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  5. PRL: Hi 5i team, I'm confused about PRL's dividend sustainability due to negative free cash flow (−$57M in 2024 and −$3. [Propel Holdings Inc.]

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Q: Hi 5i team,

I'm confused about PRL's dividend sustainability due to negative free cash flow (−$57M in 2024 and −$3.7M in Q2 2025) and high leverage (112% D/E). Your March 2024 report assigned a B+ rating and positive outlook might be because of strong revenue growth (38.68%) and high ROI (30.33%), but didn’t address these cash flow issues. What am I missing? Is there something in their business model or cash flow timing that supports dividend sustainability?

Best,
Matt
Asked by Matt on August 19, 2025
5i Research Answer:
Its cash flows are negative although the company is highly profitable. This is because there is...
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