goeasy Ltd.

Q2 2026 adjusted diluted EPS was CAD 1.02, versus an adjusted diluted loss per share of CAD 1.90 in Q1 2026 and lower than Q2 2025. Revenue was CAD 390 million, down 9.6% year over year. Other operating expenses were CAD 91 million, down 9.3% year over year, and the efficiency ratio was 25.5% versus 25.6% a year ago. Net charge-offs were 16.7%, up year over year but 110 bps better sequentially; delinquencies were 11.9%, down 100 bps year over year. Gross consumer loans receivable ended at CAD 5 billion, down CAD 363 million or 6.8% quarter over quarter, and the allowance for credit losses was CAD 499.5 million versus CAD 406.7 million a year earlier. Looking ahead, Q3 2026 guidance calls for 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 said year-end gross consumer loans receivable should be broadly consistent with Q2 ending levels, total yield should be broadly consistent with the first half, and net charge-offs should average in the mid-teens.

Patrick Ens framed the quarter as progress on a deliberate reset: reduce exposure to underperforming merchant-originated loans, focus new originations on direct-to-consumer easyfinancial, and protect liquidity while the Canadian non-prime consumer remains under pressure. He said the six-point plan is advancing, with the portfolio mix shifting toward core franchises and the company aiming to stabilize the business near term while building a foundation for sustainable profitable growth. His tone was cautious but constructive, emphasizing that originations will increase from Q2 levels in Q3, but only where risk-adjusted returns justify it.

Felix Wu emphasized that the quarter’s financials were shaped by lower originations, which reduced revenue but improved liquidity. He said originations were cut 70% year over year to CAD 272 million, revenue declined 9.6% to CAD 390 million, operating expenses fell to CAD 91 million, and cash provided by operating activities before net principal written rose to CAD 585 million from CAD 489 million a year earlier. He also highlighted balance sheet repair: the company repaid the full CAD 314 million revolving credit facility balance, ended with CAD 1.37 billion of liquidity represented by unrestricted cash plus unused borrowing capacity, and reported a 6.8% average blended coupon on debt. Dividends and share repurchases remain suspended indefinitely.

Analysts focused on how quickly liquidity access might translate into higher originations, and management said Q3 originations should rise versus Q2, but the binding constraint is profitable returns rather than funding. Questions also probed the easyfinancial unsecured charge-off spike, with Patrick saying the increase was partly a denominator effect from a shrinking book and partly from higher insolvency losses, especially in the non-prime market. On the provision release, Felix said IFRS 9 makes the allowance formulaic and tied to the book size, so shrinking receivables naturally produced a release; on the revolver and securitization facility, Felix said the remaining backup servicer condition could be completed in roughly a September timeframe. Management also said borrower assistance usage has come down to about 8%-9% from around 10%.