Canada's Goeasy Q2 revenue falls on lower loan originations

goeasy

06/08/2026 22:39

Overview
Canada non-prime consumer lender's Q2 revenue fell 10% yr/yr on lower loan balances and yield
Adjusted EPS for Q2 beat analyst expectations
Company suspended dividend and share buybacks to preserve capital and liquidity

Outlook
Goeasy sees Q3 gross consumer loans receivable at C$4.8 bln to C$5.0 bln
Company expects Q3 total yield on consumer loans at 26.5% to 28.0%
Net charge offs expected in mid-teens for full yr 2026, with improvement as year progresses

Result Drivers
LOWER ORIGINATIONS - Co said Q2 loan originations fell 70% yr/yr, mainly due to tighter credit underwriting and reduced merchant-originated automotive and powersports loans
REDUCED YIELD - Co attributed lower revenue to decreased average consumer loans receivable and reduced total yield on consumer loans, impacted by higher credit losses and regulatory changes
ELEVATED CREDIT LOSSES - Net charge offs rose to 16.7% of average gross consumer loans receivable, mainly due to higher losses in merchant-originated and direct-to-consumer portfolios

Company press release: ID:nCNWf6Brla

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
C$390.04 mln
 
Q2 Adjusted EPS
Beat
C$1.02
-C$1.13 (8 Analysts)
Q2 EPS
 
C$0.96
 
Q2 Net Income
 
C$15.87 mln
 
Q2 Operating Income
 
C$99.61 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 2 "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$38.50, about 20.8% below its August 5 closing price of C$48.62
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 5 - Canada's Propel Q2 revenue beats estimates on strong loan originations
Aug 4 - Consumer Portfolio Services Q2 net income rises 30% on record loan originations
Aug 4 - Credit Acceptance Q2 adjusted profit beats estimates on lower costs

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.)