Vancouver, British Columbia--(Newsfile Corp. - June 12, 2026) - Solution Financial Inc. (TSX: SFI) (the "Company") a leading provider of luxury and ultra luxury asset leasing in Canada, today announced its financial results for the second quarter ending April 30, 2026.
Earnings Highlights for the Second Quarter:
- Net income for the quarter was $93,131 compared to net income of $5,668 in the comparative quarter in 2025.
- Revenue increased 36% to $3.68 million compared to $2.7 million in the comparative quarter.
- Total leasing portfolio remained strong at approximately $31.8 million, supported by stable portfolio quality and strong credit performance during the quarter.
- Adjusted net income(1) increased to $159,480 compared to $58,196 in the comparative quarter.
Operational Highlights for the Quarter:
"The second quarter reflects continued progress in the execution of our long-term growth strategy," stated Bryan Pang, Chief Executive Officer of Solution Financial.
"We are pleased to report strong year-over-year revenue growth, improved profitability and continued expansion of our finance lease portfolio. Our team has remained focused on disciplined underwriting, portfolio quality and building long-term relationships with our customers, dealerships and funding partners."
"We remain enthusiastic about the opportunities ahead. Demand for flexible leasing and financing solutions continues to be strong, particularly within the near-prime market segment where we have invested significant resources over the past several years. We believe Solution Financial is well positioned to continue growing originations, increasing profitability and creating long-term shareholder value."
"After careful consideration, the Board elected to suspend the quarterly dividend and redirect that capital toward growth initiatives," added Mr. Pang. "While we recognize the value that dividends can provide to shareholders, we believe the current environment presents attractive opportunities to reinvest capital into the business. Our focus is on growing our portfolio, expanding our funding platform and maintaining the flexibility to pursue strategic opportunities that management believes may create stronger long-term shareholder value."
Outlook
Management remains focused on disciplined portfolio growth, expansion of funding capacity, and continued improvements in operational efficiency. The Company believes its growing finance lease portfolio, diversified funding platform and expanding dealer network provide a strong foundation for future growth.
As traditional lending institutions continue to maintain tighter underwriting standards, management believes Solution Financial remains well-positioned to address demand from customers seeking flexible financing alternatives across the luxury and ultra-luxury automobile sectors.
Financial Results
Total revenues were $3,683,633 for the three months ended April 30, 2026, compared to $2,710,162 in the comparative quarter, representing an increase of $973,471 (36%). The increase was primarily attributable to higher vehicle sales income arising from opportunistic remarketing activity within the Company's existing lease portfolio.
Solution is reporting net income of $93,131 for the quarter ending April 30, 2026, compared to net income of $5,668 for the comparative period in 2025.
Adjusted net income, which is more reflective of actual cash earnings, for the quarter ending April 30, 2026, was $159,480(1) or $0.002 compared to $58,196 for the quarter ending April 30, 2025. Adjusted net income excludes the non-cash accretion expense related to right of use assets of $4,553, income tax provision of $34,000, amortization of $27,167 and accretion expense of $629.
Lease Portfolio
At April 30, 2026, Solution had 367 vehicles in its lease portfolio, a net decrease of 9 vehicles over the quarter to bring the total lease portfolio to $31.8 million.
At April 30, 2026 the average remaining lease term for the portfolio was 1.8 years, weighted by net book value for each vehicle. As of April 30, 2026, Solutions' 367 leases were generating annualized gross rental and lease cash flows of approximately $7.4 million.
About Solution
Solution Financial commenced operations in 2004 and specializes in sourcing and leasing luxury and exotic vehicles, yachts and other high-value assets. Solution works with a select group of luxury automotive and marine dealerships, providing lending solutions to clients who prefer more flexible leasing options than those traditionally offered by banks and other lease providers. Typical customers include new immigrants, business owners and international students who tend to upgrade their vehicles more frequently than traditional lease agreements allow. Solution Financial provides a unique leasing experience whereby it partners with its clients to help source limited edition and difficult to acquire vehicles as well as providing white glove services to clients for insuring, maintaining, upgrading, and reselling their vehicles.
Note 1- Non-IFRS Financial Metrics
Solution provides all financial information in accordance with International Financial Reporting Standards ("IFRS"). To supplement our consolidated financial statements presented in accordance with IFRS, we are also providing with this press release, certain non-IFRS financial measures, including Adjusted Net Income. In calculating these non-IFRS financial measures, we have excluded certain transactions that are not necessarily indicative of our ongoing operations or do not impact cash flows. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking information" as defined under applicable Canadian securities laws. This information includes, but is not limited to, statements concerning our objectives, our strategies to achieve those objectives, as well as statements made with respect to management's beliefs, plans, estimates, projections and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Although forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. Certain statements included in this press release may be considered a "financial outlook" for purposes of applicable Canadian securities laws, and as such the financial outlook may not be appropriate for purposes other than this press release.
The forward-looking information contained in this press release is made as of the date of this press release and should not be relied upon as representing Solution's views as of any date subsequent to the date of this press release. Except as required by applicable law, management and Solution's Board of Directors undertake no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
For further information please contact Sean Hodgins at (778) 318-1514.
ON BEHALF OF THE BOARD
(signed) "Bryan Pang"
Bryan Pang
President, CEO and Director
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301356
Source: Solution Financial Inc.
