Propel Holdings Inc: Strong Financial Performance and Strategic Growth Justify Buy RatingAfter market close, Propel reported Q1/25 results featuring a beat on credit and EPS. Revenue grew by 44% year-over-year to reach $138.9M. Ending CLAB was $7M above our expectations at $483M, driven by strong origination activity offsetting seasonally strong repayments. Annualized yield reached 115% and was above our 114% estimate. On the credit front, the firm's PCL ratio improved by 1.7%-pts year- over-year to 42.2% and outperformed our forecasted 44.2%. QuidMarket (QM) is also off to a strong start, generating $10M of revenue in a seasonally light quarter against the $35-$40M F24 run rate. This, in our view, suggests the ability for QM to reach a 40% growth rate in F25 with a further acceleration in F26 as management injects capital. Overall, we believe the credit tightening by traditional lenders, an underserved consumer market and higher inflation will remain tailwinds for PRL.