Propel Holdings (PRL) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with all-time highs in revenue, total originations funded, and ending CLAC/CLAB, driven by robust consumer demand and disciplined risk management across all markets.

• Adjusted net income rose 22% year-over-year to CAD 19.2 million; IFRS net income grew 36% to CAD 15.1 million.

• Board approved an 8% dividend increase to CAD 0.78 per share annually, marking the eighth consecutive raise since 2023.

• Surpassed CAD 50 million in monthly revenue for the first time in June 2025.

• Maintained robust credit performance with the lowest Q2 provision for loan losses as a percentage of revenue since going public.

Financial highlights

• Q2 revenue reached CAD 143 million, up 34% year-over-year; total originations funded were CAD 194 million, up 35%.

• Adjusted EBITDA rose 16% to CAD 35.2 million; diluted EPS grew 20% to CAD 0.36.

• Ending CLAC/CLAB grew 33% year-over-year to CAD 520 million.

• Adjusted net income margin decreased to 13% from 15% last year; annualized revenue yield was 114%, slightly down from 115%.

• Annualized adjusted ROE for Q2 was 32%, down from 54% last year, mainly due to a CAD 115 million equity offering.

Outlook and guidance

• Confident in delivering record results in H2 2025, with seasonality and new business development expected to drive higher growth.

• Guidance range maintained, with management aiming for the high end due to strong first-half performance and robust demand.

• Lending-as-a-service revenue expected to more than double into 2026, with significant new initiatives to be announced.

• QuidMarket integration ahead of schedule, with growth expected to accelerate in H2 2025 and into 2026.