Propel Holdings Inc.

Good morning, everyone. Welcome to the Propel Holdings fourth quarter and year-end 2025 Financial Results Conference Call. As a reminder, this conference call has been recorded on March 3rd, 2026. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for research analysts to queue up for questions. I will now turn the call over to Devan Gilani, Propel's Vice President, capital markets, and investor relations. Please go ahead, Devin.

Thank you, operator. Good morning, everyone, and thank you for joining us today. Propel's fourth quarter year-end 2025 financial results were released yesterday after market close. The press release, financial statements, and MD&A are available on CDR Plus, as well as on the company's website, propelholdings.com. Before we begin, I would like to remind all participants that our statements and comments today may include short-looking statements within the meaning of a placeholder's previous lines. The risks and considerations regarding forward-looking statements can be found in our Q4 2025 MD&A and Annual Information Form for the year ended December 31st, 2025, both of which are available on CR+. Additionally, during the call, we may refer to non-IFRS measures. Participants are advised to review the section entitled Non-IFRS Financial Measures and Industry Metrics in the company's Q4 2025 MD&A for definitions of our non-IFRS measures and the reconciliation of these measures to the most favorable IFRS measure. Lastly, all dollar amounts after this call are in U.S. dollars unless otherwise noted. I am joined on the call today by Clyde Kinrod, current Chief Executive Officer, Sheldon Sidakoski, Founder and Chief Financial Officer, and Noah Buckman, Founder, President, and Chief Revenue Officer. Clyde will provide an overview of our Q4 fiscal year 2025 results and observations on the overall economic environment before Sheldon covers our financials in more detail. Before we open the call up to questions, Clyde will provide an overview of Propel's strategy and growth initiatives for the year, which we'll discuss during 2026, operating financial targets. With that, I'll pass the call over to Clyde.

Thank you, Devin, and welcome everybody to our Q4 and year-end conference calls. 2025 was another year of strong discipline growth for Propel as we continue to expand access to credit for underserved consumers while continuing to enhance our AI-powered platform. Turning specifically to the fourth quarter, we entered Q4 with a tightened underwriting posture following the credit pressure experienced in Q3. That discipline allowed us to navigate through external volatility, including the longest U.S. shutdown government shutdown in history. As performance trends strengthened during the quarter, we accelerated originations in December, driving approximately $30 million of C-Lab growth in that month alone, representing nearly all of the $32 million of sequential growth in Q4, and our strongest month of C-Lab growth to date. However, that growth required upfront provisioning and incremental acquisition spend, while the associated revenue will be recognized over subsequent periods. As a result, profitability was pressured, but these investments positioned the portfolio for strong growth in 2026. Credit metrics have turned, and we exited the year with record-ending C-Lab and strengthened credit performance, and we are seeing that improvement carry forward into 2026. Even with the challenging macroeconomic conditions, our business showed significant resilience as we continue to maintain profitable growth. Turning to our full 2025 results. In 2025, we achieved record total originations funded of $774 million, up 32% year-over-year, record revenue of $590 million, 31%, and record ending C-Lab of $590 million, an increase of 23%. from 2024. For the full year, net income increased by 28% to $59.5 million. In 2025, an adjusted net income increased by 7% to $66.7 million, both representing record performance. Turning to the macroeconomic backdrop and the performance of our regional business units. In the U.S., 2025 was characterized by a dynamic economic environment. While overall inflation has declined, inflation for essential spending remains elevated and real wage growth for many lower income households has moderated. These dynamics contributed to credit softness that emerged in Q3 and extended into early Q4. However, as the quarter progressed, we observed improving credit performance. The government shutdown ended, employment remained stable across sectors where many of our customers are employed, and access to credit remains constrained. These factors supported the improvements we observed exiting the quarter, and we continue to experience the same trends two-thirds into Q1, and we expect that trajectory to continue throughout 2026. Turning to lending as a service, the program achieved record revenue of $5.8 million in Q4, representing 97% growth year-over-year, and was approximately $18 million for fiscal 2025, up 191% from 2024. Towards the end of Q4, Propel received increased commitments from existing purchases, supporting higher origination capacity and continued growth heading into 2026. In Canada, macroeconomic conditions remain softer relative to the U.S. with slower GDP growth and higher unemployment levels. Despite this backdrop, the Canadian business grew by 49% in 2025 from 2024, though the market still represents approximately 2% of total revenue. Credit performance was strong and reflects previous refinements to our risk mark. Lastly, in the UK, inflation remains somewhat elevated, but unemployment levels remain historically low with wage growth slightly outpacing inflation, supporting strong credit demand and stable credit performance. Against this backdrop, our UK business continued to exceed expectations, delivering record revenue and strong annual growth for 2025 that exceeded 50%. The strength of our UK results reflects the scalability of our platform, disciplined underwriting, and the successful integration of quid market into Propel's platform. Since the acquisition, we have incorporated our underwriting, marketing, technological, and operational best practices. Importantly, performance in the UK remains strong in 2025, throughout the more dynamic economic conditions in North America, providing geographic diversification across the business. I will speak more about our recently announced business development initiatives, growth plans, and our guidance for 2026. But first, I will pass it all over to Sheldon.