Propel Holdings Inc. (“Propel” or the “Company”) (TSX: PRL), the fintech facilitating access to credit for underserved consumers, today reported record financial results for the three months ended September30, 2025 (“Q3 2025”). Propel also announced that its Board of Directors has approved a further increase to its dividend from C$0.78 to C$0.84 per share on an annualized basis, effective Q4 2025. This represents an increase of 8% and the Company's ninth consecutive dividend increase. All amounts are expressed in U.S. dollars unless otherwise stated.
Financial and Operational Highlights for Q3 2025 (Shown in U.S. Dollars unless otherwise stated) Comparable metrics relative to Q3 2024and year-to-date Q3 2024, respectively
— Revenue:increased by 30% to $152.1 million in Q3 2025, and increased by 35% to $434.0 million for year-to-date 2025, representing record performance for both periods
— Adjusted EBITDA1,4:increased by 12% to $32.3 million in Q3 2025, and increased by 22% to $108.7 million for year-to-date 2025, representing record performance for a nine-month period ending Q3
— Net Income:increased by 43% to $15.0 million in Q3 2025, and increased by 54% to $53.6 million for year-to-date 2025, representing record performance for a nine-month period ending Q3
— Adjusted Net Income1,4:increased by 16% to $16.2 million in Q3 2025, and increased by 29% to $58.7 million for year-to-date 2025, representing record performance for a nine-month period ending Q3
— Diluted EPS2:increased by 26% to $0.36 (C$0.49) in Q3 2025, and increased by 36% to $1.27 (C$1.77) for year-to-date 2025, representing record performance for a nine-month period ending Q3
— Adjusted Diluted EPS1,2,4:increased by 2% to $0.38 (C$0.53) in Q3 2025, and increased by 14% to $1.39 (C$1.95) for year-to-date 2025, representing record performance for a nine-month period ending Q3
— Return on Equity3: achieved 24% in Q3 2025 on an annualized basis compared to 34% in Q3 2024, and achieved 30% for year-to-date 2025 compared to 40% for year-to-date 2024
— Adjusted Return on Equity1,4:achieved 25% in Q3 2025 on an annualized basis compared to 45% in Q3 2024, and achieved 33% for year-to-date 2025 compared to 52% for year-to-date 2024
— Loans and Advances Receivable:increased by 31% in Q3 2025 to $434.8 million, a record ending balance
— Ending Combined Loan and Advance Balances (“CLAB”)1:increased by 29% in Q3 2025 to $557.7 million, a record ending balance
— Dividend:paid a Q3 2025 dividend of C$0.195 per common share on September 4, 2025, representing an 8% increase to our Q2 2025 dividend
Management Commentary
“Building on a record first half, we are proud to deliver another strong quarter, achieving record quarterly revenue, Total Originations Funded1 and Ending CLAB1.
Amid a dynamic macroeconomic environment, Propel and its Bank Partners maintained disciplined underwriting and stable credit performance. With more than fourteen years of experience serving the non-prime consumer, Propel's AI-powered technology, data and expertise enable us to adapt quickly and perform through all credit cycles. This discipline drove another quarter of profitable growth, while achieving credit results similar to the third quarter of 2024, underscoring the stability of our portfolio and the strength of our underwriting discipline and approach to risk.
Now, well into our highest-demand quarter, we are maintaining a deliberate and disciplined approach amid the current economic environment to continue driving profitable growth. Looking ahead, our business development pipeline is robust, and the investments we have made in infrastructure, technology, new products and partnerships position us well for 2026 and beyond. We remain determined to becoming the global leader in providing credit to underserved consumers. The best is yet to come,” said Clive Kinross, Chief Executive Officer.
Discussion of Financial Results and Business Strategy
— Continued strong consumer demand drove record quarterly Total Originations Funded1, Ending CLAB1 and revenue
— Together with our Bank Partners, we achieved record Total Originations Funded1 even while maintaining a tightened underwriting posture. Despite a strategic emphasis on returning and existing customers, representing 56% of Total Originations Funded1 in Q3 2025, we and our Bank Partners also achieved record quarterly new customer originations
— Total Originations Funded1 increased by 37% year-over-year to a quarterly record of $205.3 million in Q3 2025, driving Ending CLAB1 to a record of $557.7 million, up 29% from Q3 2024
— The Annualized Revenue Yield1 decreased to 113% in Q3 2025 from 114% in Q3 2024. The modest decline was primarily due to: i) a larger proportion of originations from return and existing customers; ii) a higher allocation of originations within our US portfolios towards consumers with higher credit quality attributes and associated lower cost of credit; and iii) the continued aging of the loan portfolio including the graduation of customers to lower cost of credit
— The record Ending CLAB1 drove the 30% growth and record revenue in Q3 2025 of $152.1 million
— Propel delivered stable seasonal credit performance (representing a 52% provision for loan losses and other liabilities as a percentage of revenue) consistent with Q3 2024
— Within Propel's North American operations, we and our Bank Partners maintained a disciplined underwriting posture and made further credit model adjustments to achieve targeted credit performance during the quarter
— We observed inflationary pressures among lower-income consumers, which modestly constrained household budgets and reinforced our focus on prudent underwriting and portfolio quality
— The Lending as a Service (LaaS) program delivered record revenue in Q3 2025
— Propel increased commitments from existing purchasers, while continuing to onboard and engage with additional purchasers
— Two additional US states were added to theLaaS program in late Q3 2025 allowing us to facilitate access to credit to even more underserved consumers, positioning the program for higher origination volumes and revenue growth going forward
— Performance in the UK market accelerated in Q3 2025 and remains on track to exceed expectations for the full year
— QuidMarket delivered record quarterly revenue and maintained strong credit performance, supported by a stable operating environment, continued consumer resiliency and ongoing execution of our growth strategy
— Revenue growth is tracking above 50% year-over-year, ahead of expectations and reflecting the strength of the integration, disciplined underwriting, and expanding distribution channels
— The business is well-positioned to sustain this momentum into 2026 and beyond, as Propel introduces new products and further leverages its proprietary risk, technology and data analytics platform
— Net income and Adjusted Net Income1 both increased year-over-year, supported overall growth and the continued strength of the Company's core operations
— Net income was $15.0 million in Q3 2025, a 43% increase over Q3 2024, and Adjusted Net Income1,4 was $16.2 million in Q3 2025, a 16% increase over Q3 2024
— Net income margin increased to 10% in Q3 2025 from 9% in Q3 2024, while Adjusted Net Income Margin1,4 decreased to 11% in Q3 2025 from 12% in Q3 2024
— Strong consolidated financial position and continued earnings growth supports the continued expansion of existing programs, growth initiatives and an increase to our dividend
— The Company ended Q3 2025 with approximately $125 million of undrawn credit capacity on its various credit facilities with a Debt-to-Equity3 ratio of 1.2x
— The Debt-to-Equity3 ratio has decreased from 1.3x at the end of Q4 2024, even with the 29% growth in Ending CLAB1 for the three month period ending September 30, 2025
— Strong operating results and financial position supported the decision to increase our quarterly dividend by 8% to C$0.21 per common share in Q4 2025
Update on Fiscal Year 2025 Operating and Financial Targets
The macroeconomic environment remains dynamic in our largest market, the US. Persistent inflationary pressures in essential spending categories, moderating wage growth among lower-income consumers, recent trade tariffs, and the temporary effects of the recent federal government shutdown have contributed to a more cautious operating posture. Against this backdrop, Propel and its Bank Partners are taking a deliberate measured approach in the current environment, maintaining discipline in underwriting and portfolio management while focusing on credit quality and profitable growth. Given the uncertainty in the current macroeconomic environment, and in line with the Company's commitment to delivering value through profitable growth, a cautious stance toward risk, and resultantly, growth, is critical for long-term success. Management has already begun to see the early benefits from these actions and believes they will support continued stability in credit performance heading into 2026.
Despite the dynamic macroeconomic environment, Propel continues to expect to be in line with the financial targets for revenue, net income margin and return on equity3 provided earlier this year in its initial operating and financial outlook for fiscal year 2025. However, in light of its prudent operating posture and focus on sustainable, profitable growth, the Company is making moderate adjustments to its other fiscal year 2025 operating and financial targets as follows: Ending CLAB1 growth rate of 18% to 22%, Adjusted EBITDA Margin1 of 23% to 25%, Adjusted Net Income Margin1 of 11.75% to 12.5%, and Adjusted ROE1 of 29%+.
Notwithstanding this update, the Company believes that its fundamentals remain strong. Credit performance remains within target ranges albeit at lower seasonally-adjusted originations, consumer demand remains resilient, and Propel is well-positioned heading into 2026 with a stronger portfolio, enhanced operating leverage and significant long-term growth potential.
Dividend Increase
Propel also announced today that its board of directors has approved a further increase to its dividend from C$0.78 per common share to C$0.84 per common share on an annualized basis. This represents an increase of 8% and the Company's ninth consecutive dividend increase. The board declared a dividend of C$0.21 per common share, payable on December 4, 2025 to shareholders of record as of the close of business on November 14, 2025. The Company has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada).
Conference Call Details
The Company will be hosting a conference call and webcast tomorrow morning with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.
Conference call details are as follows:
About Propel
Propel Holdings (TSX: PRL) the fintech building a new world of financial opportunity for consumers, partners, and investors. Propel's operating brands – Fora Credit, CreditFresh, MoneyKey and QuidMarket – and its Lending-as-a-Service product line facilitate access to credit for consumers underserved by traditional financial institutions. Through its AI-powered platform, Propel evaluates customers in a more comprehensive way than traditional credit scores can. The result is better products and an expanded credit market for consumers while creating sustainable, profitable growth for Propel. The revolutionary fintech platform has already helped consumers access over one million loans and lines of credit and over two billion dollars in credit. At Propel, we are here to change the way customers, partners and investors succeed together. Learn more at propelholdings.com
Non-IFRS Financial Measures and Industry Metrics
This press release makes reference to certain non-IFRS financial measures and industry metrics. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Such measures include “Adjusted Diluted EPS”, “Adjusted EBITDA”, “Adjusted EBITDA Margin”, “Adjusted Net Income”, “Adjusted Net Income Margin”, “Adjusted Return on Equity”, “EBITDA”, “EBITDA Margin”, “Ending CLAB”, and “Total Originations Funded”. This press release also includes references to industry metrics such as “Annualized Revenue Yield”, “Return on Equity” and “Total Originations Funded” which are supplementary measures under applicable securities laws.
These non-IFRS financial measures and industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and industry metrics in the evaluation of issuers. The Company's management also uses non-IFRS financial measures and industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management and executive compensation. The key performance indicators used by the Company may be calculated in a manner different than similar key performance indicators used by other similar companies.
Definitions and reconciliations of non-IFRS financial measures to the relevant reported measures can be found in our accompanying MD&A available on SEDAR+. Such reconciliations can also be found in this press release under the heading “Reconciliation of Non-IFRS Financial Measures” below.
Forward-Looking Information
Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to our updated fiscal year 2025 operating and financial targets, our dividend scheduled for December 4, 2025, our ability to deliver strong results in the second half of 2025, our business development pipeline and our ability to expand our products, enter new markets, and enhance our partnerships, the strong demand from consumers we expect to see throughout 2025, our ability to introduce the Propel brand to a growing number of consumers and grow our business, our ability to accelerate QuidMarket's growth even faster than originally expected in the second half of 2025 and into 2026. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.
The updated fiscal year 2025 operating and financial targets provided above are based on management's current strategies and expectations and may be considered forward-looking information under applicable securities laws. Such targets are based on estimates and assumptions made by management regarding, among other things, the following: the regulatory landscape applicable to the Company's operations; the continued expansion of the Company's Bank Program relationships; the availability and cost of debt capital for the Company; the maintenance and expansion of the Company's marketing partnerships; and the macroeconomic environment in fiscal 2025 and its impact on the Company, including any potential impact from tariffs on our consumer segment.
Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company's annual information form dated March12, 2025 for the year ended December 31, 2024 (the “AIF”). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on SEDAR+ at www.sedarplus.ca.
The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this press release represents our expectations as of the date of this press release (or as the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Selected Financial Information
Reconciliation of Non-IFRS Financial Measures The following table provides a reconciliation of Propel's net income to EBITDA1 and Adjusted EBITDA1,3:
The following table provides a reconciliation of Propel's Net Income to Adjusted Net Income1,3, Adjusted Return on Equity1,3 and Adjusted Net Income margin1,3:
The following table provides a reconciliation of Propel's Ending CLAB1 to loans and advances receivable:
SOURCE Propel Holdings Inc.
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