Canada's Dominion Lending marginally misses Q3 revenue misses estimates

Dominion Lending Centres

06/11/2025 22:43

Overview

Dominion Lending Q3 revenue grows 20% yr/yr, slightly missing analyst expectations

Adjusted EBITDA for Q3 rises 16% but misses analyst estimates

Net income for Q3 increases 70% yr/yr, driven by higher revenue

Outlook

Dominion Lending Centres maintains a positive outlook for the remainder of 2025

Company faces tougher comparison quarters in Q4 2025 and Q1 2026

Company plans to leverage Velocity platform to increase broker market share

Result Drivers

FUNDED MORTGAGE VOLUMES - 19% increase in funded mortgage volumes driven by broker network growth and productivity, and strength in the mortgage renewal market

VELOCITY PLATFORM ADOPTION - Broker adoption of Velocity platform increased to 85%, enhancing broker network efficiency

GENERAL AND ADMINISTRATIVE EXPENSES - 27% increase due to sales conference and higher personnel and IT costs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
C$26.38 mln
C$26.40 mln (3 Analysts)
Q3 Adjusted EBITDA
Miss
C$14.16 mln
C$14.80 mln (3 Analysts)
Q3 Adjusted EBITDA Margin
54.00%
Q3 Income From Operations
C$12.68 mln
Q3 Pretax Profit
C$12.19 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the investment management & fund operators peer group is "buy"

Wall Street's median 12-month price target for Dominion Lending Centres Inc is C$11.38, about 8% above its November 5 closing price of C$10.47

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nNFCbNtr7v

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)