Mogo Reports Positive Net Income and Strong Growth in Wealth and Payments in Q2 2025

Executive Summary

• Mogo Inc. reported financial and operational results for the second quarter ended June 30, 2025, highlighting a net income of $13.5 million driven largely by mark-to-market gains from its WonderFi investment.
• The company demonstrated strong top-line growth, with Wealth Revenue up 48% and Payments Revenue up 23% year-over-year, while achieving an Adjusted EBITDA margin of 11.4%.
• Mogo announced a strategic expansion into cryptocurrency, including a $50 million Bitcoin treasury authorization, the acquisition of a stake in Digital Commodities Capital Corp., and plans to seek regulatory approval for crypto trading on its platform.

Key Details

• Net Income: $13.5 million for Q2 2025, primarily driven by $12.7 million in mark-to-market gains from the revaluation of Mogo’s WonderFi position following Robinhood's acquisition announcement.
• Revenue Growth:
  • Wealth Revenue increased 48% year-over-year.
  • Payments Revenue increased 23% year-over-year.
  • Adjusted Subscription & Services Revenue growth accelerated to 13% year-over-year (up from 10% in Q1 2025).
• Profitability Metrics:
  • Adjusted EBITDA: $1.9 million (11.4% margin), up from $1.1 million in Q1 2025 and $1.4 million in Q2 2024.
  • Gross Profit: $12.2 million (up from $11.8 million in Q2 2024); Gross margin expanded to 72.0% from 67.0%.
  • Operating Cash Flow: $0.9 million; $6.2 million before investment in loan receivables.
  • Rule of 40 Score: 24.4 (13% growth + 11.4% margin), up from 16.4 in Q1 2025.
• Balance Sheet & Capital:
  • Total Cash, Marketable Securities & Investments: $50.8 million ($10.8M cash/restricted, $30.1M marketable securities, $9.9M private investments).
  • Book Value: $81.6 million ($3.41 per share).
  • Share Repurchases: 523,091 shares repurchased in Q2 2025 (~2% of outstanding); 1.64 million shares repurchased since June 2022 (6.9% of current outstanding).
• Bitcoin & Crypto Strategy:
  • Board approved up to $50 million in Bitcoin allocations in July 2025, funded through excess cash and monetization of investments.
  • Invested $1.0 million in Bitcoin ETFs in June 2025 and an additional $1.4 million post-quarter-end.
  • Acquired a 9% stake ($1.0 million) in Digital Commodities Capital Corp. in July 2025.
  • Announced Bitcoin integration across product lines: Wealth (60/40 equity/Bitcoin portfolio), Lending (Bitcoin-backed credit products), and Payments (stablecoin infrastructure exploration).
  • Seeking regulatory approval to offer crypto trading on its platform, which would make Mogo one of only two companies in Canada authorized to offer both equities and crypto on a single integrated platform.
• Operational Metrics:
  • Total Members: 2.25 million (up 5% year-over-year).
  • Assets Under Management (AUM): Record $462 million (up 18% year-over-year).
  • Carta Payment Volume: $2.8 billion in Q2 2025; European payment volume (excluding exited Canadian market) increased 15% year-over-year.
• Strategic Transactions:
  • WonderFi entered a definitive agreement to be acquired by Robinhood in May 2025; transaction expected to close in the second half of 2025.
• Guidance: Mogo reiterated its full-year financial guidance as previously communicated on March 20, 2025.

Notable Quotes

• David Feller, Founder & CEO: “We continued to strengthen and expand our Intelligent Investing wealth platform during the second quarter... The growth we’re seeing reflects a shift in investor behavior - a growing preference for long-term discipline over short-term speculation.”
• David Feller, Founder & CEO: “We also began moving forward with our plan to enable crypto trading alongside equities... If approved, Mogo would become one of only two companies in Canada authorized to offer both asset classes through a single, integrated, regulated platform. This is not just a product expansion, it’s the foundation for a structural moat.”
• Greg Feller, President & CFO: “This was one of our strongest quarters ever; profitable, cash-flow positive, and increasingly aligned with our long-term capital strategy... That’s a real-time example of our dual-compounding strategy at work: combining long-term operational growth with strategic capital appreciation.”