goeasy Ltd. Reports Results for the Third Quarter

Executive Summary

• goeasy reported record revenue of $440 M (+15% YoY) but net income fell sharply to $33.1 M, a 61% decline year‑over‑year, driven by higher finance costs and a $43.1 M non‑cash fair‑value loss on prepayment options.
• Loan originations grew 13% to $946 M; the loan portfolio expanded 24% to $5.44 B, staying within management’s growth guidance.
• Net charge‑off rate improved to 8.9% (down 30 bps), while operating margin slipped to 37.8% from 41.7% YoY.

Key Details

• Loan Originations: $946 M (13% ↑ vs. Q3 2024)
• Loan Portfolio Growth: +$336 M, total $5.44 B (24% ↑) – within outlook range $325‑$350 M growth.
• Revenue: $440 M (15% ↑ YoY), record level.
• Net Charge‑Off Rate: 8.9%, down 30 bps from 9.2% in Q3 2024.
• Operating Income: $166 M (4% ↑ YoY); operating margin fell to 37.8% (down 390 bps).
• Adjusted Operating Income: $170 M (4% ↑ YoY); adjusted margin 38.6% (down 400 bps).
• Net Income: $33.1 M, down 61% YoY; diluted EPS $1.98, down 59%.
• Adjusted Net Income: $68.9 M (8% ↓ YoY); adjusted diluted EPS $4.12, down 5%.
• Finance Costs: $118.8 M (up 148% YoY) due largely to fair‑value change on prepayment options ($43.1 M).
• Return on Equity: 10.8% vs. 29.1% YoY; adjusted ROE 22.6% vs. 25.7% YoY.
• Dividend: Board approved quarterly dividend of $1.46 per share payable Jan 9 2026.

Notable Quotes

“Our customers are resilient and have been managing through a protracted period of stress… We have increased provisions for the quarter accordingly.” – Dan Rees, CEO

Materiality: Material – Negative (significant decline in net income and earnings per share despite revenue growth).