Orion Digital (ORIO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $17.7M, up 9.3% year-over-year, with record payments volume of $3.0B, up 23% year-over-year, and assets under management rising 22% to $409M.

• Adjusted EBITDA for Q3 was $2.1M (12.1% margin), maintaining margin stability and marking a second consecutive quarterly increase.

• Adjusted net loss narrowed to $0.5M in Q3 2024 from $1.5M in Q2 2024, nearing break-even.

• Over 2 million Canadian members and $409M in assets under management, with membership base up 4% year-over-year.

• Strategic priorities include sustainable profitability, efficiency, and expanding the wealth platform in a large, under-served market.

Financial highlights

• Subscription and services revenue grew 12.3% year-over-year to $10.7M in Q3 2024, reversing a prior decline.

• Total revenue increased 9.3% year-over-year; interest revenue up 5% year-over-year.

• Gross profit increased to $11.9M with a 67.3% gross margin.

• Adjusted cash flow from operations reached a record $4.8M in Q3 2024, up 85% year-over-year.

• Cash, marketable securities, and investments totaled $36.2M as of September 30, 2024.

Outlook and guidance

• 2024 subscription and services revenue growth expected at ~10%.

• Raised 2024 adjusted EBITDA guidance to $6–$7M.

• 2025 targets: high single-digit subscription and services revenue growth, adjusted EBITDA of $10–$12M (up 69% YoY), and first-ever positive adjusted net income.

• Revenue guidance for 2025 reflects the impact of a new rate cap lowering maximum APR from 47% to 34%.