Financial and Operational Highlights for Q1 2026 (Shown in U.S. Dollars unless otherwise stated)Comparable metrics relative to Q1 2025
Revenue: $166.1 million in Q1 2026, representing record quarterly performance, compared to $138.9 million in Q1 2025
Adjusted EBITDA1: $42.0 million in Q1 2026, representing record quarterly performance, compared to $41.2 million in Q1 2025
Net Income: $20.7 million in Q1 2026 compared to $23.5 million in Q1 2025
Adjusted Net Income1: $23.0 million in Q1 2026 compared to $23.4 million in Q1 2025
Diluted EPS2: $0.49 (C$0.67) in Q1 2026 compared to $0.56 (C$0.80) in Q1 2025
Adjusted Diluted EPS1,2: $0.54 (C$0.74) in Q1 2026 compared to $0.55 (C$0.80) in Q1 2025
Return on Equity3: 31% in Q1 2026 on an annualized basis compared to 42% in Q1 2025
Adjusted Return on Equity1: 34% in Q1 2026 on an annualized basis compared to 42% in Q1 2025
Loans and Advances Receivable: $466.4 million in Q1 2026, a record ending balance, compared to $380.1 million in Q1 2025
Ending Combined Loan and Advance Balances ("CLAB")1: $592.7 million in Q1 2026, a record ending balance, compared to $483.2 million in Q1 2025
Dividend: paid a Q1 2026 dividend of C$0.225 per common share on March 4, 2026, representing a 7% increase to our Q4 2025 dividend
Management Commentary
"We are pleased to report a very strong start to the year, supported by stable credit performance, and delivered record first quarter originations, contributing to record revenue, Adjusted EBITDA¹ and Ending CLAB1.
Supported by robust consumer demand, origination volumes remained strong into 2026, increasing by 30% year-over-year in the quarter and building on momentum from the end of 2025, driving growth across the portfolio. Credit performance was stable, with provision for loan losses of 45% of revenue, driven by our disciplined underwriting. This represents a significant improvement from 56% in Q4 2025 and reflects strong performance for a first quarter period.
Looking ahead, we remain focused on executing our growth strategy. We are expanding into new states in the U.S., introducing new products and adding new marketing partners and channels to scale originations further, while leveraging our AI-powered platform to support continued credit performance.
We are seeing strong momentum across the business. With a record Ending CLAB1, sustained demand and new growth initiatives beginning to scale, including Propel Bank and the launch of the Freshline product in partnership with Column, we are focused on the opportunities ahead. We are confident in our ability to deliver continued profitable growth in 2026 and beyond," said Clive Kinross, Chief Executive Officer.
Discussion of Financial Results and Business Strategy
Strong consumer demand, expanded geographic reach, and additional product and marketing partners drove record first quarter Total Originations Funded1, as well as quarterly record Ending CLAB1 and revenue
Propel and its Bank Partners delivered record first quarter Total Originations Funded1, supported by robust demand across both new and returning and existing customers. New customer Total Originations Funded1 grew by 37% year-over-year in Q1 2026
Total Originations Funded1 increased by 30% year-over-year to a first quarter record of $199.3 million in Q1 2026, driving Ending CLAB1 to a record of $592.7 million, up 23% from Q1 2025
The growth in Ending CLAB1 supported 20% year-over-year revenue growth to a record $166.1 million in Q1 2026
Disciplined underwriting and a strong tax season in the U.S. supported stable credit performance
Supported by the Company's AI-powered underwriting, Propel achieved a provision for loan losses of 45% of revenue in Q1 2026. This reflects a healthy credit environment, is consistent with seasonal trends and represents a significant decrease from the 56% provision the Company experienced in Q4 2025
Net income and Adjusted Net Income1 in Q1 2026 reflect continued growth and ongoing investment in the business
Profitability in Q1 2026 was driven primarily by record revenue alongside stable credit performance
Results also reflect a higher mix of new customer originations and continued investment in scaling key growth initiatives, including Propel International Bank Inc. ("Propel Bank"), Lending-as-a-Service ("LaaS"), and the Column N.A. ("Column") partnership, as well as ongoing investment in marketing channels and AI-driven capabilities to support long-term growth
Propel UK continued to deliver against its 2026 strategy
Growth is expected to accelerate as the year progresses, supported by strong performance and credit trends, reflecting disciplined underwriting and expanded distribution channels
The business remains focused on expanding its addressable market in 2026 through new products and partnerships leveraging Propel's platform and infrastructure
The LaaS program delivered record revenue of $5.9 million in Q1 2026, an increase of 114% year-over-year
LaaS program growth reflects continued expansion across existing bank partnerships and increasing origination volumes
With additional purchasers onboarded and expansion into new states, the LaaS program is expected to be an increasingly meaningful driver of growth in 2026 and beyond as the program scales
Expansion initiatives increase addressable market and support long-term growth
Propel launched Freshline, in partnership with Column on March 10, 2026, with roll-out continuing through the balance of 2026 across additional U.S. states
The Freshline product expands Propel's presence into new customer segments and geographies, increasing its U.S. addressable market
To support the Freshline roll-out, Propel secured $210 million in new capital commitments in Q1 2026, including $60 million from Mesirow Alternative Credit and $150 million from a new institutional investor, representing the largest forward flow commitment in the Company's history
Propel also continued to operationalize Propel Bank, supporting lending and servicing activities across its U.S. programs while enhancing long-term strategic flexibility
Strong financial position supports continued growth and an increase to our dividend
The Company maintains a strong financial position, supporting the continued expansion of its programs and growth initiatives
At quarter end, Propel had approximately $108 million of undrawn credit capacity on its various credit facilities with a Debt-to-Equity3 ratio of 1.2x
The Debt-to-Equity3 ratio has remained the same as the end of Q1 2025, even with the 23% growth in Ending CLAB1 for the three month period ending March 31, 2026
On April 28, Propel upsized its Fora credit facility to C$40 million from approximately C$26 million and reduced the cost of capital on the facility by approximately 200 basis points per annum
The Company's strong financial position and continued earnings generation supported the decision to increase the quarterly dividend by 7% to C$0.24 per common share in Q2 2026
Notes:
(1)
See "Non-IFRS Financial Measures and Industry Metrics" and "Reconciliation of Non-IFRS Financial Measures" below. See also "Key Components of Results of Operations" in the accompanying Q1 2026 MD&A for further details concerning the non-IFRS financial measures and industry metrics used in this press release including definitions and reconciliations to the relevant reported IFRS measure.
(2)
Results converted from USD to CAD assuming an exchange rate of USD/CAD $1.3717 for the three-month period ending March 31, 2026, and assuming an exchange rate of USD/CAD $1.4352 for the three-month period ending March 31, 2025.
(3)
See "Supplemental Financial Measures" in the accompanying Q1 2026 MD&A for further details concerning certain financial metrics used in this press release including definitions.
Dividend IncreasePropel also announced today that its board of directors has approved an increase to its dividend that represents an increase from C$0.90 per common share to C$0.96 per common share on an annualized basis. This represents an increase of 7% and the Company's eleventh consecutive quarterly dividend increase. The board declared a dividend of C$0.24 per common share, payable on June 3, 2026 to shareholders of record as of the close of business on May 15, 2026. The Company has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada).
Conference Call DetailsThe Company will be hosting a conference call and webcast tomorrow morning with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.
Conference call details are as follows:
Date:
Tuesday, May 5, 2026
Time:
8:30 a.m. EDT
Toll-free North America:
1-888-699-1199
Local Toronto:
1-416-945-7677
Rapid Connect:
Click here
Webcast:
Click here
Replay:
1-289-819-1450 or 1-888-660-6345 (PIN: 89337#)
About PropelPropel Holdings (TSX:PRL) the fintech building a new world of financial opportunity for consumers, partners, and investors. Propel's operating brands, Fora Credit, CreditFresh, ...
