Propel Q3 revenue up 30% on strong consumer demand

Propel Holdings

04/11/2025 22:18

Overview

Propel Q3 2025 revenue grows 30% yr/yr but misses analyst expectations

Adjusted EBITDA for Q3 2025 grows 12% yr/yr but misses analyst expectations

Company announces 8% dividend increase, marking ninth consecutive increase

Outlook

Propel expects fiscal 2025 revenue, net income margin, and ROE to meet initial targets

Company revises fiscal 2025 targets: Ending CLAB growth 18%-22%, Adjusted EBITDA Margin 23%-25%

Propel maintains cautious approach amid inflation and trade tariffs in largest market, the US

Result Drivers

CONSUMER DEMAND - Strong consumer demand drove record quarterly revenue and Total Originations Funded

DISCIPLINED UNDERWRITING - Propel maintained disciplined underwriting and stable credit performance amid a dynamic macroeconomic environment

LENDING AS A SERVICE - Expansion of the LaaS program, including two new U.S. states, contributed to higher origination volumes and revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$152.10 mln
$156.96 mln (5 Analysts)
Q3 EPS
$0.36
Q3 Net Income
$15 mln
Q3 Adjusted EBITDA
Miss
$32.29 mln
$40.12 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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$42.00, about 38% above its November 3 closing price of C$26.02

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nCNWQXJXsa

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(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.)