PRL — A Compounder You Buy Once and Sit OnPropel Holdings, Inc.TSX_DLY:PRLTeam-StructureXPRL — A Compounder You Buy Once and Sit On 🪑 Most people chase the next hot ticker. I’d rather own a business that keeps getting bigger and better every year. Propel Holdings (TSX: PRL) is one of those. 🚀 The Growth -Q2 revenue hit a record $179.6M. Up 26%. -Total originations funded rose 25% to $243.4M. Loan book (Ending CLAB) up 23% to $639.1M. -New customer originations grew 43% including Lending-as-a-Service. -Over 100,000 loan applications a day. -Management expects revenue growth to accelerate in H2. -This isn’t one good quarter. It’s a pattern. 💰 Revenue & EPS -Adjusted net income: record $24.8M. Up 29%. -Adjusted diluted EPS: record $0.58 (C$0.81). Up 28%. -H1 2026 revenue: $345.7M vs $281.9M last year. -Earnings growing faster than revenue. That’s operating leverage. 📊 Down 40% from ATH - Selling at discount -Why it’s on sale: PRL is roughly 40% off its 2025 high. It got dragged down by a short seller attack on peer goeasy, a credit wobble in late 2025, and US consumer fears. But credit is stable again, earnings hit records, and the dividend kept rising every quarter. The stock got cut. The business didn’t. 📊 The Margins -Adjusted EBITDA margin: 24%. Adjusted net margin: 14%. abbynews -Adjusted ROE: 35% annualized. abbynews -Salaries and G&A fell as a share of revenue. quartr -Revenue yield climbed to 117% from 114%. abbynews -Cost of debt dropped to 10.2% from 11.4%. abbynews -Cheaper money in. Higher yield out. Wider spread. 🛡️ The Edge -AI underwriting that looks past the credit score. That’s the moat. abbynews -Credit stayed stable. Net charge-offs at 12% of CLAB, flat with last year. Growth without blowing up the book. -Lending-as-a-Service revenue up 150% to $11.1M. It’s capital-light. Recurring fees. Partners fund the loans. -UK (QuidMarket) revenue up 53% to $17.3M. Second growth engine. abbynews -Propel Bank is being built out in the US. Long-term optionality. -New product FreshLine is beating expectations. They keep launching. They keep expanding. tickerreport -The underserved credit market is huge. Banks don’t want it. Propel does it better. 🏦 Balance Sheet -Debt-to-equity improved to 1.2x from 1.3x. -Borrowings flat at ~$332M despite the growth. Earnings are funding the expansion. 💵 The Dividend -Almost 4% dividend at time of this port -Quarterly dividend raised 6% to C$0.255. That’s C$1.02 annualized. -Twelfth straight quarterly increase. -Not yearly. Quarterly. Every single quarter. You get paid to wait while it compounds. ⚠️ Be Honest About Risks -Reported net income only grew 7% to $16.2M. The adjusted figures add back provisions. Know the difference. -Adjusted EBITDA margin dipped to 24% from 25%. They’re spending to grow. -Non-prime lending is cyclical. A recession tests the underwriting. Regulatory risk on consumer lending never goes away. 🎯 Bottom Line -Big market. Real edge. Rising margins on the cost side. Growing EPS. A dividend that rises every quarter. -Management that reinvests and still returns cash. -This is a buy-and-sit stock. Not a trade. Not financial advice. Do your own due diligence.