Pineapple Financial Inc. Reports 15.2% Increase in Gross Billing and 3.60% Reduction in SG&A, with Continued Cost Cutting and Scalable Revenue Growth for the Six Months Ended February 28, 2025
Pineapple Financial Inc. (NYSE: PAPL) has reported strong financial results for the six months ended February 28, 2025. The company achieved a 15.2% increase in gross billings to $9.33 million and an 11.8% revenue growth to $1.51 million compared to the prior year.
Key financial highlights include a 47% improvement in cash flow with operating activities cash usage reduced to $836,228, and a 3.6% reduction in SG&A expenses to $995,190. The net loss improved to $1.25 million from $1.53 million in the previous year. For Q2 2025, gross billings rose 19.6% to $4.52 million, while net loss narrowed by 9.4% to $595,449.
The company demonstrated significant cost optimization with a 27.7% decrease in salaries and wages and a 62.1% reduction in marketing expenses. Management expects continued growth opportunities from increasing mortgage renewal volumes in Canada over the next 24 months.
Pineapple Financial Inc. (NYSE: PAPL) ha riportato risultati finanziari solidi per i sei mesi terminati il 28 febbraio 2025. L'azienda ha registrato un aumento del 15,2% delle fatturazioni lorde a 9,33 milioni di dollari e una crescita dell'11,8% dei ricavi a 1,51 milioni di dollari rispetto all'anno precedente.
I principali dati finanziari includono un miglioramento del 47% del flusso di cassa con un utilizzo di cassa dalle attività operative ridotto a 836.228 dollari, e una riduzione del 3,6% delle spese SG&A a 995.190 dollari. La perdita netta si è ridotta a 1,25 milioni di dollari dai 1,53 milioni dell'anno precedente. Nel secondo trimestre 2025, le fatturazioni lorde sono aumentate del 19,6% a 4,52 milioni di dollari, mentre la perdita netta si è ridotta del 9,4% a 595.449 dollari.
L'azienda ha dimostrato una significativa ottimizzazione dei costi con una riduzione del 27,7% di salari e stipendi e una diminuzione del 62,1% delle spese di marketing. La direzione prevede opportunità di crescita continue grazie all'aumento dei volumi di rinnovo dei mutui in Canada nei prossimi 24 mesi.
Pineapple Financial Inc. (NYSE: PAPL) ha reportado sólidos resultados financieros para los seis meses terminados el 28 de febrero de 2025. La compañía logró un aumento del 15,2% en facturación bruta hasta 9,33 millones de dólares y un crecimiento de ingresos del 11,8% hasta 1,51 millones de dólares en comparación con el año anterior.
Los aspectos financieros clave incluyen una mejora del 47% en el flujo de caja con un uso de efectivo en actividades operativas reducido a 836.228 dólares, y una reducción del 3,6% en gastos SG&A hasta 995.190 dólares. La pérdida neta mejoró a 1,25 millones de dólares desde 1,53 millones el año previo. Para el segundo trimestre de 2025, la facturación bruta aumentó un 19,6% hasta 4,52 millones de dólares, mientras que la pérdida neta se redujo un 9,4% hasta 595.449 dólares.
La compañía demostró una significativa optimización de costos con una disminución del 27,7% en salarios y sueldos y una reducción del 62,1% en gastos de marketing. La dirección espera oportunidades de crecimiento continuas debido al aumento en los volúmenes de renovación hipotecaria en Canadá durante los próximos 24 meses.
Pineapple Financial Inc. (NYSE: PAPL)은 2025년 2월 28일에 종료된 6개월간 강력한 재무 실적을 보고했습니다. 회사는 전년 대비 총 청구액이 15.2% 증가한 933만 달러와 매출이 11.8% 성장한 151만 달러를 달성했습니다.
주요 재무 하이라이트로는 영업활동 현금 사용이 836,228달러로 줄어들면서 현금 흐름이 47% 개선되었고, SG&A 비용은 3.6% 감소한 995,190달러를 기록했습니다. 순손실은 전년 153만 달러에서 125만 달러로 개선되었습니다. 2025년 2분기에는 총 청구액이 19.6% 증가한 452만 달러를 기록했고, 순손실은 9.4% 감소한 595,449달러로 줄었습니다.
회사는 급여 및 임금이 27.7% 감소하고 마케팅 비용이 62.1% 줄어드는 등 비용 최적화를 크게 달성했습니다. 경영진은 향후 24개월 동안 캐나다의 모기지 갱신 물량 증가로 지속적인 성장 기회를 기대하고 있습니다.
Pineapple Financial Inc. (NYSE: PAPL) a annoncé de solides résultats financiers pour les six mois clos le 28 février 2025. La société a enregistré une augmentation de 15,2 % des facturations brutes à 9,33 millions de dollars et une croissance des revenus de 11,8 % à 1,51 million de dollars par rapport à l'année précédente.
Les principaux faits financiers comprennent une amélioration de 47 % des flux de trésorerie avec une réduction de l'utilisation de trésorerie des activités opérationnelles à 836 228 dollars, ainsi qu'une baisse de 3,6 % des dépenses SG&A à 995 190 dollars. La perte nette s'est améliorée à 1,25 million de dollars contre 1,53 million l'année précédente. Pour le deuxième trimestre 2025, les facturations brutes ont augmenté de 19,6 % à 4,52 millions de dollars, tandis que la perte nette s'est réduite de 9,4 % à 595 449 dollars.
L'entreprise a démontré une optimisation significative des coûts avec une réduction de 27,7 % des salaires et traitements et une baisse de 62,1 % des dépenses marketing. La direction prévoit des opportunités de croissance continues grâce à l'augmentation des volumes de renouvellement hypothécaire au Canada au cours des 24 prochains mois.
Pineapple Financial Inc. (NYSE: PAPL) hat starke Finanzergebnisse für die sechs Monate bis zum 28. Februar 2025 gemeldet. Das Unternehmen erzielte einen 15,2%igen Anstieg der Bruttorechnungen auf 9,33 Millionen US-Dollar und ein Umsatzwachstum von 11,8% auf 1,51 Millionen US-Dollar im Vergleich zum Vorjahr.
Wesentliche finanzielle Highlights umfassen eine 47%ige Verbesserung des Cashflows mit einem Rückgang der operativen Cashflow-Verwendung auf 836.228 US-Dollar sowie eine 3,6%ige Reduzierung der SG&A-Ausgaben auf 995.190 US-Dollar. Der Nettoverlust verbesserte sich von 1,53 Millionen auf 1,25 Millionen US-Dollar. Im zweiten Quartal 2025 stiegen die Bruttorechnungen um 19,6% auf 4,52 Millionen US-Dollar, während der Nettoverlust um 9,4% auf 595.449 US-Dollar sank.
Das Unternehmen zeigte eine deutliche Kostenoptimierung mit einer 27,7%igen Senkung der Gehälter und Löhne sowie einer 62,1%igen Reduzierung der Marketingausgaben. Das Management erwartet in den nächsten 24 Monaten weiterhin Wachstumschancen durch steigende Hypothekenverlängerungen in Kanada.
- 15.2% increase in gross billings to $9.33 million
- 11.8% revenue growth to $1.51 million
- 47% improvement in operating cash flow efficiency
- Significant cost reductions: 27.7% in salaries, 62.1% in marketing expenses
- Net loss improved by 18% to $1.25 million
- Strong mortgage renewal cycle expected over next 24 months
- Continued net loss of $1.25 million despite improvements
- Commission expenses increased 15.9% to $7.81 million
- Interest expenses increased significantly to $273,812 from $49,881
- Revenue declined in Q2 to $743,309 from $784,869 year-over-year
Insights
Pineapple Financial's Q2 results present a mixed financial picture with some positive trajectory indicators. Revenue for the six-month period increased 11.8% to
The cost optimization strategy is yielding results across multiple categories: SG&A expenses declined
However, several metrics warrant caution. Despite the six-month revenue growth, Q2 revenue actually decreased to
The company's path to profitability relies heavily on cost-cutting rather than accelerating revenue growth. While management cites the Canadian mortgage renewal cycle as a tailwind for the next 24 months, the substantial marketing cuts raise questions about sustainable customer acquisition. This efficiency-focused approach may improve near-term financials but could potentially limit long-term growth potential if maintained indefinitely.
Pineapple's strategic pivot toward mortgage renewals rather than new purchase transactions demonstrates prudent adaptation to current market dynamics. The company correctly identifies that while purchase activity remains subdued due to broader economic headwinds, the renewal market presents a significant opportunity over the next 24 months.
This renewal cycle is particularly robust because mortgages originated during the 2020-2022 pandemic boom will be coming due. Many of these were secured at historically low rates, creating a compelling case for broker assistance as consumers navigate substantially higher rate environments. This creates a rich target market for Pineapple's tech platform.
The
The company's technology platform approach positions it well for scalability as evidenced by the ability to grow gross billings while reducing operational costs. Rather than competing primarily on rate, Pineapple appears to be developing efficiency advantages that should help mortgage brokers maximize productivity during the renewal cycle.
The current mortgage environment with increased spread between bank posted rates and broker-available rates creates favorable conditions for mortgage brokers generally. Pineapple's platform model allows it to potentially capture market share during this period while simultaneously streamlining operations. The key challenge will be maintaining growth momentum while continuing to optimize costs toward profitability.
Toronto, Ontario--(Newsfile Corp. - April 15, 2025) - Pineapple Financial Inc. (NYSE American: PAPL), a leading provider of tech-enabled mortgage brokerage solutions, today announced its unaudited financial results for the three and six months ended February 28, 2025. The company continues to demonstrate strong progress, with notable improvements in gross billings, significant operational efficiencies, and a clear path toward achieving profitability.
Six-Month Period ended February 28, 2025 Financial Highlights (Compared to Prior-Year Period):
- Revenue increased
11.8% to$1,512,236 , up from$1,352,858 for the six months ended February 29, 2024. - Gross billings rose
15.2% to$9.33 million , compared to$8.09 million in the prior-year period. - Commission expense increased
15.9% to$7.81 million , consistent with the growth in transaction volumes and agent activity. - Net loss improved to
$1,253,990 , compared to a net loss of$1,530,696 in the prior-year six-month period, driven by operating efficiencies and cost discipline. - Cash used in operating activities decreased significantly to
$836,228 , down from$1,566,642 , representing a47% improvement in cash flow. - SG&A expenses declined modestly by
3.6% , totaling$995,190 compared to$1,031,947 in the prior-year period, reflecting ongoing cost optimization efforts.
Three-Month Period Ended February 28, 2025 Financial Highlights (Compared to Prior-Year Period):
- Gross Billings increased
19.6% to$4.52 million , reflecting continued agent engagement and transaction growth. - Net Loss improved by
9.4% , narrowing to$595,449 compared to$657,456 in the prior-year quarter, driven by lower operating expenses. - Salaries, Wages and Benefits decreased
27.7% , reflecting workforce optimization following the Company's transition to public operations. - Advertising and Marketing Expenses declined
62.1% , as Pineapple shifted to more targeted and cost-effective campaigns. - SG&A Expenses decreased
3.3% , totaling$572,853 , as part of broader cost containment measures.
Management Commentary:
"Our second-quarter results highlight the successful transition to an integrated platform, driving meaningful cost savings and enhancing our ability to scale," said Shubha Dasgupta, CEO of Pineapple Financial. "Despite the headwinds in the Canadian real estate market, including trade uncertainty, our focus on operational efficiency, cost control, and platform innovation has resulted in significant progress. We are now in a position to continue growing revenue at scale while reducing expenses as we move toward profitability."
Sarfraz Habib, CFO of Pineapple Financial, added, "We are very pleased with the reduction in net losses and the improvements in cash flow from operations. The transition to a fully integrated platform, coupled with our cost-cutting initiatives, positions us to grow revenue efficiently while continuing to reduce costs. These improvements ensure that we are well-positioned to achieve profitability in the near term, even amid a challenging macroeconomic environment."
Business Outlook:
While purchases remain under pressure, mortgage volumes continue to rise due to the large base of Canadian mortgage renewals currently taking place, with this trend expected to continue over the next 24 months. This provides a strong tailwind for Pineapple, as we continue to scale our operations, capture market share, and benefit from the renewal cycle. Our fully integrated platform, combined with ongoing cost reductions, positions the company to grow revenue at scale while expenses continue to decline in the quarters ahead. We are confident that Pineapple is well-positioned for long-term growth and sustainable profitability.
Pineapple Financial Inc.
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
For the three month and six month ended February 28, 2025
(Expressed in US Dollars)
| Three months ended | Six months ended | ||||||||||||
| February 28, 2025 | February 29, 2024 | February 28, 2025 | February 29, 2024 | ||||||||||
| For the period ended | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| Revenue | $ | 743,309 | 784,869 | $ | 1,512,236 | 1,352,858 | |||||||
| Expenses | |||||||||||||
| Selling, general and administrative | 572,853 | 592,202 | 995,190 | 1,031,947 | |||||||||
| Advertising and Marketing | 57,101 | 150,597 | 326,945 | 404,017 | |||||||||
| Salaries, wages and benefits | 391,418 | 541,062 | 828,764 | 1,186,316 | |||||||||
| Interest expense and bank charges | 100,005 | 28,450 | 273,812 | 49,881 | |||||||||
| Depreciation | 242,181 | 160,999 | 429,645 | 315,184 | |||||||||
| Share-based compensation | - | - | - | - | |||||||||
| Government Incentive | (21,301 | ) | (29,109 | ) | (48,518 | ) | (80,334 | ) | |||||
| Total expenses | $ | 1,342,257 | 1,444,201 | $ | 2,805,838 | 2,907,011 | |||||||
| Loss from operations | (598,948 | ) | (659,332 | ) | (1,293,602 | ) | (1,554,153 | ) | |||||
| Foreign exchange gain (loss) | (969 | ) | - | 4,021 | 10,772 | ||||||||
| Gain (loss) on change in fair value of warrant liability | 4,468 | 1,876 | 35,591 | 12,685 | |||||||||
| Loss before income taxes | $ | (595,449 | ) | (657,456 | ) | $ | (1,253,990 | ) | (1,530,696 | ) | |||
| Income taxes (recovery) expense | |||||||||||||
| Net loss | $ | (595,449 | ) | (657,456 | ) | $ | (1,253,990 | ) | (1,530,696 | ) | |||
| Foreign currency translation adjustment | (184,795 | ) | 1,727 | 87,556 | (10,451 | ) | |||||||
| Net loss and comprehensive loss | $ | (780,244 | ) | (655,729 | ) | $ | (1,166,434 | ) | (1,541,147 | ) | |||
| Loss per share - basic and diluted ($) | (0.09 | ) | (0.10 | ) | (0.13 | ) | (0.24 | ) | |||||
| Weighted average number of common shares outstanding - basic and diluted | 9,026,001 | 6,475,300 | 8,760,507 | 6,475,300 | |||||||||
The accompanying notes are an integral part of these condensed interim consolidated financial statements
About Pineapple
Pineapple is an award-winning fintech and leading Canadian mortgage brokerage network, focusing on both the long-term success of agents and brokers as well as the overall experience of homeowners. With hundreds of brokers within the network, Pineapple creates cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their dream of owning a home. Pineapple is active within the community and is proud to sponsor charities across Canada to improve the lives of fellow Canadians.
Follow us on social media:
Instagram: @pineapplemortgage @empoweredbypineapple
Facebook: Pineapple Mortgage
LinkedIn: Pineapple Mortgage
Safe Harbor Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. They are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and economic needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. The Company cautions investors that actual results may differ materially from the anticipated results. It encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
Media Contact:
For media inquiries, please contact Shubha Dasgupta, Chief Executive Officer, at Pineapple.
Email: shubha@gopineapple.com
Related Links:
http://empoweredbypineapple.com
Investor Relations Contact:
For investor relations inquiries, please contact Pineapple Financial Inc.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/248546
FAQ
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