Pineapple Financial Reports 34.55% Revenue Increase and Improved Net Loss for Quarter Ending November 30, 2024

Pineapple Financial Inc. reported its financial results for the three-month period ending November 30, 2024, revealing a revenue of $766,074, a significant increase of 34.55% compared to $569,355 in the same period last year. The company’s net loss for the quarter was $656,894, an improvement from the loss of $897,757 recorded in the prior year. This positive shift in financial performance is attributed to the company's strategic focus on enhancing profit margins by onboarding high-margin agents, which has contributed to a favorable revenue mix.

The company experienced a notable increase in gross billing revenue, which rose from $4.405 million in the previous quarter to $4.791 million, reflecting a year-over-year rise of 5.05%. This growth comes despite ongoing challenges in the mortgage origination market, which has been affected by high interest rates and economic uncertainty. Pineapple Financial's mortgage volume also increased to $424.076 million, up from $386.777 million in the same period last year, indicating a recovery in demand for its services.

Operationally, Pineapple Financial has made significant strides, including the expansion of its broker network, which now includes over 600 brokers. The company has also focused on enhancing its technology platform, MyPineapple, which has improved user engagement and retention. The company’s selling, general, and administrative expenses decreased by 25.48% to $417,406, reflecting its commitment to cost control and resource optimization in response to challenging market conditions.

In terms of financing, Pineapple Financial raised $1.188 million through the issuance of shares and pre-funded warrants, alongside a short-term loan of $525,000. These funds are intended to support ongoing investments in proprietary software development and operational capabilities. As of November 30, 2024, the company reported cash and cash equivalents of $619,581, a decrease from $2.341 million a year earlier, primarily due to strategic investments aimed at enhancing its competitive position in the mortgage industry.

Looking ahead, Pineapple Financial remains cautiously optimistic about its growth trajectory, particularly as the real estate market shows signs of recovery. The company is focused on maintaining its operational efficiency while exploring additional capital sources to support its strategic initiatives. However, it acknowledges the potential challenges posed by fluctuating market conditions and interest rates, which could impact its future performance.