Propel Holdings (PRL) Q4 2025 earnings summary

Executive summary

• Achieved record originations funded of $774 million in 2025, up 32% year-over-year, and record revenue of $590 million, up 31% from 2024.

• Net income rose 28% to $59.5 million, with adjusted net income up 7% to $66.7 million, both at record levels.

• Q4 profitability declined due to higher provisioning, upfront acquisition spend, and strategic investments, but set up for strong 2026 growth.

• Launched Propel Bank and announced partnership with Column to expand product offerings and geographic reach.

• Despite macroeconomic headwinds, including the longest U.S. government shutdown, credit performance improved by year-end and into 2026.

Financial highlights

• Q4 originations funded reached $221 million, up 26% year-over-year; ending CLAB at $590 million, up 23%.

• Q4 revenue was $155.8 million, a 21% increase over Q4 last year; annualized revenue yield was 109%.

• Provision for loan losses was 56% of revenue; net charge-offs were 14% of average CLAB in Q4.

• Adjusted net income for Q4 was $8 million ($0.19 per diluted share); full-year adjusted net income was $66.7 million.

• Annualized adjusted ROE was 12% in Q4 and 27% for the full year.

Outlook and guidance

• 2026 targets: ending CLAB growth of 18%-24%, revenue of $725-$775 million, adjusted EBITDA of $152.5-$177.5 million.

• Net income target range of $70-$90 million and adjusted net income of $80-$100 million, representing 34% and 35% growth over 2025 midpoints.

• Targeting ROE of 24%+ and adjusted ROE of 28%+.

• Growth strategy includes scaling North American core businesses, expanding in the UK, launching new programs (Column, Propel Bank), and investing in AI for efficiency.

• Expect Lending-as-a-Service to deliver triple-digit growth and approach 10% of total revenue by Q4 2026.