Review of Propel Holdings Inc.

NOV 20, 2025 - The challenging macroeconomic environment is one of the key reasons for the near-term earnings miss, which also led to an uptick in delinquencies in the US. This unstable credit performance was due to factors such as student loan repayments restarting, government shutdown risk, and potentially higher inflation eating into consumer income. This headwind made PRL’s management become disciplined in terms of underwriting and portfolio management while focusing on credit quality and profitability. PRL’s guidance suggests the company can see stability in credit performance in 2026. Management is being more proactive, and once they have a better handle on the economic backdrop, they will look to increase volumes again. We think the current share price offers an attractive entry point for growth-oriented investors. Though it may take some time to recover, we think investors with a time horizon of at least three to five years, without worrying too much about near-term volatility, could do well over time. We are maintaining our rating at B+.