Mogo Inc.'s Q1 2025: Key Contradictions in Lending Strategy, AI Investments, and Revenue Guidance

Lending business strategy, investment in AI and profitability, guidance and revenue growth expectations, profitability and investment priorities, and growth expectations and economic uncertainty are the key contradictions discussed in Mogo Inc.'s latest 2025Q1 earnings call.



Mogo's Revenue Growth and Diversification:
- Mogo Inc. reported adjusted total revenue of $16.7 million in Q1 2025, up from $16.4 million in the prior year.
- The growth was driven by strong double-digit increases in wealth and payments revenue, offsetting a decline in interest revenue, reflecting a more cautious approach in lending due to economic uncertainty.

AI Integration and Transformation (Mogo 3.0):
- Mogo has initiated its Mogo 3.0 transformation, aiming to become an AI-native business, embedding intelligence across all aspects of its operations.
- This shift is expected to result in significant productivity gains, with potential productivity improvements of up to 20x in certain areas, enhancing the efficiency, speed, and user experience.

Wealth Business Expansion:
- Mogo's wealth revenue increased by 41% in Q1, driven by an improvement in user experience and value proposition, attracting higher-value users.
- The integration of both wealth and payments into a single AI-native app aims to enhance the user experience and value proposition, positioning Mogo as a leading wealth-building platform.

Payments Business Performance:
- Carta Worldwide, a wholly-owned subsidiary of Mogo, achieved a 34% year-over-year increase in volume to $3.2 billion in Q1.
- The growth was supported by better pricing and the completion of the OCI migration, which should facilitate future growth and achieve EBITDA positivity this year.