Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenue of $21.1 million, representing a 17% increase quarter-on-quarter and a 1% increase year-on-year, marking the second consecutive quarter of double-digit sequential revenue growth [5][15] - Adjusted EBITDA loss improved by 68% year-on-year to negative $1.8 million, with the adjusted EBITDA margin improving from minus 26.5% to minus 8.4% [5][19] - Over the past nine months, adjusted EBITDA improved 67% year-on-year, while net loss narrowed from $19.6 million to $5.7 million [5][6] Business Line Data and Key Metrics Changes - Insurance revenue grew 13% year-on-year to $2.3 million, while wealth revenue increased by 5% to $2.6 million, together accounting for 23% of group revenue, up from 21% a year ago [6][16] - Operating costs, excluding foreign exchange, fell 13% year-on-year to $23.9 million, with technology costs decreasing from $2 million to $0.9 million and employee benefit expenses dropping from $5.7 million to $4.2 million [7][18] Market Data and Key Metrics Changes - Singapore's revenue rose to $10.2 million from $7.9 million a year ago, while Hong Kong delivered $7.5 million in revenue, slightly lower year-on-year but in line with expectations [16][17] - Taiwan and the Philippines reported revenues of $1 million and $2.4 million, respectively, showing gradual recovery [17] Company Strategy and Development Direction - The company is focused on delivering healthy annual revenue growth, continued margin expansion, and sustained positive free cash flow through a shift towards higher-margin products and AI-enabled operating leverage via Project Odyssey [4][10] - The strategic pivot aims to build durable compounding earnings power rather than chasing volume-led growth, with a clear path for high-margin verticals to take a larger share of revenue [6][12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in Q4 being the first quarter of positive adjusted EBITDA since listing, driven by a stronger revenue mix and improved cost structure [11][20] - The company anticipates solid top-line growth and meaningful improvement in profitability for the full year 2026, with a focus on scaling high-margin verticals [12][26] Other Important Information - Project Odyssey is a core pillar for medium-term value creation, integrating various AI-driven capabilities to enhance operational efficiency and improve unit economics [9][10] - The company plans to pursue disciplined capital allocation, focusing on organic investments and potential M&A opportunities that align with its AI-enabled operating model [35][36] Q&A Session Summary Question: What is the plan for the crypto segment? - The company plans to integrate digital assets into broader wealth journeys without setting standalone revenue targets, viewing it as an upside within the wealth segment [27][29] Question: Can you elaborate on the AI displacement risk? - Management sees AI as an amplifier of value rather than a risk, emphasizing their role in aggregating and curating data across various financial platforms [30] Question: Any further partnership potential? - The company is exploring partnerships within the ecosystem, particularly in Hong Kong, to create value through strategic collaborations [31] Question: Why is there a significant improvement in Adjusted EBITDA despite flat revenue? - The improvement is attributed to a high-quality revenue mix and structurally lower operating costs, reflecting the execution of a strategic reset [24][25] Question: How is the Credit Hero Club performing? - The Credit Hero Club is expected to enhance the personal loan segment, particularly during tax loan season, by providing personalized offers based on credit profiles [38][39] Question: Outlook for different segments in 2026? - The company anticipates a shift towards higher-margin verticals, with credit cards remaining a core vertical while personal loans and insurance are expected to drive margin improvements [40][41]
MoneyHero (MNY) - 2025 Q3 - Earnings Call Transcript