Q2 2026 Propel Holdings Inc Earnings Call
Speaker #1: Good morning, everyone. Welcome to Propel Holdings' Q2 2026 financial results conference call. As a reminder, this conference call is being recorded on August 6, 2026.
Speaker #1: At this time, all participants are in listen-only mode. Following the presentation, we will conduct a Q&A session. Instructions will be provided at the time for research analysts to queue up for questions.
Speaker #1: And now, I will turn the call over to Devin Gallani, Propel's Vice President, Capital Markets and Investor Relations. Please go ahead, Devin.
Speaker #2: Thank you, operator. Good morning, everyone, and thank you for joining us today. Propel's Q2 2026 financial results were released yesterday after market close. The press release, financial statements, and MD&A are available on SEDAR+ as well as on the company's website, propelholdings.com.
Speaker #2: Before we begin, I would like to remind all participants that our statements and comments today may include forward-looking statements within the meaning of applicable securities laws.
Speaker #2: The risks and considerations regarding forward-looking statements can be found in our Q2 2026 MD&A and annual information form for the year-end in December 31, 2025, both of which are available on Cedar Plus.
Speaker #2: Additionally, during the call, we may refer to non-IFRS measures. Participants are advised to review the section entitled "Non-IFRS Financial Measures and Industry Metrics" of the company's Q2 2026 MD&A for definitions of our non-IFRS measures and the reconciliation of these measures to the most comparable IFRS measure.
Speaker #2: Lastly, all dollar amounts referenced during the call are in US dollars unless otherwise noted. I am joining the call today by Clive Ken Ross, Founder and Chief Executive Officer in Shelton City Koski, Founder and Chief Financial Officer.
Speaker #2: Clive will provide an overview of our Q2 results and observations on our consumer segment and overall economic environment before Shelton covers our financials in more detail.
Speaker #2: Before we open the call to questions, Clive will provide an update on Propel's growth strategy and outlook for the remainder of 2026. With that, I'll pass the call over to Clive.
Speaker #3: Thank you, Devin, and welcome, everyone, to our Q2 conference call. We delivered another record quarter, building on the strong momentum we established at the beginning of the year.
Speaker #3: Importantly, this quarter demonstrated that the strategic investments we've made over the past several quarters to expand our platform and serve more consumers across the credit spectrum are translating into measurable results.
Speaker #3: We expanded into new states, launched new products, and broadened our distribution channels, enabling us to reach more consumers than ever before. Supported by strong consumer demand, new customer originations increased by 30.4% year over year, and if including lending as a service, new customer originations increased by 43%.
Speaker #3: The growth contributed to record-ending CLAB of 639 million dollars, up 23% from a year ago, and record revenue of 179.6 million dollars—an increase of 26%.
Speaker #3: Our focus on disciplined execution resulted in a record quarterly adjusted EBITDA of $43.7 million and record quarterly adjusted net income of $24.8 million.
Speaker #3: Importantly, we achieved this growth while maintaining another quarter of stable credit performance. Provision for loan losses and other liabilities represented 50% of revenue, reflecting both the strength of our AI-powered underwriting platform and the resiliency of the consumers we serve.
Speaker #3: Before turning the call over to Shelton, I'd like to spend a few minutes discussing those consumers and what we're seeing across the broader economy.
Speaker #3: We often use the term "underserved consumer," but today that group represents a much larger segment of the population than it did just a few years ago.
Speaker #3: As we've discussed on previous calls, we continue to see a K-shaped economy emerge across our markets, with the middle of the credit spectrum shrinking.
Speaker #3: While many consumers have benefited from rising asset prices, a migrated into the super prime category, others—despite remaining employed and maintaining reasonable repayment histories—are finding an increasingly difficult time to access traditional sources of credit.
Speaker #3: According to TransUnion, since 2022, the share of subprime consumers has increased by approximately 7%, rising from 13.8% to 14.8% of the population. The lending market has changed for them.
Speaker #3: Many large financial institutions have tightened underwriting standards, leaving a growing number of consumers without access to the credit products they have historically relied upon.
Speaker #3: At the same time, demand for credit remains elevated, as households continue to manage the impact of higher everyday living costs. In fact, the Federal Reserve recently reported that credit rejection rates reached 33% in 2025, the highest level in a decade.
Speaker #3: Furthermore, in Q2 2026, the Federal Reserve Bank of New York found that consumer demand for credit reached its highest level since October 2021. And we see this dynamic in our own business with strong demand and stable credit performance.
Speaker #3: This is why our mission remains so relevant today. We believe our technology and AI-powered underwriting platform can responsibly expand access to credits by helping us better understand consumers who have been overlooked by traditional underwriting models.
Speaker #3: At the core of our business is a simple belief: these consumers are often misunderstood. They are resilient, they are employed, they are actively managing their finances, and they're taking practical steps to navigate the macroeconomic environment.
Speaker #3: Our own data reinforces this. In a recent survey of Propel and our bank partners' customers, the majority of respondents told us they expect to spend more on essentials like gas and groceries this summer.
Speaker #3: Rather than falling behind, the majority said they plan to reduce spending elsewhere. Looking more broadly across our markets, we continue to see an economic backdrop that is resilient.
Speaker #3: In the United States, unemployment remains low at 4.2%, with employment remaining strong across many of the industries where our customers work. Furthermore, our customers continue to benefit from steady wage gains and consumer spending remains strong.
Speaker #3: In the United Kingdom, inflation is moderating towards the Bank of England's targets, while unemployment has remained relatively stable. Canada, which represents approximately 2% of our business, continues to experience a softer labor market than the United States.
Speaker #3: However, inflation remains relatively low and despite ongoing trade uncertainty, the Canadian economy has remained more durable than many had anticipated. Overall, across the markets in which we operate, we continue to see healthy employment, moderate inflation, and resilience consumer demands.
Speaker #3: This is an environment we know well, and one in which our AI-powered underwriting platform has consistently performed well. To serve the increasing number of underserved consumers, and strengthen our business, we've spent the past several quarters investing in initiatives that expand both our addressable markets and our competitive advantages.
Speaker #3: These investments are increasingly contributing to our results. Lending as a service generated record revenue of 11.1 million dollars and increase of 150% year over year.
Speaker #3: Propel UK continued its strong performance, with revenue increasing 53% year over year in Q2 2026 to a record 17.3 million dollars. And Propel Bank continued expanding its operational capabilities, supporting lending and servicing activities in the US while enhancing long-term strategic flexibility.
Speaker #3: Overall, we are both we are proud of both our second quarter performance and the momentum we've built through the first half of the year.
Speaker #3: Reflecting this continued performance and strong financial position, our Board approved another increase to our quarterly dividend—to $1.02 per share Canadian, on an annualized basis—representing a 6% increase and marking our 12th consecutive quarterly increase.
Speaker #3: I will speak more about our growth plans in the outlook for the rest of 2026, but first, I will pass the floor over to Sheldon.
Speaker #2: Thank you, Clyde. And good morning, everyone. We continue to build on the strong momentum established earlier this year. Strong consumer demand together with the continued expansion of our platform supported another quarter of record results.
Speaker #2: Against this backdrop, total originations funded increased by 25% year over year, to $243.4 million. Representing another quarterly record. New customer origination growth was strong, increased increasing by approximately 34% year over year, to a record $111 million.
Speaker #2: And if including lending as a service, new customer originations increased by 43% year over year. The money key bank service program, in particular, continued to experience significant growth during the quarter, with ending CLAB increasing by approximately 79% year over year, and by 29% sequentially over Q1.
Speaker #2: New customer originations within this program increased by approximately 56% sequentially from Q1, driven by continued geographic expansion, the ongoing transition from legacy products, and the addition of new marketing partners and channels.
Speaker #2: Lending as a service also delivered another record quarter, with revenue increasing approximately 150% year over year, to a record 11.1 million dollars. In the UK, Quidmarket continued to grow significantly.
Speaker #2: Delivering another quarter of record originations in revenue. With revenue increasing in excess of 50% year over year, as the business further expanded, its market presence.
Speaker #2: The strong performance across these businesses drove ending CLAB to a record 639.1 million and increase of 23% year over year, and supported record quarterly revenue of $179.6 million, an increase of 26% year over year.
Speaker #2: The annualized revenue yield increased to $117% in Q2 from $114% in the prior year period. The increase primarily reflects the strong growth from new customer originations, the expansion of lending as a service, and the higher contribution from higher yielding programs, including Quidmarket and the monthly billing service program.
Speaker #2: Overall, we are pleased with the continued execution of our growth strategy during the quarter and the expansion of our platform across products, geographies, and customer segments.
Speaker #2: Turning to provisioning and charge ops, credit performance remained stable during the second quarter and was consistent with our expectations. Provision for loan losses and other liabilities represented 50% of revenue in Q2 2026, while net charge ops has a percentage of average CLAB was 12%.
Speaker #2: Both consistent with the prior year period, reflecting the strength of our AI-powered underwriting platform, disciplined approach, consumer resiliency, and continued strong portfolio performance. Notably, we achieved this performance while delivering overall record originations and growing ending CLAB by 23% year over year, demonstrating our ability to successfully balance significant growth with prudent risk management.
Speaker #2: Overall, credit performance was in line with our expectations and remains in line, as we move forward through Q3. Turning the profitability, our net income increased by 7% year over year, to 16.2 million dollars, while our adjusted net income increased 29% year over year, to a record 24.8 million dollars.
Speaker #2: Furthermore, diluted EPS increased by 7% to 38 cents, while adjusted diluted EPS increased 28% to a record 58 cents per diluted share. Adjusted return on equity improved to 35% on an annualized basis, compared to 32% in the prior year period, reflecting another quarter of strong earnings growth and efficient capital deployment.
Speaker #2: As discussed earlier, the significant growth of the money key bank service program over Q1 resulted in a larger non-cash adjustment to net income during the quarter.
Speaker #2: This adjustment was driven by the increase in the bank service program liability relating to the increase in the off-balance sheet receivables, associated with this program.
Speaker #2: In addition, the growth in the other programs and the corresponding increase in the stage one expected credit loss allowance also contributed to the higher adjustment to net income during the quarter.
Speaker #2: As a reminder, we believe that these adjustments, and consequently our non-IFRS metrics, provide a better representation of the portfolio's performance, particularly in a period of higher growth.
Speaker #2: Turning to operating expenses, we continued to invest in a number of strategic initiatives designed to support the company's long-term growth, including the ongoing build-out and expanded operations of Propel Bank, further scaling of our lending as a service platform, and ongoing investment in AI-powered capabilities, technology infrastructure, and customer acquisition initiatives.
Speaker #2: At the same time, we realized operating leverage across several areas of the business. Salaries, wages, and benefits declined to approximately 8% of revenue from 8.4% in the prior year period, while GNA declined to approximately 2% of revenue from 2.5%, reflecting the scalability of our platform as we continued to grow the business.
Speaker #2: Acquisition and data expense increased to 14.5% of revenue during the quarter, from 13% in the prior year period. Cost for funded origination increased to 11 cents, from 10 cents, while cost per new customer funded origination increased to 24 cents, from 22 cents.
Speaker #2: As we've noted in prior quarters, the year-over-year increases reflect continued investment in expanding and diversifying our customer acquisition platform through approximately 20 new marketing partners, together with broader investment across diversified marketing channels.
Speaker #2: In addition, the ongoing growth of Quidmarket contributed to the increase as we continue investing to expand its customer base and market position. Underwriting and data costs per funded loan also contributed to this increase as application volumes grew even more significantly than originations, reflecting the disciplined approach maintained with our bank partners.
Speaker #2: Effectively, we and our bank partners are evaluating more applications relative to each funded origination. Importantly, both cost for funded origination and cost per new customer funded origination improved sequentially for the first quarter of 2026.
Speaker #2: Reflecting early benefits from our expanding marketing platform and continued optimization of our acquisition strategy, we believe these investments support long-term growth while maintaining disciplined underwriting and stable credit performance.
Speaker #2: Processing technology and program servicing expense increased primarily due to the ongoing scaling of our lending as a service platform, which as we mentioned grew by 150% year over year.
Speaker #2: As a reminder, these expenses include customer acquisition and servicing costs associated with our lending as a service programs. Notably, lending as a service costs declined to 62% of lending as a service revenue from 76% in the prior year, demonstrating improving unit economics and operating leverage as the program scales.
Speaker #2: Our overall cost of debt also continued to improve, declining to 10.2% from 11.4% in the prior year period, reflecting enhanced credit facility pricing together with lower benchmark interest rates.
Speaker #2: Lower funding costs further enhanced the earnings power of the business while providing additional flexibility to support future growth in the shares. Overall, we delivered record adjusted net income and adjusted diluted EPS while continuing to invest in strategic initiatives across the business.
Speaker #2: Strong profitability was supported by record revenue, stable credit performance, and disciplined execution. Our investments are delivering results and will continue delivering attractive long-term revenue and earnings growth, and returns on equity.
Speaker #2: Turning to Propel's capitalization, we continue to maintain a strong financial position supporting the ongoing growth of our lending programs and strategic initiatives. At quarter end, we had approximately 97 million dollars of undrawn credit commitment capacity across our credit facilities with a debt to equity ratio of 1.2 times, providing significant liquidity and financial flexibility.
Speaker #2: Even though ending Sealab grew by approximately $50 million since year-end, our outstanding debt balance remained essentially unchanged at $332 million. This reflects the strong earnings and cash flow profile of the business, which enabled us to fund meaningful portfolio growth, an increasing quarterly dividend, and continued investment in our strategic initiatives without increasing our outstanding debt.
Speaker #2: We believe our strong financial position, growing earnings profile, and disciplined capital management position us well to continue funding future growth while delivering attractive long-term return for shareholders.
Speaker #2: I'll now turn the call back to Claude.
Speaker #1: Thank you, Sheldon. As we look ahead to the second half of 2026, we continue to see strong momentum across the business. Demand remains strong, credit performance remains in line with our expectations, and the investments we have made are translating into measurable results.
Speaker #1: In the US, we continue to expand our addressable market by introducing new products like Freshline, entering additional states, and adding new marketing and distribution partners.
Speaker #1: As our business grows, our marketing strategy is evolving alongside it. In addition to expanding our partner network, we're investing further up the marketing funnel through connected television, online video, and AI-optimized digital content to build awareness, strengthen our brand, and support customer acquisition.
Speaker #1: We're equally encouraged by the momentum we're seeing in lending as a service and expect strong growth going forward, supported by committed long-term capital partners.
Speaker #1: As the program continues to scale, lending as a service is becoming an increasingly meaningful contributor to Propel's revenue and profitability while expanding our capital alliance fee-based business segment, allowing us to serve more consumers and generate attractive recurring revenue.
Speaker #1: Internationally, almost two years since the acquisition of Quidmarkets, we continue to grow the business while leveraging Propel's expertise and infrastructure. Growth has been strong, and we expect it to continue.
Speaker #1: Supporting many of these initiatives is a continued... opera—sorry, this is a difficult word. It was difficult in the last quarter as well. Opera.
Speaker #1: Operationalization of Propel Bank. I'm pretty sure I said that wrong, but you know what I mean. Which provides long-term strategic flexibility as we scale.
Speaker #1: A banking license expands our capabilities and creates additional options for growth over time. As with every aspect of our business, that flexibility is supported by a strong commitment to regulatory compliance and disciplined risk management.
Speaker #1: Finally, I'd like to touch on AI. We've been an early investor in artificial intelligence, developing our AI-powered underwriting platform in 2015, well before AI became central to most business conversations.
Speaker #1: Today, we're applying the same philosophy across the entire organization. For example, AI supports our customer service representatives during In customer interactions , helping to drive efficiency and enable agents to serve more consumers in a day with loans originated per customer service representative , reaching an all time high this quarter , up roughly 30% year over year Our technology and engineering teams are also using AI to enhance propels proprietary platform , more efficiently .
Speaker #1: With AI contributing to almost 50% of net new code written quarter . The next phase of our AI strategy is focused on automating core operational technology and finance processes .
Speaker #1: This work is already underway . Ultimately , our objective is simple to ensure every estimate we make in AI translates into greater efficiency and stronger execution , and support .
Speaker #1: Long term profitable growth Although these initiatives span different parts of our business , they are all designed to achieve the same objective Expanding our platform , increasing our competitive advantages and creating long term shareholder value .
Speaker #1: In September , propel will celebrate its 15th anniversary , reaching that milestone reflects 15 years of disciplined execution , continuous innovation and the ability to successfully navigate the multiple economic cycles where we have grown every year since our inception , including a revenue and adjusted EPS , kegger of 43% and 64% , respectively .
Speaker #1: Since 2019 . It's also a testament to the extraordinary team we have built . The teams dedication , tenacity , and relentless focus on execution have transformed propel from a single product .
Speaker #1: FinTech company into the global fintech platform we are today . While the business has evolved significantly , our mission has remained constant . Expanding access to credit while delivering sustainable , profitable growth for our shareholders .
Speaker #1: The opportunities in front of us today are greater than at any point in our history More consumers than ever are locked out of the credit market , and we have built the platform to meet that need .
Speaker #1: With the strength of our platform , the resilience of the consumers we serve , and the exceptional team we've built , I believe propel is exceptionally well positioned for the quarters and years ahead With that operator , you may now open the line for questions .
Speaker #2: Thank you . Ladies and gentlemen , we will now begin the question and answer session . Should you have a question , please press star followed by the number one on your touchtone phone .
Speaker #2: You will hear a prompt that your hand has been raised Should you wish to decline from the polling process , please press star followed by the number two .
Speaker #2: And your first question comes from the line of Matthew Lee of Canaccord . Please go ahead .
Speaker #3: Hi , guys . Thanks . See , my question really nice quarter here . , just a couple items I want to touch on .
Speaker #3: Maybe we can start with this geographical expansion that you talked about . , can you find that opportunity in terms of , you know , what states you're going into the size of the addressable market and maybe just context with , you know , where was your market last year versus now ?
Speaker #3: And maybe where do you expect it to be in a couple of years as profile bank ramps ? Thanks
Speaker #1: Yeah . So , so Matt , first of all , thank you . Thank you so much for the kind . We're also very , very pleased with the quarter .
Speaker #1: You know , I think it was an incredibly strong quarter . And as I mentioned in my prepared remarks , we've really gone for a from a one product company in one market to now , you know , a global , , fintech powerhouse , , operate operating in the US in the UK and Canada .
Speaker #1: , our on balance sheet program , our off balance sheet program lending as a service . So all of that , , is , has created lots of different growth , and we're seeing that starting to really accelerate .
Speaker #1: , and we'll continue to accelerate over the course of the year and is also diversifying not only the growth drivers , but also the risk profile .
Speaker #1: , across the business , as you mentioned , , the additional , , geographies are also furthering that growth . We're in states today as a combination of our partnership , , with , with Collin Bank out of California , with the , with the launch of propel global Bank , it's allowed us to operate in new jurisdictions that even 12 months ago , we weren't operating in .
Speaker #1: And that geographic expansion is also fueling lots of growth . By the way . Expect more states to be added . , as we continue to as we continue to roll out the bank service program .
Speaker #1: , and as we also continue to expand , propel global banks , , propel global banks servicing across the platform , all of which is to say our addressable market is increasing for two reasons .
Speaker #1: Number one , as I mentioned , subprime segment has increased 7% since 2022 . That alone , on a macro perspective , is increasing the market .
Speaker #1: But we're expanding into new geographies and new products , which is why you . Saw roughly 43% new customer growth , including lending as a service , , for the most recent quarter , dramatically outperforming the natural growth in the market .
Speaker #1: We expect , if anything , , growth to accelerate , in Q3 and Q4 relative to the first half of the year
Speaker #3: That's really helpful . And then maybe on the cost side , I'm just trying to think about how margins should improve as it continues to grow .
Speaker #3: So can you just talk about maybe how much your current costs relate to the ramping up propel bank and lending and service versus what you consider to be kind of core operating expenses ?
Speaker #3: Just get an idea of how much you think about margins as , as a business scales . Yeah .
Speaker #4: Hey , Matt , thanks a lot for the question . And for the kind words . , as you , as you referenced , obviously there's a lot of initiatives that we've been rolling out and investing in over the last , I would say , you know , two , three quarters .
Speaker #4: ...that are actually paying off quite a lot right now. We started saying back in Q3 last year that we began investing deliberately in expanding our acquisition channels.
Speaker #4: , you started to see the uptick in our acquisition costs . In Q4 continued into Q1 . And I will note that , as I said in my prepared remarks , that our acquisition costs per per new customer dollar funded actually ticked down in , in Q2 from Q1 sequentially .
Speaker #4: So we're seeing some of that benefit already , , even on the cost , but , , most importantly , those investments are , are generating all this significant growth and the increase in the application volume that's driving , , the sizable growth that you're seeing , not only in Q1 now in Q2 as well .
Speaker #4: That's , , frankly , outpacing , , expectations . So those investments are paying , as Clive said , there's , you know , we're making , , the deliberate investments in rolling out propel Bank , which is , which is right on schedule .
Speaker #4: And it's helping to , , you know , to fuel the geographic expansion across the US and products product expansion , ultimately as well .
Speaker #4: The relationship with colon Bank that we invested in is leading to a lot of growth on the lending as a service side . And then to new states .
Speaker #4: So all of these investments are starting really to pay off . I think , from a margin . When you really boil it down from a margin perspective , , as you know , we have a seasonal business .
Speaker #4: So I think expect the margins in the second half of the year , , to be a little bit lower than what you saw in the first half of the year .
Speaker #4: This year . But with that said , they will be better than what we saw in the second half of last year . As , as you may recall , we had , , you know , we slowed down growth as a result of several factors last year in Q3 , , some additional , you know , upticks in delinquency that we saw back then , , and coupled with starting to make the investments that I just spoke about compress some margins .
Speaker #4: So absolutely expect margin expansion in the second half of this year relative to last year .
Speaker #3: That's great color , guys . Congrats on the quarter . And again , congrats on the 15 years of growth .
Speaker #1: Thanks so much , Matt . Thank you .
Speaker #2: And your next question comes from the line of Rob Gough of Bentham . Your line is now open .
Speaker #5: , good morning . And , , let me , echo Matt's comments in terms of congratulations on , the quarter and the 15 years behind it .
Speaker #5: Very well done is commendable
Speaker #1: Thank you so much , Rob . Really appreciate it . Tom . Tom . Man . It's amazing . It's been 15 years and I was reflecting yesterday .
Speaker #1: Amazing . It's been five years , almost five years since we've been a public company . I think I think this is the 20th time we're doing this
Speaker #3: I thought you guys .
Speaker #5: Were both teenagers when you started this , right I joke , more seriously , can you discuss the the pacing and the evolution of the money key direct to bank services ?
Speaker #5: You know , how do you see this states , , transitioning across the year and where you have transitioned , what have you seen in terms of the impact on loan growth yield , you know , co and , quality of credit
Speaker #1: Yeah . So , so , , it's a great question . And just , just to take a step back over here , transitioning from the money key states , , to the money key service program , the money , key states of the legacy states and that we started all the way back .
Speaker #1: , going back to our inception and to a large degree , those were , those were some of the states where we weren't seeing a growth .
Speaker #1: There were a smaller part of the business . And frankly , they weren't getting the TLC that they otherwise might have gotten if they'd been a larger , larger share of our business .
Speaker #1: And what we consciously decided to do as a result was transition them across to the money key service program , where ultimately we have a lot more distribution channels , marketing partners , and where there's a lot more focus from a risk perspective that has turned out to be obviously a really good move .
Speaker #1: Not only from our perspective , but also from the many , many more consumers that we're able to now as a result , the impact has been First of all , on aggregate , we've we've we've grown the volumes in those states and close to two X across the board .
Speaker #1: Some states a little bit more than that , some states a little bit less than that . But in those states you're seeing significant growth .
Speaker #1: And obviously that's one of the things that's really propelling the growth of the money . Key bank service program at the same time , because it's getting more attention by us and our bank partner there as well .
Speaker #1: It's getting access to what I would call even better enhanced risk models . So the dramatic acceleration you're seeing on the demand side over there .
Speaker #1: Is leading to even better relative credit performance in otherwise would have been the case . And as you know , Rob , that's at its early stages .
Speaker #1: , of transition . In fact , there's a couple more states still to transition across . So we expect , if anything , that to fuel more growth on a go forward basis .
Speaker #1: At the same time , the other thing fueling the bank service program is the addition of new states that we're in today that we weren't in , , as recently as 12 months ago .
Speaker #1: , that's fueling tremendous growth on top of the transition of money key to the money key bank service program . And if anything , expect that also to continue to accelerate and new states to be added to that program as well on a go forward basis .
Speaker #1: So we feel really good about our ability to continue to grow that program on a go forward basis . And it's one of the reasons that I'm confident in saying that we expect the growth of the business to accelerate in Q3 and even further in Q4 of this year relative to last .
Speaker #5: Thank you . Very good . , if I could have a follow up for Sheldon , , you had mentioned the strength in applications .
Speaker #5: Can you talk to the growth you were seeing in applications or inbounds and where your current screening parameters are
Speaker #4: Yeah . Hey , Rob , , thanks for the question . , you know , we're looking at in excess of 100,000 , applications every single day right now .
Speaker #4: And if you , if you follow kind of what we've been saying and reporting that's been growing , , quite significantly month over month , quarter over quarter and , , it's , it's , it's getting to a very high rate over here as we continue to expand the marketing channels , enter new states .
Speaker #4: , and just overall enhance our , our existing and programs and new products , etc. . So we're benefiting a lot from , from the increases in application volume and the investments are absolutely paying off on the marketing side and what that enables us to do .
Speaker #4: Rob , as we've talked about , right , we're kind of opening up the top of the funnel . We're seeing a lot more applications .
Speaker #4: And because of that , we can originate more with while keeping the same prudent underwriting posture . So if you kind of , you know , triangulate that if we're seeing a lot more application volumes , maintaining kind of the same risk parameters are acceptance rate , all else being equal , actually comes down a little bit .
Speaker #4: So , , you know , if you look at where we are today , you know , our acceptance rate is probably in the 6 to 7% range , , which is , you know , not , not too dissimilar from what we saw in Q1 , probably ticked down slightly .
Speaker #4: , but , you know , week over week , month over month , as we're , , expanding across these different programs , we're seeing the application volume increase .
Speaker #4: That's why right now we're not giving the specific number on the application volume . And actually saying it's well in excess of 100,000 a day right now .
Speaker #1: We , we actually , let me just layer on to that a little bit . We actually spent quite a bit of time discussing where , you know , where we should , , position that number and ultimately said , we're going to go with in excess of 100 , thousand applications a day , but Rob , if I were to take a step back and say what's , you know , what's driving such healthy demand , I mentioned it in my prepared remarks , but it's worthwhile mentioning again , because the fundamentals of what's driving this growth in our industry were stable credit performance .
Speaker #1: I think I set in for the certainly the long the medium term over here , if not the long term , as I mentioned , the subprime segment of the market in this case shaped economy has grown by about 7% since 2022 .
Speaker #1: Which is which is , you know , significant , significant growth in its otherwise stable economy from 30.7% to 14.7% . So that's one of the tailwinds .
Speaker #1: And we're capitalizing on that even more by adding more products and more geographies . So that's number one . Number two is you saw the strongest , , rejection rate last year in 2025 .
Speaker #1: I think over a decade . That's what the fed came up with in 2025 . And we've been expressing that on calls as well , that there's tightening ahead of us .
Speaker #1: And I think those two data points go hand in hand . They're not inconsistent with one another . And finally , , in Q2 , in Q2 alone , I think we saw the strongest demand from a credit perspective , the New York Fed came up with that data point .
Speaker #1: Since , , since Q3 of 2021 , all of that is fueling incredibly strong demand across the board with stable credit performance are there yesterday , Bank of America came out and said , not only do we all know the employment , unemployment rate is really low , but they came out yesterday and said that income levels of what I would call generally lower income consumers has actually risen faster than the general population .
Speaker #1: So all of those dynamics are leading to strong demand , stable credit performance . And because there's such strong demand , if anything , we could be really we in our bank partners can be really selective with the loans that we originate .
Speaker #1: While fueling tremendous growth as well as stable credit performance . If anything , as we're head into Q3 , which typically has higher delinquencies , say , than Q2 and Q1 are in our bank partners , orientation has been to tighten that underwriting more .
Speaker #1: So let's say , than Q1 and Q2 . So the growth that you're seeing heading into Q3 and continuing into Q3 , , is being achieved because of those variables .
Speaker #1: And from our personal perspective , a tighter underwriting posture
Speaker #5: Okay . Thank you very much .
Speaker #2: And your next question comes from the line of Suthan Sukumar of Stifel . Please go ahead
Speaker #6: Good morning , gents , and congrats on , a on a very solid earnings print . , , my first question I wanted to touch on revenue yields .
Speaker #6: , you know , obviously an impressive lift . , both sequentially , year over year . . Is this reflecting really more near-term , near-term benefits , which , you know , we should expect to normalize ?
Speaker #6: Or is this more reflective of a , of a , more of a longer term structural improvement ? , given the evolving mix of the business
Speaker #4: Thanks for the question . , this is , this is something that we've been , , messaging for the last couple of quarters , , it's a result of a number of different factors , you know , number one , we're doing more new customer originations now .
Speaker #4: , than we were doing previously . You're seeing that our new customer proportion of , of total originations has increased . , so when we're originating more new customers , they , generally speaking , have higher yields , , lending as a service is growing significantly .
Speaker #4: And now becoming quite meaningful . That contributes to the higher revenue yield our money bank service program is a , is a , serves a higher yielding segment of the , of , , of consumers .
Speaker #4: So that's driving the yield up and quit market also , which is , , continuing to demonstrate outpaced growth , , has , has higher yields as well .
Speaker #4: So all of those factors together are driving the yield up . I think last quarter , I , I said that , , expect yields to be in excess of 115% .
Speaker #4: The fact that we hit 117 , frankly , we , we beat our expectations . And that's , , in large part , obviously to , to the growth and all the other , all the other factors that I just mentioned .
Speaker #4: This , this will continue to then as these programs continue to show outpaced growth , , on a go forward basis , I think Clive mentioned , you know , expect accelerated growth in lending as a service going forward in the coming quarters , accelerated growth on , on the quid market .
Speaker #4: UK side , , and we , you know , given , given the way risk is performing right now and the way portfolios composed , we continue to expect to , , generate a higher proportion of new customer originations .
Speaker #4: So if you put all of that together , I would expect revenue yields to be somewhere between 115 and 120 . , for the remainder of the year .
Speaker #4: And , you know , probably , , being a bit conservative on the low end side , given we're at 117 right now , I expect that to tick up a little bit as we , as we go forward .
Speaker #6: Great , great . Perfect . Thanks for that color . , my second question , I wanted to touch on , , that capacity , you know , what we're seeing here is a sustaining pace of strong , , strong originations activity .
Speaker #6: You guys are increasing your , your dividend consistently , , from a balance sheet perspective , do you guys have sufficient funding room to support continued loan book growth
Speaker #1: You know , the , the answer to the question is , is absolutely . I mean , you touched on a couple of really key points over their , , I don't think they're lost on the investor community .
Speaker #1: I think they're actually quite well understood . But , , let me just let me just repeat that . , the , the , the debt balance since the end of the year has actually not grown , notwithstanding the significant growth we've seen in our C lab , the significant growth we've seen in our revenues and an ever increasing dividend , we actually haven't increased our debt balance .
Speaker #1: If anything , our liquidity has improved since then . , we've already mentioned we expect the growth , , top and bottom line .
Speaker #1: Certainly relative to 2025 to accelerate . , relative to the impressive growth we've already seen year to date . And we could do all of that .
Speaker #1: , and largely maintain the debt balance where it is . So from a liquidity perspective , we have more than enough liquidity , including growing liquidity .
Speaker #1: Actually , , that might be helpful in the event that there's any M&A opportunities on a go forward basis . Obviously , , I think we've got just shy of $100 million of liquidity at the moment .
Speaker #1: So from that perspective , there certainly is a cap . If we were to do an acquisition on how large that acquisition could be without needing some form of additional liquidity , but that's the only scenario that we currently contemplate where we would where we would potentially need additional additional liquidity
Speaker #6: Okay , okay , great . Thank you for that color . , and if I could just squeeze in one more guys on , , lending as a service , can you can you speak to , , kind of the level of demand interest ?
Speaker #6: , from , from investors from a , from a forward flow perspective , you know , you know , you're seeing strong growth here and you guys have , have telegraphed a 10% target for , for lending as a service revenues this year .
Speaker #6: But is there room to potentially accelerate that given some of this momentum that you're seeing here ?
Speaker #1: So , , let me let me start off by saying that , yeah , we , we continue to expect lending as a service to be approaching 10% of our revenues by the end of the year .
Speaker #1: And , , let me also emphasize that , you know , the , the overall growth of our business is going to accelerate between now and the end of the year .
Speaker #1: I've made that point a couple of times on this call . So when we say that we expect it to , you know , start approaching 10% by the end of the year , that's a that's of a growing business .
Speaker #1: So , you know , the 150% linear as a service growth that we saw in Q2 , as impressive as that is , , we expect that growth to also accelerate on a go forward basis .
Speaker #1: I know we've made that point , , a few times and to , to your question , , that's largely been fueled by , , the blue chip quality of the institutional investors who are now part of that forward flow purchasing arrangement and they're coming on board enthusiastically because they're getting the returns that we represented to them .
Speaker #1: They would get if they did this , as you can appreciate , in the earlier in the earlier days . And I think we're certainly still in our earlier days in this initiative .
Speaker #1: But even earlier days , , what we were telling investors they could expect over here , they trusted us based on our track record and credibility , but they didn't have the data themselves .
Speaker #1: They now have the data themselves . They now see what the returns are . And on the back of that , there's really strong demand , not only from our existing cohort of investors , but from new investors as well , who would like to get on board and be part of our forward , forward flow program .
Speaker #1: So the constraints which we had previously of onboarding new new capital partners is no longer there . We feel like we now have really solid long term investors from that perspective , which makes it much easier for us to forecast what that growth will be on a go forward basis .
Speaker #1: If you said to me , why do we expect the growth to accelerate ? It's not necessarily because of new capital partners , got more than enough as far as that's concerned .
Speaker #1: The reason it's going to accelerate is we're opening up new marketing channels , number one . Number two , we're we're opening up an additional states .
Speaker #1: We're opening up additional with additional products as well . And , and finally , not only are we doing all of that , which will fuel the growth , we're just getting better as a business in terms of optimizing that particular segment of the business .
Speaker #1: So not only are we doing all of that to fuel the growth of the business, but at the same time, as we've already demonstrated, there has been margin expansion in that business.
Speaker #1: And we expect there to be even more margin expansion on a go forward basis . I can tell you that , , I looked at the numbers yesterday for lending as a service .
Speaker #1: , in July and , , was really , really pleased to see the continued growth that we demonstrated in Q2 . If anything , as I've already said , accelerating into Q3
Speaker #6: Okay , great . That's an excellent update , guys . , congrats again on the quarter and thanks for taking my questions . I'll pass the line .
Speaker #1: Thank you so much .
Speaker #4: Thanks .
Speaker #1: I appreciate .
Speaker #7: It .
Speaker #2: And your next question comes from the line of Stefan Poland of Raymond James . Please go ahead .
Speaker #5: Thanks , guys .
Speaker #8: Good morning . , just , you know , when I look at quid market lending as a service through your I guess more recent product expansions , you know , approaching , you know , by the end of the year , maybe 20% of your business , , you know , outside of kind of like the core lending businesses that you had , I mean , is there , I'm not sure if there's a right word here , but a concentration , anything that , you know , you're fine for that to go to 20 to go to 25 to 30 .
Speaker #8: Is there , is there a point here ? And you mentioned a number of things . New investors wanting to come in forward flow expansion , more state like this Seems these two businesses seem because of their growth .
Speaker #8: And like that they may end up dominating dominating . But becoming very , very significant . Part of your business is over the next two years .
Speaker #8: Is that a fair comment
Speaker #1: It's a very fair comment . I think it's I think it's .
Speaker #7: A
Speaker #1: I think it's a very fair comment . And it's a , you know , I hadn't I hadn't thought about some of that the way you framed it up that that on a combined basis .
Speaker #1: , those will be about 20% of our business , by the end of the year . , I'm trying to do the quick math in my head over here .
Speaker #1: Might , even might even exceed 20% of our business . But I think , I think 20 is a good way to think about it .
Speaker #1: And these are businesses that didn't even exist from a propelled perspective . A couple of years ago , which goes back to my earlier comments about us building a real global platform over here .
Speaker #1: , with , with , with more growth drivers for the business . On the one hand , and on the other hand , diversification of , of , of credit risk as we expand into , into more markets .
Speaker #1: Steve , I'll tell you , I'll tell you how we think about it . We have got an exceptional team over here at propel the for 15 years later , the four co-founders are all intact .
Speaker #1: We've got a 20 plus person executive team over here who I could tell you is more motivated and more focused than ever . , and obviously the support of probably another 650 other incredible , , team members across Canada , , Puerto Rico and , and the , and the UK and what we're doing constantly is trying to maximize the growth .
Speaker #1: , taking into account risk of all of the different business units . We're watering all of them because I've learned what you order will grow .
Speaker #1: And if you said to me , do we have some kind of artificial line in the sand as to how big we want any of those business units to be ?
Speaker #1: I think the answer to that question is no , we don't . We all want them to be as big and large as they possibly can be , and to serve as many consumers as we can .
Speaker #1: The great news about where we are is we're still as as impressive as the growth has been , we're still a tiny portion of the overall market in all of the markets that we operate .
Speaker #1: So you're right to point out that, you know, two of our nascent businesses—Lending as a Service, as well as Propel U—are important.
Speaker #1: K and have got even faster growth in other areas of the business . But rest assured , all areas of our business has got significant growth lined up ahead .
Speaker #1: And you will , you will , you will continue to see that on a go forward basis .
Speaker #8: Okay . And I don't want to beat this yield discussion to death because , you know , it's very optimistic . On the new products , like lending as a service and quid market .
Speaker #8: You did mention some graduation , but you know , the 115 to the 120 again for 2026 , that seems pretty achievable . But but like , again , you have these businesses , the high margin ones growing , like what stops us from going north of 120 next year or one getting to 125 ?
Speaker #8: Is it ? You know , especially with quid market ? I mean , I don't know what the cap on lending as a service .
Speaker #8: I can't remember , but certainly these two businesses , maybe your highest margin , I'm guessing , but like what's stopping the 2027 number from from getting well over 120 .
Speaker #4: , it could Steve , you know , at the rate of growth that , , that , that , that we're going at in the higher proportion of the , of the overall revenues that , that these programs are representing and growing into , , just keep in mind also that , , this quarter actually .
Speaker #4: Q2 , we did , , new customer , our new customer proportion , which carries higher yields was , , you know , its highest proportion since Q4 of 2024 .
Speaker #4: So we're doing a lot more new customer originations right now . And those ultimately , when they stop , start at the top , we have a very important component of our , of our , of our portfolios , our graduation .
Speaker #4: So those consumers will ultimately start graduating . And the ones in our , in our existing portfolio will continue to graduate . , to better and better products , you know , ultimately , our goal as we've , as we've specified across all of our programs is to provide the right , , risk adjusted priced product to , , each and every underserved consumer .
Speaker #4: That's the ultimate goal to be present across the underserved credit spectrum . So , , expect additional risk based pricing . , so when you look at risk based pricing and graduation , that's kind of the counter , , to all of these higher yielding , , pieces , but we're not ready to give guidance yet for 2027 , but , but it's certainly , it certainly can exceed 120 .
Speaker #4: I'll kind of put it , put it that way . And as we get closer to to year end , we'll put out more concrete guidance on that number .
Speaker #4: But we're very excited . We're it's a it's a great development and obviously , , generating both , both growth and , and margin expansion as we move forward .
Speaker #8: Maybe I can get a .
Speaker #4: Quick .
Speaker #1: Steve , if I .
Speaker #4: If I .
Speaker #7: If .
Speaker #1: If I could just add just something to what Sheldon said and we made a conscious decision that we're going to just let one person speak on our side over here , but only , only later on when it's when it's an important point .
Speaker #1: But I do want to I do want to just just tell you what's going on kind of beneath the surface over here . You know , when we when we started in this industry , if you were underbanked or underserved consumer , you qualified for one product and that was the product that you qualified for more and more , what we've done , and I think we've led the industry in this , in this initiative is we've introduced risk based pricing with our bank partners for these underbanked and underserved consumers .
Speaker #1: What you don't necessarily see and what we don't speak about as much on this call is the expansion of our product set . And I could tell you that once you get into once you get into more of the details , the products or the customers that we're serving , the range of APIs is larger than it's ever been .
Speaker #1: We're expanding the product set, call it at a yield quite a bit, quite a bit below what our average yield is.
Speaker #1: , and that product set and those consumers in that segment of the market has grown a lot , either on the lending as a service side or alternatively , the stuff that's included in our , in our C lab .
Speaker #1: And by the same token , we've also expanded that product set for customers that are north of our average , north of our average yield .
Speaker #1: And I'm not now speaking about the contribution of lending as a service , nor propel UK . I'm speaking about about everything else .
Speaker #1: So there's way more consumers . There's a much wider range and we're doing much more risk based pricing . The money key bank service program , where you saw a significant amount of growth this quarter .
Speaker #1: And in fact , year to date for many of the reasons that I've already mentioned , generally speaking , the consumers who qualify for those loans have slightly more bruised credit profiles than , say , the consumers who qualify for credit .
Speaker #1: Fresh . As a result of that , the APIs and the and the the corresponding revenue yields tend to be higher . And as already mentioned , that's a much faster growing segment of our US business right now , which is also going to contribute to higher revenue yields on a go forward basis .
Speaker #8: Okay . Thanks , guys . I'll take the rest offline .
Speaker #1: Thanks so .
Speaker #4: Much .
Speaker #7: Thank you .
Speaker #2: And your next question comes from the line of Michael McCue of TD securities . Please go ahead
Speaker #8: Hi guys . Good morning . Good to be here for the first time on the call . I was just wondering what the very , , remarkable last growth quarter over quarter year on year .
Speaker #8: Are you able to provide any color on how much of that has come from the fresh line rollout in particular , versus products that were , already existing within the last ecosystem prior to 2026 ?
Speaker #4: Hey , Michael . Great , great to have you on . , , and on a go forward basis , we're really excited to have TD as part of the team over here .
Speaker #4: , it's coming from , from across the board . Michael . That's , that's the , that's the , that's the quick explanation .
Speaker #4: I mean , our existing lending as a service programs are scaling . , significantly . You know , we have adequate capital right now , as Clive outlined .
Speaker #4: And , , we're , you know , just optimizing across the board , investing in new marketing channels as we've discussed and expanding geographically as we add new states .
Speaker #4: And you've got fresh line , which , you know , frankly , has gone , , has , has , has surpassed , , our expectations at rollout .
Speaker #4: , so that's , I mean , again , that's , that's something we just started earlier this year . So it's pretty remarkable how well , that's performed , you know , in the future , what we may provide a little bit more color on , on the difference between the two .
Speaker #4: But but really , we look at it as , as one overall lending as a service program . And , , they're both going really , really well .
Speaker #4: And I'd say fresh line is ahead of expectations for sure
Speaker #8: Okay , great . Thank you . , and then another question and growth driver , just liquid market , obviously very solid year over year growth as well .
Speaker #8: And strong credit performance . We've previously discussed the sort of fragmented market in the UK and just wondering , you know , what , if any , constraints , , on further growth in the UK , what the competitive landscape looks like , and maybe an potential outlook there for the , the next year and a half or so
Speaker #4: Yeah , just at this stage , there's , there's no , there's no real constraints outside of just , you know , our self-imposed , , self-imposed constraints .
Speaker #4: I would say the market is , is very big . And , , and it's growing . , the competitive landscape , there hasn't been , you know , any major entrants over there .
Speaker #4: There's no dominant player . , we are able to , , hit these growth rates while maintaining very prudent underwriting . , on balance , as we've talked about before , the risk adjusted kind of spread over , over in the UK at this point is , is , is a little bit better because , , we're just able to keep really tight underwriting and cherry pick the very best consumers over there .
Speaker #4: , there are shifts in the market overall and we're growing , we're growing with them , you know , very much like North America , we're expanding our acquisition channels and investing on the marketing side .
Speaker #4: Part of that is being reflected in our higher acquisition costs in , in the UK , but that's yielding a lot of benefits .
Speaker #4: And I think , you know , year over year , certainly in Q3 and Q4 , , I expect , , our revenues to accelerate when you're , when you're looking at it relative to last year .
Speaker #4: So if anything , I think the growth in the UK , , given all the infrastructure that we've built and invested in , , expect the , the rate of growth to increase .
Speaker #4: So that's , that's really good . And I think , you know , what , we've also started kicking off over there is our full kind of technology and , , and underwriting , , analytics and platform integration and once we get that fully integrated , , which is really the last piece of the , of the full integration , the so far since acquisition has been just excellent and ahead of schedule .
Speaker #4: This is the last piece that we , that we've expected to integrate starting in the second half of this year . We're on pace to doing that .
Speaker #4: And that should fuel a step up in growth . Next year as well . So we're very excited about the UK market . And , you know everything's coming Okay .
Speaker #8: Great . Thanks very much . That's helpful . , that's all for me .
Speaker #4: Thanks , Michael .
Speaker #7: Thanks , Michael .
Speaker #1: Thank you . Michael . Michael , great to have you on the call . I didn't I didn't address any of your questions , but I know it's your I know it's your first , first time over here .
Speaker #1: And we're delighted to , , to have you guys as part of the part of the research team over here . Thanks so much
Speaker #2: And your next question comes from the line of Jeff Fenwick of ATB Cormark . Your line is now open
Speaker #9: Hi . Good morning everyone . , I'll try to keep it brief here . I know we're late in the call . , I wanted to circle back on on the commentary around the application growth .
Speaker #9: I mean , it's obviously a real positive to have , , that continued growth there that you spoke to , , we're certainly seeing the expense associated with that .
Speaker #9: And I know you're working to optimize it , but just wondering what your thinking strategically about this year , if you're generating more apps , but your acceptance rates is , is sort of falling , you know , one , one perspective might be that that's an inefficient spend , , I think the other maybe the flip side .
Speaker #9: And Clive , I think you may have spoken to this is maybe changing your risk based pricing and taking a bit more risk in the way you're product , you're offering out to the consumer .
Speaker #9: , how do you think about that balance there versus , you know , tweaking the , the approach to , you know , generating those applications versus the opportunity to capture more of them into the business .
Speaker #7: Yeah .
Speaker #1: It's all , it's all really kind of very insightful . , insightful questions . I think first and foremost , , we speak about profitable growth .
Speaker #1: We don't , we don't just speak about growth . So we always have an eye on profitable growth . And I think , and I hope if I , if our investor community understands one thing , it's that we won't just grow for the sake of growth .
Speaker #1: We need to see , we do need to see the right kind of credit performance . And as I've mentioned a couple of times , as we move into the back half of the year , particularly , , you know , Q3 , the early parts of Q4 , there is generally speaking , a little bit of elevated risk as our consumers are spending more with back to school summer vacations , all of that kind of stuff .
Speaker #1: So we've wanted to be proactive in partnering our underwriting . , and fortunately , because of the strong demand that we're seeing , we can be more selective as far as , , as far as that's concerned , , just , just bear with me .
Speaker #1: Just bear with me for a second over here . Just , just lost my train of thought in the middle , in the middle of that , in the middle of that conversation .
Speaker #1: , , just just bear with me over here
Speaker #9: And I guess , I guess the question was really around .
Speaker #7: Yeah . I get the question around .
Speaker #9: Are you generating , are you generating more than you need ? Right . You're not targeting the right customers . Maybe with some of .
Speaker #7: The , oh , sorry , sorry , sorry .
Speaker #1: I remember the second . I remember the second part of what I wanted to say . You're right . Insofar as , , marketing costs as a result of that , you are probably spending a little bit more on underwriting than what otherwise would be the case .
Speaker #1: Say , if the acceptance rate were to remain constant , that that said , if you look at our cost per acquisition on an on a new customer , as has actually declined quarter over quarter , and we expect it to continue to be refined .
Speaker #1: Part of that is because of exactly what I'm talking about . The refining of the underwriting . The other part of it is we've we've added 20 new marketing and channels this year .
Speaker #1: I mean , that's , that's an incredible amount of hard work by the marketing team in onboarding 20 new distribution channels . All of these distribution channels come on board .
Speaker #1: They need to be optimized both from a marketing perspective and risk perspective as well . So when you go a level deeper , that's also happening .
Speaker #1: So what that will probably translate to not necessarily this quarter , but over the medium term , what it will probably translate to is higher acceptance rates as we get more familiar with these new marketing channels and even more optimization and more refinement on the cost , cost per acquisition on a go forward basis , all of which is to say , I think that , you know , we've got lots of choice .
Speaker #1: And when you have lots of choice , particularly in this industry , you could be more selective , which is critical in driving profitable growth
Speaker #9: Okay . Thank you for that color . I'll leave it there .
Speaker #7: Thank you . Thanks , Jeff
Speaker #2: And there are no further questions at this time . I will now turn the call over to Clive Kinross for the closing remarks .
Speaker #2: Please continue .
Speaker #7: I think I think we've .
Speaker #1: Just broke a record today for our longest for our longest earnings call . So certainly want to thank you all for attending our call this morning .
Speaker #1: And I'd also like to thank our investors and our partners for their continued support of our vision of building a new world of financial opportunity .
Speaker #1: And as always , I would like to extend a really , really big thank you to the propel team in Canada . The UK and Puerto Rico for delivering these outstanding record results and achievements .
Speaker #1: On that note , have an excellent day and operator . You may end the call
