EXCLUSIVE: Pineapple Adds Luxe Lending And Mortgage Magic, Eyes Strong Revenue Growth

On Tuesday, Pineapple Financial Inc. PAPL announced the addition of two new affiliate brokerages, Luxe Lending Corp. and Mortgage Magic, expanding its reach and capabilities across Canada.

The company said the expansion strengthens Pineapple’s position as a leader in the Canadian mortgage industry and aligns with its strategy to offer technology-enabled solutions to a broader audience.

In the 2023 fiscal year, Pineapple’s affiliate broker network accounted for 36.8% of the company’s total funded volume, generating the same percentage of overall revenue.

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With a network of 25 independently licensed firms that white-label Pineapple’s solutions, the company’s affiliates benefit from enhanced operational efficiencies and cutting-edge technology to better serve their clients.

Adding these two new affiliates further underscores Pineapple’s commitment to growth, positioning the company for substantial revenue and funded volume increases as the company continues expanding its partner network.

Pineapple also reported record agent growth in October, with an impressive 82% year-over-year increase.

The company said the growth momentum is supported by improving consumer sentiment—at its highest level in 30 months—and recent adjustments to interest rates, which have created an increasingly favorable environment for home buyers and refinancing clients.

These factors collectively position Pineapple for accelerated revenue growth as market conditions improve.

Chief Strategy Officer Christa Mitchell expressed excitement about Luxe Lending Corp and Mortgage Magic joining Pineapple. She noted that their decision to partner reflects a shared commitment to utilizing technology for superior client service. With Pineapple’s support, these affiliates gain access to comprehensive tools and resources to boost growth and enhance operational efficiency.

As Pineapple’s affiliate network grows, the company remains focused on leveraging AI and data-driven solutions to enhance the mortgage experience.

These innovations allow Pineapple to provide personalized mortgage options that address borrowers’ unique needs, further solidifying its role as a leader in the industry.

CEO Shubha Dasgupta expects substantial revenue and market share growth in the coming quarters, driven by an expanded affiliate network and favorable market conditions. The company aims to help partners succeed while offering Canadians efficient, tech-driven mortgage solutions to support their homeownership aspirations.

Price Action: At the last check on Tuesday, PAPL stock was trading higher by 4.09% at $0.69 premarket.

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