Propel Holdings (PRL) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 results with all-time highs in revenue, adjusted EBITDA, net income, adjusted net income, diluted EPS, and adjusted diluted EPS.

• Net income grew 79% to $23.5 million, and adjusted net income rose 49% to $23.4 million year-over-year.

• Announced an annualized dividend increase to CAD 0.72 per share, marking the eighth increase since early 2023.

• Consumer demand for credit remains robust, with unique applications processed up 60% from a year ago, supported by AI-powered technology and UK expansion.

• Integration of QuidMarket in the UK is ahead of schedule, delivering record revenue and strong credit performance.

Financial highlights

• Revenue for Q1 2025 was $138.9 million, a 44% increase from Q1 2024.

• Adjusted EBITDA rose 37% to $41.2 million.

• Ending C-LAP (consumer loan and advance portfolio) reached a record $483 million, up 38% year-over-year.

• Provision for loan losses as a percentage of revenue decreased to 42% from 44% year-over-year.

• Diluted EPS increased to $0.56 from $0.35, and adjusted diluted EPS to $0.55 from $0.42 year-over-year.

Outlook and guidance

• Expect continued strong credit performance and elevated demand into Q2 and the remainder of 2025.

• Revenue yield guidance reaffirmed at 110-115% for the year.

• Allowance rate expected to remain in the 20%-22% range for the rest of the year.

• Ongoing expansion of lending-as-a-service and new partnerships anticipated to drive further growth.

• QuidMarket integration in the UK is on track, with plans to accelerate growth in that market.