Mr. David Feller reports

MOGO REPORTS RESULTS FOR Q3 2023

Mogo Inc. has released its financial and operational results for the third quarter ended Sept. 30, 2023.

"Our third quarter results showcased the continued progress we're making in building a highly efficient and more profitable operating platform at Mogo," said David Feller, Mogo's founder and chief executive officer. "This work is allowing us to meaningfully enhance the value of our products and accelerate our mission. We're particularly excited by the progress we're making with our wealth platform. Millions of Canadians -- and trillions of dollars -- are stuck in underperforming products with high fees and platforms that are more focused on driving revenue instead of helping Canadians improve their returns. This is one of the main reasons we have a retirement crisis, and it's a big problem we're working hard to solve. Our unique approach is helping Canadians get on a much better path to financial freedom while also having a positive impact. We're still very early days in our journey but excited to see the impact we are having already. We are prudently investing to capture the huge opportunities we see across our wealth platform."

Key financial highlights for Q3 2023:

• Q3 revenue of $16.2-million, up from $16-million in Q2 2023; revenue decreased 6 per cent over the prior year, reflecting the company's decision to narrow its strategic focus and exit certain subscale and unprofitable products;
• Q3 gross profit increased to $11.4-million (70-per-cent margin), compared with $10.8-million (63-per-cent margin) in Q3 2022;
• Total operating expenses for Q3 2023 decreased by $6.2-million, or 34 per cent, compared with Q3 2022, as the company continued to focus on cost-efficiency and improving its cash flow;
• Adjusted EBITDA reached $2.1-million in Q3 2023 (12.8-per-cent margin), up from an adjusted EBITDA loss of $2.8-million in Q3 2022;
• Cash flows from operations (before investment in loan portfolio) improved for the sixth consecutive quarter, from negative $1.5-million in Q3 2022 to $2.6-million in Q3 2023;
• Adjusted net loss improved to $2.6-million in Q3 2023 from $8.4-million in Q3 2022;
• Net loss decreased to $9.5-million in Q3 2023, compared with net loss of $20-million in Q3 2022;
• Ended Q3 with cash and total investments of $43.7-million; this included combined cash and restricted cash of $19.3-million and investment portfolio of $24.5-million;
• Mogo's assets also include 87 million common shares (approximately 13 per cent of the shares outstanding) of Wonderfi Technologies Inc., one of the largest regulated crypto investing ecosystems in Canada;
• During Q3 2023, Mogo repurchased 134,502 of its common shares for cancellation under the Nasdaq share repurchase program and its Toronto Stock Exchange normal course issuer bid at an average price of $2.45 per share; for the fiscal year to date, the company has repurchased 254,456 shares under both buyback programs.

"We're pleased with our financial performance for the third quarter, which demonstrates the core profitability of our business and highlights the strong execution from our team over the past year," said Greg Feller, president and chief financial officer. "Revenue increased sequentially for the second quarter in a row and adjusted EBITDA grew for the sixth quarter in a row, increasing nearly $5-million over the same period last year. These results position us well to achieve our full-year objectives and, as we look out to next year, to deliver an attractive combination of both top-line growth and profitability, building toward our target of a combined EBITDA margin and revenue growth rate of at least 40 per cent in the second half of 2024."

Business and operations highlights

In July, 2023, Mogo announced that Coinsquare, in which Mogo had a 34 per cent ownership stake, completed a business combination with WonderFi and CoinSmart Financial Inc. This transaction positioned the resulting entity, WonderFi, and its registered operating subsidiaries, as one of the largest regulated crypto investing ecosystems in Canada. Mogo owns approximately 13 per cent of WonderFi following the business combination.

Mogo's digital payment solutions business, Carta Worldwide, processed over $2.4 billion of payment volume in Q3 2023, an increase of 30 per cent compared with Q3 2022.

Assets under management in the company's Wealth businesses increased 18 per cent year-over-year to $331-million.

Mogo continued to focus on increasing the value of its digital Wealth platform, with multiple improvements that make it easier for users to chart the right path to long-term wealth building, by avoiding speculative trading and high-fee mutual funds that typically underperform the market.

Mogo continued to build a highly efficient and scalable technology platform and operation while at the same time reducing costs. Mogo entered a multi-year agreement to transition to Oracle Cloud Infrastructure ("OCI") to support the long-term growth of the company's digital wealth platform.

Mogo completed a strategic agreement to transition to Snowflake as the sole data warehouse for its wealth and lending platforms.

Mogo restructured its product engineering teams to better focus on velocity and driving user experience improvements.

In October, Carta announced it selected OCI to accelerate innovation and support future growth.

Financial Outlook

In recent quarters, Mogo has focused on accelerating its path to profitability by placing an emphasis on cost efficiency. As a result of these initiatives, total operating expenses decreased by $6.2-million, or 34 per cent, in Q3 2023 compared with Q3 2022.

For fiscal 2023, the company reiterates its expectation of:

Full-year Adjusted EBITDA3 of $7-million to $9-million;

Exiting 2023 with an annual Adjusted EBITDA3 run rate of $10-million to $14-million (based on a Q4 2023 Adjusted EBITDA target of $2.5-million to $3.5-million).

Conference Call & Webcast

Mogo will host a conference call to discuss its Q3 2023 financial results at 3:00 p.m. EDT on November 9, 2023. The call will be hosted by David Feller, Founder and CEO, and Greg Feller, President and CFO. To participate in the call, dial (416) 764-8658 or (888) 886-7786 (International) using conference ID: 28220426. The webcast can be accessed at http://investors.mogo.ca. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

About Mogo

Mogo, one of Canada's leading digital finance companies, is empowering its members with simple digital solutions to help them build wealth and achieve financial freedom. Mogo's trade app, MogoTrade, offers commission-free stock trading that helps users make a positive impact with every investment and together with Moka, Mogo's wholly-owned subsidiary bringing automated, fully-managed flat-fee investing to Canadians, forms the heart of Mogo's digital wealth platform. Mogo also offers digital loans and mortgages. Through Mogo's wholly-owned subsidiary, Carta Worldwide, we also offer a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe and Canada. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).

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