10-Q - Pineapple Financial Inc. (0001938109) (Filer)

Mon, Apr 14, 8:31 PM (28 days ago)

**Pineapple Financial Inc. (PAPL) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue was $743,309, a decrease of 5.30% from Q1 2024 ($784,869). Six-month revenue increased by 11.78% to $1,512,236. - **Profit Margins:** The company reported a net loss of $595,449 for Q1 2025, an improvement of 9.43% from Q1 2024 ($657,456). The six-month net loss improved by 18.08% to $1,253,990. - **Cash Flow:** Net cash used in operating activities improved significantly to $836,228 for the six months ended February 28, 2025, compared to $1,566,642 in the prior-year period. - **Earnings Changes:** The company's earnings per share (EPS) improved to ($0.09) for Q1 2025 from ($0.10) in Q1 2024. **Key Metrics & Trends:** - **Mortgage Volume:** Increased by 17.61% to $690.002 million for the six months ended February 28, 2025. - **Gross Billing:** Increased by 15.23% to $9.33 million for the six months ended February 28, 2025. - **Commission Expense:** Increased by 15.92% to $7.81 million, reflecting higher transaction volumes. - **Operational Efficiency:** The company maintained stable gross margins and improved internal cost controls. **Uncertainties & Future Operations:** - **Economic Uncertainty:** The company faces challenges due to high interest rates, economic uncertainty, and potential trade policy changes. - **Going Concern:** The company's ability to continue as a going concern is subject to its capacity to achieve future profitability and secure necessary funding. - **Future Operations:** The company is exploring additional capital and financing sources, including director loans, to meet working capital requirements. **Management Discussion:** - **Strategic Focus:** The company is focused on enhancing profitability through selective onboarding of high-margin agents and reallocation of resources to more profitable channels. - **Cost Management:** The company has implemented cost optimization measures, including a leaner organizational structure and workforce efficiency improvements. - **Technology Investments:** The company continues to invest in digital infrastructure and proprietary software to drive efficiency and long-term scalability. **Ticker:** PAPL **Exchange:** NYSE American