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Canada's Propel Holdings Q3 revenue beats on new customer growth

By Reuters News


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


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.)

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