Mogo Finance Technology’s Intelligent Investing Timeline and Lending Growth Priorities Clash in 2026 Earnings Call

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Date of Call: Aug 6, 2026

Financials Results

• Revenue: CAD 16.9 million, essentially unchanged from the prior year
• Gross Margin: 75%, increased from prior year

Guidance:

• Full year Adjusted EBITDA expected to be at the upper end or exceed the previous range of CAD 6 million-CAD 7 million.
• Second half Adjusted EBITDA expected to moderate from first half levels as lending originations increase and provisions normalize.
• Not changing Q1 guidance.

Business Commentary:

Profitability and EBITDA Growth:

• Orion Digital reported Adjusted EBITDA of CAD 3.3 million, up 115% sequentially and 70% year-over-year, with margins expanding to 19.5%.
• The growth was driven by continued growth in wealth, lower lending acquisition costs, lower loan loss provisions, and disciplined operating expense management.

Wealth Business Expansion:

• The company's Wealth revenue increased 14% to CAD 4.1 million, while assets under management in the consolidated wealth business rose 18% to CAD 545.3 million.
• This expansion was supported by the existing regulatory, operational, and technology foundation that facilitated the commercialization of the new Intelligent Investing platform.

Lending Operations and Risk Management:

• European transaction volume was CAD 2.8 billion, slightly up from the last quarter and stable year-over-year, with interest revenue declining 3%.
• The decline in interest revenue was due to a deliberate reduction in Mogo lending operations to maintain quality growth, focusing on deploying capital within specified return and liquidity requirements.

Cash Flow and Capital Allocation:

• Cash provided by operating activities was CAD 2.7 million, compared with CAD 900,000 in the prior year period, with core operating cash generation increasing by CAD 1.1 million or 29%.
• The improvement was attributed to enhanced profitability and operating discipline, allowing for strategic investments in growth and platform development while maintaining financial sustainability.

Intelligent Investing Launch:

• Orion Digital commercially launched Intelligent Investing, which pairs commission-free investing with AI-powered research and a structured decision-making system.
• The launch aims to address investor dissatisfaction with traditional platforms by focusing on performance and disciplined decision-making rather than merely rewarding trading activity.

Sentiment Analysis:

Overall Tone: Positive

• Management expresses being 'encouraged by what we’re seeing so far' with the new Intelligent Investing launch. They state 'Q2 was an important financial milestone' with Adjusted EBITDA up significantly and margins expanding. The tone is confident in the commercialization strategy and underpins 'meaningful earnings and cash generation capacity'.

Q&A:

• Question from Analyst (firm not specified): Regarding the Nasdaq notice about the minimum bid price requirement.
  Response: Management acknowledges the Nasdaq notice, states maintaining the listing is important, and emphasizes executing the business to close the disconnect between operating performance and market valuation.

Contradiction Point 1

Intelligent Investing Platform Rollout Timeline

Contradiction on when the Intelligent Investing platform rollout would begin.

Not specified (implied to be an investor/analyst) - Not specified (implied to be an investor/analyst)

2026Q2: The platform was launched on July 27. - [Dave Feller](CEO)

How is Intelligent Investing performing since its launch? - Scott Buck (HC Wainwright)

2025Q3: The rollout is expected to start later this month and continue into Q1. - [Dave Feller](CEO)

Contradiction Point 2

Lending Business Growth Contribution

Contradiction on whether lending is a primary growth driver or a strategic drag.

Not specified (implied to be an investor/analyst) - Not specified (implied to be an investor/analyst)

2026Q2: Growth in the lending portfolio is an output, not an objective... The strategy prioritizes durable earnings over near-term revenue maximization. - [Greg Feller](CFO)

How does the company allocate capital and manage its lending strategy? - Scott Buck (HC Wainwright)

2025Q3: Lending is a strategic asset... not the primary growth driver. The focus for top-line growth is on wealth and payments. - [Dave Feller](CEO), [Greg](Executive/Moderator)

Contradiction Point 3

Capital Allocation Priority

Contradiction on primary use of capital between business growth and strategic assets.

Not specified (implied to be an investor/analyst) - Not specified (implied to be an investor/analyst)

2026Q2: The priority is maintaining liquidity. The lending framework targets a return of ~18-24 months... Growth in the lending portfolio is an output, not an objective. The company is repaying debt and will invest in Intelligent Investing based on demonstrated customer engagement and economics. - [Greg Feller](CFO)

Can you explain the capital allocation framework and lending strategy? - Scott Christian Buck (H.C. Wainwright & Co, LLC, Research Division)

2025Q2: The plan is to do both. The company uses Bitcoin as a hurdle rate for investments. If they can achieve a return similar to or higher than Bitcoin in the core business, they will invest in the business; otherwise, excess cash will be allocated to Bitcoin. - [Gregory Dean Feller](CFO)

Contradiction Point 4

Cash Flow and Liquidity Management

Contradiction on the characterization of cash flow generation and liquidity position.

Not specified (implied to be an investor/analyst) - Not specified (implied to be an investor/analyst)

2026Q2: Cash provided by operating activities was CAD 2.7M. Core operating cash generation was CAD 5.1M, a 29% increase year-over-year... Total cash declined by ~CAD 500K to CAD 25.1M. - [Greg Feller](CFO)

Can you break down the cash flow for the quarter? - Scott Buck (H.C. Wainwright)

2025Q1: The goal is to remain EBITDA positive while making necessary AI investments... The company believes it can balance investment with maintaining positive EBITDA. - [Greg Feller](CFO)

Contradiction Point 5

Outlook for Full-Year Financial Performance and Guidance

Contradiction on the expected trajectory of Adjusted EBITDA and financial conservatism.

Not specified (implied to be an investor/analyst) - Not specified (implied to be an investor/analyst)

2026Q2: Full-year Adjusted EBITDA is expected to be at the upper end or exceed the previous guidance range of CAD 6M-CAD 7M. Second-half performance will moderate due to planned increases in lending originations and marketing investment... - [Greg Feller](CFO)

Could you discuss Q2 financial results and the year's outlook? - Scott Buck (H.C. Wainwright)

2025Q1: No change to annual guidance at this time. The company is taking a conservative approach due to economic uncertainty and will reassess later. - [Greg Feller](CFO)

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