Mogo Finance Technology (MOGO) AI Stock Analysis

• Market Cap: C$41.60M
• Dividend Yield: N/A
• Average Volume (3M): 55.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: 5.92%
• EPS Growth: -54.25%
• Country: CA
• Employees: 255
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): -0.06
• Shares Outstanding: 24,472,378
• 10 Day Avg. Volume: 30,747
• 30 Day Avg. Volume: 55,337
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$5.48
• Price Target Upside: 222.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: C$1.50 ▼(-11.76%Downside)

Mogo's overall stock score is primarily driven by concerns over financial stability due to high leverage and negative earnings, despite revenue growth and cash flow improvements. Technical indicators suggest mixed momentum, while valuation metrics indicate ongoing profitability challenges. The strategic shift towards AI and growth in key segments provide a positive outlook, balancing some of the financial risks.

Positive Factors

Acquisition

Acquisition of WonderFi further strengthens the balance sheet and provides growth capital.

Investment Portfolio

Monetization within investment portfolio is seen as a positive catalyst for undervalued MOGO shares.

Operational Performance

Mogo's first-quarter revenue exceeded expectations, demonstrating strong operational performance.

Negative Factors

Business Exit

The exit from the institutional brokerage business may cause temporary disruption in 2025 results and lower overall revenue.

Technology and Credit 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 Business Overview & Revenue Model

Company Description

Mogo Inc. operates as a financial technology company in Canada and internationally. The company provides digital solutions to the consumers to get in control of their financial health. It offers Mogo app to access a digital spending account with Mogo Visa Platinum Prepaid Card; MogoCrypto that enables the buying and selling of bitcoin; MogoProtect, a free ID fraud protection and monthly credit score monitoring; MogoMortgage, a digital mortgage experience; and MogoMoney that provides access to personal loans. The company also offers Mogo Trade, a free stock trading platform with real-time stock quotes and funding; and Mogo Ventures to manage its existing investments in strategic partners and companies. In addition, it operates Carta, a digital payments software platform that enable financial technology companies, banks, and corporations to issue payment products to consumers via multiple channels, including physical, virtual, and tokenized cards, as well as payment switching and routing services. Mogo Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Mogo 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 Financial Statement Overview

Summary

Mogo Finance Technology is showing revenue growth and improved cash flow, indicating a potential turnaround. However, profitability challenges and high leverage with negative net income and high debt levels are concerning factors.

Income Statement

Mogo Finance Technology has shown a positive revenue growth of approximately 9.7% in 2024 compared to 2023, indicating potential upward momentum. However, the company continues to face profitability challenges with negative net and EBIT margins. The gross profit margin remains strong at around 79.6% for 2024, but the persistent negative net income raises concerns about the overall financial health.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, indicative of significant leverage, with total debt exceeding 100% of stockholders' equity in 2024. While there is a notable reduction in stockholders' equity over recent years, the equity ratio is relatively stable. The high debt levels pose a risk to financial stability.

Cash Flow

The cash flow statement shows improvement with positive free cash flow in 2024, a significant recovery from 2023's negative figures. Additionally, the operating cash flow to net income ratio indicates a much healthier cash flow generation compared to net losses. This suggests a potential turnaround in operational cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.15M	64.83M	68.95M	57.52M	44.24M
Gross Profit	56.62M	46.27M	46.24M	46.04M	35.50M
EBITDA	7.13M	-2.20M	-43.53M	-4.46M	2.13M
Net Income	-13.68M	-17.89M	-165.68M	-33.21M	-26.98M
Balance Sheet
Total Assets	189.65M	207.76M	221.49M	393.87M	104.47M
Cash, Cash Equivalents and Short-Term Investments	8.53M	16.13M	29.27M	69.21M	12.12M
Total Debt	85.62M	88.90M	87.73M	88.72M	91.39M
Total Liabilities	108.43M	114.04M	110.61M	124.09M	99.23M
Stockholders Equity	81.22M	93.72M	110.89M	269.78M	5.24M
Cash Flow
Free Cash Flow	15.23M	-12.59M	-34.95M	-37.61M	38.99M
Operating Cash Flow	15.31M	-9.17M	-27.01M	-29.64M	43.80M
Investing Cash Flow	-18.60M	-3.09M	-9.15M	-39.59M	-4.82M
Financing Cash Flow	-4.29M	-1.02M	-3.08M	125.86M	-37.28M

Mogo Finance Technology Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MOGO, the sentiment is Neutral. The current price of 1.7 is below the 20-day moving average (MA) of 1.75, above the 50-day MA of 1.67, and above the 200-day MA of 1.66, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MOGO.

Mogo Finance Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
MOGO	49 Neutral	C$41.60M	―	-27.51%	―	5.92%	-54.25%
FTRC		C$34.16M	―		―	―	―
FOBIF		$6.55M	―		―	―	―
NOW	63 Neutral	C$59.32M	15.37	679.89%	―	-10.35%	―
CLIP	48 Neutral	C$24.14M	―		―	271.43%	15.04%
PLUR	43 Neutral	C$16.49M	―	-1525.80%	―	-7.43%	30.13%

Mogo Finance Technology Corporate Events

Mogo Seeks Extension on Warrant Expiry Dates

Mogo Inc. has applied to the Toronto Stock Exchange to extend the expiry date of over 1.1 million common share purchase warrants by one year, from June 13, 2025, to June 13, 2026. This extension, pending approval from the TSX and warrantholders, aims to provide additional time for warrant holders to exercise their rights, potentially impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (TSE:MOGO) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Mogo Finance Technology stock, see the TSE:MOGO Stock Forecast page.

Mogo Inc. Reports Strong Q1 2025 Growth and AI-Driven Transformation

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.