Solution Financial Reports Q2 2025 Financial Results

Vancouver, British Columbia--(Newsfile Corp. - June 12, 2025) - Solution Financial Inc. (TSX: SFI) (the "Company"), a leading provider of luxury and ultra luxury asset leasing in Canada, today announced its financial results for the second quarter ending April 30, 2025.

Earnings Highlights for the Quarter:

• Net income for the quarter was $5,668 compared to a net loss of $29,046 in the comparative quarter in 2024.
• Adjusted net income⁽¹⁾ increased to $58,192 compared to Adjusted net income of $28,856 in the comparative quarter.
• Revenue increased to $2,710,162 compared to $2,233,770 in the comparative quarter.
• Total leasing portfolio remained relatively unchanged at $30,123,209 during the quarter.

Operational Highlights for the Quarter:

• The Company returned to modest profitability
• Enhanced local program compliance materials
• Further streamlining of client quoting platform and automation

"The second quarter was an encouraging step forward for us," said Bryan Pang, CEO of Solution Financial Inc. "We returned to profitability and posted over 20% year-over-year revenue growth, reflecting that demand for our luxury leasing solutions remains strong despite ongoing economic uncertainty. We also made meaningful progress on key initiatives—upgrading our quoting platform, expanding automation, and bolstering compliance frameworks across all our active regions. These operational improvements are supporting greater scale and efficiency across our business. As we look ahead, we remain focused on disciplined execution and long-term value creation through technology investment, risk-adjusted growth, and strategic relationship development."

Financial Results

Solution is reporting net income of $5,668 for the quarter ending April 30, 2025. This compares to a net loss of $29,046 per share for the quarter ending April 30, 2024.

Adjusted net income, which is more reflective of actual cash earnings, for the quarter ending April 30, 2025, was $58,192⁽¹⁾ or $0.0007 per share compared to $28,856 or $0.0003 per share for the quarter ending April 30, 2024. Adjusted net income excludes the non-cash accretion expense related to right of use assets of $30,330, income tax provision of $7,350, amortization of $26,485, and provision for credit losses of $3,059.

Lease Portfolio

At April 30, 2025, Solution had 355 vehicles in its lease portfolio, a net increase of 3 vehicles over the quarter to bring the total lease portfolio value to $30.1 million.

At April 30, 2025 the average remaining lease term for the portfolio was 1.95 years, weighted by net book value for each vehicle. At April 30, 2025, Solutions' 355 leases were generating annualized gross rental and lease cash flows of approximately $7.8 million.

About Solution

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.

Note 1- Non-IFRS Financial Metrics

Solution provides all financial information in accordance with International Financial Reporting Standards ("IFRS"). To supplement our consolidated financial statements presented in accordance with IFRS, we are also providing with this press release, certain non-IFRS financial measures, including Adjusted Net Income. In calculating these non-IFRS financial measures, we have excluded certain transactions that are not necessarily indicative of our ongoing operations or do not impact cash flows. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking information" as defined under applicable Canadian securities laws. This information includes, but is not limited to, statements concerning our objectives, our strategies to achieve those objectives, as well as statements made with respect to management's beliefs, plans, estimates, projections and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Although forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. Certain statements included in this press release may be considered a "financial outlook" for purposes of applicable Canadian securities laws, and as such the financial outlook may not be appropriate for purposes other than this press release.

The forward-looking information contained in this press release is made as of the date of this press release and should not be relied upon as representing Solution's views as of any date subsequent to the date of this press release. Except as required by applicable law, management and Solution's Board of Directors undertake no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

ON BEHALF OF THE BOARD

(signed) "Bryan Pang"
Bryan Pang
President, CEO and Director

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

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