Propel Q2 2026 Earnings Report

Propel EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.66
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Propel Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $251.89 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Propel Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: After Market Closes
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 8:30AM ET

Propel (TSE:PRL) Holdings Inc is a financial technology company committed to credit inclusion and helping underserved consumers by providing fair, fast, and transparent access to credit. It operates through its two brands: MoneyKey and CreditFresh. The company, through its MoneyKey brand, is a state-licensed direct lender and offers either Installment Loans or Lines of Credit to new customers in several US states. Through its CreditFresh brand, the company operates as a bank servicer that provides marketing, technology, and loan servicing services to unaffiliated, FDIC insured, state-chartered banks in the US (Bank Program). It primarily operates in Canada.

Propel Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Propel delivered record Q2 results, with revenue up 26% year over year to $179.6 million, adjusted EBITDA of $43.7 million, and adjusted net income up 29% to $24.8 million. Ending CLAB increased 23% to $639.1 million.
• Positive Sentiment: Growth was broad-based: new customer originations rose 34% year over year, or 43% including Lending-as-a-Service (LaaS); LaaS revenue jumped 150% to $11.1 million, while Propel UK revenue increased 53% to $17.3 million.
• Positive Sentiment: Credit performance remained stable despite portfolio expansion, with provisions at 50% of revenue and net charge-offs at 12% of average CLAB. Management said underwriting is being tightened heading into the seasonally riskier third quarter.
• Positive Sentiment: Management expects growth to accelerate in Q3 and Q4, supported by additional U.S. states, products such as FreshLine, new marketing channels, continued MoneyKey Bank Service Program expansion, and strong institutional demand for LaaS forward-flow arrangements.
• Negative Sentiment: Acquisition and data expenses increased to 14.5% of revenue from 13% a year earlier, and management expects margins in the second half of 2026 to be lower than in the first half due to seasonality and ongoing investments, although better than the second half of 2025.

Presentation

[Operator]

Good morning, everyone. Welcome to Propel Holdings second quarter 2026 financial results conference call. As a reminder, this conference call is being recorded on August 6th, 2026. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for research analysts to queue up for questions. Now I will turn the call over to Devon Ghelani of Propel's Vice President, Capital Markets and Investor Relations. Please go ahead, Devon.

[Devon Ghelani, VP of Capital Markets and Investor Relations at Propel Holdings]

Thank you, operator. Good morning, everyone, and thank you for joining us today. Propel's second quarter 2026 financial results were released yesterday after market close. The press release, financial statements, and MD&A are available on SEDAR+, as well as on the company's website, propelholdings.com. Before we begin, I would like to remind all participants that our statements and comments today may include forward-looking statements within the meaning of applicable securities laws. The risks and considerations regarding forward-looking statements can be found in our Q2 2026 MD&A and annual information form for the year ending December 31st, 2025, both of which are available on SEDAR+. Additionally, during the call, we may refer to non-IFRS measures.

[Devon Ghelani, VP of Capital Markets and Investor Relations at Propel Holdings]

Participants are advised to review the section entitled non-IFRS financial measures and industry metrics of the company's Q2 2026 MD&A for definitions of our non-IFRS measures and the reconciliation of these measures to the most comparable IFRS measure. Lastly, all dollar amounts referenced during the call are in US dollars unless otherwise noted. I am joined on the call today by Clive Kinross, Founder and Chief Executive Officer, and Sheldon Saidakovsky, Founder and Chief Financial Officer. Clive will provide an overview of our Q2 results and observations on our consumer segment and overall economic environment before Sheldon covers our financials in more detail. Before we open the call to questions, Clive will provide an update on Propel's growth strategy and outlook for the remainder of 2026. With that, I'll pass the call over to Clive.

[Clive Kinross, Founder and CEO at Propel Holdings]

Thank you, Devon, and welcome everyone to our second quarter conference call. We delivered another record quarter building on the strong momentum we established at the beginning of the year. Importantly, this quarter demonstrated that the strategic investments we've made over the past several quarters to expand our platform and serve more consumers across the credit spectrum are translating into measurable results. We expanded into new states, launched new products, and broadened our distribution channels, enabling us to reach more consumers than ever before. Supported by strong consumer demand, new customer originations increased by 34% year-over-year. If including Lending-as-a-Service, new customer originations increased by 43%. The growth contributed to record ending CLAB of $639 million, up 23% from a year ago, and record revenue of $179.6 million, an increase of 26%.

[Clive Kinross, Founder and CEO at Propel Holdings]

Our focus on disciplined execution resulted in a record quarterly adjusted EBITDA of $43.7 million and record quarterly adjusted net income of $24.8 million. Importantly, we achieved this growth while maintaining another quarter of stable credit performance. Provision for loan losses and other liabilities represented 50% of revenue, reflecting both the strength of our AI-powered underwriting platform and the resiliency of the consumers we serve. Before turning the call over to Sheldon, I'd like to spend a few minutes discussing those consumers and what we're seeing across the broader economy. We often use the term underserved consumer, but today that group represents a much larger segment of the population than it did just a few years ago. As we've discussed on previous calls, we continue to see a K-shaped economy emerge across our markets, with the middle of the credit spectrum shrinking.

[Clive Kinross, Founder and CEO at Propel Holdings]

While many consumers have benefited from rising asset prices and migrated into the super-prime category, others, despite remaining employed and maintaining reasonable repayment histories, are finding it increasingly difficult to access traditional sources of credit. According to TransUnion, since 2022, the share of subprime consumers has increased by approximately 7%, rising from 13.8%-14.8% of the population. The lending market has changed for them. Many large financial institutions have tightened underwriting standards, leaving a growing number of consumers without access to the credit products they have historically relied upon. At the same time, demand for credit remains elevated as households continue to manage the impact of higher everyday living costs. In fact, the Federal Reserve recently reported that credit rejection rates reached 33% in 2025, a highest level in a decade.

[Clive Kinross, Founder and CEO at Propel Holdings]

Furtiermore, tn Q2 2026, the Federal Reserve Bank of New York found that consumer demand for credit reached its highest level since October 2021. We see this dynamic in our own business with strong demand and stable credit performance. This is why our mission remains so relevant today. We believe our technology and AI-powered underwriting platform can responsibly expand access to credit by helping us better understand consumers who have been overlooked by traditional underwriting models. At the core of our business is a simple belief. These consumers are often misunderstood. They are resilient, they are employed, they are actively managing their finances, and they're taking practical steps to navigate the macroeconomic environment. Our own data reinforces this. In a recent survey of Propel and our bank partners customers, the majority of respondents told us they expect to spend more on essentials like gas and groceries this summer.

[Clive Kinross, Founder and CEO at Propel Holdings]

Rather than falling behind, the majority said they plan to reduce spending elsewhere. Looking more broadly across our markets, we continue to see an economic backdrop that is resilient. In the United States, unemployment remains low at 4.2%, with employment remaining strong across many of the industries where our customers work. Furthermore, our customers continue to benefit from steady wage gains and consumer spending remains strong. In the United Kingdom, inflation has moderated towards the Bank of England's targets, while unemployment has remained relatively stable. Canada, which represents approximately 2% of our business, continues to experience a softer labor market than the United States. However, inflation remains relatively low, and despite ongoing trade uncertainty, the Canadian economy has remained more durable than many had anticipated. Overall, across the markets in which we operate, we continue to see healthy employment, moderating inflation, and resilient consumer demands.

[Clive Kinross, Founder and CEO at Propel Holdings]

This is an environment we know well, and one in which our AI-powered underwriting platform has consistently performed well. To serve the increasing number of underserved consumers and strengthen our business, we spent the past several quarters investing in initiatives that expand both our addressable markets and our competitive advantages. These investments are increasingly contributing to our results. Lending-as-a-Service generated record revenue of $11.1 million, an increase of 150% year-over-year. Propel UK continued its strong performance, with revenue increasing 53% year-over-year in Q2 2026 to a record $17.3 million. Propel Bank continued expanding its operational capabilities, supporting lending and servicing activities in the U.S. while enhancing long-term strategic flexibility. Overall, we are proud of both our second quarter performance and the momentum we've built through the first half of the year.

[Clive Kinross, Founder and CEO at Propel Holdings]

Reflecting this continued performance and strong financial position, our board approved another increase to our quarterly dividend to CAD 1.02 per share on an annualized basis, representing a 6% increase and our 12th consecutive quarterly increase. I will speak more about our growth plans and the outlook for the rest of 2026, but first, I will pass it all over to Sheldon.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Thank you, Clive, good morning, everyone. We continue to build on the strong momentum established earlier this year. Strong consumer demand, together with the continued expansion of our platform, supported another quarter of record results. Against this backdrop, total originations funded increased by 25% year-over-year to $243.4 million, representing another quarterly record. New customer origination growth was strong, increasing by approximately 34% year-over-year to a record $111 million. If including Lending-as-a-Service, new customer originations increased by 43% year-over-year. The MoneyKey Bank Service Program in particular, continued to experience significant growth during the quarter, with ending CLAB increasing by approximately 79% year-over-year and by 29% sequentially over Q1. New customer originations within this program increased by approximately 56% sequentially from Q1, driven by continued geographic expansion, the ongoing transition from legacy products, and the addition of new marketing partners and channels.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Lending-as-a-Service also delivered another record quarter, with revenue increasing approximately 150% year-over-year to a record $11.1 million. In the U.K., QuidMarket continued to grow significantly, delivering another quarter of record originations and revenue, with revenue increasing in excess of 50% year-over-year as the business further expanded its market presence. The strong performance across these businesses drove ending CLAB to a record $639.1 million, an increase of 23% year-over-year, and supported record quarterly revenue of $179.6 million, an increase of 26% year-over-year. The annualized revenue yield increased to 117% in Q2 from 114% in the prior year period. The increase primarily reflects the strong growth from new customer originations, the expansion of Lending-as-a-Service, and the higher contribution from higher-yielding programs, including QuidMarket and the MoneyKey Bank Service Program.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Overall, we are pleased with the continued execution of our growth strategy during the quarter and the expansion of our platform across products, geographies, and customer segments. Turning to provisioning and charge-offs, credit performance remained stable during the second quarter and was consistent with our expectations. Provision for loan losses and other liabilities represented 50% of revenue in Q2 2026, while net charge-offs as a percentage of average CLAB was 12%, both consistent with the prior year period, reflecting the strength of our AI-powered underwriting platform, disciplined approach, consumer resiliency, and continued strong portfolio performance. Notably, we achieved this performance while delivering overall record originations and growing ending CLAB by 23% year-over-year, demonstrating our ability to successfully balance significant growth with prudent risk management. Overall, credit performance was in line with our expectations and remains in line as we move forward through Q3.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Turning to profitability, our net income increased by 7% year-over-year to $16.2 million, while our adjusted net income increased 29% year-over-year to a record $24.8 million. Diluted EPS increased by 7% to $0.38, while adjusted diluted EPS increased 28% to a record $ 0.58 per diluted share. Adjusted return on equity improved to 35% on an annualized basis compared to 32% in the prior year period, reflecting another quarter of strong earnings growth and efficient capital deployment. As discussed earlier, the significant growth of the MoneyKey Bank Service Program over Q1 resulted in a larger non-cash adjustment to net income during the quarter. This adjustment was driven by the increase in the bank service program liability relating to the increase in the off-balance sheet receivables associated with this program.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

The growth in the other programs and the corresponding increase in the Stage 1 expected credit loss allowance also contributed to the higher adjustment to net income during the quarter. As a reminder, we believe that these adjustments, and consequently our non-IFRS metrics, provide a better representation of the portfolio's performance, particularly in a period of higher growth. Turning to operating expenses, we continued to invest in a number of strategic initiatives designed to support the company's long-term growth, including the ongoing build-out and expanded operations of Propel Bank, further scaling of our Lending-as-a-Service platform, and ongoing investment in AI-powered capabilities, technology infrastructure, and customer acquisition initiatives. At the same time, we realized operating leverage across several areas of the business.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Salaries, wages, and benefits declined to approximately 8% of revenue from 8.4% in the prior year period, while G&A declined to approximately 2% of revenue from 2.5%, reflecting the scalability of our platform as we continue to grow the business. Acquisition and data expense increased to 14.5% of revenue during the quarter from 13% in the prior year period. Cost per funded origination increased to $ 0.11 from $0.10, while cost per new customer-funded origination increased to $ 0.24 from $ 0.22. As we've noted in the prior quarters, the year-over-year increases reflect a continued investment in expanding and diversifying our customer acquisition platform through approximately 20 new marketing partners, together with broader investment across diversified marketing channels. The ongoing growth of QuidMarket contributed to the increase as we continue investing to expand its customer base and market position.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Underwriting and data costs per funded loan also contributed to this increase as application volumes grew even more significantly than originations, reflecting the disciplined approach maintained with our bank partners. Effectively, we and our bank partners are evaluating more applications relative to each funded origination. Importantly, both cost per funded origination and cost per new customer-funded origination improved sequentially from the first quarter of 2026, reflecting early benefits from our expanding marketing platform and continued optimization of our acquisition strategy. We believe these investments support long-term growth while maintaining disciplined underwriting and stable credit performance. Processing technology and program servicing expense increased primarily due to the ongoing scaling of our Lending-as-a-Service platform, which as we mentioned, grew by 150% year-over-year. As a reminder, these expenses include customer acquisition and servicing costs associated with our Lending-as-a-Service programs.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Notably, Lending-as-a-Service costs declined to 62% of Lending-as-a-Service revenue from 76% in the prior year, demonstrating improving unit economics and operating leverage as the program scales. Our overall cost of debt also continued to improve, declining to 10.2% from 11.4% in the prior year period, reflecting enhanced credit facility pricing together with lower benchmark interest rates. Lower funding costs further enhance the earnings power of the business while providing additional flexibility to support future growth initiatives. Overall, we delivered record-adjusted net income and adjusted diluted EPS while continuing to invest in strategic initiatives across the business. Strong profitability was supported by record revenue, stable credit performance, and disciplined execution. Our investments are delivering results and will continue delivering attractive long-term revenue and earnings growth, and returns on equity.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Turning to Propel's capitalization, we continue to maintain a strong financial position, supporting the ongoing growth of our lending programs and strategic initiatives. At quarter end, we had approximately $97 million of undrawn credit commitment capacity across our credit facilities with a debt-to-equity ratio of 1.2x, providing significant liquidity and financial flexibility. Even though ending CLAB grew by approximately $50 million since year-end, our outstanding debt balance remained essentially unchanged at $332 million. This reflects the strong earnings and cash flow profile of the business, which enabled us to fund meaningful portfolio growth, an increase in quarterly dividend, and continued investment in our strategic initiatives without increasing our outstanding debt. We believe our strong financial position, growing earnings profile, and disciplined capital management position us well to continue funding future growth while delivering attractive long-term returns for shareholders. I'll now turn the call back to Clive.

[Clive Kinross, Founder and CEO at Propel Holdings]

Thank you, Sheldon. As we look ahead to the second half of 2026, we continue to see strong momentum across the business. Demand remains strong, credit performance remains in line with our expectations, and the investments we've made are translating into measurable results. In the U.S., we continue to expand our addressable markets by introducing new products like FreshLine, entering additional states, and adding new marketing and distribution partners. As our business grows, our marketing strategy is evolving alongside it. In addition to expanding our partner network, we're investing further up the marketing funnel through connected television, online video, and AI-optimized digital content to build awareness, strengthen our brand, and support customer acquisition. We're equally encouraged by the momentum we're seeing in Lending-as-a-Service and expect strong growth going forward, supported by committed long-term capital partners.

[Clive Kinross, Founder and CEO at Propel Holdings]

As the program continues to scale, Lending-as-a-Service is becoming an increasingly meaningful contributor to Propel's revenue and profitability while expanding our capital-light fee-based business segment, allowing us to serve more consumers and generate attractive recurring revenue. Internationally, almost two years since the acquisition of QuidMarket, we continue to grow the business while leveraging Propel's expertise and infrastructure. Growth has been strong and expected to continue. Supporting many of these initiatives is a continued sorry, this is a difficult word. It was difficult in the last quarter as well. Operationalization of Propel Bank. I'm pretty sure I said that wrong, but you know what I mean. Which provides long-term strategic flexibility as we scale.

[Clive Kinross, Founder and CEO at Propel Holdings]

A banking license expands our capabilities and creates additional options for growth over time. As with every aspect of our business, that flexibility is supported by a strong commitment to regulatory compliance and disciplined risk management. Finally, I'd like to touch on AI. We've been an early investor in artificial intelligence, developing our AI-powered underwriting platform in 2015, well before AI became central to most business conversations. Today, we're applying the same philosophy across the entire organization. For example, AI supports our customer service representatives during live customer interactions, helping to drive efficiency and enable agents to serve more consumers in a day, with loans originated per customer service representative reaching an all-time high this quarter, up roughly 30% year-over-year.

[Clive Kinross, Founder and CEO at Propel Holdings]

Our technology and engineering teams are also using AI to enhance Propel's proprietary platform more efficiently, with AI contributing to almost 50% of net new code written during the quarter. The next phase of our AI strategy is focused on automating core operational, technology, and finance processes. This work is already underway. Ultimately, our objective is simple, to ensure every estimate we make in AI translates into greater efficiency and stronger execution and support long-term profitable growth. Although these initiatives span different parts of our business, they are all designed to achieve the same objectives, expanding our platform, increasing our competitive advantages, and creating long-term shareholder value. In September, Propel will celebrate its 15th anniversary.

[Clive Kinross, Founder and CEO at Propel Holdings]

Reaching that milestone reflects 15 years of disciplined execution. Continuous innovation and the ability to successfully navigate the multiple economic cycles where we have grown every year since our inception, including a revenue and adjusted EPS CAGR of 43% and 64%, respectively, since 2019. It's also a testament to the extraordinary team we have built. The team's dedication, tenacity, and relentless focus on execution have transformed Propel from a single-product fintech company into the global fintech platform we are today. While the business has evolved significantly, our mission has remained constant: expanding access to credit while delivering sustainable, profitable growth for our shareholders.

[Clive Kinross, Founder and CEO at Propel Holdings]

The opportunities in front of us today are greater than at any point in our history. More consumers than ever are locked out of the credit market, and we have built the platforms to meet that need. With the strength of our platform, the resilience of the consumers we serve, and the exceptional team we've built, I believe Propel is exceptionally well-positioned for the quarters and years ahead. With that, operator, you may now open the line for questions.

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two. Your first question comes from the line of Matthew Lee of Canaccord. Please go ahead.

[Matthew Lee, Analyst at Canaccord]

Hi, guys. Thanks for my question. Really nice quarter here. Just a couple items I want to touch on. Maybe we can start with this geographical expansion that you talked about. Can you give some of that opportunity in terms of what states you're going into, the size of the addressable market, and maybe just context it with where was your addressable market last year versus now, and maybe where do you expect it to be in a couple of years as Propel Bank ramps? Thanks.

[Clive Kinross, Founder and CEO at Propel Holdings]

Yeah. Matt, first of all, thank you so much for the kind words. We're also very pleased with the quarter. I think it was an incredibly strong quarter, and as I mentioned in my prepared remarks, we've really gone from a one-product company in one market to now a global fintech powerhouse operating in the U.S., in the U.K., and Canada. Our on-balance sheet program, our off-balance sheet program, Lending-as-a-Service, all of that has created lots of different growth drivers. We're seeing that starting to really accelerate, and will continue to accelerate over the course of the year and is also diversifying not only the growth drivers, but also the risk profile across the business. As you mentioned, the additional geographies are also furthering that growth.

[Clive Kinross, Founder and CEO at Propel Holdings]

We're in states today as a combination of our partnership with Column Bank out of California, with the launch of Propel Bank. It's allowed us to operate in new jurisdictions that even 12 months ago we weren't operating in, and that geographic expansion is also fueling lots of the growth. Expect more states to be added as we continue to roll out the bank service program, and as we also continue to expand Propel Bank's servicing across the platform. All of which is to say our addressable market is increasing for two reasons. Number one, as I mentioned, subprime segment has increased 7% since 2022.

[Clive Kinross, Founder and CEO at Propel Holdings]

That alone on a macro perspective is increasing the market, we're expanding into new geographies and new products, which is why you saw roughly 43% new customer growth, including Lending-as-a-Service, for the most recent quarter, dramatically outperforming the natural growth in the market. We expect, if anything, growth to accelerate in Q3 and Q4 relative to the first half of the year.

[Matthew Lee, Analyst at Canaccord]

Yeah. That's really helpful. Then maybe on the cost side, I'm just trying to think about how margins should improve as the business continues to grow. Can you just talk about maybe how much your current costs relate to the ramping of Propel Bank and Lending-as-a-Service versus what you consider to be kind of core operating expenses? Just to get an idea of how much you think about margins as the business scales.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Yeah. Hey, Matt. Thanks a lot for the question and for the kind words. As you referenced, obviously, there's a lot of initiatives that we've been rolling out and investing in over the last, I would say, two, three quarters that are actually paying off quite a lot right now. We started saying back in Q3 last year that we started investing deliberately in expanding our acquisition channels. You started to see the uptick in our acquisition costs in Q4, continued into Q1. I will note that, as I said in my prepared remarks, that our acquisition costs per new customer dollar funded actually ticked down in Q2 from Q1 sequentially. We're seeing some of that benefit already, even on the cost side.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Most importantly, those investments are generating all this significant growth and the increase in the application volume that's driving the sizable growth that you're seeing not only in Q1, now in Q2 as well, that's frankly outpacing expectations. Those investments are paying off. As Clive said, we're making deliberate investments in rolling out Propel Bank, which is right on schedule, and it's helping to fuel the geographic expansion across the U.S. and product expansion ultimately as well. The relationship with Column Bank that we invested in is leading to a lot of growth on the Lending-as-a-Service side and into new states. All of these investments are starting really to pay off.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

I think from a margin, when you really boil it down from a margin perspective, as you know, we have a seasonal business, I think expect the margins in the second half of the year to be a little bit lower than what you saw in the first half of the year this year. With that said, they will be better than what we saw in the second half of last year. As you may recall, we slowed down growth as a result of several factors last year in Q3. Some additional upticks in delinquency that we saw back then, and coupled with starting to make the investments that I just spoke about compressed the margins. Absolutely expect margin expansion in the second half of this year relative to last year.

[Matthew Lee, Analyst at Canaccord]

That's great color, guys. Congrats on the quarter and again, congrats on the 15 years of growth.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Thanks so much, Matt. Thank you.

[Operator]

Your next question comes from the line of Rob Goff of Ventum. Your line is now open.

[Rob Goff, Analyst at Ventum]

Good morning. Let me echo Matt's comments in terms of congratulations on the quarter and the 15 years behind it. Very well done. It's commendable.

[Clive Kinross, Founder and CEO at Propel Holdings]

Thank you so much, Rob. Really appreciate it. Time flies, man. It's amazing it's been 15 years, and I was reflecting yesterday, amazing it's been five years, almost five years since we've been a public company. I think this is the 20th time we're doing this.

[Rob Goff, Analyst at Ventum]

I thought you guys were both teenagers when you started this, right? Sorry, bad joke. More seriously, can you discuss the pacing and the evolution of the MoneyKey direct-to-bank services? How do you see the states transitioning across the year? Where you have transitioned, what have you seen in terms of the impact on loan growth, yield, COA, and quality of credit?

[Clive Kinross, Founder and CEO at Propel Holdings]

Yeah. It's a great question. Just to take a step back over here, transitioning from the MoneyKey states to the MoneyKey Bank Service Program. The MoneyKey states are the legacy states that we started all the way back, going back to our inception. To a large degree, those were some of the states where we weren't seeing a lot of growth. They were a smaller part of the business, and frankly, they weren't getting the TLC that they otherwise might have gotten if they'd been a larger share of our business. What we consciously decided to do as a result was transition them across to the MoneyKey Bank Service Program, where ultimately we have a lot more distribution channels, marketing partners, and where there's a lot more focus from a risk perspective.

[Clive Kinross, Founder and CEO at Propel Holdings]

That has turned out to be obviously a really good move, not only from our perspective, but also from the many, many more consumers that we're able to now serve as a result. The impact has been twofold. First of all, on aggregate, we've grown the volumes in those states close to 2x across the board. Some states a little bit more than that, some states a little bit less than that. In most states, you're seeing significant growth, and obviously that's one of the things that's really propelling the growth of the MoneyKey Bank Service Program. At the same time, because it's getting even more attention by us and our bank partner there as well, it's getting access to what I would call even better enhanced risk models.

[Clive Kinross, Founder and CEO at Propel Holdings]

The dramatic acceleration you're seeing on the demand side over there is leading to even better relative credit performance than otherwise would've been the case. As you know, Rob, that's at its early stages of transition. In fact, there's a couple more states still to transition across. We expect, if anything, that to fuel more growth on a go-forward basis. At the same time, the other thing fueling the MoneyKey Bank Service Program is the addition of new states that we're in today that we weren't in as recently even as 12 months ago. That's fueling tremendous growth on top of the transition of MoneyKey to the MoneyKey Bank Service Program.

[Clive Kinross, Founder and CEO at Propel Holdings]

If anything, expect that also to continue to accelerate and new states to be added to that program as well on a go-forward basis. We feel really good about our ability to continue to grow that program on a go-forward basis, and it's one of the reasons that I'm confident in saying that we expect the growth of the business to accelerate in Q3 and even further in Q4 of this year relative to last.

[Rob Goff, Analyst at Ventum]

Thank you. Very good. If I could have a follow-up for Sheldon. You had mentioned the strength in applications. Can you talk to the growth you were seeing in applications or inbounds and where your current screening parameters are?

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Hey, Rob. Thanks for the question. We're looking at in excess of 100,000 applications every single day right now. If you follow what we've been saying and reporting, that's been growing quite significantly month-over-month, quarter-over-quarter. It's getting to a very high rate over here as we continue to expand the marketing channels, enter new states, and just overall enhance our existing programs and new products, et cetera. We're benefiting a lot from the increases in application volume, and the investments are absolutely paying off on the marketing side. What that enables us to do, Rob, as we've talked about, right, we're kind of opening up the top of the funnel. We're seeing a lot more applications. Because of that, we can originate more while keeping the same prudent underwriting posture.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

If you kind of triangulate that, if we're seeing a lot more application volumes, maintaining kind of the same risk parameters, our acceptance rate, all else being equal, actually comes down a little bit. If you look at where we are today, our acceptance rate is probably in the 6%-7% range, which is not too dissimilar from what we saw in Q1, probably ticked down slightly. Week-over-week, month-over-month as we're expanding across these different programs, we're seeing the application volume increase. That's why right now we're not giving the specific number on the application volume and actually saying it's well in excess of 100,000 a day right now.

[Clive Kinross, Founder and CEO at Propel Holdings]

Let me just layer onto that a little bit. We actually spent quite a bit of time discussing where we should position that number and ultimately said we're going to go with in excess of 100,000 applications a day. Rob, if I were to take a step back and say, what's driving such healthy demand? I mentioned it in my prepared remarks, but it's worthwhile mentioning again because the fundamentals of what's driving this growth in our industry with stable credit performance, I think are set in for certainly the medium term over here, if not the long term. As I mentioned, the subprime segment of the market in this K-shaped economy has grown by about 7% since 2022, which is significant growth in this otherwise stable economy from 13.7%-14.7%. That's one of the tailwinds.

[Clive Kinross, Founder and CEO at Propel Holdings]

We're capitalizing on that even more by adding more products and more geography. That's number one. Number two is you saw the strongest rejection rates last year in 2025, I think over a decade. That's what the Fed came out with in 2025. We've been expressing that on calls as well, that there's tightening ahead of us. I think those two data points go hand in hand. They're not inconsistent with one another. Finally, in Q2 alone, I think we saw the strongest demand from a credit perspective. The New York Fed came up with that data point since Q3 of 2021. All of that is fueling incredibly strong demand across the board with stable credit performance.

[Clive Kinross, Founder and CEO at Propel Holdings]

I think yesterday, Bank of America came out and said, not only do we all know the unemployment rate is really low, they came out yesterday and said that income levels of what I would call generally lower-income consumers has actually risen faster than the general population. All of those dynamics are leaning to strong demand, stable credit performance. Because there's such strong demand, if anything, we and our bank partners can be really selective with the loans that we originate while fueling tremendous growth as well as stable credit performance.

[Clive Kinross, Founder and CEO at Propel Holdings]

If anything, as we're heading to Q3, which typically has higher delinquencies, say than Q2 and Q1, our and our bank partners' orientation has been to tighten that underwriting more so, let's say, than Q1 and Q2. The growth that you're seeing heading into Q3 and continuing into Q3 is being achieved because of those variables and from our personal perspective, a tighter underwriting posture.

[Rob Goff, Analyst at Ventum]

Very good. Thank you very much.

[Operator]

Your next question comes from the line of Suthan Sukumar of Stifel. Please go ahead.

[Suthan Sukumar, Analyst at Stifel]

Good morning, gents, congrats on a very solid earnings print. For my first question, I want to touch on revenue yields. Obviously, an impressive lift both sequentially year-over-year. Is this reflecting really more near-term benefits, which we should expect to normalize? Or is this more reflective of more of a longer-term structural improvement given the evolving mix of the business?

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Thanks for the question, Suthan. This is something that we've been messaging for the last couple of quarters. It's a result of a number of different factors. Number one, we're doing more new customer originations now than we were doing previously. You're seeing that our new customer proportion of total originations has increased. When we're originating more new customers, they generally speaking, have higher yields. Lending-as-a-Service is growing significantly and now becoming quite meaningful. That contributes to the higher revenue yield. Our MoneyKey Bank Service Program serves a higher yielding segment of consumers, so that's driving the yield up. QuidMarket also, which is continuing to demonstrate outpaced growth has higher yields as well. All of those factors together are driving the yield up. I think last quarter I said that. Expect yields to be in excess of 115%.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

The fact that we hit 117%, frankly, we beat our expectations, that's in large part, obviously, to the growth and all the other factors that I just mentioned. This will continue, Suthan, as these programs continue to show outpaced growth on a go-forward basis. I think Clive mentioned, expect accelerated growth in Lending-as-a-Service going forward in the coming quarters, accelerated growth on the QuidMarket UK side.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Given the way risk is performing right now and the way the portfolio's composed, we continue to expect to generate a higher proportion of new customer origination. If you put all of that together, I would expect revenue yields to be somewhere between 115%-120% for the remainder of the year. I'm probably being a bit conservative on the low-end side, given we're at 117% right now. I expect that to tick up a little bit as we go forward.

[Suthan Sukumar, Analyst at Stifel]

Great. Perfect. Thanks for that color. For my second question, I wanted to touch on debt capacity. What we're seeing here is a sustaining pace of strong originations activity. You guys are increasing your dividend consistently. From a balance sheet perspective, do you guys have sufficient funding room to support continued loan book growth?

[Clive Kinross, Founder and CEO at Propel Holdings]

Yeah, the answer to the question is absolutely. You touched on a couple of really key points over there. I don't think they're lost on the investor community. I think they're actually quite well understood, but let me just repeat that. The debt balance since the end of the year has actually not grown, notwithstanding the significant growth we've seen in our CLAB, the significant growth we've seen in our revenues, and an ever-increasing dividend. We actually haven't increased our debt balance. If anything, our liquidity has improved since then. We've already mentioned we expect the growth, top and bottom line, certainly relative to 2025, to accelerate, relative to the impressive growth we've already seen year-to-date. We could do all of that, and largely maintain the debt balance where it is.

[Clive Kinross, Founder and CEO at Propel Holdings]

From a liquidity perspective, we have more than enough liquidity, including growing liquidity actually, that might be helpful in the event that there's any M&A opportunities on a go-forward basis. Obviously, I think we've got just shy of $100 million of liquidity at the moment. From that perspective, there certainly is a cap if we were to do an acquisition on how large that acquisition could be without needing some form of additional liquidity. That's the only scenario that we currently contemplate where we would potentially need additional liquidity.

[Suthan Sukumar, Analyst at Stifel]

Okay, great. Thank you for that color. If I could just squeeze in one more, guys, on Lending-as-a-Service. Can you speak to the level of demand interest from investors from a forward flow perspective? You're seeing strong growth here, and you guys have telegraphed a 10% target for Lending-as-a-Service revenues this year. Is there room to potentially accelerate that given some of this momentum that you're seeing here?

[Clive Kinross, Founder and CEO at Propel Holdings]

Let me start off by saying that, yeah, we continue to expect Lending-as-a-Service to be approaching 10% of our revenues by the end of the year. Let me also emphasize that the overall growth of our business is going to accelerate between now and the end of the year. I've made that point a couple of times on this call. When we say that we expect it to start approaching 10% by the end of the year, that's of a growing business. The 150% Lending-as-a-Service growth that we saw in Q2, as impressive as that is, we expect that growth to also accelerate on a go-forward basis. I know we've made that point a few times. To your question, that's largely being fueled by the blue-chip quality of the institutional investors who are now part of that forward flow purchasing arrangement.

[Clive Kinross, Founder and CEO at Propel Holdings]

They're coming on board enthusiastically because they're getting the returns that we represented to them they would get if they did this. As you can appreciate, in the earlier days, and I think we're certainly still in our earlier days in this initiative, but even earlier days, what we were telling investors they could expect over here, they trusted us based on our track record and credibility, but they didn't have the data themselves. They now have the data themselves. They're now seeing what the returns are. On the back of that, there's really strong demand, not only from our existing cohort of investors, but from new investors as well who'd like to get on board and be part of our forward flow program. The constraints which we had previously of onboarding new capital partners is no longer there.

[Clive Kinross, Founder and CEO at Propel Holdings]

We feel like we now have really solid long-term investors from that perspective, which makes it much easier for us to forecast what that growth will be on a go-forward basis. If you said to me, why do we expect the growth to accelerate? It's not necessarily because of new capital partners, because we've got more than enough as far as that's concerned. The reason it's going to accelerate is we're opening up new marketing channels, number one. Number two, we're opening up in additional states. We're opening up with additional products as well. Finally, not only are we doing all of that, which will fuel the growth, we're just getting better as a business in terms of optimizing that particular segment of the business.

[Clive Kinross, Founder and CEO at Propel Holdings]

Not only are we doing all of that to fuel the growth of the business, but at the same time, as we've already demonstrated, there has been margin expansion in that business, and we expect there to be even more margin expansion on a go-forward basis. I could tell you that, I looked at the numbers yesterday for Lending-as-a-Service in July, and I was really pleased to see the continued growth that we demonstrated in Q2. If anything, as I've already said, accelerating into Q3.

[Suthan Sukumar, Analyst at Stifel]

Okay, great. That's an excellent update, guys. Congrats again on the quarter, and thanks for taking my questions. I'll pass the line.

[Clive Kinross, Founder and CEO at Propel Holdings]

Thanks so much.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Thanks, Suthan.

[Clive Kinross, Founder and CEO at Propel Holdings]

I appreciate it.

[Operator]

Your next question comes from the line of Stephen Boland of Raymond James. Please go ahead.

[Stephen Boland, Analyst at Raymond James]

Thanks, guys. Good morning. When I look at QuidMarket and Lending-as-a-Service through your, I guess, more recent product expansions, approaching by the end of the year, maybe 20% of your business, outside of the core lending businesses that you had. I'm not sure if there's a right word here, but a concentration, anything that you're fine for it to go to 20%, to go to 25%, to 30%? There's a point here. Clive, you mentioned a number of things, new investors wanting to come in, forward flow expansion, more states. These two businesses seem, because of their growth and they may end up dominating. Not dominating, but becoming very significant part of your businesses over the next two years. Is that a fair comment?

[Clive Kinross, Founder and CEO at Propel Holdings]

It's a very fair comment. I think it's a very fair comment. I hadn't thought about some of that the way you framed it up, that on a combined basis, those will be about 20% of our business, by the end of the year. I'm trying to do the quick math in my head. It might even exceed 20% of our business. I think 20% is a good way to think about it. These are businesses that didn't even exist from a Propel perspective a couple of years ago, which goes back to my earlier comments about us building a real global platform over here, with more growth drivers for the business on the one hand, and on the other hand, diversification of credit risk as we expand into more markets.

[Clive Kinross, Founder and CEO at Propel Holdings]

Steve, I'll tell you how we think about it. We have got an exceptional team over here at Propel. 15 years later, the four co-founders are all intact. We've got a 20+ person executive team over here who I could tell you is more motivated and more focused than ever. Obviously the support of probably another 650 other incredible team members across Canada, Puerto Rico, and the U.K. What we're doing constantly is trying to maximize the growth, taking into account risk of all of the different business units. We're watering all of them because I've learned what you water will grow. If you said to me, do we have some kind of artificial line in the sand as to how big we want any of those business units to be, I think the answer to that question is no, we don't.

[Clive Kinross, Founder and CEO at Propel Holdings]

We all want them to be as big and large as they possibly can be and to serve as many consumers as we can. The great news about where we are is we're still as impressive as the growth has been. We're still a tiny portion of the overall market in all of the markets that we operate. You're right to point out that two of our nation businesses, Lending-as-a-Service as well as Propel UK, have got even faster growth in other areas of the business. Rest assured, all areas of our business has got significant growth lined up ahead. You will continue to see that on a go-forward basis.

[Stephen Boland, Analyst at Raymond James]

Okay. I don't want to beat this yield discussion to death because it's very optimistic on the new products like Lending-as-a-Service and QuidMarket. You did mention some graduation. The 115 to the 120, again for 2026, that seems pretty achievable. Again, you have these businesses, the high margin ones growing, what stops this from going north of 120 next year or getting to 125? Especially with QuidMarket. I don't know what the cap on Lending-as-a-Service, I can't remember, certainly these two businesses may be your highest margin, I'm guessing. What's stopping the 2027 number from getting well over 120?

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

It could, Steve. At the rate of growth that we're going at and the higher proportion of the overall revenues that these programs are representing and growing into. Just keep in mind also that this quarter actually, Q2, our new customer proportion, which carries higher yields was its highest proportion since Q4 of 2024.

[Stephen Boland, Analyst at Raymond James]

Okay.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

We're doing a lot more new customer originations right now Those ultimately when they start at the top, we have a very important component of our portfolios, our graduation. Those consumers will ultimately start graduating, and the ones in our existing portfolio will continue to graduate to better and better products. Ultimately, our goal as we've specified across all of our programs, is to provide the right risk-adjusted priced product to each and every underserved consumer.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

That's the ultimate goal, to be present across the underserved credit spectrum. Expect additional risk-based pricing. When you look at risk-based pricing and graduation, that's kind of the counter to all of these higher yielding pieces. We're not ready to give guidance yet for 2027. It certainly can exceed 120. I'll kind of put it that way. As we get closer to year-end, we'll put out more concrete guidance on that. We're very excited. It's a great development and obviously generating both growth and margin expansion as we move forward.

[Stephen Boland, Analyst at Raymond James]

Maybe I get a-

[Clive Kinross, Founder and CEO at Propel Holdings]

Steve, if I could just add something to what Sheldon said, we made a conscious decision that we're going to just let one person speak on our side over here, only layer on when it's an important point. I do want to just tell you what's going on kind of beneath the surface over here. When we started in this industry, if you were an underbanked or underserved consumer, you qualified for one product, and that was the product that you qualified for. More and more what we've done, and I think we've led the industry in this initiative, is we've introduced risk-based pricing with our bank partners for these underbanked and underserved consumers. What you don't necessarily see, and what we don't speak about as much on this call is the expansion of our product set.

[Clive Kinross, Founder and CEO at Propel Holdings]

I could tell you that once you get into more of the details, the products or the customers that we're serving, the range of APRs is larger than it's ever been. We're expanding the product set at yields quite a bit below what our average yield is. That product set and those consumers and that segment of the market has grown a lot, either on the Lending-as-a-Service side or alternatively, the stuff that's included in our CLAB. By the same token, we've also expanded that product set for customers that are north of our average yield. I'm not now speaking about the contribution of Lending-as-a-Service nor Propel UK. I'm speaking about everything else. There's way more consumers. There's a much wider range, and we're doing much more risk-based pricing.

[Clive Kinross, Founder and CEO at Propel Holdings]

The MoneyKey Bank Service Program, where you saw a significant amount of growth this quarter and in fact year-to-date for many of the reasons that I've already mentioned. Generally speaking, the consumers who qualify for those loans have slightly more bruised credit profiles than, say, the consumers who qualify for CreditFresh. As a result of that, the APRs and the corresponding revenue yields tend to be higher. As already mentioned, that's a much faster-growing segment of our U.S. business right now, which is also going to contribute to higher revenue yields on a go-forward basis.

[Stephen Boland, Analyst at Raymond James]

Thanks, guys. I'll take the rest offline.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Thanks so much.

[Clive Kinross, Founder and CEO at Propel Holdings]

Thanks, Steve.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Thank you.

[Operator]

Your next question comes from the line of Michael MacKay of TD Securities. Please go ahead.

[Michael MacKay, Analyst at TD Securities]

Hi, guys. Good morning. Good to be here for the first time on the call. I was just wondering what the very remarkable last growth quarter-over-quarter, year-on-year. Are you able to provide any color on how much of that has come from the FreshLine rollout in particular versus products that were already existing within the LaaS ecosystem prior to 2026?

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Hey, Michael. Great to have you on, and on a go-forward basis. We're really excited to have TD as part of the team over here. It's coming from across the board, Michael. That's the quick explanation. Our existing Lending-as-a-Service programs are scaling significantly. We have adequate capital right now as Clive outlined, and we're just optimizing across the board, investing in new marketing channels as we've discussed, and expanding geographically as we add new states. You've got FreshLine, which frankly has surpassed our expectations at rollout. Again, that's something we just started earlier this year. It's pretty remarkable how well that's performed. In the future, we may provide a little bit more color on the difference between the two, but really we look at it as one overall Lending-as-a-Service program. They're both going really, really well, and I'd say FreshLine is ahead of expectations for sure.

[Michael MacKay, Analyst at TD Securities]

Okay, great. Thank you. Switching to another growth driver just with QuidMarket, obviously very solid year-over-year growth as well and strong credit performance. We've previously discussed the sort of fragmented market in the U.K. and just wondering what, if any, constraints on further growth in the U.K., what the competitive landscape looks like, and maybe any potential outlook there for the next year and a half or so.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Yeah. At this stage, there's no real constraints outside of just our self-imposed constraints. I would say the market is very big and it's growing. The competitive landscape, there hasn't been any major entrants over there. There's no dominant player. We are able to hit these growth rates while maintaining very prudent underwriting. On balance, as we've talked about before, the risk-adjusted kind of spread over in the U.K. at this point is a little bit better because we're just able to keep really tight underwriting and cherry-pick the very best consumers over there. There are shifts in the market overall, and we're growing with them. Very much like North America, we're expanding our acquisition channels and investing on the marketing side. Part of that's being reflected in our higher acquisition costs in the U.K., but that's yielding a lot of benefits.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

I think year-over-year, certainly in Q3 and Q4, I expect our revenues to accelerate when you're looking at it relative to last year. If anything, I think the growth in the U.K., given all the infrastructure that we've built and invested in, expect the rate of growth to increase. That's really good. I think what we've also started kicking off over there is our full kind of technology and underwriting analytics and platform integration, which is really the last piece of the full integration. The integration so far since acquisition has been just excellent and ahead of schedule. This is the last piece that we've expected to integrate starting in the second half of this year. We are on pace to doing that. That should fuel a step-up in growth next year as well. We're very excited about the U.K. market and everything's humming.

[Michael MacKay, Analyst at TD Securities]

Okay, great. Thanks very much. That's helpful. That's all for me.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Thanks, Michael.

[Clive Kinross, Founder and CEO at Propel Holdings]

Thanks, Michael. Thank you, Michael. Michael, great to have you on the call. I didn't address any of your questions, but I know it's your first time over here, and we're delighted to have you guys as part of the research team over here. Thanks so much.

[Operator]

Your next question comes from the line of Jeff Fenwick of ATB Cormark. Your line is now open.

[Jeff Fenwick, Analyst at ATB Cormark]

Hi. Good morning, everyone. I'll try to keep it brief here. I know we're late in the call. I wanted to circle back on the commentary around the application growth. I mean, it's obviously a real positive to have that continued growth there that you spoke to. We're certainly seeing the expense associated with that, and I know you're working to optimize it. Just wondering what you're thinking strategically about this year. If you're generating more apps but your acceptance rate is sort of falling, one perspective might be that that's an inefficient spend.

[Jeff Fenwick, Analyst at ATB Cormark]

I think the other, maybe the flip side, and Clive, I think you may have spoken to this, is maybe changing your risk-based pricing and taking a bit more risk in the way the product you're offering out to the consumer. How do you think about that balance there versus tweaking the approach to generating those applications versus the opportunity to capture more of them into the business?

[Clive Kinross, Founder and CEO at Propel Holdings]

Yeah. It's all really kind of very insightful questions. I think first and foremost, we speak about profitable growth. We don't just speak about growth. We always have an eye on profitable growth, and I think, and I hope if our investor community understands one thing, it's that we won't just grow for the sake of growth. We do need to see the right kind of credit performance. As I've mentioned a couple times, as we move into the back half of the year, particularly Q3, the early parts of Q4, there is, generally speaking, a little bit of elevated risk as our consumers are spending more with back to school, summer vacations, all of that kind of stuff. We wanted to be proactive in tightening our underwriting.

[Clive Kinross, Founder and CEO at Propel Holdings]

Fortunately, because of the strong demand that we're seeing, we can be more selective as far as that's concerned. Just bear with me. Just bear with me for a second over here. I just lost my train of thought in the middle of that conversation. Just bear with me over here.

[Jeff Fenwick, Analyst at ATB Cormark]

I guess the question was really around.

[Clive Kinross, Founder and CEO at Propel Holdings]

Yeah.

[Jeff Fenwick, Analyst at ATB Cormark]

I guess the question was really around are you generating more than you need, right? You're not targeting the right customers, maybe with some of the.

[Clive Kinross, Founder and CEO at Propel Holdings]

Oh, sorry.

[Jeff Fenwick, Analyst at ATB Cormark]

Marketing.

[Clive Kinross, Founder and CEO at Propel Holdings]

Sorry. I remember the second part of what I wanted to say. You're right insofar as marketing costs as a result of that, you are probably spending a little bit more on underwriting than what otherwise would be the case, say, if the acceptance rate were to remain constant. That said, if you look at our cost per acquisition on a new customer, it has actually declined quarter-over-quarter, and we expect it to continue to be refined. Part of that is because of exactly what I'm talking about, the refining of the underwriting. The other part of it is we've added 20 new marketing and distribution channels this year. I mean, that's an incredible amount of hard work by the marketing team in onboarding 20 new distribution channels. All of these distribution channels come on board.

[Clive Kinross, Founder and CEO at Propel Holdings]

They need to be optimized, both from a marketing perspective and risk perspective as well. When you go a level deeper, that's also happening. What that will probably translate to, not necessarily this quarter, but over the medium term, what it will probably translate to is higher acceptance rates as we get more familiar with these new marketing channels and even more optimization and more refinement on the cost per acquisition on a go-forward basis. All of which is to say, I think that we've got lots of choice. When you have lots of choice, particularly in this industry, you could be more selective, which is critical in driving profitable growth.

[Jeff Fenwick, Analyst at ATB Cormark]

Okay. Thank you for that color. I'll leave it there.

[Clive Kinross, Founder and CEO at Propel Holdings]

Thank you.

[Sheldon Saidakovsky, Founder and CFO at Propel Holdings]

Thanks, Jeff.

[Operator]

There are no further questions at this time. I will now turn the call over to Clive Kinross for the closing remarks. Please continue.

[Clive Kinross, Founder and CEO at Propel Holdings]

I think we've just broke a record today for our longest earnings call. Certainly want to thank you all for attending our call this morning. I'd also like to thank our investors and our partners for their continued support of our vision of building a new world of financial opportunity. As always, I would like to extend a really, really big thank you to the Propel team in Canada, the U.K., and Puerto Rico for delivering these outstanding record results and achievements. On that note, have an excellent day, and operator, you may end the call.

[Operator]

Ladies and gentlemen, this concludes this conference call. Thank you everyone for joining. You may now disconnect.

Participants

Executives

• Devon Ghelani, VP of Capital Markets and Investor Relations
• Clive Kinross, Founder and CEO
• Sheldon Saidakovsky, Founder and CFO

Analysts

• Matthew Lee, Analyst at Canaccord
• Rob Goff, Analyst at Ventum
• Suthan Sukumar, Analyst at Stifel
• Stephen Boland, Analyst at Raymond James
• Michael MacKay, Analyst at TD Securities
• Jeff Fenwick, Analyst at ATB Cormark