Initiating at BUY: High Growth and ROE, and Manageable Regulatory Complexity

Research evidence excerpt

Initiating at BUY: High Growth and ROE, and Manageable Regulatory Complexity

TD Cowen Propel Holdings Inc.

Global Research July 14, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

We see an attractive runway for growth given Propel's relative size, opportunities to expand Upcoming earnings and financial guides

into new U.S. states, and U.K. growth. Propel has a strong track record of loan growth,

Positive updates around loan delinquencies

earnings growth, ROE, and we forecast this to persist through 2027, which should be positive

and credit performance

for valuation. Propel's underwriting model has proven itself out over recent years. We are

encouraged by the strategic focus on growing LaaS revenue and leveraging the recent license Execution against guidance

approval for Propel Bank to expand into new regions.

Base Case Assumptions Upside Scenario Downside Scenario

EPS growth of 31%/35% in 2026/2027 Revenue yield above 115% Revenue yield below 115%

Charge-off rate near the historical average Charge-off rate below the historical average Charge-off rate rises above the historical

of 49% average

Loan growth >20%

Revenue yield of ~115% Muted loan growth

Loan CAGR of 20% through 2027

Continued dividend increases

Price Performance Company Description

Propel Holdings Inc. is a financial technology company that provides credit solutions to

$40

underserved consumers in the United States, Canada, and the United Kingdom. Propel primarily

offers installment loans and lines of credit, which are marketed under proprietary brands.

35 The company’s business model is centered on a bank partnership structure, whereby Propel

partners with federally or state-chartered banks to originate loans and Propel provides

30 underwriting, analytics, and servicing capabilities.