goeasy Ltd.

Q2 2026 adjusted diluted EPS was CAD 1.02, compared with an adjusted diluted loss per share of CAD 1.90 in Q1 2026 and down year over year. Revenue was CAD 390 million, down 9.6% year over year, and other operating expenses were CAD 91 million, down 9.3% year over year. Gross consumer loans receivable ended at CAD 5 billion, down CAD 363 million or 6.8% quarter over quarter, and net charge-offs were 16.7%, improving 110 basis points sequentially but higher year over year. Delinquencies were 11.9%, down 100 basis points year over year. Cash provided by operating activities before net principal written was CAD 585 million, up from CAD 489 million a year ago, and the debt to adjusted tangible equity ratio improved to 4.95 times from 5.3 times in Q1. The allowance for credit losses ended at CAD 499.5 million, versus CAD 406.7 million last year, with a net change in ACL of negative CAD 41.6 million. For Q3 2026, the company expects ending loans receivable of CAD 4.8 billion to CAD 5 billion, consumer loan yield of 26.5% to 28%, and net charge-offs of 14.5% to 16%. For full-year 2026, management expects year-end gross consumer loans receivable to be broadly consistent with Q2 ending levels, total consumer loan yield to be broadly consistent with first-half results, and net charge-offs to average in the mid-teens.

Patrick Ens framed the quarter as progress on a deliberate turnaround plan: reduce exposure to underperforming merchant-originated loans, lean into direct-to-consumer lending, and protect liquidity. He said the company’s culture and frontline execution remain strengths, and that the six-point plan is stabilizing the business near term while building a better foundation for long-term profitable growth. His tone was cautious but constructive, emphasizing that originations will grow responsibly only where risk-adjusted returns justify it.

Felix Wu focused on the mechanics of the quarter’s financial recovery and balance sheet repair. He highlighted the 70% reduction in originations to CAD 272 million, revenue of CAD 390 million, operating expenses of CAD 91 million, and the improved liquidity position after repaying the full CAD 314 million revolver balance and a CAD 64.6 million unsecured note. He also noted cash from operations before net principal written of CAD 585 million, an average blended debt coupon of 6.8%, and that dividends and share repurchases remain suspended indefinitely while the company works through its internal control remediation.

Analysts pressed management on whether restored access to facilities would accelerate originations, but Patrick said Q3 originations will increase only insofar as profitable returns and credit performance allow, and that the company is no longer capital- or funding-constrained. Questions also focused on the easyfinancial unsecured loss rate, with management saying the jump was driven partly by a denominator effect from a shrinking book and partly by a meaningful rise in consumer insolvencies, especially among non-prime borrowers. The team also explained that the ACL release followed IFRS 9 mechanics, that borrower assistance usage has fallen to about 8%-9% from around 10%, and that bond repurchases are being considered but are constrained by covenants and indenture limits.