Everyday People Financial Soars to $57 Million in FY2024 Revenue, Fueling Investment Optimism

Everyday People Financial Corp. (TSXV: EPF.V) has emerged as a standout performer in the financial services sector, reporting $57 million in revenue for fiscal year 2024 (FY2024)—a 51% surge from the $37.9 million recorded in FY2023. This growth underscores a strategic transformation driven by acquisitions, operational efficiencies, and a sharp focus on underserved markets.

Revenue Growth: A Momentum-Driven Story

The company’s revenue trajectory has been nothing short of explosive. In FY2023, revenue nearly doubled from FY2022’s $18.9 million, reaching $37.9 million, thanks to a 103% revenue jump in Q4 2023 alone. This momentum carried into FY2024, with revenue hitting $57 million, driven by:
- Acquisition synergies: The 2024 acquisition of CCS Group Holdings Limited expanded its Revenue Cycle Management (RCM) footprint, adding $14.6 million in historical revenue.
- Cross-border operations: A global workforce of 450 employees across Canada, the U.S., and the UK, supporting affordable credit products and financial literacy programs.

The third quarter of 2024 (Q3) saw revenue surge 89% year-over-year to $17.8 million, while the first nine months of 2024 delivered a 71% revenue increase compared to the same period in 2023.

Profitability Turnaround: From Losses to Profit

Revenue growth has translated into a dramatic turnaround in profitability. In FY2023, net income before tax was still in the red at $0.45 million, but by Q3 2024, this metric had soared 451% to $1.6 million. For the first nine months of 2024, net income before tax improved 259%, moving from a $2.3 million loss in 2023 to a $3.7 million profit.

Adjusted EBITDA further highlights operational strength:
- Q3 2024 EBITDA rose 172% to $3.1 million, while the nine-month figure jumped 231% to $8.6 million.

This shift reflects disciplined cost management and the integration of acquisitions, such as CCS Group, which management expects to deliver “even stronger growth in 2025.”

Strategic Drivers: RCM and Debt Reduction

Everyday People’s growth is anchored in its dual business pillars:
1. Revenue Cycle Management (RCM): Led by Co-CEO Graham Rankin, this segment leverages acquisitions to tap into a global RCM market valued at $30.2 billion.
2. Financial Services: Under Co-CEO Barret Reykdal, this division focuses on affordable credit products and financial literacy for underserved communities.

The company has also prioritized debt reduction, paying down $2.5 million in long-term debt by mid-2024, improving its balance sheet for future expansion.

Risks and Challenges

Despite the positives, risks remain:
- Integration complexity: The CCS Group acquisition’s success hinges on seamless integration, which could strain resources.
- Economic headwinds: Rising interest rates or a recession could dampen demand for credit products.
- Historic volatility: While FY2024 marks a turnaround, prior years saw non-cash impairments totaling $30.6 million, signaling past challenges in valuation and execution.

Conclusion: A High-Reward, High-Risk Opportunity

Everyday People Financial’s 51% revenue growth and profitability turnaround make it a compelling investment candidate. With a $57 million revenue base in 2024 and plans to capitalize on a $30 billion RCM market, the company is positioned for further expansion. However, investors must weigh this potential against execution risks and macroeconomic uncertainties.

The stock’s performance () will likely hinge on the CCS acquisition’s success and debt-reduction progress. For aggressive investors seeking high-growth exposure in financial services, Everyday People Financial offers a compelling—if volatile—opportunity.

Final figures:
- FY2024 Revenue: $57 million (+51% vs. FY2023).
- Adjusted EBITDA (9M 2024): $8.6 million (+231% YoY).
- Debt Reduction: $2.5 million paid down in 2024, signaling improved financial health.

This trajectory suggests that Everyday People Financial could be a key player in consolidating the RCM sector—if it can sustain its momentum.