Wealth revenue increased by 48.1% to CAD 3,570 in Q2 2025 from CAD 2,407 in Q2 2024[47] - Total revenue for Q2 2025 was CAD 16,933, a decrease of 3.5% from CAD 17,553 in Q2 2024[47]