Orion Digital (ORIO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $17.6 million, up 10% year-over-year, with continued investment in the wealth platform, new strategic partnerships, and a member base of 2.1 million.

• Payments volume increased 12% year-over-year to $2.8 billion, and assets under management in wealth businesses rose 15% to $393 million.

• Adjusted EBITDA for Q2 was $1.4 million, and cash, marketable securities, and investments totaled $41.5 million at quarter end.

• The company repurchased ~5% of shares outstanding between Q2 2022 and Q2 2024.

• Mogo holds a $20.2 million crypto investment portfolio, including a significant stake in WonderFi.

Financial highlights

• Gross profit was $11.8 million in Q2 2024, with gross margin improving to 67.5% from 64.5% in Q1 2024.

• Operating expenses held steady at $13.1 million year-over-year, with a 4% increase in revenue per employee.

• Adjusted EBITDA was $1.4 million (7.8% margin), down from $1.8 million (11.5% margin) in Q2 2023.

• Adjusted net loss was $3.6 million, compared to $3.0 million in Q2 2023; net loss was $12.4 million, mainly due to an $8.3 million non-operating revaluation loss.

• Cash flow from operating activities before investment in gross loans receivable was $3.8 million, up 78% year-over-year.

Outlook and guidance

• Expects subscription & services revenue growth in the mid-teens percentage for fiscal 2024.

• Adjusted EBITDA for fiscal 2024 projected between $5.0 and $6.0 million.

• Management anticipates monetization opportunities from the investment portfolio over the next 12 months.