goeasy (GSY) investor relations material

Executive summary

• Loan portfolio reached $5.36B at Q1 2026 end, up 12% year-over-year but down 2.7% sequentially, reflecting growth in direct-to-consumer channels and contraction in merchant-originated loans.

• Revenue grew 2% year-over-year to $413M, driven by organic growth, while originations declined 18.5–19% year-over-year as new lending was slowed to manage liquidity.

• Profitability was significantly impacted by higher credit losses and lower yields, resulting in a net loss of $53M and adjusted diluted EPS of -$1.90.

• Cash provided by operations before net principal written was $560.1M, up from $410.7M in Q1 2025, supporting strong organic cash flow.

• Cost efficiency measures and a six-point action plan, including a 9% workforce reduction, are underway to improve future performance.

Financial highlights

• Net charge-off rate rose to 17.8%, up 890 bps year-over-year, mainly due to merchant-originated loan losses, but improved sequentially from Q4 2025.

• Gross consumer loans receivable contracted by $150M (2.7%) quarter-over-quarter, ending at $5.36B.

• Adjusted diluted EPS was -$1.90; adjusted net loss of $31.3M.

• Revenue grew 2% year-over-year to $413M, slightly ahead of Q4 2025.

• Book value per share declined 28.4% year-over-year to $49.97.

Outlook and guidance

• Q2 2026: Ending loans receivable expected between $4.9B–$5.1B; yield 27%–28.5%; net charge-offs 16%–17.5%.

• Full year 2026: Gross loans receivable to decline before resuming growth in H2; net charge-offs to average mid-teens.

• Yield expected to improve as charge-offs decline; focus remains on executing the six-point plan and prudent liquidity management.