goeasy Ltd. Reports Results for the First Quarter 2026

Loan Portfolio of $5.36 billion at Q1/26 end, up 12% from $4.80 billion at Q1/25 end
Revenue of $413 million in Q1/26, up 2% compared to $405 million in Q1/25
Net Charge Off Rate¹ of 17.8% in Q1/26, up 890 bps from 8.9% in Q1/25
Diluted Loss Per Share of $3.22 in Q1/26, down from diluted EPS of $2.28 in Q1/25
Adjusted Diluted Loss Per Share¹ of $1.90 in Q1/26, down from Adj. Dil. EPS¹ of $3.49 in Q1/25

MISSISSAUGA, ON, May 12, 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 first quarter ended March 31, 2026.

"We continued to advance our six-point action plan in the first quarter, with cost efficiency measures already taking effect," said Patrick Ens, goeasy's Chief Executive Officer. "In March, we took decisive action to significantly reduce our exposure to merchant-originated loans. Our ending loan book size, total yield, and net charge off rate came in as expected. Our direct-to-consumer business remains strong, and with $560.1 million cash provided by operations before net principal written in the quarter, our liquidity position is solid as we manage through this transitional period."

First Quarter Results

During the quarter, the Company generated $551.3 million in loan originations, down 19% compared to $676.8 million generated in the first quarter of 2025. The decrease in lending, consistent with the Company's six-point action plan, was driven primarily by a reduction in merchant-originated automotive and powersports loan originations, as the Company implemented tighter credit underwriting measures in response to unfavourable credit performance in those portfolios. 

At quarter end, the consumer loan portfolio was $5.36 billion, up 12% from $4.80 billion at the end of the first quarter of 2025, but down $150.0 million or 3% from the end of the fourth quarter of 2025. Organic growth in the Company's consumer loan portfolio was the main driver of growth in revenue, which increased 2% from $404.9 million in the first quarter of 2025 to $412.9 million in the first quarter of 2026. Total annualized yield (including ancillary products) realized on average consumer loans receivable¹ was 27.9% in the quarter, down 330 bps from the same period in 2025, but up 130 bps from the fourth quarter of 2025. Total annualized yield decreased year-over-year mainly due to the impact of higher allowance for credit losses on interest receivable; the continued impact of the lowered maximum allowable rate of interest on the Company's unsecured lending product; and a higher proportion of larger dollar value loans, which have reduced pricing on certain ancillary products.

During the quarter, the annualized net charge off rate was 17.8%, up 890 bps from 8.9% in the first quarter of 2025, but down 600 bps from the fourth quarter of 2025. Annualized net charge off rate increased year -over-year primarily due to higher charge offs in the merchant-originated automotive and powersports loan portfolios. The total allowance for credit losses on gross consumer loans increased to $541.2 million from $382.8 million as at March 31, 2025, mainly due to the Company's current view of collectability and an increase in the credit loss outlook for the merchant-originated automotive and powersports loans. The rate of allowance for expected credit losses, defined as the allowance for credit losses on gross consumer loans receivable as a percentage of the ending gross consumer loans receivable, increased from 9.57% as at December 31, 2025 to 10.09% as at March 31, 2026, driven primarily by unfavourable changes in the macroeconomic forecast data used in the Company's IFRS 9 allowance model.

Operating income for the first quarter of 2026 was $28.9 million, down 80% from $144.1 million in the first quarter of 2025. After adjusting for unusual and non-recurring items, the Company reported adjusted operating income² of $36.9 million, a decrease from $147.4 million in the first quarter of 2025. The efficiency ratio¹ for the first quarter of 2026 was 24.5%, a 160 bps improvement from 26.1% in the first quarter of 2025.

Net loss for the first quarter of 2026 was $53.0 million, down from net income of $38.7 million in the first quarter of 2025, and diluted loss per share was $3.22, down from diluted earnings per share of $2.28 reported in the first quarter of 2025. Adjusted net loss² for the first quarter of 2026 was $31.3 million, down from adjusted net income² of $59.3 million in the first quarter of 2025. The decrease in adjusted net income was primarily driven by lower adjusted operating income from lower total yield on consumer loans (including ancillary products) and elevated credit losses. Adjusted diluted loss per share¹ was $1.90, down from adjusted diluted earnings per share¹ of $3.49 in the first quarter of 2025.

Balance Sheet and Liquidity

Total assets were $5.82 billion as at March 31, 2026, an increase of 9% from $5.34 billion as at March 31, 2025, primarily driven by growth in consumer loans receivable and cash. Cash provided by operations before net principal written² in the first quarter of 2026 was $560.1 million, compared to $410.7 million in the first quarter of 2025. The Company's debt-to-adjusted tangible equity ratio³, a capital management measure for leverage, was 5.30x as at March 31, 2026, compared to 3.69x as at March 31, 2025. The average blended coupon interest rate for the Company's debt as at March 31, 2026 was 6.6%.

As at March 31, 2026, goeasy had liquidity (cash on hand plus unused contractual borrowing capacity) of $1.10 billion (of which $743 million is not currently available to be drawn by the Company). Subsequent to quarter end, the Company used existing liquidity to repay the US$64.6 million senior unsecured notes that matured on May 1, 2026. The Company was not subject to financial covenant compliance, and was in compliance with all other applicable covenants, for the Revolving Securitization Warehouse Facility I as at March 31, 2026. The Company was in compliance with all of its covenants (including financial covenants) under its Revolving Credit Facility agreement as at March 31, 2026. The Company continues to progress toward transitioning to a replacement backup servicer and completing a satisfactory audit in respect of the Revolving Securitization Warehouse Facility I, completion of which will permit additional draws on the facility.

Selected Additional First Quarter Information
(March 31, 2026 relative to March 31, 2025, where applicable)

• 44% of gross consumer loans receivable secured, down from 46%
• Total number of active lending customers at 466,000, up 7%
• 71% of net loan advances¹ in the quarter were issued to new customers, down from 73%
• Weighted average interest rate⁴ on consumer loans of 28.5%, up from 26.5%
• 86.6% of gross consumer loans receivable, on a dollar-weighted basis, carried an interest rate less than or equal to a 35% Annual Percentage Rate, being the maximum allowable interest rate for new loans written after January 1, 2025

Updated 2026 Outlook

The Company disclosed its first quarter 2026 outlook, along with the relevant assumptions and risk factors, in its fourth quarter 2025 MD&A. The Company's actual first quarter performance was consistent with its first quarter 2026 outlook across all three measures. The Company continues to focus on prudent management of liquidity, strengthening of credit performance, and alignment of its capital structure. Management remains confident in goeasy's ability to return to its long track record of strong credit performance and returns that will reinforce confidence among shareholders and other stakeholders.

	Q2 2026 Outlook	Full Year 2026 Commentary
Gross consumer loans receivable at period end	$4.9 to $5.1 billion	Expected to decline from December 31, 2025 level before resuming growth in the later part of the year
Total yield on consumer loans (including ancillary products)^1	27.0% to 28.5%	Expected to improve over course of the year as charge offs decline
Net charge offs as a percentage of average gross consumer loans receivable^1	16.0% to 17.5%	Expected to be in the mid-teens for full year 2026; improvement is expected as the year progresses

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

Share Repurchases and Dividend Payments

In consideration of recent developments that affected earnings in 2025, the Board of Directors (the "Board") 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 Shareholder Rights Plan

The Company also announced today that the Board has approved the adoption of a shareholder rights plan (the "SRP") pursuant to a shareholder rights plan agreement entered into with TSX Trust Company, as rights agent, dated May 12, 2026 (the "Effective Date").

The SRP has been adopted to: (i) ensure that all shareholders of the Company are treated fairly in connection with any unsolicited take-over bid or acquisition of control of the Company (including by way of a "creeping" take-over bid); (ii) provide the Board and shareholders of the Company with adequate time to consider and evaluate any unsolicited take-over bid or similar transaction; and (iii) enable the Board to identify, solicit, develop and negotiate any value-enhancing alternatives, as may be considered appropriate, to any unsolicited take-over bids or similar transaction.

The SRP is similar to rights plans adopted by other Canadian companies and ratified by their shareholders. The SRP is not being adopted in response to any specific proposal or intention to acquire control of the Company, and the Board is not aware of any pending or threatened take-over bid for the Company.

Pursuant to the SRP, one right will attach to each issued and outstanding common share of the Company. Subject to the terms of SRP, the rights become exercisable if any person (together with certain related parties) becomes a beneficial owner of 20% or more of the outstanding common shares without complying with the "Permitted Bid" provisions of the SRP. In such event, holders of the rights (other than the acquiring person and its related parties) will be permitted to exercise their rights to purchase additional common shares at a substantial discount to the then market price of the common shares.

The SRP has been conditionally accepted by the Toronto Stock Exchange. While the SRP is effective as of the Effective Date, it is subject to ratification by the Company's shareholders at a meeting of shareholders to be held within six months of its Effective Date. The Company currently expects to seek shareholder ratification of the SRP at a special meeting to be called and held within that six-month period (the "Meeting"). If the SRP is not ratified by shareholders within that six-month period, it, together with the outstanding rights, will terminate and cease to be effective.

A summary of the principal terms of the SRP will be included in the management proxy circular to be sent to shareholders in connection with the Meeting. The full text of the SRP 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 inclusion of the SRP in the management information circular for any Meeting and the calling and the holding of any such Meeting and the timing thereof; and the approval, ratification and confirmation of the SRP. 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 Q2 2026 outlook and full year 2026 commentary presented above under the heading "Updated 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
[email protected]

For media inquiries, contact:

[email protected]

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.
⁴ These are supplementary financial measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release.

goeasy Ltd.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in thousands of Canadian dollars)
			As At	As At
			March 31,	December 31,
			2026	2025
ASSETS
Cash			356,237	152,661
Accounts receivable			40,307	42,361
Prepaid expenses			13,877	9,159
Income taxes recoverable			109,467	90,559
Consumer loans receivable, net			4,982,870	5,155,360
Investments			23,117	29,103
Lease assets, net			33,851	36,656
Derivative financial assets			31,138	11,146
Deferred income tax assets			25,831	22,250
Property and equipment, net			28,634	30,788
Right-of-use assets, net			51,135	52,510
Intangible assets, net			103,914	104,142
Goodwill			21,310	21,310
TOTAL ASSETS			5,821,688	5,758,005
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Revolving credit facility			310,310	175,052
Accounts payable and other liabilities			79,585	107,842
Dividends payable			-	23,398
Unearned revenue			29,962	31,219
Accrued interest payable			84,970	68,533
Deferred income tax liabilities			11,064	5,367
Lease liabilities			57,840	59,451
Secured borrowings			71,612	88,783
Revolving securitization warehouse facilities			609,561	611,015
Derivative financial liabilities			14,402	46,107
Notes payable			3,751,143	3,690,818
TOTAL LIABILITIES			5,020,449	4,907,585
Shareholders' equity
Share capital			431,264	430,325
Contributed surplus			25,244	26,782
Accumulated other comprehensive loss			(8,960)	(13,367)
Retained earnings			353,691	406,680
TOTAL SHAREHOLDERS' EQUITY			801,239	850,420
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			5,821,688	5,758,005

goeasy Ltd.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
(Expressed in thousands of Canadian dollars, except earnings (loss) per share)
			Three Months Ended
			March 31,	March 31,
			2026	2025
				Restated
REVENUE
Interest income			317,910	308,891
Lease revenue			20,045	22,242
Commissions earned			70,063	68,187
Charges and fees			4,839	5,603
			412,857	404,923
OPERATING EXPENSES
BAD DEBTS			267,200	145,023
OTHER OPERATING EXPENSES
Salaries and benefits			52,664	49,463
Share-based compensation			(1,062)	4,441
Technology costs			11,370	12,220
Underwriting and collections			9,385	7,162
Occupancy			5,714	5,672
Restructuring charges			4,763	-
Advertising and promotion			3,263	8,686
Other expenses			10,690	7,681
			96,787	95,325
DEPRECIATION AND AMORTIZATION
Depreciation of lease assets			6,485	6,983
Amortization of intangible assets			5,525	5,646
Depreciation of right-of-use assets			5,342	5,297
Depreciation of property and equipment			2,642	2,597
			19,994	20,523
TOTAL OPERATING EXPENSES			383,981	260,871
OPERATING INCOME			28,876	144,052
OTHER LOSS			(5,986)	-
FINANCE COSTS			(93,163)	(89,651)
INCOME (LOSS) BEFORE INCOME TAXES			(70,273)	54,401
INCOME TAX EXPENSE (RECOVERY)
Current			(18,908)	30,896
Deferred			1,624	(15,204)
			(17,284)	15,692
NET INCOME (LOSS)			(52,989)	38,709
BASIC EARNINGS (LOSS) PER SHARE			(3.22)	2.30
DILUTED EARNINGS (LOSS) PER SHARE			(3.22)	2.28

SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT
(Expressed in thousands of Canadian dollars, except earnings per share)
	Three Months Ended March 31, 2026
	easyfinancial	easyhome	Corporate	Total
Revenue
Interest income	303,582	14,328	-	317,910
Lease revenue	-	20,045	-	20,045
Commissions earned	66,006	4,057	-	70,063
Charges and fees	4,067	772	-	4,839
	373,655	39,202	-	412,857
Operating expenses
Bad debts	256,799	10,401	-	267,200
Other operating expenses	63,908	12,704	20,175	96,787
Depreciation and amortization	9,916	8,488	1,590	19,994
	330,623	31,593	21,765	383,981
Operating income (loss)	43,032	7,609	(21,765)	28,876
Other loss				(5,986)
Finance costs				(93,163)
Loss before income taxes				(70,273)
Income tax recovery				(17,284)
Net loss				(52,989)
Diluted loss per share				(3.22)
	Three Months Ended March 31, 2025
	(As restated)
	easyfinancial	easyhome	Corporate	Total
Revenue
Interest income	298,408	10,483	-	308,891
Lease revenue	-	22,242	-	22,242
Commissions earned	64,625	3,562	-	68,187
Charges and fees	4,848	755	-	5,603
	367,881	37,042	-	404,923
Operating expenses
Bad debts	140,467	4,556	-	145,023
Other operating expenses	61,526	13,924	19,875	95,325
Depreciation and amortization	9,737	9,063	1,723	20,523
	211,730	27,543	21,598	260,871
Operating income (loss)	156,151	9,499	(21,598)	144,052
Other income				-
Finance costs				(89,651)
Income before income taxes				54,401
Income tax expense				15,692
Net income				38,709
Diluted earnings per share				2.28

SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS

	Three Months Ended
($ in 000's except earnings per share and percentages)	March 31,   2026	March 31,   2025  (As restated)	Variance   $ / bps	Variance   % Change
Summary Financial Results
Revenue	412,857	404,923	7,934	2.0 %
Bad debts	267,200	145,023	122,177	84.2 %
Other operating expenses	96,787	95,325	1,462	1.5 %
EBITDA^1	36,399	157,592	(121,193)	(76.9 %)
EBITDA margin^1	8.8 %	38.9 %	(3,010 bps)	(77.4 %)
Depreciation and amortization	19,994	20,523	(529)	(2.6 %)
Operating income	28,876	144,052	(115,176)	(80.0 %)
Operating margin	7.0 %	35.6 %	(2,860 bps)	(80.3 %)
Other income (loss)	(5,986)	-	(5,986)	(100.0 %)
Finance costs	93,163	89,651	3,512	3.9 %
Effective income tax rate	24.6 %	28.8 %	(420 bps)	(14.7 %)
Net income (loss)	(52,989)	38,709	(91,698)	(236.9 %)
Diluted earnings (loss) per share	(3.22)	2.28	(5.50)	(241.2 %)
Return on receivables	(3.9 %)	3.3 %	(720 bps)	(218.2 %)
Return on assets	(3.7 %)	2.9 %	(660 bps)	(227.6 %)
Return on equity	(25.7 %)	13.4 %	(3,910 bps)	(291.8 %)
Return on tangible common equity^1	(26.8 %)	17.9 %	(4,470 bps)	(249.7 %)
Adjusted Financial Results^1,2
Other operating expenses	98,509	102,216	(3,707)	(3.6 %)
Efficiency ratio	24.5 %	26.1 %	(160 bps)	(6.1 %)
Operating income	36,914	147,419	(110,505)	(75.0 %)
Operating margin	8.9 %	36.4 %	(2,750 bps)	(75.6 %)
Net income (loss)	(31,313)	59,349	(90,662)	(152.8 %)
Diluted earnings per share	(1.90)	3.49	(5.39)	(154.4 %)
Return on receivables	(2.3 %)	5.0 %	(730 bps)	(146.0 %)
Return on assets	(2.2 %)	4.5 %	(670 bps)	(148.9 %)
Return on equity	(15.2 %)	20.5 %	(3,570 bps)	(174.1 %)
Return on tangible common equity	(16.6 %)	25.9 %	(4,250 bps)	(164.1 %)
Key Performance Indicators
Segment Financials
easyfinancial revenue	373,655	367,881	5,774	1.6 %
easyfinancial operating margin	11.5 %	42.4 %	(3,090 bps)	(72.9 %)
easyhome revenue	39,202	37,042	2,160	5.8 %
easyhome operating margin	19.4 %	25.6 %	(620 bps)	(24.2 %)
Portfolio Indicators
Gross consumer loans receivable	5,363,456	4,795,387	568,069	11.8 %
Growth in consumer loans receivable	(150,011)	192,950	(342,961)	(177.7 %)
Gross loan originations	551,314	676,769	(125,455)	(18.5 %)
Total yield on consumer loans (including ancillary products)^1	27.9 %	31.2 %	(330 bps)	(10.5 %)
Net charge offs as a percentage of average gross consumer loans receivable^1	17.8 %	8.9 %	890 bps	100.2 %
Cash provided by operations before net principal written^1	560,108	410,747	149,361	36.4 %
Potential monthly leasing revenue^1	5,820	6,727	(907)	(13.5 %)

^1EBITDA, adjusted other operating expenses, adjusted operating income (loss), adjusted net income (loss) and cash provided by operations before net principal written are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings (loss) per share, adjusted return on receivables, adjusted return on equity, adjusted return on assets, reported and adjusted return on tangible common equity, total yield on consumer loans (including ancillary products) and net charge offs as a percentage of average gross consumer loans receivable are non-IFRS ratios. See description in sections "Portfolio Analysis", "Key Performance Indicators and Non-IFRS Measures" and "Financial Condition". ^2 Adjusting items are discussed in the "Key Performance Indicators and Non-IFRS Measures" section.

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 (loss) is a non-IFRS measure and adjusted diluted earnings (loss) per share is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted net income (loss) and adjusted diluted earnings (loss) per share for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except earnings per share)	March 31,  2026	March 31,  2025  (As restated)
Net income (loss)	(52,989)	38,709
Impact of adjusting items
Other operating expenses
Restructuring charges^1	4,763	-
Integration costs^2	-	92
Depreciation and amortization
Amortization of acquired intangible assets^3	3,275	3,275
Other loss ^4	5,986	-
Finance costs
Fair value change on prepayment options related to Notes Payable^5	13,309	24,714
Total pre-tax impact of adjusting items	27,333	28,081
Income tax impact of above adjusting items	(5,657)	(7,441)
After-tax impact of adjusting items	21,676	20,640
Adjusted net income (loss)	(31,313)	59,349
Weighted average number of diluted shares outstanding	16,456	17,007
Diluted earnings (loss) per share	(3.22)	2.28
Per share impact of adjusting items	1.32	1.21
Adjusted diluted earnings (loss) per share	(1.90)	3.49

Adjusting item related to restructuring charges 

¹ The Company completed a restructuring exercise in March 2026 and incurred a total of $4.8 million related to severance costs, settlement claims and consulting fees. 

Adjusting items related to the LendCare acquisition 

² Integration costs related to representation and warranty insurance costs, and other integration costs related to the acquisition of LendCare.  

³ Amortization of the $131 million intangible asset related to the acquisition of LendCare, with an estimated useful life of ten years. 

Adjusting item related to other loss  

⁴ For the three-month period ended March 31, 2026, net investment loss was due to fair value changes in the Company's investments. 

Adjusting item related to prepayment options embedded in the Notes Payable 

⁵ For the three-month periods ended March 31, 2026 and 2025, the Company recognized a fair value change on the prepayment options related to Notes Payable. 

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 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted other operating expenses and efficiency ratio for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except earnings per share)	March 31,  2026	March 31,  2025  (As restated)
Other operating expenses	96,787	95,325
Impact of adjusting items^1
Other operating expenses
Restructuring charges	(4,763)	-
Integration costs	-	(92)
Depreciation and amortization
Depreciation of lease assets	6,485	6,983
Total impact of adjusting items	1,722	6,891
Adjusted other operating expenses	98,509	102,216
Total revenue	412,857	404,923
Less: Bad debts on interest receivable	(10,879)	(13,739)
Adjusted Financial Revenue	401,978	391,184
Efficiency ratio	24.5 %	26.1 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. 

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 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted operating income (loss) and adjusted operating margins for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	March 31,  2026	March 31,  2026 (adjusted)	March 31,  2025  (As restated)	March 31,  2025  (adjusted)  (As restated)
easyfinancial
Operating income (loss)	43,032	43,032	156,151	156,151
Divided by revenue	373,655	373,655	367,881	367,881
easyfinancial operating margin	11.5 %	11.5 %	42.4 %	42.4 %
easyhome
Operating income	7,609	7,609	9,499	9,499
Divided by revenue	39,202	39,202	37,042	37,042
easyhome operating margin	19.4 %	19.4 %	25.6 %	25.6 %
Total
Operating income (loss)	28,876	28,876	144,052	144,052
Other operating expenses^1
Restructuring charges	-	4,763	-	-
Integration costs	-	-	-	92
Depreciation and amortization^1
Amortization of acquired intangible assets	-	3,275	-	3,275
Adjusted operating income (loss)	28,876	36,914	144,052	147,419
Divided by revenue	412,857	412,857	404,923	404,923
Total operating margin	7.0 %	8.9 %	35.6 %	36.4 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.

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 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate EBITDA and EBITDA margin for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	March 31,  2026	March 31,  2025  (As restated)
Net income (loss)	(52,989)	38,709
Finance cost	93,163	89,651
Income tax expense	(17,284)	15,692
Depreciation and amortization	19,994	20,523
Depreciation of lease assets	(6,485)	(6,983)
EBITDA	36,399	157,592
Divided by revenue	412,857	404,923
EBITDA margin	8.8 %	38.9 %

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 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate cash provided by operating activities before net principal written for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's)	March 31,  2026	March 31,  2025  (As restated)
Cash provided by (used in) operating activities	122,296	(180,312)
Net principal written	437,812	591,059
Cash provided by operating activities before net principal written	560,108	410,747

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 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted return on receivables for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	March 31,  2026	March 31,  2026   (adjusted)	March 31,  2025  (As restated)	March 31,  2025   (adjusted)  (As restated)
Net income (loss)	(52,989)	(52,989)	38,709	38,709
After-tax impact of adjusting items^1	-	21,676	-	20,640
Adjusted net income (loss)	(52,989)	(31,313)	38,709	59,349
Multiplied by number of periods in a year	X 4	X 4	X 4	X 4
Divided by average gross consumer loans receivable	5,454,278	5,454,278	4,712,699	4,712,699
Return on receivables	(3.9 %)	(2.3 %)	3.3 %	5.0 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. 

Adjusted Return on Assets

Adjusted return on assets is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted return on assets for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	March 31,  2026	March 31,  2026   (adjusted)	March 31,  2025  (As restated)	March 31,  2025   (adjusted)  (As restated)
Net income (loss)	(52,989)	(52,989)	38,709	38,709
After-tax impact of adjusting items^1	-	21,676	-	20,640
Adjusted net income (loss)	(52,989)	(31,313)	38,709	59,349
Multiplied by number of periods in a year	X 4	X 4	X 4	X 4
Divided by average total assets for the period	5,789,846	5,789,846	5,276,581	5,276,581
Return on assets	(3.7 %)	(2.2 %)	2.9 %	4.5 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. 

Adjusted Return on Equity

Adjusted return on equity is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted return on equity for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	March 31,  2026	March 31,  2026   (adjusted)	March 31,  2025  (As restated)	March 31,  2025   (adjusted)  (As restated)
Net income (loss)	(52,989)	(52,989)	38,709	38,709
After-tax impact of adjusting items^1	-	21,676	-	20,640
Adjusted net income (loss)	(52,989)	(31,313)	38,709	59,349
Multiplied by number of periods in a year	X 4	X 4	X 4	X 4
Divided by average shareholders' equity for the period	825,829	825,829	1,157,511	1,157,511
Return on equity	(25.7 %)	(15.2 %)	13.4 %	20.5 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. 

Reported and Adjusted Return on Tangible Common Equity

Reported and adjusted return on tangible common equity are non-IFRS ratios. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 33 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate reported and adjusted return on tangible common equity for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	March 31,  2026	March 31,  2026   (adjusted)	March 31,  2025  (As restated)	March 31,  2025   (adjusted)  (As restated)
Net income (loss)	(52,989)	(52,989)	38,709	38,709
Amortization of acquired intangible assets	3,275	3,275	3,275	3,275
Income tax impact of the above item	(868)	(868)	(868)	(868)
Net income before amortization of acquired intangible assets, net of income tax	(50,582)	(50,582)	41,116	41,116
Impact of adjusting items^1
Other operating expenses
Restructuring charges	-	4,763	-	-
Integration costs	-	-	-	92
Other loss	-	5,986	-	-
Finance costs
Fair value change on prepayment options related to Notes Payable	-	13,309	-	24,714
Total pre-tax impact of adjusting items	(50,582)	24,058	-	24,806
Income tax impact of above adjusting items	-	(4,789)	-	(6,573)
After-tax impact of adjusting items	-	19,269	-	18,233
Adjusted net income (loss)	(50,582)	(31,313)	41,116	59,349
Multiplied by number of periods in a year	X 4	X 4	X 4	X 4
Average shareholders' equity	825,829	825,829	1,157,511	1,157,511
Average goodwill	(21,310)	(21,310)	(180,923)	(180,923)
Average acquired intangible assets^2	(68,229)	(68,229)	(81,329)	(81,329)
Average related deferred tax liabilities	18,081	18,081	21,552	21,552
Divided by average tangible common equity	754,371	754,371	916,811	916,811
Return on tangible common equity	(26.8 %)	(16.6 %)	17.9 %	25.9 %

¹ For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. 

² Excludes intangible assets relating to software

easyhome Financial Revenue

easyhome financial revenue is a non-IFRS measure. It is calculated as total company revenue less easyfinancial revenue and leasing revenue. The Company believes that easyhome financial revenue is an important measure of the performance of the easyhome segment. Items used to calculate easyhome financial revenue for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

($in 000's)	Three Months Ended
	March 31, 2026	March 31, 2025 (As restated)
Total company revenue	412,857	404,923
Less: easyfinancial revenue	(373,655)	(367,881)
Less: leasing revenue	(21,273)	(23,515)
easyhome financial revenue	17,929	13,527

Total Yield on Consumer Loans as a Percentage of Average Gross Consumer Loans Receivable

Total yield on consumer loans as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section "Portfolio Analysis" on page 20 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($ in 000's except percentages)	March 31,  2026	March 31,  2025  (As restated)
Total Company revenue	412,857	404,923
Less: Leasing revenue	(21,273)	(23,515)
Less: Bad debts on interest income	(10,879)	(13,739)
Adjusted Financial revenue	380,705	367,669
Multiplied by number of periods in a year	X 4	X 4
Divided by average gross consumer loans receivable	5,454,278	4,712,699
Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized)	27.9 %	31.2 %

Net Charge Offs as a Percentage of Average Gross Consumer Loans Receivable

Net charge Offs as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section "Portfolio Analysis" on page 20 of the Company's MD&A for the three-month period ended March 31, 2026. Items used to calculate net charge Offs as a percentage of average gross consumer loans receivable for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:

	Three Months Ended
($in 000's except percentages)	March 31, 2026	March 31, 2025 (As restated)
Net charge offs on gross consumer loans receivable	242,581	104,758
Multiplied by number of periods in a year	X 4	X 4
Divided by average gross consumer loans receivable	5,454,278	4,712,699
Net charge offs as a percentage of average gross consumer loans receivable (annualized)	17.8 %	8.9 %

Net Principal Written and Percentage Net Principal Written to New Customers

Net principal written (Net loan advances) is a non-IFRS measure. See description in section "Portfolio Analysis" on page 20 of the Company's MD&A for the three-month period ended March 31, 2026. The percentage of net loan advances to new customers is a non-IFRS ratio. It is calculated as loan originations to new customers divided by the net principal written. The Company uses percentage of net loan advances to new customers, among other measures, to assess the operating performance of its lending business.  Items used to calculate the percentage of net loan advances to new customers for the three-month periods ended for the three-month period ended March 31, 2026 include those indicated in the chart below:

	Three Months Ended
($ in 000's)	March 31,  2026	March 31,  2025
Gross loan originations	551,314	676,769
Loan originations to new customers	312,694	431,949
Loan originations to existing customers	238,620	244,820
Less: Proceeds applied to repay existing loans	(113,502)	(85,710)
Net advance to existing customers	125,118	159,110
Net principal written	437,812	591,059
Percentage net advances to new customers	71.4 %	73.1 %

Debt to Adjusted Tangible Equity

Debt to adjusted tangible equity is a capital management measure. Refer to "Financial Condition" section on page 41 of the Company's MD&A for the three-month period ended March 31, 2026. 

Weighted Average Interest Rate

Weighted average interest rate is a supplementary financial measure. It is calculated as the sum of individual loan balance multiplied by interest rate divided by gross consumer loans receivable.

SOURCE goeasy Ltd.