TORONTO, Ontario — March 2, 2026 — Leads & Copy — Propel Holdings Inc. (TSX: PRL) reported its financial results for the three months and fiscal year that ended Dec. 31, 2025. The fintech company facilitates credit access for underserved consumers. All figures are in U.S. dollars unless otherwise noted.
The company reported a 21% increase in revenue to $155.8 million for Q4 2025 and a 31% increase to $589.8 million for fiscal year 2025, marking record performance for both periods.
Adjusted EBITDA decreased by 32% to $21.6 million in Q4 2025 but increased by 7% to $130.3 million for fiscal year 2025, which is a record for a 12-month fiscal period. Net income decreased by 49% to $5.9 million in Q4 2025 but rose by 28% to $59.5 million for fiscal year 2025, also a record for a 12-month fiscal period.
Adjusted net income decreased by 53% to $8.0 million in Q4 2025, while it increased by 7% to $66.7 million for fiscal year 2025, also a record for a 12-month fiscal period. Diluted EPS decreased by 51% to $0.14 (C$0.20) in Q4 2025 but increased by 15% to $1.41 (C$1.97) for fiscal year 2025, another record for a 12-month fiscal period.
Adjusted diluted EPS decreased by 55% to $0.19 (C$0.26) in Q4 2025 and decreased by 4% to $1.58 (C$2.21) for fiscal year 2025. Return on equity was 9% in Q4 2025 on an annualized basis, compared to 27% in Q4 2024, and 24% for fiscal year 2025, compared to 36% for fiscal year 2024.
Adjusted return on equity was 12% in Q4 2025 on an annualized basis, compared to 40% in Q4 2024, and 27% for fiscal year 2025, compared to 48% for fiscal year 2024. Loans and advances receivable increased by 23% in Q4 2025 to $459.8 million, a record ending balance. The ending combined loan and advance balances increased by 23% in Q4 2025 to $589.5 million, also a record ending balance. A dividend of C$0.21 per common share was paid for Q4 2025 on Dec. 4, 2025, an 8% increase from Q3 2025.
Propel introduced its 2026 operating and financial targets, which reflect the improved credit trajectory exiting Q4 2025, record ending balances, and strategic initiatives launching in Q1 2026. The company projects ending combined loan and advance balances year-over-year growth of 18%-24%.
The company also projects revenue of $725-$775 million, adjusted EBITDA of $152.5-$177.5 million, net income of $70-$90 million, adjusted net income of $80-$100 million, return on equity of 24%+, and adjusted return on equity of 28%+, according to the release.
CEO Clive Kinross said the company delivered a strong full year in 2025, achieving record revenue, total originations funded and ending combined loan and advance balances. Kinross added that the company generated record full-year adjusted EBITDA, net income, and adjusted net income.
Kinross also noted the company maintained a tighter underwriting posture from Q3 while navigating a dynamic environment, including the U.S. government shutdown. As credit performance improved, originations accelerated in December, exceeding the top end of ending combined loan and advance balances guidance.
Strong seasonal consumer demand and improved late-quarter credit performance in North America drove record quarterly total originations funded, ending combined loan and advance balances, and revenue. Macroeconomic pressures affecting consumers in Q3 persisted into early Q4, further strained by the U.S. federal government shutdown that ended Nov. 12, 2025.
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 later in the quarter, particularly in December.
Propel and its bank partners achieved record quarterly new customer originations and record originations from returning and existing customers, representing 57% of total originations funded in Q4 2025. Total originations funded increased by 26% year-over-year to a quarterly record of $220.9 million in Q4 2025, driving ending combined loan and advance balances to a record of $589.5 million, up 23% from Q4 2024. The record ending combined loan and advance balances drove the 21% year-over-year growth and record revenue of $155.8 million in Q4 2025.
The annualized revenue yield 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 combined loan and advance balances 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 yield.
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 Q3 extended into Q4, resulting in a provision for loan losses of 56% of revenue, driven by macroeconomic dynamics, including the U.S. 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 a re-acceleration of originations in December. Management believes Q4 likely represented the peak level of provisioning based on current performance trends.
Performance in the U.K. exceeded expectations for the full year, with over 50% year-over-year revenue growth. The U.K. 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 positioned to accelerate this momentum in 2026 and beyond, expanding the addressable market with new products and partnerships and continuing to leverage Propel’s best practices and infrastructure.
The Lending as a Service 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. Propel increased commitments from existing purchasers, supporting higher origination capacity while maintaining disciplined credit performance.
Propel advanced the next phase of its global growth strategy during Q4 through its partnership with Column and the regulatory approval of Propel Bank. In November 2025, Propel announced a partnership with Column N.A. to support the launch of Freshline, a new line of credit product for underserved U.S. 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 Feb. 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., a wholly-owned subsidiary. 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 U.S. programs and complement the company’s existing bank partner and Lending as a Service model. Net income and adjusted net income 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 higher credit costs, including higher provisioning and net charge-offs reflecting macro-related performance trends that began in Q3, exacerbated by the U.S. government shutdown. Significant late-quarter origination growth 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, as well as incremental start-up and infrastructure costs associated with the launch of the Column partnership and Propel Bank.
Overall, net income and adjusted net income increased for the full year, supported by record revenue, growth in ending combined loan and advance balances, and the expanding contribution from the U.K. and Lending as a Service program. The company ended Q4 2025 with approximately $103 million of undrawn credit capacity on its various credit facilities with a debt-to-equity ratio of 1.3x. The debt-to-equity ratio remained the same as at the end of Q4 2024, even with the 23% growth in ending combined loan and advance balances for the three-month period ending Dec. 31, 2025.
The company’s financial position and continued earnings generation supported the decision to increase its quarterly dividend by 7% to C$0.225 per common share in Q1 2026.
The company enters fiscal year 2026 with record ending combined loan and advance balances, 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 in place to support sustainable, profitable growth.
The company’s 2026 operating and financial targets are supported by its strategy, which includes continued scaling of its core businesses in North America, further growth in the U.K. through QuidMarket, the operationalization and expansion of new programs, including the launch of the Column partnership and Propel Bank, alongside the continued growth of the Lending as a Service platform to serve a broader segment of the credit spectrum and additional geographies in the U.S. market, and 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.
Source: Propel Holdings
