MoneyHero Limited

this non-IIFRS measures to the most directly comparable IFRS measures, please refer to our earnings release and SEC filings. Lastly, a webcast replay and a script of this conference call will be available on our IR website. Joining me today are Rocky Murphy, CEO, and Daniel Lo, CFO. Our management will share the strategy and business updates, operating highlights, and financial performance for the third quarter of 2025. This will be followed by a Q&A section. With that, let me turn the call over to Rohit.

Thank you, Meena. Hello, everyone, and thank you for joining us. This is our final earnings call of 2025, and it marks the inflection point where Money Hero completes its strategic reset and enters the next phase. with an immediate line of sight to structural profitability and value creation than at any point since listing. Now, before getting into the quarter, I want to anchor the long-term picture, because this really frames where the company is heading and why we believe our execution will ultimately be reflected in a share price that better matches our intrinsic value. Now, over the next few years, we expect to deliver healthy annual revenue growth, continued margin expansion, and sustained positive free cash flow. Driven by our ongoing revenue makeshift towards higher margin products, AI-enabled operating leverage through Project Odyssey, and structurally lower operating costs and the new growth engines launched in Q4. This is the algorithm guiding the company and it's the lens through which we want investors to view our performance as we move through Q4 and into our medium-term trajectory. Now, let me get into Q3, where this turnaround has become visible. Now, Q3 delivered $21.1 million in revenue, up 17% quarter on quarter and 1% year on year. This was our second consecutive quarter of double-digit sequential revenue growth, reflecting a recovery built on healthier unit economics rather than volume alone. More importantly, Q3 makes the structural operating leverage of the model more visible. Adjusted EBITDA loss improved 68% YOY to negative $1.8 million, and adjusted EBITDA margin improved over 1,800 basis points YOY from minus 26.5% to minus 8.4%. Over the past nine months, adjusted EBITDA improved 67% YOY while our net loss narrowed from $19.6 million to $5.7 million. This is not one-off. It's a continuation of the trend we have been signaling all year and a foundation for closing the valuation gap that exists today. Now let me talk about the revenue mix. Our revenue quality is materially stronger than what it was 18, 24 months ago. Insurance and wealth now account for 23% of revenue, with insurance up 13% YOY and wealth up 5% YOY. We see a clear path for our high margin verticals to take on meaningfully larger share of our revenue mix over the next few years. These verticals already deliver twice the incremental profitability of our lower margin verticals even before AI upside. This deliberate mix shift we have been signaling combined with disciplined capital allocation into these segments is central to how we're building durable compounding earnings power rather than chasing volume-led growth. I would like to talk about the cost base now. Our operating costs, excluding FX, fell 13% YOY to $23.9 million. Our tech costs dropped from $2 million to $0.9 million. Employee benefit expenses from $5.7 million to $4.2 million, with 70% to 80% of our service inquiries now automated. We expect operating costs such as tech costs, employee benefit expenses, and other operating expenses to remain broadly flat next year against strong revenue growth, a clear demonstration of margin-first execution. In practical terms, this means incremental revenue will increasingly flow through to the bottom line, reinforcing our confidence in sustaining profitable growth once we cross the Q4 inflection point. I would like to talk about Project Odyssey and how this is a strategic advantage and not just efficiency. Now, Project Odyssey is a core pillar of our medium-term value creation. It brings together performance marketing, content automation, credit scoring intelligence, membership enrichment, conversational journeys, and service automation into a single, coordinated AI stack. Our pilots are already live, and we expect steady improvements in CAC efficiency, approval prediction, funnel conversion, and reward optimizations, while automating more than 60% of service interactions without increasing headcount. Based on the work streams launched this year and pipeline schedule for 2026, we see Project Odyssey driving meaningful uplift in unit economics across every major vertical, from lower CAC for approved customer and higher approval quality to our trans-union powered models to smarter routing across lenders and insurance, better organic traffic efficiency, and a higher repeat usage through membership and personalized journeys. When aggregated, these work streams are projected to deliver a substantial improvement in annual EBITDA over the next few years, with further upside as adoption deepens. Importantly, Odyssey is being trained on providing right intent behavioral approval data from 8.8 million members, giving us a defensible data mode and positioning MoneyHero as one of the region's first AI-native financial decisioning platforms. This is not just an efficiency program. It's a structural driver of margin expansion and a key catalyst for our long-term re-rating potential. It also reinforces our regulatory first approach as we design AI journeys to closely align with regulators and partners to ensure suitability, transparency, and consumer protection are all embedded from day one. I would like to talk about Q4 now, the profitability inflection. We expect Q4 adjusted EBITDA to be positive. The first profitable quarter on an adjusted EBITDA basis since listing. And this is driven by the mixed ailments in insurance and wealth, strong partner budgets in Singapore and Hong Kong, growth in Hong Kong personal loans through the newly launched Credit Hero Club and the tax loan season, the cost reset already in the P&L, and ongoing improvements in marketing efficiency. Q4 will be the inflection point that we have been signaling all year. The catalyst for the business to be viewed fundamentally different in the market. From there, the focus shifts from proving profitability once to delivering it consistently and scaling it with AI and high margin verticals doing more of the heavy lifting while the cost base remains tightly controlled. Now, in terms of value creation, as we think about closing the gap between our intrinsic value and share price, I would like to sort of speak directly to why we believe our progress will ultimately be reflected in a share price that better matches our intrinsic value. Firstly, after proving profitability in Q4, we will consistently deliver and scale it. For the full year, 2026, next year, we target to drive solid top-line growth, meaningful improvement in profitability, and a further revenue mix towards insurance and wealth, moving beyond the roughly 23% they contribute today into the next band of our revenue mix. Second, we will open the equity story with more proactive IR, clear medium-term guidance, and more emphasis on our mixed shifts. and our Odyssey-driven margin expansion and our leadership in a fragmented market. Sequential revenue growth of 26% and 17% in the past two quarters already show what the new foundation can deliver. Third, we will pursue disciplined capital allocation and strategic optionality. Our priorities are clear, invest in Odyssey, the Credit Hero Club, and real-time car insurance journeys, explore consolidation opportunities where we can unlock revenue and cost synergies, and evaluate share repurchases once free cash flow is established. Across global fintech, there are very few companies capable of combining profitable growth, structural expansion, and capital-like free cash flow And our objective is to make it increasingly obvious that Money Hero belongs in that group. I would like to close with a summary. 2024 was the year of reset. 2025 was the rebuild and path to profitability. 2026 will be the profitable scale up. Thank you. I'll now hand it over to Danny for our detailed financial review.

Thank you, Rohit. And hello, everyone. I'll take the next several minutes to walk through our third quarter financials with a focus on data, the operational drivers behind the numbers, and how the financial profile of the business continues to evolve. Let me begin with revenue. For the third quarter, we reported $21.1 million in revenue. representing 17% sequential increase from Q2 and a 1% year-over-year growth. This is now our second consecutive quarter of double-digit sequential revenue growth, and it demonstrates a consistent recovery pattern built on healthy unit economics rather than the volume-driven growth we saw prior to the model reset last year. That 1% year-over-year increase needs to be interpreted in the context of the deliberate reshaping of our volume mix. As we have outlined in prior quarters, the company intentionally scaled back lower margin products, such as credit cards. So the modest headline revenue growth is a sign that the strategic pivot is working as intended. We are growing again, but this time on a structurally stronger base. What gives us the confidence is the quality of revenue. which continues to improve. Insurance revenue grew 13% year-on-year to $2.3 million, and wealth revenue grew 5% to $2.6 million. Together, they represent 23% of group revenue compared to 21% a year ago. The SHIP reflects a fundamental change in our foundation, one that is already raising margins, improving predictability, and strengthening the durability of earnings. Both internal data and external research highlight insurance and wealth as the core engines of long-term gross profit compounding. And the Q3 data confirms that momentum. Looking geographically, Singapore was a standout performer with revenue rising to 10.2 million versus 7.9 million a year ago. That growth reflects improved approval quality healthier participation from banks and insurers, and broader product debt. Hong Kong delivered $7.5 billion in revenue, slightly lower year-on-year, but in line with our expectation due to the proactive reduction of low-margin credit card campaigns. Importantly, Hong Kong showed sequential stabilization as car insurance integration deepened and Credit Hero Club continued to scale membership. Taiwan and the Philippines, which were affected last year by the exit of Citibank's operations, came in at $1 million and $2.4 million respectively. These markets are recovering gradually, consistent with partners' own acquisition strategy resets. Needed market is yet back to full run rate, but the operational issues seen earlier in the year are now largely behind us. Now let me turn to operating expenses. Operating costs excluding ethics fell to 23.9 million, a 13% reduction year over year. This is consistent with our stated objective of reshaping our cost base and reflects progress across every major category. Advertising and marketing costs declined as we executed fewer low-yield campaigns and increased our use of fixed fee and sponsorship arrangement with partners. something we spoke about extensively during the Singapore Best of Awards, which attracted more than 170 guests. Technology costs also declined meaningfully year on year, decreasing from $2 million to $900K. By consolidating platforms, reducing fund accounts, and embedding AI-driven automation in internal workflows, we are enabling the business to ship more product features and handle more operational work without increasing cost. Employee benefit expenses were notably lower versus last year, decreasing from 5.7 million to 4.2 million. This is partly due to our restructuring efforts completed earlier in 2024. But just as importantly, due to the scaling impact of AI. As we shared on the prior core, support and service automation now handles 70 to 80 percent of incoming queries. This enables us to maintain a flat headcount even as application volumes and member engagement grow. It's worth noting that these sets of stage for multi-year operating leverage increase in throughput will no longer require proportional increase in personnel. For Q3, Adjusted EBITDA improved to a loss of $1.8 million compared to $5.5 million a year ago, an improvement of 68%. Adjusted EBITDA loss margin improved from 26.5% to 8.4%. This is the second consecutive quarter of sequential improvement, and the underlying drivers makeshift operating leverage and reduced cost of revenue remain consistent. Let me close by discussing our outlook. The leading indicators embedded in the Q3 results, rising share of insurance wealth, stable to improving approval quality, consistent cost discipline, and increasing contribution from AI-enabled workflows, all support the guidance we have provided throughout the year. We expect Q4 to be our first quarter of positive adjusted EBITDA since listing. Our cost base is structurally lower, our revenue mix is structurally stronger, and the benefits of Project Odyssey are becoming visible not only in service automation, but also in conversion and acquisition efficiency. We will continue allocating capital to the higher return verticals, namely insurance, wealth, and personal loans. Overall, Q3 shows a company that continues to progress operationally, financially, and structurally towards our stated goal of sustainable, profitable growth. Thank you. And I will now hand the call back to the operator for questions.