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Propel Holdings Inc
(TSX:PRL)
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Rating:69Neutral
Price Target:
C$31.00
▲(26.58% Upside)
Action:Downgraded
Date:08/10/26
The score is primarily held back by financial quality risks—most notably persistent negative operating/free cash flow and meaningful leverage—despite strong revenue growth and solid profitability. Technicals are constructive with clear upward momentum, and valuation is supportive with a moderate P/E and a ~3% dividend yield, but the cash-conversion profile remains the key limiter.
Positive Factors
Sustained Revenue Growth
Multi-year revenue expansion indicates strong product-market fit and scalable digital lending distribution. Durable top-line growth supports reinvestment into underwriting, tech and marketing, helping the company deepen customer penetration and amortize fixed platform costs over larger volumes.
Negative Factors
Negative Cash Conversion
Persistent negative operating and free cash flow undermines the firm’s ability to self-fund growth or repay obligations. Over months, continued cash outflows increase reliance on external capital, elevating refinancing and liquidity risk if credit markets tighten or funding costs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Multi-year revenue expansion indicates strong product-market fit and scalable digital lending distribution. Durable top-line growth supports reinvestment into underwriting, tech and marketing, helping the company deepen customer penetration and amortize fixed platform costs over larger volumes.
Read all positive factors
Propel Holdings Inc (PRL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$953.22M
Dividend Yield3.68%
Average Volume (3M)207.66K
Price to Earnings (P/E)12.6
Beta (1Y)2.00
Revenue Growth22.39%
EPS Growth-10.18%
CountryCA
Employees668
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.45
Shares Outstanding39,372,845
10 Day Avg. Volume273,213
30 Day Avg. Volume207,664
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)2.72
Price to Sales (P/S)1.18
P/FCF Ratio-38.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$35.47Price Target Upside44.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.14
Revenue Forecast (FY)C$753.36M
Propel Holdings Inc Business Overview & Revenue Model
Company Description
Propel Holdings Inc. (PRL) is a Canadian financial technology company focused on providing online credit solutions to consumers. Through its digital lending platforms, the company facilitates access to personal loans and other credit products, tar...
How the Company Makes Money
Propel primarily makes money by originating and servicing consumer loans through its online platforms and earning interest income and fee-based revenue associated with those credit products. Revenue is generated from (1) interest charged on loans ...
Propel Holdings Inc Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
Propel Holdings reported strong financial performance with record-breaking revenue and growth across multiple regions. However, economic pressures and a slight uptick in delinquencies led to a cautious outlook and revised guidance. While the company remains optimistic about future growth opportunities, particularly in the UK and through the Lending as a Service program, it maintains a prudent stance in the current economic environment.Positive Updates
Record-Breaking Revenue and Growth
Propel Holdings achieved record quarterly revenue of $152.1 million, an increase of 30% from Q3 2024, and record total originations funded of $205 million, up 37% year-over-year. Net income rose by 43% to $15 million.
Negative Updates
Uptick in Delinquencies
There was a modest uptick in delinquencies in the US, reflecting normal seasonal trends and broader macroeconomic pressures.
Read all updates
Q3-2025 Updates
Positive
Negative
Record-Breaking Revenue and Growth
Propel Holdings achieved record quarterly revenue of $152.1 million, an increase of 30% from Q3 2024, and record total originations funded of $205 million, up 37% year-over-year. Net income rose by 43% to $15 million.
Read all positive updates
Company Guidance
In the recent earnings call, Propel Holdings provided guidance indicating a strong performance for the third quarter of 2025. The company achieved record total originations funded of $205 million, marking a 37% increase year-over-year, and reported record revenue of $152.1 million, a 30% rise from Q3 2024. Net income grew by 43% to $15 million, while adjusted net income rose by 16% to $16.2 million. The company observed a modest uptick in delinquencies, particularly in the U.S., prompting targeted underwriting adjustments to maintain credit quality. Propel's U.K. market also showed promising growth, with record monthly loan originations rising 78%, and the company expects further expansion. Despite macroeconomic challenges, Propel's AI-powered platform and disciplined risk management have supported stable credit performance and profitable growth, leading to an 8% increase in the annual dividend to $0.84 per share.Propel Holdings Inc Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 646.73M | 600.13M | 447.87M | 316.70M | 226.73M | 128.88M |
| Gross Profit | 298.13M | 279.74M | 193.52M | 131.99M | 96.41M | 68.11M |
| EBITDA | 120.81M | 124.70M | 68.09M | 42.21M | 23.60M | 10.98M |
| Net Income | 56.96M | 60.56M | 46.38M | 27.78M | 15.13M | 6.56M |
Balance Sheet | ||||||
| Total Assets | 705.43M | 670.56M | 551.01M | 344.26M | 256.68M | 149.50M |
| Cash, Cash Equivalents and Short-Term Investments | 65.72M | 73.81M | 20.50M | 13.75M | 7.66M | 7.24M |
| Total Debt | 338.91M | 338.42M | 274.29M | 201.52M | 151.57M | 50.05M |
| Total Liabilities | 421.41M | 409.86M | 340.89M | 242.74M | 175.04M | 74.17M |
| Stockholders Equity | 284.02M | 260.70M | 210.11M | 101.52M | 81.64M | 75.33M |
Cash Flow | ||||||
| Free Cash Flow | -16.57M | -18.32M | -61.13M | -32.39M | -90.59M | -54.60M |
| Operating Cash Flow | -14.57M | -17.99M | -54.84M | -26.95M | -85.32M | -51.83M |
| Investing Cash Flow | -12.52M | -10.37M | -71.90M | -5.43M | -5.27M | -2.76M |
| Financing Cash Flow | 24.49M | 37.40M | 134.83M | 38.48M | 91.01M | 56.59M |
Propel Holdings Inc Technical Analysis
Positive
24.49
Price Trends
24.97
Positive
23.04
Positive
22.56
Positive
Market Momentum
0.12
Positive
49.35
Neutral
16.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRL, the sentiment is Positive. The current price of 24.49 is below the 20-day moving average (MA) of 25.66, below the 50-day MA of 24.97, and above the 200-day MA of 22.56, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 16.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PRL.
Propel Holdings Inc Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$953.22M | 12.65 | 21.12% | 3.55% | 22.39% | -10.18% | |
68 Neutral | C$689.47M | 31.17 | 16.54% | 1.96% | 3.93% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$561.30M | 11.73 | 9.06% | 8.65% | -10.85% | -5.88% | |
63 Neutral | C$917.40M | 10.67 | 13.08% | 6.53% | 12.78% | 14.21% | |
55 Neutral | C$866.71M | 29.00 | 5.64% | 0.36% | 9.23% | -14.64% | |
48 Neutral | C$665.58M | -2.08 | -26.45% | 11.91% | 5.44% | -222.24% |
* Financial Sector Average
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Propel Holdings Inc Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Propel Posts Record Q2 Results and Lifts Dividend Again
Positive
Aug 5, 2026
Propel Holdings reported record second-quarter results for 2026, highlighted by a 26% year-over-year rise in revenue to $179.6 million and a 24% increase in adjusted EBITDA to $43.7 million. Adjusted net income climbed 29% to $24.8 million, while ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.