goeasy (GSY) investor relations material

Executive summary

• Achieved record Q2 loan originations of $904M, up 9% year-over-year, and loan book growth of $313M, surpassing outlook.

• Revenue reached a record $418M, up 11% year-over-year, with net income of $87M, up 32% from prior year.

• Net charge off rate improved to 8.8%, at the low end of guidance, aided by a higher secured loan mix and underwriting enhancements.

• Adjusted EPS was $4.11, flat year-over-year despite regulatory headwinds; diluted EPS was $5.19.

• Strategy and full-year forecasts reiterated under new CEO, with continued investment in technology and automation.

Financial highlights

• Gross consumer loans receivable grew by $313M in Q2 to $5.1B, exceeding the $275M–$300M outlook.

• Originations exceeded $900M, up 9% year-over-year, with growth across all lending segments.

• Adjusted operating income rose 7% to $164M; adjusted operating margin was 39.3%, down from 40.5% last year.

• Efficiency ratio improved to 25.6%, a 130 bps reduction year-over-year.

• Return on equity for Q2 was 29.3%, up from 23.3% last year; adjusted ROE was 23.2%, down from 25.4%.

Outlook and guidance

• Q3 loan book growth targeted at $325M–$350M, with yield and net charge offs expected to remain stable.

• Full-year 2025 gross consumer loan receivables forecasted at the top end of $5.4B–$5.7B; revenue $1.62B–$1.82B.

• Three-year forecast targets $7.35B–$7.75B in loans and 23%+ ROE by 2027.

• Company estimates ability to grow loan portfolio by $350M/year from internal cash flows, and $500M/year once debt is fully utilized.