Orion Digital (ORIO) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly payments volume of $3.0 billion, up 23% year-over-year, and assets under management rose 22% to $409 million.

• Subscription & services revenue grew 12% year-over-year to $10.7 million; total revenue increased 9.3% to $17.7 million.

• Adjusted EBITDA reached $2.1 million in Q3 2024, maintaining a margin above 12%.

• Cash flow from operating activities before loan investments was $4.8 million, up 84% year-over-year.

• Membership base grew 4% year-over-year to 2.17 million, with over 2 million Canadian members and $409 million in AUM.

Financial highlights

• Gross profit was $11.9 million in Q3 2024, up from $11.4 million in Q3 2023; gross margin stable at 67.3%.

• Rule of 40 score improved to 24.4% in Q3 2024 from 4.3% a year ago.

• Adjusted net loss narrowed to $0.5 million in Q3 2024 from $1.5 million in Q2 2024.

• Cash, marketable securities, and investments totaled $36.2 million as of September 30, 2024.

• Cash and restricted cash increased to $12.4 million from $11.3 million in Q2 2024.

Outlook and guidance

• Raised 2024 adjusted EBITDA guidance to $6–$7 million, up from $5–$6 million.

• Introduced 2025 adjusted EBITDA guidance of $10–$12 million, a 69% year-over-year increase at the midpoint.

• Expects positive adjusted net income for 2025 for the first time.

• Forecasts subscription and services revenue growth of ~10% for 2024 and high single-digit growth for 2025.

• Revenue guidance for 2025 reflects the impact of a new rate cap lowering maximum APR from 47% to 34%.