Propel Holdings (PRL) jumped 15% on the back of its record Q3, which delivered $201M of revenue (up 32% Y/Y) on a 121% revenue yield - above the target range of 116-120%…

… with $261M of origination activity taking total loan/advance balances to $690M. Management expects that figure to be up ~24% versus last year…

… supporting growth in the core business, but nowhere near the trajectory PRL is seeing in its lending-as-a-service platform - which is tracking towards 10% of revenue…

… and should drive margin expansion over time, given the capital-light model nets the company a fee for its white-labelled solution (no balance sheet risk). With that, the top end of EBITDA guidance is in play (~$178M)…

… and ROE could improve from current levels…

… potentially driving a multiple re-rate, given its current valuation likely has some goeasy scar tissue baked in - even though they operate distinct business models.

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