Pineapple Financial (PAPL) Q3 2024 earnings summary

Executive summary

• Generated $1.45 billion in residential mortgage loans for the nine months ended May 31, 2024, up 12.13% year-over-year; net loss was $2.38 million, compared to $2.21 million in the prior year period.

• For the quarter ended May 31, 2024, mortgage loan volume rose 22.72% year-over-year to $503.5 million; net loss was $0.85 million, up from $0.81 million in the prior year quarter.

• Revenue for the nine months was $1.97 million, a 1.73% increase year-over-year; quarterly revenue was $736,448, up 22.08% from the prior year quarter.

Financial highlights

• Gross billing for the nine months increased 1.22% to $12.43 million; commission expense rose to $10.46 million.

• Net revenue for the nine months was $1.97 million, up from $1.94 million year-over-year.

• Total expenses for the nine months increased 6.56% to $4.42 million, driven by higher depreciation and lower government incentives.

• Cash balance at May 31, 2024 was $748,769, down from $856,300 a year earlier.

Outlook and guidance

• Management expects continued pressure from high interest rates and a challenging real estate market, but anticipates improved volume if rates decline.

• Ongoing investment in technology and expansion of broker network are expected to support future growth.