goeasy (GSY) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly revenue of $405 million in Q4 2024, up 20% year-over-year, and record annual revenue of $1.52 billion, up 22%, with strong loan originations and stable credit performance.

• Loan portfolio grew 26% to $4.60 billion; annual originations exceeded $3.17 billion, serving 1.5 million Canadians to date.

• Adjusted diluted EPS for Q4 was $4.45, up 11%, and for the year $16.71, up 18%; adjusted net income for Q4 was $77.4 million, up 12%.

• Recognized for corporate culture, including ranking 38th on the 2024 Best Workplaces in Canada list and other awards.

• Annual dividend per share increased 25% to $5.84, marking 11 consecutive years of increases.

Financial highlights

• Q4 2024 revenue reached $405 million, up 20% year-over-year; gross consumer loans receivable grew 26.1% to $4.60 billion.

• Loan originations in Q4 were $814 million, up 15% from Q4 2023; annual originations reached $3.17 billion.

• Adjusted operating income was $168 million, up 20% year-over-year; adjusted net income was $77.4 million, up 12%.

• Adjusted diluted EPS was $4.45, up 11% from Q4 2023; annual adjusted EPS was $16.71, up 18%.

• Efficiency ratio improved to 24.2%, down from 28.3% in Q4 2023.

Outlook and guidance

• Three-year forecast targets loan portfolio of $7–8 billion and annual revenue of $2.0–$2.2 billion by 2027.

• Total yield expected to decline to 29–31% by 2027 due to rate cap and scale benefits; net charge-off rate forecasted at 7.5–9.5%.

• Operating margin expected to expand to above 43% by 2027.

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

• Strategic initiatives for 2025 include launching new products and investing in technology for efficiency.