Mr. Bryan Pang reports

SOLUTION FINANCIAL REPORTS Q3 2025 FINANCIAL RESULTS

Solution Financial Inc. has released its financial results for the third quarter ended July 31, 2025.

Earnings highlights for the quarter:

• Net income for the quarter was $93,077, compared with net income of $181,158 in the comparative quarter in 2024.
• Adjusted net income was $190,256, compared with $298,162 in the comparative quarter.
• Revenue was $2,296,637, compared with $4,097,517 in the comparative quarter.
• Total leasing portfolio increased to $31,798,185, compared with $30,123,209 during the prior quarter.

Operational highlights for the quarter:

• Portfolio size reached $31-million;
• Increased volume of ultraluxury leasing;
• Completed new AML (anti-money-laundering) compliance training and program updates;
• Finalized artificial-intelligence-driven enhancement to quoting and reporting capabilities to further improve efficiencies;
• Renewed securitization financing facility in May.

"The third quarter reflects both the strength of our core portfolio and the continued progress we are making on operational excellence," said Bryan Pang, chief executive officer of Solution Financial. "Reaching a $31-million portfolio is a meaningful milestone for our business, and we are encouraged by early quoting activity in the ultraluxury segment, which has the potential to further expand our market reach. At the same time, we completed significant compliance and technology initiatives -- updating our AML training for new regulatory requirements and embedding AI enhancements into our quoting and reporting systems. These improvements are designed to drive greater accuracy, efficiency and scalability. Combined with the renewal of our securitization financing facility, we believe we are well positioned to support disciplined growth and deliver long-term value for our shareholders."

Financial results

Solution is reporting net income of $93,077, or 0.1 cent per share, for the quarter ended July 31, 2025. This compares with net income of $181,158, or 0.2 cent for the quarter ended July 31, 2024.

Adjusted net income, which is more reflective of actual cash earnings, for the quarter ended July 31, 2025, was $190,256, or 0.2 cent per share, compared with $298,162, or 0.3 cent per share, for the quarter ended July 31, 2024. Adjusted net income excludes the non-cash accretion expense related to right-of-use assets of $16,482, income tax provision of $33,350, amortization of $28,733 and provision for credit losses of $18,614.

Lease portfolio

At July 31, 2025, Solution had 369 vehicles in its lease portfolio, a net increase of 14 vehicles over the quarter, to bring the total lease portfolio value to $31.6-million.

At July 31, 2025, the average remaining lease term for the portfolio was 2.58 years, weighted by net book value for each vehicle. At July 31, 2025, Solution's 369 leases were generating annualized gross rental and lease cash flows of approximately $7.8-million.

About Solution Financial Inc.

Solution Financial commenced operations in 2004 and specializes in sourcing and leasing luxury and exotic vehicles, yachts and other high-value assets. Solution works with a select group of luxury automotive and marine dealerships, providing lending solutions to clients who prefer more flexible leasing options than those traditionally offered by banks and other lease providers. Typical customers include new immigrants, business owners and international students, who tend to upgrade their vehicles more frequently than traditional lease agreements allow. Solution Financial provides a unique leasing experience, whereby it partners with its clients to help source limited-edition and difficult-to-acquire vehicles as well as providing white-glove services to clients for insuring, maintaining, upgrading and reselling their vehicles.

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