MOGO is a microcap fintech company which offers a comission free stock trading app and other apps providing personal loans. MOGO has more than 2M members, $9.9B in annual payments volume and a ~13% equity stake in crypto exchange WonderFi (WNDR). It is certainley an interesting company, but the fundementals are less exciting. Revenue growth for Q2 swung positive after many quarters of declines, but losses widened. Cash flows have historically been negative but swung to a small positive in Q2. We think the business is interesting, but we want to see revenue growth reaccelerate, signs of cash flow positivity and profitability. Additionally the company has quite a bit of net debt at $78M which is significant given its market cap is only $44M. The business is interesting and it is worth watching, but the size, debt, and growth risks are all too much for us to consider it.
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