This opinion is in response to statements made by Pineapple Financial CEO, Shubha Dasgupta, on ILMB on March 9, 2025. By consuming or using this information, you agree that you are subject to MLN's terms of service and the additional legal notice below.
March 9, 2025
Dear Shubha,
Today you called out our publication's coverage of your company as being "negative." Do allow us to provide some context.
To start with, I don’t know you personally but you seem to be a lovely chap who’s done positive things and champions some good causes. This is not intended to be a personal criticism.
Among other things, MortgageLogic.news (MLN) is in the business of commenting on mortgage companies’ financial performance. If keeping interested readers informed about Pineapple's ongoing losses and eroding shareholder equity constitutes "writing negatively," then we're guilty.
For readers’ sake, however, we should differentiate between “negative” and untrue—between “narratives” and concerned honest analysis. There is zero malicious intent in MLN’s reporting. Instead, as you put it, we are simply fighting for the truth.
On that note, as I understand it and if our information is accurate (and please correct me if anything herein is wrong):
1. It appears you or your company have made numerous public statements since 2023 including some rather upbeat announcements, such as the following: https://docs.google.com/document/d/1-nGyr55RtDhb-u1dNeAA7jrEYhucpXGnKcz9vCXqvVw/edit?tab=t.0.
2. Partly as a result of such statements, it's possible that good people took a chance on your company by purchasing PAPL stock.
3. All told, since Pineapple’s IPO (i.e., the close of Nov. 1, 2023 to the close of Mar. 7, 2025), that stock has lost over 83% of its value. As of Friday, it traded at just 37 cents per share. Source: https://www.nyse.com/quote/XASE:PAPL.
4. In the last four fiscal years, according to LSEG estimates, it appears the company has had cumulative Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in excess of *negative* $7 million.
Source: https://share.cleanshot.com/vRDwys86
5. A director recently left the company alleging “serious corporate governance concerns…” (Note to readers: The company disagrees with him and these claims remain unproven allegations.) Source: https://t.ly/lp1TE
6. Pineapple’s long-time Chief Strategy Officer, who reportedly held significant stock in the company, has recently resigned. Source: https://t.ly/QQ-6X
- D. Boral Capital, your company's own investment banker, reportedly issued a company report on February 27, 2025 that estimated Pineapple will lose another ~$3.2 million and ~$2.1 million in fiscal 2025 and 2026, respectively. That compares to a cash, trade and other receivables position of approximately $802K as of the latest reported quarter. Source (LSEG): https://share.cleanshot.com/xXDPSgfy
8. In a little over two years, despite several positive announcements, the company's market capitalization fell from over USD $10 million to approximately USD $3.26 million as of Friday, according to LSEG. Source: https://share.cleanshot.com/zXDctSm3
9. Based on annual EBITDA data from LSEG, annual performance seems to be getting worse. In the most recent fiscal year ending Aug. 30, LSEG's figures indicate the biggest negative EBITDA so far (minus $2.89 million), apparently reflecting what might be ongoing operating struggles. Source: https://share.cleanshot.com/Rl9qDTLB
10. The company has had to raise funding multiple times and D. Boral’s February 27, 2025 report reportedly estimates that Weighted Average Shares Outstanding (Basic & Dil.) could potentially surge from 6.307 million in Fiscal 2023 to 9.008 million in Q4 Fiscal 2025. (Fair question: If that comes to pass, what is the chance it could create considerable further dilution for existing shareholders?)
For advocates of “the fruit company," as you put it, it may be hard to imagine anyone having the gall to question its performance. In light of the above, however, there are investments and livelihoods at stake. As such, while we hope you can turn the company's financial performance around, we share certain industry members' concerns about the company’s future. Based on the market's vote on the stock, we're not alone.
MLN’s reports and concerns about Pineapple’s stakeholders date back more than two years—including when the stock was trading six times higher than Friday's closing price.
As we do with other brokerages, we’ll continue to keep the industry informed about your wins and losses. Hopefully there are more of the former as I do wish your shareholders and agents well.
On the topic of wins, you mentioned that “We didn’t build Pineapple to compete” (Source: https://share.cleanshot.com/DjPNH2B4). That might be news to folks who entrusted their investment dollars to the company.
When a company’s performance differs from many people’s expectations, folks can (should) be critical. As a public enterprise, you should expect scrutiny, and the shareholders deserve no less. When losses (sorry, “investments”) mount and people’s hard-earned money and livelihoods are on the line, rather than call out analysts for being "negative," may we suggest the time might be better spent addressing any problems raised by factual analyst reports?
Some commentators have analogized Pineapple with Amazon and the need to be patient. Maybe patience will pay, but the clock is ticking and these two companies had/have very different degrees of commoditization, innovation, scalability and access to capital. Moreover, Amazon—unadjusted for splits—was never a penny stock and never traded remotely near 37 cents.
The first interaction I recall with you was Dec. 14, 2022, with this invitation on LinkedIn to run a story on your IPO: https://share.cleanshot.com/Q87pQmpC. That interview was never provided. You’ve noted the need for transparency, however. So, if you’re ever interested in an open, fair and unscripted on-camera interview about Pineapple’s future, the invitation remains open.
At the end of the day, the market is usually pretty good at valuing companies and their prospects. I hope the significant loss of shareholder value thus far is temporary and not an indication of Pineapple’s future potential.
Good luck to you,
Rob McLister, Editor
MortgageLogic.news
P.S. Regarding this (https://share.cleanshot.com/b6k8mMsG) statement that seems to have been mistakenly attributed to me in your original post: Shubha, I have never published that Pineapple has “two months left.” Thank you for discreetly removing it, albeit seemingly without notice and after potential damage was done.
The views and opinions expressed in this commentary are solely those of the MortgageLogic.news, an Imaginative.Online Inc. company, and no portion should be interpreted as a statement of fact unless confirmed by reputable third party sources. The commentary provided reflects personal assessments, interpretations, and opinions based on publicly available information at the time of publication, and readers should independently verify all details and perform their own due diligence. The author makes no guarantee regarding the accuracy, completeness, or reliability of any information shared, nor is this commentary intended to influence investment decisions or serve as a recommendation to buy, sell, or hold any securities. Any actions taken based on this commentary are strictly at the reader's own risk and responsibility.
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