Pineapple Financial Shows Early Results, Increasing Gross Billing Margin with Potential to Grow from 7.94% to 34.8% Through Innovative Counsellor Program

Toronto, Ontario--(Newsfile Corp. - July 31, 2024) - Pineapple Financial Inc. (NYSE:PAPL) ("the Company" or "Pineapple"), a leading mortgage fintech with a nationwide network of partner brokerages and agents, is pleased to report significant results from its Pineapple Counsellor Program. Today, we are pleased to announce the initial results since the program's inception. A key success indicator is the significant increase in higher-margin revenue. Our average margin outside the program stands at 7.94%, while within the program we have achieved an impressive margin of 34.8%.

Over the past 28 months, the Canadian mortgage industry has faced significant challenges, including high inflation and rising interest rates. Despite these headwinds, Pineapple Financial has maintained a growth trajectory, successfully navigating market turbulence and outperforming competitors, as reflected in our past two quarters of 60% and 20% year-over-year revenue growth. This success has been achieved by focusing on expansion, growth, and enhancing margins. One initiative instrumental in achieving these goals is the Pineapple Counsellor Program.

The Pineapple Counsellor Program provides new agents with personalized mentoring from trained and professional counsellors. This structured support system has proven effective in increasing revenues and enhancing net income margins over time, making it a cornerstone of Pineapple's profitability strategy.

"This substantial margin growth will positively impact the company's bottom line as the share of revenue from this department continues to expand," said Shubha Dasgupta, CEO of Pineapple. "With a focus on profitability, Pineapple is taking definitive steps to ensure long-term stability for shareholders and stakeholders alike."

To date, the Pineapple Counsellor Program has funded over $87.5 million in volume USD, representing 2.53% of our overall volume. Incorporating the program's revenue into our financials has moved our overall margins from 7.94% to 8.68%.

Notable Program Achievements:

• 43,000 New Client Opportunities Leads Uploaded: Given the short-term and cyclical nature of the Canadian mortgage market, this presents a tremendous revenue growth opportunity for Pineapple. The customer lifetime value of a "closed lead" is approximately $68,700 over the life of their mortgage. Our platform, optimized with data analytics and AI-driven customer service tools, enhances lead conversion and maximizes customer retention.
• 130% Higher Close Rate: Agents enrolled in the program achieved a 130% higher close rate than their non-enrolled counterparts in Fiscal 2023. This increase in efficiency allows us to focus more on higher probability close transactions, generating greater overall revenue for the company.

"Agents in the Pineapple Counsellor Program leverage our innovative technology, proprietary training, and in-house underwriting team through practical, hands-on learning and support," said Kendall Marin, President and COO of Pineapple. "This approach enhances their ability to convert and close deals more efficiently, boosting their overall career sustainability."

Christa Mitchell, CSO at Pineapple, emphasized the program's impact: "The Pineapple Counsellor Program is built on effective management and cutting-edge technology, fostering a culture of accountability for both Counsellors and Counsellor Agents. The significant increase in close rates underscores the program's effectiveness."

As Pineapple Financial continues to prioritize profitability and margin growth, the Pineapple Counsellor Program exemplifies our commitment to innovation, efficiency, and long-term shareholder value.

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About Pineapple Financial:

Pineapple is an award-winning fintech and leading Canadian mortgage brokerage network. It focuses on the long-term success of agents and brokers and 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.

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

SOURCE: Pineapple Financial Inc. (NYSE:PAPL)

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and 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 financial needs, including the expectation that the Offering will be successfully completed. 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 you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and 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.

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

Related Links:
https://gopineapple.com
http://empoweredbypineapple.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/218354