Solution Financial Reports Q1 2026 Financial Results

Executive Summary

• Solution Financial Inc. reported Q1 FY2026 revenue of $3.18 M, a 29% year‑over‑year increase, but posted a net loss of $17,843.
• Adjusted net income turned positive to $17,980, reversing the prior year’s adjusted net loss of $8,197.
• Lease portfolio remained stable at approximately $32.3 M with 376 vehicles and generated annualized gross cash flows of about $7.7 M.

Key Details

• Revenue: $3,184,488 for the three months ended Jan 31 2026 vs. $2,474,474 in Q1 2025 (+$710,014 / +29%).
• Net Loss (GAAP): $17,843 for Q1 2026 vs. net loss of $63,595 in comparable 2025 period.
• Adjusted Net Income: $17,980 (≈ $0.000 per share) for Q1 2026 vs. adjusted net loss of $8,197 in Q1 2025. Adjustments excluded:
• Right‑of‑use asset accretion expense – $15,238
• Income tax recovery – $6,500
• Amortization – $26,517
• Additional accretion expense – $568
• Lease Portfolio:
• Total vehicles: 376 (net increase of 4 vs. prior quarter)
• Net book value of portfolio: $32.3 M
• Average remaining lease term: 1.9 years (weighted by net book value)
• Annualized gross rental & lease cash flows: ≈ $7.7 M from 372 active leases
• Operational Highlights:
• Vehicle sales revenue rose sharply due to opportunistic remarketing of existing leased assets.
• Launched a new equity‑unlock program for luxury vehicle owners, with promotions slated for Q2 2026.
• Management Commentary (CEO Bryan Pang): Emphasized disciplined cost control, reduced marketing and commission expenses, and a strategic shift toward finance‑type leases with contractual residual guarantees to improve capital efficiency.

Notable Quotes

“The first quarter of fiscal 2026 reflects continued discipline in our operating approach while navigating a slower luxury vehicle leasing environment… Revenue increased meaningfully year‑over‑year, driven primarily by opportunistic vehicle remarketing activity within our portfolio.” – Bryan Pang, President & CEO

“Our ongoing transition toward finance‑type leases with contractual residual guarantees, combined with our securitization financing platform, provides greater stability and improved capital efficiency for the Company as we continue to scale our portfolio.” – Bryan Pang