Propel Holdings (PRL) Canaccord Genuity’s 45th Annual Growth Conference summary

Credit cycle and underwriting discipline

• AI-powered underwriting processes over 80,000 applications daily, delivering rapid decisions and strong credit quality.

• Delinquencies among higher-income consumers are rising, leading banks to tighten underwriting and increase rejection rates to multi-year highs.

• Rejection rates for sub-680 FICO scores have surged, pushing more consumers into alternative lending segments and boosting demand.

• Conservative underwriting and a large margin of safety are maintained to ensure sustainable growth and avoid risk from rapid expansion.

• Organic top-line growth of 40% and bottom-line growth over 50% achieved through disciplined underwriting and aggressive business development.

Customer lifecycle and product graduation

• Focus on retaining and graduating customers to better products with lower APRs and higher loan amounts as their credit improves.

• Returning customers have lower default rates and reduced marketing costs, driving profitability.

• Continuous product upgrades aim to keep customers throughout their credit journey, with some eventually graduating out.

• Mission-driven approach seeks to provide underserved consumers with superior alternatives to payday and pawn loans.

UK market expansion and QuidMarket acquisition

• UK market is highly fragmented with 20 million underserved consumers and significant growth potential.

• QuidMarket acquisition expected to deliver over 50% growth in its first year, with potential for 100% growth by 2026.

• Scaling is driven by infrastructure investment, automation, and AI implementation to enhance efficiency and operating leverage.

• No further acquisitions needed in the UK; focus remains on organic growth and cultural alignment.