goeasy Ltd. Reports Results for the Third Quarter 2026
Diluted Loss Per Share of $1.03 in Q3/26, down from diluted EPS of $0.96 in Q2/26
Adjusted Diluted Loss Per Share1 of $0.94 in Q3/26, down from Adj. Dil. EPS1 of $1.02 in Q2/26
Gross Consumer Loans Receivable of $4.88 billion at Q3/26 end, down 2% from $5.00 billion at Q2/26
Total Yield On Consumer Loans1,4 of 27.7% in Q3/26, down 60 bps from 28.3% in Q2/26
Net Charge Off Rate1 of 15.2% in Q3/26, down 150 bps from 16.7% in Q2/26
Cash Provided By Operating Activities Before Net Principal Written2 of $606.8 million, up from $585.4 million in Q2/26
MISSISSAUGA, ON, Nov. 10, 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 third quarter ended September 30, 2026.
"Through the focused efforts of the entire goeasy team, we made significant progress this quarter in executing our six-point plan," said Patrick Ens, goeasy's Chief Executive Officer. "We reduced our net charge off rate by 150 basis points compared to the prior quarter, generated $606.8 million in cash from operating activities before net principal written, grew our cash balance by $179.7 million with nil outstanding on our revolving credit facility, and renewed our revolving securitization warehouse facility at a reduced interest rate. As well as achieving a more robust liquidity position, goeasy also increased our direct-to-consumer gross loans receivable over the course of the quarter, an important milestone as we continue to strengthen our foundation for sustainable, profitable growth."
Third Quarter Results
During the quarter, the Company funded $567.5 million in gross loan originations, down 40% compared to $945.7 million in the third quarter of 2025. The decrease in lending, consistent with the Company's six-point plan, was primarily due to a reduction in merchant-originated automotive and powersports loan originations attributable to the implementation of tighter credit underwriting measures as those portfolios continued to exhibit unfavourable credit risk performance.
Gross consumer loans receivable decreased 10% to $4.88 billion as at September 30, 2026 from $5.44 billion at the end of the third quarter of 2025, and decreased 2% from $5.00 billion at the end of the second quarter of 2026. The decrease in the Company's average consumer loans receivable and lower total yield on consumer loans (including ancillary products) were the main drivers of the 18% decrease in revenue from $454.2 million in the third quarter of 2025 to $371.6 million in the third quarter of 2026. Total yield on consumer loans (including ancillary products)1 realized by the Company on its average consumer loans receivable was 27.7% in the quarter, down 370 bps from the same period in 2025, and down 60 bps from the second quarter of 2026. Total annualized yield decreased year-over-year mainly due to the impact of the higher charge offs on gross consumer loans receivable and higher bad debt expenses on interest receivable, lower yields on certain ancillary products as a result of a decline in commissions and fees earned due to credit tightening in merchant-originated loan originations and a moderate reduction in direct to consumer loan originations, as well as a higher proportion of larger dollar value loans, and the continued impact of the lowered maximum allowable rate of interest on the Company's unsecured lending products.
During the quarter, net charge offs as a percentage of average gross consumer loans receivable1 was 15.2%, up 620 bps from 9.0% in the third quarter of 2025. Net charge offs as a percentage of average gross consumer loans receivable1 increased year-over-year primarily due to higher charge offs in the merchant-originated automotive and powersports loan portfolios, higher charge offs in the direct-to-consumer portfolio and lower average gross consumer loans receivable. Net charge offs were down 150 bps from 16.7% in the second quarter of 2026, mainly due to the continuation of improved credit risk performance in the merchant-originated automotive and powersports loan portfolios and lower charge offs in the direct-to-consumer portfolio.
The total allowance for credit losses on gross consumer loans increased to $516.3 million from $451.7 million as at September 30, 2025, mainly due to the Company's Q4 2025 revised assessment of collectability and an increase in the credit loss outlook for merchant-originated automotive and powersports loans. For the three-month period ended September 30, 2026, the net change in allowance for credit losses on gross consumer loans was $16.7 million, compared to $45.0 million in the same period of 2025. This change was primarily due to lower growth in the three-month period ended September 30, 2026 compared to the same period of 2025, which was partially offset by an increase in the rate of allowance for expected credit losses. 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 9.99% as at June 30, 2026 to 10.59% as at September 30, 2026, driven primarily by expected higher credit losses in the merchant-originated automotive and powersports loan portfolio and the unsecured lending product and unfavourable changes in the macroeconomic outlook incorporated into the Company's IFRS 9 expected credit loss model.
Operating income for the third quarter of 2026 was $53.0 million, down 67% from $159.8 million in the third quarter of 2025. After adjusting for unusual and non-recurring items, the Company reported adjusted operating income2 of $56.3 million, a decrease from $163.4 million in the third quarter of 2025. The efficiency ratio1 for the third quarter of 2026 was 25.1%, a decline from 23.4% in the third quarter of 2025.
Net loss for the third quarter of 2026 was $17.0 million, down from net income of $28.4 million in the third quarter of 2025. Diluted loss per share was $1.03, down from diluted earnings per share of $1.70 reported in the third quarter of 2025. Adjusted net loss2 for the third quarter of 2026 was $15.5 million, down from adjusted net income2 of $64.2 million in the third 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 $0.94, down from adjusted diluted earnings per share1 of $3.84 in the third quarter of 2025.
Balance Sheet and Liquidity
Total assets were $5.44 billion as at September 30, 2026, a decrease of 13% from $6.24 billion as at September 30, 2025, related primarily to a $692.8 million decrease in net consumer loans receivable, driven by lower originations during the period and higher charge offs recognized from the fourth quarter of 2025 to the third quarter of 2026, and impairment of goodwill related to the LendCare cash-generating unit. Cash provided by operating activities before net principal written2 in the third quarter of 2026 was $606.8 million, compared to $623.0 million in the third quarter of 2025. The Company's debt-to-adjusted tangible equity ratio3, a capital management measure for leverage, was 5.02x as at September 30, 2026, compared to 4.16x as at September 30, 2025 and 4.95x as at June 30, 2026. The average blended coupon interest rate for the Company's debt as at September 30, 2026 was 6.8%.
As at September 30, 2026, goeasy had liquidity (cash on hand plus unused contractual borrowing capacity) of $1.23 billion. On September 29, 2026, the Company renewed its revolving securitization warehouse facility collateralized by consumer loans (the "Securitization Facility") and restored its ability to make additional draws on the Securitization Facility, subject to certain conditions. The renewed Securitization Facility provides total contractual borrowing capacity of $910 million, reduced from $1.12 billion to better align with the Company's anticipated funding requirements during the renewed term while reducing costs associated with unused capacity. Advances under the Securitization Facility will bear interest at an annual rate of Adjusted Daily Compounded Canadian Overnight Repo Rate Average ("Adjusted CORRA") plus 275 bps, a 35 bps decrease from the 310 bps spread over Adjusted CORRA applicable under the Securitization Facility previously. The lending syndicate was unchanged.
The Company has initiated conversations with the lenders under its Revolving Credit Facility to discuss the extension of the facility, as well as amendments to the financial covenants and other terms to help support ongoing covenant compliance in the coming quarters and through the extended term of the facility. The Company does not currently have any amounts drawn on the Revolving Credit Facility and does not anticipate any draws in the near term given its current liquidity position. The Company was in compliance with all of its covenants (including financial covenants) under its Revolving Credit Facility as at September 30, 2026. The Company was not subject to financial covenant compliance, and was in compliance with all other applicable covenants, for the Securitization Facility as at September 30, 2026.
Selected Additional Third Quarter Information
(September 30, 2026 relative to September 30, 2025, where applicable)
- 43% of gross consumer loans receivable secured, down from 48%
- Total number of active lending customers at 423,000, down 7%
- 59% of net loan advances1 in the quarter were issued to new customers, down from 73%
- 89.0% 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
Nine Months Results
For the first nine months of 2026, the Company funded $1.39 billion in loan originations, down 45% from $2.53 billion in the same period of 2025. Total yield on consumer loans (including ancillary products)1 realized by the Company on its average consumer loans receivable was 28.0% in the first nine months of 2026, down 350 bps from the same period in 2025. Net charge offs for the first nine months of 2026, as a percentage of average gross consumer loans receivable1, was 16.6%, up 770 bps from 8.9% in the same period of 2025.
For the first nine months of 2026, the Company produced revenues of $1.17 billion, down 9% compared to $1.29 billion in the same period of 2025. Operating income for the period was $181.5 million compared with $471.6 million in the first nine months of 2025, a decrease of $290.1 million or 62%. Adjusted operating income2 for the first nine months of 2026 was $196.1 million, 59% lower compared to $481.9 million in the same period of 2025. Efficiency ratio1 for the first nine months of 2026 was 25.0%, unchanged from 25.0% in the same period of 2025.
Net loss for the first nine months of 2026 was $54.1 million and diluted loss per share was $3.29 compared with net income of $158.6 million or $9.45 per share in the same period of 2025. Adjusted net loss2 for the first nine months of 2026 was $30.0 million and adjusted diluted loss per share1 was $1.82, compared with adjusted net income2 of $197.0 million or $11.73 per share, decreases of 115% and 116%, respectively.
Updated Outlook
The Company's Q3 2026 outlook, and the relevant assumptions and risk factors, were disclosed in its June 30, 2026 MD&A. The Company's actual third quarter performance was consistent with its third quarter 2026 outlook across all three measures. The Company continues to focus on the prudent management of liquidity, strengthening of its credit performance, and alignment of its capital structure. Management remains committed to reestablishing goeasy's track record of strong credit performance and returns that will reinforce confidence among shareholders and other stakeholders.
The Company has updated its expectations for gross consumer loans receivable at December 31, 2026. These updated expectations are reflected in the Company's outlook for Q4 2026, which assumes the continued implementation of the Company's six-point plan. Refer to "Q4 2026 Outlook" in the Company's September 30, 2026 MD&A for more detail and to the assumptions and risks set out below under "Forward-Looking Statements".
Q4 2026 Outlook | |
Gross consumer loans receivable at period end | $4.6 to $4.8 billion |
Total yield on consumer loans (including ancillary products)1 | 27.0% to 28.5% |
Net charge offs as a percentage of average gross consumer loans receivable1 | 14.5% to 16.0% |
Share Repurchases and Dividend Payments
In consideration of developments that affected earnings in 2025, the Board of Directors 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.
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. In certain cases, forward-looking statements 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 leases, loans or merchant agreements, collect on existing leases or loans, manage credit risk, 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 class action 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, and for the quarter ended September 30, 2026 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 Q4 2026 outlook presented above under the heading "Updated 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); 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's 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 in 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 six-point 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 1.7 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:
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 Including ancillary products.
goeasy Ltd. | ||||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
(Unaudited) | ||||
(Expressed in thousands of Canadian dollars) | ||||
As At | As At | |||
September 30, | December 31, | |||
2026 | 2025 | |||
ASSETS | ||||
Cash | 491,844 | 152,661 | ||
Accounts receivable | 37,159 | 42,361 | ||
Prepaid expenses | 10,044 | 9,159 | ||
Income taxes recoverable | 50,889 | 90,559 | ||
Consumer loans receivable, net | 4,497,960 | 5,155,360 | ||
Investments | 23,117 | 29,103 | ||
Lease assets, net | 27,885 | 36,656 | ||
Derivative financial assets | 57,561 | 11,146 | ||
Deferred income tax assets | 45,373 | 22,250 | ||
Property and equipment, net | 24,158 | 30,788 | ||
Right-of-use assets, net | 52,979 | 52,510 | ||
Intangible assets, net | 100,363 | 104,142 | ||
Goodwill | 21,310 | 21,310 | ||
TOTAL ASSETS | 5,440,642 | 5,758,005 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Liabilities | ||||
Revolving credit facility | (2,274) | 175,052 | ||
Accounts payable and other liabilities | 93,592 | 107,842 | ||
Dividends payable | - | 23,398 | ||
Unearned revenue | 30,822 | 31,219 | ||
Accrued interest payable | 82,971 | 68,533 | ||
Deferred income tax liabilities | - | 5,367 | ||
Lease liabilities | 59,501 | 59,451 | ||
Secured borrowings | 44,725 | 88,783 | ||
Revolving securitization warehouse facilities | 610,536 | 611,015 | ||
Derivative financial liabilities | 2,922 | 46,107 | ||
Notes payable | 3,734,566 | 3,690,818 | ||
TOTAL LIABILITIES | 4,657,361 | 4,907,585 | ||
Shareholders' equity | ||||
Share capital | 431,588 | 430,325 | ||
Contributed surplus | 27,880 | 26,782 | ||
Accumulated other comprehensive loss | (28,739) | (13,367) | ||
Retained earnings | 352,552 | 406,680 | ||
TOTAL SHAREHOLDERS' EQUITY | 783,281 | 850,420 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 5,440,642 | 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 | Nine Months Ended | |||
September 30, | September 30, | September 30, | September 30, | |
2026 | 2025 | 2026 | 2025 | |
Restated | Restated | |||
REVENUE | ||||
Interest income | 289,545 | 342,035 | 912,948 | 979,449 |
Lease revenue | 18,260 | 21,250 | 57,503 | 65,314 |
Commissions earned | 60,308 | 79,372 | 191,762 | 221,180 |
Charges and fees | 3,535 | 11,548 | 12,328 | 24,534 |
371,648 | 454,205 | 1,174,541 | 1,290,477 | |
OPERATING EXPENSES | ||||
BAD DEBTS | 214,873 | 177,515 | 661,731 | 465,279 |
OTHER OPERATING EXPENSES | ||||
Salaries and benefits | 44,135 | 51,455 | 146,445 | 153,030 |
Share-based compensation | 722 | 3,594 | 2,735 | 13,741 |
Technology costs | 11,800 | 10,943 | 34,140 | 35,746 |
Underwriting and collections | 7,985 | 9,891 | 24,962 | 25,724 |
Occupancy | 5,273 | 5,388 | 16,411 | 16,390 |
Advertising and promotion | 6,065 | 7,132 | 11,424 | 24,156 |
Restructuring charges | - | - | 4,763 | - |
Other expenses | 8,520 | 7,866 | 31,377 | 23,114 |
84,500 | 96,269 | 272,257 | 291,901 | |
DEPRECIATION AND AMORTIZATION | ||||
Depreciation of lease assets | 5,889 | 6,957 | 18,644 | 20,887 |
Amortization of intangible assets | 5,517 | 5,638 | 16,641 | 16,939 |
Depreciation of right-of-use assets | 5,337 | 5,332 | 16,030 | 15,921 |
Depreciation of property and equipment | 2,513 | 2,666 | 7,730 | 7,928 |
19,256 | 20,593 | 59,045 | 61,675 | |
TOTAL OPERATING EXPENSES | 318,629 | 294,377 | 993,033 | 818,855 |
OPERATING INCOME | 53,019 | 159,828 | 181,508 | 471,622 |
OTHER LOSS | - | (1,800) | (5,986) | (1,800) |
FINANCE COSTS | (75,286) | (118,767) | (246,875) | (251,451) |
INCOME BEFORE INCOME TAXES | (22,267) | 39,261 | (71,353) | 218,371 |
INCOME TAX EXPENSE (RECOVERY) | ||||
Current | 15,166 | 17,047 | 2,584 | 81,826 |
Deferred | (20,428) | (6,199) | (19,809) | (22,030) |
(5,262) | 10,848 | (17,225) | 59,796 | |
NET INCOME (LOSS) | (17,005) | 28,413 | (54,128) | 158,575 |
BASIC EARNINGS (LOSS) PER SHARE | (1.03) | 1.72 | (3.29) | 9.57 |
DILUTED EARNINGS (LOSS) PER SHARE | (1.03) | 1.70 | (3.29) | 9.45 |
SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT | ||||
(Expressed in thousands of Canadian dollars, except earnings per share) | ||||
Three Months Ended September 30, 2026 | ||||
easyfinancial | easyhome | Corporate | Total | |
Revenue | ||||
Interest income | 276,048 | 13,497 | - | 289,545 |
Lease revenue | - | 18,260 | - | 18,260 |
Commissions earned | 56,576 | 3,732 | - | 60,308 |
Charges and fees | 2,815 | 720 | - | 3,535 |
335,439 | 36,209 | - | 371,648 | |
Operating expenses | ||||
Bad debts | 206,332 | 8,541 | - | 214,873 |
Other operating expenses | 56,509 | 11,663 | 16,328 | 84,500 |
Depreciation and amortization | 9,860 | 7,852 | 1,544 | 19,256 |
272,701 | 28,056 | 17,872 | 318,629 | |
Operating income (loss) | 62,738 | 8,153 | (17,872) | 53,019 |
Other loss | - | |||
Finance costs | (75,286) | |||
Loss before income taxes | (22,267) | |||
Income tax (recovery) | (5,262) | |||
Net loss | (17,005) | |||
Diluted loss per share | (1.03) | |||
Three Months Ended September 30, 2025 | ||||
(As restated) | ||||
easyfinancial | easyhome | Corporate | Total | |
Revenue | ||||
Interest income | 330,453 | 11,582 | - | 342,035 |
Lease revenue | - | 21,250 | - | 21,250 |
Commissions earned | 75,383 | 3,989 | - | 79,372 |
Charges and fees | 10,822 | 726 | - | 11,548 |
416,658 | 37,547 | - | 454,205 | |
Operating expenses | ||||
Bad debts | 170,781 | 6,734 | - | 177,515 |
Other operating expenses | 65,330 | 13,154 | 17,785 | 96,269 |
Depreciation and amortization | 9,953 | 8,998 | 1,642 | 20,593 |
246,064 | 28,886 | 19,427 | 294,377 | |
Operating income (loss) | 170,594 | 8,661 | (19,427) | 159,828 |
Other loss | (1,800) | |||
Finance costs | (118,767) | |||
Income before income taxes | 39,261 | |||
Income tax expense | 10,848 | |||
Net income | 28,413 | |||
Diluted earnings per share | 1.70 | |||
Nine Months Ended September 30, 2026 | ||||
easyfinancial | easyhome | Corporate | Total | |
Revenue | ||||
Interest income | 871,129 | 41,819 | - | 912,948 |
Lease revenue | - | 57,503 | - | 57,503 |
Commissions earned | 179,922 | 11,840 | - | 191,762 |
Charges and fees | 10,065 | 2,263 | - | 12,328 |
1,061,116 | 113,425 | - | 1,174,541 | |
Operating expenses | ||||
Bad debts | 635,015 | 26,716 | - | 661,731 |
Other operating expenses | 175,137 | 36,541 | 60,579 | 272,257 |
Depreciation and amortization | 29,748 | 24,614 | 4,683 | 59,045 |
839,900 | 87,871 | 65,262 | 993,033 | |
Operating income (loss) | 221,216 | 25,554 | (65,262) | 181,508 |
Other loss | (5,986) | |||
Finance costs | (246,875) | |||
Loss before income taxes | (71,353) | |||
Income taxes (recovery) | (17,225) | |||
Net loss | (54,128) | |||
Diluted loss per share | (3.29) | |||
Nine Months Ended September 30, 2025 | ||||
(As restated) | ||||
easyfinancial | easyhome | Corporate | Total | |
Revenue | ||||
Interest income | 946,257 | 33,192 | - | 979,449 |
Lease revenue | - | 65,314 | - | 65,314 |
Commissions earned | 209,820 | 11,360 | - | 221,180 |
Charges and fees | 22,354 | 2,180 | - | 24,534 |
1,178,431 | 112,046 | - | 1,290,477 | |
Operating expenses | ||||
Bad debts | 448,677 | 16,602 | - | 465,279 |
Other operating expenses | 191,034 | 40,331 | 60,536 | 291,901 |
Depreciation and amortization | 29,643 | 27,028 | 5,004 | 61,675 |
669,354 | 83,961 | 65,540 | 818,855 | |
Operating income (loss) | 509,077 | 28,085 | (65,540) | 471,622 |
Other loss | (1,800) | |||
Finance costs | (251,451) | |||
Income before income taxes | 218,371 | |||
Income taxes | 59,796 | |||
Net income | 158,575 | |||
Diluted earnings per share | 9.45 | |||
SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS
Three Months Ended | ||||
($ in 000's except earnings per share and percentages) | September 30, 2026 | September 30, 2025 (As restated) | Variance $ / bps | Variance % Change |
Summary Financial Results | ||||
Revenue | 371,648 | 454,205 | (82,557) | (18.2 %) |
Bad debts | 214,873 | 177,515 | 37,358 | 21.0 % |
Other operating expenses | 84,500 | 96,269 | (11,769) | (12.2 %) |
EBITDA1 | 66,386 | 171,664 | (105,278) | (61.3 %) |
EBITDA margin1 | 17.9 % | 37.8 % | (1,990 bps) | (52.6 %) |
Depreciation and amortization | 19,256 | 20,593 | (1,337) | (6.5 %) |
Operating income | 53,019 | 159,828 | (106,809) | (66.8 %) |
Operating margin | 14.3 % | 35.2 % | (2,090 bps) | (59.4 %) |
Finance costs | 75,286 | 118,767 | (43,481) | (36.6 %) |
Effective income tax rate | 23.6 % | 27.6 % | (400 bps) | (14.5 %) |
Net income (loss) | (17,005) | 28,413 | (45,418) | (159.8 %) |
Diluted earnings (loss) per share | (1.03) | 1.70 | (2.73) | (160.6 %) |
Return on receivables | (1.4 %) | 2.1 % | (350 bps) | (166.7 %) |
Return on assets | (1.2 %) | 1.9 % | (310 bps) | (163.2 %) |
Return on equity | (8.6 %) | 9.4 % | (1,800 bps) | (191.5 %) |
Return on tangible common equity1 | (8.1 %) | 12.7 % | (2,080 bps) | (163.8 %) |
Adjusted Financial Results1,2 | ||||
Other operating expenses | 90,389 | 102,961 | (12,572) | (12.2 %) |
Efficiency ratio | 25.1 % | 23.4 % | 170 bps | 7.3 % |
Operating income | 56,294 | 163,368 | (107,074) | (65.5 %) |
Operating margin | 15.1 % | 36.0 % | (2,090 bps) | (58.0 %) |
Net income (loss) | (15,455) | 64,249 | (79,704) | (124.1 %) |
Diluted earnings (loss) per share | (0.94) | 3.84 | (4.78) | (124.5 %) |
Return on receivables | (1.3 %) | 4.8 % | (610 bps) | (127.1 %) |
Return on assets | (1.1 %) | 4.3 % | (540 bps) | (125.6 %) |
Return on equity | (7.8 %) | 21.3 % | (2,910 bps) | (136.6 %) |
Return on tangible common equity | (8.5 %) | 26.5 % | (3,500 bps) | (132.1 %) |
Key Performance Indicators | ||||
Segment Financials | ||||
easyfinancial revenue | 335,439 | 416,658 | (81,219) | (19.5 %) |
easyfinancial operating margin | 18.7 % | 40.9 % | (2,220 bps) | (54.3 %) |
easyhome revenue | 36,209 | 37,547 | (1,338) | (3.6 %) |
easyhome operating margin | 22.5 % | 23.1 % | (60 bps) | (2.6 %) |
Portfolio Indicators | ||||
Gross consumer loans receivable | 4,876,411 | 5,444,982 | (568,571) | (10.4 %) |
Growth in consumer loans receivable | (124,324) | 337,334 | (461,658) | (136.9 %) |
Gross loan originations | 567,519 | 945,730 | (378,211) | (40.0 %) |
Total yield on consumer loans (including ancillary products)1 | 27.7 % | 31.4 % | (370 bps) | (11.8 %) |
Net charge offs as a percentage of average gross consumer loans receivable1 | 15.2 % | 9.0 % | 620 bps | 69.7 % |
Cash provided by operating activities before net principal written1 | 606,760 | 622,973 | (16,213) | (2.6 %) |
Potential monthly leasing revenue1 | 5,209 | 6,292 | (1,083) | (17.2 %) |
Nine Months Ended | ||||
($ in 000's except earnings per share and percentages) | September 30, 2026 | September 30, 2025 (As restated) | Variance $ / bps | Variance % Change |
Summary Financial Results | ||||
Revenue | 1,174,541 | 1,290,477 | (115,936) | (9.0 %) |
Bad debts | 661,731 | 465,279 | 196,452 | 42.2 % |
Other operating expenses | 272,257 | 291,901 | (19,644) | (6.7 %) |
EBITDA1 | 215,923 | 510,610 | (294,687) | (57.7 %) |
EBITDA margin1 | 18.4 % | 39.6 % | (2,120 bps) | (53.5 %) |
Depreciation and amortization | 59,045 | 61,675 | (2,630) | (4.3 %) |
Operating income | 181,508 | 471,622 | (290,114) | (61.5 %) |
Operating margin | 15.5 % | 36.5 % | (2,100 bps) | (57.5 %) |
Other income (loss) | (5,986) | (1,800) | (4,186) | 232.6 % |
Finance costs | 246,875 | 251,451 | (4,576) | (1.8 %) |
Effective income tax rate | 24.1 % | 27.4 % | (330 bps) | (12.0 %) |
Net income (loss) | (54,128) | 158,575 | (212,703) | (134.1 %) |
Diluted earnings (loss) per share | (3.29) | 9.45 | (12.74) | (134.8 %) |
Return on receivables | (1.4 %) | 4.2 % | (560 bps) | (133.3 %) |
Return on assets | (1.3 %) | 3.8 % | (510 bps) | (134.2 %) |
Return on equity | (8.9 %) | 17.9 % | (2,680 bps) | (149.7 %) |
Return on tangible common equity1 | (8.5 %) | 23.4 % | (3,190 bps) | (136.3 %) |
Adjusted Financial Results1,2 | ||||
Other operating expenses | 286,138 | 312,339 | (26,201) | (8.4 %) |
Efficiency ratio | 25.0 % | 25.0 % | - | - |
Operating income | 196,096 | 481,896 | (285,800) | (59.3 %) |
Operating margin | 16.7 % | 37.3 % | (2,060 bps) | (55.2 %) |
Net income (loss) | (30,000) | 196,965 | (226,965) | (115.2 %) |
Diluted earnings (loss) per share | (1.82) | 11.73 | (13.55) | (115.5 %) |
Return on receivables | (0.8 %) | 5.2 % | (600 bps) | (115.4 %) |
Return on assets | (0.7 %) | 4.7 % | (540 bps) | (114.9 %) |
Return on equity | (5.0 %) | 22.2 % | (2,720 bps) | (122.5 %) |
Return on tangible common equity | (5.4 %) | 27.9 % | (3,330 bps) | (119.4 %) |
Key Performance Indicators | ||||
Segment Financials | ||||
easyfinancial revenue | 1,061,116 | 1,178,431 | (117,315) | (10.0 %) |
easyfinancial operating margin | 20.8 % | 43.2 % | (2,240 bps) | (51.9 %) |
easyhome revenue | 113,425 | 112,046 | 1,379 | 1.2 % |
easyhome operating margin | 22.5 % | 25.1 % | (260 bps) | (10.4 %) |
Portfolio Indicators | ||||
Gross consumer loans receivable | 4,876,411 | 5,444,982 | (568,571) | (10.4 %) |
Growth in consumer loans receivable | (637,056) | 842,545 | (1,479,601) | (175.6 %) |
Gross loan originations | 1,390,893 | 2,526,218 | (1,135,325) | (44.9 %) |
Total yield on consumer loans (including ancillary products)1 | 28.0 % | 31.5 % | (350 bps) | (11.0 %) |
Net charge offs as a percentage of average gross consumer loans receivable1 | 16.6 % | 8.9 % | 770 bps | 87.4 % |
Cash provided by operating activities before net principal written1 | 1,752,227 | 1,522,823 | 229,405 | 15.1 % |
Potential monthly leasing revenue1 | 5,209 | 6,292 | (1,083) | (17.2 %) |
1 | EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and cash provided by operating activities before net principal written are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity, net charge offs as a percentage of average gross consumer loans receivable and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. |
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 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 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted net income (loss) and adjusted diluted earnings (loss) per share for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | Nine Months Ended | |||
($ in 000's except earnings per share) | September 30, 2026 | September 30, (As restated) | September 30, 2026 | September 30, (As restated) |
Net income (loss) | (17,005) | 28,413 | (54,128) | 158,575 |
Impact of adjusting items | ||||
Other operating expenses | ||||
Restructuring charges1 | - | - | 4,763 | - |
Integration costs2 | - | 265 | - | 449 |
Depreciation and amortization | ||||
Amortization of acquired intangible assets3 | 3,275 | 3,275 | 9,825 | 9,825 |
Other loss (income)4 | - | 1,800 | 5,986 | 1,800 |
Finance costs | ||||
Fair value change on prepayment options related to Notes Payable5 | (1,166) | 43,092 | 10,094 | 39,832 |
Total pre-tax impact of adjusting items | 2,109 | 48,432 | 30,668 | 51,906 |
Income tax impact of above adjusting items | (559) | (12,596) | (6,540) | (13,516) |
After-tax impact of adjusting items | 1,550 | 35,836 | 24,128 | 38,390 |
Adjusted net income (loss) | (15,455) | 64,249 | (30,000) | 196,965 |
Weighted average number of diluted shares outstanding | 16,494 | 16,739 | 16,445 | 16,788 |
Diluted earnings (loss) per share | (1.03) | 1.70 | (3.29) | 9.45 |
Per share impact of adjusting items | 0.09 | 2.14 | 1.47 | 2.28 |
Adjusted diluted earnings (loss) per share | (0.94) | 3.84 | (1.82) | 11.73 |
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 $131 million intangible asset related to the acquisition of LendCare, with an estimated useful life of ten years. |
Adjusting item related to other loss |
4 For the nine-month period ended September 30, 2026, net investment loss was due to fair value changes in the Company's investments. |
Adjusting item related to prepayment options embedded in the Notes Payable |
5 For the three and nine-month periods ended September 30, 2025 and 2026, the Company recognized a fair value change on the prepayment options related to Notes Payable. |
Adjusted Other Operating Expenses and Efficiency Ratio
Adjusted other operating expenses is a non-IFRS measure and efficiency ratio is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted other operating expenses and efficiency ratio for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | Nine Months Ended | |||
($ in 000's except percentages) | September 30, 2026 | September 30, 2025 (As restated) | September 30, 2026 | September 30, 2025 (As restated) |
Other operating expenses as stated | 84,500 | 96,269 | 272,257 | 291,901 |
Impact of adjusting items1 | ||||
Other operating expenses | ||||
Restructuring charges | - | - | (4,763) | - |
Integration costs | - | (265) | - | (449) |
Depreciation and amortization | ||||
Depreciation of lease assets | 5,889 | 6,957 | 18,644 | 20,887 |
Total impact of adjusting items | 5,889 | 6,692 | 13,881 | 20,438 |
Adjusted other operating expenses | 90,389 | 102,961 | 286,138 | 312,339 |
Total revenue | 371,648 | 454,205 | 1,174,541 | 1,290,477 |
Less: Bad debts on interest receivable | (11,636) | (13,291) | (31,054) | (40,255) |
360,012 | 440,914 | 1,143,487 | 1,250,222 | |
Efficiency ratio | 25.1 % | 23.4 % | 25.0 % | 25.0 % |
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 income 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 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted operating income (loss) and adjusted operating margins for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
easyfinancial | ||||
Operating income (loss) | 62,738 | 62,738 | 170,594 | 170,594 |
Divided by revenue | 335,439 | 335,439 | 416,658 | 416,658 |
easyfinancial operating margin | 18.7 % | 18.7 % | 40.9 % | 40.9 % |
easyhome | ||||
Operating income | 8,153 | 8,153 | 8,661 | 8,661 |
Divided by revenue | 36,209 | 36,209 | 37,547 | 37,547 |
easyhome operating margin | 22.5 % | 22.5 % | 23.1 % | 23.1 % |
Total | ||||
Operating income (loss) 1 | 53,019 | 53,019 | 159,828 | 159,828 |
Other operating expenses2 | ||||
Restructuring charges | - | - | - | - |
Integration costs | - | - | - | 265 |
Depreciation and amortization2 | ||||
Amortization of acquired intangible assets | - | 3,275 | - | 3,275 |
Adjusted operating income (loss) | 53,019 | 56,294 | 159,828 | 163,368 |
Divided by revenue | 371,648 | 371,648 | 454,205 | 454,205 |
Total operating margin | 14.3 % | 15.1 % | 35.2 % | 36.0 % |
1 | Includes the operating (loss) for the Corporate reportable segment. |
2 | For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Nine Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
easyfinancial | ||||
Operating income (loss) | 221,216 | 221,216 | 509,077 | 509,077 |
Divided by revenue | 1,061,116 | 1,061,116 | 1,178,431 | 1,178,431 |
easyfinancial operating margin | 20.8 % | 20.8 % | 43.2 % | 43.2 % |
easyhome | ||||
Operating income | 25,554 | 25,554 | 28,085 | 28,085 |
Divided by revenue | 113,425 | 113,425 | 112,046 | 112,046 |
easyhome operating margin | 22.5 % | 22.5 % | 25.1 % | 25.1 % |
Total | ||||
Operating income (loss) 1 | 181,508 | 181,508 | 471,622 | 471,622 |
Other operating expenses2 | ||||
Restructuring charges | - | 4,763 | - | - |
Integration costs | - | - | - | 449 |
Depreciation and amortization2 | ||||
Amortization of acquired intangible assets | - | 9,825 | - | 9,825 |
Adjusted operating income (loss) | 181,508 | 196,096 | 471,622 | 481,896 |
Divided by revenue | 1,174,541 | 1,174,541 | 1,290,477 | 1,290,477 |
Total operating margin | 15.5 % | 16.7 % | 36.5 % | 37.3 % |
1 | Includes the operating (loss) for the Corporate reportable segment. |
2 | 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 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate EBITDA and EBITDA margin for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | Nine Months Ended | |||
($ in 000's except percentages) | September 30, 2026 | September 30, 2025 (As restated) | September 30, 2026 | September 30, 2025 (As restated) |
Net income (loss) | (17,005) | 28,413 | (54,128) | 158,575 |
Finance cost | 75,286 | 118,767 | 246,875 | 251,451 |
Income tax expense | (5,262) | 10,848 | (17,225) | 59,796 |
Depreciation and amortization | 19,256 | 20,593 | 59,045 | 61,675 |
Depreciation of lease assets | (5,889) | (6,957) | (18,644) | (20,887) |
EBITDA | 66,386 | 171,664 | 215,923 | 510,610 |
Divided by revenue | 371,648 | 454,205 | 1,174,541 | 1,290,477 |
EBITDA margin | 17.9 % | 37.8 % | 18.4 % | 39.6 % |
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 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate cash provided by operating activities before net principal written for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | Nine Months Ended | |||
($ in 000's) | September 30, 2026 | September 30, 2025 (As restated) | September 30, 2026 | September 30, 2025 (As restated) |
Cash provided by (used in) operating activities | 200,765 | (173,480) | 700,966 | (627,963) |
Net principal written | 405,995 | 796,453 | 1,051,262 | 2,150,785 |
Cash provided by operating activities before net principal written | 606,760 | 622,973 | 1,752,228 | 1,522,822 |
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 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted return on receivables for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
Net income (loss) | (17,005) | (17,005) | 28,413 | 28,413 |
After-tax impact of adjusting items1 | - | 1,550 | - | 35,836 |
Adjusted net income (loss) | (17,005) | (15,455) | 28,413 | 64,249 |
Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 |
Divided by average gross consumer loans receivable | 4,913,663 | 4,913,663 | 5,326,896 | 5,326,896 |
Return on receivables | (1.4 %) | (1.3 %) | 2.1 % | 4.8 % |
1 | For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Nine Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
Net income (loss) | (54,128) | (54,128) | 158,575 | 158,575 |
After-tax impact of adjusting items1 | - | 24,128 | - | 38,390 |
Adjusted net income (loss) | (54,128) | (30,000) | 158,575 | 196,965 |
Multiplied by number of periods in a year | X 4/3 | X 4/3 | X 4/3 | X 4/3 |
Divided by average gross consumer loans receivable | 5,156,351 | 5,156,351 | 5,006,664 | 5,006,664 |
Return on receivables | (1.4 %) | (0.8 %) | 4.2 % | 5.2 % |
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 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted return on assets for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
Net income (loss) | (17,005) | (17,005) | 28,413 | 28,413 |
After-tax impact of adjusting items1 | - | 1,550 | - | 35,836 |
Adjusted net income (loss) | (17,005) | (15,455) | 28,413 | 64,249 |
Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 |
Divided by average total assets for the period | 5,461,892 | 5,461,892 | 5,935,765 | 5,935,765 |
Return on assets | (1.2 %) | (1.1 %) | 1.9 % | 4.3 % |
1 | For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Nine Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
Net income (loss) | (54,128) | (54,128) | 158,575 | 158,575 |
After-tax impact of adjusting items1 | - | 24,128 | - | 38,390 |
Adjusted net income (loss) | (54,128) | (30,000) | 158,575 | 196,965 |
Multiplied by number of periods in a year | X 4/3 | X 4/3 | X 4/3 | X 4/3 |
Divided by average total assets for the period | 5,625,869 | 5,625,869 | 5,606,173 | 5,606,173 |
Return on assets | (1.3 %) | (0.7 %) | 3.8 % | 4.7 % |
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 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted return on equity for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
Net income (loss) | (17,005) | (17,005) | 28,413 | 28,413 |
After-tax impact of adjusting items1 | - | 1,550 | - | 35,836 |
Adjusted net income (loss) | (17,005) | (15,455) | 28,413 | 64,249 |
Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 |
Divided by average shareholders' equity for the period | 789,703 | 789,703 | 1,204,593 | 1,204,593 |
Return on equity | (8.6 %) | (7.8 %) | 9.4 % | 21.3 % |
1 | For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
Nine Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
Net income (loss) | (54,128) | (54,128) | 158,575 | 158,575 |
After-tax impact of adjusting items1 | - | 24,128 | - | 38,390 |
Adjusted net income (loss) | (54,128) | (30,000) | 158,575 | 196,965 |
Multiplied by number of periods in a year | X 4/3 | X 4/3 | X 4/3 | X 4/3 |
Divided by average shareholders' equity for the period | 807,766 | 807,766 | 1,181,052 | 1,181,052 |
Return on equity | (8.9 %) | (5.0 %) | 17.9 % | 22.2 % |
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 45 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate reported and adjusted return on tangible common equity for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
Net income | (17,005) | (17,005) | 28,413 | 28,413 |
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 | (14,598) | (14,598) | 30,820 | 30,820 |
Impact of adjusting items1 | ||||
Other operating expenses | ||||
Integration costs | - | - | - | 265 |
Other loss | - | - | - | 1,800 |
Finance costs | ||||
Fair value change on prepayment options related to Notes Payable | - | (1,166) | - | 43,092 |
Total pre-tax impact of adjusting items | - | (1,166) | - | 45,157 |
Income tax impact of above adjusting items | - | 309 | - | (11,728) |
After-tax impact of adjusting items | - | (857) | - | 33,429 |
Adjusted net income (loss) | (14,598) | (15,455) | 30,820 | 64,249 |
Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 |
Average shareholders' equity | 789,703 | 789,703 | 1,204,593 | 1,204,593 |
Average goodwill | (21,310) | (21,310) | (180,923) | (180,923) |
Average acquired intangible assets2 | (61,679) | (61,679) | (74,779) | (74,779) |
Average related deferred tax liabilities | 16,345 | 16,345 | 19,816 | 19,816 |
Divided by average tangible common equity | 723,059 | 723,059 | 968,707 | 968,707 |
Return on tangible common equity | (8.1 %) | (8.5 %) | 12.7 % | 26.5 % |
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. |
Nine Months Ended | ||||
($ in 000's except percentages) | September 30, 2026 | September 30, 2026 (adjusted) | September 30, 2025 (As restated) | September 30, 2025 (adjusted) (As restated) |
Net income (loss) | (54,128) | (54,128) | 158,575 | 158,575 |
Amortization of acquired intangible assets | 9,825 | 9,825 | 9,825 | 9,825 |
Income tax impact of the above item | (2,604) | (2,604) | (2,604) | (2,604) |
Net income before amortization of acquired intangible assets, net of income tax | (46,907) | (46,907) | 165,796 | 165,796 |
Impact of adjusting items1 | ||||
Other operating expenses | ||||
Restructuring charges | - | 4,763 | - | - |
Integration costs | - | - | - | 449 |
Other loss | - | 5,986 | - | 1,800 |
Finance costs | ||||
Fair value change on prepayment options related to Notes Payable | - | 10,094 | - | 39,832 |
Total pre-tax impact of adjusting items | - | 20,843 | - | 42,081 |
Income tax impact of above adjusting items | - | (3,936) | - | (10,912) |
After-tax impact of adjusting items | - | 16,907 | - | 31,169 |
Adjusted net income (loss) | (46,907) | (30,000) | 165,796 | 196,965 |
Multiplied by number of periods in a year | X 4/3 | X 4/3 | X 4/3 | X 4/3 |
Average shareholders' equity | 807,766 | 807,766 | 1,181,052 | 1,181,052 |
Average goodwill | (21,310) | (21,310) | (180,923) | (180,923) |
Average acquired intangible assets2 | (64,954) | (64,954) | (78,054) | (78,054) |
Average related deferred tax liabilities | 17,213 | 17,213 | 20,684 | 20,684 |
Divided by average tangible common equity | 738,715 | 738,715 | 942,759 | 942,759 |
Return on tangible common equity | (8.5 %) | (5.4 %) | 23.4 % | 27.9 % |
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. |
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 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:
Three Months Ended | Nine Months Ended | |||
($ in 000's except percentages) | September 30, 2026 | September 30, 2025 (As restated) | September 30, 2026 | September 30, 2025 (As restated) |
Total Company revenue | 371,648 | 454,205 | 1,174,541 | 1,290,477 |
Less: Leasing revenue | (19,356) | (22,490) | (61,015) | (69,064) |
Less: Bad debts on interest income | (11,636) | (13,291) | (31,055) | (40,255) |
Adjusted financial revenue | 340,656 | 418,424 | 1,082,471 | 1,181,158 |
Multiplied by number of periods in a year | X 4 | X 4 | X 4/3 | X 4/3 |
Divided by average gross consumer loans receivable | 4,913,663 | 5,326,896 | 5,156,351 | 5,006,664 |
Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized) | 27.7 % | 31.4 % | 28.0 % | 31.5 % |
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 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate net charge Offs as a percentage of average gross consumer loans receivable for the three and nine-month periods ended September 30, 2026. and 2025 include those indicated in the chart below:
Three Months Ended | ||
($in 000's except percentages) | September 30, 2026 | September 30, 2025 (As restated) |
Net charge offs on gross consumer loans receivable | 186,524 | 119,252 |
Multiplied by number of periods in a year | X 4 | X 4 |
Divided by average gross consumer loans receivable | 4,913,663 | 5,326,896 |
Net charge offs as a percentage of average gross consumer loans receivable (annualized) | 15.2 % | 9.0 % |
Nine Months Ended | ||
($in 000's except percentages) | September 30, 2026 | September 30, 2025 (As restated) |
Net charge offs on gross consumer loans receivable | 641,845 | 332,556 |
Multiplied by number of periods in a year | X 4/3 | X 4/3 |
Divided by average gross consumer loans receivable | 5,156,351 | 5,006,664 |
Net charge offs as a percentage of average gross consumer loans receivable (annualized) | 16.6 % | 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 31 of the Company's MD&A for the three and nine-month periods ended September 30, 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 and nine-month periods ended September 30, 2026 include those indicated in the chart below:
Three Months Ended | Nine Months Ended | |||
($ in 000's) | September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 |
Gross loan originations | 567,519 | 945,730 | 1,390,893 | 2,526,218 |
Loan originations to new customers | 240,506 | 578,810 | 681,767 | 1,568,654 |
Loan originations to existing customers | 327,013 | 366,920 | 709,126 | 957,564 |
Less: Proceeds applied to repay existing loans | (161,524) | (149,277) | (339,631) | (375,432) |
Net advance to existing customers | 165,489 | 217,643 | 369,495 | 582,132 |
Net principal written | 405,995 | 796,453 | 1,051,262 | 2,150,786 |
Percentage net advances to new customers | 59.2 % | 72.7 % | 64.9 % | 72.9 % |
Debt-to-Adjusted Tangible Equity
Debt to adjusted tangible equity is a capital management measure. Refer to "Financial Condition" section on page 56 of the Company's MD&A for the three and nine-month periods ended September 30, 2026.
SOURCE goeasy Ltd.
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