For those who haven't seen my first post:
Propel Holdings is a Canadian fintech company that uses AI-powered underwriting to serve consumers.
The company operates in the US, the UK and Canada, with multiple lending products and a growing funding platform that positions it for continued expansion.
**Tickers:**
* TSX: **$PRL.TO**
* OTC: **$PRLPF**
Propel IPO'd in 2021, reporting:
* **Full year Revenue:** **$129M USD**
* **Full year Adjusted EPS:** **$0.46**
Fast forward to today, they reported record Q2 2026 results:
**Q2 2026 highlights:**
* Revenue: **$179.6M USD (+26% YoY)** ***Beat 177M est***
* Adjusted EBITDA: **$43.7M USD (+24% YoY)**
* Adjusted Diluted EPS: **$0.58 USD (+28% YoY)** ***Beat by .10 EPS***
* Return on Equity: **23%**
* Adjusted ROE: **35%**
* Loans & Advances Receivable: **$492M USD (+21% YoY)**
* Combined Loan & Advance Balances: **$639M USD (+23% YoY)**
Full year Guidance:
725-775M +27% increase over FY25 590M at midpoint
80-100M adjusted net income +35% increase over FY25 67M at midpoint
**Final thoughts** : Propel is on track to finish 2026 with an adjusted EPS of $2.10 USD or $3.00 CAD (conservatively). Extrapolating with a PE of 15x supports a share price of $45 CAD. Approximately 70% higher than the current SP of $26.70.
**Disclosure : I do hold shares.**
Fantastic deep dive provided by [The Valuation Desk Here](https://thevaluationdesk1.substack.com/p/propel-holdings-tsx-prl-q2-earnings?r=bbf11&utm_campaign=post&utm_medium=web)
