Canada's Propel Holdings Q3 revenue beats on new customer growth
Overview
Canada fintech lender's Q3 revenue rose 32% yr/yr, beating analyst expectations
Q3 adjusted EBITDA beat analyst expectations; adjusted EPS rose 53% yr/yr
Company raised quarterly dividend 6%, thirteenth consecutive increase
Outlook
Propel raises annual dividend to C$1.08 per share, up 6%, effective Q4 2026
Company says consumer demand remains strong and credit performance is consistent with seasonal expectations
Propel expects continued profitable growth in 2026 and beyond
Result Drivers
NEW CUSTOMER GROWTH - Co said new customer originations rose 55% yr/yr, supporting record originations and revenue
HIGHER REVENUE YIELD - Co attributed increased annualized revenue yield to growth in new customer originations, scaling of Lending-as-a-Service, and greater contribution from higher yielding segments
EFFICIENCY GAINS - Co said investments in technology, AI, automation and operating infrastructure drove operating efficiencies and improved acquisition costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $201.50 mln | $196.12 mln (6 Analysts) |
Q3 Adjusted EPS | $0.59 | ||
Q3 EPS | $0.43 | ||
Q3 Adjusted Net Income | $24.90 mln | ||
Q3 Net Income | $18.40 mln | ||
Q3 Adjusted EBITDA | Beat | $44.80 mln | $40.86 mln (5 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$36.75, about 38.6% above its November 2 closing price of C$26.52
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Nov 3 - Oportun Financial's Q3 revenue beats estimates on higher originations in lower-risk segments
Nov 2 - Ethos Technologies Q3 revenue more than doubles on third-party channel growth
Nov 2 - Ibotta Q3 revenue beats analyst estimates on strong consumer demand
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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.)