Propel Q2 2026 Shareholder Letter: Platform Expansion Driving Profitable Growth

Dear Shareholders,

We delivered another record quarter, building on the strong momentum we established at the beginning of the year.

Strong growth led to quarterly revenue increasing by 26% year-over-year to a record $179.6 million and Ending Combined Loan and Advance Balances (“CLAB”) increasing by 23% to a record $639.1 million. We also delivered record Adjusted EBITDA and record Adjusted Net Income, of $43.7 million and $24.8 million respectively, while generating an Adjusted Return on Equity of 35%.

Importantly, we achieved this growth while maintaining another quarter of stable credit performance. Provisions for loan losses represented 50% of revenue reflecting both the strength of our AI-powered underwriting platform, disciplined risk management and the resiliency of our consumers.

The investments we have made over the past several quarters to expand our platform and serve more consumers across the credit spectrum are now delivering measurable results across the business. Reflecting our continued performance and strong financial position, the Board approved a 6% increase in the quarterly dividend to C$0.255 per common share beginning in Q3 2026, representing our twelfth consecutive quarterly dividend increase.

As a reminder, all amounts are expressed in U.S. dollars unless otherwise stated.

Q2 Financial Snapshot

Comparable metrics relative to Q2 2025, unless otherwise stated

• Revenue: increased by 26% to $179.6 million, representing a record
• Adjusted EBITDA1: increased by 24% to $43.7 million, representing a record
• Net Income: increased by 7% to $16.2 million
• Adjusted Net Income1: increased by 29% to $24.8 million, representing a record
• Adjusted Diluted EPS1: increased by 28% to $0.58, representing a record
• Return on Equity2: achieved 23% on an annualized basis
• Adjusted Return on Equity1: achieved 35% on an annualized basis
• Ending Combined Loan and Advance Balances (“CLAB”)1: increased by 23% to $639.1 million, a record ending balance
• Dividend: paid a Q2 2026 dividend of C$0.24 per common share on June 3, 2026, representing a 7% increase to our Q1 2026 dividend

Our Consumers Remain Resilient

The health of our consumers remains the most important indicator we watch.

As I've highlighted previously, we continue to see a K-shaped economy emerge across our markets, expanding Propel's addressable market. While many consumers have benefited from rising asset prices and migrated into the super prime category, others have moved into our segment of the credit market: the non-prime segment.

At the same time, 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. As a result, demand for responsible access to credit remains elevated.

This trend is reflected in the data. According to TransUnion, since 2022 the share of subprime consumers has increased by approximately 7%, rising from 13.8% to 14.8% of the population. The Federal Reserve recently reported that credit rejection rates reached 33% in 2025, the highest level in a decade, while the Federal Reserve Bank of New York found in June 2026 that consumer demand for credit reached its highest level since October 2021.

Importantly, we continue to see resilience among the consumers we serve. 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. Rather than falling behind, most said they plan to reduce spending elsewhere.

These dynamics were evident in our second quarter results. Total Originations Funded1 increased 25% year over year to a record $243.4 million, while new customer originations increased 34%, or 43% including Lending-as-a-Service. Importantly, we achieved this growth while maintaining stable credit performance.

We do not believe this is a short-term trend. We believe it reflects a structural expansion in the underserved consumer population across our markets, reinforcing both the relevance of our mission and the long-term growth opportunity ahead.

Expanding Our Platform

To meet this demand and serve more consumers, we have deliberately invested in expanding our platform to serve more consumers across the credit spectrum. That means new products, new markets, new funding structures, new partnerships and new ways of reaching customers.

This quarter demonstrated that these investments are increasingly working together and delivering measurable results.

• FreshLine completed its first full quarter of operations and continued expanding into additional U.S. markets, allowing us to serve a broader segment of the credit spectrum.
• Lending-as-a-Service continued to scale rapidly, generating record revenue of $11.1 million, an increase of 150% over the prior year. We expect strong growth going forward, supported by committed, long-term capital partners. 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.
• We also continued to evolve how we reach consumers through marketing channels. People are discovering financial products differently than they were only a few years ago. Since the beginning of the year, we have added approximately 20 new marketing partners. 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.
• Internationally, Propel UK continued to deliver another quarter of strong profitable growth, with revenue increasing by 53% year-over-year to a record $17.3 million. Almost two years since the acquisition of QuidMarket, we continue to grow the business while leveraging Propel's expertise and infrastructure.
• Propel Bank also continued to expand its operational capabilities, which provide long-term strategic flexibility as we scale. Taken together, these initiatives are creating a broader and more diversified business that is able to serve more consumers while delivering disciplined, profitable growth.

AI as an Enabler, Focus on Profitability

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 that 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 customers in a day, with loans originated per customer service representative reaching an all-time high this quarter, up roughly 30% year over year. Our technology and engineering teams are 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 investment we make in AI translates into greater efficiency and ultimately creates better outcomes for our customers and our shareholders.

Fifteen Years of Building and More to Come

This September marks Propel’s fifteenth anniversary.

When my co-founders and I started Propel, we believed technology could expand access to credit while improving risk management.

Fifteen years later, the business has evolved in ways we could not have imagined.

The team's dedication, tenacity and relentless focus on execution have transformed Propel from a single-product fintech company, into the global, AI-powered fintech platform it is today.

Along the way, we have grown every year since our inception, including a revenue and Adj. EPS1 CAGR of 43% and 64%, respectively, since 2019.

While the business has evolved significantly, our mission has remained constant: expanding access to credit while delivering sustainable, profitable growth for our shareholders.

As we move into the second half of 2026, I remain encouraged by what I see across the business.

Our consumers continue to demonstrate resilience. Demand remains strong. Credit performance remains in line with expectations. And the investments we have made over the past several quarters are beginning to contribute in measurable ways across the business.

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 platform to meet that need.

For more detailed information, including definitions and reconciliations of Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, Adjusted Return on Equity, CLAB, Total Originations Funded, Adjusted Earnings Per Share, which are non-IFRS measures, please see our accompanying Management’s Discussion and Analysis for the period ended June 30, 2026, available on SEDAR+ and our website.

Thank you for your continued trust and support.