10-Q · April 13, 2026
Pineapple Financial reported Q2 revenue of $707,342 (down from $743,309 a year ago) and a Q2 loss per share of $(1.21) versus $(1.73) in the prior-year quarter. The six‑month period was dominated by a $23.0M non-cash…
Earnings analysis · 10-Q
PAPL earnings analysis
Filed July 20, 2026 · Our reading of the company's report
The latest report
Pineapple Financial reported Q3 revenue of $622,502, down 16.66% year over year, as mortgage-market softness reduced origination activity; subscription revenue increased to $206,529. GAAP net income of $25,250,083 and…
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Pineapple Financial reported Q3 revenue of $622,502, down 16.66% year over year, as mortgage-market softness reduced origination activity; subscription revenue increased to $206,529. GAAP net income of $25,250,083 and EPS of $0.99 were overwhelmingly driven by a $25,824,284 non-cash INJ fair-value gain rather than core mortgage operations. The company has materially shifted its balance sheet and risk profile into a leveraged digital-asset treasury strategy, with $49,400,549 of digital assets and $21,442,877 of loans payable; cash flow and capex data were not included in the supplied filing extract.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.99
- Operating margin
- 4005.4%
What stood out
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Core mortgage revenue declined 16.7% YoY
Q3 revenue was $622,502, down $124,401 (16.66%) from $746,903 a year earlier, reflecting lower mortgage activity. Mortgage volume fell $93,638,357 to $318,790,079 from $412,428,436.
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Recurring subscription revenue grew
Subscription revenue rose to $206,529 from $191,927 a year earlier, an increase of $14,602 (7.61%), partly cushioning lower origination-linked revenue.
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GAAP profit swung sharply positive
Net income reached $25,250,083, versus a $557,736 loss a year ago, and diluted EPS was $0.99 versus a $0.93 loss. The swing was driven principally by a $25,824,284 non-cash digital-asset fair-value gain.
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Operating result dominated by crypto gains
Operating income was $24,933,528 versus an operating loss of $696,531 a year earlier. Staking income added $399,134, while interest expense and bank charges rose $417,294 to $448,510.
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Balance sheet transformed by treasury strategy
At May 31, the company held $49,400,549 of digital assets, $12,002,619 of treasury-related loan receivables and $5,424,320 of restricted cash, against $21,442,877 of loans payable.
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Share repurchase program deployed
The company repurchased and cancelled 554,581 shares at an average $1.1644 per share during the quarter; $14,354,272 remained under the $15,000,000 authorization expiring December 31, 2026.
What to watch
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INJ concentration creates extreme earnings volatility
The new digital-asset treasury is highly concentrated: 7,561,000 INJ tokens had a fair value of $49,400,549 at May 31, 2026. A $25,824,284 quarterly fair-value gain demonstrates that reported earnings and equity are highly sensitive to INJ price moves.
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Leverage and collateral-call exposure
Loans payable were $21,442,877 and restricted collateral cash was $5,424,320 at May 31, 2026. Management warns that collateral calls or a forced liquidation could arise if INJ collateral values decline.
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Unidentified $1.9m token balance
Management identified 295,436 additional INJ tokens with estimated value of approximately $1,900,000 whose source, ownership and right to retain had not been confirmed. The tokens were excluded from recognized assets pending assessment and could require return, liability recognition, or accounting adjustments.
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Material weakness remains unremediated
Disclosure controls were ineffective at May 31, 2026 because of an unremediated material weakness from insufficient finance-function segregation of duties. The weakness includes controls over digital assets, staking income, custody reconciliations, restricted cash and financing arrangements.
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Mortgage-market softness pressures core business
Mortgage volume declined to $318,790,079 from $412,428,436 year over year, while gross billings declined to $3,038,778 from $4,400,201. Management cited housing affordability constraints, reduced transaction volumes and competitive pressures.
Management's outlook
No quantitative revenue or EPS outlook was provided in the 10-Q. Management expects agent productivity, data monetization, recurring revenue and capital efficiency initiatives to support a more scalable operating model over time, but provided no numerical targets.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.