Earnings release
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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 EBITDA 1 : increased by 39% to $44.8 million, representing a record Net Income: increased by 23% to $18.4 million Adjusted Net Income 1 : increased by 54% to $24.9 million, representing a record Diluted EPS 2 : 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 Equity 3 : achieved 25% on an annualized basis Adjusted Return on Equity 1 : 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 Funded 1 , Ending CLAB 1 , Adjusted EBITDA 1 and Adjusted Net Income 1 , while generating an Adjusted Return on Equity 1 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
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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 Funded 1 and Ending CLAB 1 Propel and its Bank Partners delivered record quarterly Total Originations Funded 1 , supported by strong demand from new, returning and existing customers Total Originations Funded 1 increased by 27% year-over-year to a quarterly record of $260.7 million, driving Ending CLAB 1 to a record of $690.5 million, up 24% from Q3 2025 New customer Total Originations Funded 1 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 Funded 1 , 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 Yield 1 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 CLAB 1 and an improved Annualized Revenue Yield 1 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 CLAB 1 remained at approximately 12%, consistent with the prior year, reflecting disciplined underwriting and credit performance consistent with seasonal expectations while achieving record Total Originations Funded 1 Net income and record Adjusted Net Income 1 reflect disciplined execution and operating efficiency Net income increased by 23% to $18.4 million, while Adjusted Net Income 1 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 Origination 1 declined by 23% since Q1 2026, reflecting improving acquisition efficiencies as the Company's distribution
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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-Equity 3 ratio of 1.2x Despite significant portfolio growth, the Debt-to-Equity 3 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
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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",
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"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 $1.3988 for the three-month and nine-month periods ending September 30, 2025, respectively. (2) See "Supplemental Financial Measures" in the accompanying Q3 2026 MD&A for further details concerning certain financial metrics used in this press release including definitions.
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Reconciliation of Non-IFRS Financial Measures The following table provides a reconciliation of Propel's net income to EBITDA 1 and Adjusted EBITDA 1 : Three months ended September 30, Nine months ended September 30, 2026 2025 2026 2025 (US$ 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 Income 1 , Adjusted Return on Equity 1 and Adjusted Net Income margin 1 : 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 CLAB 1 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
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Note: (1) See "Non-IFRS Financial Measures and Industry Metrics". SOURCE Propel Holdings Inc. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2026/03/c0101.html %SEDAR: 00053240E For further information: For further information, please contact: Lindsay Finneran-Gingras, Vice President, Communications, Media@propelholdings.com; Devon Ghelani, Vice President, Capital Markets and Investor Relations, IR@propelholdings.com CO: Propel Holdings Inc. CNW 16:24e 03-NOV-26