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