The company's operating margin remains deeply negative at -140.1% as of 2026Q1, reflecting a failure to scale revenue relative to overhead costs.
| Sales/Revenue | 9.58M | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 1.15M | 1.34M | 252.2K | 172.14K | 1.24M | 2.87M | 1.52M |
| Gross Margin % | 12.04% | 44.92% | 9.38% | 6.88% | 34.45% | 17.82% | 41.92% |
| Gross Profit Growth % | - | 432.03% | 46.51% | -86.12% | -56.82% | 89.41% | - |
| Operating Expenses | 25.79M | 4.29M | 4.08M | 2.95M | 3.96M | 3.11M | 1.29M |
| OpEx % of Revenue | - | 143.62% | 151.62% | 118.05% | 109.87% | 19.27% | 35.57% |
| Selling, General & Admin | 1.45M | 2.25M | 3.24M | 3.13M | 3.7M | 0 | 0 |
| SG&A % of Revenue | - | 75.46% | 120.58% | 125.05% | 102.76% | - | - |
| Research & Development | 0 | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - |
| Operating Income | -24.64M | -2.95M | -3.82M | -2.78M | -2.72M | -233.52K | 229.77K |
| Operating Margin % | -257.25% | -98.7% | -142.24% | -111.18% | -75.42% | -1.45% | 6.35% |
| Operating Income Growth % | - | 22.93% | -37.49% | -2.43% | -1063.03% | -201.63% | - |
| EBITDA | -23.74M | -2.09M | -2.99M | -2.34M | -2.46M | -177.97K | 262.66K |
| EBITDA Margin % | -247.85% | -69.83% | -111.04% | -93.54% | -68.32% | -1.1% | 7.26% |
| EBITDA Growth % | -895.51% | 30.15% | -27.56% | 4.85% | -1282.26% | -167.76% | - |
| D&A (Non-Cash Add-back) | 900.35K | 862.1K | 838.84K | 441.16K | 255.87K | 55.55K | 32.89K |
| EBIT | -24.78M | -3.29M | -4.01M | -2.75M | -2.72M | -235.72K | 229.77K |
| Net Interest Income | -3.3M | -336.12K | -93.47K | -56.32K | -94.2K | -26.08K | 0 |
| Interest Income | 214.33K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.52M | 336.12K | 93.47K | 56.32K | 94.2K | 26.08K | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - |
| Pretax Income | -28.32M | -3.64M | -4.1M | -2.81M | -2.81M | -261.8K | 214.78K |
| Pretax Margin % | -295.68% | -121.82% | -152.57% | -112.26% | -78.04% | -1.62% | 5.94% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | -27.12K | 23.95K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 10.36% | 11.15% |
| Net Income | -28.32M | -3.64M | -4.1M | -2.81M | -2.81M | -234.68K | 190.84K |
| Net Margin % | -295.68% | -121.82% | -152.57% | -112.26% | -78.04% | -1.46% | 5.28% |
| Net Income Growth % | -640.48% | 11.31% | -46.05% | 0.04% | -1097.39% | -222.98% | - |
| Net Income (Continuing) | -28.32M | -3.64M | -4.1M | -2.81M | -2.81M | -234.68K | 190.84K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | -277.8K |
| EPS (Diluted) | -21.06 | -5.46 | -0.57 | -0.39 | -0.39 | -0.03 | 0.02 |
| EPS Growth % | -25343.9% | -857.89% | -46.15% | 0% | -1092.66% | -273.94% | - |
| EPS (Basic) | - | -5.46 | -0.57 | -0.39 | -0.39 | -0.03 | 0.02 |
| Diluted Shares Outstanding | 1.34M | 665.82K | 7.15M | 7.18M | 7.18M | 7.18M | 7.56M |
| Basic Shares Outstanding | 1.34M | 665.82K | 7.15M | 7.18M | 7.18M | 7.18M | 7.56M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Liquidity and operational burn
As reported in recent financial statements, Pineapple Financial's gross margin has exhibited extreme volatility, fluctuating from a low of -1.8% in 2024Q1 to a peak of 47.3% in 2025Q2, suggesting significant inconsistency in the company's ability to retain commission revenue after accounting for agent-related payouts.
The wide variance in gross margins indicates that the company's core brokerage model lacks structural stability, likely due to shifting commission structures or variable agent productivity. Investors should monitor whether these margins can stabilize at the higher end of the observed range, as current fluctuations complicate the predictability of the firm's unit economics.
Based on the provided income statement data, Pineapple Financial's operating margin reached a concerning -140.1% in 2026Q1, highlighting a failure to achieve meaningful operating leverage as the company continues to incur substantial overhead costs that far outpace its current gross profit generation capabilities.
The inability to scale operating income alongside revenue suggests that the company's fixed cost base, likely tied to its technology platform and administrative infrastructure, is currently too heavy for its transaction volume. This persistent operating deficit implies that the firm is not yet benefiting from the economies of scale typically expected in a digital brokerage model.
According to historical income statements, the company reported a net loss of $19.5 million in 2026Q2, a significant deterioration from previous periods, which suggests that the quality of earnings is currently compromised by high cash burn and a lack of sustainable profitability in its core operations.
The widening gap between gross profit and net income points to substantial non-operating or administrative expenses that are eroding shareholder value. Without a clear path to narrowing these losses, the current earnings profile appears highly speculative and dependent on external capital rather than organic operational success.
As indicated by the financial data, the company's net margin of -121.82% and limited cash reserves present a significant risk, suggesting that the current growth strategy may be unsustainable without a fundamental shift in cost management or a rapid increase in mortgage origination volume.
Short-term observers may focus on the high burn rate as a primary indicator of potential insolvency risks if the company cannot reach a break-even point quickly. The reliance on capital-intensive growth in a high-interest-rate environment warrants further investigation into the company's long-term viability and potential for future shareholder dilution.
Quick answers to the most common questions about buying PAPL stock.
Pineapple Financial Inc. (PAPL) reported a net loss of $3.6M for the fiscal year ending 2025.
Pineapple Financial Inc. (PAPL) reported an operating income of $-2.9M, resulting in an operating profit margin of -98.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Pineapple Financial Inc. (PAPL) generated $1.3M in gross profit for the year, representing a gross profit margin of 44.9%. This demonstrates the company's core pricing power and production efficiency.