Pineapple Financial Reports $25.3 Million in Third-Quarter Net Income as Company Enters Its Next Stage of Growth

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 $25.3 million, or $0.99 per basic and diluted share, for the fiscal third quarter, compared with a net loss of approximately $0.6 million, or $0.93 per share, during the same period last year. Third-quarter results included a $25.8 million non-cash increase in the reported value of the Company's digital asset holdings, along with approximately $399,000 in staking income and $155,000 in interest income. Beyond the quarterly results, the Company believes the period marked an important milestone in Pineapple's evolution. At quarter-end, Pineapple had approximately $75.9 million of total assets, $51.6 million of shareholders' equity and approximately $10.5 million of cash and restricted cash, providing a significantly stronger capital base from which to execute its long-term strategy. Management believes Pineapple now operates with two complementary growth platforms: its established Canadian mortgage business and its Digital Asset Treasury strategy. 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 $51.6 million of shareholders' equity, approximately $75.9 million of total assets and approximately $10.5 million of cash and restricted cash." "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 au...