Propel Holdings Q2 2026 Results: Revenue Up 26%, Dividend Raised 6%

Q2 2026 Financial Highlights

Propel Holdings Inc. (TSX: PRL) reported financial results for the three months ended June 30, 2026. Revenue increased 26% year-over-year to a record $179.6 million. Adjusted EBITDA rose 24% to $43.7 million, and adjusted net income grew 29% to $24.8 million. Adjusted diluted earnings per share increased 28% to $0.58 (C$0.81). The company achieved an adjusted return on equity of 35% on an annualized basis.

Loans and advances receivable grew 21% to $492.3 million, and ending combined loan and advance balances (CLAB) increased 23% to $639.1 million, both record levels. Total originations funded reached a quarterly record of $243.4 million, up 25% year-over-year. New customer originations grew 34% year-over-year, or 43% including Lending-as-a-Service (LaaS).

Credit Performance and Strategic Initiatives

Credit performance remained stable, with provision for loan losses at 50% of revenue and net charge-offs at 12% of average CLAB, consistent with the prior year. The company attributed this to disciplined underwriting and a healthy credit environment.

LaaS delivered record revenue of $11.1 million, up 150% year-over-year, driven by expansion into new states, new products, and broader distribution channels. Propel UK also achieved record revenue of $17.3 million, up 53% year-over-year. Propel Bank continued to expand its operational capabilities.

Dividend Increase

The board approved a 6% increase to the quarterly dividend, raising it from C$0.24 to C$0.255 per share, effective for Q3 2026. This marks the twelfth consecutive quarterly dividend increase. The company paid a Q2 2026 dividend of C$0.24 per share on June 3, 2026.

What it means for income investors

Propel's consistent dividend increases and strong revenue growth indicate a healthy financial trajectory. The company's focus on expanding its customer base and scaling LaaS may support future earnings and dividend growth, though credit performance remains a key metric to monitor.

Reporting based on: finance.yahoo.com. Figures verified against market data where available.