Propel Reports Record Quarterly Results and Announces Dividend Increase
TORONTO, Aug. 6, 2025 /CNW/ - Propel Holdings Inc. ("Propel" or the "Company") (TSX:PRL), the fintech facilitating access to credit for underserved consumers, today reported record financial results for the three months ended June 30, 2025 ("Q2 2025"). Propel also announced that its Board of Directors has approved a further increase to its dividend from C$0.72 to C$0.78 per share on an annualized basis, effective Q3 2025. This represents an increase of 8% and the Company's eighth consecutive dividend increase. All amounts are expressed in U.S. dollars unless otherwise stated.
Financial and Operational Highlights for Q2 2025 (Shown in U.S. Dollars) Comparable metrics relative to Q2 2024 and year-to-date Q2 2024, respectively
Revenue: increased by 34% to $143.0 million in Q2 2025, and increased by 39% to $281.9 million for year-to-date 2025, representing record performance for both periods
Adjusted EBITDA1,5: increased by 16% to $35.2 million in Q2 2025, and increased by 26% to $76.5 million for year-to-date 2025, representing record performance for a six-month period ending Q2
Net Income: increased by 36% to $15.1 million in Q2 2025, and increased by 59% to $38.6 million for year-to-date 2025, representing record performance for a six-month period ending Q2
Adjusted Net Income1,5: increased by 22% to $19.2 million in Q2 2025, and increased by 35% to $42.6 million for year-to-date 2025, representing record performance for a six-month period ending Q2
Diluted EPS2: increased by 20% to $0.36 (C$0.49) in Q2 2025, and increased by 40% to $0.91 (C$1.29) for year-to-date 2025, representing record performance for a six-month period ending Q2
Adjusted Diluted EPS1,2,5: increased by 8% to $0.45 (C$0.63) in Q2 2025, and increased by 19% to $1.01 (C$1.42) for year-to-date 2025, representing record performance for a six-month period ending Q2
Return on Equity3: achieved 25% in Q2 2025 on an annualized basis compared to 38% in Q2 2024, and achieved 33% for year-to-date 2025 compared to 44% for year-to-date 2024
Adjusted Return on Equity1,5: achieved 32% in Q2 2025 on an annualized basis compared to 54% in Q2 2024, and achieved 37% for year-to-date 2025 compared to 56% for year-to-date 2024
Loans and Advances Receivable: increased by 33% in Q2 2025 to $407.3 million, a record ending balance
Ending Combined Loan and Advance Balances ("CLAB")1: increased by 33% in Q2 2025 to $520.4 million, a record ending balance
Dividend: paid a Q2 2025 dividend of C$0.18 per common share on June 4, 2025, representing a 9% increase to our Q1 2025 dividend
Management Commentary
"Building on a record first quarter, we are proud to deliver another strong quarter, with record quarterly revenue, Total Originations Funded1 and Ending CLAB1.
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.
Looking ahead, we are confident in our ability to deliver strong results in the second half of 2025. With a robust business development pipeline for 2025 and beyond, we believe that we are well-positioned to expand our products, enter new markets, and enhance our partnerships. In a dynamic environment, our AI-powered platform, disciplined risk management, and diversified multi-jurisdictional footprint will continue to differentiate us. We have the talent, capital, technology and strategic alignment to become the global leader in underserved credit. The best is yet to come," said Clive Kinross, Chief Executive Officer.
Discussion of Financial Results and Business Strategy
Continued strong consumer demand led to record quarterly Total Originations Funded1, Ending CLAB1 and revenue
Together with our Bank Partners, we achieved record Total Originations Funded1 while maintaining a prudent underwriting posture. Even with a strategic emphasis on returning and existing customers, representing 57% of Total Originations Funded1 in Q2, we and our Bank Partners also achieved record quarterly new customer originations
Total Originations Funded1 increased by 35% to a quarterly record of $194.4 million in Q2 2025 vs. Q2 2024, resulting in Ending CLAB1 growing year-over-year by 33% to a record of $520.4 million
Annualized Revenue Yield1 decreased to 114% in Q2 2025 from 115% in Q2 2024. The modest decline was driven by a variety of factors including: i) a larger proportion of originations from return and existing customers; ii) the continued aging of the loan portfolio including the graduation of customers to lower cost of credit; and iii) the ongoing expansion of Fora
The record Ending CLAB1 drove the 34% growth and record revenue in Q2 2025 of $143.0 million
Propel also achieved in excess of $50 million in monthly revenue in June, marking the first time the Company has surpassed this threshold in a single month
Propel's North American operations, supported by its AI-powered technology, delivered strong credit performance and record results
Propel and its Bank Partners were able to capitalize on significant consumer demand while continuing to drive strong credit performance
While the Company experienced record demand, the provision for loan losses and other liabilities as a percentage of revenue decreased to 49.8% in Q2 2025
The provision for loan losses and other liabilities as a percentage of revenue in Q2 2025 represented the lowest percentage for a Q2 period since becoming a public company
Lending as a Service (LaaS) program delivered record revenue in Q2 2025, while Propel continued to increase commitments from existing purchasers while onboarding new purchasers
Overall revenue growth, operating leverage and effective cost management contributed to the year-over-year increase in net income and Adjusted Net Income1
Net income was $15.1 million in Q2 2025, a 36% increase over Q2 2024, and Adjusted Net Income1,5 was $19.2 million in Q2 2025, a 22% increase over Q2 2024
Net income margin increased to 11% in Q2 2025 from 10% in Q2 2024 and Adjusted Net Income Margin1,5 decreased to 13% in Q2 2025 from 15% in Q2 2024
The increase in year-over-year net income margin was primarily driven by the operating leverage in the business, while the decrease in the Adjusted Net Income1,5 margin was largely driven by a lower stage 1 provision add back
QuidMarket performance was strong and we expect its growth to further accelerate in the second half of 2025
QuidMarket delivered record Q2 revenue and exceptional credit performance, supported by a strong operating environment, continued consumer resiliency and strong execution on our plan
Integration is ahead of schedule and we believe that the business is well-positioned to grow even faster than originally expected in the second half of 2025 and into 2026
Strong consolidated financial position and continued earnings growth supports the continued expansion of existing programs, growth initiatives and an increase to our dividend
The Company ended Q2 2025 with approximately $151 million of undrawn credit capacity on its various credit facilities with a Debt-to-Equity3 ratio of 1.1x
The Debt-to-Equity3 ratio has decreased from 1.3x at the end of Q4 2024, even with the 33% growth in Ending CLAB1 for the three month period ending June 30, 2025
In Q2, the Company amended and upsized its CreditFresh credit facility by $70 million to $400 million with an additional bank and with increased commitments from several existing lenders
Furthermore, Propel refinanced its MoneyKey credit facility with a $15 million commitment
With the CreditFresh amendment and MoneyKey refinancing, the overall cost of capital will be lowered by approximately 150 basis points per annum4
Strong operating results and financial position supported the decision to increase our quarterly dividend by 8% to C$0.195 per common share in Q3 2025
Notes:
(1)
See "Non-IFRS Financial Measures and Industry Metrics" and "Reconciliation of Non-IFRS Financial Measures" below. See also "Key Components of Results of Operations" in the accompanying Q2 2025 MD&A for further details concerning the non-IFRS financial measures and industry metrics used in this press release including definitions and reconciliations to the relevant reported IFRS measure.
(2)
Results converted from USD to CAD assuming an exchange rate of USD/CAD $1.3841 and USD/CAD $1.4094 for the three-month and six-month periods ending June 30, 2025.
(3)
See "Supplemental Financial Measures" in the accompanying Q2 2025 MD&A for further details concerning certain financial metrics used in this press release including definitions.
(4)
Represents the weighted average cost of capital saving assuming full utilization of both the CreditFresh and MoneyKey credit facilities.
(5)
Comparative figures have been updated to conform with current presentation.
Dividend Increase
Propel also announced today that its board of directors has approved a further increase to its dividend from C$0.72 per common share to C$0.78 per common share on an annualized basis. This represents an increase of 8% and the Company's eighth consecutive dividend increase. The board declared a dividend of C$0.195 per common share, payable on September 4, 2025 to shareholders of record as of the close of business on August 27, 2025. The Company has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada).
Conference Call Details
The Company will be hosting a conference call and webcast tomorrow morning with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.
Conference call details are as follows:
Date:
Thursday, August 7, 2025
Time:
8:30 a.m. EDT
Toll-free North America:
1-888-699-1199
Local Toronto:
1-416-945-7677
Rapid Connect:
Click here
Webcast:
Click here
Replay:
1-888-660-6345 or 1-289-819-1450 (PIN: 79667#)
About Propel
Propel Holdings (TSX:PRL) the fintech building a new world of financial opportunity for consumers, partners, and investors. Propel's operating brands, Fora Credit, CreditFresh, MoneyKey and QuidMarket, and its Lending-as-a-Service product line facilitate access to credit for consumers underserved by traditional financial institutions. Through its AI-powered platform, Propel evaluates customers in a more comprehensive way than traditional credit scores can. The result is better products and an expanded credit market for consumers while ...
