Propel Reports Record Quarterly Results and Announces Dividend Increase

Executive Summary

• Propel Holdings Inc. reported record financial results for Q2 2025, with revenue increasing 34% year-over-year to $143.0 million and net income rising 36% to $15.1 million.
• The company announced an 8% increase in its quarterly dividend to C$0.195 per share (C$0.78 annualized), marking the eighth consecutive dividend increase.
• Operational highlights include record Total Originations Funded ($194.4 million) and record Ending Combined Loan and Advance Balances (CLAB) of $520.4 million, driven by strong consumer demand and disciplined underwriting.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $143.0 million (up 34% YoY); Year-to-date revenue: $281.9 million (up 39% YoY).
  • Net Income: $15.1 million (up 36% YoY); Year-to-date Net Income: $38.6 million (up 59% YoY).
  • Adjusted EBITDA: $35.2 million (up 16% YoY); Year-to-date Adjusted EBITDA: $76.5 million (up 26% YoY).
  • Adjusted Net Income: $19.2 million (up 22% YoY); Year-to-date Adjusted Net Income: $42.6 million (up 35% YoY).
  • Diluted EPS: $0.36 (up 20% YoY); Year-to-date Diluted EPS: $0.91 (up 40% YoY).
  • Adjusted Diluted EPS: $0.45 (up 8% YoY); Year-to-date Adjusted Diluted EPS: $1.01 (up 19% YoY).
  • Return on Equity: 25% (annualized); Adjusted Return on Equity: 32% (annualized).
• Operational Metrics:
  • Total Originations Funded: $194.4 million (up 35% YoY), a quarterly record.
  • Ending Combined Loan and Advance Balances (CLAB): $520.4 million (up 33% YoY), a quarterly record.
  • Loans and Advances Receivable: $407.3 million (up 33% YoY), a quarterly record.
  • Monthly revenue in June 2025 exceeded $50 million for the first time.
  • Provision for loan losses and other liabilities as a percentage of revenue decreased to 49.8% (lowest Q2 percentage since going public).
• Dividend Information:
  • Board approved an increase from C$0.72 to C$0.78 per share on an annualized basis (8% increase).
  • Declared quarterly dividend of C$0.195 per common share.
  • Payable on September 4, 2025, to shareholders of record as of August 27, 2025.
• Balance Sheet and Capital Structure:
  • Undrawn credit capacity: Approximately $151 million.
  • Debt-to-Equity ratio: 1.1x (down from 1.3x at end of Q4 2024).
  • CreditFresh credit facility amended and upsized by $70 million to $400 million.
  • MoneyKey credit facility refinanced with a $15 million commitment.
  • Overall cost of capital lowered by approximately 150 basis points per annum due to refinancing.
• Business Updates:
  • QuidMarket delivered record Q2 revenue with strong credit performance; integration is ahead of schedule.
  • Lending as a Service (LaaS) program delivered record revenue in Q2.
  • Return and existing customers represented 57% of Total Originations Funded in Q2.

Notable Quotes

• "Building on a record first quarter, we are proud to deliver another strong quarter, with record quarterly revenue, Total Originations Funded and Ending CLAB." — Clive Kinross, Chief Executive Officer
• "Amidst ongoing macroeconomic uncertainty and tightening in the traditional consumer credit market, consumer demand remained strong. Our disciplined underwriting approach and AI-powered platform enabled us and our Bank Partners to serve more underserved consumers than ever while achieving our strongest Q2 credit performance since going public." — Clive Kinross, Chief Executive Officer