Propel Holdings (PRL) investor relations material

Credit management and growth strategy

• Detected early signs of credit deterioration in 2025, leading to tightened underwriting and slower loan originations, which stabilized credit quality by Q4.

• Record origination growth in December, frontloading expenses and provisioning, positioning for strong 2026 revenue.

• AI-powered underwriting engine, operational for 12 years, enables profitable, selective growth across multiple jurisdictions.

• Maintains tight underwriting despite high application growth, supporting both risk management and expansion.

• Macro trends, such as increased demand for unsecured credit and a growing subprime segment, provide tailwinds for core products.

Product and geographic expansion

• Core products, MoneyKey and CreditFresh, experienced material growth due to strong demand and tight underwriting.

• Lending-as-a-service revenues grew 150% year-over-year in Q2, with expectations for further acceleration.

• U.K. business grew 53% in Q2, with further growth expected in Q3 and Q4; Canadian business projected to grow 30% in 2026.

• Propel Global Bank and new partnerships, such as with Column Bank, enable expansion into nearly 40 U.S. states, targeting a 50-state strategy.

• Added 20 new marketing channels since Q4 of last year, fueling growth across products and geographies.

Capital, partnerships, and future outlook

• Maintains a debt-to-equity ratio of 1.2:1, with ample liquidity and stable capital structure despite record originations and dividend increases.

• Raised $150 million from Column Bank and $60 million from Monroe Capital to fund receivables, reflecting strong partner confidence.

• Lending-as-a-service now fully funded by long-term capital, with high demand from purchasers and strong loan performance.

• Five-year plan anticipates organic growth in existing markets, with revenue growth moderating to 25%+ but bottom-line growth expected to remain strong.

• Plans for further geographic expansion through both acquisitions and organic build, aiming to become a global industry leader.