Orion Digital (ORIO) Lytham Partners Consumer & Technology Summit summary

Financial performance and strategy

• Achieved positive net income of CAD 13.5 million, with wealth revenue up 48% and payments up 23% year-over-year.

• Ended the quarter with a book value of CAD 81.6 million and over CAD 50 million in cash, securities, and investments.

• Gross margin expanded to 72%, with positive operating cash flow and adjusted EBITDA margin of 11%.

• Monetized a significant portion of WonderFi investment, expecting nearly CAD 30 million in proceeds from its acquisition by Robinhood.

• Ongoing stock buybacks by management, reflecting confidence in valuation.

Dual compounding and Bitcoin treasury strategy

• Pursuing a dual compounding strategy: building both fintech (wealth/payments) and Bitcoin treasury businesses in parallel.

• Launched a formal Bitcoin treasury program in 2024, with CAD 50 million authorization and active deployment.

• Bitcoin is used as a hurdle rate for investment decisions, integrating it into overall capital strategy.

• Plans to introduce a 60/40 S&P/Bitcoin allocation and Bitcoin-backed loans in the wealth and lending platforms.

• Sees crypto and Bitcoin as foundational for next-generation investors and aims to be a central access point in Canada.

Product innovation and regulatory initiatives

• Wealth platform, Intelligent Investing, is subscription-based and being rebuilt as AI-native to reinforce disciplined investing.

• Applying for full crypto trading regulatory approval, aiming to be one of only two Canadian firms with both crypto and equities trading.

• Payments business (Carta Worldwide) focused on Europe, growing revenue over 20% and exploring stablecoin integration.

• Completed migration to Oracle Cloud to enhance scalability and cost efficiency.

• Lending business impacted by Canadian rate reductions, expected to recover by 2026.