10-Q, Member Exclusive

Can MoneyLion gain ground in the long term on the strength of its underlying businesses?

  • MoneyLion's Q4 2022 results show a profitable December -- however, the firm saw net losses for the quarter and year.
  • Oportun reported its fourth quarter 2022 results on Monday. In the revenue line, the company reported $261.9 million, missing estimates by $1.1 million.

Email a Friend

Can MoneyLion gain ground in the long term on the strength of its underlying businesses?

Welcome to the 10-Q newsletter

The 10-Q newsletter is now part of your Tearsheet Pro subscription.

10-Q provides insight and market analysis into the moves of top banking and fintech stocks over the past week. In your inbox every Friday.

We're excited to bring you the brand new look of the weekly 10-Q newsletter.

Happy reading!

Weekly 10-Q

In today's edition:
Last week we covered:

Can MoneyLion gain ground in the long term on the strength of its underlying businesses?

Can MoneyLion gain ground in the long term on the strength of its underlying businesses?

MoneyLion's Q4 2022 results show a profitable December -- however, the firm saw net losses for the quarter and year.


Neobank MoneyLion reported its Q4'22 results on Wednesday, with a significant improvement in adjusted revenue despite negative earnings throughout FY'22.

Neobank MoneyLion reported a $0.74 loss per share for the quarter.

  • Adjusted Revenue increased 71% to $92.4 million for the fourth quarter of 2022 compared to the fourth quarter of 2021
  • Net loss of $136.2 million for the fourth quarter of 2022 versus a net loss of $32.2 million in the same quarter of 2021 -- and $190.3 million for the year. Loss widened by 41% from FY 2021
  • Adjusted EBITDA was $5.6 million compared to $31.9 million in Q4 2021
  • Total customer count increased 97% year on year to 6.5 million

MoneyLion went public two years ago at a $2.4 billion valuation. Fresh off its IPO, the firm experienced a rough patch with its stock down roughly 80% in November 2021, a far cry from the initial $2.4 billion enterprise value it had when the SPAC deal was first announced. 

The neobank acquired MALKA in November 2021 to create a media arm for the company. For its consumer business which is banking, investing, credit advice, and marketplace – MoneyLion acquired Even Financial, a marketplace technology that connects and matches consumers with personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints, in February 2022.

Later in September 2022, the neobank’s lending activities came under fire when the Consumer Financial Protection Bureau sued the company, alleging it overstepped the Military Lending Act. 

MoneyLion allegedly charged more than the legally allowable 36% rate cap on loans to servicemembers through a combination of stated interest rates and monthly membership fees. The neobank also often refused to cancel paid memberships, according to a lawsuit filed by the CFPB.

MoneyLion was at loggerheads with the CFPB over its complaint, claiming it was false allegations.

The firm's shareholders have had a rough ride lately, with its stock price plummeting 80% last year. Although the past weeks saw a lift for owners of the stock, they're still in the red over the last year, followed by an 18% decline in the firm’s share price in February this year.

In the same month, MoneyLion partnered with Column Tax, a personal income tax software company in a move to provide a simplified tax filing experience to its RoarMoney customers.

Besides its two acquisitions, the new partnership with Column Tax illustrates the neobank’s strategy to create diversified streams that would help it increase revenue.

The neobank also launchedMoneyLion University in October last year to improve financial literacy and drive new users to its platform.

"Our strong performance in 2022 is a reflection of the investments we have made to create a durable and self-reliant ecosystem. With all of the pieces in place, we are positioned to deliver profitability at scale," said Dee Choubey, CEO MoneyLion.

MoneyLion's unit economics improved with its customer acquisition cost, which reduced to $8 during the fourth quarter compared to ARPU of $62. This decreased from $72 in the same quarter last year -- as a result, the company's payback period has been cut back in half over the same span. This has positively impacted the underlying profitability generating a gross profit of $58 million during Q4 2022. 

However, the loss was primarily driven by a one-time non-cash goodwill impairment expense of $136.8 million in the fourth quarter and full year of 2022, according to the earnings report.

The company's shares are down 8.2% from a week ago.

Market recap

Fintech stocks tumbled once again over the past week keeping markets on the edge

Fintech stocks saw a sharp fall adding to market woes of bank crises, inflationary adjustments, and growth challenges amid a macroeconomic environment.

Biggest stock changes of the week -- that gained ground and those that sharply declined.

Oportun - down 43% to $2.84 per share

  • Oportun reported its fourth quarter 2022 results on Monday. In the revenue line, the company reported $261.9 million, missing estimates by $1.1 million.
  • Despite revenues increasing, earnings decreased, signaling a decline in profit margins. The stock is down following the report.

Coinbase - up 17% to $67.78 per share

  • Bitcoin has risen swiftly lately, it rose 10% at 3 a.m. ET Monday to $22,560.20, its highest level in 10 days, which uplifted crypto brokers like Coinbase.

Meta - up 13% to $204.93 per share

  • Meta shares jumped after Zuckerberg announced more layoffs on Tuesday. However, investors are feeling bullish as the company has taken a different approach to control its spending. Zuckerberg is cutting lower-priority projects and trimming middle-management positions.

Editor's picks

Tweet of the week

Stock market is on the edge given the current banks stocks situation.

Just look at the charts

S&P Financials index has seen the lowest week since 2020.
JPMorgan Chase (+164%) v/s Crédit Suisse (-92%)

This week's reads

SEC proposes new cybersecurity rules for financial firms


Brokers and asset managers would have to notify their customers of data breaches as part of a raft of cybersecurity and resiliency rules the SEC proposed Wednesday. The new rule would come alongside additional expansions to the SEC’s 24-year-old regulation governing financial firms’ protection of customer data, which SEC Chair Gary Gensler tied to soaring reports of identity theft.

Morgan Stanley Wealth Management taps OpenAI to create a chatbot for advisors


Morgan Stanley Wealth Management (MSWM) has entered into a strategic agreement with artificial intelligence research and deployment lab OpenAI to provide its financial advisors with an improved chatbot. The chatbot will leverage OpenAI’s new GPT-4 technology, an advanced system driven by artificial intelligence (AI).

First Republic gets $30 billion in rescue funds from other banks


The nation’s biggest banks agreed to deposit $30 billion with First Republic Bank in an effort to stem the turmoil that’s sent depositors fleeing from regional banks and shaken the country’s financial system. JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo will each contribute $5 billion of uninsured deposits, while Goldman Sachs Group and Morgan Stanley will each kick in $2.5 billion.

Appeals court approves settlement of Visa and Mastercard antitrust suit


A federal appeals court has approved a settlement of a class-action lawsuit brought against Visa and Mastercard. The settlement, in which the payment card networks agreed to pay a total of $5.6 billion to 12 million merchants who brought an antitrust case against them, was approved Wednesday. The plaintiffs alleged that Visa and Mastercard had injured the merchants by charging supra-competitive fees on payment card transactions.

Sezzle revisits plan to publicly list in the U.S.


Buy now, pay later (BNPL) technology provider Sezzle announced on Monday it plans to list publicly in the U.S. on the Nasdaq while continuing to sell common stock on the Australian Stock Exchange (ASX).

0 comments on “Can MoneyLion gain ground in the long term on the strength of its underlying businesses?”

10-Q, Member Exclusive

The debt ceiling deal may have saved the US from defaulting on its debt, but where does this leave the stock market?

  • The passing of the bill may have saved the immediate trouble of defaulting but it could be months before investors and the stock market regain their stability.
  • SoFi stock rose nearly 31% in the past week because of the new debt ceiling deal.
Sara Khairi | June 05, 2023
10-Q, Member Exclusive

Who will succeed James Gorman at Morgan Stanley?

  • Morgan Stanley's James Gorman is calling it a day. “No plans to go out like Logan Roy,” the fictional CEO from HBO’s Succession, he says.
  • Wise shares dropped nearly 7% Thursday after the firm announced this week that its CFO, Matt Briers will be stepping down in March 2024.
Sara Khairi | May 30, 2023
10-Q, Member Exclusive

Guilty or not guilty: Deutsche Bank is ready to pay $75 million in Epstein settlement

  • Deutsche Bank hasn’t come clean about its involvement with the Epstein crime. However, the bank addressed the situation by saying that it has strengthened and invested in its anti-financial crime controls.
  • Upstart is up almost 80% in 2023 so far. The news of multiple funding agreements being worked on by the company rebounded the stock nearly 47% in a week.
Sara Khairi | May 22, 2023
Banking, Lending, Member Exclusive

Unlicensed lending, misleading practices, and legal actions: Is SoLo Funds in trouble?

  • Attorney General for the District of Columbia and the California DFPI have penalized SoLo Funds for breaching a number of consumer protection laws.
  • The DFPI also issued a consent order for the Black-owned firm, which is raising eyebrows and more questions.
Sara Khairi | May 17, 2023
10-Q, Member Exclusive

Robinhood’s losses override revenue, PayPal’s stock dips, while Dave delivers more than expected in Q1

  • Everything investors need to know about Robinhood, PayPal, and Dave’s Q1 2023 earnings.
  • Some important fintech stocks are on the path to recovery, while others crashed on Q1 earnings.
Sara Khairi | May 15, 2023
More Articles