Canada's Propel Q1 revenue rises 20%, beats estimates

Overview

• Canada fintech lender's Q1 revenue rose 20% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q1 beat analyst expectations; adjusted EPS declined slightly yr/yr

• Company raised quarterly dividend by 7%, marking eleventh consecutive increase

Outlook

• Company expects growth to accelerate in 2026, supported by strong demand and credit trends

• Propel plans further U.S. expansion and new product rollouts, including Freshline, through 2026

• Company expects LaaS program to be an increasingly meaningful growth driver in 2026 and beyond

Result Drivers

• RECORD ORIGINATIONS - Co said strong consumer demand, expanded geographic reach, and new product and marketing partners drove record Q1 originations and revenue

• STABLE CREDIT PERFORMANCE - Disciplined underwriting and a strong U.S. tax season supported stable credit performance and a lower provision for loan losses

Company press release: ID:nCNWmR3bda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "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 is C$30.50, about 42.5% above its May 1 closing price of C$21.41

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

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