{"id":991240,"date":"2026-08-06T09:51:57","date_gmt":"2026-08-06T13:51:57","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/orion-digital-reports-q2-2026-results-adjusted-ebitda-of-3-3-million-up-115-sequentially-and-wealth-aum-growth-of-18\/"},"modified":"2026-08-06T09:51:57","modified_gmt":"2026-08-06T13:51:57","slug":"orion-digital-reports-q2-2026-results-adjusted-ebitda-of-3-3-million-up-115-sequentially-and-wealth-aum-growth-of-18","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/orion-digital-reports-q2-2026-results-adjusted-ebitda-of-3-3-million-up-115-sequentially-and-wealth-aum-growth-of-18\/","title":{"rendered":"Orion Digital Reports Q2 2026 Results: Adjusted EBITDA of $3.3 Million, Up 115% Sequentially, and Wealth AUM Growth of 18%"},"content":{"rendered":"

<\/p>\n

Orion Digital Reports Q2 2026 Results: Adjusted EBITDA of $3.3 Million, Up 115% Sequentially, and Wealth AUM Growth of 18%<\/b><\/p>\n

Adjusted EBITDA Increased 115% Sequentially and 70% Year-over-Year<\/i><\/p>\n

Adjusted EBITDA Margin Expanded to 19.5% from 9.1% in Q1<\/i><\/p>\n

Core Operating Cash Generation of $5.1 Million<\/i><\/p>\n

Wealth AUM Increased 18% Year-over-Year to $545.3 Million<\/i><\/p>\n

Wealth Revenue Increased 14% Year-over-Year to $4.1 Million<\/i><\/p>\n

Orion Digital reports in Canadian dollars and in accordance with IFRS.<\/i><\/p>\n

VANCOUVER, British Columbia–(BUSINESS WIRE<\/a>)–
\nOrion Digital Corp. (NASDAQ: ORIO; TSX: ORIO) (\u201cOrion Digital\u201d or the \u201cCompany\u201d) today reported financial results for the second quarter ended June 30, 2026.<\/p>\n

\nOrion Digital operates established businesses across Canadian wealth, European payments infrastructure and Canadian consumer finance. Intelligent Investing is the Company\u2019s principal area of growth investment; Carta provides an established European payments platform from which to pursue self-funded commercial opportunities; and Mogo lending is managed to generate risk-adjusted returns and cash through disciplined capital deployment. Management allocates capital among these businesses based on expected returns, capital efficiency and liquidity requirements.<\/p>\n

\nQ2 2026 marked an important milestone in Orion Digital\u2019s evolution. The Company demonstrated improved earnings and cash generation at a lower level of Mogo lending deployment, commercially launched Intelligent Investing subsequent to quarter-end and continued executing across Carta Worldwide.<\/p>\n

\nTotal revenue was $16.9 million compared with $17.0 million in Q2 2025, as growth in Wealth partially offset lower Payments and interest revenue following the reduction in Mogo lending originations communicated last quarter. Wealth revenue increased 14% year-over-year, Wealth assets under management increased 18% to $545.3 million, and Wealth and Payments together represented 38% of total revenue compared with 36% in the prior-year quarter.<\/p>\n

\nGross profit increased to $12.6 million from $12.2 million, while gross margin expanded to 75% from 72%. The increase primarily reflected lower loan-loss provisions and transaction costs associated with reduced lending deployment, together with continued Wealth revenue growth.<\/p>\n

\nAdjusted EBITDA1<\/sup> increased 115% sequentially and 70% year-over-year to $3.3 million, near the top of the Company\u2019s previously announced guidance range of $2.5 million to $3.5 million. Adjusted EBITDA margin expanded to 19.5% from 9.1% in Q1 2026 and the Company generated operating income of $1.3 million.<\/p>\n

\nCash provided by operating activities1<\/sup> was $2.7 million during Q2 2026, compared with $0.9 million in Q2 2025. Core operating cash generation1<\/sup>, a supplemental measure management uses to assess cash generated by Orion Digital\u2019s operating businesses before capital deployment and corporate financing activities, was $5.1 million. Q2 2025 included a $3.0 million non-recurring cash receipt. Excluding that receipt, core operating cash generation increased by approximately $1.1 million, or 29%, year-over-year.<\/p>\n

\nAlthough Q2 demonstrated the earnings and cash-generation capacity of the business at a lower level of lending deployment, management does not view the quarter as a normalized run rate. Second-half Adjusted EBITDA is expected to be lower than the first half as lending deployment gradually increases, associated loan-loss provisions increase, and the marketing investment expands following the commercial launch of Intelligent Investing.<\/p>\n

\nAdjusted net income1<\/sup> was $1.1 million, or $0.04 per share, compared with an adjusted net loss of $0.4 million, or ($0.02) per share, in the prior-year quarter. Net loss was $0.7 million compared with net income of $13.5 million in Q2 2025. The prior-year result included a significant non-operating revaluation gain.<\/p>\n

Q2 2026 KPI Scorecard<\/span><\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\n\n

Q2 2026<\/b><\/p>\n<\/td>\n

\n\n

Q2 2025<\/b><\/p>\n<\/td>\n

\n\n

YoY Change<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Wealth Platform<\/b><\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nAssets under management (at June 30)<\/p>\n<\/td>\n

\n\n

\n$545.3M<\/p>\n<\/td>\n

\n\n

\n$461.7M<\/p>\n<\/td>\n

\n\n

\n+18%<\/p>\n<\/td>\n<\/tr>\n

\n

\nWealth revenue<\/p>\n<\/td>\n

\n\n

\n$4.1M<\/p>\n<\/td>\n

\n\n

\n$3.6M<\/p>\n<\/td>\n

\n\n

\n+14%<\/p>\n<\/td>\n<\/tr>\n

\n

Payments Platform (Carta Worldwide)<\/b><\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nEuropean transaction volume<\/p>\n<\/td>\n

\n\n

\n$2.8B<\/p>\n<\/td>\n

\n\n

\n$2.8B<\/p>\n<\/td>\n

\n\n

\n\u2014<\/p>\n<\/td>\n<\/tr>\n

\n

\nPayments revenue<\/p>\n<\/td>\n

\n\n

\n$2.4M<\/p>\n<\/td>\n

\n\n

\n$2.6M<\/p>\n<\/td>\n

\n\n

\n(9%)<\/p>\n<\/td>\n<\/tr>\n

\n

Lending & Other<\/b><\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nCash provided by operating activities before investment in gross loans receivable1<\/sup><\/p>\n<\/td>\n

\n\n

\n$4.4M<\/p>\n<\/td>\n

\n\n

\n$6.2M<\/p>\n<\/td>\n

\n\n

\n(29)%<\/p>\n<\/td>\n<\/tr>\n

\n

Corporate<\/b><\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n

\n\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDA<\/p>\n<\/td>\n

\n\n

\n$3.3M<\/p>\n<\/td>\n

\n\n

\n$1.9M<\/p>\n<\/td>\n

\n\n

\n+70%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Management Commentary<\/span><\/b><\/p>\n

David Feller, Founder and CEO<\/b><\/p>\n

\n\u201cWealth assets under management reached $545 million and Wealth revenue increased 14%. Subsequent to quarter-end, we commercially launched Intelligent Investing, beginning the platform\u2019s commercialization phase.\u201d<\/p>\n

\n\u201cWe believe increasingly abundant research and information are increasing the importance of disciplined investment decision-making. Intelligent Investing is organized around the investment decision and is designed to help members research, document, benchmark and review their investment decisions over time. Our focus now is to introduce the platform to a broader group of investors, evaluate customer engagement and retention, continuously improve the platform and build an effective customer-acquisition model before increasing investment.\u201d<\/p>\n

\n\u201cIntelligent Investing is being commercialized from an established Canadian wealth business, providing the regulatory, operating and technology foundation for commercialization. We intend to allocate additional capital based on demonstrated customer use and long-term customer economics.\u201d<\/p>\n

Greg Feller, President and CFO<\/b><\/p>\n

\n\u201cAdjusted EBITDA more than doubled sequentially to $3.3 million, increasing 115% from Q1 and 70% year-over-year, while Adjusted EBITDA margin expanded to 19.5%. The result was near the top of our guidance range and reflected lower lending deployment, reduced acquisition spending and provisions, continued Wealth growth and operating-cost management.\u201d<\/p>\n

\n\u201cCash provided by operating activities was $2.7 million, while core operating cash generation was $5.1 million. Excluding the $3.0 million non-recurring receipt in the prior-year quarter, core operating cash generation increased by approximately $1.1 million, or 29%. While Q2 should not be viewed as a normalized run rate, it demonstrated our ability to generate meaningful earnings and operating cash while preserving financial flexibility.\u201d<\/p>\n

\n\u201cTotal revenue was $16.9 million compared with $17.0 million a year ago. We are prepared to accept near-term revenue pressure rather than deploy lending capital below our return, payback or liquidity thresholds.\u201d<\/p>\n

Wealth Platform \u2014 Intelligent Investing<\/span><\/b><\/p>\n

\nIntelligent Investing is Orion Digital\u2019s Canadian wealth business, designed to help investors improve the quality and consistency of their investment decisions through commission-free investing, independent AI-powered research and a structured capital-allocation system. The platform is organized around the investment decision and is designed to help investors document investment theses, benchmark performance, review outcomes and improve decision quality over time.<\/p>\n

\nOn July 27, 2026, subsequent to quarter-end, the Company commercially launched Intelligent Investing, beginning the Company\u2019s commercialization phase.<\/p>\n

\nDuring the remainder of 2026, the Company intends to introduce the platform to a broader group of investors, evaluate customer engagement and member retention, continuously improve the product and allocate additional capital based on demonstrated customer use and long-term customer economics.<\/p>\n

\nWealth is currently the Company\u2019s principal area of growth investment.<\/p>\n

Payments Platform \u2014 Carta Worldwide<\/span><\/b><\/p>\n

\nCarta provides payments infrastructure supporting payment programs processing more than $11 billion of annual payment volume and reaching more than five million end users across Europe through its clients.<\/p>\n

\nEuropean transaction volume was $2.8 billion in Q2 2026, consistent with the prior-year period. For the first six months of 2026, European transaction volume was $5.5 billion, an increase of 6% year-over-year.<\/p>\n

\nPayments revenue was $2.4 million, a decrease of 9% from Q2 2025, primarily reflecting lower non-recurring services revenue compared with the prior-year period.<\/p>\n

Mogo Lending \u2014 Return-Based Capital Deployment<\/span><\/b><\/p>\n

\nMogo is Orion Digital\u2019s established Canadian consumer finance business, with more than two decades of operating history and underwriting experience.<\/p>\n

\nDuring Q2, the Company reduced originations as previously announced. The lower deployment level reduced customer-acquisition costs, incremental loan-loss provisions and associated funding requirements, contributing to the stronger earnings and cash-generation profile during the quarter.<\/p>\n

\nThe reduced deployment also provided management with additional portfolio-performance data and reinforced the Company\u2019s focus on capital efficiency and expected returns rather than origination growth.<\/p>\n

\nGross loans receivable declined to $75.4 million at June 30, 2026 from $77.9 million at March 31, 2026. The related lending credit facility declined to $49.8 million from $51.4 million.<\/p>\n

\nNet corporate capital used by the lending portfolio4<\/sup> was $3.3 million during Q2, compared with $4.5 million in the prior-year quarter. This supplemental measure combines changes in loans receivable with net advances from, or repayments to, the credit facility that directly funds the lending portfolio.<\/p>\n

\nThe Company expects to increase originations gradually as credit performance, customer-acquisition costs and expected capital payback meet management\u2019s return and liquidity thresholds. Future deployment will continue to be governed by expected lifetime returns, capital payback objectives, credit performance, acquisition costs and liquidity requirements rather than predetermined volume targets.<\/p>\n

Cash Generation and Capital Allocation<\/span><\/b><\/p>\n

\nCore operating cash generation is a supplemental measure used to assess cash generated by Orion Digital\u2019s operating businesses before growth investment, lending deployment and corporate financing activities.<\/p>\n

\nDuring the quarter, the Company invested $0.9 million in growth and platform development3 <\/sup>and deployed $3.3 million of net corporate capital used by the lending portfolio. After portfolio investments and monetizations5<\/sup>, corporate financing and shareholder capital allocation activates6<\/sup> (including share repurchases), cash decreased by approximately $0.5 million to $23.3 million.<\/p>\n

\nCore operating cash generation and the related capital-allocation measures are supplemental measures used by management to evaluate how cash is generated and deployed. Detailed definitions and reconciliations to the consolidated statement of cash flows are included in the Company\u2019s MD&A for the three and six months ended June 30, 2026.<\/p>\n

\nManagement evaluates material uses of capital based on expected returns, capital efficiency, payback, liquidity requirements, downside risk and long-term per-share value.<\/p>\n

Liquidity<\/span><\/b><\/p>\n

\nAt June 30, 2026, Orion Digital held:<\/p>\n