goeasy (GSY) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 growth, with loan originations of $814M (up 15% year-over-year), revenue of $405M (up 20%), and 46,800 new customers, solidifying leadership in the Canadian non-prime consumer credit market.

• Full-year 2024 revenue rose 21.9% to $1.52B, with adjusted net income up 19% to $290M and adjusted diluted EPS up 18% to $16.71.

• Loan portfolio grew 26% to $4.6B; total originations for the year exceeded $3.2B, serving 1.5 million Canadians to date.

• Recognized for corporate culture and workplace excellence, including Best Workplaces in Canada and Most Admired Corporate Cultures in 2024.

• Annual dividend per share increased 25% to $5.84, marking the 11th consecutive annual increase.

Financial highlights

• Q4 2024 loan originations reached $814M, up 15% year-over-year; loan portfolio ended at $4.6B, up 26%.

• Q4 revenue was a record $405M, up 20% over Q4 2023; adjusted operating income was $168M, up 20% year-over-year.

• Adjusted net income for Q4 was $77.4M, up 12%; adjusted diluted EPS was $4.45, up 11%.

• Efficiency ratio improved to 24.2%, down 410 bps year-over-year; adjusted operating margin for Q4 was 41.6%.

• Free cash flow from operations for 2024 was $412M; annual dividend increased to $5.84 per share.

Outlook and guidance

• Three-year forecast targets loan portfolio of $7–8B and annual revenue of $2.0–$2.2B by 2027, with operating margin above 43%.

• Total yield expected to gradually decline to 29–31% by 2027 due to rate cap and scale benefits.

• Annualized net charge-off rate forecasted to step down to 7.5–9.5% by 2027.

• Q1 2025 guidance: loan portfolio growth of $160M–$185M, yield of 31.25–32.25%, and net charge-off rate between 8.75–9.75%.

• Strategic initiatives for 2025 include launching a revolving card, auto title/refinance products, and investing in technology for efficiency.