Propel Holdings (PRL) Q4 2025 earnings summary

Executive summary

• Achieved record originations funded of $774 million in 2025, up 32% year-over-year, and record revenue of $590 million, up 31% from 2024, with record Total Originations Funded and Ending CLAB for both periods.

• Net income rose 28% to $59.5 million for FY2025, though Q4 net income decreased 49% year-over-year to $5.9 million.

• Adjusted EBITDA for FY2025 was $130.3 million, up 7% year-over-year, while Q4 adjusted EBITDA fell 32% to $21.6 million.

• Q4 profitability was impacted by higher credit costs, upfront provisioning, and increased acquisition spend due to late-quarter origination acceleration.

• Strategic initiatives included the launch of Propel Bank and a partnership with Column to expand product offerings and geographic reach.

Financial highlights

• Q4 2025 revenue was $155.8 million, up 21% year-over-year; FY2025 revenue was $589.8 million, up 31% year-over-year.

• Q4 2025 originations funded reached $221 million, up 26% year-over-year; ending CLAB at $590 million, up 23%.

• Q4 2025 adjusted net income was $8 million ($0.19 per diluted share); full-year adjusted net income was $66.7 million.

• Provision for loan losses was 56% of revenue in Q4 2025; net charge-offs were 14% of average CLAB.

• Annualized adjusted ROE was 12% in Q4 and 27% for the full year.

Outlook and guidance

• 2026 targets: ending CLAB growth of 18%-24%, revenue of $725-$775 million, adjusted EBITDA of $152.5-$177.5 million.

• Net income target range of $70-$90 million and adjusted net income of $80-$100 million, representing 34% and 35% growth over 2025 midpoints.

• Targeting ROE of 24%+ and adjusted ROE of 28%+.

• Expect Lending-as-a-Service to deliver triple-digit growth and approach 10% of total revenue by Q4 2026.

• Guidance based on scaling core businesses, UK growth, new programs (Column, Propel Bank), and AI investments.