Canada's Propel Q4 revenue misses estimates

Propel Holdings

02/03/2026 22:08

Overview

Canada fintech firm's Q4 revenue rose 21% but missed analyst expectations

Adjusted EPS for Q4 missed analyst expectations

Adjusted EBITDA for Q4 decreased 32%

Outlook

Propel targets 2026 revenue between $725 mln and $775 mln

Company expects 2026 net income of $70 mln to $90 mln

Propel anticipates 2026 adjusted EBITDA of $152.5 mln to $177.5 mln

Result Drivers

SEASONAL DEMAND - Strong seasonal consumer demand and improved late-quarter credit performance drove record quarterly Total Originations Funded and Ending CLAB

UNDERWRITING APPROACH - Propel maintained a disciplined underwriting approach, moderating origination activity early in the quarter due to macroeconomic pressures

LATE-QUARTER ORIGINATION - Late-quarter origination growth required upfront provisioning and acquisition spend, impacting Q4 profitability while revenue will be earned in future periods

Company press release: ID:nCNWtXfMWa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$155.8 mln
$165.1 mln (5 Analysts)
Q4 Adjusted EPS
Miss
$0.19
$0.39 (6 Analysts)
Q4 EPS
$0.14
Q4 Net Income
$5.9 mln
Q4 Adjusted EBITDA
Miss
$21.6 mln
$38.0 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", no "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$38.00, about 80.9% above its February 27 closing price of C$21.01

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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.)