Solution Financial Reports Year End 2025 Financial Results

Executive Summary

• Solution Financial Inc. reported FY 2025 net income of $273,872 (down 23% YoY) and adjusted net income of $383,868 (down 35% YoY).
• Revenue fell to $10.61 M, a 15% decline from the prior year, while the leasing portfolio grew 17% to $32.7 M.
• The company added 30 vehicles to its lease book, now totaling 372 leases with an average remaining term of 2.15 years and generating approximately $7.7 M of annualized gross rental cash flow.

Key Details

• Net Income: $273,872 for FY 2025 vs. $355,018 in FY 2024; $0.003 per share vs. $0.004 per share.
• Adjusted Net Income (non‑IFRS): $383,868 ($0.004 per share) vs. $587,736 ($0.006 per share) in FY 2024. Adjustments exclude:
• Right‑of‑use asset accretion expense – $60,660
• Lease liability accretion expense – $4,325
• Income tax recovery – $111,000
• Amortization – $108,312
• Provision for credit losses – $47,699
• Revenue: $10,606,642 (down from $12,509,839 in FY 2024).
• Leasing Portfolio Value: $32.7 M at October 31 2025, up 17% from $28.0 M in FY 2024.
• Number of Leases/Vehicles: 372 vehicles (30 more than prior year).
• Average Remaining Lease Term: 2.15 years (weighted by net book value).
• Annualized Gross Rental & Lease Cash Flow: Approximately $7.7 M.
• Operational Initiatives:
• Expanded dealership relationships in Ontario.
• Launched “Equity Unlock” sale‑leaseback program and added a new sales executive for corporate leasing growth.
• Implemented new FINTRAC procedures to meet upcoming 2026 regulatory requirements.
• Ongoing cost‑streamlining efforts to improve profitability.

Notable Quotes

• Bryan Pang, CEO: “Fiscal 2025 was a year of disciplined execution in a more challenging macroeconomic environment… we grew our leasing portfolio by 17% to $32.7 M, underscoring the durability of our core business and continued demand for flexible luxury leasing solutions.”
• Bryan Pang, CEO (continued): “We focused on strengthening the foundation of the Company – expanding distribution, diversifying our customer mix, enhancing our corporate leasing capabilities, and advancing regulatory readiness. These initiatives position us well to manage risk, improve efficiency, and pursue sustainable, long‑term growth as market conditions normalize.”