Money Hero (MNY) Q2 2025: Insurance and Wealth Mix Rises to 27%, Resetting Path to Profit
Money Hero’s Q2 results mark a decisive shift toward higher-margin verticals, with insurance and wealth now comprising over a quarter of revenue. Disciplined cost controls and AI-driven operational gains have materially improved profitability, even as total revenue remains below last year’s level. With the business model reset largely complete, management is targeting sequential growth and EBITDA breakeven in the second half, underpinned by sustained mix improvement and scalable partner programs.
Summary
- Revenue Mix Shift: Insurance and wealth verticals now contribute 27% of total revenue, supporting improved margins.
- Operating Discipline: Cost of revenue and operating expenses fell sharply, driving visible EBITDA progress.
- Profitability Inflection: Management signals positive adjusted EBITDA for the second half, with AI and partner integrations as key levers.
Performance Analysis
Money Hero’s Q2 performance demonstrates a clear pivot from volume-driven growth to quality and profitability. Revenue for the quarter was $18 million, down 13% year-over-year, but this decline was intentional, reflecting a deliberate reduction in lower-margin credit card volume in favor of higher-margin verticals. Notably, insurance and wealth together rose to 27% of group revenue, compared to 22% a year ago, while credit card revenue share ticked down to 61%.
Gross margin expansion was pronounced, with cost of revenue dropping to 51% of sales from 67% last year, as the company improved partner terms, optimized rewards, and embedded AI in customer acquisition and service. Operating expenses fell 37% year-over-year, with broad-based reductions across marketing, technology, and employee costs. As a result, net income turned positive at $0.2 million versus a $12.2 million loss last year, and adjusted EBITDA loss narrowed to $2 million, continuing a trend of sequential improvement.
- Sequential Growth Returns: Revenue grew over 20% quarter-on-quarter, signaling momentum on a healthier base.
- Cost Base Reset: Advertising, technology, and employee expenses all saw double-digit declines, amplifying operating leverage.
- AI Embedded Across Operations: Automation in customer support, approval intelligence, and competitive pricing is lowering cost to serve and raising conversion rates.
The financial reset is now providing a platform for renewed growth, with management emphasizing that the structural improvements are durable and repeatable into the second half and beyond.
Executive Commentary
"Q2 shows that plan working. Revenue mix continues to shift towards higher margin verticals, cost of revenue is down materially, and adjusted EBITDA losses never again. This puts us firmly on track for positive adjusted EBITDA in the second half of 2025."
Rohit Murthy, Chief Executive Officer
"The numbers you'll hear from us today reinforce that the business model is structurally healthier than it was a year ago, and we are maintaining our clear path to sustainable profitability."
Daniel Arne, Interim Chief Financial Officer
Strategic Positioning
1. High-Margin Vertical Expansion
The company’s core strategy is to compound revenue in insurance and wealth, which offer higher margins, recurring revenue, and renewal economics. Auto and travel insurance are scaling through real-time pricing and digital journeys, while wealth is expanding via regulated partnerships with digital asset platforms like OSL, all on a capital-light, compliance-first basis.
2. AI-Driven Operational Leverage
AI is now embedded across customer acquisition, support, and competitive intelligence, automating 70-80% of customer inquiries and reducing manual research time by 90%. These tools are driving lower cost per approval, higher conversion rates, and enabling growth without headcount increases.
3. Provider Ecosystem and Fixed Fee Programs
Strategic provider partnerships underpin the monetization engine, with over 260 partnerships and new fixed fee programs driving high-quality, repeatable revenue. The Money Hero Best of Awards in Singapore attracted 170 clients, deepening trust and unlocking new commercial opportunities.
4. Cost Discipline and Technology Modernization
Operating expenses remain tightly managed as the company invests selectively in technology modernization and AI infrastructure. This discipline is delivering real operating leverage, with margin gains funding reinvestment in growth verticals.
5. Measured Geographic and Product Expansion
Expansion into the Philippines and new insurance lines is underway, with a focus on digital transformation and deepening member engagement through programs like Credit Hero Club and new membership models in Singapore.
Key Considerations
This quarter reflects a deliberate strategic reset, with management prioritizing long-term profitability over short-term revenue growth. The focus on high-margin, recurring verticals and partner-led economics is now embedded in the operating model.
Key Considerations:
- Mix Quality Over Volume: The shift to insurance and wealth is structurally accretive to margins and durability, but still early in its contribution to total revenue.
- AI as a Productivity Engine: Automation is delivering measurable cost savings and conversion gains, but further scaling will be critical to sustaining leverage as the business grows.
- Partner-Led Monetization: Fixed fee and sponsorship programs with banks and insurers are now material, offsetting transactional volatility and supporting brand strength.
- Selective Reinvestment: The leaner cost base allows for targeted investment in high-return channels and technology, but management is signaling measured, not aggressive, expansion.
Risks
While the reset has improved business quality, execution risk remains around sustaining sequential growth without sacrificing margin gains. Regulatory shifts in digital assets, competitive pressure in insurance, and macroeconomic headwinds in core markets could challenge the current trajectory. Analyst Q&A highlighted concerns about restoring revenue to prior levels, underscoring the need to prove that the new model can scale meaningfully.
Forward Outlook
For Q3 and Q4 2025, Money Hero guided to:
- Sequential revenue growth of 20% or more per quarter
- Adjusted EBITDA breakeven in the second half of 2025
For full-year 2025, management reiterated a focus on:
- Insurance and wealth mix rising to 28-30% of group revenue in H2
- Maintaining cost of revenue in the low 50% range
Management emphasized that growth will be driven by scaling insurance and wealth, fixed fee programs, and new member engagement initiatives such as Credit Hero Club and Singapore membership launches.
- AI and automation are expected to further improve unit economics and conversion rates
- Expansion into the Philippines and new insurance lines to provide incremental upside
Takeaways
Money Hero’s Q2 marks a clear inflection toward profitability, with the business now structurally reset for margin expansion and recurring, high-quality revenue streams.
- Margin and Mix Transformation: The deliberate pivot to insurance and wealth is driving durable margin gains, with sequential growth returning on a stronger foundation.
- AI and Partner Ecosystem as Scalable Levers: Embedded automation and deepening provider relationships are delivering operating leverage and monetization resilience.
- Proof of Sustainable Growth Model: Investors should watch for sustained mix improvement, successful scaling of fixed fee programs, and evidence that the new model can deliver both top-line growth and margin expansion into 2026.
Conclusion
Money Hero’s Q2 confirms that the company has executed a disciplined reset, prioritizing higher-margin, recurring revenue and cost discipline. The focus now shifts to proving that this model can scale, with sequential growth, AI leverage, and partner monetization as the key drivers for the second half and beyond.
Industry Read-Through
Money Hero’s results underscore a broader trend in fintech marketplaces: the era of pure volume growth is giving way to mix quality, recurring revenue, and operating leverage. Competitors still reliant on low-margin credit products may face margin compression, while those embedding AI and deepening provider ecosystems will be better positioned for profitability. Digital asset partnerships and regulatory-first approaches are increasingly table stakes, and fixed fee models may become a more prominent monetization lever across the sector.