TORONTO - Pineapple Financial Inc. (NYSE American: PAPL), a Canadian fintech firm specializing in mortgage brokerage services, has expanded its affiliate network in Ontario with the addition of six new mortgage brokerages. This move is part of the company's strategy to grow its market presence and service offerings across Canada.
The newly affiliated brokerages include CRE Capital Canada, Top Notch Financial, Tailored Finance Inc., PrimeRock Capital Corp., Reign Mortgage Group Inc., and Newcastle Financial. These firms, led by experienced principal brokers, have chosen to partner with Pineapple to leverage the company's technological tools and services while maintaining their brand identity.
In the 2023 fiscal year, Pineapple's affiliate network contributed to 36.8 percent of the company's total funded volume, reflecting a significant portion of its revenue. With the expansion from 19 to 25 brokerages, Pineapple anticipates a boost in both revenue and volume.
Christa Mitchell, Pineapple's Chief Strategy Officer, expressed enthusiasm about the new partnerships, highlighting the company's commitment to delivering advanced mortgage technology solutions. The CEO, Shubha Dasgupta, echoed this sentiment, expecting the collaboration to drive revenue growth in 2024.
Pineapple is also focusing on AI-driven technology to enhance the mortgage process for clients in Ontario, aiming to provide personalized mortgage solutions that meet the changing needs of borrowers.
The company, which boasts around 700 brokers in its network, is recognized for its innovative cloud-based technology and AI systems that support Canadian homeownership.
The information is based on a press release statement from Pineapple Financial Inc.
InvestingPro Insights
Pineapple Financial Inc. (NYSE American: PAPL) has been aggressively expanding its operations, but it's important for investors to consider the company's financial health and stock performance when evaluating its growth prospects. According to InvestingPro data, Pineapple Financial has a market capitalization of $9.41 million, indicating a relatively small player in the financial sector. Despite the company's growth efforts, it has experienced a significant revenue decline of 26.65% over the last twelve months as of Q2 2024.
Investors should note that Pineapple Financial has not been profitable over the last twelve months, with a negative P/E ratio of -3.13. The company's stock has also seen substantial volatility, with a six-month price total return of -50.19% as of the same period. This high price volatility is something potential investors should be mindful of, as it reflects the stock's sensitivity to market fluctuations.
On a more positive note, Pineapple Financial's liquid assets exceed its short-term obligations, suggesting that the company has maintained sufficient liquidity to meet its immediate financial commitments. This could provide some reassurance to investors concerned about the company's cash flow management.
For those looking for a deeper analysis, InvestingPro offers additional insights, including the fact that Pineapple Financial does not pay a dividend to shareholders, which could be a consideration for income-focused investors. There are more InvestingPro Tips available for Pineapple Financial Inc. at https://www.investing.com/pro/PAPL, including the company's cash burn rate and its performance relative to industry benchmarks. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, where you can explore a total of 6 InvestingPro Tips that could further inform your investment decisions.
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