Pineapple Financial Reports Improved Net Loss and Revenue Growth for Six-Month Period Ending February 28, 2025

Pineapple Financial Inc. reported its financial results for the six-month period ending February 28, 2025, revealing a net loss of $1.254 million, a 24.3% improvement from a loss of $1.531 million during the same period last year. The company's revenue for the period increased to $1.512 million, up 11.8% from $1.353 million in the prior year, driven by a strategic focus on enhancing profitability and onboarding high-margin agents. The company originated $690 million in residential mortgage loans, marking a 17.6% increase compared to the previous year.

In terms of operational metrics, Pineapple Financial's gross billings rose to $8.648 million, reflecting a 15.2% year-over-year growth. Commission expenses, which correlate with transaction volumes, also increased to $7.813 million, up 15.9% from the previous year. The company’s selling, general, and administrative expenses decreased by 3.6% to $995,190, attributed to disciplined cost management and operational efficiency. Notably, salaries, wages, and benefits saw a significant reduction of 30.1%, reflecting the company's efforts to streamline its workforce.

Pineapple Financial has made strategic moves to enhance its market position, including the issuance of 1.284 million pre-funded warrants and common shares, raising approximately $1 million in gross proceeds. The company also secured a short-term loan of $599,130 from directors to support working capital needs. As of February 28, 2025, the company had cash and cash equivalents of $493,607, a decrease from $1.34 million at the same time last year, primarily due to investments in technology and working capital.

The company continues to navigate a challenging economic landscape characterized by high interest rates and inflationary pressures, which have impacted mortgage origination volumes. Despite these challenges, Pineapple Financial remains optimistic about future growth, citing early signs of recovery in the real estate market and ongoing improvements in consumer sentiment. Management is focused on maintaining operational efficiency and exploring additional capital sources to support its strategic initiatives.

Looking ahead, Pineapple Financial acknowledges the uncertainties posed by evolving trade policies and market conditions but remains committed to its long-term growth strategy. The company is actively monitoring these factors and is prepared to adapt its operations to ensure continued resilience and profitability in the face of potential challenges.