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]
MoneyHero (MNY) - 2025 Q2 - Earnings Call Transcript