Canada's Propel Q2 revenue beats estimates on strong loan originations

Propel Holdings

05/08/2026 22:19

Overview
Canadian fintech's Q2 revenue rose 26%, beating analyst expectations
Q2 adjusted EBITDA rose 24%, beating analyst estimates
Company raised quarterly dividend by 6%, twelfth consecutive increase

Outlook
Propel raises quarterly dividend to C$0.255 per share, up 6% from prior quarter
Company expects continued profitable growth in 2026 and beyond, supported by strong consumer demand
Propel says scaling of Lending-as-a-Service to contribute more to revenue and profitability

Result Drivers
STRONG CONSUMER DEMAND - Propel said record originations and revenue were supported by strong demand from new, returning and existing customers
NEW CUSTOMER GROWTH - New customer originations increased 43% year-over-year across the platform, including Lending-as-a-Service
LENDING-AS-A-SERVICE EXPANSION - LaaS revenue rose 150% year-over-year, driven by expansion into new states, new products and broader distribution channels

Company press release: ID:nCNWvYdKPa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$179.60 mln
$176.78 mln (7 Analysts)
Q2 Adjusted EPS
 
$0.58
 
Q2 EPS
 
$0.38
 
Q2 Adjusted Net Income
 
$24.80 mln
 
Q2 Net Income
 
$16.20 mln
 
Q2 Adjusted EBITDA
Beat
$43.70 mln
$38.12 mln (6 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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$31.00, about 17.3% above its August 4 closing price of C$26.42
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Aug 4 - Upstart Q2 revenue rises on jump in loan originations 
Aug 4 - Consumer Portfolio Services Q2 net income rises 30% on record loan originations
Aug 4 - Credit Acceptance Q2 adjusted profit beats estimates on lower costs

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