Propel Holdings (TSX:PRL) is my top TSX stock pick right now. The fintech lender is down roughly 51% from its peak, trades at a deeply discounted valuation, offers a forward dividend yield of 5%, and just posted record quarterly results. I think that combination makes it one of the most compelling buy opportunities on the TSX today.
Here is why the numbers back that up.
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Propel reported a record quarter
In the first quarter of 2026, Propel posted revenue of US$166 million, an increase of 20% year over year. Total originations funded reached US$199 million in the quarter, another Q1 record and a 30% year-over-year increase.
New customer originations grew by nearly 40%, and the combined loan and advance balance (CLAB) ended the quarter at US$593 million, up 23% year over year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at US$42 million, also a record.
On the credit quality side, loan loss provisions came in at 45% of revenue. That is down significantly from 56% in the fourth quarter of 2025.
Management noted on the Q1 2026 earnings call that, one month into the second quarter, credit performance remains strong and is tracking in line with or slightly better than expectations.
Will the TSX dividend stock recover in 2026?
Propel serves non-prime consumers, people who have been shut out of traditional banks. According to TransUnion data cited on the earnings call, the bifurcation between prime and non-prime borrowers is accelerating. More consumers are being pushed out of mainstream credit and directly into the segment Propel serves.
The global fintech lending market is estimated at US$1 trillion. There are approximately 90 million underserved consumers across North America and the United Kingdom. Propel operates across 50-plus states and provinces in North America, and its U.K. brand QuidMarket is growing at more than double the volume it posted just a year ago.
Since 2019, Propel has grown revenue at a 43% compounded annual growth rate (CAGR) and adjusted net income at an 80% CAGR. The decline in the dividend stock reflects broader market anxiety and some misplaced comparisons to a struggling Canadian competitor.
As Propel CEO Clive Kinross clarified on the earnings call, Canada represents just 2% of total revenue. The U.S. and U.K. together account for the other 98%.
A growing dividend
Propel has raised its quarterly dividend for 12 consecutive quarters, starting in the fourth quarter of 2023. The board just approved another increase, bringing the annualized dividend to $0.96 per share, a 7% raise. Management has guided for approximately 50% growth in bottom-line results for full-year 2026 relative to 2025.
Analysts tracking Propel forecast adjusted earnings per share to grow from US$1.58 in 2025 to US$2.80 in 2027. If the fintech stock is priced at 10 times forward earnings, it could roughly double over the next 12 months.
Propel’s new growth drivers include Lending-as-a-Service (which grew 114% year over year in Q1), the Freshline product launched in partnership with Column Bank, and the buildout of Propel Bank in Puerto Rico, all of which are in early innings.
Lending-as-a-Service accounted for roughly 4% of revenue in Q1. Management expects it to approach 10% of a larger revenue base by the end of 2026.
Propel is an AI-driven lending platform with nearly 15 years of proprietary credit data, a growing international footprint, and a management team that still has meaningful skin in the game.
