Orion Digital (ORIO) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong double-digit growth in wealth (41%) and payments (34%) revenue year-over-year, despite a 3% decrease in total revenue due to the exit from the low-margin institutional brokerage business.

• Adjusted revenue reached $16.7 million, up 2% year-over-year, with positive adjusted EBITDA of $1.1 million (6.1% margin), and a continued focus on AI-driven transformation (Mogo 3.0).

• Membership base grew to 2.22 million, up 5% year-over-year, with assets under management rising 8% to $436 million.

• The company is embedding AI across all operations, consolidating platforms, and automating workflows for efficiency and scalability.

• Net loss was $11.9 million, impacted by an $8.3 million non-operating revaluation loss on marketable securities.

Financial highlights

• Adjusted total revenue for Q1 was $16.7 million, up from $16.4 million in the prior year, driven by double-digit growth in wealth and payments.

• Gross profit was $11.6 million, with gross margin improving to 67.0% from 64.5% in Q1 2024.

• Adjusted EBITDA was $1.1 million (6.1% margin), a modest increase year-over-year.

• Adjusted net loss for the quarter was $1.5 million, slightly improved from $1.6 million in Q1 2024.

• Cash flow from operations before investment in gross loan receivables was $3.8 million, up 108% year-over-year.

Outlook and guidance

• Fiscal 2025 guidance reiterated: subscription & services revenue expected to grow at a mid- to high single-digit rate, excluding the exited brokerage business.

• Wealth revenue projected to increase 20–25% and payments revenue to grow in the mid- to high teens percentage range in 2025.

• Lending interest revenue expected to decrease by 8–10% due to a more cautious lending approach.

• Adjusted EBITDA for 2025 expected in the range of $5 to $6 million.

• Guidance remains conservative due to ongoing market volatility and economic uncertainty.