Propel Holdings – Propel Holdings Inc.

TORONTO, ON, March 22, 2023 – Propel Holdings Inc. (“Propel” or the “Company”) (TSX: PRL) today reported its financial results for the three months (“Q4 2022”) and fiscal year ended December 31, 2022. All amounts are expressed in U.S. dollars unless otherwise stated.

Financial and Operational Highlights for Q4 and Fiscal Year 2022
Comparable metrics relative to Q4 2021 and Fiscal Year 2021

Loans and Advances Receivable: increased by 88% in Q4 2022 to $195.6 million, a record ending balance
Ending Combined Loan and Advance Balances (“CLAB”)¹: increased by 84% in Q4 2022 to $247.5 million, a record ending balance
Total Originations Funded¹: increased by 12% to $101.5 million in Q4 2022, and increased by 71% to $386.4 million for fiscal year 2022, representing record performance for both periods
Revenue: increased by 52% to $62.5 million in Q4 2022, and increased by 75% to $226.9 million for fiscal year 2022, representing record performance for both periods
Adjusted EBITDA¹: increased by 427% to $13.8 million in Q4 2022, and increased by 61% to $40.8 million for fiscal year 2022, representing record performance for both periods
Net Income: increased to $5.0 million in Q4 2022 from $(2.2) million in Q4 2021, and increased by 131% to $15.1 million for fiscal year 2022, representing record performance for a twelve-month period ending Q4 2022
Adjusted Net Income¹: increased by 549% to $6.7 million in Q4 2022, and increased by 58% to $20.4 million for fiscal year 2022, representing record performance for both periods
Cost of Debt Capital: average effective interest rate increased to 12.4% in Q4 2022 from 9.7% in the comparative period in 2021 and increased to 10.6% in fiscal year 2022 from 10.4% in the comparative period in 2021
Dividend: Paid a Q4 2022 dividend of C$0.095 per Share on December 2, 2022, representing a 5.4% dividend yield against Propel’s closing share price on March 21, 2023

Management Commentary
“We are very pleased with our strong financial and operational performance throughout 2022. Amid macroeconomic uncertainty, including rising interest rates and elevated inflation, we delivered strong financial results with records in several key areas of our business. Together with our Bank Partners, we made the intentional decision to tighten underwriting starting in Q1 of last year. Even with this backdrop, we achieved 75% annual revenue growth for fiscal year 2022 while building a higher credit quality loan book and maintaining strong credit performance as we entered 2023. Building off our strong core business – powered by our proprietary artificial intelligence and machine learning technology – the Propel team rolled out Fora Credit in Canadian markets in Q4. Fora presents a meaningful opportunity for growth and has been performing better than expected since we launched in late 2022. We are also excited about the development of our new lending-as-a-service program with Pathward, which we expect to launch in the first half of this year. With our recently upsized $250 million CreditFresh credit facility, a record opening CLAB¹, and continued strong credit performance, we are starting 2023 in an excellent position to execute on our growth strategy. As always, we remain focused on delivering profitable growth while providing access to credit to an ever-increasing number of American and Canadian consumers who are counting on us,” said Clive Kinross, Chief Executive Officer.

Discussion of Financial Results
Propel continues to observe strong demand for credit and ongoing consumer resiliency. In light of the ongoing macroeconomic headwinds, including higher interest rates and elevated inflation, Propel and its Bank Partners maintained a conservative approach to underwriting in Q4 2022 and entering 2023. Propel continues to operate the business with a focus on increasing profitable growth, which will be achieved through continued origination growth, a disciplined approach to underwriting by Propel and its Bank Partners, and ongoing operating efficiencies and the operating leverage inherent within the business model. Propel’s industry-leading proprietary AI and machine learning capabilities remain the cornerstone of its track record of profitable growth.

Loans and advances receivable increased by 88% to $195.6 million as at December 31, 2022, compared to $103.8 million as at December 31, 2021. Total Originations Funded¹ increased by 12% to $101.5 million for the three-month period, and by 71% to $386.4 million for the fiscal year 2022. The growth in these balances was driven by: 1) the growth and expansion of the Bank Programs; 2) stronger consumer demand for credit; 3) the expansion of originations through growth with key marketing partners and channels; 4) the expansion of variable pricing and graduation capabilities; and 5) at a macro level, the continuing industry-wide transition from brick-and-mortar to online lending, and tightening across the credit supply chain, which has increased the quality and volume of applications across Propel’s platform.

Revenue increased by 52% and 75% to a record $62.5 million in Q4 2022 and $226.9 million for the year ended December 31, 2022, respectively. This growth was primarily the result of the growth in CLAB¹, offset by a decrease in Annualized Revenue Yield¹ to 109% in Q4 2022 from 141% in Q4 2021 and 121% in fiscal year 2022 from 148% in fiscal year 2021. The decrease in Annualized Revenue Yield¹ is consistent with Propel’s strategy and the evolving portfolio composition towards a better credit quality consumer. This shift in the Company’s portfolio is driving down loss rates and is expected to result in continued improved portfolio performance.

Net income increased to $5.0 million in Q4 2022 from $(2.2) million in Q4 2021, and increased by 131% to $15.1 million for the year ended December 31, 2022 from $6.6 million for the fiscal year 2021. Adjusted Net Income¹ increased by 549% to $6.7 million in Q4 2022 from $1.0 million in Q4 2021 and increased by 58% to $20.4 million for the year ended December 31, 2022 from $12.9 million for the fiscal year 2021. The increase in net income is primarily a result of the following factors: 1) overall growth of the business; 2) a substantial reduction in Propel’s Cost Per Funded Origination¹; and 3) effective and prudent cost management and operating leverage. The increase in net income would have been greater if not for the higher than expected interest expense driven by the tighter Federal Reserve policy and the startup costs pertaining to the recently launched Fora Credit (“Fora”) and soon to be launched Pathward lending-as-a-service (“LaaS”) program. The increase in Adjusted Net Income¹ and Adjusted EBITDA¹ are attributable to the same factors as the increase in net income.

Fora Credit Continues Successful Rollout Across Canada
On November 21, 2022, Propel announced its entrance into the Canadian market with its new brand, Fora. In addition to Alberta and Ontario, which launched at inception, customers in British Columbia can now also access convenient, online lines of credit through Fora. Rooted in Propel’s existing flexible, scalable technology infrastructure and capabilities in artificial intelligence, Fora enables consumers to apply for personal lines of credit through a seamless digital experience backed by extraordinary customer service. Propel expects to roll out Fora to additional provinces across Canada over the next few quarters.

2023 Operating and Financial Targets
Propel finished fiscal year 2022 with record results across multiple operating and financial metrics and with a strong liquidity and financial position that was bolstered by the recently upsized CreditFresh credit facility to support its ongoing growth. The 2023 updated targets below include the continued growth of the existing MoneyKey and CreditFresh brands in the United States, the ongoing ramp up of the recently launched Fora product in Canada and the soon to be launched Pathward LaaS program across the United States. There are a number of new business and corporate development initiatives that form part of the Company’s strategy, which are not included in the operating and financial targets below.

The Company expects to achieve higher revenue and margins in fiscal year 2023 driven by the significantly higher opening CLAB¹, continued growth in originations, higher operating leverage inherent in the business model, and the performance of a maturing and higher credit quality loan portfolio. The factors driving the higher Net Income and Adjusted Net Income¹ margins are partially offset by higher interest costs due to the rising interest rate environment.

The table below provides a comparison of Propel’s updated 2023 targets to the original 2023 forecast provided in the Company’s December 31, 2021 MD&A. The update to the Company’s 2023 targets is primarily a result of: 1) the Company and its Bank Partners maintaining a tighter underwriting posture than originally forecasted; 2) higher interest costs driven by higher than originally anticipated interest rate increases; and 3) the ramp up of Fora in Canada and the launch of the Pathward LaaS program, which while gradually increasing revenue, will negatively impact 2023 earnings due to the IFRS provisioning requirement for Fora and the startup costs associated with both initiatives. Propel expects that both of these new initiatives will have a meaningful and positive impact to the Company’s revenue and profitability in 2024.

Operating and Financial Targets (US$)	2022A Results	Original 2023 Target	Updated 2023 Target
Ending Combined Loan and Advance Balances year over year growth¹	84%	45% – 55%	45% – 55%
Revenue	$227 million	$345 – $375 million	$315 – $345 million
Adjusted EBITDA Margin¹	18%	25% – 30%	23% – 28%
Net Income Margin	7%	12% – 16%	8.5% – 12.5%
Adjusted Net Income Margin¹	9%	16% – 20%	11% – 15%

The updated operating and financial 2023 targets are based on management’s current strategies and expectations and may be considered forward-looking information under applicable securities laws. Such targets are based on estimates and assumptions made by management regarding, among other things, the following:

the regulatory landscape applicable to the Company’s operations;
the continued expansion of the Company’s Bank Program relationships;
the availability and cost of debt capital for the Company;
the maintenance and expansion of the Company’s marketing partnership; and
the macroeconomic environment in fiscal 2023 and its impact on the Company.

For a more detailed discussion on the updated operating and financial 2023 targets and the assumptions underpinning such targets, please refer to the Company’s accompanying December 31, 2022 MD&A, which is available under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. The above operating and financial targets are based on growth in the Company’s existing business lines, existing Bank Programs and the soon to be launched Pathward LaaS partnership. While the new opportunities have the potential of driving significant incremental growth for the business, their impact on the Company’s operating and financial targets, particularly in the short-term, are unknown.

Management currently believes that the achievement of the updated 2023 operating and financial targets described above can be reasonably estimated and are based on underlying assumptions that management believes are reasonable in the circumstances, given the time period for such targets. However, there can be no assurance that Propel will be able to meet such operating and financial targets.

Note:

(1) See “Non-IFRS Financial Measures and Industry Metrics” and “Reconciliation of Non-IFRS Financial Measures” below. See also “Key Components of Results of Operations” in the accompanying Q4 2022 MD&A for further details concerning the non-IFRS financial measures and industry metrics used in this press release including definitions and reconciliations to the relevant reported IFRS measure.

Conference Call Details
The Company will be hosting a conference call and webcast later this morning with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.
Conference call details are as follows:

Date:	March 22, 2023
Time:	8:30AM ET
Toll-free North America:	1-888-886-7786
Local Toronto:	1-416-764-8658
Conference ID:	41543102
Webcast:	Click here
Replay:	1-877-674-7070 or 1-416-764-8692 (PIN: 543102 #)

About Propel
Propel (TSX: PRL) is an innovative financial technology (“fintech”) company, committed to credit inclusion by facilitating fair, fast and transparent access to credit through its proprietary, industry-leading online lending platform. Understanding the challenge faced by millions of people without adequate access to credit, Propel, through its operating brands, is dedicated to bringing appropriate credit solutions to consumers in Canada and the United States. For more than a decade, Propel has leveraged its expertise in consumer lending, its robust capabilities in artificial intelligence and underwriting, and its steadfast dedication to a superior customer experience to facilitate approximately one million loans and lines of credit to consumers in need. For more information, please visit propelholdings.com.

Non-IFRS Financial Measures and Industry Metrics
This press release makes reference to certain non-IFRS financial measures and industry metrics. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Such measures include “Adjusted EBITDA”, “Adjusted Net Income”, “EBITDA” and “Ending CLAB”. This press release also includes references to industry metrics such as “Annualized Revenue Yield” and “Total Originations Funded”, which are supplementary measures under applicable securities laws. These non-IFRS financial measures and industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and industry metrics in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures and industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management and executive compensation. The key performance indicators used by the Company may be calculated in a manner different than similar key performance indicators used by other similar companies.

Definitions and reconciliations of non-IFRS financial measures to the relevant reported measures can be found in our accompanying MD&A available on SEDAR. Such reconciliations can also be found in this press release under the heading “Reconciliation of Non-IFRS Financial Measures” below.

Forward-Looking Information
Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to our ability to profitably grow our business and facilitate access to credit to more and more underserved consumers, the ramp up of Fora in new Canadian markets and the financial impact of Fora on the Company’s financial results, the launch of the Pathward partnership and the anticipated benefits derived therefrom, the impact on the macroeconomic environment on our consumers. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities and our updated operating and financial targets for 2023 is forward-looking information and for which we refer readers to the assumptions set out above. As the context requires, this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s annual information form dated March 22, 2023 for the year ended December 31, 2022 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on SEDAR at www.sedar.com.

The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this press release represents our expectations as of the date of this press release (or as the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

For further information, please contact:
Devon Ghelani
Senior Director, Investor Relations
437-343-7673
IR@propelholdings.com

Selected Financial Information
	Three Months Ended Dec 31,		Year Ended Dec 31,
(US$ )	2022	2021	2022	2021
Revenue	62,514,925	41,177,872	226,850,634	129,649,121
Provision for loan losses and other liabilities	32,887,310	21,846,098	120,152,745	55,021,098

Operating expenses
Acquisition and data	5,329,721	9,012,671	27,230,127	23,697,576
Salaries, wages and benefits	7,371,727	6,746,338	26,709,694	21,376,719
General and administrative	2,789,060	1,747,037	8,844,587	4,607,577
Processing and technology	2,577,942	1,648,783	10,029,943	5,797,000
Total operating expenses	18,068,450	19,154,829	72,814,351	55,478,852
Operating income	11,559,165	176,945	33,883,538	19,149,171

Other income (expenses)
Interest and fees on credit facilities	(4,047,068)	(1,193,162)	(9,784,859)	(4,431,071)
Interest on term loan	–	–	–	(886,852)
Interest expense on lease liabilities	(86,635)	(106,035)	(379,480)	(440,043)
Amortization of internally developed software	(792,304)	(610,520)	(2,596,779)	(2,140,366)
Depreciation of property and equipment	(46,558)	(24,513))	(158,215)	(111,704)
Amortization of right-of-use assets	(158,241)	(158,649)	(621,890)	(660,778)
Foreign exchange gain (loss)	(214,746)	(676,292)	(58,093)	(451,466)
Unrealized gain (loss) on derivative financial instruments	345,946	2,077	(61,866)	(312,764)
Total other income (expenses)	(4,999,606)	(2,767,094)	(13,661,182)	(9,435,044)
Income before transaction costs and income tax	6,559,559	(2,590,149)	20,222,356	9,714,127

Transaction costs	–	1,285,034	–	1,649,855

Income tax expense (recovery)
Current	1,301,734	590,691	7,003,736	4,742,780
Deferred	213,640	(2,252,817)	(1,908,827)	(3,240,950)
Net Income for the period	5,044,185	(2,213,057)	15,127,447	6,562,442

Earnings per share⁽¹⁾
Basic	0.15	(0.06)	0.44	0.24
Diluted	0.14	(0.06)	0.42	0.23

Dividends⁽¹⁾
Dividends	2,428,196	2,547,870	10,055,003	8,073,563
Dividends per share	0.071	0.074	0.293	0.294

(1) All per share amounts prior to Q4 2021 have been restated to reflect the 2:1 share split that occurred as part of the reorganization completed in connection with Propel’s initial public offering. Please see the accompanying Q4 2022 MD&A for further details.

Reconciliation of Non-IFRS Financial Measures

The following table provides a reconciliation of Propel’s net income to EBITDA¹ and Adjusted EBITDA¹:

	Three Months Ended Dec 31,		Year Ended Dec 31,
(US$ other than percentages)	2022	2021	2022	2021
Net Income	5,044,185	(2,213,057)	15,127,447	6,562,442
Interest on Debt	4,047,068	1,193,162	9,784,859	5,317,923
Interest on lease liabilities	86,635	106,035	379,480	440,043
Amortization of internally developed software	792,304	610,520	2,596,779	2,140,366
Depreciation of property and equipment	46,558	24,513	158,215	111,704
Amortization of right-of-use assets	158,241	158,649	621,890	660,778
Income Tax Expense (Recovery)	1,515,374	(1,662,126)	5,094,909	1,501,830
EBITDA¹	11,690,365	(1,782,304)	33,763,579	16,735,086
EBITDA margin¹ as a % of revenue	19%	(4)%	15%	13%
Transaction Costs and Financing Costs	–	1,285,034	–	1,649,855
Provision for credit losses on current status accounts²	2,185,938	46,552	7,389,684	2,674,338
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities	(41,198)	3,074,339	(320,340)	4,312,966
Adjusted EBITDA¹	13,835,105	2,623,621	40,832,923	25,372,245
Adjusted EBITDA margin¹ as a % of revenue	22%	6%	18%	20%

(1) See “Non-IFRS Financial Measures and Industry Metrics”.

(2) Provision included for (i) loan losses on good standing current principal (Stage 1 — Performing) balances (see “Critical Account Policies and Estimates — Loans and advances receivable” in the accompanying Q4 2022 MD&A).

The following table provides a reconciliation of Propel’s Net Income to Adjusted Net Income¹ and Adjusted Net Income margin¹:

	Three Months Ended Dec 31,		Year Ended Dec 31,
(US$ other than percentages)	2022	2021	2022	2021
Net Income	5,044,185	(2,213,057)	15,127,447	6,562,442
Transaction Costs and Financing Costs net of taxes¹	–	944,500	–	1,212,643
Provision for credit losses on current status accounts net of taxes¹	1,639,453	34,216	5,542,263	1,965,639
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities net of taxes¹	(30,898)	2,259,639	(240,255)	3,170,030
Adjusted Net Income² for the period	6,652,740	1,025,298	20,429,455	12,910,754
Adjusted Net Income Margin²	11%	2%	9%	10%

(1) Each item is adjusted for after-tax impact, at an effective tax rate of 25.0% for the three and twelve months ended Dec 31, 2022.

(2) See “Non-IFRS Financial Measures and Industry Metrics”.

The following table provides a reconciliation of Propel’s Ending CLAB¹ to loans and advances receivable:

	As at Dec 31,
(US$)	2022	2021
Ending Combined Loan and Advance balances¹	247,488,344	134,843,170
Less: Loan and Advance balances owned by third party lenders pursuant to CSO program	(2,988,636)	(4,260,648)
Less: Loan and Advance balances owned by a NBFI pursuant to the MoneyKey Bank Service program	(21,088,522)	(17,782,252)
Loan and Advance owned by the Company	223,411,186	112,800,270
Less: Allowance for Credit Losses	(49,844,370)	(23,700,774)
Add: Fees and interest receivable	19,265,893	12,034,604
Add: Acquisition transaction costs	2,795,722	2,715,724
Loans and advances receivable	195,628,431	103,849,824

(1) See “Non-IFRS Financial Measures and Industry Metrics”.

TORONTO, ON, March 8, 2023 – Propel Holdings Inc. (“Propel”) (TSX: PRL), an innovative fintech company dedicated to credit inclusion, announced today that it will be reporting financial results for the three months and full year ended December 31, 2022, prior to market open on Wednesday, March 22, 2023. Propel will be hosting a conference call and webcast with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.

Conference details are as follows:

Date:	Wednesday, March 22, 2023
Time:	8:30 a.m. ET
Toll-free North America:	1-888-886-7786
Local Toronto:	1-416-764-8658
Conference ID:	41543102
Webcast:	Click here
Replay:	1-877-674-7070 or 1-416-764-8692 (PIN: 543102 #)

For further information, please contact:
Devon Ghelani
Senior Director, Investor Relations
437-343-7673
IR@propelholdings.com

The credit facility supports the company’s medium-term strategic growth plan

TORONTO, ON, February 24, 2023 – Propel Holdings Inc. (“Propel”) (TSX: PRL), an innovative fintech company dedicated to credit inclusion, announced a new $250 million syndicated credit facility for the company’s CreditFresh line of business (“the credit facility”). The new credit facility replaces and upsizes the previous CreditFresh facility by $90 million.

The CreditFresh portfolio has experienced significant growth since its inception, driven primarily by the expansion of the company’s transformative bank partnership programs. The new credit facility will enable the company to continue supporting this growth trajectory and unlocking the significant opportunity in this line of business. The credit facility includes the participation of several sophisticated lenders, led by Bastion Management and affiliates thereof (“Bastion”) and Hudson Cove Capital Management and affiliates thereof (“Hudson Cove”).

“We are pleased to have closed this credit facility, which will enable us to continue executing on our strategic plan and provide sufficient liquidity to support the growth of the CreditFresh portfolio. Completing a significant transaction in this market environment and receiving strong interest and support from large, institutional lenders is representative of Propel’s strong fundamentals, resiliency and growth prospects. Through this facility, we continue our long-standing partnership with Bastion, and establish new relationships with industry leaders like Hudson Cove. Propel has delivered consistently strong results while evolving into a leading, diversified online global fintech company. We are steadfast in our commitment to delivering profitable growth while furthering our mission of facilitating access to credit for more underserved consumers,” said Clive Kinross, Propel’s Chief Executive Officer.

Forward-looking information
Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to the growth and opportunity of the CreditFresh portfolio, the execution of our CreditFresh strategic plan, the liquidity profile of our CreditFresh business and ability to deliver growth and profitability. As the context requires, this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s annual information form dated March 21, 2022 for the year ended December 31, 2021 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

For further information, please contact:
Sarika Ahluwalia
Senior Vice President, Corporate Affairs & Chief Compliance Officer
(647) 776-5468
IR@propelholdings.com

TORONTO, ON, February 10, 2023 – Propel Holdings Inc. (“Propel”) (TSX: PRL), an innovative fintech company dedicated to credit inclusion, announced today that its board of directors has declared its Q1 2023 dividend of C$0.095 per common share, payable on March 7, 2023 to shareholders of record as of the close of business on February 21, 2023.

Propel has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada).

About Propel

Propel (TSX: PRL) is an innovative financial technology (“fintech”) company, committed to credit inclusion by facilitating fair, fast and transparent access to credit through its proprietary, industry-leading online lending platform. Understanding the challenge faced by millions of people without adequate access to credit, Propel, through its operating brands, is dedicated to bringing appropriate credit solutions to consumers in Canada and the United States. For more than a decade, Propel has leveraged its expertise in consumer lending, its robust capabilities in artificial intelligence and underwriting, and its steadfast dedication to a superior customer experience to facilitate approximately one million loans and lines of credit to consumers in need. For more information, please visit propelholdings.com.

For further information, please contact:
Sarika Ahluwalia
Senior Vice President, Corporate Affairs & Chief Compliance Officer
(647) 776-5468
IR@propelholdings.com

Company announces new, flexible unsecured line of credit offering backed by new credit facility with CWB Maxium Financial Inc. and Bastion Management

TORONTO, ON, November 21, 2022 – Propel Holdings Inc. (“Propel”) (TSX: PRL), an innovative fintech company dedicated to credit inclusion, announced today that it has entered the Canadian market with its new brand, Fora CreditTM (“Fora”) – a convenient online credit solution for underserved Canadian consumers.

Nearly 25 per cent of Canadians are either unserved or underserved in the credit market , in many cases, due to a lack of access to credit through traditional financial institutions. In line with Propel’s mission of credit inclusion, Fora was created to provide Canadians with access to a fair, transparent and flexible credit solution.

Rooted in Propel’s existing flexible, scalable technology infrastructure and capabilities in artificial intelligence (“AI”), Fora enables consumers to apply online for personal lines of credit of up to C$10,000 through a seamless digital application experience backed by extraordinary customer service. Fora is currently available in Alberta and Ontario and Propel has plans to roll out Fora into additional provinces across the country in the coming months.

Key features of Fora include:

A flexible line of credit product that allows customers to draw from their available credit as needed;
Simple online application that can be completed in minutes at www.foracredit.ca from any desktop, tablet or mobile device;
Quick credit decisions using Propel’s proprietary AI algorithms and technology;
Seamless online customer experience, including an easy-to-use self-service portal that customers can access 24/7 to manage their line of credit; and
No origination fees, no annual fees, no late fees and no pre-payment penalties.

To support the growth of this new Canadian portfolio, Propel announced it has secured a revolving credit facility with an aggregate initial capacity of approximately C$26 million shared between senior lender CWB Maxium Financial Inc., a part of the Canadian Western Bank Financial Group of companies (“CWB”), and junior lender Bastion Management and affiliates thereof (“Bastion”), an existing lender to Propel.

“Consumers across the United States have trusted Propel and its operating brands for more than a decade to deliver flexible credit solutions and we are delighted to bring our offering home to Canadians. We fully expect that Fora will become a leading solution for the 25 per cent of Canadians who are unable to access credit through traditional financial institutions,” said Clive Kinross, Propel’s Chief Executive Officer. “We are pleased to partner with CWB and Bastion on a credit facility for our Canadian business and are looking forward to advancing on our strategic plan through this opportunity for geographic expansion and serving lower-risk markets. Our ability to execute on new programs and work with highly skilled, sophisticated and reputable partners is a cornerstone of our success as a leading fintech company. I could not be prouder of the Propel team who has been working with tremendous energy and excitement to launch Fora ahead of schedule. We are excited to bring our proven expertise in online lending and our outstanding service teams to our home market after many years of operating programs successfully for U.S. consumers. We are looking forward to providing further updates as the program develops.”

Forward-Looking Information

Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to the planned roll-out of Fora to additional provinces in the coming months, the technology and features of the Fora products and platform, our ability to become a Canadian market leader to underserved consumers and our ability to execute on new programs and execute on our strategy. As the context requires, this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s annual information form dated March 21, 2022 for the year ended December 31, 2021 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

¹ https://newsroom.transunion.ca/more-than-9-million-canadians-are-either-credit-unserved-or-underserved—approximately-14-migrate-to-being-credit-active-every-two-years/

For further information, please contact:
Sarika Ahluwalia
Senior Vice President, Corporate Affairs & Chief Compliance Officer
(647) 776-5468
IR@propelholdings.com

Revenue increased by 82% to $59.7 million in Q3 2022, and increased by 86% to $164.3 million for year-to-date through Q3 2022, representing record performance for both periods

Net income increased by 570% to $4.2 million in Q3 2022, and increased by 15% to $10.1 million for year-to-date through Q3 2022, representing record performance for a nine-month period ending Q3

Total Originations Funded¹ increased by 75% to $97.7 million, representing record quarterly originations

Loans and advances receivable and Ending CLAB¹ increased by 121% and 115%, increasing to $166.3 million and $208.4 million, respectively, both record ending balances

Canadian entry launch date accelerated to Q4 2022

Declares dividend of C$0.095 per share

TORONTO, ON, November 10, 2022 – Propel Holdings Inc. (“Propel” or the “Company”) (TSX: PRL) today reported its financial results for the three months ended September 30, 2022 (“Q3 2022”) and declared a dividend for the fourth quarter of 2022. The Company has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada). All amounts are expressed in U.S. dollars unless otherwise stated.

Management Commentary

“Propel delivered another successful quarter with record originations and revenue in Q3 2022, as well as record earnings for a nine-month period ending Q3. We have also made excellent progress on our strategy, including continuing to facilitate the graduation of consumers up the credit spectrum, serving lower-risk markets, expanding to new jurisdictions and exploring potential opportunities for new services and products. In addition to our core business, we recently announced a transformational agreement to become Pathward’s primary lending-as-a-service (“LaaS”) partner which will allow us to facilitate access to credit to lower risk consumers across the United States. We have also announced today that we will be launching our Canadian business before the end of 2022, ahead of schedule, which, in addition to being our home market, will also allow us to tap into a new and underserved market. These new initiatives, together with the strong profitable growth we are experiencing in our existing business provide us with an excellent foundation as we close out 2022 and head into 2023. As the macroeconomic environment remains uncertain and high inflation persists, we are continuing to focus on maintaining profitable growth. We are encouraged by consumers’ resiliency through this challenging economic environment and remain as committed as ever to delivering a best-in-class experience for consumers and strong returns for our investors in the months and years to come,” said Clive Kinross, Chief Executive Officer

Financial and Operational Highlights for Q3 2022

Comparable metrics relative to Q3 2021

Loans and Advances Receivable: increased by 121% in Q3 2022 to $166.3 million, a record ending balance
Ending Combined Loan and Advance Balances (“CLAB”)¹: increased by 115% in Q3 2022 to $208.4 million, a record ending balance
Total Originations Funded¹: increased by 75% to $97.7 million in Q3 2022, and increased by 108% to $284.9 million for year-to-date through Q3 2022, representing record performance for both periods
Revenue: increased by 82% to $59.7 million in Q3 2022, and increased by 86% to $164.3 million for year-to-date through Q3 2022, representing record performance for both periods
Adjusted EBITDA¹: increased by 75% to $8.8 million in Q3 2022, and increased by 19% to $27.0 million for year-to-date through Q3 2022, representing record performance for a nine-month period ending Q3
Net Income: increased by 570% to $4.2 million in Q3 2022, and increased by 15% to $10.1 million for year-to-date through Q3 2022, representing record performance for a nine-month period ending Q3
Adjusted Net Income¹: increased by 71% to $3.8 million in Q3 2022, and increased by 15% to $13.7 million for year-to-date through Q3 2022, representing record performance for a nine-month period ending Q3
Cost of Debt Capital: average effective interest rate increased to 10.5% in Q3 2022 from 9.4% in the comparative period in 2021 and increased to 9.7% year-to-date through Q3 2022 from 9.5% in the comparative period in 2021
Dividend: paid a Q3 2022 dividend of C$0.095 per Share on September 8, 2022, representing a 4.7% dividend yield against Propel’s closing share price on November 9, 2022

Discussion of Financial Results

Notwithstanding an uncertain macroeconomic environment, Propel observed strong consumer demand for credit as the economy continued to return to a more normalized state post-COVID. The Company also continued to see a resilience among the subprime consumer who adjusted quickly to current market conditions. As expected, the general tightening of credit throughout the financial services sector has also continued. In continuing with the proactive steps taken beginning in Q1 of this year, Propel and its Bank Partners similarly maintained a conservative approach to underwriting during the quarter. As a result, and notwithstanding record quarterly Total Originations Funded¹, the Company experienced slower CLAB¹ and revenue growth than otherwise would have been expected in a more normalized macroeconomic environment, albeit with strong credit quality across the portfolio. Propel continues to operate the business with a focus on increasing profitability, which will continue to expand through several factors, including continued revenue growth, ongoing efficiencies in its acquisition and data expense, one of Propel’s primary operating costs, the prudent management of discretionary expenses such as headcount, and the inherent operating leverage within the business model.

Despite the dynamics discussed above, loans and advances receivable increased by 121% to $166.3 million as at September 30, 2022, compared to $75.4 million as at September 30, 2021. The growth in these balances was driven by: 1) the growth in the Bank Programs under the CreditFresh brand; 2) facilitating the expansion of Bank Programs into additional states over fiscal year 2021; 3) strong consumer demand for credit driven by the general opening up of the economy following the easing of COVID-19 related restrictions as well as other macroeconomic factors; 4) the expansion of originations through newly established marketing partners and channels; 5) the successful launch and subsequent expansion of variable pricing and graduation capabilities; and 6) at a macro level, the continuing industry-wide transition from brick-and-mortar to online lending, and tightening across the credit supply chain, which has increased application volume and quality across Propel’s platform. Ending CLAB¹ increased by 115% to $208.4 million, which the Company attributes to the factors above, as well as the significant growth in the MoneyKey Bank Service Program.

Revenue increased by 82% to a record $59.7 million in Q3 2022, compared to $32.7 million in Q3 2021. This growth was primarily the result of the growth in Average CLAB¹, offset by a decrease in Annualized Revenue Yield¹ to 120% in Q3 2022 from 143% in Q3 2021. The decrease in Annualized Revenue Yield¹ is a result of a higher concentration of originations in the Bank Programs relative to legacy products, the general lower cost of credit across products facilitated over Propel’s platform and the introduction of variable pricing and graduation capabilities. The evolving portfolio composition is consistent with the Company’s strategy and is expected to result in higher portfolio growth and lower defaults across the portfolio over time.

Net income increased by 570% to $4.2 million in Q3 2022 from $0.6 million in Q3 2021. Adjusted Net Income¹ increased by 71% to $3.8 million in Q3 2022 from $2.2 million in Q3 2021. The increase in net income in Q3 2022 relative to Q3 2021 is primarily a result of the following factors: 1) overall growth of the business; 2) a substantial reduction in our Cost Per Funded Origination¹; and 3) effective and prudent cost management and operating leverage. The increase in Adjusted Net Income¹ and Adjusted EBITDA¹ are attributable to the same factors as the increase in net income.

Updated Launch Date for Entry into Canadian Market

Propel updated its previous guidance for its entry into the Canadian market today to confirm that the Company will be launching a new consumer credit product in Canada in Q4 2022, ahead of schedule. The product will be offered under a new brand through Propel’s existing proprietary AI and technology infrastructure. Further details are expected to be released imminently.

Operating and Financial Targets

Given the uncertainty in the current macroeconomic environment, and in line with the Company’s commitment to delivering value through profitable growth, a deliberately cautious stance towards credit risk and resultantly, growth, is important for long-term success. Consequently, while the Company anticipates continued growth in Total Originations Funded¹ in Q4 2022, the highest seasonal quarter for demand, such growth is expected to be lower than it would otherwise be in a normalized macroeconomic environment. As a result, the Company anticipates that the Ending CLAB¹ growth rate for 2022 will come in slightly lower than the 80% to 90% range provided earlier this year in our initial operating and financial outlook for 2022. Propel continues to expect to be in line with the financial targets provided for revenue, net income margin, Adjusted EBITDA Margin¹, and Adjusted Net Income Margin¹ for 2022. The Company’s 2023 guidance remains unchanged, however, as further clarity on launch timing and overall volume roll-out plans for new initiatives, including the LaaS program with Pathward and the Canadian program, become apparent, the Company will update its 2023 outlook accordingly.

Note:

(1) See “Non-IFRS Financial Measures and Industry Metrics” and “Reconciliation of Non-IFRS Financial Measures” below. See also “Key Components of Results of Operations” in the accompanying Q3 2022 MD&A for further details concerning the non-IFRS financial measures and industry metrics used in this press release including definitions and reconciliations to the relevant reported IFRS measure.

Declaration of Q4 2022 Dividend

Propel also announced today that its board of directors has declared a dividend of C$0.095 per common share, payable on December 2, 2022 to shareholders of record as of the close of business on November 17, 2022. The Company has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada).

Conference Call Details

The Company will be hosting a conference call and webcast later this morning with a presentation by Clive Kinross, Chief Executive Officer, Sheldon Saidakovsky, Chief Financial Officer and Noah Buchman, President of Propel’s CreditFresh brand.

Conference call details are as follows:

Date:	November 10, 2022
Time:	8:30AM ET
Conference ID:	15640463
Toll free dial-in:	(888) 886-7786
International dial-in:	(416) 764-8659
Webcast:	Click here
Replay:	(877) 674-7070 or (416) 764-8692 (PIN: 640463)

About Propel

Propel is an innovative, online financial technology (“fintech”) company, committed to credit inclusion by providing and facilitating fair, fast and transparent access to credit with exceptional service using its proprietary online lending platform. Through its operating brands, Propel is focused on providing access to credit to underserved consumers who struggle to access credit from mainstream credit providers. Propel’s revenue growth and profitability have accelerated significantly over the past two years as Propel has been able to facilitate access to credit for an increasing number of consumers, helping them move forward in their credit journeys.

Non-IFRS Financial Measures and Industry Metrics

This press release makes reference to certain non-IFRS financial measures and industry metrics. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. Such measures include “Adjusted EBITDA”, “Adjusted Net Income”, “EBITDA” and “Ending CLAB”. This press release also includes references to industry metrics such as “Annualized Revenue Yield” and “Total Originations Funded”, which are supplementary measures under applicable securities laws.

These non-IFRS financial measures and industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and industry metrics in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures and industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts, and to determine components of management and executive compensation. The key performance indicators used by the Company may be calculated in a manner different than similar key performance indicators used by other similar companies.

Forward-Looking Information

Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to our ability to profitably grow our business and facilitate access to credit to more and more underserved consumers, the launch of the Pathward partnership and the anticipated benefits derived therefrom, the launch into Canada in Q4 2022, the impact on the macroeconomic environment on our consumers. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information and for which we refer readers to the assumptions set out in our March 21, 2022 press release providing such targets. As the context requires, this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s annual information form dated March 21, 2022 for the year ended December 31, 2021 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

For further information, please contact:
Sarika Ahluwalia
Senior Vice President, Corporate Affairs & Chief Compliance Officer
(647) 776-5468
IR@propelholdings.com

Selected Financial Information
	Three Months Ended Sept 30,		Nine Months Ended Sept 30,
(US$ )	2022	2021	2022	2021
Revenue	59,738,072	32,742,895	164,335,709	88,471,249
Provision for loan losses and other liabilities	32,553,505	15,420,843	87,265,435	33,175,000

Operating expenses
Acquisition and data	6,186,628	6,201,683	21,900,406	14,684,904
Salaries, wages and benefits	6,870,706	5,240,934	19,337,967	14,630,381
General and administrative	2,045,216	1,184,597	6,055,527	2,860,520
Processing and technology	2,561,008	1,571,133	7,452,001	4,148,219
Total operating expenses	17,663,558	14,198,347	54,745,901	36,324,024
Operating income	9,521,009	3,123,705	22,324,373	18,972,225

Other income (expenses)
Interest and fees on credit facilities	(2,714,756)	(1,212,845)	(5,737,791)	(3,273,909)
Interest on term loan	–	–	–	(886,852)
Interest expense on lease liabilities	(92,240)	(106,564)	(292,845)	(334,008)
Amortization of internally developed software	(607,419)	(493,375)	(1,804,475)	(1,529,846)
Depreciation of property and equipment	(44,844)	(25,186)	(111,657)	(87,191)
Amortization of right-of-use assets	(149,187)	(159,629)	(463,649)	(502,129)
Foreign exchange gain (loss)	39,669	197,830	156,653	224,826
Unrealized gain (loss) on derivative financial instruments	(299,984)	(148,960)	(407,812)	(314,841)
Total other income (expenses)	(3,868,761)	(1,948,729)	(8,661,576)	(6,667,950)
Income before transaction costs and income tax	5,652,248	1,174,976	13,662,797	12,304,275

Transaction costs	–	323,216	–	364,821

Income tax expense (recovery)
Current	2,781,087	638,246	5,702,002	4,152,089
Deferred	(1,322,470)	(412,530)	(2,122,467)	(988,133)
Net Income for the period	4,193,631	626,044	10,083,262	8,775,498

Earnings per share⁽¹⁾
Basic	0.12	0.02	0.29	0.35
Diluted	0.12	0.02	0.28	0.34

Dividends⁽¹⁾
Dividends	2,484,108	672,913	7,626,807	5,525,692
Dividends per share	0.072	0.024	0.222	0.228

(1) All per share amounts prior to Q4 2021 have been restated to reflect the 2:1 share split that occurred as part of the reorganization completed in connection with our initial public offering. Please see the accompanying Q3 2022 MD&A for further details.

Reconciliation of Non-IFRS Financial Measures

The following table provides a reconciliation of our net income to EBITDA¹ and Adjusted EBITDA¹:

	Three Months Ended Sept 30,		Nine Months Ended Sept 30,
(US$ other than percentages)	2022	2021	2022	2021
Net Income	4,193,631	626,044	10,083,262	8,775,498
Interest on Debt	2,714,756	1,212,845	5,737,791	4,124,761
Interest on lease liabilities	92,240	106,564	292,845	334,008
Amortization of internally developed software	607,419	493,375	1,804,475	1,529,846
Depreciation of property and equipment	44,844	25,186	111,657	87,191
Amortization of right-of-use assets	149,187	159,629	463,649	502,129
Income Tax Expense (Recovery)	1,458,617	225,716	3,579,535	3,163,956
EBITDA¹	9,260,694	2,849,359	22,073,214	18,517,389
EBITDA margin¹ as a % of revenue	16%	9%	13%	21%
Transaction Costs and Financing Costs	–	323,216	–	364,821
Provision for credit losses on current status accounts²	1,023,894	1,194,979	5,203,747	2,627,786
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities	(1,531,659)	640,496	(279,142)	1,238,627
Adjusted EBITDA¹	8,752,929	5,008,050	26,997,819	22,748,623
Adjusted EBITDA margin¹ as a % of revenue	15%	15%	16%	26%

(1) See “Non-IFRS Financial Measures and Industry Metrics”.

The following table provides a reconciliation of our Net Income to Adjusted Net Income¹ and Adjusted Net Income margin¹:

	Three Months Ended Sept 30,		Nine Months Ended Sept 30,
(US$ other than percentages)	2022	2021	2022	2021
Net Income	4,193,631	626,044	10,083,262	8,775,498
Transaction Costs and Financing Costs net of taxes²	–	239,826	–	270,697
Provision for credit losses on current status accounts net of taxes²	759,730	886,675	3,831,921	1,949,817
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities net of taxes²	(1,136,491)	475,248	(215,890)	919,062
Adjusted Net Income¹ for the period	3,816,870	2,227,793	13,699,292	11,915,074
Adjusted Net Income Margin¹	6%	7%	8%	13%

(1) See “Non-IFRS Financial Measures and Industry Metrics”.

(2) Each item is adjusted for after-tax impact. Please see the accompanying Q3 2022 MD&A for further details.

The following table provides a reconciliation of our Ending CLAB¹ to loans and advances receivable:

	As at Sept 30,		As at Dec 31,
(US$)	2022	2021	2021
Ending Combined Loan and Advance balances¹	208,380,159	96,841,777	134,843,170
Less: Loan and Advance balances owned by third party lenders pursuant to CSO program	(3,171,971)	(3,204,174)	(4,260,648)
Less: Loan and Advance balances owned by a NBFI pursuant to the MoneyKey Bank Service program	(20,571,558)	(9,519,178)	(17,782,252)
Loan and Advance owned by the Company	184,636,630	84,118,425	112,800,270
Less: Allowance for Credit Losses	(39,632,397)	(19,809,595)	(23,700,774)
Add: Fees and interest receivable	18,304,278	9,076,161	12,034,604
Add: Acquisition transaction costs	2,960,475	1,988,957	2,715,724
Loans and advances receivable	166,298,986	75,373,948	103,849,824

(1) See “Non-IFRS Financial Measures and Industry Metrics”.

TORONTO, ON, November 1, 2022 – Propel Holdings Inc. (“Propel”) (TSX: PRL), an innovative fintech company dedicated to credit inclusion, announced today that Peter Anderson has been appointed to its board of directors, effective immediately. As an independent director, Mr. Anderson will serve on the nomination, governance and compensation committee.

As former Chief Executive Officer of CI Financial Inc, Mr. Anderson led the Canadian asset and wealth management company with operations in Canada, the United States, Hong Kong and Australia. Through Mr. Anderson’s leadership at CI Financial, the team successfully implemented its strategic plan, completed five acquisitions and expanded its offering with new products and platforms.

Throughout his career, Mr. Anderson held a number of senior leadership roles, including at Aston Hill Financial and ScotiaMcLeod. He has a degree from the University of New Brunswick, as well as the designation from the Institute of Corporate Directors (ICD.D). Mr. Anderson has extensive governance experience, including with CI Financial, St. Andrew’s College, Toronto Symphony Orchestra, Waterloo Brewing, Aston Hill Financial and Langdon Equity Partners.

“On behalf of Propel and its board of directors, we are pleased to welcome Peter Anderson as a member of our board. Peter brings a wealth of experience in financial services, strategic leadership and organizational growth. His core values align with ours and we know Peter will support our mission to facilitate access to credit for underserved consumers. We are fortunate to have Peter on our board and eager to work closely with him in our collective efforts to further advance our strategy,” said Clive Kinross, Chief Executive Officer.

About Propel
Propel is an innovative, online financial technology (“fintech”) company, committed to credit inclusion by providing and facilitating fair, fast and transparent access to credit with exceptional service using its proprietary online lending platform. Through its operating brands, Propel is focused on providing access to credit to underserved consumers who struggle to access credit from mainstream credit providers. Propel’s revenue growth and profitability have accelerated significantly over the past two years as Propel has been able to facilitate access to credit for an increasing number of consumers, helping them move forward in their credit journeys.

For further information, please contact:
Sarika Ahluwalia
Senior Vice President, Corporate Affairs & Chief Compliance Officer
(647) 776-5468
IR@propelholdings.com

TORONTO, ON, October 27, 2022 – Propel Holdings Inc. (“Propel”) (TSX: PRL), an innovative fintech company dedicated to credit inclusion, announced today that it will be reporting financial results for the period ending September 30, 2022 (“Q3 2022”) prior to market open on Thursday, November 10, 2022. Propel will be hosting a conference call and webcast with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.

Conference details are as follows:

Date:	Thursday, November 10, 2022
Time:	8:30 a.m. ET
Toll-free dial-in:	1-888-886-7786
International dial-in:	1-416-764-8659
Conference ID:	15640463
Webcast:	Click here
Replay:	877-674-7070 or 416-764-8692 (PIN: 640463)

For further information, please contact:
Sarika Ahluwalia
Senior Vice President, Corporate Affairs & Chief Compliance Officer
(647) 776-5468
IR@propelholdings.com

Propel partners with Pathward to power nationwide credit solution for Pathward partners

TORONTO, ON, October 17, 2022 – Propel Holdings Inc. (“Propel”) (TSX: PRL), an innovative fintech company dedicated to credit inclusion, and Pathward^™, N.A. (“Pathward”), a leading financial empowerment company, announced today that the two companies have entered into an agreement for Propel to become Pathward’s primary consumer lending as a service (“LaaS”) fintech partner.

Powered by Propel’s industry-leading, proprietary fintech platform, Pathward will provide credit solutions through this LaaS capability through its partners. In line with Propel and Pathward’s shared mission of financial inclusion, these credit products will be offered through a seamless online integration into the Propel platform.

For many years, Pathward, formerly MetaBank, has focused on increasing financial access through innovative banking as a service, which includes payment, tax, and commercial finance solutions. Under its new name, the company continues to focus on its purpose of powering financial inclusion for all.

The five-year renewable agreement contemplates fee income for Propel by providing white labelled technology and service solutions for Pathward’s consumer lending capabilities, including customer acquisition services, loan management software, licensing of proprietary artificial intelligence-powered, risk and response scores, and credit servicing capabilities. This partnership accelerates Propel’s strategic plan to expand and diversify its current product and service offerings and geographic reach as an adjacent business to its legacy business lines. Propel expects the program to launch by Q1 2023 and be accretive to revenue and net income in 2023, with financial impact growing into 2024. The company will release more details in future financial outlook.

“Propel’s successful bid to become Pathward’s primary lending as a service fintech partner is a testament to our incredible team, as well as our world-class proprietary technology, operational excellence and artificial intelligence capabilities. We are excited to expand on our current product and service offerings and believe that this new LaaS business will leverage our existing capabilities and complement our robust core business lines, all while providing credit solutions to even more consumers. We are looking forward to developing this program in partnership with the Pathward team with whom we have already fostered an excellent relationship and shares Propel’s mission to facilitate access to credit for more consumers,” said Clive Kinross, Chief Executive Officer of Propel.

“We were impressed with their outstanding technology capabilities and highly experienced team. Our relationship with the Propel team is based on shared values, which gives us confidence in this new partnership and the potential long-term benefit to our customers. This partnership will allow Pathward to provide access to credit while limiting risk, similar to our other consumer lending programs,” said Pathward President Anthony Sharett.

About Pathward^™
Pathward^™, N.A., a national bank, is a subsidiary of Pathward Financial, Inc.^™ (Nasdaq: CASH). Pathward is a U.S.-based financial empowerment company driven by its purpose to power financial inclusion for all^™. Pathward strives to increase financial availability, choice and opportunity across our Banking as a Service and Commercial Finance business lines. The strategic business lines provide end-to-end support to individuals and businesses. Learn more at Pathward.com.

Forward-Looking Information
Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to the program launch date, expected results and benefits from the agreement with Pathward, the services provided to Pathward under the term of the agreement and the anticipated acceleration of Propel’s strategic plan. Particularly, information regarding our expectations of future results including the agreement’s contribution to revenue and net income in 2023 and 2024 is forward-looking information. As the context requires, this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s annual information form dated March 21, 2022 for the year ended December 31, 2021 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

For further information, please contact:
Sarika Ahluwalia
Senior Vice President, Corporate Affairs & Chief Compliance Officer
(647) 776-5468
IR@propelholdings.com

Revenue increased by 90% to $54.1 million, representing record quarterly revenue

Total Originations Funded¹ increased by 115% to $97.5 million, representing record quarterly originations

Loans and advances receivable and Ending CLAB¹ increased by 115% and 123%, increasing to $140.8 million and $179.0 million respectively, both record ending balances

Declares dividend of C$0.095 per share

TORONTO, ON, August 9, 2022 – Propel Holdings Inc. (“Propel” or the “Company”) (TSX: PRL) today reported its financial results for the three months ended June 30, 2022 (“Q2 2022”) and declared a dividend for the third quarter of 2022. All amounts are expressed in U.S. dollars unless otherwise stated.

Management Commentary

“Propel delivered record originations and revenue in Q2 2022. Notwithstanding the tightening of credit criteria implemented by Propel and its partners, we are experiencing strong demand for consumer credit in general and higher quality applications, which we attribute to the normalization of demand coming out of the COVID-19 pandemic and the broad based tightening of credit criteria across the financial services sector. Amidst the exceptional growth, we have maintained profitability which we attribute to our operating discipline, a variable cost structure and the execution of our strategy. We remain as committed as ever to our long-term strategy of graduating customers to new and better credit products, serving lower risk markets through our platform, expanding into new jurisdictions and delivering outstanding service to consumers. Our team is energized, our balance sheet remains strong, and we are making meaningful and impactful investments into our business to continue our trajectory of long-term profitable growth,” said Clive Kinross, Chief Executive Officer.

Financial and Operational Highlights for Q2 2022

Comparable metrics relative to Q2 2021

Loans and Advances Receivable: increased by 115% in Q2 2022 to $140.8 million, a record ending balance
Ending Combined Loan and Advance Balances (“CLAB”)¹: increased by 123% in Q2 2022 to $179.0 million, a record ending balance
Total Originations Funded¹: increased by 115% to $97.5 million in Q2 2022, and increased by 131% to $187.2 million for year-to-date through Q2 2022, representing record performance for both periods
Revenue: increased by 90% to $54.1 million in Q2 2022, and increased by 88% to $104.6 million for year-to-date through Q2 2022, representing record performance for both periods
Adjusted EBITDA¹: increased by 13% to $8.5 million in Q2 2022, and increased by 3% to $18.2 million for year-to-date through Q2 2022, a record for the six-month period
Net Income: decreased by 19% to $2.0 million in Q2 2022, and decreased by 28% to $5.9 million for year-to-date through Q2 2022
Adjusted Net Income¹: increased by 9% to $4.3 million in Q2 2022, and increased by 2% to $9.9 million for year-to-date through Q2 2022, a record for the six-month period
Cost of Debt Capital: decreased average effective interest rate to 9.2% in Q2 2022 from 10.3% in the comparative period in 2021 and decreased the average effective interest rate to 9.1% year-to-date through Q2 2022 from 10.9% in the comparative period in 2021
Dividend: paid a Q2 2022 dividend of C$0.095 per Share on June 2, 2022, representing a 4.4% dividend yield against Propel’s closing share price on August 8, 2022

Discussion of Financial Results

Loans and advances receivable increased by 115% to $140.8 million as at June 30, 2022, compared to $65.5 million as at June 30, 2021. The growth in these balances was driven by: 1) the growth in the Bank Programs under our CreditFresh brand; 2) the roll-out of 10 new states by our bank partners over fiscal year 2021; 3) the general economic recovery and return of demand as a result of easing of COVID-19-related restrictions; 4) the expansion of originations through newly-established marketing partners and channels; 5) the successful launch and expansion of variable pricing and graduation capabilities in the third quarter of 2021; and 6) at a macro level, the continuing industrywide transition from brick-and-mortar to online lending, and tightening across the credit supply chain which has increased application volume and quality across our platform. Ending CLAB¹ increased by 123% to $179.0 million which we attribute to the factors above, as well as the significant growth in the MoneyKey Bank Service Program.

Revenue increased by 90% to $54.1 million in Q2 2022, compared to $28.4 million in Q2 2021. This growth was the result of the growth in Ending CLAB¹, offset by a decrease in Annualized Revenue Yield¹ to 127% in Q2 2022 from 154% in Q2 2021. The decrease in Annualized Revenue Yield¹ is a result of a higher concentration of growth of the Bank Programs relative to legacy products, the general lower cost of credit across products facilitated over Propel’s platform and the introduction of variable pricing and graduation capabilities. The evolving portfolio composition is consistent with the Company’s strategy and is expected to result in higher portfolio growth and lower defaults across the portfolio over time.

Net income decreased by 19% to $2.0 million in Q2 2022 from $2.5 million in Q2 2021. Adjusted Net Income¹ increased by 9% to $4.3 million in Q2 2022 from $3.9 million in Q2 2021. The reduction in net income in Q2 2022 relative to Q2 2021 is the result of the following factors: 1) the investment and increased expenses incurred to support the Company’s significant Ending CLAB¹ growth, as well as greater investment in future strategic initiatives; 2) an increased provision for loan losses and other liabilities due to the post-COVID-19 normalization of credit conditions and associated growth in Q2 2022; 3) the uncharacteristically strong credit quality in Q2 2021 as a result of COVID-19 related factors; and 4) the addition of costs related to our operations as a public company. The increase in Adjusted Net Income¹ is attributable to the same factors as the increase in revenue and decrease in net income, excluding $1.9 million in after-tax non-cash provisions for credit losses related to newly originated and current status accounts. These are also the primary factors that led to the changes in EBITDA¹ and Adjusted EBITDA¹.

Note:

(1) See “Non-IFRS Financial Measures and Industry Metrics” and “Reconciliation of Non-IFRS Financial Measures” below. See also “Key Components of Results of Operations” in the accompanying Q2 2022 MD&A for further details concerning the non-IFRS financial measures and industry metrics used in this press release including definitions and reconciliations to the relevant reported IFRS measure.

Declaration of Q3 2022 Dividend

Propel also announced today that its board of directors has declared a dividend of C$0.095 per common share, payable on September 8, 2022 to shareholders of record as of the close of business on August 18, 2022. The Company has designated this dividend as an eligible dividend within the meaning of the Income Tax Act (Canada).

Conference Call Details

The Company will be hosting a conference call and webcast later this morning with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.

Conference call details are as follows:
Date: August 9, 2022
Time: 8:30AM ET
Conference ID: 7257144
Toll free dial-in: (888) 550-4423
International dial-in: (438) 801-4067
Webcast: Click here
Replay: (800) 770-2030 or (647) 362-9199

About Propel

Propel is an innovative, online financial technology (“fintech”) company, committed to credit inclusion by providing and facilitating fair, fast and transparent access to credit with exceptional service using its proprietary online lending platform. Through its operating brands, MoneyKey and CreditFresh, Propel is focused on providing access to credit to underserved consumers who struggle to access credit from mainstream credit providers. Propel’s revenue growth and profitability have accelerated significantly over the past two years as Propel has been able to facilitate access to credit for an increasing number of consumers, helping them move forward in their credit journeys.

Non-IFRS Financial Measures and Industry Metrics

Forward-Looking Information

Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to our ability to profitably grow our business and facilitate access to credit to more and more underserved consumers, the expected higher portfolio growth and lower defaults resulting from the Company’s portfolio composition. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. As the context requires, this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology.

Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s annual information form dated March 21, 2022 for the year ended December 31, 2021 (the “AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

For further information, please contact:
Sarika Ahluwalia
Senior Vice President, Corporate Affairs & Chief Compliance Officer
(647) 776-5468
IR@propelholdings.com

Selected Financial Information
	Three Months Ended June 30,		Six Months Ended June 30,
(US$ )	2022	2021	2022	2021
Revenue	54,080,680	28,431,463	104,597,637	55,728,354
Provision for loan losses and other liabilities	31,160,299	10,860,002	54,711,930	17,754,157

Operating expenses
Acquisition and data	7,066,697	4,644,465	15,713,778	8,483,222
Salaries, wages and benefits	6,011,422	4,868,834	12,467,261	9,389,447
General and administrative	1,755,553	920,051	4,010,311	1,717,528
Processing and technology	2,369,615	1,410,858	4,890,993	2,577,084
Total operating expenses	17,203,287	11,844,208	37,082,343	22,167,281
Operating income	5,717,094	5,727,253	12,803,364	15,806,916

Other income (expenses)
Interest and fees on credit facilities	(1,729,758)	(979,666)	(3,023,035)	(2,025,064)
Interest on term loan	–	(443,136)	–	(886,852)
Interest expense on lease liabilities	(98,185)	(113,493)	(200,605)	(227,445)
Amortization of internally developed software	(632,603)	(530,532)	(1,197,056)	(1,036,471)
Depreciation of property and equipment	(44,006)	(30,329)	(66,813)	(62,005)
Amortization of right-of-use assets	(154,510)	(172,280)	(314,462)	(342,501)
Foreign exchange gain (loss)	79,994	46,063	116,984	26,996
Unrealized gain (loss) on derivative financial instruments	(329,721)	(133,711)	(107,828)	(165,880)
Total other income (expenses)	(2,908,789)	(2,357,084)	(4,792,815)	(4,719,222)
Income before transaction costs and income tax	2,808,305	3,370,169	8,010,549	11,087,694

Income tax expense (recovery)
Current	1,542,644	1,602,571	2,920,915	3,513,843
Deferred	(747,443)	(709,476)	(799,997)	(575,603)
Net Income for the period	2,013,104	2,477,074	5,889,631	8,149,454

Earnings per share⁽¹⁾
Basic	0.06	0.10	0.17	0.34
Diluted	0.06	0.09	0.17	0.32

Dividends⁽¹⁾
Dividends	2,579,642	3,783,310	5,142,699	4,852,779
Dividends per share	0.075	0.152	0.150	0.200

Reconciliation of Non-IFRS Financial Measures

The following table provides a reconciliation of our net income to EBITDA¹ and Adjusted EBITDA¹

	Three Months Ended June 30,		Six Months Ended June 30,
(US$ other than percentages)	2022	2021	2022	2021
Net Income	2,013,104	2,477,074	5,889,631	8,149,454
Interest on Debt	1,729,758	1,422,802	3,023,035	2,911,916
Interest on lease liabilities	98,185	113,493	200,605	227,445
Amortization of internally developed software	632,603	530,532	1,197,056	1,036,471
Depreciation of property and equipment	44,006	30,329	66,813	62,005
Amortization of right-of-use assets	154,510	172,280	314,462	342,501
Income Tax Expense (Recovery)	795,201	893,095	2,120,918	2,938,240
EBITDA¹	5,467,367	5,639,605	12,812,520	15,668,032
EBITDA margin¹ as a % of revenue	10%	20%	12%	28%
Transaction Costs and Financing Costs	–	41,605	–	41,605
Provision for credit losses on current status accounts²	2,624,603	1,171,107	4,179,852	1,426,380
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities	423,972	715,537	1,252,518	598,131
Adjusted EBITDA¹	8,515,941	7,567,854	18,244,890	17,734,148
Adjusted EBITDA margin¹ as a % of revenue	16%	27%	17%	32%

(1) See “Non-IFRS Financial Measures and Industry Metrics”.

The following table provides a reconciliation of our Net Income to Adjusted Net Income¹ and Adjusted Net Income margin¹

	Three Months Ended June 30,		Six Months Ended June 30,
(US$ other than percentages)	2022	2021	2022	2021
Net Income	2,013,104	2,477,074	5,889,631	8,149,454
Provision for credit losses on current status accounts net of taxes²	–	30,580	–	30,580
Provisions for CSO Guarantee liabilities and Bank Service Program liabilities net of taxes²	1,929,083	860,764	3,072,191	1,048,389
Service Program liabilities net of taxes²	311,619	525,920	920,600	439,626
Adjusted Net Income¹ for the period	4,253,806	3,894,337	9,882,422	9,668,049
Adjusted Net Income Margin¹	8%	14%	9%	17%

(1) See “Non-IFRS Financial Measures and Industry Metrics”.

(2) Each item is adjusted for after-tax impact, at an effective tax rate of 26.5%.

The following table provides a reconciliation of our Ending CLAB¹ to loans and advances receivable:

	As at June 30,		As at Dec 31,
(US$)	2022	2021	2021
Ending Combined Loan and Advance balances¹	178,968,408	80,369,458	134,843,170
Less: Loan and Advance balances owned by third party lenders pursuant to CSO program	(3,971,770)	(2,473,039)	(4,260,648)
Less: Loan and Advance balances owned by a NBFI pursuant to the MoneyKey Bank Service program	(22,900,712)	(6,673,988)	(17,782,252)
Loan and Advance owned by the Company	152,095,926	71,222,431	112,800,270
Less: Allowance for Credit Losses	(32,805,238)	(15,538,428)	(23,700,774)
Add: Fees and interest receivable	18,403,343	7,913,228	12,034,604
Add: Acquisition transaction costs	3,085,561	1,893,175	2,715,724
Loans and advances receivable	140,779,592	65,490,406	103,849,824

(1) See “Non-IFRS Financial Measures and Industry Metrics”.