Propel Holdings Inc

Latest Results (09.12.2025):

Propel Holdings Inc — Q2 2025: Propel reported strong Q2 2025 results with record volumes and growth across revenue, adjusted EBITDA and loans outstanding. Revenue rose 34% year‑over‑year to $142.95M, adjusted EBITDA reached $35.24M and net income was $15.08M, while Ending Combined Loan and Advance Balances grew to a record $520.4M.

Revenue

Revenue for Q2 2025 was $142.95 million, up 34% versus Q2 2024, and year‑to‑date revenue reached a record $281.9 million (up 39%).

Profitability

Adjusted EBITDA was $35.24 million (up 16% YoY) and adjusted EBITDA margin was 25%. Net income was $15.08 million (up 36% YoY) and adjusted net income was $19.19 million (up 22% YoY).

Earnings per Share & Dividend

Diluted EPS was $0.36 (USD), up 20% YoY; adjusted diluted EPS was $0.45. The company paid a Q2 2025 dividend of C$0.18 per share on June 4, 2025 (a 9% increase vs Q1 2025).

Loan Balances & Originations

Loans and advances receivable rose 33% YoY to $407.3 million; Ending Combined Loan and Advance Balances were a record $520.4 million (up 33%). Total Originations Funded in Q2 2025 were $194.4 million (a company record).

Credit Performance & Provisions

Provision for loan losses and other liabilities was $71.19 million in Q2 (50% of revenue). Net charge‑offs were $60.73 million for the quarter, ~12% of Average Combined Loan and Advance Balances.

Yield & Customer Mix

Annualized revenue yield was 114% in Q2 2025 (down slightly from Q2 2024), driven partly by higher proportion of return/existing customer originations; New Customer % of Total Originations Funded was 43% in Q2 2025 while record new customer originations were still achieved.

Capital & Funding

As of June 30, 2025 the US credit facilities provided up to $415M of borrowing capacity overall; in Q2 the MoneyKey facility was refinanced (commitment reduced to $15M) and the CreditFresh facility was upsized to $400M, with interest rates reduced materially (≈600 bps on MoneyKey and ≈130 bps on CreditFresh).

Acquisitions & LaaS

The QuidMarket UK acquisition (closed Nov 15, 2024) contributed to growth in Q2 2025; Propel’s LaaS (Lending‑as‑a‑Service) continues to expand (LaaS volumes are reported separately and excluded from loans and Ending Combined balances).

Operating Costs & Reclassifications

Total operating expenses were $42.46 million in Q2; acquisition & data, salaries, processing and other operating line items rose versus prior year. Effective April 1, 2025, LaaS program servicing costs were reclassified from Acquisition & Data to Processing, Technology & Program Servicing (comparatives restated).

Outlook & Regulatory

Management highlighted continued origination growth, strong credit performance for a Q2 (the best since Q2 2021), ongoing focus on underwriting and automation, and noted regulatory and macroeconomic risks (CFPB developments, interest rate/inflation dynamics). Management expects continued growth and strong credit performance through the remainder of 2025.