Overview

* Propel Q3 2025 revenue grows 30% yr/yr but misses analyst expectations

* Adjusted EBITDA for Q3 2025 grows 12% yr/yr but misses analyst expectations

* Company announces 8% dividend increase, marking ninth consecutive increase

Outlook

* Propel expects fiscal 2025 revenue, net income margin, and ROE to meet initial targets

* Company revises fiscal 2025 targets: Ending CLAB growth 18%-22%, Adjusted EBITDA Margin 23%-25%

* Propel maintains cautious approach amid inflation and trade tariffs in largest market, the US

Result Drivers

* CONSUMER DEMAND - Strong consumer demand drove record quarterly revenue and Total Originations Funded

* DISCIPLINED UNDERWRITING - Propel maintained disciplined underwriting and stable credit performance amid a dynamic macroeconomic environment

* LENDING AS A SERVICE - Expansion of the LaaS program, including two new U.S. states, contributed to higher origination volumes and revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $152.10 $156.96

Revenue mln mln (5

Analysts

)

Q3 EPS $0.36

Q3 Net $15 mln

Income

Q3 Miss $32.29 $40.12

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$42.00, about 38% above its November 3 closing price of C$26.02

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(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.)