Solution Financial earns $93,077 in fiscal Q3 2025

Executive Summary

• Solution Financial Inc. reported financial results for the third quarter ended July 31, 2025, showing a decline in both net income and revenue compared to the same period in 2024.
• The company’s total leasing portfolio grew to approximately $31.8 million, with 369 vehicles in the portfolio generating annualized gross rental and lease cash flows of approximately $7.8 million.
• Operational highlights include a renewed securitization financing facility, completed AML compliance updates, and the implementation of AI-driven enhancements to quoting and reporting systems.

Key Details

• Net Income: $93,077 for Q3 2025, compared to $181,158 in Q3 2024.
• Earnings Per Share (EPS): Net income of $0.001 per share in Q3 2025, compared to $0.002 per share in Q3 2024.
• Adjusted Net Income: $190,256 for Q3 2025, compared to $298,162 in Q3 2024.
• Adjusted EPS: $0.002 per share in Q3 2025, compared to $0.003 per share in Q3 2024.
• Revenue: $2,296,637 for Q3 2025, compared to $4,097,517 in Q3 2024.
• Lease Portfolio Value: Increased to $31,798,185 (approx. $31.8 million) at July 31, 2025, up from $30,123,209 in the prior quarter.
• Portfolio Composition: 369 vehicles in the lease portfolio, a net increase of 14 vehicles over the quarter.
• Lease Terms: Average remaining lease term of 2.58 years (weighted by net book value).
• Cash Flows: The 369 leases generate annualized gross rental and lease cash flows of approximately $7.8 million.
• Adjusted Net Income Adjustments: Excludes non-cash accretion expense related to right-of-use assets ($16,482), income tax provision ($33,350), amortization ($28,733), and provision for credit losses ($18,614).
• Financing: Renewed securitization financing facility in May 2025.
• Operational Updates: Completed new AML compliance training and program updates; finalized AI-driven enhancements to quoting and reporting capabilities.

Notable Quotes

• "The third quarter reflects both the strength of our core portfolio and the continued progress we are making on operational excellence," said Bryan Pang, chief executive officer of Solution Financial. "Reaching a $31-million portfolio is a meaningful milestone for our business, and we are encouraged by early quoting activity in the ultraluxury segment, which has the potential to further expand our market reach."