Pineapple Financial Reports $6.4 Million Net Loss and Revenue Decline for Quarter Ended November 30, 2025

Pineapple Financial Inc. reported its financial results for the three months ended November 30, 2025, revealing a net loss of approximately $6.4 million, a significant increase from a net loss of $0.7 million during the same period in 2024. The company's revenue for the quarter was approximately $721,727, down from $766,074 in the prior year, reflecting a decrease of about 5.8%. This decline in revenue was attributed to ongoing softness in mortgage origination activity, despite stable subscription and underwriting revenue streams. The company’s total operating expenses surged to approximately $7.3 million, primarily due to a non-cash loss of $6.1 million related to the fair value of its Injective digital asset holdings.

In terms of operational metrics, Pineapple Financial reported a mortgage origination volume of approximately $457.1 million for the quarter, an increase of 7.8% compared to $424.1 million in the same period last year. The company’s gross billings decreased to approximately $4.1 million from $4.4 million, while subscription revenue increased to $207,746, reflecting continued adoption of the Pineapple Plus technology platform. The company also noted a significant reduction in advertising and marketing expenses, which fell by approximately 54% as part of its cost-control measures.

Pineapple Financial's balance sheet showed total assets of $10.6 million as of November 30, 2025, compared to $5.4 million at the end of the previous fiscal period. The increase was primarily driven by the recognition of a loan payable of $11.98 million, which significantly contributed to the rise in total liabilities to $16.1 million. The company’s accumulated deficit also widened to $19.8 million, up from $13.4 million, indicating ongoing financial challenges. The company’s cash position decreased to $1.48 million from $2.12 million, reflecting the impact of significant investing activities related to its digital asset strategy.

Strategically, Pineapple Financial has initiated a digital asset investment program, investing approximately $11.9 million in Injective digital assets during the quarter. This move is part of a broader strategy to integrate innovative financial technologies into its operations. The company has also entered into a secured borrowing arrangement with FalconX Bravo Inc., which has provided additional liquidity to support its investment activities. Management is focused on securing further capital through the Injective Digital Asset Treasury Initiative and pursuing additional financing arrangements to address liquidity concerns.

Looking ahead, Pineapple Financial anticipates that improved mortgage application volumes and lead-generation activity, particularly in renewal and refinance transactions, may support a gradual recovery in mortgage activity as interest rates stabilize. However, the company continues to face substantial doubt regarding its ability to continue as a going concern, given its recurring operating losses and negative cash flows. Management's plans to improve liquidity include cost-containment measures and securing additional financial resources, although there is no assurance that these initiatives will be successful.