Mr. Clive Kinross reports

PROPEL REPORTS RECORD RESULTS FOR Q4 AND FISCAL YEAR 2023

Propel Holdings Inc. has released another set of record financial results for the three months and fiscal year ended Dec. 31, 2023. All amounts are expressed in U.S. dollars unless otherwise stated.

Financial and operational highlights for Q4 and fiscal year 2023 (shown in U.S. dollars)

Comparable metrics relative to Q4 2022 and Fiscal Year 2022, respectively

• Revenue: increased by 54% to $96.0 million in Q4 2023, and increased by 40% to $316.5 million for fiscal 2023, representing record performance for both periods
• Adjusted EBITDA1: increased by 62% to $22.4 million in Q4 2023, and increased by 87% to $76.3 million for fiscal 2023, representing record performance for both periods
• Net Income: increased by 68% to $8.5 million in Q4 2023, and increased by 84% to $27.8 million for fiscal 2023, representing record performance for both periods
• Adjusted Net Income1: increased by 62% to $10.8 million in Q4 2023, and increased by 77% to $36.1 million for fiscal 2023, representing record performance for both periods
• Diluted EPS2: increased by 65% to $0.23 (C$0.31) in Q4 2023, and increased by 78% to $0.76 (C$1.02) for fiscal 2023, representing record performance for both periods
• Adjusted Diluted EPS1,2: increased by 59% to $0.29 (C$0.40) in Q4 2023, and increased by 72% to $0.98 (C$1.32) for fiscal 2023, representing record performance for both periods
• Return on Equity3: increased on an annualized basis to 35% in Q4 2023 compared to 25% in Q4 2022, and increased to 30% for fiscal 2023 compared to 19% for fiscal 2022
• Adjusted Return on Equity1: increased on an annualized basis to 44% in Q4 2023 compared to 33% in Q4 2022, and increased to 40% for fiscal 2023 compared to 26% for fiscal 2022
• Loans and Advances Receivable: increased by 33% in Q4 2023 to $259.3 million, a record ending balance
• Ending Combined Loan and Advance Balances1: increased by 36% in Q4 2023 to $337.3 million, a record ending balance
• Dividend: paid a Q4 2023 dividend of C$0.105 per common share on December 5, 2023, representing an 11% increase to our Q4 2022 dividend and a 2.5% dividend yield against Propel's closing share price on March 12, 2024

Management Commentary

"We are proud to end 2023 with another year of significant growth in both revenue and profitability and another quarter and year of record results including Revenue, Net Income, Adjusted Net Income1, Adjusted EBITDA1, Total Originations Funded1 and Ending CLAB1.

Importantly, in 2023 we were able to facilitate credit access and build financial opportunity for a record number of underserved consumers, who otherwise would have been excluded from the credit market. Through our AI-powered underwriting platform, we facilitated over 164,000 loans and lines of credit in 2023, representing a record number. This was accomplished while Propel and our partners maintained a prudent underwriting posture driving strong credit performance and record profitability.

As we look ahead to 2024, we see tremendous opportunity to continue growing our core business in serving the more than 70 million Americans and Canadians who are underserved by traditional financial institutions. We will continue to add additional opportunities, including expanding our Lending-as-a-Service offering, broadening our product suite, and expanding into new geographies. We have the people, technology, infrastructure, experience and are well capitalized to continue to realize our vision of becoming the global leader in financial services for underserved consumers." said Clive Kinross, Chief Executive Officer.

Discussion of Financial Results and Business Strategy

• Growth of the core business including Bank Programs led to record Total Originations Funded1, ending CLAB1 and revenue
  • Total Originations Funded1 increased by 19% to a record of $120.7 million in Q4 2023 vs. Q4 2022 and increased by 7% to a record of $412.6 million for fiscal year 2023 vs. fiscal year 2022, resulting in Ending CLAB1 growing year-over-year by 36% to a record of $337.3 million
  • In addition, Annualized Revenue Yield1 increased to 121% in Q4 2023 from 110% in Q4 2022. The increase was driven by a variety of factors, including a higher proportion of new customer originations compared to Q4 2022, as well as a greater proportion of the new originations targeted towards higher yielding segments of the loan portfolio
  • The record Ending CLAB1 and Annualized Revenue Yield1 contributed to the 54% and 40% growth and record revenue for the Q4 2023 and fiscal year 2023 periods, respectively
• Propel's proprietary AI-powered technology continued to drive strong credit performance
  • Utilizing our proprietary AI-powered underwriting technology, Propel4 deployed upgraded models throughout the year and into Q4 that resulted in the origination of additional volume from higher yielding segments of the loan portfolio on a profitable basis
  • Provision for loan losses and other liabilities as a percentage of revenue increased modestly to 54% in Q4 2023 from 53% in Q4 2022, which is expected in a period where substantially more new customer volume was originated
• Net income increased to $8.5 million in Q4, a 68% increase over Q4 2022, and Adjusted Net Income1 increased to $10.8 million, a 62% increase over Q4 2022, both representing records
  • Growth in net income and Adjusted Net Income1 was primarily a result of i) the overall growth of the business; ii) the inherent operating leverage in our business model from the infrastructure we have built out over the years and effective cost management; and iii) the increased automation and efficiency in originations and customer service that the Company has been able to drive through the continuous enhancement of its proprietary technology infrastructure
• Fora completed its first full year with operations across seven provinces
  • Our measured rollout of Fora has allowed us to accumulate proprietary loan performance data that is continuously feeding and refining our AI-powered underwriting. As a result, we have a strong foundation to continue to grow into the Canadian market
  • While Fora currently represents a small percentage of the Company's overall revenue, and even with the backdrop of regulatory changes, we remain excited about the Canadian market and are focused on building a leading digital fintech business in Canada
• Lending-as-a-Service program successfully launched and growing
  • We launched our first Lending-as-a-Service program with Pathward in June 2023 and are proud of the performance to date. Since launching, we have grown the number of marketing channels, expanded into new states and onboarded more purchaser relationships
  • Propel is actively exploring additional Lending-as-a-Service opportunities on both sides of the border. We expect our Lending-as-a-Service offering, including Pathward, to be a powerful driver of future growth and will have a more meaningful impact to the Company's financial results in 2024 and beyond
• Solid financial position supports continued expansion of existing programs, growth initiatives and increased dividend
  • The Company ended Q4 2023 with approximately $89 million of undrawn credit capacity on its various credit facilities with a Debt-to-Equity3 ratio of 2.0x
  • With ample debt capacity, continued growth in earnings and significant operating cash flow, the Company is well positioned to continue growing the business, funding our various existing and new initiatives and supporting the dividend -Strong operating results and financial position supported the decision to increase our quarterly dividend by 14% to C$0.12 per common share in Q1 2024

2024 Operating and Financial Targets

Propel finished fiscal year 2023 with record results across multiple operating and financial metrics and with a strong financial position to support its growth. The 2024 targets below are supported by our strategy which includes: i) scaling of our core business in the US and Canada; ii) expansion of our Lending-as-a-Service offering; and iii) investment in our proprietary technology to maintain our market leadership in AI-powered lending.

Furthermore, the Company expects to achieve continued margin expansion in fiscal year 2024 driven by: i) the operating leverage inherent in the business and further driven by our sophisticated technology infrastructure; ii) the overall growth and increasing scale of the loan portfolio; and iii) the increased contribution from Propel's Lending-as-a-Service offering which is expected to generate higher margins than the Company's existing product portfolio given the fee income nature of the program.

There are a number of new business and corporate development initiatives, including the broadening of our addressable market through new products, programs and geographies, that form part of the Company's growth strategy and are not included in the operating and financial targets below.

The operating and financial 2024 targets are based on management's current strategies and expectations and may be considered forward-looking information under applicable securities laws. Such targets are based on estimates and assumptions made by management regarding, among other things, the following:

• the macroeconomic environment in fiscal 2024 and its impact on the Company;
• the continued expansion of the Company's Bank Program and Lending-as-a-Service relationships;
• the maintenance and expansion of the Company's marketing partnerships;
• the availability and cost of debt capital for the Company; and
• the regulatory landscape applicable to the Company's operations.

For a more detailed discussion on the operating and financial 2024 targets and the assumptions underpinning such targets, please refer to the Company's accompanying December 31, 2023 MD&A, which is available under the Company's profile on SEDAR+. The above operating and financial targets are based on growth in the Company's existing business lines, existing Bank Programs and the recently launched Lending-as-a-Service offering, including Pathward. While the recent opportunities have the potential of driving significant incremental growth for the business, their impact on the Company's operating and financial targets, particularly in the short-term, are unknown.

Management currently believes that the achievement of the 2024 operating and financial targets described above can be reasonably estimated and are based on underlying assumptions that management believes are reasonable in the circumstances, given the time period for such targets. However, there can be no assurance that Propel will be able to meet such operating and financial targets.

Note:

(1) See "Non-IFRS Financial Measures and Industry Metrics" and "Reconciliation of Non-IFRS Financial Measures" below. See also "Key Components of Results of Operations" in the accompanying Q4 2023 MD&A for further details concerning the non-IFRS financial measures and industry metrics used in this press release including definitions and reconciliations to the relevant reported IFRS measure.

(2) Results converted from USD to CAD assuming an exchange rate of USD/CAD $1.362 and USD/CAD $1.350 for the three-month and twelve-month periods ending December 31, 2023, respectively.

(3) See "Supplemental Financial Measures" in the accompanying Q4 2023 MD&A for further details concerning certain financial metrics used in this press release including definitions.

(4) Where applicable, underwriting models are approved by and/or provided by Propel's Bank Partners.

Conference Call Details

The Company will be hosting a conference call and webcast tomorrow morning with a presentation by Clive Kinross, Chief Executive Officer, and Sheldon Saidakovsky, Chief Financial Officer.

Conference call details are as follows:

• Date: Wednesday, March 13, 2024
• Time: 8:30 a.m. ET
• Toll-free North America: 1-888-664-6383
• Local Toronto: 1-416-764-8650
• Replay: 1-888-390-0541 or 1-416-764-8677 (PIN: 290043 #)

About Propel

Propel Holdings (TSX: PRL) is the fintech company building a new world of financial opportunity for consumers, partners, and investors. Propel's operating brands - Fora Credit, CreditFresh and MoneyKey - and our Lending-as-a-Service product line facilitate access to credit for consumers underserved by traditional financial institutions. Through its groundbreaking AI-driven platform, Propel evaluates customers in a more comprehensive way than traditional credit scores can. The result is better products and an expanded credit market for consumers while creating sustainable, profitable growth for Propel. Our revolutionary fintech platform has already helped consumers access over one million loans and lines of credit and over one billion dollars in credit. At Propel, we are here to change the way customers, partners and investors succeed together.

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