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MoneyLion (ML)
NYSE:ML
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MoneyLion
(NYSE:ML)
73Outperform
Positive Factors
Financial Performance
MoneyLion reported strong results, beating expectations on both revenue and profit.
Product Demand
There is strong demand for MoneyLion's core products, leading to updated and increased revenue and EBITDA estimates.
Revenue Growth
MoneyLion reported solid 4Q performance with a year-over-year revenue acceleration to 40% growth, exceeding forecasts.
Negative Factors
Acquisition Impact
The acquisition by Gen Digital leaves little upside in MoneyLion shares in the near term, leading to a downgrade from Buy to Neutral.
Investment Rating
A superior offer is unlikely, leading to a lowered rating to Hold and a price target adjustment to the cash value of $82.
Stock Price Risk
The largest risk to shareholders is the share price of GEN over the following 24 months and the stability of its stock.
MoneyLion (ML) vs. S&P 500 (SPY)
Market Cap
$996.28M
Dividend YieldN/A
Average Volume (3M)168.07K
Price to Earnings (P/E)117.6
Beta (1Y)2.97
Revenue Growth28.92%
EPS GrowthN/A
CountryUS
Employees600
SectorTechnology
Sector Strength54
IndustrySoftware
Share Statistics
EPS (TTM)0.75
Shares Outstanding11,320,094
10 Day Avg. Volume140,024
30 Day Avg. Volume168,067
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.82
Price to Cash Flow (P/CF)4.20
P/FCF Ratio3.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$97.50Price Target Upside11.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
MoneyLion Business Overview & Revenue Model
Company DescriptionMoneyLion Inc. provides a digital financial platform. The company's platform offers access to banking, borrowing, and investing solutions for customers. Its principal products include roarmoney premium mobile banking, personalized investing, cryptocurrency, instacash, membership programs, financial tracking tools, online financial education content destination, affiliated marketing programs, unsecured personal loans, and credit-related decision servicing. The company was founded in 2013 and is headquartered in New York, New York.
How the Company Makes MoneyMoneyLion generates revenue through a multifaceted business model that includes subscription fees, interest income, and transaction-based fees. The company offers a subscription service called MoneyLion Plus, which provides users access to premium financial management tools and resources. Additionally, MoneyLion earns interest income from personal loans issued to customers. Transaction-based fees are collected from interchange fees when users utilize the MoneyLion debit card for purchases. Partnerships with financial institutions and other businesses also contribute to its revenue streams by expanding its service offerings and customer base.
MoneyLion Financial Statement Overview
Summary
MoneyLion exhibits strong financial health with significant revenue and cash flow growth, improved profitability, and a solid equity position with no debt. The company's financial trajectory is positive with effective cash management and operational improvements, positioning it well for future stability and growth in the competitive software industry.Income Statement
MoneyLion has shown impressive revenue growth at 28.89% from 2023 to 2024, with a significant improvement in profitability, turning a negative net income in 2023 to a positive $26.3 million in 2024. The gross profit margin improved to 74.97%, and net profit margin turned positive at 4.82%. However, the EBIT and EBITDA margins, while positive, are relatively modest at 4.88% and 4.88% respectively, suggesting room for operational efficiency improvements.85
Very Positive
Balance Sheet
The balance sheet shows a strong equity position with stockholders' equity at $290.94 million, and zero total debt, leading to a favorable debt-to-equity ratio of 0.00. The equity ratio is healthy at 56.11%, indicating a stable financial structure. The return on equity significantly improved to 9.03% due to profitable operations. However, the decrease in total liabilities and increase in equity suggest effective management of financial resources.78
Positive
Cash Flow
Cash flow statements reveal a robust growth in operating cash flow by 72.80% from 2023 to 2024, with free cash flow also increasing significantly. The operating cash flow to net income ratio is high at 7.65, reflecting strong cash-generating capability relative to net income. The free cash flow to net income ratio is also healthy at 7.30, indicating excellent cash management and liquidity.92
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 545.90M | 423.43M | 340.75M | 171.11M | 79.41M | Gross Profit |
| 409.26M | 266.62M | 234.33M | 162.25M | 75.08M | EBIT |
| 26.65M | -5.34M | -118.99M | -112.14M | -24.39M | EBITDA |
| 59.40M | 7.17M | -163.23M | -159.78M | -37.52M | Net Income Common Stockholders |
| 9.15M | -45.24M | -190.30M | -164.88M | -41.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 139.98M | 92.19M | 115.86M | 201.76M | 19.41M | Total Assets |
| 518.59M | 515.26M | 596.34M | 491.54M | 123.64M | Total Debt |
| 118.53M | 196.74M | 232.01M | 186.59M | 46.60M | Net Debt |
| -21.44M | 102.26M | 116.15M | -15.17M | 27.20M | Total Liabilities |
| 227.65M | 258.04M | 498.42M | 258.30M | 92.24M | Stockholders Equity |
| 290.94M | 257.22M | 97.93M | 233.23M | -40.45M |
| Cash Flow | Free Cash Flow | |||
| 191.86M | 110.34M | -5.53M | -9.05M | 1.84M | Operating Cash Flow |
| 201.02M | 116.35M | 3.36M | -8.57M | 3.03M | Investing Cash Flow |
| -68.45M | -127.56M | -141.55M | -144.36M | -42.75M | Financing Cash Flow |
| -76.61M | -48.01M | 45.67M | 378.23M | 14.83M |
MoneyLion Technical Analysis
Positive
87.73
Price Trends
86.95
Positive
83.60
Positive
69.63
Positive
Market Momentum
0.34
Negative
55.25
Neutral
77.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ML, the sentiment is Positive. The current price of 87.73 is above the 20-day moving average (MA) of 87.34, above the 50-day MA of 86.95, and above the 200-day MA of 69.63, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 77.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ML.
MoneyLion Risk Analysis
MoneyLion disclosed 61 risk factors in its most recent earnings report. MoneyLion reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MoneyLion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $996.28M | 117.61 | 3.34% | ― | 28.92% | ― | |
70 Outperform | $927.99M | 55.91 | 33.59% | ― | 2.71% | ― | |
64 Neutral | $14.85B | 34.21 | 8.26% | ― | 29.33% | ― | |
58 Neutral | $21.97B | 10.63 | -18.43% | 2.40% | 4.67% | -24.47% | |
53 Neutral | $1.30B | 25.15 | 3.96% | ― | 3.63% | 27.77% | |
51 Neutral | $5.15B | ― | -20.27% | ― | 24.50% | 49.38% | |
50 Neutral | $15.47B | ― | -7.34% | ― | 46.27% | 74.39% |
* Technology Sector Average
Performance Comparison
ML
MoneyLion
87.73
16.41
23.01%
LC
LendingClub
11.22
2.43
27.65%
UPST
Upstart Holdings
52.87
25.98
96.62%
OPFI
OppFi
9.95
7.55
314.58%
SOFI
SoFi Technologies
13.07
5.77
79.04%
AFRM
Affirm Holdings
48.32
11.06
29.68%
MoneyLion Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 2.61% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for MoneyLion with record revenue and significant customer growth. The launch of new products and strategic initiatives like MoneyLion Checkout are expected to drive future growth. However, there are some concerns regarding regulatory challenges and the impact of the current credit cycle. Overall, the positive highlights significantly outweigh the lowlights.Highlights
Record Quarterly Revenue
Achieved record quarterly revenue of $135 million, representing 23% year-over-year growth. Raised full year 2024 revenue guidance to $536 million to $541 million, up from $525 million to $535 million.
Strong Adjusted EBITDA Performance
Generated record adjusted EBITDA of $24 million for the quarter, exceeding the guidance range of $18 million to $21 million. Adjusted EBITDA margin was 18%, above the high end of the guidance.
Enterprise Revenue Growth
Generated record Enterprise revenue with growth of 18% quarter-over-quarter to $45 million, reflecting continued momentum.
Customer Growth
Ended the third quarter with 18.7 million total customers, marking a 54% year-over-year increase. Total customers have grown about 3.5x since Q3 2022.
MoneyLion Checkout Launch
Launched MoneyLion Checkout, an end-to-end solution that unifies and simplifies the financial product shopping experience, which has already shown a 25% improvement in click-through rates and a 2.5x increase in conversions.
Lowlights
Regulatory Challenges
Concerns about potential regulation from the CFPB on earned wage access, although MoneyLion believes it is well-prepared for changes.
Current Credit Cycle Impact
Although conversion rates are improving, they still remain below historical levels, impacting the largest vertical, personal loans.
Company Guidance
During MoneyLion's Q3 2024 earnings call, the company provided updated guidance reflecting strong performance and optimism for future growth. MoneyLion reported a record quarterly revenue of $135 million, marking a 23% year-over-year increase, and raised its full-year revenue guidance to a range of $536 million to $541 million, up from the previous guidance of $525 million to $535 million. The company also achieved record adjusted EBITDA of $24 million, exceeding the guidance range of $18 million to $21 million, with an adjusted EBITDA margin of 18%. For Q4 2024, MoneyLion anticipates revenue growth of 32% to 36% year-over-year, targeting a revenue range of $149 million to $154 million, and expects adjusted EBITDA between $22 million and $27 million. The company also highlighted substantial growth in Enterprise revenue, which increased 18% quarter-over-quarter to $45 million, and projected further acceleration in Q4. Additionally, MoneyLion ended Q3 with 18.7 million total customers, a 54% year-over-year increase, and a cash balance of $112 million, up from $98 million at the end of Q2.MoneyLion Corporate Events
M&A Transactions
MoneyLion Acquired by Gen Digital to Boost Offerings
Positive
Dec 10, 2024
Gen Digital Inc. announced its acquisition of MoneyLion Inc. to enhance its financial wellness offerings. This merger will allow Gen to incorporate MoneyLion’s consumer finance platform and AI capabilities, significantly expanding Gen’s customer base and strengthening its position in the digital financial sector.
Private Placements and FinancingBusiness Operations and Strategy
MoneyLion Secures New $70 Million Loan Facility
Positive
Nov 25, 2024
MoneyLion Inc. has successfully refinanced its existing senior debt with a new $70 million loan facility through Silicon Valley Bank, significantly lowering its cost of capital by approximately 550 basis points and extending maturity to 2029. This strategic move is set to enhance MoneyLion’s financial flexibility, allowing the company to accelerate investments in innovation and expand its ecosystem, positioning itself as a leader in consumer finance solutions.
Private Placements and FinancingBusiness Operations and Strategy
MoneyLion Strengthens Financial Position with New Loan
Positive
Nov 25, 2024
MoneyLion Inc. has successfully refinanced its senior debt by securing a $70 million loan facility with Silicon Valley Bank, significantly lowering its cost of capital by 550 basis points and extending debt maturity to 2029. This strategic move enhances MoneyLion’s financial position, allowing it to invest in innovation and expand its ecosystem, thus positioning itself as a leading destination for financial decisions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.