Propel Reports Third Quarter Results and Announces Dividend Increase

TORONTO, Nov. 3, 2026 /CNW/ -- Propel Holdings Inc. ("Propel" or the "Company") (TSX: PRL), the fintech facilitating access to credit for underserved consumers, today reported financial results for the three months ended September 30, 2026 ("Q3 2026"). Propel also announced that its Board of Directors has approved a further increase to its dividend from C$1.02 to C$1.08 per share on an annualized basis, effective Q4 2026. This represents an increase of 6% and the Company's thirteenth consecutive quarterly dividend increase. All amounts are expressed in U.S. dollars unless otherwise stated.

Financial and Operational Highlights for Q3 2026 (Shown in U.S. Dollars unless otherwise stated)
Comparable metrics relative to Q3 2025, unless otherwise stated

• Revenue: increased by 32% to $201.5 million, representing a record

• Adjusted EBITDA¹: increased by 39% to $44.8 million, representing a record

• Net Income: increased by 23% to $18.4 million

• Adjusted Net Income¹: increased by 54% to $24.9 million, representing a record

• Diluted EPS²: increased by 22% to $0.43 (C$0.61)

• Adjusted Diluted EPS^1,2: increased by 53% to $0.59 (C$0.82), representing a record

• Return on Equity³: achieved 25% on an annualized basis

• Adjusted Return on Equity¹: achieved 34% on an annualized basis

• Loans and Advances Receivable: increased by 22% to $529.0 million, a record ending balance

• Ending Combined Loan and Advance Balances ("CLAB")¹: increased by 24% to $690.5 million, a record ending balance

• Dividend: paid a Q3 2026 dividend of C$0.255 per common share on September 3, 2026, representing a 6% increase to our Q2 2026 dividend

Management Commentary

"Propel delivered another strong quarter, with record revenue, Total Originations Funded¹, Ending CLAB¹, Adjusted EBITDA¹ and Adjusted Net Income¹, while generating an Adjusted Return on Equity¹ of 34%. For the first time in our history, quarterly revenue surpassed $200 million, marking another significant milestone in our growth.

Our results reflect the strength and resilience of our business model against an evolving economic environment. Consumer demand remains strong, while credit performance is consistent with our seasonal expectations. Importantly, we achieved this growth while maintaining a disciplined approach to underwriting with our Bank Partners.

Our expanding geographic presence and diversified marketing channels are enabling us to reach more consumers than ever before. New customer originations increased 55% year-over-year, including Lending as a Service. At the same time, our investments in AI, automation and operating infrastructure are driving greater efficiencies and enabling continued profitable growth.

These results demonstrate the scalability of our platform, the strength of our execution and the significant opportunity that remains ahead of us. Fifteen years into our journey, and five years since going public, we remain as ambitious as ever to expand access to credit for underserved consumers while delivering profitable growth in 2026 and beyond," said Clive Kinross, Chief Executive Officer.

Discussion of Financial Results and Business Strategy

• Platform expansion and strong demand drove record Total Originations Funded¹ and Ending CLAB¹
  • Propel and its Bank Partners delivered record quarterly Total Originations Funded¹, supported by strong demand from new, returning and existing customers
    • Total Originations Funded¹ increased by 27% year-over-year to a quarterly record of $260.7 million, driving Ending CLAB¹ to a record of $690.5 million, up 24% from Q3 2025
    • New customer Total Originations Funded¹ grew by 37% year-over-year and by 55% when including Lending-as-a-Service, reflecting continued success in expanding the Company's customer base
    • New customers represented 47% of Total Originations Funded¹, compared to 44% in Q3 2025, marking the highest proportion since Q4 2024. This reflects strong demand and the Company's expanding geographic footprint and distribution channels

• • Annualized Revenue Yield¹ increased to 121% in Q3 2026 from 113% in Q3 2025, primarily reflecting the growth in new customer originations, the continued scaling of Lending-as-a-Service ("LaaS"), and a greater contribution from higher yielding segments
  • The combination of higher Average CLAB¹ and an improved Annualized Revenue Yield¹ contributed to record quarterly revenue of $201.5 million, an increase of 32% compared to Q3 2025, marking the first time quarterly revenue surpassed $200 million

• Disciplined underwriting and a resilient consumer supported credit performance consistent with seasonal expectations
  • Provision for loan losses and other liabilities was 53% of revenue, compared to 52% in Q3 2025, driven mainly by a higher proportion of new customer originations. Net Charge-Offs as a percentage of Average CLAB¹ remained at approximately 12%, consistent with the prior year, reflecting disciplined underwriting and credit performance consistent with seasonal expectations while achieving record Total Originations Funded¹

• Net income and record Adjusted Net Income¹ reflect disciplined execution and operating efficiency
  • Net income increased by 23% to $18.4 million, while Adjusted Net Income¹ increased by 54% to a record $24.9 million in Q3 2026
  • Strong profitability was supported by record revenue and growing efficiencies from investments in technology, AI, automation and operating infrastructure, which are helping support the Company's ability to scale
    • Acquisition and data expenses decreased sequentially despite record originations, while the Cost Per New Customer Funded Origination¹ declined by 23% since Q1 2026, reflecting improving acquisition efficiencies as the Company's distribution channels continue to scale

• Continued growth across Propel's expanding platform
  • LaaS delivered record revenue of $13.5 million in Q3 2026, an increase of 170% year-over-year
    • LaaS growth was enabled by geographic and product expansion and committed long-term capital partners. Through a capital-light model this program generates fee-based revenue without corresponding balance-sheet funding requirements

• • Propel UK delivered record revenue of $22.0 million, an increase of 69% year-over-year, reflecting disciplined underwriting, expanded marketing channels and strong consumer demand
    • Approaching the second anniversary of the QuidMarket acquisition, the business continued to deliver strong growth, supported by Propel's capital, expertise and operational capabilities, reinforcing the opportunity in the UK market

• • Propel Bank contributed to Propel's growth through its U.S. servicing activities, while continuing to expand its capabilities and create additional opportunities for long-term growth

• Strong financial position supports continued growth, increasing dividends and disciplined capital management
  • The Company maintained a strong financial position at quarter end, with approximately $71 million of undrawn credit commitment capacity and a Debt-to-Equity³ ratio of 1.2x
    • Despite significant portfolio growth, the Debt-to-Equity³ ratio improved from 1.3x at the end of Q4 2025, reflecting strong internal capital generation and disciplined balance sheet management

• • The Company's cost of debt decreased to 10.2% in Q3 2026 from 11.0% in Q3 2025, primarily reflecting lower interest rates
  • The Company's strong financial position and continued earnings generation supported a 6% increase in the quarterly dividend to C$0.27 per common share beginning in Q4 2026, representing the thirteenth consecutive quarterly dividend increase

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 Q3 2026 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 $1.3993 for the three-month period ending September 30, 2026.
(3)	See "Supplemental Financial Measures" in the accompanying Q3 2026 MD&A for further details concerning certain financial metrics used in this press release including definitions.

Dividend Increase
Propel also announced today that its Board of Directors has approved an increase in the quarterly dividend from C$0.255 to C$0.27 per common share, or from C$1.02 to C$1.08 per common share on an annualized basis. This represents an increase of 6% and the Company's thirteenth consecutive quarterly dividend increase. The Board declared a dividend of C$0.27 per common share, payable on December 3, 2026 to shareholders of record as of the close of business on November 26, 2026. 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:	Wednesday, November 4, 2026
Time:	8:30 a.m. EST
Toll-free North America:	1-888-699-1199
Local Toronto:	1-416-945-7677
Rapid Connect:	Click here
Webcast:	Click here
Replay:	1-289-819-1450 or 1-888-660-6345 (PIN: 63773#)

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 -- together with Propel Bank 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 creating sustainable, profitable growth for Propel. The revolutionary fintech platform has already helped consumers access over 2 million loans and lines of credit and over 3 billion dollars in credit. At Propel, we are here to change the way customers, partners and investors succeed together. Learn more at propelholdings.com.

Non-IFRS Financial Measures and Industry Metrics
This press release makes reference to certain non-IFRS financial measures and industry metrics. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Such measures include "Adjusted Diluted EPS", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Net Income", "Adjusted Net Income Margin", "Adjusted Return on Equity", "Average CLAB", "Cost Per New Customer Funded Origination", "EBITDA", "EBITDA Margin", "Ending CLAB", "Net Charge-Offs as a percentage of Average CLAB" and "Total Originations Funded". This press release also includes references to industry metrics such as "Annualized Revenue Yield", "Return on Equity" and "Total Originations Funded" which are supplementary measures under applicable securities laws.

These non-IFRS financial measures and industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and industry metrics in the evaluation of issuers. The Company's management also uses non-IFRS financial measures and industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management and executive compensation. The key performance indicators used by the Company may be calculated in a manner different than similar key performance indicators used by other similar companies.

Definitions and reconciliations of non-IFRS financial measures to the relevant reported measures can be found in our accompanying MD&A available on SEDAR+. Such reconciliations can also be found in this press release under the heading "Reconciliation of Non-IFRS Financial Measures" below.

Forward-Looking Information
Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to our declared dividend payable on December 3, 2026,  our ability to advance our mission of expanding access to credit for underserved consumers while delivering profitable growth in 2026 and beyond, the continued scaling of LaaS, our ability to balance strong growth with prudent risk management and the growth of LaaS becoming an increasingly meaningful contributor to our revenue and profitability. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of the Company's annual information form dated March 2, 2026 for the year ended December 31, 2025 (the "AIF"). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on SEDAR+ at www.sedarplus.ca.

The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this press release represents our expectations as of the date of this press release (or as the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

Selected Financial Information

	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
(US$ other than percentages)
Revenue	201,465,666	152,067,808	547,142,957	433,958,089
Provision for loan losses and other liabilities	107,566,480	78,996,521	272,323,411	208,863,235
Operating expenses
Acquisition and data	25,669,184	18,301,712	76,023,391	53,025,405
Salaries, wages and benefits	14,568,533	11,736,681	43,151,501	35,464,264
General and administrative	3,932,072	3,233,180	11,358,770	10,066,210
Processing, technology and program servicing	13,140,307	8,191,663	35,351,818	23,692,649
Total operating expenses	57,310,096	41,463,236	165,885,480	122,248,528
Operating income	36,589,090	31,608,051	108,934,066	102,846,326
Other (income) expenses
Interest and fees on credit facilities	9,098,032	8,600,196	26,196,725	25,402,713
Interest expense on lease liabilities	290,912	223,375	835,757	462,848
Depreciation and amortization	2,729,877	2,361,671	8,011,662	6,538,351
Foreign exchange (gain) loss	115,748	(21,299)	(31,702)	280,903
Unrealized (gain) loss on derivative financial instruments	65,788	459,925	686,581	(626,601)
Total other (income) expenses	12,300,357	11,623,868	35,699,023	32,058,214
Income before income tax	24,288,733	19,984,183	73,235,043	70,788,112
Income tax expense (recovery)
Current	10,172,140	6,665,455	27,002,949	20,705,530
Deferred	(4,298,642)	(1,688,082)	(9,054,589)	(3,500,738)
Net income for the period	18,415,235	15,006,810	55,286,683	53,583,320
Earnings per share ($USD):
Basic	0.47	0.38	1.40	1.37
Diluted	0.43	0.36	1.30	1.27
Earnings per share ($CAD)^(1):
Basic	0.65	0.53	1.94	1.92
Diluted	0.61	0.49	1.80	1.77
Return on equity^(2^)	25 %	24 %	26 %	30 %
Dividends:
Dividends	7,239,124	5,568,308	20,564,479	15,110,474
Dividend per share	0.184	0.142	0.522	0.387

Notes:
(1)	Results converted from USD to CAD assuming an exchange rate of USD/CAD $1.3993 and USD/CAD $1.3851 for the three-month and nine-month periods ending September 30, 2026, respectively, and assuming an exchange rate of USD/CAD $1.3773 and USD/CAD $1.3988 for the three-month and nine-month periods ending September 30, 2025, respectively.
(2)	See "Supplemental Financial Measures" in the accompanying Q3 2026 MD&A for further details concerning certain financial metrics used in this press release including definitions.

Reconciliation of Non-IFRS Financial Measures
The following table provides a reconciliation of Propel's net income to EBITDA¹ and Adjusted EBITDA¹:

	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
(US$ other than percentages)
Net Income	18,415,235	15,006,810	55,286,683	53,583,320
Interest and fees on credit facilities	9,098,032	8,600,196	26,196,725	25,402,713
Interest expense on lease liabilities	290,912	223,375	835,757	462,848
Depreciation and amortization	2,729,877	2,361,671	8,011,662	6,538,351
Income Tax Expense (Recovery)	5,873,498	4,977,373	17,948,360	17,204,792
EBITDA^(1)	36,407,554	31,169,425	108,279,187	103,192,024
EBITDA Margin^(1)	18 %	20 %	20 %	24 %
Unrealized loss (gain) on derivative financial instruments	65,788	459,925	686,581	(626,601)
Provision for credit losses on current  status accounts^(2).	2,848,238	(384,820)	6,921,282	2,466,546
Non-cash change in accounting estimate^(2)	--	--	--	1,357,245
Provisions for CSO Guarantee liabilities and  Bank Service Program liabilities	5,453,632	1,018,002	14,589,155	2,326,291
Adjusted EBITDA^(1)	44,775,212	32,262,532	130,476,205	108,715,505
Adjusted EBITDA Margin^(1).	22 %	21 %	24 %	25 %

Notes:
(1)	See "Non-IFRS Financial Measures and Industry Metrics".
(2)	Provision and change in accounting estimate adjustments included for loan losses on good standing current principal (Stage 1 -- Performing) balances (see "Material Accounting Policies and Estimates -- Loans and advances receivable" in the accompanying Q3 2026 MD&A).

The following table provides a reconciliation of Propel's Net Income to Adjusted Net Income¹, Adjusted Return on Equity¹ and Adjusted Net Income margin¹:

	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
(US$ other than percentages)
Net Income	18,415,235	15,006,810	55,286,683	53,583,320
Unrealized loss (gain) on derivative financial instruments, net of taxes^(2^)	48,354	338,045	504,637	(460,552)
Amortization of acquired intangible assets, net of taxes^(2^)	360,787	360,787	1,082,361	1,082,361
Provision for credit losses on current status accounts, net of taxes^(2)(3)	2,093,455	(282,843)	5,087,142	1,812,911
Non-cash change in accounting estimate, net of taxes^(2)(3)	--	--	--	997,575
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities, net of taxes^(2)	4,008,420	748,231	10,723,029	1,709,824
Adjusted Net Income^(1)	24,926,251	16,171,030	72,683,852	58,725,439
Multiplied by number of periods in year	x4	x4	x1.33	x1.33
Divided by average shareholders' equity for the period	291,087,720	255,164,687	279,371,568	239,404,998
Adjusted Return on Equity^(^1)	34 %	25 %	35 %	33 %
Adjusted Net Income Margin^(1)	12 %	11 %	13 %	14 %

Notes:
(1)	See "Non-IFRS Financial Measures and Industry Metrics".
(2)	Each item is adjusted for after-tax impact, at an effective tax rate of 26.5% for the three and nine-months ended September 30, 2026 and comparative 2025 periods.
(3)	Provision and change in accounting estimate adjustments included for loan losses on good standing current principal (Stage 1 -- Performing) balances (see "Material Accounting Policies and Estimates -- Loans and advances receivable" in the accompanying Q3 2026 MD&A).

The following table provides a reconciliation of Propel's Ending CLAB¹ to loans and advances receivable:

	As at September 30,		As at Dec 31
(US$ other than percentages)	2026	2025	2025
Ending Combined Loan and Advance balances^1	690,454,432	557,694,435	589,548,106
Less: Loan and Advance balances owned by third party lenders pursuant to CSO program	--	(5,590,553)	(3,087,349)
Less: Loan and Advance balances owned by a NBFI pursuant to the MoneyKey Bank Service program	(127,188,747)	(68,835,979)	(78,702,887)
Loan and Advance owned by the Company	563,265,685	483,267,903	507,757,870
Less: Allowance for Credit Losses	(162,992,389)	(133,203,516)	(137,659,188)
Add: Fees and interest receivable	91,465,338	65,050,661	67,677,786
Add: Acquisition transaction costs	37,244,016	19,716,562	21,987,814
Loans and advances receivable	528,982,650	434,831,610	459,764,282

Note:
(1)	See "Non-IFRS Financial Measures and Industry Metrics".

SOURCE Propel Holdings Inc.

For further information, please contact: Lindsay Finneran-Gingras, Vice President, Communications, [email protected]; Devon Ghelani, Vice President, Capital Markets and Investor Relations, [email protected]