MoneyHero's Q2 2025: Contradictions Emerge on Insurance Growth, AI Strategies, and Market Expansion

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

Date of Call: September 19, 2025

Financials Results

• Revenue: $18.0M, down 13% YOY; up over 20% sequentially

Guidance:

• Expect similar ~20% sequential revenue growth throughout H2 2025.
• On track for adjusted EBITDA breakeven in H2 2025.
• Insurance and wealth targeted to reach ~28%–30% of group revenue in H2.
• Growth drivers: new bank/insurer actions, scaling insurance/wealth, and fixed-fee programs.
• Maintain cost of revenue in the low 50s via reward calibration and approval quality.
• Longer term (not formal guidance): path to 5%–10% adjusted EBITDA margins over 2–3 years via mix shift, renewals, recurring wealth monetization, and AI-enabled operating leverage.

Business Commentary:

* Revenue Growth and Shift to Higher-Margin Verticals: - MoneyHero Limited reported $80 million in revenue for Q2 2025, with a 20% sequential increase. - The growth was driven by a strategic shift towards higher-margin verticals like insurance and wealth, contributing 27% of total revenue.

• Improved EBITDA and Cost Discipline:
• The company reported an adjusted EBITDA loss of $1.95 million in Q2, narrowing from the previous year.

• This improvement was due to disciplined cost management, with the cost of revenue falling to 51% of revenue, and operating expenses excluding net foreign exchange differences falling 37% year-over-year.

• AI Integration and Operational Efficiency:

• MoneyHero has integrated AI into various aspects of its business, including customer support, competitive intelligence, and media creation.

• This initiative has reduced customer acquisition costs, improved conversion rates, and allowed for flat headcount while increasing throughput.

• Insurance and Wealth Expansion:

• Insurance and wealth contributed 27% of group revenue in Q2, an increase from 22% the previous year.

• This growth was supported by partnerships with platforms like OSL, expanding the company's digital asset offerings, and streamlining insurance purchasing journeys.

• Provider Partnerships and Monetization:

• Strengthening provider partnerships led to new fixed fee opportunities and bolstered the company's brand.
• This strategy contributed to higher-quality revenue and enhanced MoneyHero's monetization engine.

Sentiment Analysis:

• Management highlighted >20% sequential revenue growth and reiterated “on track for adjusted EBITDA breakeven in the second half of 2025.” Profitability improved: net income of $0.2M vs. a $12.2M loss last year; adjusted EBITDA loss narrowed to ~$2M from $9.3M. Cost of revenue improved to 51% vs. 67% last year, and higher-margin insurance/wealth rose to 27% of revenue.

Q&A:

• Question from William Gregozeski (Greenridge Global LLC): Can you detail the AI initiatives—use cases, depth, and whether they drive cost savings or revenue?
  Response: AI is deployed in production to lower service costs and lift conversion (e.g., automating 70%–80% of support inquiries, competitive intelligence cutting manual work ~90%, and WhatsApp agent pilots to boost auto-insurance conversion) while keeping headcount flat.

• Question from William Gregozeski (Greenridge Global LLC): What are the key 2026 growth drivers, plans to scale insurance, and the latest on wealth/crypto expansion?
  Response: Core strategy is to scale high-margin insurance and wealth via deeper end-to-end integrations and licensed, capital-light partnerships to lift mix to ~30%+, with AI-driven conversion gains and new memberships expanding monetization.

• Question from Steven Wang (Speaker Capital): Q2 revenue declined YOY; what actions will restore revenue to last year’s level?
  Response: The YOY decline was intentional to prioritize mix and unit economics; momentum is back with >20% sequential growth, and recovery will be led by scaling insurance/wealth, AI-assisted journeys, member engagement, and fixed-fee programs.

• Question from Steven Wang (Speaker Capital): What specifically drove the improvement in EBITDA and net loss YOY despite lower revenue?
  Response: Profitability improved due to mix shift to higher-margin insurance/wealth (27% of revenue), lower cost of revenue (51% vs. 67% LY), and a 37% YOY reduction in operating expenses, aided by AI-enabled efficiency.