Mogo (MOGO) Conference Transcript

Summary of Mogo Conference Call - August 19, 2025 Company Overview - Company: Mogo (Ticker: MOGO) - Industry: Fintech, focusing on wealth management and cryptocurrency Key Financial Highlights - Q2 Results: - Positive net income of CAD 13.5 million [3] - Wealth revenue increased by 48% year-over-year [3] - Payments revenue grew by 23% [3] - Adjusted EBITDA margin of 11% [3] - Book value of CAD 81.6 million, approximately CAD 3.41 per share [3] - Cash and securities investments exceeding CAD 50 million [3] Strategic Focus - Unique Positioning: Mogo aims to combine high-growth fintech with a Bitcoin treasury strategy, targeting a 50/50 balance between wealth management and Bitcoin investments [3][11] - Bitcoin Treasury Program: - Launched in 2020, Mogo was one of the first public companies to adopt Bitcoin on its balance sheet [4] - Recent monetization of investment in WonderFi, a crypto exchange, with proceeds of nearly CAD 30 million expected from its acquisition by Robinhood [4] - Intelligent Investing Platform: - Subscription-based model designed to promote long-term wealth building through disciplined investment behavior [5] - Focus on attracting retail investors who have previously lost money in speculative trading [5][16] Regulatory and Market Opportunities - Crypto Trading Approval: Mogo is pursuing full regulatory approval for crypto trading, potentially becoming the second company in Canada to offer both crypto and equities trading [6][7] - Payments Business: - Carta Worldwide, focused on Europe, is experiencing organic growth of 15% in volume and over 20% in revenue [8] - Migration to Oracle Cloud to enhance scalability and cost efficiency [8] Market Trends and Consumer Behavior - Wealth Management: - Targeting the younger generation, with CAD 3 trillion in assets currently in underperforming mutual funds in Canada [14] - Emphasis on long-term investment strategies over speculative trading [15] - Consumer Shift: - Increasing disillusionment among retail investors with speculative platforms, leading to a search for more stable investment options [15][16] Financial Health and Future Outlook - Balance Sheet Strength: - Strong cash position with CAD 50 million in cash and investments, primarily from the WonderFi stake [10] - Ongoing stock buybacks due to perceived undervaluation [10] - Investment Strategy: - Mogo's investments will be benchmarked against Bitcoin returns, reinforcing a disciplined investment approach [11] Conclusion - Mogo is positioned to capitalize on the growing demand for integrated wealth management and cryptocurrency services, with a strong focus on regulatory compliance and consumer education. The company's dual compounding strategy aims to leverage both fintech growth and Bitcoin investments to drive long-term value for shareholders.