Reports Q2 2026 Gross Billings of $3.3 Million and Revenue of $0.7 Million
Generates $0.324 Million in Adjusted EBITDA and $0.125 in Adjusted Operating Income
Reaffirms Path to Long-Term Profitability Through Structural Cost Reductions and Improved Operating Leverage
Toronto, Ontario--(Newsfile Corp. - April 13, 2026) - Pineapple Financial Inc. (NYSE American: PAPL) ("Pineapple" or the "Company"), a leading fintech platform, today announced its audited financial results for the three and six month period ended February 28, 2026 ("Q2 2026").
"Q2 marked a transition from restructuring to execution, as we strengthened our balance sheet, reduced our cost base, and advanced our Digital Asset Treasury strategy," said Shubha Dasgupta, Chief Executive Officer of Pineapple Financial. "We have reset our operating model, improved capital efficiency, and aligned the organization around a more scalable and disciplined platform. While our reported results were impacted by non-cash and non-recurring items, underlying operating performance improved during the quarter, supported by cost optimization initiatives and stable core revenue streams."
Mr. Dasgupta continued, "Our focus is on building Pineapple as an integrated operating system centered on three core pillars: the mortgage platform, data and tokenization initiatives, and our Digital Asset Treasury centered on Injective. Together, these pillars create a framework that drives efficiency, expands revenue opportunities, and strengthens earnings durability over time. As these initiatives scale, we see a clear path to increased operating leverage and progress toward breakeven. We are confident in the direction of the business and believe Pineapple is well positioned at the intersection of financial services and emerging digital infrastructure, with a disciplined strategy to scale and drive long-term value for our shareholders."
Strategic and Corporate Developments
During the second quarter, Pineapple executed a series of initiatives to strengthen the business and support its transition into an execution-focused operating model. These efforts were designed to improve capital efficiency, enhance operating leverage, and align the organization around a scalable platform built for long-term growth.
A key milestone during the quarter was the completion of a comprehensive operational transformation. The Company implemented over $1.5 million of annualized cost savings, with total expected reductions to exceed $2.5 million by June 30, 2026, and reduced monthly cash burn by over 50% through workforce realignment, software rationalization, and the integration of artificial intelligence across core workflows. These actions represent a structural reset of Pineapple's cost base and are expected to support improved unit economics and margin expansion over time.
In parallel, the Company continued to advance its Digital Asset Treasury ("DAT") strategy. Pineapple deployed capital into digital assets, including Injective (INJ) tokens, and began generating staking income, while expanding its institutional infrastructure through partnerships with Monarq Asset Management and Canary Capital. These partnerships establish a fully integrated treasury framework spanning custody, execution, advisory, and yield optimization, and are designed to enhance capital efficiency while maintaining robust governance and risk controls.
The Company also authorized a $3 million share repurchase program during the quarter, reinforcing management's commitment to disciplined capital allocation and long-term shareholder value. The share repurchase is expected to commence in the coming days.
Taken together, these actions reflect Pineapple's transition from infrastructure build-out to implementation and execution, with a focus on strengthening its core mortgage platform, expanding its data capabilities, and building a complementary treasury framework that supports a more resilient and durable operating model.
FY 2026 Outlook
Pineapple is reaffirming its previously communicated outlook for fiscal 2026 and continues to expect improved operating performance as the benefits of recent initiatives begin to take hold.
Management expects full-year revenue to be in the range of approximately $7.7 million to $9.5 million on a run-rate basis exiting December 31, 2026, supported by stabilization in mortgage activity and continued contributions from subscription, underwriting, and ancillary revenue streams. While recent corporate actions are not yet fully reflected in reported results, management believes underlying operating trends and growth are improving.
The operational transformation completed during the quarter, combined with ongoing AI integration and a more disciplined cost structure, is expected to drive meaningful improvements in operating leverage over the balance of the year. In parallel, the Company's Digital Asset Treasury strategy is designed to enhance capital efficiency and provide an additional source of yield to support overall financial flexibility.
Management remains focused on execution, with a clear objective of progressing toward breakeven on a cash-flow basis. The Company believes its integrated operating model, supported by its core strategic pillars, positions Pineapple to improve earnings quality and reduce volatility over time. Early progress toward these objectives is reflected in the Company's adjusted operating results during the period.
The Canadian mortgage market remains resilient, supported by its short-term renewal structure and the essential role of housing in household balance sheets. With typical mortgage terms ranging from one to five years, the market continues to benefit from a recurring cycle of renewals and refinancings that drives ongoing activity independent of new home purchases. As noted in the Company's Form 10-Q, mortgage renewal and refinance transactions represented a greater proportion of overall activity during the period, while purchase volumes continued to recover gradually.
Interest rates have stabilized following the Bank of Canada's easing cycle, supporting borrower confidence, although overall origination volumes remain below historical levels. The Company continues to see stable performance across its diversified agent network, supported by ongoing investment in its platform, workflow automation, and lead generation capabilities. Pineapple believes these structural characteristics, combined with a large renewal pipeline and improving rate stability, support a stable market backdrop and create opportunities to drive recurring revenue and operating leverage through disciplined execution.
Fiscal Q2 2026 Financial Highlights
- For the three-month period ended February 28, 2026, Gross Billings were approximately $3.3 million, compared to $4.2 million in Q2 2025.
- Gross Billings represent total fees generated on mortgage transactions, inclusive of commissions and referral fees paid to agents and sub-brokers.
- Revenue was approximately $0.7 million, compared to approximately $0.74 million in Q2 2025, reflecting relatively stable performance in a still-recovering mortgage market.
- Total Expenses were $18.5 million, compared to $1.3 million in Q2 2025.
- Q2 2026 expenses included a $16.9 million unrealized, non-cash change in fair value related to the Company's Digital Asset Treasury ("DAT").
- Loss from Operations was $17.8 million, compared to approximately $0.6 million in Q2 2025, primarily reflecting unrealized, non-cash digital asset losses. Net loss was further impacted by one-time financing chargers, including:
- Approximately $16.9 million unrealized, non-cash fair value loss on digital asset holdings
- Approximately $2.8 million of one-time, non-recurring financing-related costs
- Approximately $0.36 million of interest expense associated with new borrowings related to the Company's digital asset treasury strategy
- Certain one-time advertising and marketing expenses pertaining to the financing
- Excluding non-cash digital asset revaluation and one-time financing-related costs, underlying operating performance improved meaningfully, reflecting the impact of cost optimization initiatives and a structurally lower operating expense base.
- Adjusted operating income for the quarter was approximately $0.125 million, compared to an adjusted operating loss of approximately $0.5 million in the prior-year period, reflecting meaningful progress in cost optimization and operating discipline. Adjusted EBITDA was $0.4 million, compared to $(0.6) million in the prior year period, reflecting continued progress toward operating breakeven.
- Net cash used in Operations was approximately $3.8 million for the six months ended February 28, 2026, compared to $0.8 million in the prior-year period.
- To date, approximately $1.46 million of annualized cost savings have been implemented, with additional savings currently being executed. In aggregate, these initiatives are expected to reduce annual operating expenses by more than $2.5 million.
- Cash on Hand was approximately $17.9 million as of February 28, 2026, compared to $0.5 million as of February 28, 2025, reflecting a significantly strengthened balance sheet following recent financing activities
- The Company also reported positive working capital of $3.1 million, compared to a working capital deficit in the prior period. As of February 28, 2026, the Company's Digital Asset Treasury ("DAT") was valued at approximately $22.4 million, reflecting a decline from peak period valuations driven by market price volatility. The decrease in value represents non-cash unrealized losses during the period. The DAT is comprised primarily of approximately 7.21 million Injective ("INJ") tokens and related digital assets. The Company also selectively deploys capital through lending arrangements and structured derivative strategies designed to generate incremental yield and interest income, while maintaining a disciplined and risk-controlled treasury framework.
- Based on the foregoing, Pineapple's estimated modified net asset value ("mNAV") was approximately 0.73x as of the market close on February 28, 2026. mNAV is defined as enterprise value divided by treasury value, where treasury value includes digital asset holdings and capital deployed in treasury-related strategies.
Webinar Details
Pineapple Financial will host a fireside chat on Thursday, April 16, 2026, to discuss Q2 2026 results and provide a strategic outlook update. Shubha Dasgupta, Chief Executive Officer, and Anthony Georgiades, Pineapple Board Member and General Partner at Innovating Capital, will host the discussion starting at 11:00 a.m. Eastern Time. A question-and-answer session will follow management's presentation.
| Date: | Thursday, April 16, 2026 |
| Time: | 11:00 a.m. Eastern Time |
| Webcast: | Click here to register |
About Pineapple Financial Inc.
Pineapple Financial Inc. 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.
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, fluctuations in the market price of INJ, including risks related to volatility in the price of INJ, the timing and execution of Digital Asset Treasury capital deployment, the treatment of designated cash balances, and the assumptions underlying non-GAAP metrics such as mNAV, and any associated impairment charges that we may incur as a result of a decrease in the market price of INJ below the value at which INJ is carried on our balance sheet; changes in the accounting treatment relating to our INJ holdings; the Company's financial condition, customer acceptance of our INJ treasury strategy, and other factors discussed in the "Risk Factors" section of the registration statements, and periodic reports 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:
KCSA Strategic Communications
Kristin Cwalinski
pineapple@kcsa.com
Investor Relations:
KCSA Strategic Communications
Jack Perkins
pineapple@kcsa.com
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/292204
Source: Pineapple Financial Inc.
