Pineapple Financial Reports Q3 Fiscal 2025 Results: Reduced Losses, Improved Cash Flow, and Sustainable Growth in a Shifting Market
Toronto, Ontario--(Newsfile Corp. - July 14, 2025) - Pineapple Financial Inc. (OTC Pink: PAPLF) ("Pineapple" or the "Company"), a leading Canadian mortgage technology and brokerage platform, today announced its unaudited financial results for the three and nine months ended May 31, 2025.
In a year defined by uncertainty, Pineapple remained focused on its core principles of fiscal discipline, innovation, and responsible growth. The Company made deliberate progress in improving operating efficiency, investing in technology, and positioning itself to navigate the next phase of the Canadian mortgage cycle.
Q3 Fiscal 2025 Financial Highlights (Nine Months Ended May 31, 2025):
Gross Billings reached $14.23 million, up 15.23% from $12.35 million in the same period last year
Revenue rose 11.78% to $2.26 million, compared to $1.97 million in 2024
Operating Expenses declined 3.48% to $4.25 million, down from $4.42 million last year
Operating Loss narrowed by 16.76% to $1.99 million, compared to $2.45 million in the prior year
Net Cash Used in Operations improved significantly to $439,198, from $1.44 million in the same period last year
Cash on Hand stood at $1.13 million as of May 31, 2025, compared to $580,356 at August 31, 2024
"We've built Pineapple with care and clarity, always choosing to do what's right over what's easy," said Shubha Dasgupta, CEO of Pineapple Financial. "In times like these, it's not about reacting to the noise, but about staying true to our values, supporting our people, and earning the trust of those who believe in us. We remain focused on steady progress, thoughtful innovation, and creating long-term value for everyone we serve."
Strategic and Corporate Developments
On June 26, 2025, Pineapple's Board approved a 1-for-20 reverse stock split to support NYSE American relisting requirements and align long-term shareholder value
The Company continues to engage with the NYSE American appeal process and currently trades on the OTC Markets (OTC Pink: PAPLF)
Pineapple maintains access to a $15 million Equity Line of Credit, supporting future liquidity needs
"We continue to make careful and intentional decisions to strengthen our foundation," said Sarfraz Habib, Chief Financial Officer. "From managing expenses to reinforcing liquidity, every choice is made with long-term sustainability in mind. We are grateful for the trust of our investors and remain committed to protecting it."
Platform Innovation and Scalable Technology
Pineapple continued to enhance its proprietary PineappleONE platform throughout Q3. The technology now powers over 700 brokers across Canada, offering real-time analytics, automation, and a seamless deal submission experience. These improvements have resulted in stronger customer retention, higher productivity, and greater operational leverage.
The Company's digital infrastructure enables it to grow without overextending expenses, allowing scalable expansion as Canada enters a pivotal mortgage renewal cycle. Over $400 billion in Canadian mortgages are set to renew by 2026 (CMHC, June 2025), creating significant opportunity for trusted, tech-enabled providers.
Market Resilience and Outlook
The Canadian mortgage market remains fundamentally resilient, with over $2 trillion in outstanding residential mortgage credit as of Q2 2025 (Bank of Canada). Despite affordability concerns, demand continues to be supported by population growth, multigenerational purchasing trends, and constrained housing supply.
Pineapple Financial Inc.
Condensed Interim Consolidated Balance Sheets - Unaudited
(Expressed in US Dollars)
| As at: | May 31, 2025 | August 31, 2024 | ||||
| Assets | ||||||
| Current assets | ||||||
| Cash | $ | 1,134,583 | $ | 580,356 | ||
| Trade and other receivables | 180,462 | 155,224 | ||||
| Prepaid expenses and deposits | 81,821 | 157,911 | ||||
| 1,396,866 | 893,491 | |||||
| Investment | 9,847 | 10,042 | ||||
| Right-of-use asset | 656,070 | 828,674 | ||||
| Property and equipment | 84,570 | 152,610 | ||||
| Intangible assets | 2,555,050 | 2,211,775 | ||||
| $ | 4,702,403 | $ | 4,096,592 | |||
| Liabilities and Shareholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 1,462,844 | $ | 1,125,477 | ||
| Deferred revenue | 151,328 | 111,921 | ||||
| Short term loan | 633,259 | - | ||||
| Current portion of lease liability | 166,355 | 161,508 | ||||
| 2,413,786 | 1,398,906 | |||||
| Deferred government incentive | 410,087 | 491,251 | ||||
| Lease liability | 672,622 | 815,599 | ||||
| Warrant liability | 363,343 | 41,520 | ||||
| $ | 3,859,838 | $ | 2,747,276 | |||
| Shareholders' Equity | ||||||
| Common shares, no par value; unlimited authorized; 20,092,025 issued and outstanding shares as of May 31, 2025 and 8,425,358 as at August 31, 2024. | 9,920,070 | 8,559,856 | ||||
| Additional paid-in capital | 2,955,944 | 2,955,944 | ||||
| Accumulated other comprehensive loss | (461,363) | (408,510) | ||||
| Accumulated deficit | (11,572,086) | (9,757,974) | ||||
| 842,565 | 1,349,316 | |||||
| $ | 4,702,403 | $ | 4,096,592 | |||
Pineapple Financial Inc.
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
For the three month and nine month ended May 31, 2025
(Expressed in US Dollars)
| Three months ended | Nine months ended | |||||||||||
| May 31, 2025 | May 31, 2024 | May 31, 2025 | May 31, 2024 | |||||||||
| For the period ended | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||
| Revenue | $ | 746,903 | 736,448 | $ | 2,259,396 | 1,971,377 | ||||||
| Expenses | ||||||||||||
| Selling, general and administrative | 527,835 | 491,666 | 1,522,778 | 1,545,900 | ||||||||
| Advertising and Marketing | 292,489 | 265,395 | 617,987 | 648,197 | ||||||||
| Salaries, wages and benefits | 394,648 | 593,202 | 1,223,722 | 1,825,786 | ||||||||
| Interest expense and bank charges | 31,216 | 40,373 | 306,267 | 42,825 | ||||||||
| Depreciation | 219,355 | 220,190 | 648,991 | 535,575 | ||||||||
| Share-based compensation | - | - | - | - | ||||||||
| Government Incentive | (22,109) | 21,770 | (70,657) | (176,326) | ||||||||
| Total expenses | $ | 1,443,434 | 1,632,596 | $ | 4,249,088 | 4,421,957 | ||||||
| Loss from operations | (696,531) | (896,148) | (1,989,692) | (2,450,580) | ||||||||
| Foreign exchange gain (loss) | (6,018) | - | (1,905) | 10,751 | ||||||||
| Gain (loss) on change in fair value of warrant liability | 309,516 | 29,479 | 341,765 | 42,251 | ||||||||
| Gain (loss) on change in fair value of conversion feature liability | - | 18,064 | - | 18,134 | ||||||||
| Financing costs - warrant issuance | (164,703) | - | (164,280) | - | ||||||||
| Loss before income taxes | $ | (557,736) | (848,605) | $ | (1,814,112) | (2,379,444) | ||||||
| Income taxes (recovery) expense | - | - | - | - | ||||||||
| Net loss | $ | (557,736) | (848,605) | $ | (1,814,112) | (2,379,444) | ||||||
| Foreign currency translation adjustment | (34,703) | (41,676) | 52,853 | (62,666) | ||||||||
| Net loss and comprehensive loss | $ | (592,439) | (890,281) | $ | (1,761,259) | (2,442,110) | ||||||
| Loss per share - basic and diluted ($) | (0.05) | (0.12) | (0.17) | (0.33) | ||||||||
| Weighted average number of common shares outstanding - basic and diluted | 12,714,242 | 7,181,978 | 10,067,480 | 7,181,978 | ||||||||
| Loss per share - basic and diluted ($) (Post reverse split : 20 shares to 1 share) | (0.93) | (2.48) | (3.50) | (6.80) | ||||||||
| Weighted average number of Common shares outstanding - basis and diluted (Post reverse split: 20 Shares to 1 Share) | 635,712 | 359,099 | 503,374 | 359,0991 | ||||||||
About Pineapple
Pineapple is an award-winning fintech and leading Canadian mortgage brokerage network, focusing on both the long-term success of agents and brokers as well as the overall experience of homeowners. With hundreds of brokers within the network, Pineapple creates cutting-edge cloud-based tools and AI-driven systems to enable its brokers to help Canadians realize their dream of owning a home. Pineapple is active within the community and is proud to sponsor charities across Canada to improve the lives of fellow Canadians.
Follow us on social media:
Instagram: @pineapplemortgage @empoweredbypineapple
Facebook: Pineapple Mortgage
LinkedIn: Pineapple Mortgage
Safe Harbor Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties. They are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and economic needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the "Risk Factors" section of the registration statement filed with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. The Company cautions investors that actual results may differ materially from the anticipated results. It encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.
Media Contact:
For media inquiries, please contact Shubha Dasgupta, Chief Executive Officer, at Pineapple.
Email: shubha@gopineapple.com
Related Links:
https://gopineapple.com
http://empoweredbypineapple.com
Investor Relations Contact:
For investor relations inquiries, please contact Pineapple Financial Inc.
ir@gopineapple.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/258772
