Pineapple Financial (PAPL) Registration filing summary

Company overview and business model

• Operates as a Canadian mortgage technology and brokerage firm, offering digital solutions and back-office services to agents, brokers, and consumers across Canada.

• Proprietary MyPineapple platform streamlines mortgage origination, compliance, analytics, and client management, supporting scalability and efficiency.

• Revenue streams include lender commissions (95% of gross revenue), subscription fees for platform access, and pre-underwriting service fees.

• Recently launched Pineapple Insurance, a subsidiary providing insurance products to mortgage clients, leveraging technology integration for cross-selling.

• Focuses on organic growth, national expansion, and technology-driven service delivery to increase market share.

Financial performance and metrics

• For the year ended August 31, 2024: $1.53 billion in mortgage originations (up 9.3% YoY), $16.26 million gross billings, $2.69 million revenue, and a net loss of $4.10 million.

• Six months ended February 28, 2025: $690 million in mortgage originations (up 17.6% YoY), $9.33 million gross billings, $1.51 million revenue, and a net loss of $1.25 million.

• Cash as of February 28, 2025: $493,607; accumulated deficit: $11.01 million.

• Operating cash outflows improved to $836,228 for the six months ended February 28, 2025, compared to $1.57 million in the prior year.

• Gross margin stability maintained through cost controls and technology investments, despite pressure from high-volume, lower-margin agents.

Use of proceeds and capital allocation

• Net proceeds from the offering (estimated at $4.53 million) will be used for general corporate purposes, including working capital and investments.

• Approximately 15% of offering proceeds allocated to support Pineapple Insurance's growth and scaling.

• Ongoing investments in proprietary software development and digital infrastructure to enhance operational efficiency.