MNY Q3 2025: Adjusted EBITDA Loss Narrows 68% as High-Margin Mix and AI Reset Take Hold
MoneyHero’s strategic reset is now visible in its cost structure and margin profile, with the Q3 inflection point showing through in a sharply narrowed adjusted EBITDA loss and a higher mix of insurance and wealth revenue. The company’s disciplined cost management, AI-driven operating leverage, and focus on high-margin verticals are translating into improved unit economics and set up a Q4 profitability milestone. With Project Odyssey and new growth engines scaling, MoneyHero is positioned to enter 2026 as a structurally more profitable fintech platform, not just a comparison site.
Summary
- Margin Expansion Outpaces Revenue Growth: Operating leverage and mix shift deliver major EBITDA improvement despite flat top-line.
- AI and Automation Drive Cost Reset: Project Odyssey and workflow automation underpin cost discipline and future scalability.
- Profitability Inflection Arrives in Q4: Management signals first positive adjusted EBITDA quarter, with sustained gains targeted for 2026.
Performance Analysis
MoneyHero’s Q3 results mark a clear operational inflection, with adjusted EBITDA loss reduced 68% year-over-year to negative $1.8 million and margin improving from negative 26.5% to negative 8.4%. Revenue grew 17% sequentially and 1% year-over-year to $21.1 million, but the real story is the deliberate revenue mix shift: insurance and wealth now comprise 23% of group revenue, up from 21% last year, reflecting a focus on higher-margin, recurring verticals.
Cost discipline was evident across the board: operating costs (excluding FX) fell 13% year-over-year to $23.9 million, with technology costs cut by more than half and employee benefit expenses down 26%. Automation now handles 70 to 80% of service inquiries, enabling flat headcount even as engagement grows. Singapore led geographic growth, while Hong Kong stabilized as low-margin credit card campaigns were pruned in favor of deeper insurance and loan integration.
- Mix Shift to High-Margin Verticals: Insurance revenue up 13% and wealth up 5% year-over-year, now 23% of total revenue.
- AI-Driven Efficiency Gains: Project Odyssey pilots live, automating workflows, reducing CAC, and improving conversion.
- Operating Cost Compression: Technology and employee expenses both fell sharply, supporting margin-first execution.
Underlying these results is a transition from volume-led to quality-led growth, with incremental revenue increasingly flowing through to the bottom line. The second consecutive quarter of double-digit sequential revenue growth signals that the turnaround is not a one-off, but a structural reset.
Executive Commentary
"This is our final earnings call of 2025, and it marks the inflection point where Money Hero completes its strategic reset and enters the next phase, with an immediate line of sight to structural profitability and value creation than at any point since listing."
Rohit, CEO
"The core driver of the 68% improvement in adjusted EBITDA was the combination of high-quality revenue mix and structurally lower operating costs, both of which reflect the execution of our model reset over the past 12 to 15 months."
Daniel Lo, CFO
Strategic Positioning
1. Revenue Mix Shift to High-Margin Verticals
MoneyHero is deliberately pivoting its business model away from low-margin, volume-driven segments (notably credit cards) toward insurance and wealth, which now account for nearly a quarter of revenue. These verticals deliver roughly double the incremental profitability of legacy segments and are targeted for further expansion in 2026 and beyond. This mix shift is central to the company’s margin expansion and earnings durability thesis.
2. Project Odyssey: AI as a Structural Advantage
Project Odyssey, MoneyHero’s AI stack, is already live and integrating performance marketing, content automation, credit scoring, and service automation. The project is designed not just for efficiency, but to create a defensible data moat and drive superior customer acquisition cost (CAC) efficiency, approval prediction, and funnel conversion. Management expects Odyssey to deliver substantial EBITDA uplift as adoption deepens, with over 60% of service interactions already automated without increased headcount.
3. Cost Discipline and Operating Leverage
Operating costs have been structurally reset, with technology and employee expenses both dropping meaningfully. The company expects its cost base to remain broadly flat next year, even as revenue grows. This sets the stage for incremental revenue to flow through to the bottom line, reinforcing the margin-first strategy and multi-year operating leverage.
4. Geographic Strategy and Segment Dynamics
Singapore is now the growth engine, benefiting from improved partner engagement and broader product depth. Hong Kong’s revenue stabilized as the company intentionally reduced exposure to low-margin credit cards, while new products like Credit Hero Club, a membership-based credit score and loan offer platform, are driving engagement and higher quality approvals. Taiwan and the Philippines are gradually recovering from prior partner exits, with operational issues largely resolved.
5. Disciplined Capital Allocation and M&A Optionality
Management is prioritizing organic investment in core engines and AI, but is open to disciplined M&A where clear revenue or cost synergies exist and targets fit the AI-enabled operating model. Share repurchases may be considered once free cash flow is established, but the near-term focus remains on scaling high-return verticals and Project Odyssey capabilities.
Key Considerations
MoneyHero’s Q3 marks the visible payoff of a multi-year strategic reset, with the business now positioned for margin-driven growth, not just top-line expansion. Investors should weigh the following:
Key Considerations:
- Structural Margin Inflection: The shift to insurance and wealth is raising group profitability and improving earnings predictability.
- AI as a Competitive Moat: Project Odyssey’s data and automation advantages are increasingly core to both cost structure and customer experience.
- Cost Base Reset: Flat operating costs against rising revenue signal high operating leverage potential in 2026 and beyond.
- Capital Allocation Discipline: Management’s focus on high-return verticals and selective M&A supports long-term compounding, not just near-term optics.
Risks
The main risks stem from competitive pressure in fintech comparison and aggregation, especially if AI commoditizes basic comparison features and erodes differentiation. Regulatory shifts in digital assets or personal finance could impact user journeys or partner relationships. Execution risk remains in scaling Project Odyssey and maintaining cost discipline as growth returns. The company’s ability to sustain high-margin mix and defend its data advantage will be tested as the market evolves.
Forward Outlook
For Q4, MoneyHero guided to:
- First quarter of positive adjusted EBITDA since listing
- Continued revenue mix shift toward insurance and wealth
For full-year 2026, management maintained its outlook for:
- Solid top-line growth with further margin expansion
- Incremental mix gains in high-margin verticals and deeper Project Odyssey adoption
Management highlighted that operating costs will remain flat, while incremental revenue is expected to flow through to the bottom line, supporting a sustained profitability trajectory.
- Q4 is the expected inflection point for profitability
- 2026 positioned as the year of profitable scale-up
Takeaways
MoneyHero’s Q3 shows a business transformed, with the reset now reflected in both financials and operational execution. The next phase will test the durability of these gains as growth accelerates and new verticals scale.
- Margin-Driven Growth: The shift to higher-margin segments and AI-driven efficiency is now visible in the P&L, not just management narrative.
- Execution on Cost and Mix: Two quarters of double-digit sequential growth and sharply lower costs validate the new operating model.
- 2026 as Proof Point: Investors should watch for sustained profitability, further mix improvements, and signs that Project Odyssey’s AI moat translates into durable competitive advantage.
Conclusion
MoneyHero’s Q3 results confirm the company’s strategic reset is working, with margin expansion, cost discipline, and AI integration driving a fundamental improvement in the business model. The Q4 profitability milestone will be a key validation, but the real test will be sustaining and scaling these gains through 2026 and beyond.
Industry Read-Through
MoneyHero’s results highlight a broader fintech industry trend: comparison and aggregation platforms must move beyond volume-led growth to durable, margin-first models, leveraging AI not just for efficiency but as a structural moat. Players unable to shift their revenue mix or embed automation at scale risk margin compression and strategic irrelevance. The focus on recurring, high-margin verticals and disciplined capital allocation is likely to become a playbook for other fintechs seeking to close the gap between intrinsic value and market perception. AI-driven operating leverage and data moats are emerging as decisive factors in platform longevity and valuation re-rating across the sector.