MoneyHero's Q2 2025: Contradictions Emerge on AI Integration, Digital Asset Partnerships, Insurance Revenue, and Growth Strategies

The above is the analysis of the conflicting points in this earnings call

Date of Call: None provided

Financials Results

• Revenue: $18.0M, down 13% YOY; up over 20% sequentially
• Gross Margin: 49%, compared to 33% in the prior year (implied from cost of revenue of 51% vs 67%)

Guidance:

• Expect over 20% sequential revenue growth through H2 2025.
• On track to achieve adjusted EBITDA breakeven in H2 2025.
• Growth to be driven by new bank/insurer actions, scaling insurance and wealth, and fixed-fee programs.
• Target insurance and wealth to comprise 28–30% of revenue in H2 to support margins.
• Cost of revenue expected to stay in the low 50% range with ongoing margin expansion and operating leverage.
• Longer-term objective (not formal guidance): 5–10% adjusted EBITDA margin over the next 2–3 years.

Business Commentary:

* Revenue Mix and Margin Improvement: - MoneyHero Group reported revenue of $18 million for Q2, down 13% year-over-year but with a 20% sequential increase. - The decline in revenue was due to the strategic shift to prioritize higher margin verticals like insurance and wealth, now contributing 27% of revenue.

• Profitability and Cost Discipline:
• Adjusted EBITDA loss narrowed to $2 million in Q2, compared to $9.3 million a year ago, with a net income of $0.2 million.

• This improvement was driven by reduced cost of revenue (51% of revenue, down from 67% in Q2 last year) and lower operating expenses thanks to AI integration and disciplined spending.

• AI Integration and Operating Leverage:

• AI integration is driving operational efficiency and reducing costs, leading to a flat headcount despite increasing throughput.

• Examples include AI customer support automating 70% to 80% of inquiries and AI competitive intelligence platform reducing manual research time by 90%.

• Insurance and Wealth Expansion:

• Insurance revenue grew from 11% to 14% of total revenue year-over-year, and wealth grew from 11% to 13%.
• Expansion in insurance and wealth verticals is part of MoneyHero's strategy to shift towards higher margin, more recurring revenue streams.

Sentiment Analysis:

• Revenue grew by over 20% sequentially; net income was $0.2M; adjusted EBITDA loss narrowed to ~$2M from $9.3M last year; cost of revenue improved to 51% vs 67% last year; management reiterated they are “on track for adjusted EBITDA breakeven in the second half of 2025.”

Q&A:

• Question from William R. Gregozeski (Greenridge Global LLC): You referenced AI usage—what specific initiatives are live and how do they impact costs and revenue?
  Response: AI is live across support, pricing/intelligence, and acquisition, automating 70–80% of inquiries and piloting a WhatsApp auto-insurance agent to lift conversion while cutting service and CAC without adding headcount.

• Question from William R. Gregozeski (Greenridge Global LLC): What are the key 2026 growth drivers, plans/milestones for insurance, and an update on wealth/crypto?
  Response: Scale insurance via deeper integrations and 3-click journeys, broaden to life; grow wealth/crypto through licensed partners (e.g., OSL) on CPA/rev-share/fixed fees; target insurance+wealth ≥30% mix, accelerate AI-driven conversion/CAC gains, expand to PH, and launch Credit Hero Club.

• Question from Stephen Wong (Speaker Capital): Q2 revenue declined YOY; what actions will restore revenue to last year’s level?
  Response: Reignite growth by scaling higher-margin insurance/wealth with real-time integrations, AI-assisted journeys (WhatsApp), member engagement (Credit Hero Club), and fixed-fee/sponsorship programs—targeting insurance+wealth at 28–30% of H2 revenue.

• Question from Stephen Wong (Speaker Capital): Revenue fell but net loss and EBITDA improved YOY—what drove the improvement?
  Response: Mix shift to higher-margin insurance/wealth (27% vs 20%), cost of revenue improved to 51% vs 67%, and operating costs down 37%, narrowing adjusted EBITDA loss to ~$2M (from $9.3M) and delivering $0.2M net income.