Pineapple Financial (PAPL) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 4.90M
• Price to Earnings (P/E): ―
• Beta (1Y): -1.74
• Revenue Growth: 16.06%
• EPS Growth: 4.26%
• Country: US
• Employees: 55
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -0.35
• Shares Outstanding: 1,307,642
• 10 Day Avg. Volume: 6,647,091
• 30 Day Avg. Volume: 4,898,164
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: -0.38
• 1Y Price Target: $6.50
• Price Target Upside: -0.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $6.50 ▼(-0.31% Downside)

Pineapple Financial's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and cash flow issues. While technical indicators and a strategic corporate event provide some positive momentum, the negative valuation metrics and financial instability weigh heavily on the score.

Pineapple Financial Business Overview & Revenue Model

Company Description

Pineapple Financial Inc. operates as a mortgage technology and brokerage company in Canada. The company offers mortgage brokerage services and technology solutions to Canadian mortgage agents, brokers, sub-brokers, brokerages, and consumers through data-driven systems together with cloud based tools. The company also operates MyPineapple technology platform, which allows users to conduct their brokerage services. In addition, it offers back office support services, such as digital and automated onboarding and set up, loan packaging and processing, digital document collection and client portal, loan maintenance, payroll, lender communication, reporting requirements for regulators and business management, cloud services, expense collections, document preparation, compliance, training, administration, and marketing. Further, the company provides pre-underwriting support services, including credit review, data validation, fraud analysis and compliance, appraisal ordering and review, and data analytics. Additionally, it offers various insurance products, such as life, accident and disability, critical illness, and credit insurance. Pineapple Financial Inc. was formerly known as 2487269 Ontario Ltd and changed its name to Pineapple Financial Inc. in June 2021. The company was founded in 2016 and is based in North York, Canada.

How the Company Makes Money

Pineapple Financial makes money through a diversified revenue model, primarily consisting of service fees, subscription models, and investment returns. The company charges fees for its digital banking services, including transaction fees, account maintenance fees, and foreign exchange services. Additionally, Pineapple Financial generates revenue through its investment management arm by earning management and performance fees from assets under management. Another key revenue stream is its financial advisory services, where the company charges clients for personalized financial planning and consulting. Strategic partnerships with other financial institutions and technology companies also contribute to its earnings, providing additional revenue through collaborative product offerings and technology licensing.

Pineapple Financial Financial Statement Overview

Summary

Pineapple Financial is facing significant financial challenges, including negative profitability, high leverage, and cash flow issues. Despite a slight revenue growth, the overall financial health is weak, necessitating strategic improvements.

Income Statement

Pineapple Financial's income statement shows significant challenges. The company has experienced a decline in profitability, with negative net profit margins and EBIT margins over the TTM period. Although there is a positive revenue growth rate of 9.7% in the TTM, the company struggles with negative gross profit margins and increasing losses, indicating inefficiencies in cost management and operations.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.75 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is relatively low, suggesting limited financial stability and a heavy reliance on debt financing.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, with a concerning free cash flow growth rate of -15.3% in the TTM. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is positive, but this is due to negative net income, which is not a favorable indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.79M	17.58M	2.50M	3.60M	2.98M	2.69M
Gross Profit	1.14M	252.20K	172.14K	1.24M	1.74M	1.15M
EBITDA	-2.22M	-2.09M	-2.31M	-2.46M	-180.18K	195.17K
Net Income	-3.53M	-4.10M	-2.81M	-2.81M	-234.68K	141.81K
Balance Sheet
Total Assets	4.70M	4.10M	4.63M	6.43M	7.58M	310.38K
Cash, Cash Equivalents and Short-Term Investments	1.13M	580.36K	720.37K	3.90M	7.01M	288.25K
Total Debt	1.47M	977.11K	1.54M	1.02M	263.24K	10.45K
Total Liabilities	3.86M	2.75M	2.84M	1.80M	662.56K	153.61K
Stockholders Equity	842.57K	1.35M	1.79M	4.63M	6.92M	156.77K
Cash Flow
Free Cash Flow	-1.45M	-1.71M	-3.48M	-2.89M	606.92K	159.93K
Operating Cash Flow	-703.85K	-1.71M	-2.12M	-1.83M	668.55K	159.93K
Investing Cash Flow	-1.03M	-1.12M	-1.36M	-1.05M	-101.35K	0.00
Financing Cash Flow	2.27M	2.91M	349.01K	-61.47K	6.27M	-24.89K

Pineapple Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAPL, the sentiment is Positive. The current price of 6.52 is above the 20-day moving average (MA) of 5.03, above the 50-day MA of 4.27, and above the 200-day MA of 5.55, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 60.63 is Neutral, neither overbought nor oversold. The STOCH value of 41.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAPL.

Pineapple Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEL	68 Neutral	703.04M	8.44	0.00%	―	35.12%	25.28%
PFSI	64 Neutral	6.52B	17.49	8.13%	0.94%	20.77%	96.22%
LDI	61 Neutral	1.51B	-12.15	-15.29%	―	6.60%	44.77%
GHLD	58 Neutral	1.24B	51.21	2.12%	―	34.62%	-7.94%
UWMC	53 Neutral	10.75B	-99.10	6.73%	6.09%	12.27%	-21.43%
PAPL	51 Neutral		―	-244.51%	―	16.06%	4.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Pineapple Financial Corporate Events

Pineapple Financial Announces $100M Digital Asset Strategy

On September 2, 2025, Pineapple Financial Inc. announced a $100 million private placement to launch the first digital asset treasury strategy anchored in INJ, the native asset of Injective. This strategic move positions Pineapple as the first publicly traded company to hold INJ, aligning it with the growing trend of blockchain-based finance. The initiative is expected to generate a passive yield of approximately 12%, highlighting Pineapple’s commitment to innovation in financial strategies. The transaction attracted participation from leading investors in both traditional finance and crypto, underscoring confidence in Pineapple’s strategy and Injective’s potential to transform financial markets.

Pineapple Financial Issues Shares from Warrant Exercise

Between July 25 and August 1, 2025, Pineapple Financial Inc. saw the exercise of 302,967 warrants, resulting in the issuance of an equal number of common shares. This transaction generated gross proceeds of $908,901 for the company, which were part of a public offering closed on May 5, 2025. As of August 1, 2025, Pineapple Financial has 1,307,642 common shares outstanding and a cash balance of $2,134,671.