Propel Holdings Reports Record Revenue Amid Cautious Outlook

Propel Holdings, Inc. ((TSE:PRL)) has held its Q3 earnings call. Read on for the main highlights of the call.

Propel Holdings’ recent earnings call painted a picture of robust financial health, underscored by record-breaking revenue and growth across various regions. The sentiment was largely positive, driven by impressive financial metrics and strategic advancements, although tempered by economic pressures and a cautious outlook. The company remains optimistic about future growth, particularly in the UK and through its Lending as a Service program, while maintaining a prudent approach given the current economic climate.

Record-Breaking Revenue and Growth

Propel Holdings reported a record quarterly revenue of $152.1 million, marking a 30% increase from Q3 2024. The company also achieved record total originations funded of $205 million, a 37% year-over-year increase. Net income rose significantly by 43% to $15 million, reflecting the company’s strong financial performance.

Strong Performance in Canada and UK

The company’s revenue in Canada grew by 41% year-over-year, showcasing its solid market presence. In the UK, Propel Holdings achieved record originations and revenue, with a remarkable 78% increase in loan originations in September, highlighting its successful market penetration.

Lending as a Service Growth

Propel’s Lending as a Service program saw substantial growth, with record revenue exceeding $5 million in Q3. This represents a more than fourfold increase from the previous year and a sequential growth of approximately 13%, underscoring the program’s expanding influence.

Successful Integration and Growth in UK Market

The integration of QuidMarket in the UK was completed ahead of schedule, contributing to record growth. This success was driven by enhanced acquisition, risk, and analytics capabilities, positioning Propel Holdings for continued success in the UK market.

Dividend Increase

In a show of confidence, Propel Holdings’ Board of Directors approved an increase in the annual dividend from $0.78 to $0.84 per share. This marks the ninth consecutive dividend increase, reflecting the company’s commitment to returning value to shareholders.

Uptick in Delinquencies

The earnings call noted a modest uptick in delinquencies in the US, attributed to normal seasonal trends and broader macroeconomic pressures. Propel Holdings is making targeted underwriting adjustments to maintain credit quality amidst these challenges.

Economic Pressures on US Consumers

Inflation in essential spending categories and the resumption of student loan collections have pressured US consumers, leading to moderated real wage growth. These factors are impacting consumer behavior and financial stability.

Revised Guidance

Propel Holdings revised its 2025 guidance, anticipating NCAB growth to be moderately below the low end of the previously communicated range. Adjustments to margin and return on equity metrics were also made, reflecting a cautious approach in light of current economic conditions.

Forward-Looking Guidance

Looking ahead, Propel Holdings expects continued strong performance in the third quarter of 2025, with record total originations funded and revenue growth. Despite a modest uptick in delinquencies, particularly in the U.S., the company remains confident in its AI-powered platform and disciplined risk management to support stable credit performance and profitable growth.

In conclusion, Propel Holdings’ earnings call highlighted a strong financial performance with record-breaking achievements across several metrics. While the company faces economic pressures, its strategic initiatives and prudent management approach position it well for future growth. The positive sentiment, coupled with a cautious outlook, reflects a balanced approach to navigating the current economic landscape.