Propel Holdings. Buy, Sell or Hold?

Roth Capital Markets analyst Craig Irwin says Propel Holdings (Propel Holdings Stock Quote, Chart, News, Analysts, Financials TSX:PRL) continues to post record results despite an unfavourable macro backdrop, with improving credit trends and a major new product launch setting up material growth in 2026.

In a Nov. 21 report, Irwin reiterated his “Buy” rating and C$35.00 price target after hosting CEO Clive Kinross at the firm’s 14th Annual ROTH Technology Conference.

Propel Holdings, a Toronto-based fintech lender, delivered 19% organic revenue growth and 37% origination growth in the third quarter of 2025, even as the company and its bank partners tightened underwriting in response to inflation-driven delinquency pressure. Third-quarter originations reached a record US$205.3-million, up from US$194.4-million in Q2 and US$150-million a year earlier. Irwin said U.S. consumer credit trends have improved in early Q4, with metrics now back within historical ranges.

“PRL continues to execute and deliver record results, amid an unfavourable macro,” he said.

Propel is preparing to launch its second Lending-as-a-Service product in the first quarter of 2026 with Column N.A., a nationally chartered U.S. bank founded by Plaid co-founder William Hockey. The product, Freshline, Provided by Column, will use Propel as loan servicer and will forward the economics of originated loans to third-party partners.

Irwin said management expects the LaaS business to grow “as much as 100% in 2026,” driven by the new partnership. Column’s existing fintech clients include Brex, Bilt and Wise.

Irwin also expects Propel’s U.K.-based QuidMarket unit to gain share next year. The company has finished integrating finance, corporate and IT functions and is implementing product upgrades, including risk-based pricing. Management sees a favourable competitive landscape in the U.K., given tight consumer credit supply and a highly fragmented market. Irwin said Propel expects QuidMarket to grow revenue by more than 50% in 2025, with further acceleration in 2026.

He left his estimates unchanged but reiterated his C$35 target, which is based on a 7× EV/EBITDA multiple applied to fiscal 2026 estimated EBITDA.

Irwin expects Propel to generate about US$145.6-million of Adjusted EBITDA on US$595-million of revenue in fiscal 2025, increasing to US$185-million on US$755-million in fiscal 2026.

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