Pineapple Financial shares moved higher after the Toronto-based mortgage firm said it expects to achieve profitability in 2024.
“The company's growth in 2024 will also likely be buoyed by the industry forecast that, during the next 24 months, 60%, or $1.5 trillion, in the Canadian mortgage market is up for renewal,” Pineapple Financial CEO Shubha Dasgupta said in a statement accompanying the firm’s fiscal 2023 financial results.
“Couple that with the growth in population, need for housing starts, and the short-term cyclical nature of our market, and we are poised and ready for an exciting future."
For fiscal 2023, which ended on August 31, Pineapple Financial reported a net loss of $0.45 per share on revenue of $16.4 million, compared to a net loss of $0.45 per share on revenue of $20.4 million for the previous financial year.
The firm attributed the 19% year-over-year decrease in revenue to the Bank of Canada’s interest rate increases from 2.5% on September 1, 2022, to 5% as of August 31, 2023.
It noted that its 19% decline in revenue compared to a 26% drop in mortgage originations in Canada during the same period.
Shares of Pineapple Financial were up 6.9% at US$1.71 shortly before Friday’s opening bell.