10-Q — Pineapple Financial Inc.

Pineapple Financial Inc.'s first quarter 2026 results were dominated by a strategic shift into cryptocurrency investments that resulted in substantial fair value losses. The Canadian fintech company, which operates mortgage brokerage and insurance services, reported a net loss of $6.4 million for the three months ended November 30, 2025, compared to $0.7 million in the prior year period. The dramatic increase was primarily driven by a $6.1 million non-cash fair value loss on Injective digital assets that the Company acquired during the quarter for approximately $11.8 million. Revenue declined 5.8% to $721,727, reflecting continued softness in the Canadian mortgage market despite some recovery from Bank of Canada interest rate cuts. However, mortgage origination volume actually increased 7.8% to $457.1 million, driven by renewal and refinance activity. The Company demonstrated operational discipline with significant cost reductions: advertising and marketing expenses fell 54.4%, salaries and benefits decreased 62.8%, and general administrative costs declined 5.4%. These reductions reflected workforce optimization, reduced discretionary spending, and greater operational efficiency. Subscription revenue from the Company's Pineapple Plus platform increased to $207,746, showing continued adoption by its agent network. The Company also entered into an $11.98 million secured loan arrangement with FalconX Bravo Inc. to fund its crypto asset purchases, with the loan guaranteed by Voltedge Ltd. and secured by Injective tokens. Looking ahead, management announced plans for up to $100 million in aggregate investment in Injective digital assets, with a $100 million equity financing transaction that closed on January 4, 2026, providing approximately $19 million in immediate cash proceeds.