Propel Holdings (PRL) investor relations material

Credit cycle and underwriting discipline

• AI-driven underwriting processes enable rapid, high-quality credit decisions, processing over 80,000 applications daily in under six seconds.

• Delinquencies among higher-income consumers are rising, prompting banks to tighten underwriting, leading to increased demand from underserved segments.

• Rejection rates for bank loans have reached multi-year highs, with 57% of applicants with FICO scores below 680 being rejected.

• Conservative underwriting and a large margin of safety are prioritized to ensure sustainable growth and avoid risk from rapid expansion.

• Organic growth has reached 40% top line and over 50% bottom line, driven by disciplined underwriting and aggressive business development.

Customer retention, product graduation, and mission

• Retaining and graduating customers to better products with lower APRs and higher loan amounts reduces costs and improves credit performance.

• Reporting to credit bureaus helps customers improve their profiles, enabling access to better credit and fostering long-term relationships.

• The mission is to provide underserved consumers with superior alternatives to payday and pawn loans, supporting their financial journey.

• Product offerings are continuously upgraded to match customers' evolving credit needs, aiming for indefinite retention until they outgrow the platform.

Expansion, acquisitions, and international growth

• Recent acquisition of Quid Market in the UK targets a fragmented market with 20 million underserved consumers and aims for over 50% growth in its first year.

• Infrastructure and automation investments in the UK are expected to drive both top and bottom line growth, with potential for 100% growth by 2026.

• Acquisition strategy focuses on favorable jurisdictions, accretive deals, and cultural alignment, with a strong emphasis on maintaining company culture.

• Organic growth is prioritized in the UK, leveraging best practices between regions without immediate need for further acquisitions.