Propel Holdings Revenue Hits $201.5 Million in Third Quarter, Up 32%
Key Facts
Propel Holdings announced on November 3 results for the three months ended September 30, 2026, reporting record quarterly revenue of $201.5 million, up 32% year over year. The company said revenue topped $200 million for the first time in its history. The results came as net income rose 23% to $18.4 million. Adjusted net income increased 54% to a record $24.9 million. Alongside the results, Propel announced a 6% increase in its quarterly dividend, attributing the decision to its strong financial position and continued earnings generation.
Earnings growth was also reflected in per-share results, with diluted earnings per share of $0.43, up 22% from the same period a year earlier. Adjusted diluted earnings per share reached a record $0.59, up 53% year over year. These measures show two parallel trends in the results: growth in reported net income and stronger gains in adjusted net income and adjusted earnings per share. The company recorded these gains alongside an expansion in originations and balances during the quarter. The figures in the announcement did not break out each activity's contribution to earnings growth.
Total originations reached $260.7 million, up 27% from the third quarter of the previous year and a quarterly record. Higher originations lifted combined loan and advance balances to a record $690.5 million at quarter-end, up 24% year over year. The company linked record revenue to higher average loan and advance balances and an improved annualized revenue yield. That yield was 121% in the third quarter, compared with 113% a year earlier. The company also cited growth in new-customer originations, expansion in its lending-as-a-service activity and a higher contribution from higher-yielding segments.
The expansion was accompanied by an increase in the provision for loan losses and other commitments, which reached 53% of revenue, compared with 52% in the third quarter of the previous year. The company said the increase was mainly related to a higher share of new-customer originations. By contrast, net charge-offs remained at about 12% of average combined loan and advance balances, in line with the previous year. These measures place growth in originations and balances alongside the development of credit risk costs during the quarter. The company noted that the net charge-off ratio remained at its comparable level despite higher provisions as a share of revenue.
The CEO said quarterly revenue topped $200 million for the first time in the company's history. After the results were announced, the stock rose 9.96% in after-hours trading, reaching $29.15 on November 4, compared with a previous close of $26.51, according to an Investing.com report citing Reuters. The 6% quarterly dividend increase was the thirteenth consecutive increase, according to the company's announcement. Management said its strong financial position and continued earnings generation support the increase. These details provide context for the stock's performance after the results and the dividend increase decision, without the company attributing the decision solely to revenue growth.
The new dividend begins in the fourth quarter of 2026, with the company setting November 26 as the record date for eligible shareholders and payment scheduled for December 3. Management said it expects lending-as-a-service revenue to approach 10% of fourth-quarter revenue, compared with about 7% in the third quarter, as the activity continues to grow at a triple-digit rate. It also expects growth in combined loan and advance balances to approach the upper end of its previous guidance range of 18% to 24%, and possibly exceed it. By contrast, it expects a slight decline in revenue yield in the fourth quarter from the 121% recorded in the third quarter, due to the seasonal graduation of existing customers. The company said normalized yield could settle between 116% and 120% heading into 2027.