Pineapple Financial Reports $25.3 Million in Third-Quarter Net Income as Company Enters Its Next Stage of Growth
Rhea-AI Summary
Pineapple Financial (NYSE American: PAPL) reported third-quarter net income of approximately $25.3 million, or $0.99 per basic and diluted share, versus a net loss of about $0.6 million a year earlier. Results were driven primarily by a non-cash $25.8 million fair value gain on digital assets, plus roughly $399,000 of staking income and $155,000 of interest income.
As of May 31, 2026, total assets increased to about $75.9 million and shareholders' equity to $51.6 million, supported by $49.4 million in digital assets, $12.0 million of treasury-related loan receivables, and $10.5 million of cash and restricted cash. For the first nine months of fiscal 2026, mortgage volume was approximately $1.15 billion (within about 3% of the prior year), subscription revenue rose 11.6% to roughly $625,000, salaries and benefits fell 39.5%, and Adjusted EBITDA was positive at about $479,000.
Positive
- Q3 net income about $25.3 million versus $0.6 million loss
- Shareholders' equity rose to approximately $51.6 million from $0.9 million
- Total assets increased to about $75.9 million from $5.4 million
- Digital assets reached roughly $49.4 million; staking income $621,000 YTD
- Nine-month subscription revenue grew 11.6% to about $625,000
- Salaries and benefits decreased approximately 39.5% year-to-date
Negative
- Nine-month revenue declined to about $2.05 million from $2.26 million
- Interest expense rose to about $1.08 million from $0.31 million
- Accumulated deficit widened to roughly $14.7 million
- Q3 profit largely from $25.8 million non-cash digital asset gain
- Common shares outstanding increased to 25.5 million from 1.3 million
News Explained
As of May 31, Pineapple reported 25.5 million shares outstanding and 24.2 million dollars of liabilities, changing the ownership base while retaining recorded obligations.
Pineapple Financial has reported its fiscal third-quarter and nine-month results through
The release describes a stronger capital base, while its balance-sheet table reports
The
The filing's balance sheet is the specific item to review for the composition of the reported
Sources and calculations
- Pineapple Financial third-quarter results release (2026-07-20)
- Pineapple Financial Quarterly Earnings Report, Form 10-Q (2026-07-20)
- Form 10-Q purpose (period)
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 20 | Buyback update | Positive | -1.4% | Repurchased shares and expanded digital asset treasury update preceded a negative reaction. |
| May 05 | AI initiative | Positive | -5.3% | AI recruiting and onboarding results preceded a negative 24-hour price reaction. |
| Apr 30 | Conference participation | Neutral | -18.3% | Investor and industry conference appearances preceded an 18.33% negative reaction. |
| Apr 22 | Buyback expansion | Positive | +44.9% | Share repurchase authorization increased to up to US$15 million. |
| Apr 13 | Q2 earnings | Negative | +4.0% | Quarterly loss and digital-asset fair-value loss preceded a positive reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent history showed four divergences between announcement sentiment and the subsequent 24-hour reaction, versus one aligned positive reaction.
Key Terms
digital asset treasury financial
staking income technical
adjusted ebitda financial
fair value gain financial
restricted cash financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Shareholders' equity grows to
Toronto, Ontario--(Newsfile Corp. - July 20, 2026) - Pineapple Financial Inc. (NYSE American: PAPL) ("Pineapple" or the "Company"), a technology-focused Canadian mortgage brokerage and fintech company, today reported its financial results for the three- and nine-month periods ended May 31, 2026. During the quarter, the Company continued executing its Digital Asset Treasury strategy while maintaining its core mortgage operations, further strengthening its balance sheet, growing recurring staking income and improved capital flexibility.
Pineapple reported third-quarter net income of approximately
Third-quarter results included a
Beyond the quarterly results, the Company believes the period marked an important milestone in Pineapple's evolution. At quarter-end, Pineapple had approximately
THIRD-QUARTER AND YEAR-TO-DATE HIGHLIGHTS
Net income of approximately
$25.3 million for the quarter, compared with a net loss of approximately$0.6 million in the prior-year period.Basic and diluted earnings per share of
$0.99 , compared with a loss of$0.93 per share in the prior-year period.Shareholders' equity increased to approximately
$51.6 million , compared with$0.9 million at the beginning of the fiscal year.Total assets increased to approximately
$75.9 million as of May 31, 2026, compared with$5.4 million as of August 31, 2025.Cash and restricted cash totaled approximately
$10.5 million at quarter-end.Digital assets totaled approximately
$49.4 million as of May 31, 2026.Digital asset staking activities generated approximately
$399,000 during the quarter and$621,000 during the first nine months of fiscal 2026.Nine-month mortgage volume remained resilient at approximately
$1.15 billion , compared with approximately$1.18 billion during the prior-year period.Nine-month subscription revenue increased
11.6% to approximately$625,000 .Salaries, wages and benefits decreased approximately
39.5% during the nine-month period, reflecting the Company's continued focus on cost management and operating efficiency.The Company generated positive Adjusted EBITDA of approximately
$479,000 for the first nine months of fiscal 2026.
MANAGEMENT COMMENTARY
"This quarter is about more than a single financial result. It represents the progress we have made in building a stronger, more efficient and more diversified Pineapple," said Shubha Dasgupta, Chief Executive Officer of Pineapple Financial.
"Our mortgage business remains the foundation of the Company. Despite a challenging Canadian housing market, we maintained resilient mortgage volumes, continued to grow subscription revenue and further streamlined our operating cost structure, creating a more scalable platform for long-term growth."
"At the same time, our Digital Asset Treasury strategy has strengthened our balance sheet, generated recurring staking income and enhanced our capital allocation capabilities. We ended the quarter with
"Just as importantly, we're building a business that is becoming more efficient every quarter. Between our cost optimization initiatives, continued investment in AI-driven automation and disciplined capital allocation, we believe Pineapple is positioned to become both more scalable and more profitable over time. Our current share repurchase program reflects that same discipline, as we continue allocating capital where we believe it can generate the greatest long-term value for shareholders."
"We believe Pineapple is entering its next phase from a position of financial strength. With two complementary operating platforms, disciplined capital management and a continued focus on technology, recurring revenue and operational efficiency, we believe we are well positioned to create long-term value for our shareholders."
A STRONGER FINANCIAL FOUNDATION
Pineapple's total assets increased to approximately
Shareholders' equity increased to approximately
Management believes this strengthened balance sheet enhances the Company's financial flexibility, supports continued investment in both its mortgage platform and Digital Asset Treasury strategy, and provides additional capacity to pursue long-term growth opportunities while maintaining a disciplined approach to liquidity and capital allocation.
Management also continued executing its share repurchase program during the quarter. The Company believes that repurchasing shares at current trading levels represents an attractive use of capital, particularly where management believes the Company's market valuation does not fully reflect the value of its underlying treasury assets and operating businesses. The Board continues to evaluate additional repurchases as part of its broader capital allocation strategy.
RESILIENCE IN THE CORE MORTGAGE BUSINESS
Pineapple's mortgage operations continued to demonstrate resilience despite a Canadian housing market characterized by affordability pressures, lower purchase activity and cautious consumer sentiment.
During the first nine months of fiscal 2026, mortgage volume totaled approximately
The Company also continued to diversify beyond transaction-based mortgage revenue. Subscription revenue increased
The Company also continues investing in artificial intelligence and agentic workflow capabilities across its technology platform. Early internal deployments are already improving workflow automation, reducing manual processes and enhancing operational efficiency. Management believes these initiatives will support both agent productivity and future operating leverage as deployment expands across the platform.
Management believes Pineapple's technology platform, national mortgage network and growing base of recurring revenue position the Company to benefit from improving market conditions while continuing to enhance operating leverage over time.
TWO COMPLEMENTARY OPERATING PLATFORMS
During fiscal 2026, Pineapple established its Digital Asset Treasury strategy to complement its mortgage operations and broader the Company's capital-allocation framework.
As of May 31, 2026, the Company held approximately
The strategy operates under the Company's Treasury Reserve Policy and is overseen by the Board of Directors through its Special Advisory Committee. Management continues to manage treasury activities alongside the Company's operating liquidity requirements, risk management framework and long-term capital allocation objectives.
Management believes the combination of a technology-enabled mortgage platform and a disciplined Digital Asset Treasury strategy creates a more diversified operating model with multiple sources of potential long-term value creation.
LOOKING AHEAD
Pineapple's priorities are centred on turning its stronger financial position into sustainable growth and improved operating performance.
The Company intends to focus on:
Growing recurring subscription revenue;
Increasing revenue generated per mortgage transaction;
Enhancing productivity through continued investment in Pineapple Plus and workflow automation;
Maintaining disciplined cost management and improving operating leverage;
Managing its Digital Asset Treasury strategy with a focus on liquidity, capital efficiency and prudent risk management; and
Evaluating additional opportunities to expand shareholder value through disciplined capital allocation.
Management's cost optimization initiatives continued to improve operating performance during the period, contributing to positive Adjusted EBITDA for the first nine months of fiscal 2026 and demonstrating the benefits of the Company's operational efficiency initiatives. The Company continues to evaluate additional efficiency initiatives across the organization, with further operational improvements expected to be implemented over the coming months.
Management believes the combination of improving mortgage market fundamentals, continued investment in technology and disciplined execution of the Company's Digital Asset Treasury strategy positions Pineapple to create long-term shareholder value.
FINANCIAL RESULTS
The Company's unaudited condensed interim consolidated financial statements for the three- and nine-month periods ended May 31, 2026, including comparative prior-year results, are included with this release and in the Company's Quarterly Report on Form 10-Q.
Pineapple Financial Inc.
Condensed Interim Consolidated Balance Sheets - Unaudited
For the nine month period ended May 31, 2026
(Expressed in US Dollars)
| As at: | May 31, 2026 | August 31, 2025 | ||||
| $ | $ | |||||
| Assets | ||||||
| Current assets | ||||||
| Cash | 5,089,707 | 2,117,371 | ||||
| Restricted cash | 5,424,320 | - | ||||
| Trade and other receivables | 452,244 | 92,223 | ||||
| Loans receivable - related parties | 12,002,619 | - | ||||
| Prepaid expenses and deposits | 524,555 | 110,001 | ||||
| 23,493,445 | 2,319,595 | |||||
| Investment | 9,819 | 9,733 | ||||
| Digital assets | 49,400,549 | - | ||||
| Right-of-use asset - net | 444,758 | 530,163 | ||||
| Property and equipment - net | 32,250 | 61,957 | ||||
| Intangible assets - net | 2,472,291 | 2,495,773 | ||||
| 75,853,112 | 5,417,221 | |||||
| Liabilities and Shareholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | 1,659,294 | 2,125,160 | ||||
| Loans payable - related parties | 21,442,877 | - | ||||
| Deferred revenue | 78,370 | 108,552 | ||||
| Warrant liability | 150,198 | 632,753 | ||||
| Derivative liability | 65,241 | - | ||||
| Loans from directors | - | 629,120 | ||||
| Current portion of lease liability | 146,338 | 138,859 | ||||
| 23,542,318 | 3,634,444 | |||||
| Deferred government incentive | 235,942 | 314,998 | ||||
| Lease liability | 455,547 | 561,100 | ||||
| 24,233,807 | 4,510,542 | |||||
| Shareholders' Equity | ||||||
| Common shares (*), no par value; unlimited authorized; 25,534,070 issued and outstanding shares as of May 31, 2026 and 1,340,941 as at August 31, 2025. | 62,378,305 | 11,621,468 | ||||
| Common shares to be issued | 88,136 | 88,136 | ||||
| Additional paid-in capital | 4,428,359 | 3,102,814 | ||||
| Accumulated other comprehensive loss | (532,087 | ) | (509,300 | ) | ||
| Accumulated deficit | (14,743,408 | ) | (13,396,439 | ) | ||
| 51,619,305 | 906,679 | |||||
| 75,853,112 | 5,417,221 |
Pineapple Financial Inc.
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
For the three month and nine month periods ended May 31, 2026
(Expressed in US Dollars)
| Three months ended | Nine months ended | ||||||||||||||||||||||||||
| May 31, 2026 | May 31, 2025 | May 31, 2026 | May 31, 2025 | ||||||||||||||||||||||||
| For the period ended | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||
| Revenue | 622,502 | 746,903 | 2,052,335 | 2,259,396 | |||||||||||||||||||||||
| Expenses and other income | |||||||||||||||||||||||||||
| Selling, general and administrative | 552,659 | 527,835 | 1,747,235 | 1,522,778 | |||||||||||||||||||||||
| Advertising and Marketing | 292,314 | 292,489 | 708,691 | 617,987 | |||||||||||||||||||||||
| Salaries, wages and benefits | 391,309 | 394,648 | 740,798 | 1,223,722 | |||||||||||||||||||||||
| Interest expense and bank charges | 448,510 | 31,216 | 1,077,031 | 306,267 | |||||||||||||||||||||||
| Depreciation and amortization | 255,023 | 219,355 | 719,173 | 648,991 | |||||||||||||||||||||||
| Fair value gain on Digital assets | (25,824,284 | ) | - | (2,809,970 | ) | - | |||||||||||||||||||||
| Staking income | (399,134 | ) | - | (620,849 | ) | - | |||||||||||||||||||||
| Government Incentive | (27,423 | ) | (22,109 | ) | (81,792 | ) | (70,657 | ) | |||||||||||||||||||
| (24,311,026 | ) | 1,443,434 | 1,480,317 | 4,249,088 | |||||||||||||||||||||||
| Gain/(Loss) from operations | 24,933,528 | (696,531 | ) | 572,018 | (1,989,692 | ) | |||||||||||||||||||||
| Foreign exchange (loss) gain | 186,281 | (6,018 | ) | 27,068 | (1,905 | ) | |||||||||||||||||||||
| Interest income | 155,480 | - | 369,539 | - | |||||||||||||||||||||||
| Financing cost - warrants | - | (164,703 | ) | (1,325,558 | ) | (164,280 | ) | ||||||||||||||||||||
| Financing cost -Equity line of credit | - | - | (1,500,000 | ) | - | ||||||||||||||||||||||
| Gain (loss) on derivative liability | 26,812 | - | 42,556 | - | |||||||||||||||||||||||
| Gain (loss) on change in fair value of warrant liability | (52,018 | ) | 309,516 | 467,408 | 341,765 | ||||||||||||||||||||||
| Gain/(Loss) before income taxes | 25,250,083 | (557,736 | ) | (1,346,969 | ) | (1,814,112 | ) | ||||||||||||||||||||
| Income taxes (recovery) expense | - | - | - | - | |||||||||||||||||||||||
| Net gain/(loss) | 25,250,083 | (557,736 | ) | (1,346,969 | ) | (1,814,112 | ) | ||||||||||||||||||||
| Foreign currency translation adjustment | (76,597 | ) | (34,703 | ) | 22,787 | 52,853 | |||||||||||||||||||||
| Net gain/(loss) and comprehensive (loss) | 25,173,486 | (592,439 | ) | (1,324,182 | ) | (1,761,259 | ) | ||||||||||||||||||||
| Gain/(loss) per share - basic | 0.99 | (0.93 | ) | (0.09 | ) | (3.50 | ) | ||||||||||||||||||||
| Gain/(loss) per share - diluted | 0.99 | (0.93 | ) | (0.09 | ) | (3.50 | ) | ||||||||||||||||||||
| Weighted average number of common shares outstanding - basic | 25,534,070 | 635,712 | 14,513,147 | 503,374 | |||||||||||||||||||||||
| Weighted average number of common shares outstanding - diluted | 25,580,507 | 635,712 | 14,513,147 | 503,374 | |||||||||||||||||||||||
NON-GAAP FINANCIAL MEASURES
This press release refers to Adjusted EBITDA and other non-GAAP financial measures used by management to provide additional insight into the Company's underlying operating performance.
These measures should not be considered substitutes for financial results prepared in accordance with U.S. GAAP and may not be directly comparable with similarly titled measures reported by other companies.
A reconciliation of the applicable non-GAAP measures to their most directly comparable U.S. GAAP measures will be included with the financial tables accompanying this release.
ABOUT PINEAPPLE FINANCIAL INC.
Pineapple Financial Inc. is a technology-focused Canadian mortgage brokerage and fintech company. Through its Mortgage Operations, Pineapple provides mortgage origination support, proprietary technology, subscription-based software, underwriting, insurance and related financial services to mortgage professionals and consumers across Canada.
During fiscal 2026, Pineapple expanded its business to include Digital Asset Operations as part of its broader treasury and capital-allocation strategy, creating two complementary operating platforms.
Pineapple's common shares trade on the NYSE American under the symbol PAPL.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements regarding Pineapple's growth plans, operating leverage, recurring revenue, technology development, mortgage-market opportunities, Digital Asset Treasury strategy, liquidity, future financial performance and ability to create long-term shareholder value.
Forward-looking statements are based on management's current expectations, assumptions and estimates and are subject to risks and uncertainties that could cause actual results to differ materially.
These risks include digital asset price volatility, liquidity and collateral requirements, custody and cybersecurity risks, regulatory developments, Canadian mortgage-market conditions, interest rates, housing affordability, access to financing and the Company's ability to successfully execute its growth and cost-management initiatives.
Additional risks are described in Pineapple's filings with the U.S. Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward-looking statements. Pineapple undertakes no obligation to update these statements except as required by applicable law.
INVESTOR RELATIONS CONTACT
Pineapple Financial Inc.
Investor Relations
Email: ir@gopineapple.com
Website: www.gopineapple.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/305815