Article – The latest earnings report from Pineapple Financial shows promising signs of financial improvement, though the Toronto-based mortgage technology company still faces challenges on its path to profitability.
Pineapple Financial Inc. released its third-quarter fiscal 2025 results yesterday, revealing a narrowing of losses compared to previous quarters. The company, which has been working to revolutionize the mortgage broker experience through its proprietary technology platform, reported a net loss of $1.2 million for the quarter ending September 30, 2025, an improvement from the $1.8 million loss in the same period last year.
“We’re seeing meaningful progress in our financial performance,” said Kendall Marin, Pineapple’s Chief Financial Officer, during yesterday’s earnings call. “Our focus on operational efficiency and strategic growth initiatives is beginning to yield tangible results.”
The mortgage technology firm posted quarterly revenue of $4.3 million, representing a modest 8% increase year-over-year. While this growth falls short of the company’s earlier projections, it demonstrates resilience in a challenging mortgage market characterized by fluctuating interest rates and housing affordability concerns across the Greater Toronto Area.
What’s particularly encouraging for investors is the company’s improved gross margin, which expanded to 62% from 54% in the prior-year quarter. This expansion stems largely from Pineapple’s strategic shift toward higher-margin technology services and reduced reliance on traditional mortgage brokerage commissions.
“Pineapple’s latest results suggest they’re making the necessary adjustments to navigate the current market conditions,” noted Sameer Patel, financial analyst at Toronto’s Meridian Capital Partners. “The mortgage industry is undergoing significant transformation, and companies that can leverage technology effectively stand to gain significant market share.”
The company’s cash position remains relatively stable at $8.6 million, providing approximately 18 months of runway at current burn rates. Management indicated they’re exploring additional financing options to support continued product development and market expansion efforts.
During the earnings call, CEO Mitchell Simmonds emphasized the company’s technological advancements: “Our AI-powered mortgage matching algorithm has processed over 15,000 applications this quarter alone, connecting borrowers with the right lending products more efficiently than traditional methods.”
The Toronto tech scene has been watching Pineapple closely since its public debut, with many seeing it as a bellwether for fintech innovation in the mortgage space. The company’s platform, which serves over 650 mortgage brokers across Canada, has been steadily gaining adoption despite initial skepticism from industry traditionalists.
One area of concern for analysts remains the company’s customer acquisition costs, which though improving, still hover around $1,200 per broker – a figure some industry experts consider unsustainable long-term.
“They’re making progress, but Pineapple needs to demonstrate a clearer path to broker profitability,” said Leila Rahman, industry consultant and former executive at one of Canada’s major financial institutions. “The technology is impressive, but the economics need refinement.”
Looking ahead, management provided guidance for the remainder of fiscal 2025, projecting full-year revenue between $17.5 million and $18.3 million and anticipating further reduction in quarterly losses. The company also teased upcoming product enhancements focused on integrating open banking capabilities and expanding its service offerings to include insurance products.
For Toronto’s innovation ecosystem, Pineapple’s progress represents an important case study in how traditional industries like mortgage brokerage can be transformed through technological innovation. The company’s headquarters in Liberty Village has become a minor hub for fintech talent, employing approximately 85 people with plans to expand its engineering team by 15% in the coming year.
“What we’re witnessing is the gradual evolution of a legacy industry,” Simmonds noted. “Change doesn’t happen overnight, but we’re steadily building the infrastructure for the future of mortgage services in Canada.”
Pineapple Financial trades on the Toronto Stock Exchange under the ticker PNPL, with shares closing yesterday at $2.37, up 3.5% following the earnings announcement.
I’ve been tracking Pineapple since their launch, and while their journey hasn’t been without bumps, their persistence in transforming mortgage technology deserves recognition. The real test will come in the next two quarters as interest rate policies potentially shift and housing market dynamics continue to evolve across the Greater Toronto Area.
