The personal finance platform's gross margin rose by 16 percentage points in the second quarter, as it focused on its higher-margin insurance and wealth segmentsKey Takeaways:MoneyHero's adjusted EBITDA showed strong sequential improvement in the second quarter as it concentrated on higher-margin products and achieving greater efficienciesUnder a CEO appointed last year, the company's shares have rallied on growing investor confidence in its path to profitability.After spending most of its life advising oth ...

Financial Data and Key Metrics Changes - Revenue for Q2 was reported at $18 million, down 13% year-over-year, but showed over 20% sequential growth from Q1 to Q2 [4][13] - Adjusted EBITDA loss narrowed to $1.95 million, an improvement from $3.3 million in Q1 and $9.3 million a year ago [2][4] - Net income was $0.2 million in Q2, compared to a net loss of $12.2 million in the same quarter last year [4][18] - Cost of revenue improved to 51% from 67% year-over-year, reflecting better unit economics [4][18] Business Line Data and Key Metrics Changes - Insurance revenue grew from 11% to 14% of total revenue year-over-year, while wealth increased from 11% to 13% [4] - Combined, insurance and wealth contributed 27% of total revenue in Q2, up from 22% in the same period last year [4] - Credit card revenue decreased slightly from 62% to 61% as part of a strategic shift towards higher-margin verticals [4] Market Data and Key Metrics Changes - The company reported a member base of 8.6 million, indicating strong market penetration [3] - The company has over 260 provider partnerships, enhancing its market position and revenue potential [3] Company Strategy and Development Direction - The company aims for durable, profitable growth by prioritizing quality over quantity and focusing on higher-margin verticals [2] - Strategic initiatives include expanding insurance and wealth offerings, leveraging AI for operational efficiency, and maintaining cost discipline [3][5] - The company plans to achieve 5% to 10% adjusted EBITDA margins over the next two to three years, driven by improved revenue mix and AI-enabled operating leverage [3] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA in the second half of 2025, supported by strong sequential growth and strategic initiatives [2][3] - The current market environment is viewed positively for fintechs that combine profitable growth with visible catalysts [3] - The company is focused on deepening member engagement and expanding its offerings in insurance and wealth management [4][13] Other Important Information - The company is actively integrating AI into its operations, which is expected to lower customer acquisition costs and improve service efficiency [7][10] - The company is pursuing a regulatory-first approach in its digital asset collaborations, ensuring compliance while expanding its offerings [10][12] Q&A Session Summary Question: Can you elaborate on AI initiatives and their impact? - Management detailed the use of AI in customer acquisition, support, and competitive intelligence, leading to lower service costs and improved conversion rates [7] Question: What are the key growth drivers for 2026? - Management highlighted the scaling of insurance and wealth, improved conversion rates, and AI-driven efficiencies as key growth levers [10] Question: What initiatives will restore revenue to last year's levels? - Management emphasized scaling higher-margin verticals, deepening member engagement, and leveraging commercial momentum as strategies to restore revenue [12][13] Question: What factors contributed to the improvement in net loss and EBITDA? - Management identified a shift towards higher-margin products, improved unit economics, and cost discipline as key drivers of the improvement [18]

Financial Data and Key Metrics Changes - Revenue for Q2 was reported at $18 million, reflecting a 13% year-over-year decline, but a sequential growth of over 20% from Q1 [4][13] - Adjusted EBITDA loss narrowed to $1.95 million, an improvement from $3.3 million in Q1 and $9.3 million a year ago [2][4][18] - Net income was $0.2 million in Q2, compared to a net loss of $12.2 million in the same quarter last year [4][18] - Cost of revenue improved to 51% of revenue, down from 67% year-over-year [4][18] Business Line Data and Key Metrics Changes - Insurance revenue grew from 11% to 14% of total revenue year-over-year, while wealth increased from 11% to 13% [4] - Combined, insurance and wealth contributed 27% of total revenue in Q2, up from 22% in the same period last year [4] - Credit card revenue decreased slightly from 62% to 61% of total revenue [4] Market Data and Key Metrics Changes - The company reported a member base of 8.6 million, indicating strong market penetration [3] - The company has over 260 provider partnerships, enhancing its market position [3] Company Strategy and Development Direction - The company aims to reshape its business for durable, profitable growth by prioritizing quality over quantity and focusing on higher-margin verticals [2] - The strategy includes expanding insurance and wealth offerings, leveraging AI for operational efficiency, and maintaining cost discipline [3][10] - The company plans to achieve 5%-10% adjusted EBITDA margins over the next two to three years, driven by improved revenue mix and AI-enabled operating leverage [3] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA in the second half of 2025, supported by new bank and insurer actions and scaling insurance and risk programs [3][4] - The current market environment is viewed positively for fintechs that combine profitable growth with visible catalysts [3] - Management emphasized the importance of maintaining a disciplined approach to capital allocation and focusing on sustainable profitability [5] Other Important Information - The company is actively integrating AI into its operations, which has led to improved customer acquisition and service efficiency [7][10] - The company is exploring partnerships in the digital asset space while ensuring compliance and consumer value [5][10] Q&A Session Summary Question: Can you elaborate on AI initiatives and their impact? - Management detailed the use of AI in customer support, competitive intelligence, and guided customer journeys, which have led to lower service costs and improved conversion rates [7] Question: What are the key growth drivers for 2026? - Management highlighted the scaling of insurance and wealth, continuous improvement in conversion rates, and the importance of provider partnerships as key growth levers [10] Question: What initiatives will restore revenue to last year's levels? - Management indicated a focus on scaling higher-margin verticals, deepening member engagement, and leveraging commercial momentum to restore revenue [12][13] Question: What factors contributed to the improvement in net loss and EBITDA? - Management attributed the improvement to a shift towards higher-margin products, enhanced unit economics, and cost discipline [15][18]

Financial Data and Key Metrics Changes - The company reported revenue of $18 million in Q2, down 13% year-over-year but up over 20% sequentially from Q1 [11][12][32] - Adjusted EBITDA loss narrowed to $1.95 million, an improvement from $3.3 million in Q1 and $9.3 million a year ago [3][13][39] - Net income was $0.2 million in Q2, compared to a net loss of $12.2 million in the same quarter last year [13][39] Business Line Data and Key Metrics Changes - Insurance revenue grew from 11% to 14% of total revenue year-over-year, while wealth grew from 11% to 13% [12] - Insurance and wealth together contributed 27% of total revenue in Q2, up from 22% in the same period last year [12] - Cost of revenue improved to 51% of revenue, down from 67% a year ago [12][13] Market Data and Key Metrics Changes - The company has 8.6 million members and over 260 provider partnerships, indicating strong market presence [8] - The current market environment is seen as positive for fintechs that combine profitable growth with visible catalysts [8] Company Strategy and Development Direction - The company aims to reshape for durable, profitable growth by prioritizing quality over quantity and focusing on higher margin verticals [3] - Future growth is expected to be driven by scaling insurance and wealth, with a target of 28% to 30% of revenue from these segments in the second half of the year [27][33] - The company is focusing on AI integration to improve operational efficiency and customer service [6][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive adjusted EBITDA in the second half of 2025, driven by new bank and insurer actions and scaling insurance and risk [8][39] - The company is in a strong position due to market leadership and industry consolidation, with a clear path to achieving 5% to 10% adjusted EBITDA margins in the next two to three years [9][39] Other Important Information - Operating expenses fell 37% year-over-year to $20.6 million, reflecting a more disciplined and efficient operating model [13][16] - The company is exploring life insurance partnerships and expanding its digital asset collaborations in a regulatory-first manner [29][30] Q&A Session Summary Question: Can you talk about AI initiatives in the business? - The company is embedding AI in customer acquisition, conversion, and service, with initiatives like AI customer support automating 70% to 80% of inquiries [18][19] Question: What are the key growth drivers for 2026? - Growth drivers include scaling insurance and wealth, improving conversion rates, and leveraging AI for operational efficiency [21][28] Question: What initiatives should the company take to restore revenue to last year's level? - The company aims to scale higher margin verticals like insurance and wealth, deepen member engagement, and leverage commercial momentum [31][33] Question: What factors have contributed to the improvement in net loss and EBITDA? - Key factors include a shift towards higher margin products, improved unit economics, and cost discipline [36][39]

Core Insights - MoneyHero Limited has launched an invitation-only testing version of Credit Hero Club, aimed at providing users with a comprehensive credit report service and personalized loan product information [1] - The public testing phase is set to last approximately three weeks, with a full launch planned for Q4 2025 [1][2] - The collaboration with TransUnion allows Credit Hero Club to utilize real-time credit data to enhance user experience and improve approval rates for financial institutions [1][3] Product Features - After the public testing, Credit Hero Club will introduce core features that include in-depth insights and predictive analytics [2] - The platform aims to transition from a one-time comparison site to a reliable financial platform with ongoing user interaction [2] - Credit Hero Club will enhance the synergy between lending, insurance, and financial products, increasing customer lifetime value and profit growth potential [2] Market Opportunity - According to a study by TransUnion, 83% of Hong Kong consumers only hold basic credit cards, indicating a gap in the usage of other credit products [3] - Credit Hero Club is designed to help consumers understand their credit status and identify suitable products, thereby increasing their chances of approval [3][4] Company Overview - MoneyHero Limited is a leading personal finance integration and comparison platform in Southeast Asia, operating in Singapore, Hong Kong, Taiwan, and the Philippines [5] - As of March 31, 2025, the company had over 260 business partners and 5.7 million monthly unique users [5] - The company also holds equity in Jirnexu Pte. Ltd., the operator of Malaysia's largest B2C platform, RinggitPlus [5]

Core Insights - MoneyHero Limited has launched the invite-only beta version of Credit Hero Club, a platform aimed at enhancing users' understanding of their credit profiles and simplifying the loan application process, with a public launch targeted for Q4 2025 [1][2] Group 1: Product Development - Credit Hero Club is developed in partnership with TransUnion and provides users with access to their credit profiles and personalized loan product information [2] - The beta testing phase will last approximately three weeks, after which product adjustments will be finalized [1][3] Group 2: Market Opportunity - Research from TransUnion indicates that 83% of consumers in Hong Kong hold basic spend wallet credit cards, highlighting a gap in access to diverse credit products [5] - Credit Hero Club aims to address this gap by helping consumers understand their credit profiles and increasing their chances of approval for suitable financial products [5] Group 3: Business Model and Growth - By offering comprehensive credit monitoring and personalized insights, Credit Hero Club positions MoneyHero as a trusted financial platform, enhancing customer engagement and long-term value [4] - The platform is expected to unlock recurring monetization opportunities across lending, insurance, and wealth products, supporting margin-accretive growth [4] Group 4: Company Overview - MoneyHero Limited operates in Greater Southeast Asia, including Singapore, Hong Kong, Taiwan, and the Philippines, with a portfolio of B2C and B2B platforms [7] - As of March 31, 2025, MoneyHero had over 260 commercial partner relationships and approximately 5.7 million Monthly Unique Users [8]

Core Insights - MoneyHero Limited has launched the invite-only beta version of Credit Hero Club, a platform aimed at enhancing users' understanding of their credit profiles and simplifying the loan application process, with a public launch targeted for Q4 2025 [1][2] Group 1: Product Development - Credit Hero Club is developed in partnership with TransUnion and provides users with access to their credit profiles and personalized loan product information [2] - The beta testing phase will last approximately three weeks, after which the company will finalize product adjustments [1][3] - Future versions of Credit Hero Club are being explored to include more in-depth insights and predictive analysis [3] Group 2: Market Opportunity - Research from TransUnion indicates that 83% of consumers in Hong Kong hold basic spend wallet credit cards, highlighting a gap in access to diverse credit products [5] - Credit Hero Club aims to bridge this gap by helping consumers understand their credit profiles and increasing their chances of approval for suitable financial products [5] Group 3: Business Model and Growth - By providing comprehensive credit monitoring and personalized insights, Credit Hero Club positions MoneyHero as a trusted financial platform, enhancing customer engagement and long-term value [4] - The platform is expected to unlock recurring monetization opportunities across lending, insurance, and wealth products, supporting margin-accretive growth [4] Group 4: Company Overview - MoneyHero Limited operates in Greater Southeast Asia, including Singapore, Hong Kong, Taiwan, and the Philippines, with a portfolio of B2C and B2B platforms [7][8] - As of March 31, 2025, MoneyHero had over 260 commercial partner relationships and approximately 5.7 million Monthly Unique Users [8]

Financial Data and Key Metrics Changes - The company reported a revenue decline of 35% year-over-year to $14.3 million, reflecting a strategic pivot to reduce marketing spend and focus on higher quality and margin products [26] - The net loss narrowed significantly to $2.4 million from $13.1 million a year ago, marking an improvement of over $10 million [29] - Adjusted EBITDA loss improved to $3.3 million, indicating a clear path towards sustainable profitability [29] Business Line Data and Key Metrics Changes - Personal loans increased from 15% to 17% of total revenue, insurance grew from 8% to 13%, and wealth doubled to 12%, indicating a shift towards higher margin verticals [27] - Credit cards, while still the largest revenue driver at 57%, decreased from over 70%, reflecting successful diversification [9][27] Market Data and Key Metrics Changes - The company is seeing recovery in The Philippines after signing strategic partnerships with two top banks, which is expected to improve performance in the second half of the year [14] - The company has a strong cash position of $36.6 million and no debt, providing flexibility for growth and capital return options [30] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA in the latter part of 2025, with a revenue target of $100 million for the full year [7][30] - A focus on diversifying revenue streams into higher margin verticals like wealth and insurance is central to the strategy [8] - The company is leveraging AI to enhance operational efficiency and reduce costs, with a 26% year-over-year reduction in employee-related costs [15][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path to profitability, emphasizing the importance of quality revenue over volume [6][23] - The company is proactively exploring opportunities in the digital asset space, aligning with its focus on expanding higher margin verticals [36][37] - Management highlighted the importance of maintaining a disciplined approach to capital allocation, particularly in light of potential market consolidation [71][72] Other Important Information - The company has implemented an RSU program to align employee incentives with shareholder interests, fostering a culture of ownership [18][19] - The company is actively working to improve visibility and credibility in the market, including onboarding a new investor relations partner [21][22] Q&A Session Summary Question: Can you talk more about the partnership with OSL and your plans for the digital asset space? - Management views the partnership as a strategic step into the digital asset space, offering enhanced user experiences and new monetization opportunities [36][37] Question: Can you discuss the margin improvement and its sustainability? - The margin expansion is attributed to a shift in revenue mix and optimization of costs, with expectations for continued sustainability [50][51] Question: What is the strategic value of the Credit Hero Club partnership with TransUnion? - The partnership enhances user engagement and approval rates, allowing for personalized recommendations based on real-time credit data [62][63] Question: How does the company view the competitive landscape evolution in Southeast Asia? - Management anticipates increased consolidation in the market, with the company well-positioned to capitalize on opportunities due to its strong cash position and market leadership [70][72]

Financial Data and Key Metrics Changes - The company reported a revenue decline of 35% year-over-year to $14.3 million, reflecting a strategic pivot to reduce marketing spend and focus on higher quality and margin products [29] - The net loss narrowed significantly to $2.4 million from $13.1 million a year ago, marking an improvement of over $10 million [32] - Adjusted EBITDA loss improved to $3.3 million, indicating a clear path towards sustainable profitability [32] Business Line Data and Key Metrics Changes - Personal loans increased from 15% to 17% of total revenue, insurance grew from 8% to 13%, and wealth doubled to 12%, while credit cards decreased to 57% from over 70% [30] - High-margin verticals now account for approximately 25% of total revenue, an increase of 11 percentage points year-over-year [30] Market Data and Key Metrics Changes - The company has signed strategic partnerships with two top banks in the Philippines, enhancing its product offerings and positioning as a digital customer acquisition channel [16] - The insurance segment, particularly car insurance, is experiencing significant momentum with a new end-to-end purchase journey launched in partnership with Boltec [12][13] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA in the latter part of 2025, targeting $100 million in revenue for the full year [8][33] - A focus on diversifying revenue streams towards higher margin verticals is central to the strategy, with an emphasis on operational efficiency and leveraging AI for cost reduction [18][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path to profitability, highlighting improved unit economics and a leaner business model [8][33] - The company is proactively exploring opportunities in the digital asset space, aligning with its focus on expanding higher margin verticals [39][40] Other Important Information - The company ended the quarter with $36.6 million in cash and no debt, providing flexibility for growth and capital return options [33] - A broad-based RSU program was rolled out to align employee incentives with shareholder interests, fostering a culture of ownership [20] Q&A Session Summary Question: Can you talk more about the partnership with OSL and your plans for the digital asset space? - Management views the partnership as a strategic step into the digital asset space, offering enhanced user experiences and new monetization opportunities [39][40] Question: Can you discuss the margin improvement and if it will be sustainable? - The significant reduction in cost of revenue and improved revenue mix are expected to sustain margin improvements going forward [41][51] Question: What is the strategic value of the Credit Hero Club partnership with TransUnion? - The partnership enhances user engagement, approval rates, and monetization potential by providing personalized recommendations based on real-time credit data [65][66] Question: How does the company view the competitive landscape evolution in Southeast Asia? - The company anticipates consolidation trends in the market, positioning itself to capitalize on opportunities due to its strong cash position and market leadership [71][74]

Core Insights - MoneyHero Limited reported significant financial improvements in Q1 2025, reducing net loss to US$(2.4) million from US$(13.1) million year-over-year, and improving Adjusted EBITDA loss to US$(3.3) million from US$(6.4) million [2][12][15] - The company is focusing on higher-margin verticals such as insurance and wealth, which now account for 25% of total revenue, an increase of 11 percentage points year-over-year [3][10] - Operational efficiency has been enhanced through AI implementation, leading to a 26% reduction in total operating expenses year-over-year [4][11] Financial Performance - Revenue decreased by 35% year-over-year to US$14.3 million, reflecting a strategic shift towards improving revenue quality [15][18] - Cost of revenue fell by 55% year-over-year to US$6.4 million, accounting for 44% of total revenue, down 20 percentage points from the previous year [9][10] - Monthly Unique Users increased by 38% year-over-year to 5.7 million, with MoneyHero Group Members growing to over 8 million [5][22] Strategic Initiatives - The company has secured new partnerships in the Philippines, which are expected to enhance market position and performance in the second half of 2025 [6] - Plans to launch Credit Hero Club in collaboration with TransUnion aim to provide consumers with free credit scores and personalized financial product recommendations, driving user engagement [7] - The company maintains a strong cash position of US$36.6 million with no debt, positioning it well for future growth initiatives [8] Revenue Breakdown - Revenue from insurance products increased by 4% year-over-year to US$1.9 million, accounting for 13% of total revenue [15][19] - Revenue from wealth products surged by 20% year-over-year to US$1.7 million, representing 12% of total revenue [15][19] - The reliance on lower-margin credit cards decreased, with credit card revenue dropping 13 percentage points to 57% of total revenue [10][15] Operational Highlights - The company sourced 399,000 applications in Q1 2025, with 155,000 approved applications [15][18] - Total operating costs and expenses decreased to US$18.3 million from US$30.4 million year-over-year, driven by targeted marketing and technology cost streamlining [11][15] - The strategic pivot initiated in 2024 is showing positive results, with a focus on revenue quality and operational efficiency [8][12]