Orion Digital Corp

Good afternoon, ladies and gentlemen, and welcome to MoGo first quarter 2025 financial results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. These calls may be recorded on Thursday, May 8, 2025. I would now like to turn the conference over to Craig Armitage. Investor Relations, please go ahead.

Thank you, Operator, and good afternoon, everyone. Just a few quick notes before we get started. Today's call will contain forward-looking statements that are based on current assumptions and subject to risks and uncertainties. It could cause actual results to differ materially from those projected. The company undertakes no obligation to update these statements except as required by law. Information about the risks and uncertainties are included in MOGO's Q1 filings, as well as periodic filings with regulators in Canada and the United States, which you'll find on CDAR. You can access via the Investor Relations website as well. Lastly, today's session will include several adjusted financial measures or non-IFRS financial measures. Please consider these as a supplement to and not a substitute for the IFRS measures. You'll see that we've included reconciliations to those in the press release and the investor deck. And with that, I'll turn the call over to Dave Feller to get us started. Dave? Thanks, Greg.

Thank you. Good afternoon. Welcome to MoGo's Q1 2025 results conference call. I'm joined today by Greg Feller, our president and CFO. I'll cover some of the key operating highlights and our strategic focus for the year, and then I'll pass it over to Greg to review our financial results. Q1 was a solid quarter, especially with our continued momentum in both wealth and payments, with wealth revenue up 41% and payments revenue up 34%. Importantly, we also achieved this while maintaining positive adjusted EBITDA and strong balance sheet. Like every company, we've been spending a lot of time digging deep into AI and identifying all the ways that we can leverage it to help build our business. We've recently formalized this into what we are now calling Mogul 3.0, which is all about becoming an AI-native business. This is a full reset on how we build, operate, and scale across every part of our business. This means embedding intelligence in every layer, product, operations, finance, and member experience. It's a move to become leaner, smarter, and radically more efficient. This means fewer people, higher velocity, and one unified platform across lending and wealth. Eventually, there'll be no part of our business that isn't AI-powered. It's hard to overstate the impact that it's already having, and we are only scratching the surface. Things that were once not even possible are now very accessible. Just to give you a sense of the impact, there are certain areas where, through AI, our productivity gains have easily been 10 to 20x, including in product marketing. Today, almost every single one of our team members are using AI in their daily business and exploring new AI tools that are helping them dramatically improve their productivity. Historically, our lending experience, like most, was relatively simple. It was static, rule-based, and reactive. We're now reimagining the entire experience as an AI-native one. This means smarter marketing and customer acquisition, smarter underwriting that will include behavioral data, alternative data including spending patterns that will enable smarter credit decisions, and better outcomes for both the user and our business. AI will also enable us to better serve our customers, helping nudge them to better behaviors, including helping them get out of debt sooner and ultimately to get them on a path to wealth building. This will continue into collections as well. There's no part of the experience that can't be radically improved with AI, and this is a key initiative as part of the 3.0 transformation. As we saw this quarter's performance, we're continuing to make progress in our wealth business driven by continued improvement in the experience and value proposition, which is helping attract higher value users. But now we're heads down reimagining it as an AI native and unified experience. There was a time when having two separate apps made sense, but now that we have brought them together as a single intelligent investing value proposition, we believe unifying them into a single AI native app makes a lot of sense. We think this will be a big unlock for us and dramatically improve the experience and value proposition for our users. Again, while the market is dominated by what we call dopamine-fueled casinos, we are building one that prioritizes discipline, patience, and long-term focus. something that not only sets us apart from the competition, but resonates with investors that are looking for something better. Our goal isn't to be the biggest, it's to be the most effective wealth building platform in the market. We're already leveraging AI and giving our members a behavioral edge, but we're only scratching the surface of what's possible. As a refresher, unlike commission-free apps that focus on training activity and foreign exchange fees, we offer a very compelling value proposition at $20 a month that includes zero commission and zero FX fees, along with a fully managed S&P 500-based portfolio and a serious research and analytical tool. This model helps align our success with the success of our members. While others push trading activities to drive increased revenue, we focus on improving the performance of our members, which usually means more discipline, patience, and fewer trades. We call it buff mode. Now, it's important to understand that becoming AI native isn't a flip of the switch, especially not in financial services where trust, accuracy, and compliance are non-negotiable. That's why we're approaching this as a phase transformation, starting where the impact is the highest and the risk is the lowest, and then expanding from there. Right now, we're in phase one. We're embedding AI to augment our teams and workflows. Support is a great example where over 60% of our interactions are now handled by our AI agents, delivering faster and better responses at a lower cost. In engineering, we're using co-pilots and AI tools like Cursor, and the percentage of our code that's written by AI continues to increase, with some engineers reporting as much as 50% of their code now written by AI. The next phase is where AI starts to own full workflows end-to-end, always with human oversight. At this stage, we move from augmentation to orchestration with AI running core business processes and humans focusing on oversight, refinement, and innovation. And then we enter the third phase, where AI becomes the brains of the platform. This is where real compounding begins, where intelligence flows across lending, investing, support, and operations to drive performance, retention, and long-term value. The point is we're not rushing this. We're building this with purpose. We know where this is headed, and we're building the architecture, the culture, and the capabilities to get us there responsibly but aggressively. MoGo 3.0 is our reset. leaner, smarter, and more focused. We're not chasing hype. We're playing the long game and building for durable value. Our objective is to be one of the most product-focused AI-native challengers in fintech. Things are moving faster than ever, and our team is working hard to execute on the strategic initiatives that will transform MoGo.