Earnings release
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Pineapple Financial Reports Fiscal Q1 2026 Financial Results and Introduces FY 2026 Outlook and DAT Update Reports Q1 2026 Gross Billings of $4.1 Million and Revenue of $0.7 million Pineapple anticipates FY 2026 Gross Billings of $17.5-20.8 million and Revenue of $7.7-9.5 million Digital Asset Treasury ("DAT") valued at ~$51.2 million, comprised of ~6.6 million INJ tokens and ~$16.4M USD / stablecoins Toronto, Ontario--(Newsfile Corp. - January 20, 2026) -Pineapple Financial Inc.(NYSE American: PAPL) ("Pineapple" or the "Company"), a leading fintech platform, today announced audited financial results for the three month period ended November 30, 2025 ("Q1 2026"). "Pineapple has reached a meaningful inflection point as we transition from building infrastructure to executing against a fully integrated operating model," said Shubha Dasgupta, CEO of Pineapple Financial. "With a national mortgage platform generating approximately $3 billion in annual originations, our focus is now squarely on operating discipline, earnings quality, and capital efficiency, with clear line-of-sight into unit economics and margin expansion within the core mortgage platform." Mr. Dasgupta continued, "By strengthening our mortgage platform, tokenizing our data for future monetization, and deploying capital through a disciplined, governance-led DAT, we are building a durable and capital-efficient business. These initiatives are designed to work together as a single operating platform, generating higher-quality margins, recurring revenue streams, and improved earnings durability. We are confident that this positions Pineapple to reduce volatility, strengthen resilience, and deliver long-term value for shareholders in 2026 and beyond." Strategic and Corporate Developments Following the completion of Pineapple's previously announced private placement to establish its INJ DAT, the Company has successfully transitioned from an infrastructure build-out phase to an execution-focused operating phase with defined performance targets across productivity, margin quality, and cash efficiency. After a decade of building a national Canadian mortgage
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origination platform with coast-to-coast licensing, over 500 brokers, and approximately $3 billion CAD in annual originations, the Company has shifted its focus toward operating discipline, earnings quality, and capital efficiency. This transition reflects improved visibility across the business and a renewed emphasis on delivering sustainable performance as Pineapple enters its next phase of growth. As part of this reset, the Company has reaffirmed the core mortgage platform as the foundation of its operating platform and prioritized initiatives to improve agent productivity, utilization, and unit economics. These efforts include targeted retention programs for top producers, tighter pricing discipline, operational service-level agreements to reduce cycle times, and a comprehensive review of operating expenditures. Collectively, these actions are intended to lower cost per funded loan, improve margin quality, and drive operating leverage, positioning the core business for more predictable and durable cash flow generation. Pineapple recently launched its mortgage tokenization platform, a major advancement in its on- chain financial infrastructure strategy. Through the platform, Pineapple is converting real-world mortgage records, historically stored across fragmented documents and systems, into secure, programmable digital assets on the INJ blockchain. This represents one of the earliest instances globally of a publicly traded mortgage company tokenizing its loan book on a public blockchain and integrating on-chain data into day-to-day operations. To date, nearly a billion dollars in originated mortgages have been brought on-chain, with over 1,600 mortgage records already tokenized. The Company expects to progressively migrate its full historical portfolio of more than 29,000 funded mortgages, totaling approximately $13.7 billion CAD, with new originations added on an ongoing basis. Each tokenized mortgage record contains hundreds of structured data attributes that are designed to streamline operations, enhance risk analytics, and support the development of new financial products. The tokenization initiative also supports the rollout of two commercial offerings: a Mortgage Data Marketplace providing compliant, permissioned access to anonymized loan-level data, and Pineapple Prime, a forthcoming platform intended to offer on-chain access to mortgage-backed yield opportunities. Together, these products are designed to introduce high-margin, recurring revenue streams over time, layered on top of Pineapple's core mortgage business. Additional information and real-time platform metrics are available at pineappledigitalassets.com. Pineapple believes this integrated approach positions the Company to reduce volatility, strengthen financial resilience, and build a scalable platform with compounding economics as it moves into 2026 and beyond. FY 2026 Outlook Based on current operating visibility within its core mortgage platform and early progress across its tokenization and digital asset initiatives, Pineapple is introducing its initial outlook for fiscal year 2026. The Company anticipates full year gross billings of approximately $17.5 million to $20.8 million and revenue of approximately $7.9 million to $9.5 million. In addition, for the twelve-month period ending December 2026, Pineapple expects gross billings and revenue to exceed $25.6 million and $12.5 million, respectively. Management expects to generate positive income from operating activities in fiscal year 2026, driven by improved unit economics, disciplined cost management, and a reduction in non-recurring expenses. The Company expects continued expansion and quality improvement across its national agent network. During fiscal 2026, Pineapple anticipates gross agents on its platform to expand to between 700-1000, supported by targeted recruitment of productive brokers, enhanced onboarding processes, and improved retention of top-performing agents. Management expects this growth to be accompanied by higher average productivity per agent and stronger retention dynamics, supporting operating leverage and more predictable gross billings generation.
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Pineapple also projects continued improvement in unit economics, supported by lower cost per funded loan, tighter pricing discipline, and improved utilization of centralized operating infrastructure as the platform scales. With respect to its tokenization platform, fiscal 2026 is expected to represent a transition year from infrastructure deployment to early-stage commercialization, with initial customer engagement and monetization pilots intended to inform revenue opportunities in subsequent periods. The Canadian mortgage market remains fundamentally resilient, supported by its unique short- term renewal structure and the essential role housing plays in household balance sheets. With typical mortgage terms ranging from one to five years, the market benefits from a recurring cycle of renewals and refinancings that provides ongoing activity independent of new home purchases. In the near term, the market is entering a significant renewal period, with more than 1.1 million Canadian households expected to renew their mortgages in 2026. This dynamic creates consistent resurfacing opportunities for mortgage providers, even amid affordability pressures. Longer-term demand continues to be supported by population growth, multigenerational purchasing trends, and constrained housing supply. Pineapple believes these structural characteristics underpin market stability and favor technology-enabled platforms capable of executing with discipline and efficiency. Fiscal Q1 2026 Financial Highlights As of the market close on January 16, 2026, the Company's Digital Asset Treasury ("DAT") was valued at approximately $51.2 million, comprised of approximately 6.61 million Injective ("INJ") tokens and approximately $16.4 million of cash and stablecoins designated for execution of the Company's DAT strategy. The valuation of INJ was based on an observable market price of $5.26 per token. Based on the foregoing, Pineapple's estimated modified net asset value ("mNAV") was approximately 0.73x as of the market close on January 16, 2026. The Company's mNAV is based on the Company's outstanding shares and is calculated as i) enterprise value adjusted to exclude cash designated for the DAT divided by ii) the market value of INJ holdings and cash available for execution of the DAT strategy. Gross Billings were $4.1 million, compared to $4.4 million in Q1 2025 Gross Billings provides a comprehensive view of the total fees earned on the mortgage transactions the Company facilitates and includes commissions and referral fees paid to mortgage agents and sub-brokers. Revenue was $0.7 million, compared to $0.8 million in Q1 2025. Total Expenses were $7.3 million, compared to $1.5 million in Q1 2025. Q1 2026 Total Expenses included a $6.1 million, non-cash change in fair value related to the Company's Digital Asset Treasury ("DAT"). Loss from Operations was $6.6 million compared to $0.7 million, in Q1 2025. Net Cash Used in Operations improved to $ 0.5 million, from $ 0.7 million in Q1 2025. Cash on Hand was $1.5 million as of November 30, 2025, compared to $ 2.3 million as at November 30, 2024. About Pineapple Financial Inc. Pineapple Financial Inc. is an award-winning fintech and leading Canadian mortgage brokerage network, focusing on both the long-term success of agents and brokers as well as the overall experience of homeowners. With hundreds of brokers within the network, Pineapple creates cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their dream of owning a home. Pineapple is active within the community and is proud to sponsor charities across Canada to improve the lives of fellow Canadians.
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Safe Harbor Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. They are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and economic needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, fluctuations in the market price of INJ, including risks related to volatility in the price of INJ, the timing and execution of Digital Asset Treasury capital deployment, the treatment of designated cash balances, and the assumptions underlying non-GAAP metrics such as mNAV, and any associated impairment charges that we may incur as a result of a decrease in the market price of INJ below the value at which INJ is carried on our balance sheet; changes in the accounting treatment relating to our INJ holdings; the Company's financial condition, customer acceptance of our INJ treasury strategy, and other factors discussed in the "Risk Factors" section of the registration statements, and periodic reports filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. The Company cautions investors that actual results may differ materially from the anticipated results. It encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review atwww.sec.gov. Media Contact: KCSA Strategic Communications Kristin Cwalinski pineapple@kcsa.com Investor Relations: KCSA Strategic Communications Jack Perkins pineapple@kcsa.com Follow us on social media: Instagram:@pineapplemortgage@empoweredbypineapple Facebook:Pineapple Mortgage LinkedIn:Pineapple Mortgage X (Formerly Twitter):@PAPLpineapple Share this post