Pineapple Financial (PAPL) Q3 2026 earnings summary

Executive summary

• Reported third-quarter net income of $25.3M, reversing a net loss of $0.6M in the prior year, with basic and diluted EPS of $0.99 compared to a loss of $0.93 per share year-over-year.

• Expanded business model to include Digital Asset Treasury strategy alongside core Canadian mortgage operations, now reporting two segments: Mortgage Operations and Crypto Asset Operations.

• Marked a significant milestone with a strengthened balance sheet and entry into a new growth phase.

• Mortgage Operations faced lower origination activity due to market softness, but recurring revenue streams like subscriptions and insurance remained stable.

• Digital Asset Treasury strategy contributed significant non-cash fair value gains and staking income, but also introduced new risks and volatility.

Financial highlights

• For the three months ended May 31, 2026, net income was $25.3M, driven by a $25.8M non-cash fair value gain on digital assets.

• Shareholders' equity rose to $51.6M from $0.9M at the fiscal year's start; total assets increased to $75.9M.

• Nine-month revenue was $2.1M, down 9.2% year-over-year, reflecting lower mortgage volume and gross billings.

• Digital assets totaled $49.4M; cash and restricted cash at $10.5M.

• Staking income from digital assets was $620,849 for the nine months and $399,134 for the quarter.

• Adjusted operating income (non-GAAP) for the nine months was $128,932, with Adjusted EBITDA at $478,566.

Outlook and guidance

• Management expects continued focus on operating leverage, cost discipline, and expansion of recurring revenue streams.

• Plans to enhance productivity via investment in workflow automation and Pineapple Plus.

• Digital Asset Treasury strategy is expected to provide incremental yield but introduces significant volatility and risk.

• Ongoing management of Digital Asset Treasury with emphasis on liquidity and risk management.

• No formal forward-looking financial guidance provided.