ECN Capital Reports US$0.05 in Adjusted Net Income per Common Share in Q4 2025

Executive Summary

• ECN Capital reported Q4 2025 Adjusted net income of $13.6 M ($0.05 per share), a decline from the prior quarter but an improvement versus the comparable period last year.
• The company disclosed a definitive arrangement to be acquired by Sinatra CA Acquisition Corp., controlled by Warburg Pincus, at C$3.10 per common share (enterprise value ≈ C$1.9 bn). Closing is expected in H1 2026 pending regulatory approvals.
• A quarterly dividend of C$0.01 per common share and C$0.4960625 per Series C preferred share was declared, payable March 31 2026.

Key Details

• Financial Performance (Q4 2025):
• Adjusted net income: $13.6 M ($0.05/share, basic).
• Net income attributable to common shareholders: $4.5 M (vs. $11.2 M prior quarter; vs. $(3.9) M prior year).
• Originations: $662.4 M total – $447.9 M from Manufactured Housing Finance and $214.5 M from RV & Marine Finance.
• Managed assets (Dec 31 2025): $7.3 bn.
• Adjusted EBITDA: $36.2 M.

• Operating expenses: $35.8 M.

• Acquisition Arrangement:

• Arrangement Agreement signed Nov 13 2025 with Sinatra CA Acquisition Corp., a Warburg Pincus‑led vehicle.
• Purchase price: C$3.10 cash per common share; C$26.00 cash per Series C preferred share (plus accrued dividends); C$3.10 cash per Series E preferred share (plus accrued dividends).
• Transaction to be effected via a statutory plan of arrangement under the Ontario Business Corporations Act.
• Shareholder approval obtained Jan 20 2026; final court order received Jan 22 2026.

• Expected closing: first half of 2026, subject to regulatory approvals.

• Dividends Declared:

• Common share quarterly dividend: C$0.01 per share, payable March 31 2026 (record date Mar 20 2026).

• Series C preferred share quarterly dividend: C$0.4960625 per share, same payment and record dates.

• Non‑IFRS Measures Disclosure:

• Company emphasizes use of adjusted EBITDA, adjusted net income, managed assets, etc., with reconciliations available in the MD&A filed on SEDAR+.

Notable Quotes

“The company is actively engaged in obtaining the necessary approvals for the transaction and progress is tracking to closing early in the second quarter,” – Steve Hudson, CEO.