Pineapple Financial Inc. Reports 15.2% Increase in Gross Billing and 3.60% Reduction in SG&A, with Continued Cost Cutting and Scalable Revenue Growth for the Six Months Ended February 28, 2025

Toronto, Ontario–(Newsfile Corp. – April 15, 2025) – Pineapple Financial Inc. (NYSE American: PAPL), a leading provider of tech-enabled mortgage brokerage solutions, today announced its unaudited financial results for the three and six months ended February 28, 2025. The company continues to demonstrate strong progress, with notable improvements in gross billings, significant operational efficiencies, and a clear path toward achieving profitability.

Six-Month Period ended February 28, 2025 Financial Highlights (Compared to Prior-Year Period):

Revenue increased 11.8% to $1,512,236, up from $1,352,858 for the six months ended February 29, 2024.

Gross billings rose 15.2% to $9.33 million, compared to $8.09 million in the prior-year period.

Commission expense increased 15.9% to $7.81 million, consistent with the growth in transaction volumes and agent activity.

Net loss improved to $1,253,990, compared to a net loss of $1,530,696 in the prior-year six-month period, driven by operating efficiencies and cost discipline.

Cash used in operating activities decreased significantly to $836,228, down from $1,566,642, representing a 47% improvement in cash flow.

SG&A expenses declined modestly by 3.6%, totaling $995,190 compared to $1,031,947 in the prior-year period, reflecting ongoing cost optimization efforts.

Three-Month Period Ended February 28, 2025 Financial Highlights (Compared to Prior-Year Period):

Gross Billings increased 19.6% to $4.52 million, reflecting continued agent engagement and transaction growth.

Net Loss improved by 9.4%, narrowing to $595,449 compared to $657,456 in the prior-year quarter, driven by lower operating expenses.

Salaries, Wages and Benefits decreased 27.7%, reflecting workforce optimization following the Company’s transition to public operations.

Advertising and Marketing Expenses declined 62.1%, as Pineapple shifted to more targeted and cost-effective campaigns.

SG&A Expenses decreased 3.3%, totaling $572,853, as part of broader cost containment measures.

Management Commentary:

“Our second-quarter results highlight the successful transition to an integrated platform, driving meaningful cost savings and enhancing our ability to scale,” said Shubha Dasgupta, CEO of Pineapple Financial. “Despite the headwinds in the Canadian real estate market, including trade uncertainty, our focus on operational efficiency, cost control, and platform innovation has resulted in significant progress. We are now in a position to continue growing revenue at scale while reducing expenses as we move toward profitability.”

Sarfraz Habib, CFO of Pineapple Financial, added, “We are very pleased with the reduction in net losses and the improvements in cash flow from operations. The transition to a fully integrated platform, coupled with our cost-cutting initiatives, positions us to grow revenue efficiently while continuing to reduce costs. These improvements ensure that we are well-positioned to achieve profitability in the near term, even amid a challenging macroeconomic environment.”

Business Outlook:

While purchases remain under pressure, mortgage volumes continue to rise due to the large base of Canadian mortgage renewals currently taking place, with this trend expected to continue over the next 24 months. This provides a strong tailwind for Pineapple, as we continue to scale our operations, capture market share, and benefit from the renewal cycle. Our fully integrated platform, combined with ongoing cost reductions, positions the company to grow revenue at scale while expenses continue to decline in the quarters ahead. We are confident that Pineapple is well-positioned for long-term growth and sustainable profitability.

Pineapple Financial Inc.
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
For the three month and six month ended February 28, 2025
(Expressed in US Dollars)

Three months ended
Six months ended

February 28, 2025
February 29, 2024
February 28, 2025
February 29, 2024

For the period
ended
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)

Revenue
$743,309
784,869
$1,512,236

1,352,858

Expenses

Selling, general and administrative

572,853
592,202

995,190

1,031,947

Advertising and Marketing

57,101
150,597

326,945

404,017

Salaries, wages and benefits

391,418
541,062

828,764

1,186,316

Interest expense and bank charges

100,005
28,450

273,812

49,881

Depreciation

242,181
160,999

429,645

315,184

Share-based compensation

–
–

–

–

Government Incentive

(21,301)(29,109)
(48,518)
(80,334)
Total expenses
$1,342,257
1,444,201
$2,805,838

2,907,011

Loss from operations

(598,948)(659,332)
(1,293,602)
(1,554,153)
Foreign exchange gain (loss)

(969)-

4,021

10,772

Gain (loss) on change in fair value of warrant liability

4,468
1,876

35,591

12,685

Loss before income taxes
$(595,449)(657,456)$(1,253,990)
(1,530,696)

Income taxes (recovery) expense

Net loss
$(595,449)(657,456)$(1,253,990)
(1,530,696)
Foreign currency translation adjustment

(184,795)1,727

87,556

(10,451)

Net loss and comprehensive loss
$(780,244)(655,729)$(1,166,434)
(1,541,147)

Loss per share – basic and diluted ($)

(0.09)(0.10)
(0.13)
(0.24)

Weighted average number of common shares outstanding – basic and diluted

9,026,001
6,475,300

8,760,507

6,475,300

The accompanying notes are an integral part of these condensed interim consolidated financial statements

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.

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.

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