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 EBITDA^1,5: 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 Income^1,5: 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 EPS^1,2,5: 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 Equity^1,5: 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 Income^1,5 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 Margin^1,5 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 Income^1,5 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 creating sustainable, profitable growth for Propel. The revolutionary fintech platform has already helped consumers access over one million loans and lines of credit and over two 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 Net Income", "Adjusted Net Income Margin", "Adjusted Return on Equity", "EBITDA", "Ending 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 dividend scheduled for September 4, 2025, our ability to deliver strong results in the second half of 2025, expand our products, enter new markets, and enhance our partnerships, the strong demand from consumers we expect to see throughout 2025, our ability to introduce the Propel brand to a growing number of consumers and grow our business, our ability to accelerate QuidMarket's growth even faster than originally expected in the second half of 2025 and into 2026. 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 12, 2025 for the year ended December 31, 2024 (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 June 30,		Six-months ended June 30,
	2025	2024	2025	2024
(US$ other than percentages)
Revenue	142,952,714	106,750,700	281,890,281	203,254,306
Provision for loan losses and other liabilities	71,188,088	53,267,856	129,866,714	95,629,483
Operating expenses
Acquisition and data^(1)	18,597,770	12,179,722	34,723,693	23,222,502
Salaries, wages and benefits	11,948,950	9,103,189	23,727,583	18,499,911
General and administrative	3,623,866	2,829,590	6,833,030	5,305,007
Processing, technology and program servicing	8,289,373	4,918,836	15,500,986	9,006,913
Total operating expenses	42,459,959	29,031,337	80,785,292	56,034,333
Operating income	29,304,667	24,451,507	71,238,275	51,590,490
Other (income) expenses
Interest and fees on credit facilities	8,153,863	7,563,988	16,802,517	14,668,815
Interest expense on lease liabilities	173,812	66,153	239,473	138,674
Depreciation and amortization	2,191,431	1,250,019	4,176,680	2,440,118
Foreign exchange (gain) loss	(222,206)	153,514	302,202	227,725
Unrealized (gain) loss on derivative financial instruments	(600,128)	84,031	(1,086,526)	620,340
Total other (income) expenses	9,696,772	9,117,705	20,434,346	18,095,672
Income before income tax	19,607,895	15,333,802	50,803,929	33,494,818
Income tax expense (recovery)
Current	6,549,421	7,508,225	14,040,075	13,757,700
Deferred	(2,017,505)	(3,298,002)	(1,812,656)	(4,508,314)
Net income for the period	15,075,979	11,123,579	38,576,510	24,245,432
Earnings per share ($USD):
Basic	0.39	0.32	0.99	0.71
Diluted	0.36	0.30	0.91	0.65
Earnings per share ($CAD)^(2):
Basic	0.54	0.44	1.40	0.96
Diluted	0.49	0.41	1.29	0.89
Return on equity^(3^)	25 %	38 %	33 %	44 %
Dividends:
Dividends	5,100,068	3,269,355	9,542,166	6,300,162
Dividend per share	0.131	0.095	0.245	0.183

Notes:
(1)	Comparative figures have been updated to conform with current presentation.
(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, respectively, and assuming an exchange rate of USD/CAD $1.3683 and USD/CAD $1.3586 for the three-month and six-month periods ending June 30, 2024, respectively.
(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.

Reconciliation of Non-IFRS Financial Measures

The following table provides a reconciliation of Propel's net income to EBITDA¹ and Adjusted EBITDA^1,3:

	Three months ended June 30,		Six-months ended June 30,
	2025	2024	2025	2024
(US$ other than percentages)
Net Income	15,075,979	11,123,579	38,576,510	24,245,432
Interest and fees on credit facilities	8,153,863	7,563,988	16,802,517	14,668,815
Interest expense on lease liabilities	173,812	66,153	239,473	138,674
Depreciation and amortization	2,191,431	1,250,019	4,176,680	2,440,118
Income Tax Expense (Recovery)	4,531,916	4,210,223	12,227,419	9,249,386
EBITDA^(1)	30,127,001	24,213,962	72,022,599	50,742,425
EBITDA^(1) Margin	21 %	23 %	26 %	25 %
Unrealized loss (gain) on derivative financial instruments	(600,128)	84,031	(1,086,526)	620,340
Provision for credit losses on current status accounts^(2)	2,371,117	4,946,261	2,851,366	6,488,940
Non-cash change in accounting estimate ^(2)	1,357,245	—	1,357,245	—
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities	1,980,892	1,204,440	1,308,289	2,659,264
Adjusted EBITDA^(1)(3)	35,236,127	30,448,694	76,452,973	60,510,969
Adjusted EBITDA^(1)(3) Margin	25 %	29 %	27 %	30 %

Notes:
(1)	See "Non-IFRS Financial Measures and Industry Metrics".
(2)	Provision and change in accounting estimate adjustments included for (i) loan losses on good standing current principal (Stage 1 — Performing) balances (see "Material Accounting Policies and Estimates — Loans and advances receivable" in the accompanying Q2 2025 MD&A).
(3)	Comparative figures have been updated to conform with current presentation.

The following table provides a reconciliation of Propel's Net Income to Adjusted Net Income^1,3, Adjusted Return on Equity^1,3 and Adjusted Net Income margin^1,3:

	Three months ended June 30,		Six-months ended June 30,
	2025	2024	2025	2024
(US$ other than percentages)
Net Income	15,075,979	11,123,579	38,576,510	24,245,432
Unrealized loss (gain) on derivative financial instruments, net of taxes^(2^)	(441,094)	61,763	(798,597)	455,950
Amortization of acquired intangible assets, net of taxes^(2^)	360,787	—	721,574	—
Provision for credit losses on current status accounts, net of taxes^(2)(4)	1,742,771	3,635,502	2,095,754	4,769,371
Non-cash change in accounting estimate, net of taxes^(2)(4)	997,575	—	997,575	—
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities, net of taxes^(2)	1,455,956	885,263	961,593	1,954,559
Adjusted Net Income^(1)(3)	19,191,974	15,706,107	42,554,409	31,425,312
Multiplied by number of periods in year	x4	x4	x2	x2
Divided by average shareholders' equity for the period	241,536,350	116,095,875	231,525,154	111,379,419
Adjusted Return on Equity^(^1)(3)	32 %	54 %	37 %	56 %
Adjusted Net Income Margin^(1)(3)	13 %	15 %	15 %	15 %

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 six-months ended June 30, 2025 and comparative 2024 periods.
(3)	Comparative figures have been updated to conform with current presentation.
(4)	Provision and change in accounting estimate adjustments included for (i) loan losses on good standing current principal (Stage 1 — Performing) balances (see "Material Accounting Policies and Estimates — Loans and advances receivable" in the accompanying Q2 2025 MD&A).

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

	As at June 30,		As at Dec 31
(US$ other than percentages)	2025	2024	2024
Ending Combined Loan and Advance balances^1	520,403,519	392,151,276	480,602,408
Less: Loan and Advance balances owned by third party lenders pursuant to CSO program	(5,766,753)	(4,448,928)	(5,892,783)
Less: Loan and Advance balances owned by a NBFI pursuant to the MoneyKey Bank Service program	(64,299,669)	(46,127,970)	(56,360,814)
Loan and Advance owned by the Company	450,337,097	341,574,378	418,348,811
Less: Allowance for Credit Losses	(120,635,817)	(89,578,324)	(111,227,713)
Add: Fees and interest receivable	59,413,526	43,501,224	52,592,513
Add: Acquisition transaction costs	18,219,811	9,673,916	15,451,381
Loans and advances receivable	407,334,617	305,171,194	375,164,992

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]