Propel Reports Third Quarter Results and Announces Dividend Increase

TORONTO, Nov. 3, 2026 /CNW/ -- Propel Holdings Inc. ("Propel" or the "Company") (TSX: PRL), the fintech facilitating access to credit for underserved consumers, today reported financial results for the three months ended September 30, 2026 ("Q3 2026"). Propel also announced that its Board of Directors has approved a further increase to its dividend from C$1.02 to C$1.08 per share on an annualized basis, effective Q4 2026. This represents an increase of 6% and the Company's thirteenth consecutive quarterly dividend increase. All amounts are expressed in U.S. dollars unless otherwise stated.

Financial and Operational Highlights for Q3 2026 (Shown in U.S. Dollars unless otherwise stated)
Comparable metrics relative to Q3 2025, unless otherwise stated

• Revenue: increased by 32% to $201.5 million, representing a record

• Adjusted EBITDA¹: increased by 39% to $44.8 million, representing a record

• Net Income: increased by 23% to $18.4 million

• Adjusted Net Income¹: increased by 54% to $24.9 million, representing a record

• Diluted EPS²: increased by 22% to $0.43 (C$0.61)

• Adjusted Diluted EPS^1,2: increased by 53% to $0.59 (C$0.82), representing a record

• Return on Equity³: achieved 25% on an annualized basis

• Adjusted Return on Equity¹: achieved 34% on an annualized basis

• Loans and Advances Receivable: increased by 22% to $529.0 million, a record ending balance

• Ending Combined Loan and Advance Balances ("CLAB")¹: increased by 24% to $690.5 million, a record ending balance

• Dividend: paid a Q3 2026 dividend of C$0.255 per common share on September 3, 2026, representing a 6% increase to our Q2 2026 dividend

Management Commentary

"Propel delivered another strong quarter, with record revenue, Total Originations Funded¹, Ending CLAB¹, Adjusted EBITDA¹ and Adjusted Net Income¹, while generating an Adjusted Return on Equity¹ of 34%. For the first time in our history, quarterly revenue surpassed $200 million, marking another significant milestone in our growth.

Our results reflect the strength and resilience of our business model against an evolving economic environment. Consumer demand remains strong, while credit performance is consistent with our seasonal expectations. Importantly, we achieved this growth while maintaining a disciplined approach to underwriting with our Bank Partners.

Our expanding geographic presence and diversified marketing channels are enabling us to reach more consumers than ever before. New customer originations increased 55% year-over-year, including Lending as a Service. At the same time, our investments in AI, automation and operating infrastructure are driving greater efficiencies and enabling continued profitable growth.

These results demonstrate the scalability of our platform, the strength of our execution and the significant opportunity that remains ahead of us. Fifteen years into our journey, and five years since going public, we remain as ambitious as ever to expand access to credit for underserved consumers while delivering profitable growth in 2026 and beyond," said Clive Kinross, Chief Executive Officer.

Discussion of Financial Results and Business Strategy

• Platform expansion and strong demand drove record Total Originations Funded¹ and Ending CLAB¹
  • Propel and its Bank Partners delivered record quarterly Total Originations Funded¹, supported by strong demand from new, returning and existing customers
    • Total Originations Funded¹ increased by 27% year-over-year to a quarterly record of $260.7 million, driving Ending CLAB¹ to a record of $690.5 million, up 24% from Q3 2025
    • New customer Total Originations Funded¹ grew by 37% year-over-year and by 55% when including Lending-as-a-Service, reflecting continued success in expanding the Company's customer base
    • New customers represented 47% of Total Originations Funded¹, compared to 44% in Q3 2025, marking the highest proportion since Q4 2024. This reflects strong demand and the Company's expanding geographic footprint and distribution channels

• • Annualized Revenue Yield¹ increased to 121% in Q3 2026 from 113% in Q3 2025, primarily reflecting the growth in new customer originations, the continued scaling of Lending-as-a-Service ("LaaS"), and a greater contribution from higher yielding segments
  • The combination of higher Average CLAB¹ and an improved Annualized Revenue Yield¹ contributed to record quarterly revenue of $201.5 million, an increase of 32% compared to Q3 2025, marking the first time quarterly revenue surpassed $200 million

• Disciplined underwriting and a resilient consumer supported credit performance consistent with seasonal expectations
  • Provision for loan losses and other liabilities was 53% of revenue, compared to 52% in Q3 2025, driven mainly by a higher proportion of new customer originations. Net Charge-Offs as a percentage of Average CLAB¹ remained at approximately 12%, consistent with the prior year, reflecting disciplined underwriting and credit performance consistent with seasonal expectations while achieving record Total Originations Funded¹

• Net income and record Adjusted Net Income¹ reflect disciplined execution and operating efficiency
  • Net income increased by 23% to $18.4 million, while Adjusted Net Income¹ increased by 54% to a record $24.9 million in Q3 2026
  • Strong profitability was supported by record revenue and growing efficiencies from investments in technology, AI, automation and operating infrastructure, which are helping support the Company's ability to scale
    • Acquisition and data expenses decreased sequentially despite record originations, while the Cost Per New Customer Funded Origination¹ declined by 23% since Q1 2026, reflecting improving acquisition efficiencies as the Company's distribution channels continue to scale

• Continued growth across Propel's expanding platform
  • LaaS delivered record revenue of $13.5 million in Q3 2026, an increase of 170% year-over-year
    • LaaS growth was enabled by geographic and product expansion and committed long-term capital partners. Through a capital-light model this program generates fee-based revenue without corresponding balance-sheet funding requirements

• • Propel UK delivered record revenue of $22.0 million, an increase of 69% year-over-year, reflecting disciplined underwriting, expanded marketing channels and strong consumer demand
    • Approaching the second anniversary of the QuidMarket acquisition, the business continued to deliver strong growth, supported by Propel's capital, expertise and operational capabilities, reinforcing the opportunity in the UK market

• • Propel Bank contributed to Propel's growth through its U.S. servicing activities, while continuing to expand its capabilities and create additional opportunities for long-term growth

• Strong financial position supports continued growth, increasing dividends and disciplined capital management
  • The Company maintained a strong financial position at quarter end, with approximately $71 million of undrawn credit commitment capacity and a Debt-to-Equity³ ratio of 1.2x
    • Despite significant portfolio growth, the Debt-to-Equity³ ratio improved from 1.3x at the end of Q4 2025, reflecting strong internal capital generation and disciplined balance sheet management

• • The Company's cost of debt decreased to 10.2% in Q3 2026 from 11.0% in Q3 2025, primarily reflecting lower interest rates
  • The Company's strong financial position and continued earnings generation supported a 6% increase in the quarterly dividend to C$0.27 per common share beginning in Q4 2026, representing the thirteenth consecutive quarterly dividend increase

Dividend Increase
Propel also announced today that its Board of Directors has approved an increase in the quarterly dividend from C$0.255 to C$0.27 per common share, or from C$1.02 to C$1.08 per common share on an annualized basis. This represents an increase of 6% and the Company's thirteenth consecutive quarterly dividend increase. The Board declared a dividend of C$0.27 per common share, payable on December 3, 2026 to shareholders of record as of the close of business on November 26, 2026. The Company has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada).

Conference Call Details
The Company will be hosting a conference call and webcast tomorrow morning with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.

Conference call details are as follows:

About Propel
Propel Holdings (TSX: PRL) the fintech building a new world of financial opportunity for consumers, partners, and investors. Propel's operating brands — Fora Credit, CreditFresh, MoneyKey and QuidMarket — together with Propel Bank facilitate access to credit for consumers underserved by traditional financial institutions. Through its AI-powered platform, Propel evaluates customers in a more comprehensive way than traditional credit scores can. The result is better products and an expanded credit market for consumers while creating sustainable, profitable growth for Propel. The revolutionary fintech platform has already helped consumers access over 2 million loans and lines of credit and over 3 billion dollars in credit. At Propel, we are here to change the way customers, partners and investors succeed together. Learn more at propelholdings.com.

Non-IFRS Financial Measures and Industry Metrics
This press release makes reference to certain non-IFRS financial measures and industry metrics. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Such measures include "Adjusted Diluted EPS", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Net Income", "Adjusted Net Income Margin", "Adjusted Return on Equity", "Average CLAB", "Cost Per New Customer Funded Origination", "EBITDA", "EBITDA Margin", "Ending CLAB", "Net Charge-Offs as a percentage of Average CLAB" and "Total Originations Funded". This press release also includes references to industry metrics such as "Annualized Revenue Yield", "Return on Equity" and "Total Originations Funded" which are supplementary measures under applicable securities laws.

These non-IFRS financial measures and industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and industry metrics in the evaluation of issuers. The Company's management also uses non-IFRS financial measures and industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management and executive compensation. The key performance indicators used by the Company may be calculated in a manner different than similar key performance indicators used by other similar companies.

Definitions and reconciliations of non-IFRS financial measures to the relevant reported measures can be found in our accompanying MD&A available on SEDAR+. Such reconciliations can also be found in this press release under the heading "Reconciliation of Non-IFRS Financial Measures" below.

Forward-Looking Information
Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to our declared dividend payable on December 3, 2026,  our ability to advance our mission of expanding access to credit for underserved consumers while delivering profitable growth in 2026 and beyond, the continued scaling of LaaS, our ability to balance strong growth with prudent risk management and the growth of LaaS becoming an increasingly meaningful contributor to our revenue and profitability. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of the Company's annual information form dated March 2, 2026 for the year ended December 31, 2025 (the "AIF"). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on SEDAR+ at www.sedarplus.ca.

The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this press release represents our expectations as of the date of this press release (or as the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

Selected Financial Information

Reconciliation of Non-IFRS Financial Measures
The following table provides a reconciliation of Propel's net income to EBITDA¹ and Adjusted EBITDA¹:

The following table provides a reconciliation of Propel's Net Income to Adjusted Net Income¹, Adjusted Return on Equity¹ and Adjusted Net Income margin¹:

The following table provides a reconciliation of Propel's Ending CLAB¹ to loans and advances receivable:

SOURCE Propel Holdings Inc.

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