Propel Reports Results for Q4 and Fiscal Year 2025

TORONTO, March 2, 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 December 31, 2025 (“Q4 2025”) and fiscal year ended December 31, 2025. All amounts are expressed in U.S. dollars unless otherwise stated.

Financial and Operational Highlights for Q4 2025 and Fiscal Year 2025 (Shown in U.S. Dollars unless otherwise stated)

Comparable metrics relative to Q4 2024 and fiscal year 2024, respectively

• Revenue: increased by 21% to $155.8 million in Q4 2025, and increased by 31% to $589.8 million for fiscal 2025, representing record performance for both periods
• Adjusted EBITDA¹: decreased by 32% to $21.6 million in Q4 2025, and increased by 7% to $130.3 million for fiscal 2025, representing record performance for a twelve-month fiscal period
• Net Income: decreased by 49% to $5.9 million in Q4 2025, and increased by 28% to $59.5 million for fiscal 2025, representing record performance for a twelve-month fiscal period
• Adjusted Net Income¹: decreased by 53% to $8.0 million in Q4 2025, and increased by 7% to $66.7 million for fiscal 2025, representing record performance for a twelve-month fiscal period
• Diluted EPS²: decreased by 51% to $0.14 (C$0.20) in Q4 2025, and increased by 15% to $1.41 (C$1.97) for fiscal 2025, representing record performance for a twelve-month fiscal period
• Adjusted Diluted EPS^1,2: decreased by 55% to $0.19 (C$0.26) in Q4 2025, and decreased by 4% to $1.58 (C$2.21) for fiscal 2025
• Return on Equity³: achieved 9% in Q4 2025 on an annualized basis compared to 27% in Q4 2024, and achieved 24% for fiscal 2025 compared to 36% for fiscal 2024
• Adjusted Return on Equity¹: achieved 12% in Q4 2025 on an annualized basis compared to 40% in Q4 2024, and achieved 27% for fiscal 2025 compared to 48% for fiscal 2024
• Loans and Advances Receivable: increased by 23% in Q4 2025 to $459.8 million, a record ending balance
• Ending Combined Loan and Advance Balances (“CLAB”)¹: increased by 23% in Q4 2025 to $589.5 million, a record ending balance
• Dividend: paid a Q4 2025 dividend of C$0.21 per common share on December 4, 2025, representing an 8% increase to our Q3 2025 dividend

Operating and Financial Targets

The Company introduced its 2026 operating and financial targets to reflect the improved credit trajectory exiting Q4 2025, record ending balances, and strategic initiatives launching in Q1 2026 (see “2026 Operating and Financial Targets” later in this press release for further information).

• Ending CLAB¹ Year-over-Year Growth: 18% – 24%
• Revenue: $725 – $775 million
• Adjusted EBITDA¹: $152.5 – $177.5 million
• Net Income: $70 – $90 million
• Adjusted Net Income¹: $80 – $100 million
• Return on Equity³: 24%+
• Adjusted Return on Equity¹: 28%+

Management Commentary

“We delivered a strong full year in 2025, achieving record revenue, Total Originations Funded¹ and Ending CLAB¹, and ended the fourth quarter with record quarterly results across these same metrics. We also generated record full year Adjusted EBITDA¹, net income and Adjusted Net Income¹.

In Q4, we maintained our tighter underwriting posture from Q3 while navigating a dynamic environment, including the protracted US government shutdown. As credit performance improved, we accelerated originations in December, exceeding the top end of our updated Ending CLAB¹ guidance.

That acceleration required upfront provisioning and incremental acquisition spend, which impacted Q4 profitability, while the related revenue will be earned over future periods. With credit trends having turned and a record ending CLAB¹, we believe the temporary and prudent steps taken in Q4 has set the business up to enter 2026 positioned for strong growth and profitability.

With the recent launch of Propel Bank and our partnership with Column on track to launch in the first quarter, we are expanding our geographic reach, enhancing our product capabilities and strengthening our partnership model. We believe these initiatives and the strengthened credit performance in Q1 have positioned us well for robust profitable growth in 2026 and beyond.” said Clive Kinross, Chief Executive Officer.

Discussion of Financial Results and Business Strategy

• Strong seasonal consumer demand and improved late-quarter credit performance in North America drove record quarterly Total Originations Funded¹, Ending CLAB¹ and revenue
  • Macroeconomic pressures affecting our consumers in the third quarter persisted into the early fourth quarter, exacerbated by the longest federal government shutdown in US history which ended on November 12, 2025. As a result, Propel and its Bank Partners maintained a measured and prudent approach to growth, moderating origination activity early in the quarter. As credit performance trends improved, origination activity and portfolio growth accelerated meaningfully later in the quarter, particularly in December
  • We and our Bank Partners achieved record quarterly new customer originations, while also achieving record originations from returning and existing customers, which represented 57% of Total Originations Funded¹ in Q4 2025
    • Total Originations Funded¹ increased by 26% year-over-year to a quarterly record of $220.9 million in Q4 2025, driving Ending CLAB¹ to a record of $589.5 million, up 23% from Q4 2024
  • The record Ending CLAB¹ drove the 21% year-over-year growth and record revenue of $155.8 million in Q4 2025. The Annualized Revenue Yield¹ decreased to 109% in Q4 2025 from 113% in Q4 2024. The decline primarily reflects the timing impact of stronger origination volumes later in the quarter, particularly in December, which increased Ending CLAB¹ without a corresponding full-quarter revenue contribution. A meaningful portion of revenue associated with these late-quarter originations will be earned in future periods, temporarily impacting the Annualized Revenue Yield¹.
• Propel and its Bank Partners maintained a disciplined approach to underwriting across North America throughout the quarter, prioritizing portfolio quality amid continued macroeconomic pressure on lower-income consumers
  • The credit performance softness that emerged in the third quarter extended into Q4, resulting in a provision for loan losses of 56% of revenue, was driven by macro economic dynamics, including the US federal government shutdown. In response, underwriting remained disciplined through most of Q4 with origination growth moderated and a greater emphasis placed on higher credit-quality and returning customers.
  • As the quarter progressed, credit performance strengthened within targeted risk parameters, enabling reacceleration of originations in December. Based on current performance trends, management believes Q4 likely represented the peak level of provisioning.
• Performance in the UK exceeded expectations for the full year, with over 50% year-over-year revenue growth
  • The UK business delivered record quarterly and full year revenue while maintaining strong credit performance, reflecting the strength of the integration, disciplined underwriting, and broadening distribution channels
  • The business is well-positioned to accelerate this momentum in 2026 and beyond, as it expands the addressable market with new products and partnerships and continues to leverage Propel’s best practices and infrastructure
• The Lending as a Service (LaaS) program delivered record revenue of $5.8 million in Q4 2025, up 97% year-over-year, reflecting continued expansion across existing bank partnerships and higher origination volumes
  • Towards the end of the quarter, Propel increased commitments from existing purchasers, supporting higher origination capacity while maintaining disciplined credit performance
  • With expanding capital commitments, increased geographic reach, and strong forward flow demand, the LaaS program is well positioned for continued growth in 2026 and beyond
• Propel advanced the next phase of its global growth strategy during the fourth quarter through the announcement of its partnership with Column and the regulatory approval of Propel Bank
  • In November 2025, Propel announced a partnership with Column N.A. (“Column”), a nationally chartered US bank, to support the launch of Freshline, a new line of credit product for underserved US consumers
    • Freshline, expected to launch before the end of Q1, is designed to address a new segment of the credit spectrum for Propel and will be offered in additional states, expanding Propel’s addressable market
    • On February 25, 2026, Propel announced a $60 million forward flow purchase agreement with funds managed by Mesirow Alternative Credit to support Freshline
  • In December 2025, Propel announced the receipt of regulatory approval for Propel International Bank Inc. (“Propel Bank”), a wholly owned subsidiary of Propel. Propel Bank provides a regulated platform to support the potential diversification of products and services, enhance operational flexibility, and enable continued geographic expansion
    • At launch, Propel Bank is expected to support lending and servicing activities across Propel’s US programs and to complement the Company’s existing bank partner and LaaS model
• Net income and Adjusted Net Income¹ in Q4 2025 reflected a combination of operating factors and strategic investments, while increasing on a full-year basis driven by overall growth and the continued strength of the Company’s core operations
  • Fourth-quarter profitability was impacted by: i) higher credit costs, including higher provisioning and Net Charge-Offs¹ reflecting macro-related performance trends that began in Q3 exacerbated by the US government shutdown; ii) significant late-quarter origination growth, which required upfront provisioning and higher acquisition and marketing spend without a corresponding full-period revenue contribution which elevated the provision ratio when measured as a percentage of revenue in the quarter; and iii) incremental start-up and infrastructure costs associated with the launch of the Column partnership and Propel Bank
  • Overall, net income and Adjusted Net Income¹ increased for the full year, supported by record revenue, growth in ending CLAB¹, and the expanding contribution from the UK and LaaS program
• Strong consolidated financial position and continued earnings growth supports the continued expansion of existing programs, growth initiatives and an increase to our dividend
  • The Company ended Q4 2025 with approximately $103 million of undrawn credit capacity on its various credit facilities with a Debt-to-Equity³ ratio of 1.3x
    • The Debt-to-Equity³ ratio has remained the same as the end of Q4 2024, even with the 23% growth in Ending CLAB¹ for the three month period ending December 31, 2025
• The Company’s strong financial position and continued earnings generation supported the decision to increase our quarterly dividend by 7% to C$0.225 per common share in Q1 2026

2026 Operating and Financial Targets

The Company enters fiscal year 2026 with record Ending CLAB¹, a strengthened portfolio, and improving credit performance following the actions taken throughout 2025 to navigate a dynamic macroeconomic environment. Full year profitability reflected disciplined underwriting and strategic investments made during the year to enhance portfolio resilience and expand platform capabilities. Management believes these actions have established a strong foundation for 2026, supported by healthy demand and credit performance entering the year, and multiple strategic initiatives now in place to support sustainable, profitable growth.

The Company’s 2026 operating and financial targets are supported by its strategy, which includes: (i) continued scaling of its core businesses in North America including product expansion and additional marketing channels; (ii) further growth in the UK through QuidMarket; (iii) the operationalization and expansion of new programs, including the launch of the Column partnership and Propel Bank, alongside the continued growth of the LaaS platform to serve a broader segment of the credit spectrum and additional geographies in the US market; and (iv) further investments in AI to drive efficiency in the business.

As in prior years, the Company’s targets do not assume the contribution of new business development initiatives, material regulatory changes beyond those previously disclosed, or acquisitions. Management believes these targets are based on reasonable assumptions given current market conditions and reflect a balanced approach to growth, profitability, and risk management. The Company’s 2026 operating and financial targets are presented below.

The operating and financial 2026 targets are based on …

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