MISSISSAUGA, ON, May 12, 2026 /CNW/ - goeasy Ltd. (TSX:GSY), ("goeasy" or the "Company"), one of Canada's leading consumer lenders focused on delivering a full suite of financial services to Canadians with non-prime credit scores, today reported results for the first quarter ended March 31, 2026.
"We continued to advance our six-point action plan in the first quarter, with cost efficiency measures already taking effect," said Patrick Ens, goeasy's Chief Executive Officer. "In March, we took decisive action to significantly reduce our exposure to merchant-originated loans. Our ending loan book size, total yield, and net charge off rate came in as expected. Our direct-to-consumer business remains strong, and with $560.1 million cash provided by operations before net principal written in the quarter, our liquidity position is solid as we manage through this transitional period."
First Quarter Results
During the quarter, the Company generated $551.3 million in loan originations, down 19% compared to $676.8 million generated in the first quarter of 2025. The decrease in lending, consistent with the Company's six-point action plan, was driven primarily by a reduction in merchant-originated automotive and powersports loan originations, as the Company implemented tighter credit underwriting measures in response to unfavourable credit performance in those portfolios.
At quarter end, the consumer loan portfolio was $5.36 billion, up 12% from $4.80 billion at the end of the first quarter of 2025, but down $150.0 million or 3% from the end of the fourth quarter of 2025. Organic growth in the Company's consumer loan portfolio was the main driver of growth in revenue, which increased 2% from $404.9 million in the first quarter of 2025 to $412.9 million in the first quarter of 2026. Total annualized yield (including ancillary products) realized on average consumer loans receivable1 was 27.9% in the quarter, down 330 bps from the same period in 2025, but up 130 bps from the fourth quarter of 2025. Total annualized yield decreased year-over-year mainly due to the impact of higher allowance for credit losses on interest receivable; the continued impact of the lowered maximum allowable rate of interest on the Company's unsecured lending product; and a higher proportion of larger dollar value loans, which have reduced pricing on certain ancillary products.
During the quarter, the annualized net charge off rate was 17.8%, up 890 bps from 8.9% in the first quarter of 2025, but down 600 bps from the fourth quarter of 2025. Annualized net charge off rate increased year -over-year primarily due to higher charge offs in the merchant-originated automotive and powersports loan portfolios. The total allowance for credit losses on gross consumer loans increased to $541.2 million from $382.8 million as at March 31, 2025, mainly due to the Company's current view of collectability and an increase in the credit loss outlook for the merchant-originated automotive and powersports loans. The rate of allowance for expected credit losses, defined as the allowance for credit losses on gross consumer loans receivable as a percentage of the ending gross consumer loans receivable, increased from 9.57% as at December 31, 2025 to 10.09% as at March 31, 2026, driven primarily by unfavourable changes in the macroeconomic forecast data used in the Company's IFRS 9 allowance model.
Operating income for the first quarter of 2026 was $28.9 million, down 80% from $144.1 million in the first quarter of 2025. After adjusting for unusual and non-recurring items, the Company reported adjusted operating income2 of $36.9 million, a decrease from $147.4 million in the first quarter of 2025. The efficiency ratio1 for the first quarter of 2026 was 24.5%, a 160 bps improvement from 26.1% in the first quarter of 2025.
Net loss for the first quarter of 2026 was $53.0 million, down from net income of $38.7 million in the first quarter of 2025, and diluted loss per share was $3.22, down from diluted earnings per share of $2.28 reported in the first quarter of 2025. Adjusted net loss2 for the first quarter of 2026 was $31.3 million, down from adjusted net income2 of $59.3 million in the first quarter of 2025. The decrease in adjusted net income was primarily driven by lower adjusted operating income from lower total yield on consumer loans (including ancillary products) and elevated credit losses. Adjusted diluted loss per share1 was $1.90, down from adjusted diluted earnings per share1 of $3.49 in the first quarter of 2025.
Balance Sheet and Liquidity
Total assets were $5.82 billion as at March 31, 2026, an increase of 9% from $5.34 billion as at March 31, 2025, primarily driven by growth in consumer loans receivable and cash. Cash provided by operations before net principal written2 in the first quarter of 2026 was $560.1 million, compared to $410.7 million in the first quarter of 2025. The Company's debt-to-adjusted tangible equity ratio3, a capital management measure for leverage, was 5.30x as at March 31, 2026, compared to 3.69x as at March 31, 2025. The average blended coupon interest rate for the Company's debt as at March 31, 2026 was 6.6%.
As at March 31, 2026, goeasy had liquidity (cash on hand plus unused contractual borrowing capacity) of $1.10 billion (of which $743 million is not currently available to be drawn by the Company). Subsequent to quarter end, the Company used existing liquidity to repay the US$64.6 million senior unsecured notes that matured on May 1, 2026. The Company was not subject to financial covenant compliance, and was in compliance with all other applicable covenants, for the Revolving Securitization Warehouse Facility I as at March 31, 2026. The Company was in compliance with all of its covenants (including financial covenants) under its Revolving Credit Facility agreement as at March 31, 2026. The Company continues to progress toward transitioning to a replacement backup servicer and completing a satisfactory audit in respect of the Revolving Securitization Warehouse Facility I, completion of which will permit additional draws on the facility.
Selected Additional First Quarter Information(March 31, 2026 relative to March 31, 2025, where applicable)
44% of gross consumer loans receivable secured, down from 46%
Total number of active lending customers at 466,000, up 7%
71% of net loan advances1 in the quarter were issued to new customers, down from 73%
Weighted average interest rate4 on consumer loans of 28.5%, up from 26.5%
86.6% of gross consumer loans receivable, on a dollar-weighted basis, carried an interest rate less than or equal to a 35% Annual Percentage Rate, being the maximum allowable interest rate for new loans written after January 1, 2025
Updated 2026 Outlook
The Company disclosed its first quarter 2026 outlook, along with the relevant assumptions and risk factors, in its fourth quarter 2025 MD&A. The Company's actual first quarter performance was consistent with its first quarter 2026 outlook across all three measures. The Company continues to focus on prudent management of liquidity, strengthening of credit performance, and alignment of its capital structure. Management remains confident in goeasy's ability to return to its long track record of strong credit performance and returns that will reinforce confidence among shareholders and other stakeholders.
Q2 2026 Outlook
Full Year 2026 Commentary
Gross consumer loans receivable at period end
$4.9 to $5.1 billion
Expected to decline from December 31, 2025 level before resuming growth in the later part of the year
Total yield on consumer loans (including ancillary products)1
27.0% to 28.5%
Expected to improve over course of the year as charge offs decline
Net charge offs as a percentage of average gross consumer loans receivable1
16.0% to 17.5%
Expected to be in the mid-teens for full year 2026; improvement is expected as the year progresses
This outlook is subject to and based on the assumptions and risks set out in more detail under "Forward-Looking Statements".
Share Repurchases and Dividend Payments
In consideration of recent developments that affected earnings in 2025, the Board of Directors (the "Board") made the decision to suspend the regular quarterly dividend on the Company's Common Shares and to suspend share repurchases under its normal course issuer bid on an indefinite basis. These actions are aligned with management's focus on prudently preserving capital and maintaining liquidity.
Adoption of Shareholder Rights Plan
The Company also announced today that the Board has approved the adoption of a shareholder rights plan (the "SRP") pursuant to a shareholder rights plan agreement entered into with TSX Trust Company, as rights agent, dated May 12, 2026 (the "Effective Date").
The SRP has been adopted to: (i) ensure that all shareholders of the Company are treated fairly in connection with any unsolicited take-over bid or acquisition of control of the Company (including by way of a "creeping" take-over bid); (ii) provide the Board and shareholders of the Company with adequate time to consider and evaluate any unsolicited take-over bid or similar transaction; and (iii) enable the Board to identify, solicit, develop and negotiate any value-enhancing alternatives, as may be considered appropriate, to any unsolicited take-over bids or similar transaction.
The SRP is similar to rights plans adopted by other Canadian companies and ratified by their shareholders. The SRP is not being adopted in response to any specific proposal or intention to acquire control of the Company, and the Board is not aware of any pending or threatened take-over bid for the Company.
Pursuant to the SRP, one right will attach to each issued and outstanding common share of the Company. Subject to the terms of SRP, the rights become exercisable if any person (together with certain related parties) becomes a beneficial owner of 20% or more of the outstanding common shares without complying with the "Permitted Bid" provisions of the SRP. In such event, holders of the rights (other than the acquiring person and its related parties) will be permitted to exercise their rights to purchase additional common shares at a substantial discount to the then market price of the common shares.
The SRP has been conditionally accepted by the Toronto Stock Exchange. While the SRP is effective as of the Effective Date, it is subject to ratification by the Company's shareholders at a meeting of shareholders to be held within six months of its Effective Date. The Company currently expects to seek shareholder ratification of the SRP at a special meeting to be called and held within that six-month period (the "Meeting"). If the SRP is not ratified by shareholders within that six-month period, it, together with the outstanding rights, will terminate and cease to be effective.
A summary of the principal terms of the SRP will be included in the management proxy circular to be sent to shareholders in connection with the Meeting. The full text of the SRP is available under the Company's profile on SEDAR+ at sedarplus.ca.
Forward-Looking Statements
This press release includes forward-looking statements about goeasy, including, but not limited to, its business operations, strategy and expected financial performance and condition. Forward-looking statements include, but are not limited to, statements with respect to forecasts for growth of the consumer loans receivable, annual revenue growth forecasts, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements and the Company's ability to secure sufficient capital, liquidity of the Company, plans and references to future operations and results, critical accounting estimates, expected future yields and net charge off rates on loans, the dealer relationships, the size and characteristics of the Canadian non-prime lending market, the continued development of the type and size of competitors in the market, the inclusion of the SRP in the management information circular for any Meeting and the calling and the holding of any such Meeting and the timing thereof; and the approval, ratification and confirmation of the SRP. In certain cases, forward-looking statements that are predictive in nature, depend upon or refer to future events or conditions, and/or can be identified by the use of words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "target" or negative versions thereof and similar expressions, and/or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations and business prospects and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company's operations, economic factors and the industry generally. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those expressed or implied by forward-looking statements made by the Company. Some important factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, goeasy's ability to enter into new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, offer products which appeal to customers at a competitive rate, respond to changes in legislation, react to uncertainties related to regulatory action, raise capital under favourable terms, compete, manage the impact of litigation (including shareholder litigation), control costs at all levels of the organization and maintain and enhance the system of internal controls.
The Company cautions that the foregoing list is not exhaustive. These and other factors could cause actual results to differ materially from our expectations expressed in the forward-looking statements, and further details and descriptions of these and other factors are disclosed in the Company's Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2025, including under the section entitled "Risk Factors".
The reader is cautioned to consider these, and other factors carefully and not to place undue reliance on forward-looking statements, which may not be appropriate for other purposes. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise, unless required by law.
The Company particularly cautions that the Q2 2026 outlook and full year 2026 commentary presented above under the heading "Updated 2026 Outlook" (the "2026 Outlook Information") constitutes forward-looking information and that in formulating its outlook, the Company makes a series of assumptions, which include, but are not limited to, assumptions about Environmental Conditions (Stability in the macroeconomic environment; Continued demand for non-prime credit across); Portfolio Growth (Loan originations adjust as underwriting criteria are tightened, particularly within indirect channels); Liquidity & Funding (The Company prioritizes liquidity and covenant compliance; Continued access to funding at acceptable rates; Continued strong free cash flow from its existing portfolio); Revenue Yield (Portfolio yield expected to be negatively impacted by bad debts on interest receivable; Business mix shift to include more unsecured personal loan originations at higher yields; Total portfolio yield and net charge off as a percentage of gross consumer loans receivable on its lending products are as estimated in the Company's budget and strategic plan); Credit Performance (Net charge offs as a percentage of gross consumer loans receivable perform in line with the Company' budget and forecasts generated through the use of its proprietary credit and underwriting models; The mixture of customers acquired through each of the Company's acquisition channels and the mixture of new and existing borrowers are as estimated in the Company's forecast); Investment Performance (No material changes are assumed in the fair value of investments, and no forecast is made regarding the timing of realization of the investment portfolio); and Mergers and Acquisitions (No mergers or acquisitions are contemplated within the outlook period). These assumptions and expectations are subject to a number of risks, including the following, as well as those set out the section entitled "Risk Factors" in the Company's MD&A: Environmental & Market Conditions (Uncertainty in consumer demand or broader economic conditions may adversely impact loan originations and portfolio performance; Deterioration in employment levels or economic stability could negatively affect credit performance and increase net charge off rates; Competitive dynamics or pricing pressures may impact margins and growth); Access to Capital & Funding (The Company's ability to access capital on acceptable terms and maintain adequate liquidity to support operations and strategic priorities); Regulatory Environment (Changes to laws and regulations governing consumer lending that could impact product offerings, pricing or operations); Credit Performance (A material increase in net charge off as a percentage of gross consumer loans receivable beyond expectations, including adverse performance from prior vintages or new originations); and Operating Execution (The Company's ability to successfully execute on its Action Plan, including underwriting changes, and operating model alignment and platform consolidation; Risks associated with transitioning originations and customer portfolios toward the easyfinancial platform). The 2026 Outlook Information constitutes targets established by the Company and is subject to change as plans and business conditions vary. Accordingly, investors are cautioned not to place undue reliance on the 2026 Outlook Information. Actual results may differ materially.
About goeasy
goeasy Ltd. is a leading Canadian provider of non-prime consumer lending solutions, offering a suite of financial products through its easyfinancial, easyhome, and LendCare brands. goeasy offers unsecured and secured instalment loans, point-of-sale financing, and lease-to-own merchandise through its omni-channel model, which spans online, mobile, and hundreds of locations nationwide.
Driven by its team members' dedication to expand access to credit for underserved communities and helping customers strengthen their financial futures, goeasy has proudly served more than 1.6 million customers while building an award-winning culture. Shares of goeasy Ltd. are listed on the Toronto Stock Exchange (TSX) under the symbol GSY. For more information, visit www.goeasy.com.
For investor inquiries, contact:
James ObrightSenior Vice President, Investor Relations & Capital Markets[email protected]
For media inquiries, contact:
[email protected]
Notes:
1 These are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.2 These are non-IFRS measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.3 These are capital management measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.4 These are supplementary financial measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.
goeasy Ltd.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in thousands of Canadian dollars)
As At
As At
March 31,
December 31,
2026
2025
ASSETS
Cash
356,237
152,661
Accounts receivable
40,307
42,361
Prepaid expenses
13,877
9,159
Income taxes recoverable
109,467
90,559
Consumer loans receivable, net
4,982,870
5,155,360
Investments
23,117
29,103
Lease assets, net
33,851
36,656
Derivative financial assets
31,138
11,146
Deferred income tax assets
25,831
22,250
Property and equipment, net
28,634
30,788
Right-of-use assets, net
51,135
52,510
Intangible assets, net
103,914
104,142
Goodwill
21,310
21,310
TOTAL ASSETS
5,821,688
5,758,005
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Revolving credit facility
310,310
175,052
Accounts payable and other liabilities
79,585
107,842
Dividends payable
-
23,398
Unearned revenue
29,962
31,219
Accrued interest payable
84,970
68,533
Deferred income tax liabilities
11,064
5,367
Lease liabilities
57,840
59,451
Secured borrowings
71,612
88,783
Revolving securitization warehouse facilities
609,561
611,015
Derivative financial liabilities
14,402
46,107
Notes payable
3,751,143
3,690,818
TOTAL LIABILITIES
5,020,449
4,907,585
Shareholders' equity
Share capital
431,264
430,325
Contributed surplus
25,244
26,782
Accumulated other comprehensive loss
(8,960)
(13,367)
Retained earnings
353,691
406,680
TOTAL SHAREHOLDERS' EQUITY
801,239
850,420
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
5,821,688
5,758,005
goeasy Ltd.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Expressed in thousands of Canadian dollars, except earnings (loss) per share)
Three Months Ended
March 31,
March 31,
2026
2025
Restated
REVENUE
Interest income
317,910
308,891
Lease revenue
20,045
22,242
Commissions earned
70,063
68,187
Charges and fees
4,839
5,603
412,857
404,923
OPERATING EXPENSES
BAD DEBTS
267,200
145,023
OTHER OPERATING EXPENSES
