Overview

• Canada mortgage brokerage franchisor's Q1 revenue rose 7% but missed analyst expectations

• Q1 adjusted EBITDA increased 9% but missed analyst expectations

• Company raised quarterly dividend to C$0.05 from C$0.04 per share

Outlook

• Dominion Lending Centres maintains a positive outlook for 2026 despite economic uncertainty

• Company says continued investment in franchise and broker partners will support future growth

• Company expects ongoing economic uncertainty to impact market conditions

Result Drivers

• VELOCITY PLATFORM ADOPTION - Increased use of Velocity platform to 85% of funded mortgage volumes from 79% in Q1 2025 drove revenue growth

• BROKER NETWORK EXPANSION - Growth in broker network contributed to higher revenue

• COST SAVINGS - Direct costs decreased 27% over Q1 2025, mainly from lower cost of royalty revenue after sales team realignment and reduced advertising fund expenditures

Company press release: ID:nNFC7kyHTY

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for Dominion Lending Centres Inc is C$11.50, about 17.7% above its May 6 closing price of C$9.77

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

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