Canada's Goeasy posts larger than expected Q1 adjusted loss

goeasy

12/05/2026 21:47

Overview

Canada non-prime lender's Q1 revenue rose 2% yr/yr to C$413 mln

Adjusted diluted loss per share came in larger than analyst expectations

Company suspended dividend and share buybacks to preserve capital and liquidity

Outlook

Goeasy sees Q2 gross consumer loans receivable at C$4.9 bln to C$5.1 bln

Company expects Q2 total yield on consumer loans of 27.0% to 28.5%

Net charge offs expected at 16.0% to 17.5% of average gross consumer loans in Q2

Result Drivers

LOWER ORIGINATIONS - Loan originations fell 19% yr/yr as co reduced exposure to merchant-originated automotive and powersports loans and tightened underwriting standards

ELEVATED CREDIT LOSSES - Net charge offs and allowance for credit losses rose, mainly due to higher losses in merchant-originated automotive and powersports portfolios

LOWER LOAN YIELD - Total annualized yield on consumer loans declined due to higher allowance for credit losses, regulatory interest rate caps, and a shift to larger loans with lower ancillary product pricing

Company press release: ID:nCNWVSb78a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$413 mln
Q1 Adjusted EPS
Miss
-C$1.90
-C$1.31 (7 Analysts)
Q1 EPS
-C$3.22
Q1 Net Income
-C$53 mln
Q1 Operating Income
C$28.90 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the consumer lending peer group is "buy."

Wall Street's median 12-month price target for goeasy Ltd is C$43.50, about 41.2% above its May 11 closing price of C$30.80

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)