Pineapple Financial Inc (PAPL) Q1 2025 Earnings Report

Pineapple Financial Inc (PAPL) reported Q1 2025 results that underscore an early-stage, growth-oriented business model in the Canadian mortgage technology and brokerage space. Revenue for the quarter was $4.758 million, up year-over-year by 14.11% but down sharply from the prior quarter’s level of $15.614 million, yielding a QoQ revenue decline of 69.53%. Gross profit was $329,709, producing a gross margin of 6.93%. The company posted an operating loss of $519,009 and a net loss of $656,894 ($0.092 per share). The YoY improvement in revenue sits alongside margin compression, as the business continues to invest in platform development and go-to-market activities. The balance sheet shows meaningful intangible assets (approx. $2.28 million) and a leveraged, yet modest debt position (short-term debt around $649k with no long-term debt). Cash at period-end was $619,581, and operating cash flow was negative at $663,597 for the quarter, with financing activity providing liquidity of $1.19 million to support operations. Management commentary, as available, provides limited explicit forward guidance; investors should monitor the pace of platform monetization, cost discipline, and the cyclicality of mortgage volumes in Canada. Overall, the narrative indicates a transition phase where top-line growth is encouraging but profitability and liquidity management require further improvement to sustain operations without ongoing financing.