Overview

* Propel Q2 revenue rises 34% yr/yr, but missed analyst expectations, per LSEG data

* Adjusted EPS for Q2 misses consensus

* Adjusted net income beats estimates, per LSEG data

* Co announces 8% dividend increase, marking eighth consecutive increase

Outlook

* Propel expects strong results in the second half of 2025

* Company plans to expand products and enter new markets

* Propel increases dividend by 8% effective Q3 2025

* Company sees AI platform and risk management as key differentiators

Result Drivers

* STRONG CONSUMER DEMAND - Propel attributes record revenue growth to strong consumer demand and its AI-powered platform

* RECORD LOAN ORIGINATIONS - Total Originations Funded increased by 35% to a record $194.4 mln, driving revenue growth

* CREDIT PERFORMANCE - Provision for loan losses as a percentage of revenue decreased, indicating improved credit performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $143 mln $144.30

Revenue mln (5

Analysts

)

Q2 Miss $0.45 $0.46 (6

Adjusted Analysts

EPS )

Q2 EPS $0.36

Q2 Beat $19.20 $18.50

Adjusted mln mln (4

Net Analysts

Income )

Q2 Net $15.10

Income mln

Q2 Miss $35.20 $36.70

Adjusted mln mln (4

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the consumer lending peer group is "buy"

* Wall Street's median 12-month price target for Propel Holdings Inc ( PRLPF ) is C$45.00, about 20.1% above its August 5 closing price of C$35.95

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)