MoneyLion Announces $20 Million Share Repurchase Program

Rhea-AI Summary

MoneyLion Inc. (NYSE: ML), a digital finance ecosystem, has announced a $20 million share repurchase program authorized by its Board of Directors. The program allows MoneyLion to buy back its outstanding Class A common stock through various methods, including open market transactions and privately negotiated deals. With no fixed expiration date, the repurchase volume and timing will depend on market conditions and other factors.

MoneyLion retains the flexibility to modify, suspend, or discontinue the program at its discretion. The company plans to fund the repurchases from existing cash reserves and future cash flows. As of June 30, 2024, MoneyLion had approximately $98 million in cash and cash equivalents. The company reported 10,968,455 shares of Class A common stock outstanding as of August 1, 2024.

Positive

• Authorization of $20 million share repurchase program
• Flexibility in repurchase methods and timing
• Strong cash position with $98 million in cash and cash equivalents
• Potential to increase shareholder value through stock buybacks

Negative

• Repurchase program may reduce cash available for other investments or operations
• No guarantee of positive impact on stock price or shareholder value

Insights

Financial Analyst

MoneyLion's $20 million share repurchase program signals confidence in the company's financial position and future prospects. With $98 million in cash as of June 30, this program represents about 20% of their cash reserves. The flexibility in timing and execution method allows MoneyLion to optimize market conditions for repurchases. However, investors should note that the program's impact on share price may be , given the company's 10.97 million outstanding shares. This move could potentially boost earnings per share and signal undervaluation, but it's important to consider MoneyLion's growth strategy and capital allocation priorities in the competitive fintech landscape.

Market Research Analyst

This share repurchase program reflects MoneyLion's strategic response to market dynamics. In the current fintech sector, where investor sentiment has been cautious, such a move can be seen as a vote of confidence in the company's intrinsic value. The program's flexibility is noteworthy, allowing MoneyLion to adapt to market fluctuations. However, the impact on stock liquidity should be monitored, especially given the relatively small float. Investors should view this alongside MoneyLion's user growth metrics and competitive positioning in the digital finance ecosystem to gauge its long-term potential.

Tech Expert

For a fintech company like MoneyLion, a share repurchase program could indicate a mature phase in its growth cycle. While it's a positive sign of financial stability, it's important to assess whether this capital could be better allocated towards technology investments or product development in the rapidly evolving digital finance space. Investors should scrutinize MoneyLion's innovation pipeline and user acquisition strategies to ensure the company isn't sacrificing long-term technological competitiveness for short-term stock price support. The balance between shareholder returns and reinvestment in the platform will be key to MoneyLion's future success in the crowded fintech market.

NEW YORK--(BUSINESS WIRE)-- MoneyLion Inc. (“MoneyLion”) (NYSE: ML), a digital ecosystem for consumer finance that empowers everyone to make their best financial decisions, today announced that its Board of Directors has authorized the repurchase of up to $20 million of MoneyLion’s outstanding Class A common stock (the “Repurchase Program”).

Under the Repurchase Program, MoneyLion may repurchase from time to time shares of its Class A common stock for cash through any manner, including open market transactions (including pursuant to broker plans in accordance with Rule 10b5-1 and Rule 10b-18), privately negotiated transactions with third parties or accelerated share repurchase agreements, and in such amounts as MoneyLion deems appropriate, subject to legal requirements and other corporate considerations.

The volume and timing of any repurchases will be subject to general market conditions, as well as MoneyLion’s management of capital, other investment opportunities and other factors. The Repurchase Program does not obligate MoneyLion to repurchase any specific dollar amount or number of shares, has no fixed expiration date and may be modified, suspended or discontinued at any time at MoneyLion’s discretion.

MoneyLion currently expects to fund the Repurchase Program from existing cash on hand and future cash flows. As of June 30, 2024, MoneyLion had cash and cash equivalents of approximately $98 million. MoneyLion had 10,968,455 shares of Class A common stock outstanding as of August 1, 2024.

About MoneyLion

MoneyLion is a leader in financial technology powering the next generation of personalized products, content, and marketplace technology, with a top consumer finance super app, a premier embedded finance platform for enterprise businesses and a world-class media arm. MoneyLion’s mission is to give everyone the power to make their best financial decisions. We pride ourselves on serving the many, not the few; providing confidence through guidance, choice, and personalization; and shortening the distance to an informed action. In our go-to money app for consumers, we deliver curated content on finance and related topics, through a tailored feed that engages people to learn and share. People take control of their finances with our innovative financial products and marketplace - including our full-fledged suite of features to save, borrow, spend, and invest - seamlessly bringing together the best offers and content from MoneyLion and our 1,200+ Enterprise Partner network, together in one experience.

MoneyLion’s enterprise technology provides the definitive search engine and marketplace for financial products, enabling any company to add embedded finance to their business, with advanced AI-backed data and tools through our platform and API. Established in 2013, MoneyLion connects millions of people with the financial products and content they need, when and where they need it.

For more information about MoneyLion, please visit www.moneylion.com. For information about Engine by MoneyLion for enterprise businesses, please visit www.engine.tech. For investor information and updates, visit investors.moneylion.com and follow @MoneyLionIR on X.

Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding, among other things, MoneyLion’s financial position, results of operations, cash flows, prospects and growth strategies. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of MoneyLion’s management, are subject to a number of risks and uncertainties and are not predictions of actual performance. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of MoneyLion.

Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, among other things: factors relating to the business, operations and financial performance of MoneyLion, including market conditions and global and economic factors beyond MoneyLion’s control; MoneyLion's ability to acquire, engage and retain customers and clients and sell or develop additional functionality, products and services to them on the MoneyLion platform; MoneyLion’s reliance on third-party partners, service providers and vendors, including its ability to comply with applicable requirements of such third parties; demand for and consumer confidence in MoneyLion’s products and services, including as a result of any adverse publicity concerning MoneyLion; any inaccurate or fraudulent information provided to MoneyLion by customers or other third parties; MoneyLion’s ability to realize strategic objectives and avoid difficulties and risks of any acquisitions, strategic investments, entries into new businesses, joint ventures, divestitures and other transactions; MoneyLion’s success in attracting, retaining and motivating its senior management and other key personnel; MoneyLion’s ability to renew or replace its existing funding arrangements and raise financing in the future, to comply with restrictive covenants related to its long-term indebtedness and to manage the effects of changes in the cost of capital; MoneyLion's ability to achieve or maintain profitability in the future; intense and increasing competition in the industries in which MoneyLion and its subsidiaries operate; risks related to the proper functioning of MoneyLion’s information technology systems and data storage, including as a result of cyberattacks, data security breaches or other similar incidents or disruptions suffered by MoneyLion or third parties upon which it relies; MoneyLion’s ability to protect its intellectual property and other proprietary rights and its ability to obtain or maintain intellectual property, proprietary rights and technology licensed from third parties; MoneyLion’s ability to comply with extensive and evolving laws and regulations applicable to its business and the outcome of any legal or governmental proceedings that may be instituted against MoneyLion; MoneyLion's ability to establish and maintain an effective system of internal controls over financial reporting; MoneyLion’s ability to maintain the listing of MoneyLion’s Class A common stock and its publicly traded warrants to purchase MoneyLion Class A common stock on the New York Stock Exchange and any volatility in the market price of MoneyLion’s securities; and factors discussed in MoneyLion’s filings with the Securities and Exchange Commission. There may be additional risks that MoneyLion presently knows or that MoneyLion currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements.

In addition, forward-looking statements reflect MoneyLion’s expectations, plans or forecasts of future events and views as of the date of this press release. MoneyLion anticipates that subsequent events and developments will cause its assessments to change. However, while MoneyLion may elect to update these forward-looking statements at some point in the future, MoneyLion specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing MoneyLion’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240823229330/en/

MoneyLion Investor Relations

ir@moneylion.com

MoneyLion Communications

pr@moneylion.com

Source: MoneyLion Inc.

FAQ

What is the size of MoneyLion's share repurchase program?

MoneyLion (NYSE: ML) has authorized a $20 million share repurchase program for its outstanding Class A common stock.

When does MoneyLion's share repurchase program expire?

The share repurchase program has no fixed expiration date and can be modified, suspended, or discontinued at MoneyLion's discretion.

How will MoneyLion fund the share repurchase program?

MoneyLion expects to fund the repurchase program from its existing cash on hand and future cash flows. As of June 30, 2024, the company had approximately $98 million in cash and cash equivalents.

How many shares of Class A common stock does MoneyLion have outstanding?

As of August 1, 2024, MoneyLion had 10,968,455 shares of Class A common stock outstanding.