goeasy (GSY) investor relations material

Executive summary

• Q4 2025 saw significant losses due to elevated net charge-offs, a CAD 160 million goodwill impairment at LendCare, and increased credit provisions, prompting a six-point action plan and leadership changes including a new CEO and CFO.

• Loan portfolio grew 20% year-over-year to CAD 5.51 billion, with strong demand and originations up 17% in Q4.

• Immediate actions included suspending dividends and share repurchases, workforce reduction of 9% for CAD 30 million in annualized savings, and tightening credit at LendCare.

• Growth focus shifted to the easyfinancial direct-to-consumer business, which continues to show strong credit performance.

Financial highlights

• Q4 profitability was significantly impacted by a CAD 72 million increase in credit loss allowance, CAD 178 million in incremental charge-offs, and a CAD 160 million goodwill impairment, all related to LendCare.

• Q4 2025 revenue was CAD 406 million, flat year-over-year; full-year revenue rose 11% to CAD 1.70 billion.

• Q4 net loss was CAD 337 million (vs. CAD 54 million profit in Q4 2024); full-year net loss was CAD 178 million (vs. CAD 264 million profit in 2024).

• Q4 bad debts surged to CAD 419 million, up 165% year-over-year; full-year bad debts totaled CAD 884 million, up 75%.

• Book value per share declined 25.3% to CAD 53.07.

Outlook and guidance

• Q1 2026 gross consumer loans receivable expected between CAD 5.3–5.4 billion, with yield on consumer loans at 27–28% and net charge-offs at 17.5–18.5%.

• Gross loans receivable expected to decline in H1 2026, resuming growth in H2; net charge-offs to average mid-teens for the year.

• No detailed three-year guidance provided; commercial targets to be shared later in 2026.