Pineapple Financial Announces Operational Transformation Strategy and AI-Empowered Sales Expansion; Initiatives Include Reduction in Annualized Costs by More Than $2.5 Million and Launch of AI-Powered Agent Growth Platform

Rhea-AI Summary

Pineapple Financial (NYSE American: PAPL) announced a 2026 operational transformation centered on AI deployment, workforce realignment and a national sales expansion. The company says it has implemented $1.33 million of annualized savings to date and targets >$2.5 million in permanent annual expense reductions.

Pineapple reports a >60% headcount reduction, a >50% cut in monthly cash burn, and an AI-driven agent onboarding program aiming to contact 40,000+ agents across Canada.

Positive

• $1.33M annualized savings implemented by March 31, 2026
• Targeted permanent expense reductions of more than $2.5M annually
• Workforce realignment reduced monthly cash burn by over 50%
• AI-enabled onboarding program targeting 40,000+ agents nationwide

Negative

• Total headcount reduced by over 60%, a substantial workforce cut that may affect operations

Key Figures

Annualized cost reductions: More than $2.5 million Cost savings implemented: $1.33 million (C$1.8 million) Headcount reduction: Over 60% +2 more

5 metrics

Annualized cost reductions More than $2.5 million Permanent structural reset of cost base

Cost savings implemented $1.33 million (C$1.8 million) Annualized savings expected in run-rate by Mar 31, 2026

Headcount reduction Over 60% Part of workforce realignment and AI-enabled model

Monthly cash burn cut More than 50% Workforce realignment impact

Target agent outreach More than 40,000 agents AI-driven search and onboarding initiative across Canada

Market Reality Check

Price: $0.6501 Vol: Volume 111,136 is roughly...

normal vol

$0.6501 Last Close

Volume Volume 111,136 is roughly in line with the 20-day average of 119,035 (relative volume 0.93). normal

Technical Shares at $0.6501 are trading below the 200-day MA of $2.65, reflecting a weak longer-term trend.

Peers on Argus

Peers show mixed moves: CNF -3%, GHI -0.39% vs. BETRW +3.86% and SNFCA +0.11%, s...

Peers show mixed moves: CNF -3%, GHI -0.39% vs. BETRW +3.86% and SNFCA +0.11%, suggesting stock-specific trading rather than a unified mortgage finance move.

Previous AI Reports

1 past event · Latest: Apr 25 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Apr 25	AI operations update	Positive	-3.3%	Announced leveraging AI to improve mortgage agent onboarding efficiency by 92%.

Pattern Detected

Past AI-related communication coincided with a negative next-day move, suggesting the market has not rewarded this theme historically for PAPL.

Recent Company History

Recent news centered on Pineapple’s digital asset treasury strategy, investor outreach, and Q1 2026 results, including sizeable INJ holdings and new fiscal 2026 guidance. Those updates produced mixed reactions, from a 45.36% jump on earnings to declines after some DAT updates. Against that backdrop, today’s AI-driven operational restructuring and cost reductions extend the pivot toward technology and efficiency, contrasting with earlier focus on digital assets and capital markets activity.

Historical Comparison

-3.3% avg move · Historically, Pineapple’s AI-themed news saw an average -3.3% next-day move, indicating prior invest...

AI

-3.3%

Average Historical Move AI

Historically, Pineapple’s AI-themed news saw an average -3.3% next-day move, indicating prior investor skepticism around AI-driven operational updates.

AI usage has progressed from improving agent onboarding to a broader, AI-enabled operating model and sales expansion strategy.

Market Pulse Summary

This announcement outlines a significant operational reset, with more than $2.5 million in annualize...

Analysis

This announcement outlines a significant operational reset, with more than $2.5 million in annualized cost reductions, over 60% headcount cuts, and cash burn lowered by more than 50%. Management emphasizes an AI-enabled operating model and a plan to engage over 40,000 agents, aiming to boost scalability and revenue. Investors may watch progress on unit economics, the recurring operating scorecard metrics, and how prior AI initiatives translate into sustained growth and profitability.

Key Terms

artificial intelligence, ai, ebitda

3 terms

artificial intelligence technical

"A key driver of these changes is the integration of artificial intelligence across core..."

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

ai technical

"Building on its AI-enabled operating model, Pineapple is also launching an AI-driven search..."

Artificial intelligence (AI) is technology that enables machines to mimic human thinking and learning, allowing them to analyze information, recognize patterns, and make decisions. For investors, AI matters because it can improve how businesses operate, create new products, or identify opportunities faster and more accurately than humans alone, potentially impacting company success and market trends.

ebitda financial

"on a clear path toward higher EBITDA margins and near-term breakeven on a cash-flow basis"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

AI-generated analysis. Not financial advice.

AI Deployment, Agent Onboarding Automation and Permanent Expense Reductions Expected to Improve Operating Leverage and Earnings Durability

Workforce Realignment Significantly Reduces Monthly Cash Burn by More Than 50%

Strengthened Core Mortgage Platform Positions Company for Scalable Growth, AI-Driven Search and Sales Expansion Initiative to Reach 40,000+ Agents Nationwide

Toronto, Ontario--(Newsfile Corp. - March 10, 2026) - Pineapple Financial Inc. (NYSE American: PAPL) ("Pineapple" or the "Company"), a leading fintech platform, today announced a comprehensive operational restructuring as part of its 2026 Core Mortgage Platform strategy. When complete, the structural reset will materially lower the Company's fixed cost base, strengthening operating leverage as Pineapple enters its next phase of execution.

To date, approximately $1.33 million (C$1.8 million) of these annualized cost savings have been implemented and are expected to be reflected in the Company's run-rate by March 31, 2026, with the remaining savings currently being executed. As part of the restructuring, Pineapple is realigning the organization around a leaner, AI-enabled operating model, including a reduction in total headcount by over 60%, alongside reductions across professional services, software, marketing, and other operating expenses. Collectively, these initiatives are expected to reduce annual expenses by more than $2.5 million (C$3.4 million). The program represents a permanent structural reset of the Company's cost base.

"We have structurally lowered our operating cost base entering 2026," said Shubha Dasgupta, Chief Executive Officer of Pineapple Financial. "This is a disciplined reset of our expenses designed to improve operating leverage and earnings durability. Importantly, these changes reflect the implementation of AI technology to replace legacy functions. With this leaner operating model in place, we are positioned on a clear path toward higher EBITDA margins and near-term breakeven on a cash-flow basis, while maintaining the capacity to scale efficiently as volumes recover."

A key driver of these changes is the integration of artificial intelligence across core business functions. Pineapple has deployed AI systems to automate and enhance processes previously performed through legacy staffing structures, including workflow automation, data analysis and reporting, and customer and agent engagement. By embedding AI into its operating infrastructure, the Company has structurally lowered its cost structure while preserving platform capability and scalability.

Building on its AI-enabled operating model, Pineapple is also launching an AI-driven search and sales agent onboarding program designed to accelerate network expansion and platform adoption. The Company is leveraging artificial intelligence to identify, engage and onboard high-performing mortgage professionals more efficiently, while enhancing the recruitment funnel through automated outreach and qualification workflows. As part of this initiative, Pineapple plans to proactively connect with more than 40,000 agents across Canada to expand its national footprint and drive scalable revenue growth. By combining AI-powered operational efficiencies with systematic sales expansion, Pineapple is positioning its platform for disciplined, technology-enabled growth.

With the restructuring largely complete, the Company is focused on execution and unit economics. Pineapple has implemented a recurring operating scorecard to track cost per funded loan, funded loans per operations FTE, software spend per agent, and workflow efficiency metrics.

About Pineapple Financial Inc.
Pineapple Financial Inc. 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, fluctuations in the market price of INJ, including risks related to volatility in the price of INJ, the timing and execution of Digital Asset Treasury capital deployment, the treatment of designated cash balances, and the assumptions underlying non-GAAP metrics such as mNAV, and any associated impairment charges that we may incur as a result of a decrease in the market price of INJ below the value at which INJ is carried on our balance sheet; changes in the accounting treatment relating to our INJ holdings; the Company's financial condition, customer acceptance of our INJ treasury strategy, and other factors discussed in the "Risk Factors" section of the registration statements, and periodic reports 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.

Media Contact:
KCSA Strategic Communications
Kristin Cwalinski
pineapple@kcsa.com

Investor Relations:
KCSA Strategic Communications
Jack Perkins
pineapple@kcsa.com

Follow us on social media:
Instagram: @pineapplemortgage @empoweredbypineapple
Facebook: Pineapple Mortgage
LinkedIn: Pineapple Mortgage
X: @PAPLpineapple

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/287804

FAQ

How much cost savings did Pineapple Financial (PAPL) implement and when will they appear in the run-rate?

Pineapple Financial implemented $1.33 million of annualized savings, expected in run-rate by March 31, 2026. According to Pineapple Financial, the remaining restructuring savings are being executed to reach a total reduction exceeding $2.5 million annually.

What workforce changes did Pineapple Financial (PAPL) announce on March 10, 2026?

Pineapple Financial announced a reduction in total headcount by over 60% as part of its restructuring. According to Pineapple Financial, this realignment supports a leaner, AI-enabled operating model and contributed to a >50% reduction in monthly cash burn.

What is Pineapple Financial's (PAPL) AI-driven agent onboarding program and its scale?

The program uses AI to identify, engage and onboard mortgage agents and plans outreach to 40,000+ agents across Canada. According to Pineapple Financial, AI automates qualification and outreach to accelerate network expansion and platform adoption nationwide.

How will the operational reset affect Pineapple Financial's (PAPL) path to breakeven?

The company expects the reset to improve operating leverage and approach near-term cash-flow breakeven through smaller fixed costs. According to Pineapple Financial, embedding AI and permanent expense cuts aims to support higher EBITDA margins as volumes recover.

What operating metrics will Pineapple Financial (PAPL) track after the restructuring?

Pineapple Financial will track cost per funded loan, funded loans per operations FTE, software spend per agent, and workflow efficiency metrics. According to Pineapple Financial, a recurring operating scorecard will monitor unit economics and execution against efficiency targets.