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Mogo Finance Technology (TSE:MOGO)
TSX:MOGO

Mogo Finance Technology (MOGO) AI Stock Analysis

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Mogo Finance Technology

(TSX:MOGO)

Rating:52Neutral
Price Target:
C$2.00
▲(7.53%Upside)
Mogo's stock score is primarily influenced by financial performance improvements and technical momentum. The strategic shift towards AI and growth in key segments are positive, but profitability issues and high leverage remain significant concerns.
Positive Factors
Acquisition
Acquisition of WonderFi further strengthens the balance sheet and provides growth capital.
Monetization
Monetization within investment portfolio is seen as a positive catalyst for undervalued MOGO shares.
Negative Factors
Operational Changes
The exit from the institutional brokerage business may cause temporary disruption in 2025 results and lower overall revenue.
Risks
Risks include technology risk, performance of referral partnerships, cybersecurity, credit risk, liquidity risk, dilution risk, and increasing level of macroeconomic uncertainty.

Mogo Finance Technology (MOGO) vs. iShares MSCI Canada ETF (EWC)

Mogo Finance Technology Business Overview & Revenue Model

Company DescriptionMogo Finance Technology Inc. (MOGO) is a Canadian-based financial technology company that offers a range of innovative financial solutions to consumers to help them manage and improve their financial health. The company's platform provides products such as personal loans, identity fraud protection, a digital spending account, and a credit score monitoring service. Mogo aims to empower consumers by offering easy access to a variety of financial tools through a user-friendly mobile app and online portal.
How the Company Makes MoneyMogo Finance Technology makes money primarily through interest income generated from its personal loan products, fees associated with its digital financial services, and subscription fees from its premium offerings. The company's revenue model is largely based on its ability to attract users to its platform and convert them into paying customers for its various financial products and services. Mogo also generates revenue through partnerships with other financial institutions and companies, which help to expand its customer base and increase its market reach. Additionally, Mogo leverages data analytics to optimize its customer acquisition strategies and drive further revenue growth.

Mogo Finance Technology Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q4-2024)
|
% Change Since: 22.37%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted growth in revenue, cash position, and assets under management, with a strategic shift towards wealth and payments segments. However, the exit from the institutional brokerage business, decline in interest revenue, and cautious lending approach were notable negatives. Overall, the highlights and lowlights were balanced.
Q4-2024 Updates
Positive Updates
Revenue Growth in 2024
Mogo Inc. grew revenue by 9% to $71.2 million in 2024, with a 16% increase in wealth revenue and a 21% increase in payments revenue.
Strong Cash and Investments Position
The company ended 2024 with $49.1 million in cash, marketable securities, and investments, an increase from $36.2 million in Q3.
Assets Under Management Growth
Assets under management in the wealth segment grew 22% year-over-year, reaching $428 million.
Payments Volume Increase
Payment volume processed increased by 16% year-over-year to $11.5 billion.
Subscription Services Revenue Growth
Subscription services revenue increased by 11% year-over-year.
Positive Net Income
The company reported a positive net income of $10.4 million for Q4 2024.
Strategic Focus on High-Growth Areas
Mogo is focusing on scaling wealth and payments segments, with projected revenues expected to grow by 20%-25% and mid to high teens, respectively, in 2025.
Negative Updates
Exit from Institutional Brokerage Business
Mogo decided to exit its institutional brokerage business, which contributed $1.6 million in Q4 2024 but provided negligible operating margin.
Interest Revenue Decline
Interest revenue declined by 3% in Q4 2024, with a projected decrease of 8%-10% in 2025.
Adjusted EBITDA Decline
Adjusted EBITDA for 2024 was $6.7 million, a decrease from $7.7 million in 2023.
Cautious Approach to Lending
Due to economic uncertainty, Mogo is taking a cautious approach to lending, impacting interest revenue projections.
Company Guidance
During the Mogo Inc. Q4 2024 Financial Results Conference Call, the company provided a comprehensive update on its financial performance and strategic outlook. In 2024, Mogo achieved a 9% increase in revenue, reaching $71.2 million, largely fueled by a 16% rise in wealth revenue and a 21% increase in payments revenue. Adjusted EBITDA for the year was $6.7 million, aligning with the middle of the company's guidance range. The company reported $49.1 million in cash, marketable securities, and investments at year-end, up from $36.2 million in Q3. Assets under management in the wealth segment grew 22% year-over-year to $428 million, while payments revenue hit $8.6 million with a 16% increase in total payments volume to $11.5 billion. Looking forward, Mogo projects 20-25% growth in wealth revenue and mid to high teens growth in payments for 2025. The company is strategically exiting its institutional brokerage operations to focus on high-margin areas and extended its credit facility to 2029 with lower interest rates.

Mogo Finance Technology Financial Statement Overview

Summary
Mogo Finance Technology is experiencing revenue growth but faces challenges with high costs leading to negative profitability metrics. The balance sheet shows moderate leverage but declining equity, posing financial risks. Recent positive shifts in cash flow are promising but need to be sustained.
Income Statement
40
Negative
Mogo Finance Technology has shown a notable increase in revenue from the previous period, but the company is struggling with negative gross profit and net margins, indicating high costs relative to revenue. The EBIT and EBITDA margins are significantly negative, reflecting operational inefficiencies and potentially high fixed costs.
Balance Sheet
45
Neutral
The company has a moderate debt-to-equity ratio, suggesting a balanced use of leverage. However, the negative return on equity and low equity ratio highlight challenges in generating returns for shareholders and maintaining financial stability. The decline in stockholders' equity indicates potential risks.
Cash Flow
55
Neutral
There is a positive shift in operating cash flow and free cash flow, suggesting improvements in cash generation. The free cash flow to net income ratio is positive, indicating better cash management, although the company has faced challenges in previous years.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
70.14M64.83M68.95M57.52M44.24M59.80M
Gross Profit
-2.33B46.27M46.24M46.04M35.50M41.02M
EBIT
-2.37B-3.88M-33.48M-33.94M2.31M-3.65M
EBITDA
9.97M-2.20M-43.53M-4.46M2.13M17.01M
Net Income Common Stockholders
-15.55M-17.89M-165.68M-33.21M-26.98M-21.92M
Balance SheetCash, Cash Equivalents and Short-Term Investments
0.0016.13M29.27M69.21M12.12M5.37M
Total Assets
0.00207.76M221.49M393.87M104.47M151.10M
Total Debt
0.0088.90M87.73M88.72M91.39M5.21M
Net Debt
0.0072.76M58.46M19.52M79.27M-159.00K
Total Liabilities
0.00114.04M110.61M124.09M99.23M149.35M
Stockholders Equity
-32.45M93.72M110.89M269.78M5.24M-92.75M
Cash FlowFree Cash Flow
7.88M-12.59M-34.95M-37.61M38.99M-24.30M
Operating Cash Flow
11.51M-9.17M-27.01M-29.64M43.80M-15.21M
Investing Cash Flow
-18.78M-3.09M-9.15M-39.59M-4.82M-9.09M
Financing Cash Flow
-673.00K-1.02M-3.08M125.86M-37.28M14.27M

Mogo Finance Technology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.86
Price Trends
50DMA
1.52
Positive
100DMA
1.57
Positive
200DMA
1.65
Positive
Market Momentum
MACD
0.10
Positive
RSI
53.79
Neutral
STOCH
8.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MOGO, the sentiment is Positive. The current price of 1.86 is below the 20-day moving average (MA) of 1.87, above the 50-day MA of 1.52, and above the 200-day MA of 1.65, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 8.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MOGO.

Mogo Finance Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSNOW
63
Neutral
C$51.78M13.66679.89%-10.35%
62
Neutral
$11.80B10.37-7.29%2.91%7.39%-7.96%
52
Neutral
$45.52M-27.51%5.92%-54.25%
44
Neutral
C$21.54M
271.43%15.04%
43
Neutral
C$21.20M-1525.80%-7.43%30.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MOGO
Mogo Finance Technology
1.86
-0.35
-15.84%
TSE:PLUR
Plurilock Security Inc
0.27
-0.08
-22.86%
TSE:NOW
NowVertical Group Inc
0.56
0.37
194.74%
TSE:CLIP
Clip Money Inc.
0.22
0.02
10.00%

Mogo Finance Technology Corporate Events

Business Operations and StrategyFinancial Disclosures
Mogo Inc. Reports Strong Q1 2025 Growth and AI-Driven Transformation
Positive
May 8, 2025

Mogo Inc. reported its Q1 2025 financial results, highlighting significant growth in its Wealth and Payments segments, with revenues increasing by 41% and 34% respectively over the previous year. Despite a slight decrease in total revenue due to exiting a low-margin legacy brokerage business, Mogo maintained a solid balance sheet and positive cash flow. The company launched MOGO 3.0, an initiative to become fully AI-native, aiming to improve margins, accelerate product development, and enhance customer experiences. Mogo also renewed and lowered the rate on its credit facility, extended its maturity, and continued to expand its AI-powered offerings, indicating a strategic focus on long-term growth and innovation.

Business Operations and StrategyFinancial Disclosures
Mogo Inc. Reports Strong Q4 2024 Results with Strategic Growth in Wealth and Payments
Positive
Mar 20, 2025

Mogo Inc. reported a net income of $10.4 million for Q4 2024, with total revenue increasing by 5% to $71.2 million for the fiscal year. The company saw significant growth in its Wealth and Payments segments, with revenues increasing by 19% and 27% respectively in Q4. Mogo’s strategic focus on improving cash flow resulted in a 53% increase in cash flow from operations for the year. The company is positioning itself for long-term growth by intensifying investments in key areas, supported by a renewed and enhanced credit facility.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.