goeasy Ltd. Reports Results for the Fourth Quarter and Full Year 2025

Loan Portfolio of $5.51 billion at year-end, up 20% from $4.60 billion at prior year-end
Revenue of $406 million in Q4/25, flat compared to $407 million in Q4/24
Net Charge Off Rate¹ of 23.8% in Q4/25, up 1,460 bps from 9.2% in Q4/24
Diluted Loss Per Share of $20.49 in Q4/25, down from EPS of $3.12 in Q4/24
Adjusted Diluted Loss Per Share¹ of $8.93 in Q4/25, down from Adj. Dil. EPS¹ of $3.32 in Q4/24

MISSISSAUGA, ON, March 31, 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 fourth quarter and full year ended December 31, 2025.

Significant Developments in the Fourth Quarter

• Late-stage Loan Charge Offs at LendCare. In the fourth quarter of 2025, the Company recognized $177.9 million in incremental loan charge offs relating to the LendCare portfolio, which reflected the Company's assessment that all available efforts to drive substantive recoveries on certain late-stage delinquent loan receivables had been exhausted. Total net charge offs for the fourth quarter of 2025, as an annualized percentage of average gross consumer loans receivable, were 23.8%, up from 9.2% in the same period of 2024.
• Higher allowance for credit losses on gross consumer loans receivable. The net change in allowance for credit losses in the fourth quarter of 2025 was $71.9 million, compared to $41.4 million in the same period of 2024, an increase of $30.5 million. This increase was primarily driven by the adjustment in the rate of allowance for expected credit losses, which increased from 7.81% as at December 31, 2024 to 9.57% as at December 31, 2025, reflecting the Company's expectation of higher credit losses.
• Goodwill impairment. The Company recorded a $159.6 million goodwill impairment charge related to its LendCare business.
• Correction of prior period financial statements. Subsequent to year‑end, the Company identified errors in certain financial information for prior periods, including previously announced errors related to the accounting treatment of certain customer payments in transit at period‑end dates in 2024 and 2025, which has caused the Company to restate its financial information as at and for those prior periods. All 2024 financial information included in this press release reflects such restatement. For more information, see the MD&A sections entitled "Restatement of Prior Period Financial Information" and "Restatement Impact on Interim Financial Information" and Note 2 to the consolidated financial statements. All 2024 financial information included in the Company's 2025 consolidated financial statements supersedes the corresponding information previously included in the Company's 2024 consolidated financial statements.  Such superseded information should no longer be relied upon. All financial information for the periods ending March 31, June 30 and September 30, 2024 and 2025 included in the MD&A section entitled "Restatement Impact on Interim Financial Information" supersedes the corresponding information previously included in the Company's previously filed financial statements for such interim periods. Such superseded information should no longer be relied upon.

"Our belief in goeasy's long-term opportunity is unchanged," said Patrick Ens, goeasy's Chief Executive Officer. "We are committed to taking decisive action, through a focused six-point plan, to deliver strong financial performance anchored in the strength of our direct-to-consumer business."

Fourth Quarter Results

During the quarter, the Company generated $951.5 million in loan originations, up 17% compared to $813.7 million generated in the fourth quarter of 2024. The increase in lending was driven by a robust volume of applications for credit.

Growth in the loan portfolio was $68.4 million for the period. At quarter end, the consumer loan portfolio was $5.51 billion, up 20% from $4.60 billion in the fourth quarter of 2024. Total annualized yield (including ancillary products) realized on average consumer loans receivable¹ was 26.6% in the quarter, down 600 bps from the same period in 2024. The decrease in yield, almost entirely offset by growth in consumer loans, led to flat revenue, which was $406.3 million, compared to $407.0 million in the fourth quarter of 2024. 

During the quarter, the annualized net charge off rate was 23.8%, up approximately 1,460 bps from 9.2% in the fourth quarter of 2024, due to the $331.1 million of net charge offs in the quarter, inclusive of $177.9 million of incremental charge offs attributable to the LendCare business. The rate of allowance for expected credit losses increased from 7.81% as at December 31, 2024 to 9.57% as at December 31, 2025, reflecting the Company's expectation of higher credit losses.

Operating loss for the fourth quarter of 2025 was $283.3 million, down from operating income of $138.3 million in the fourth quarter of 2024. After adjusting for unusual and non-recurring items, the Company reported an adjusted operating loss² of $120.1 million, a decrease from adjusted operating income² of $141.7 million in the fourth quarter of 2024. The efficiency ratio¹ for the fourth quarter of 2025 was 25.0%, a slight decrease from 24.8% in the fourth quarter of 2024.

Net loss for the fourth quarter of 2025 was $336.9 million, down from net income of $54.2 million in the same period of 2024, and diluted loss per share was $20.49, down from diluted earnings per share of $3.12 reported in the fourth quarter of 2024. Adjusted net loss² for the fourth quarter of 2025 was $146.9 million, down from adjusted net income² of $57.7 million in the fourth quarter of 2024. Adjusted diluted loss per share¹ was $8.93, down from adjusted diluted earnings per share of $3.32 in the fourth quarter of 2024.

Full-Year Results

For the full year 2025, the Company funded $3.48 billion in loan originations, up 10% from $3.17 billion in the same period of 2024. The gross consumer loans receivable portfolio increased to $5.51 billion, up 20% from $4.60 billion as of December 31, 2024.

For the full year 2025, the Company produced revenues of $1.70 billion, up 11% compared to $1.53 billion in 2024. Operating income for the year was $188.3 million, compared with $584.0 million in 2024. Adjusted operating income² for 2025 was $361.8 million, compared to $602.5 million in 2024. Efficiency ratio¹ for the year was 24.9%, an improvement of 70 bps from 25.6% in 2024.

Net loss for the year was $178.4 million, and diluted loss per share was $10.78, compared with earnings of $264.2 million or $15.21 per share in 2024. Adjusted net income² for 2025 was $50.1 million, and adjusted diluted earnings per share¹ was $3.03, compared with $271.3 million or $15.62 per share for 2024. Reported return on equity was negative 16.0% for 2025, while adjusted return on equity¹ was 4.5% for 2025, down from 23.9% in 2024.

Balance Sheet and Liquidity

Total assets were $5.76 billion as of December 31, 2025, an increase of 11% from $5.21 billion as of December 31, 2024, primarily driven by growth in consumer loans receivable. Cash provided by operations before net principal written² in the fourth quarter of 2025 was $537.9 million, compared to $584.9 million in the fourth quarter of 2024. For full year 2025, cash provided by operations before net principal written² was $2.06 billion compared to $1.93 billion for 2024. The Company's debt-to-adjusted tangible equity ratio³, a capital management measure for leverage, was 4.81x as of December 31, 2025. The average blended coupon interest rate for the Company's debt as at December 31, 2025 was 6.6%. The Company intends to repay the US$64.6 million senior unsecured notes maturing on May 1, 2026 from existing liquidity. Based on its $240 million of cash on hand and $927 million aggregate amounts drawn as of February 28, 2026, the Company has liquidity (cash on hand plus unused contractual borrowing capacity) of up to $983 million (of which $743 million is not expected to be available until July 1, 2026).

Recent Developments

Amended Financing Arrangements

On March 24, 2026, the Company announced that it had entered into definitive agreements (the "Definitive Agreements") with the lenders and other counterparties under its syndicated revolving credit facility, consumer securitization warehouse facility and secured borrowing facility (collectively, the "Facilities"). The Definitive Agreements provide that the Facilities may remain outstanding and that the revolving credit facility and consumer securitization warehouse facility will remain available to provide funding to the Company, waive compliance with certain financial covenants in respect of the fourth quarter of 2025, and give effect to certain other amendments  (including amending the financial covenants to take into account certain charge‑offs, write‑downs and other items expected to adversely impact the Company's fourth quarter 2025 results). As a result of executing the Definitive Agreements, the Company was in compliance with all financial and other covenants under the Facilities as of December 31, 2025 and as of the date hereof.

As previously announced, key terms of the amendments include: (i) capacity under the syndicated revolving credit facility remains $550 million, provided that availability will be subject to a borrowing-base test, certain advance rates, and eligibility requirements that exclude loan receivables originated at LendCare, and may not exceed $440 million without lender consent, with the maturity of July 2027 unchanged, and pricing on advances was increased to Adjusted 1‑Month Term CORRA plus 325 bps; and (ii) the consumer securitization warehouse facility size was reduced from $1.4 billion to $1.12 billion, with revised eligibility criteria excluding loan receivables originated at LendCare, with the maturity of October 30, 2026 unchanged, and pricing on advances increased to Adjusted Daily Compounded CORRA plus 310 bps. The Company remains in compliance with all covenants under its senior unsecured notes.

Delivering Cost Efficiencies

On March 12, 2026, goeasy implemented a reduction in force that impacted approximately 9% of its employees. The reduction is expected to yield approximately $30 million in annualized run-rate savings.

2026 Outlook

The Company is focused on executing a disciplined reset of its operating model in 2026, including prudent management of liquidity, strengthening of credit performance, and alignment of its capital structure. This transitional period is intended to return the Company to its long track record of delivering a high return on equity and earnings that will reinforce confidence among shareholders and other stakeholders.

This outlook is subject to and based on the assumptions and risks set out in more detail under "Forward-Looking Statements".

Leadership Transitions

On December 2, 2025, the Company announced that Dan Rees would step down as Chief Executive Officer, effective December 31, 2025, due to due to a blood disorder that required him to resign from his position. The Board of Directors appointed Patrick Ens, then President of easyfinancial, as the Company's next Chief Executive Officer effective January 1, 2026. On September 30, 2025, goeasy announced that Felix Wu had been appointed as the Interim Chief Financial Officer (CFO). Mr. Wu assumed responsibilities as the Interim CFO on November 6, 2025 with a mandate that included oversight of reporting for year-end and for the first quarter of 2026. On March 10, 2026, the Company announced that Mr. Wu had been permanently appointed as Chief Financial Officer, with immediate effect.

Share Repurchases and Dividend Payments

In consideration of recent developments that affected earnings in 2025, the Board of Directors 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 Advance Notice By-Law

The Company also announced today that its board of directors has approved the adoption of an advance notice by-law (the "Advance Notice By-Law"). The Advance Notice By-Law is consistent with advance notice by-laws adopted by many other Canadian public companies and is intended to: (i) ensure that all shareholders receive adequate notice and sufficient information regarding director nominees to make informed voting decisions and (ii) facilitate an orderly and efficient process for the election of directors.

Among other things, the Advance Notice By-Law fixes certain deadlines by which shareholders must submit a notice of director nominations to the Company prior to any annual or special meeting of shareholders where directors are to be elected and sets forth the information that a shareholder must include in the notice for it to be valid.

The Advance Notice By-Law is effective immediately and will be placed before shareholders for approval, ratification and confirmation at the Company's upcoming annual and special meeting of shareholders to be held on May 20, 2026. In the event that the Advance Notice By-Law is not so approved, ratified and confirmed, it shall terminate and be of no further force or effect.

The full text of the Advance Notice By-Law 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 potential approval, ratification and confirmation of the Advance Notice By-Law. 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 Q1 2026 outlook and full year 2026 commentary presented above under the heading "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 Obright
Senior Vice President, Investor Relations & Capital Markets
investor_relations@goeasy.com

For media inquiries, contact:

mediainquiries@goeasy.com

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.

SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS

Non-IFRS Measures and Other Financial Measures

The Company uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB), are not identified by IFRS and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Company believes that non-IFRS measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-IFRS measures are used throughout this press release and listed below. An explanation of the composition of non-IFRS measures and other financial measures can be found in the Company's MD&A, available on www.sedarplus.ca.

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share

Adjusted net income is a non-IFRS measure and adjusted diluted earnings per share is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 51 of the Company's MD&A for the year ended December 31, 2025. Items used to calculate adjusted net income (loss) and adjusted earnings (loss) per share for the three-month periods and years ended December 31, 2025 and 2024 include those indicated in the chart below:

Adjusted Other Operating Expenses and Efficiency Ratio

Adjusted other operating expenses is a non-IFRS measure and efficiency ratio is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 51 of the Company's MD&A for the year ended December 31, 2025. Items used to calculate adjusted other operating expenses and efficiency ratio for the three-month periods and years ended December 31, 2025 and 2024 include those indicated in the chart below:

Adjusted Operating Margin

Adjusted operating margin is a non-IFRS measure and adjusted operating margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 51 of the Company's MD&A for the year ended December 31, 2025. Items used to calculate adjusted operating income (loss) and adjusted operating margins for the three-month periods and years ended December 31, 2025 and 2024 include those indicated in the chart below:

Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") and EBITDA Margin

EBITDA is a non-IFRS measure, while EBITDA margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 51 of the Company's MD&A for the year ended December 31, 2025. Items used to calculate EBITDA and EBITDA margin for the three-month periods and years ended December 31, 2025 and 2024 include those indicated in the chart below:

Cash Provided by Operating Activities before Net Principal Written

Cash provided by operating activities before net principal written is a non-IFRS measure. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 51 of the Company's MD&A for the year ended December 31, 2025. Items used to calculate Cash provided by operating activities before net principal written for the three-month periods and years ended December 31, 2025 and 2024 include those indicated in the chart below:

Adjusted Return on Receivables

Adjusted return on receivables is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 51 of the Company's MD&A for the year ended December 31, 2025. Items used to calculate adjusted return on assets for the three-month periods and years ended December 31, 2025 and 2024 include those indicated in the chart below: