Earnings release
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goeasy goeasy Ltd. Reports Record Results for the Second Quarter Loan Originations of $904 million , up 9% from $827 million Loan Growth of $313 million , up 9% from $286 million Loan Portfolio of $5.10 billion , up 23% from $4.14 billion Revenue of $418 million , up 11% from $378 million Net Charge Off Rate of 8.8%, down 50 bps from 9.3% Diluted EPS of $5.19 ; Adjusted Diluted EPS 1 of $4.11 , consistent year-over-year MISSISSAUGA, ON , Aug. 6, 2025 /CNW/ - goeasy Ltd. (TSX: GSY), (" goeasy " or the " Company "), a leading consumer lender focused on delivering a full suite of financial services to Canadians with near to non-prime credit scores, today reported results for the second quarter ended June 30, 2025 . Second Quarter Results During the quarter, the Company generated a record $904 million in loan originations, up 9% compared to $827 million produced in the second quarter of 2024. The increase in lending was driven by a record volume of applications for credit, which were up 23% over the prior year. The Company experienced strong performance across all our product and acquisition channels, including unsecured lending, automotive financing, home equity lending and point-of-sale financing. The increase in loan originations during the quarter led to record growth in the loan portfolio of $313 million , above the Company's outlook range of between $275 million and $300 million . At quarter end, the consumer loan portfolio was $5.10 billion , up 23% from $4.14 billion in the second quarter of 2024. Total annualized yield (including ancillary products) realized on average consumer loans receivable was 31.8% in the quarter, down 310 bps from the same period in 2024. The decrease in annualized yield was due to growth of secured loan products at lower rates of interest, a higher proportion of larger dollar value loans which have reduced pricing on certain ancillary products, and the impact of the new interest rate cap. The growth in consumer loans led to an increase in revenue, which was a record $418 million , up 11% from $378 million in the second quarter of last year. Interest income increased year over year by $41 million or 15%. During the quarter, the Company continued to experience stable credit and payment performance. The annualized net charge off rate was 8.8%, down 50 bps from 9.3% in the second quarter of 2024 primarily due to the improved credit and product mix of the loan portfolio, as well as credit and underwriting enhancements. The Company's net charge off rate was at the low end of the outlook range of between 8.75% and 9.75% for the quarter. The Company's allowance for future credit losses increased to 7.92%, compared to 7.86% in the first quarter of 2025, primarily due to unfavourable movement in forward looking macroeconomic indicators produced by Moody's Analytics, partially offset by improved credit and product mix of the loan portfolio, as well as credit and underwriting enhancements. Operating income for the second quarter of 2025 was $161 million , up 9% from $147 million in the second quarter of 2024. Operating margin for the first quarter was 38.5%, down slightly from 39.0% in the same period last year. After adjusting for unusual and non-recurring items, the Company reported adjusted operating income 2 of $164 million , an increase of 7% compared to $153 million in the second quarter of 2024. Adjusted operating margin 1 for the first quarter was 39.3%, down from 40.5% in the same period in 2024. The efficiency ratio 1 for the second quarter of 2025 was 25.6%, an improvement of 130 bps from 26.9% in the second quarter of 2024, reflecting an increase in operating leverage. Net income in the second quarter was $86.5 million , up 32% from $65.4 million in the same period of 2024, which resulted in diluted earnings per share of $5.19 , up 38% from the $3.76 reported in the second quarter of 2024. After adjustments related primarily to the non-cash fair value change on prepayment options related to notes payable, adjusted net income 2 was $68.5 million , down 4% from $71.3 million in the second quarter of 2024. Adjusted diluted earnings per share 1 was $4.11 , in-line with $4.10 in the second quarter of 2024. Return on equity during the quarter was 29.3%, compared to 23.3% in the second quarter of 2024. Adjusted return on equity 1 was 23.2% in the quarter, compared to 25.4% in the same period of 2024. "During the second quarter, the team at goeasy proudly served nearly 450,000 active customers, contributing to record loan receivables growth of $313 million and record quarter ending consumer loans receivables of $5.10 billion . These results reflect the strong ongoing customer demand for advice, products and services across the country. Providing access to credit remains a top priority in our mission to serve the approximately ten million Canadians in the non-prime segment who rely on us for their everyday needs, and goeasy continues to earn top marks and growth in key categories," said Dan Rees , goeasy's Chief Executive Officer. "Our consistently strong and balanced results point to our sales expertise, credit discipline, and a resilient business model through the business cycle," Mr. Rees continued. "With the momentum of the first half, we are reiterating the full year 2025 annual key performance indicator forecast we provided on February 13, 2025 . In addition, we expect gross consumer loans receivable to come in at the top end of the $5.40 to $5.70 billion range referenced in that forecast. With a non-prime consumer credit market size in Canada of over $230 billion , there is considerable runway ahead." Other Key Second Quarter Highlights (Second quarter 2025 relative to second quarter 2024, where applicable) easyfinancial Revenue of $381 million , up 12% 48% of the loan portfolio secured, up from 44% Record volume of applications for credit, up 23% New customer volume at 50,300, up 3% 73% of net loan advances 1 in the quarter were issued to new customers, up from 71% Strong volume of originations in automotive financing, up 47% Average loan book per branch 3 improved to a record $7.5 million , an increase of 4% Weighted average interest rate 3 on consumer loans of 27.9%, down from 29.5% Operating income of $176 million , up 7% easyhome Revenue of $37.5 million , down slightly from $38.3 million Consumer loan portfolio within easyhome stores increased to $137.8 million , up 25% Financial revenue 2 from consumer lending increased to $14.4 million , up 12% Operating income of $9.9 million , down 17% Overall 96 th consecutive quarter of positive net income 2025 marks the 21 st consecutive year of paying dividends and the 11 th consecutive year with a dividend increase 61 st consecutive quarter of same store revenue growth Approximately 1.6 million total customers served since easyfinancial's inception Acquired and organically originated over $17.5 billion in loans since easyfinancial's inception Adjusted return on equity 1 of 23.2%, down from 25.4% Fully drawn weighted average cost of borrowing at 6.1%, down from 6.8% Debt to adjusted tangible equity 4 of 3.56x on June 30, 2025 Six Months Results For the first six months of 2025, the Company funded $1.58 billion in loan originations, up 5% from $1.51 billion in the same period of 2024. The consumer loans
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receivable portfolio finished at $5.10 billion , up 23% from $4.14 billion as of June 30, 2024 . The annualized net charge off rate for the first six months of 2025, as a result of stable credit and payment performance, was 8.8%, down 40 bps from 9.2% in the same period of 2024. For the first six months of 2025, the Company produced record revenues of $810 million , up 10% compared to $735 million in the same period of 2024. Operating income for the period was a record $306 million compared with $285 million in the first six months of 2024, an increase of $21 million or 7%. Adjusted operating income 2 for the first six months of 2025 was a record $313 million , 5% higher compared to $297 million in the same period of 2024. Efficiency ratio 1 for the first six months of 2025 was 25.8%, an improvement of 130 bps from 27.1% in the same period of 2024. Net income for the first six months of 2025 was $126 million and diluted earnings per share was $7.48 compared with $124 million or $7.17 per share. Adjusted net income 2 for the first six months of 2025 was $128 million and adjusted diluted earnings per share 1 was $7.63 , compared with $138 million or $7.94 per share, decreases of 7% and 4%, respectively. Reported return on equity was 21.2%, while adjusted return on equity 1 was 21.6%, down from 25.0% in the same period of 2024. Balance Sheet and Liquidity Total assets were $5.63 billion as of June 30, 2025 , an increase of 22% from $4.63 billion as of June 30, 2024 , primarily driven by growth in consumer loans receivable. Free cash flow from operations before net growth in gross consumer loans receivable 2 in the quarter was $35 million compared to $93 million in the second quarter of 2024. Based on the cash on hand at the end of the quarter and the borrowing capacity under the Company's existing revolving credit facilities, the Company has approximately $1.74 billion in total funding capacity as of August 1, 2025 and a debt to adjusted tangible equity ratio of 3.56x as of June 30, 2025 . The Company remains confident that the capacity available under its existing funding facilities, and its ability to raise additional debt financing, is sufficient to fund its organic growth forecast. At quarter-end, the Company's weighted average cost of borrowing was 6.7%, and the fully drawn weighted average cost of borrowing was 6.1%. The Company estimates that it could currently grow the consumer loan portfolio by approximately $350 million per year solely from internal cash flows, without utilizing external debt. The Company also estimates that once its existing and available sources of debt are fully utilized, it could continue to grow the loan portfolio by approximately $500 million per year solely from internal cash flows. Dividend The Board of Directors has approved a quarterly dividend of $1.46 per share payable on October 10, 2025 to the holders of common shares of record as at the close of business on September 26, 2025 . Forward-Looking Statements All figures reported above with respect to outlook are targets established by the Company and are subject to change as plans and business conditions vary. Accordingly, investors are cautioned not to place undue reliance on the foregoing guidance. Actual results may differ materially. This press release includes forward-looking statements about goeasy, including, but not limited to, its business operations, strategy and expected financial performance and condition. Forward-looking statements include, but are not limited to, statements with respect to forecasts for growth of the consumer loans receivable, annual revenue growth forecasts, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements and the Company's ability to secure sufficient capital, liquidity of the Company, plans and references to future operations and results, critical accounting estimates, expected future yields and net charge off rates on loans, the dealer relationships, the size and characteristics of the Canadian non-prime lending market and the continued development of the type and size of competitors in the market. In certain cases, forward-looking statements that are predictive in nature, depend upon or refer to future events or conditions, and/or can be identified by the use of words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "target" or negative versions thereof and similar expressions, and/or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations and business prospects and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company's operations, economic factors and the industry generally. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those expressed or implied by forward-looking statements made by the Company. Some important factors that could cause actual results to differ materially from those expressed in the forward- looking statements include, but are not limited to, goeasy's ability to enter into new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, offer products which appeal to customers at a competitive rate, respond to changes in legislation, react to uncertainties related to regulatory action, raise capital under favourable terms, compete, manage the impact of litigation (including shareholder litigation), control costs at all levels of the organization and maintain and enhance the system of internal controls. The Company cautions that the foregoing list is not exhaustive. These and other factors could cause actual results to differ materially from our expectations expressed in the forward-looking statements, and further details and descriptions of these and other factors are disclosed in the Company's Management's Discussion and Analysis (" MD&A "), including under the section entitled "Risk Factors". The reader is cautioned to consider these, and other factors carefully and not to place undue reliance on forward-looking statements, which may not be appropriate for other purposes. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise, unless required by law. About goeasy goeasy Ltd. is a Canadian company, headquartered in Mississauga, Ontario , that provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. Supported by over 2,600 employees, the Company offers a wide variety of financial products and services including unsecured and secured instalment loans, merchant financing through a variety of verticals and lease-to-own merchandise. Customers can transact seamlessly through an omni-channel model that includes online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement and healthcare verticals, through approximately 11,200 merchant partners across Canada . Throughout the Company's history, it has acquired and organically served approximately 1.6 million Canadians and originated over $17.5 billion in loans. Accredited by the Better Business Bureau, goeasy is the proud recipient of several awards in recognition of its exceptional culture and continued business growth including inclusion in TIME Magazine's inaugural list of Canada's Best Companies, 2024 Best Workplaces™ in Financial Services & Insurance, Waterstone Canada's Most Admired Corporate Cultures, ranking on the 2022 Report on Business Women Lead Here executive gender diversity benchmark, placing on the 2024 Report on Business ranking of Canada's Top Growing Companies, ranking on the TSX30, Greater Toronto Top Employers Award and has been certified as a Great Place to Work®. The Company is represented by a diverse group of team members from over 90 nationalities who believe strongly in giving back to communities in which it operates. To date, goeasy has raised and donated over $6.5 million to support its long-standing partnerships with BGC Canada and many other local charities. goeasy Ltd.'s. common shares are listed on the TSX under the trading symbol "GSY". goeasy is rated BB- with a stable trend from S&P and Ba3 with a stable trend from Moody's. For more information about goeasy and our business units, visit www.goeasy.com , www.easyfinancial.com , www.lendcare.ca , www.easyhome.ca . For further information contact: James Obright Senior Vice President, Investor Relations & Capital Markets (905) 272-2788 Notes: 1 These are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. 2 These are non-IFRS measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. 3 These are supplementary financial measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. 4 These are capital management measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. 5 Non-IFRS ratios, non-IFRS measures, supplementary financial measures and capital management measures are not determined in accordance with IFRS, do not have
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standardized meanings and may not be comparable to similar financial measures presented by other companies. goeasy Ltd. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) (Expressed in thousands of Canadian dollars) As At As At June 30, December 31, 2025 2024 ASSETS Cash 254,494 251,381 Accounts receivable 42,032 42,438 Prepaid expenses 10,346 9,488 Consumer loans receivable, net 4,858,147 4,366,533 Investments 41,918 41,918 Lease assets 37,485 40,973 Derivative financial assets 6,188 60,675 Deferred income tax assets, net 5,404 - Property and equipment, net 32,270 35,004 Right-of-use assets, net 51,577 54,224 Intangible assets, net 105,603 110,979 Goodwill 180,923 180,923 TOTAL ASSETS 5,626,387 5,194,536 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Revolving credit facility 170,924 21,797 Accounts payable and other liabilities 75,681 156,903 Income taxes payable 3,109 24,567 Dividends payable 23,461 19,519 Unearned revenue 28,122 25,864 Accrued interest payable 55,178 49,003 Deferred income tax liabilities, net - 4,184 Lease liabilities 59,025 62,164 Secured borrowings 97,795 120,335 Revolving securitization warehouse facilities 987,112 1,073,876 Derivative financial liabilities 90,223 21,466 Notes payable 2,823,448 2,413,795 TOTAL LIABILITIES 4,414,078 3,993,473 Shareholders' equity Share capital 424,240 438,302 Contributed surplus 34,856 26,942 Accumulated other comprehensive loss (36,565) (56,938) Retained earnings 789,778 792,757 TOTAL SHAREHOLDERS' EQUITY 1,212,309 1,201,063 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,626,387 5,194,536 goeasy Ltd. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Expressed in thousands of Canadian dollars, except earnings per share) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 REVENUE Interest income 315,485 274,722 611,314 534,794 Lease revenue 21,822 24,014 44,064 48,755 Commissions earned 73,621 70,967 141,808 134,931 Charges and fees 7,383 8,092 12,986 16,429 418,311 377,795 810,172 734,909 OPERATING EXPENSES BAD DEBTS 136,383 112,499 267,406 217,694 OTHER OPERATING EXPENSES Salaries and benefits 52,112 54,569 101,575 107,019 Share-based compensation 5,706 4,338 10,147 8,590 Technology costs 12,583 9,990 24,803 18,330 Advertising and promotion 8,338 9,166 17,024 16,940 Underwriting and collections 8,671 5,189 15,833 9,891 Occupancy 5,330 5,168 11,002 10,494 Other expenses 7,567 8,664 15,248 19,150 100,307 97,084 195,632 190,414 DEPRECIATION AND AMORTIZATION Depreciation of lease assets 6,947 7,242 13,930 14,322 Amortization of intangible assets 5,655 5,885 11,301 11,727 Depreciation of right-of-use assets 5,292 5,348 10,589 10,754 Depreciation of property and equipment 2,665 2,527 5,262 5,077 20,559 21,002 41,082 41,880
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TOTAL OPERATING EXPENSES 257,249 230,585 504,120 449,988 OPERATING INCOME 161,062 147,210 306,052 284,921 OTHER LOSS - (2,740) - (7,138) FINANCE COSTS (43,033) (54,684) (132,684) (105,997) INCOME BEFORE INCOME TAXES 118,029 89,786 173,368 171,786 INCOME TAX EXPENSE (RECOVERY) Current 32,986 27,477 63,952 52,334 Deferred (1,500) (3,092) (16,526) (4,893) 31,486 24,385 47,426 47,441 NET INCOME 86,543 65,401 125,942 124,345 BASIC EARNINGS PER SHARE 5.25 3.82 7.57 7.29 DILUTED EARNINGS PER SHARE 5.19 3.76 7.48 7.17 SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT (Expressed in thousands of Canadian dollars, except earnings per share) Three Months Ended June 30, 2025 easyfinancial easyhome Corporate Total Revenue Interest income 304,358 11,127 - 315,485 Lease revenue - 21,822 - 21,822 Commissions earned 69,812 3,809 - 73,621 Charges and fees 6,684 699 - 7,383 380,854 37,457 - 418,311 Operating expenses Bad debts 131,070 5,313 - 136,383 Other operating expenses 64,178 13,252 22,877 100,307 Depreciation and amortization 9,954 8,967 1,638 20,559 205,202 27,532 24,515 257,249 Operating income (loss) 175,652 9,925 (24,515) 161,062 Other income - Finance costs (43,033) Income before income taxes 118,029 Income taxes 31,486 Net income 86,543 Diluted earnings per share 5.19 Three Months Ended June 30, 2024 easyfinancial easyhome Corporate Total Revenue Interest income 264,799 9,923 - 274,722 Lease revenue - 24,014 - 24,014 Commissions earned 67,418 3,549 - 70,967 Charges and fees 7,294 798 - 8,092 339,511 38,284 - 377,795 Operating expenses Bad debts 109,530 2,969 - 112,499 Other operating expenses 55,265 14,002 27,817 97,084 Depreciation and amortization 9,872 9,426 1,704 21,002 174,667 26,397 29,521 230,585 Operating income (loss) 164,844 11,887 (29,521) 147,210 Other loss (2,740) Finance costs (54,684) Income before income taxes 89,786 Income taxes 24,385 Net income 65,401 Diluted earnings per share 3.76 Six Months Ended June 30, 2025 easyfinancial easyhome Corporate Total Revenue Interest income 589,704 21,610 - 611,314 Lease revenue - 44,064 - 44,064 Commissions earned 134,437 7,371 - 141,808 Charges and fees 11,532 1,454 - 12,986 735,673 74,499 - 810,172
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Operating expenses Bad debts 257,537 9,869 - 267,406 Other operating expenses 125,704 27,177 42,751 195,632 Depreciation and amortization 19,690 18,030 3,362 41,082 402,931 55,076 46,113 504,120 Operating income (loss) 332,742 19,423 (46,113) 306,052 Other income - Finance costs (132,684) Income before income taxes 173,368 Income taxes 47,426 Net income 125,942 Diluted earnings per share 7.48 Six Months Ended June 30, 2024 easyfinancial easyhome Corporate Total Revenue Interest income 514,938 19,856 - 534,794 Lease revenue - 48,755 - 48,755 Commissions earned 127,912 7,019 - 134,931 Charges and fees 14,717 1,712 - 16,429 657,567 77,342 - 734,909 Operating expenses Bad debts 210,833 6,861 - 217,694 Other operating expenses 107,276 28,564 54,574 190,414 Depreciation and amortization 19,747 18,709 3,424 41,880 337,856 54,134 57,998 449,988 Operating income (loss) 319,711 23,208 (57,998) 284,921 Other loss (7,138) Finance costs (105,997) Income before income taxes 171,786 Income taxes 47,441 Net income 124,345 Diluted earnings per share 7.17 SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS (Expressed in thousands of Canadian dollars, except earnings per share and percentages) Three Months Ended June 30, June 30, Variance Variance 2025 2024 $ / bps % change Summary Financial Results Revenue 418,311 377,795 40,516 10.7 % Bad debts 136,383 112,499 23,884 21.2 % Other operating expenses 100,307 97,084 3,223 3.3 % EBITDA 1 174,674 158,230 16,444 10.4 % EBITDA margin 1 41.8 % 41.9 % (10 bps) (0.2 %) Depreciation and amortization 20,559 21,002 (443) (2.1 %) Operating income 161,062 147,210 13,852 9.4 % Operating margin 38.5 % 39.0 % (50 bps) (1.3 %) Other loss - (2,740) 2,740 (100.0 %) Finance costs 43,033 54,684 (11,651) (21.3 %) Effective income tax rate 26.7 % 27.2 % (50 bps) (1.8 %) Net income 86,543 65,401 21,142 32.3 % Diluted earnings per share 5.19 3.76 1.43 38.0 % Return on receivables 7.0 % 6.5 % 50 bps 7.7 % Return on assets 6.3 % 5.8 % 50 bps 8.6 % Return on equity 29.3 % 23.3 % 600 bps 25.8 % Return on tangible common equity 1 37.7 % 31.0 % 670 bps 21.6 % Adjusted Financial Results 1 Other operating expenses 107,162 101,807 5,355 5.3 % Efficiency ratio 25.6 % 26.9 % (130 bps) (4.8 %) Operating income 164,429 153,004 11,425 7.5 % Operating margin 39.3 % 40.5 % (120 bps) (3.0 %) Net income 68,457 71,332 (2,875) (4.0 %) Diluted earnings per share 4.11 4.10 0.01 0.2 % Return on receivables 5.5 % 7.1 % (160 bps) (22.5 %) Return on assets 5.0 % 6.3 % (130 bps) (20.6 %) Return on equity 23.2 % 25.4 % (220 bps) (8.7 %) Return on tangible common equity 29.0 % 32.6 % (360 bps) (11.0 %) Key Performance Indicators Segment Financials
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easyfinancial revenue 380,854 339,511 41,343 12.2 % easyfinancial operating margin 46.1 % 48.6 % (250 bps) (5.1 %) easyhome revenue 37,457 38,284 (827) (2.2 %) easyhome operating margin 26.5 % 31.0 % (450 bps) (14.5 %) Portfolio Indicators Gross consumer loans receivable 5,099,726 4,138,155 961,571 23.2 % Growth in consumer loans receivable 313,201 286,076 27,125 9.5 % Gross loan originations 903,719 826,659 77,060 9.3 % Total yield on consumer loans (including ancillary products) 1 31.8 % 34.9 % (310 bps) (8.9 %) Net charge offs as a percentage of average gross consumer loans receivable 8.8 % 9.3 % (50 bps) (5.4 %) Free cash flows from operations before net growth in gross consumer loans receivable 1 34,748 93,084 (58,336) (62.7 %) Potential monthly leasing revenue 1 6,478 7,254 (776) (10.7 %) 1 EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and free cash flows from operations before net growth in gross consumer loans receivable are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on receivables, adjusted return on equity, adjusted return on assets, reported and adjusted return on tangible common equity and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to "Non- IFRS Measures and Other Financial Measures" section in this press release. Six Months Ended June 30, June 30, Variance Variance 2025 2024 $ / bps % change Summary Financial Results Revenue 810,172 734,909 75,263 10.2 % Bad debts 267,406 217,694 49,712 22.8 % Other operating expenses 195,632 190,414 5,218 2.7 % EBITDA 1 333,204 305,341 27,863 9.1 % EBITDA margin 1 41.1 % 41.5 % (40 bps) (1.0 %) Depreciation and amortization 41,082 41,880 (798) (1.9 %) Operating income 306,052 284,921 21,131 7.4 % Operating margin 37.8 % 38.8 % (100 bps) (2.6 %) Other loss - (7,138) 7,138 (100.0 %) Finance costs 132,684 105,997 26,687 25.2 % Effective income tax rate 27.4 % 27.6 % (20 bps) (0.7 %) Net income 125,942 124,345 1,597 1.3 % Diluted earnings per share 7.48 7.17 0.31 4.3 % Return on receivables 5.2 % 6.4 % (120 bps) (18.8 %) Return on assets 4.7 % 5.6 % (90 bps) (16.1 %) Return on equity 21.2 % 22.6 % (140 bps) (6.2 %) Return on tangible common equity 1 27.6 % 30.3 % (270 bps) (8.9 %) Adjusted Financial Results 1 Other operating expenses 209,378 199,492 9,886 5.0 % Efficiency ratio 25.8 % 27.1 % (130 bps) (4.8 %) Operating income 312,786 296,715 16,071 5.4 % Operating margin 38.6 % 40.4 % (180 bps) (4.5 %) Net income 128,496 137,620 (9,124) (6.6 %) Diluted earnings per share 7.63 7.94 (0.31) (3.9 %) Return on receivables 5.3 % 7.0 % (170 bps) (24.3 %) Return on assets 4.8 % 6.3 % (150 bps) (23.8 %) Return on equity 21.6 % 25.0 % (340 bps) (13.6 %) Return on tangible common equity 27.1 % 32.3 % (520 bps) (16.1 %) Key Performance Indicators Segment Financials easyfinancial revenue 735,673 657,567 78,106 11.9 % easyfinancial operating margin 45.2 % 48.6 % (340 bps) (7.0 %) easyhome revenue 74,499 77,342 (2,843) (3.7 %) easyhome operating margin 26.1 % 30.0 % (390 bps) (13.0 %) Portfolio Indicators Gross consumer loans receivable 5,099,726 4,138,155 961,571 23.2 % Growth in consumer loans receivable 503,611 492,953 10,658 2.2 % Gross loan originations 1,580,487 1,513,092 67,395 4.5 % Total yield on consumer loans (including ancillary products) 1 31.5 % 34.9 % (340 bps) (9.7 %) Net charge offs as a percentage of average gross consumer loans receivable 8.8 % 9.2 % (40 bps) (4.3 %) Free cash flows from operations before net growth in gross consumer loans receivable 1 65,988 170,226 (104,238) (61.2 %) Potential monthly leasing revenue 1 6,478 7,254 (776) (10.7 %) 1 EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and free cash flows from operations before net growth in gross consumer loans receivable are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on receivables, adjusted return on equity, adjusted return on assets, reported and adjusted return on tangible common equity and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. Non-IFRS Measures and Other Financial Measures The Company uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB), are not identified by IFRS and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Company believes that non-IFRS measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-IFRS measures are used throughout this press release and listed below. An explanation of the composition of non-IFRS measures and other financial measures can be found in the Company's MD&A, available on www.sedarplus.ca . Adjusted Net Income and Adjusted Diluted Earnings Per Share Adjusted net income is a non-IFRS measure and adjusted diluted earnings per share is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures"
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section on page 30 of the Company's MD&A for the three and six-month periods ended June 30, 2025 . Items used to calculate adjusted net income and adjusted earnings per share for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's except earnings per share) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income as stated 86,543 65,401 125,942 124,345 Impact of adjusting items Other operating expenses Integration costs 1 92 132 184 314 Advisory costs 3 - 2,387 - 4,930 Depreciation and amortization Amortization of acquired intangible assets 2 3,275 3,275 6,550 6,550 Other loss 4 - 2,740 - 7,138 Finance costs Fair value change on prepayment options related to Notes Payable 5 (27,974) (960) (3,260) (2,158) Total pre-tax impact of adjusting items (24,607) 7,574 3,474 16,774 Income tax impact of above adjusting items 6,521 (1,643) (920) (3,499) After-tax impact of adjusting items (18,086) 5,931 2,554 13,275 Adjusted net income 68,457 71,332 128,496 137,620 Weighted average number of diluted shares outstanding 16,672 17,377 16,832 17,339 Diluted earnings per share as stated 5.19 3.76 7.48 7.17 Per share impact of adjusting items (1.08) 0.34 0.15 0.77 Adjusted diluted earnings per share 4.11 4.10 7.63 7.94 Adjusting items related to the LendCare acquisition 1 Integration costs related to representation and warranty insurance costs, and other integration costs related to the acquisition of LendCare. 2 Amortization of the $131 million intangible asset related to the acquisition of LendCare with an estimated useful life of ten years. Adjusting items related to the advisory costs 3 Advisory costs for the three and six-month periods ended June 30, 2024 were related to non-recurring advisory, consulting and legal costs. Adjusting item related to other loss 4 For the three and six-month periods ended June 30, 2024, net investment loss was due to fair value changes in the Company's investments. Adjusting item related to prepayment options embedded in the Notes Payable 5 For the three and six-month periods ended June 30, 2025 and 2024, the Company recognized a fair value change on the prepayment options related to Notes Payable. Adjusted Other Operating Expenses and Efficiency Ratio Adjusted other operating expenses is a non-IFRS measure and efficiency ratio is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 30 of the Company's MD&A for the three and six-month periods ended June 30, 2025 . Items used to calculate adjusted other operating expenses and efficiency ratio for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's except earnings per share) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Other operating expenses as stated 100,307 97,084 195,632 190,414 Impact of adjusting items 1 Other operating expenses Integration costs (92) (132) (184) (314) Advisory costs - (2,387) - (4,930) Depreciation and amortization Depreciation of lease assets 6,947 7,242 13,930 14,322 Total impact of adjusting items 6,855 4,723 13,746 9,078 Adjusted other operating expenses 107,162 101,807 209,378 199,492 Total revenue 418,311 377,795 810,172 734,909 Efficiency ratio 25.6 % 26.9 % 25.8 % 27.1 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. Adjusted Operating Margin Adjusted operating income is a non-IFRS measure and adjusted operating margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 30 of the Company's MD&A for the three and six-month periods ended June 30, 2025 . Items used to calculate adjusted operating income and adjusted operating margins for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2025 (adjusted) June 30, 2024 June 30, 2024 (adjusted) easyfinancial Operating income 175,652 175,652 164,844 164,844 Divided by revenue 380,854 380,854 339,511 339,511 easyfinancial operating margin 46.1 % 46.1 % 48.6 % 48.6 % easyhome Operating income 9,925 9,925 11,887 11,887 Divided by revenue 37,457 37,457 38,284 38,284 easyhome operating margin 26.5 % 26.5 % 31.0 % 31.0 %
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Total Operating income 161,062 161,062 147,210 147,210 Other operating expenses 1 Integration costs - 92 - 132 Advisory costs - - - 2,387 Depreciation and amortization 1 Amortization of acquired intangible assets - 3,275 - 3,275 Adjusted operating income 161,062 164,429 147,210 153,004 Divided by revenue 418,311 418,311 377,795 377,795 Total operating margin 38.5 % 39.3 % 39.0 % 40.5 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. Six Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2025 (adjusted) June 30, 2024 June 30, 2024 (adjusted) easyfinancial Operating income 332,742 332,742 319,711 319,711 Divided by revenue 735,673 735,673 657,567 657,567 easyfinancial operating margin 45.2 % 45.2 % 48.6 % 48.6 % easyhome Operating income 19,423 19,423 23,208 23,208 Divided by revenue 74,499 74,499 77,342 77,342 easyhome operating margin 26.1 % 26.1 % 30.0 % 30.0 % Total Operating income 306,052 306,052 284,921 284,921 Other operating expenses 1 Integration costs - 184 - 314 Advisory costs - - - 4,930 Depreciation and amortization 1 Amortization of acquired intangible assets - 6,550 - 6,550 Adjusted operating income 306,052 312,786 284,921 296,715 Divided by revenue 810,172 810,172 734,909 734,909 Total operating margin 37.8 % 38.6 % 38.8 % 40.4 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") and EBITDA Margin EBITDA is a non-IFRS measure and EBITDA margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 30 of the Company's MD&A for the three and six-month periods ended June 30, 2025 . Items used to calculate EBITDA and EBITDA margin for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income as stated 86,543 65,401 125,942 124,345 Finance cost 43,033 54,684 132,684 105,997 Income tax expense 31,486 24,385 47,426 47,441 Depreciation and amortization 20,559 21,002 41,082 41,880 Depreciation of lease assets (6,947) (7,242) (13,930) (14,322) EBITDA 174,674 158,230 333,204 305,341 Divided by revenue 418,311 377,795 810,172 734,909 EBITDA margin 41.8 % 41.9 % 41.1 % 41.5 % Free Cash Flow from Operations before Net Growth in Gross Consumer Loans Receivable Free cash flow from operations before net growth in gross consumer loans receivable is a non-IFRS measure. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 30 of the Company's MD&A for the three and six-month periods ended June 30, 2025 . Items used to calculate free cash flow from operations before net growth in gross consumer loans receivable for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Cash used in operating activities (278,453) (192,992) (437,623) (322,727) Net growth in gross consumer loans receivable during the period 313,201 286,076 503,611 492,953 Free cash flows from operations before net growth in gross consumer loans receivable 34,748 93,084 65,988 170,226 Adjusted Return on Receivables Adjusted return on receivables is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 30 of the Company's MD&A for the three and six-month period ended June 30, 2025 . Items used to calculate adjusted return on assets for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended June 30, June 30, 2025 June 30, June 30, 2024
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($ in 000's except percentages) 2025 (adjusted) 2024 (adjusted) Net income as stated 86,543 86,543 65,401 65,401 After-tax impact of adjusting items 1 - (18,086) - 5,931 Adjusted net income 86,543 68,457 65,401 71,332 Multiplied by number of periods in a year X 4 X 4 X 4 X 4 Divided by average gross consumer loans receivable 4,977,757 4,977,757 4,041,884 4,041,884 Return on receivables 7.0 % 5.5 % 6.5 % 7.1 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. Six Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2025 (adjusted) June 30, 2024 June 30, 2024 (adjusted) Net income as stated 125,942 125,942 124,345 124,345 After-tax impact of adjusting items 1 - 2,554 - 13,275 Adjusted net income 125,942 128,496 124,345 137,620 Multiplied by number of periods in a year X 4/2 X 4/2 X 4/2 X 4/2 Divided by average gross consumer loans receivable 4,843,751 4,843,751 3,910,097 3,910,097 Return on receivables 5.2 % 5.3 % 6.4 % 7.0 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. Adjusted Return on Assets Adjusted return on assets is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 30 of the Company's MD&A for the three and six-month period ended June 30, 2025 . Items used to calculate adjusted return on assets for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2025 (adjusted) June 30, 2024 June 30, 2024 (adjusted) Net income as stated 86,543 86,543 65,401 65,401 After-tax impact of adjusting items 1 - (18,086) - 5,931 Adjusted net income 86,543 68,457 65,401 71,332 Multiplied by number of periods in a year X 4 X 4 X 4 X 4 Divided by average total assets for the period 5,447,957 5,447,957 4,520,809 4,520,809 Return on assets 6.3 % 5.0 % 5.8 % 6.3 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. Six Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2025 (adjusted) June 30, 2024 June 30, 2024 (adjusted) Net income as stated 125,942 125,942 124,345 124,345 After-tax impact of adjusting items 1 - 2,554 - 13,275 Adjusted net income 125,942 128,496 124,345 137,620 Multiplied by number of periods in a year X 4/2 X 4/2 X 4/2 X 4/2 Divided by average total assets for the period 5,383,483 5,383,483 4,401,928 4,401,928 Return on assets 4.7 % 4.8 % 5.6 % 6.3 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. Adjusted Return on Equity Adjusted return on equity is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 30 of the Company's MD&A for the three and six-month periods ended June 30, 2025 . Items used to calculate adjusted return on equity for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2025 (adjusted) June 30, 2024 June 30, 2024 (adjusted) Net income as stated 86,543 86,543 65,401 65,401 After-tax impact of adjusting items 1 - (18,086) - 5,931 Adjusted net income 86,543 68,457 65,401 71,332 Multiplied by number of periods in a year X 4 X 4 X 4 X 4 Divided by average shareholders' equity for the period 1,182,362 1,182,362 1,124,055 1,124,055 Return on equity 29.3 % 23.2 % 23.3 % 25.4 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. Six Months Ended June 30, June 30,
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($ in 000's except percentages) June 30, 2025 2025 (adjusted) June 30, 2024 2024 (adjusted) Net income as stated 125,942 125,942 124,345 124,345 After-tax impact of adjusting items 1 - 2,554 - 13,275 Adjusted net income 125,942 128,496 124,345 137,620 Multiplied by number of periods in a year X 4/2 X 4/2 X 4/2 X 4/2 Divided by average shareholders' equity for the period 1,188,596 1,188,596 1,100,729 1,100,729 Return on equity 21.2 % 21.6 % 22.6 % 25.0 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section Reported and Adjusted Return on Tangible Common Equity Reported and adjusted return on tangible common equity are non-IFRS ratios. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 30 of the Company's MD&A for the three and six-month periods ended June 30, 2025 . Items used to calculate reported and adjusted return on tangible common equity for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2025 (adjusted) June 30, 2024 June 30, 2024 (adjusted) Net income as stated 86,543 86,543 65,401 65,401 Amortization of acquired intangible assets 3,275 3,275 3,275 3,275 Income tax impact of the above item (868) (868) (868) (868) Net income before amortization of acquired intangible assets, net of income tax 88,950 88,950 67,808 67,808 Impact of adjusting items 1 Other operating expenses Integration costs - 92 - 132 Advisory costs - - - 2,387 Other loss - - - 2,740 Finance costs Fair value change on prepayment options related to Notes Payable - (27,974) - (960) Total pre-tax impact of adjusting items - (27,882) - 4,299 Income tax impact of above adjusting items 7,389 - (775) After-tax impact of adjusting items - (20,493) - 3,524 Adjusted net income 88,950 68,457 67,808 71,332 Multiplied by number of periods in a year X 4 X 4 X 4 X 4 Average shareholders' equity 1,182,362 1,182,362 1,124,055 1,124,055 Average goodwill (180,923) (180,923) (180,923) (180,923) Average acquired intangible assets 2 (78,054) (78,054) (91,154) (91,154) Average related deferred tax liabilities 20,684 20,684 24,156 24,156 Divided by average tangible common equity 944,069 944,069 876,134 876,134 Return on tangible common equity 37.7 % 29.0 % 31.0 % 32.6 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. 2 Excludes intangible assets relating to software. Six Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2025 (adjusted) June 30, 2024 June 30, 2024 (adjusted) Net income as stated 125,942 125,942 124,345 124,345 Amortization of acquired intangible assets 6,550 6,550 6,550 6,550 Income tax impact of the above item (1,736) (1,736) (1,736) (1,736) Net income before amortization of acquired intangible assets, net of income tax 130,756 130,756 129,159 129,159 Impact of adjusting items 1 Other operating expenses Integration costs - 184 - 314 Advisory costs - - - 4,930 Other loss - - - 7,138 Finance costs Fair value change on prepayment options related to Notes Payable - (3,260) - (2,158) Total pre-tax impact of adjusting items - (3,076) - 10,224 Income tax impact of above adjusting items 816 - (1,763) After-tax impact of adjusting items - (2,260) - 8,461 Adjusted net income 130,756 128,496 129,159 137,620 Multiplied by number of periods in a year X 4/2 X 4/2 X 4/2 X 4/2 Average shareholders' equity 1,188,596 1,188,596 1,100,729 1,100,729 Average goodwill (180,923) (180,923) (180,923) (180,923) Average acquired intangible assets 2 (79,692) (79,692) (92,792) (92,792) Average related deferred tax liabilities 21,118 21,118 24,590 24,590 Divided by average tangible common equity 949,099 949,099 851,604 851,604 Return on tangible common equity 27.6 % 27.1 % 30.3 % 32.3 % 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share"
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section. 2 Excludes intangible assets relating to software. easyhome Financial Revenue easyhome financial revenue is a non-IFRS measure. It's calculated as total company revenue less easyfinancial revenue and leasing revenue. The Company believes that easyhome financial revenue is an important measure of the performance of the easyhome segment. Items used to calculate easyhome financial revenue for the three- month periods ended June 30, 2025 and 2024 include those indicated in the chart below: ($ in 000's) Three Months Ended June 30, 2025 June 30, 2024 Total company revenue 418,311 377,795 Less: easyfinancial revenue (380,854) (339,511) Less: leasing revenue (23,059) (25,408) easyhome financial revenue 14,398 12,876 Total Yield on Consumer Loans as a Percentage of Average Gross Consumer Loans Receivable Total yield on consumer loans as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section "Portfolio Analysis" on page 19 of the Company's MD&A for the three and six-month period ended June 30, 2025 . Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's except percentages) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Total Company revenue 418,311 377,795 810,172 734,909 Less: Leasing revenue (23,059) (25,408) (46,574) (51,657) Financial revenue 395,252 352,387 763,598 683,252 Multiplied by number of periods in a year X 4 X 4 X 4/2 X 4/2 Divided by average gross consumer loans receivable 4,977,757 4,041,884 4,843,751 3,910,097 Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized) 31.8 % 34.9 % 31.5 % 34.9 % Net Principal Written and Percentage Net Principal Written to New Customers Net principal written (Net loan advances) is a non-IFRS measure. See description in section "Portfolio Analysis" on page 19 of the Company's MD&A for the three and six- month period ended June 30, 2025 . The percentage of net loan advances to new customers is a non-IFRS ratio. It is calculated as loan originations to new customers divided by the net principal written. The Company uses percentage of net loan advances to new customers, among other measures, to assess the operating performance of its lending business. Items used to calculate the percentage of net loan advances to new customers for the three and six-month periods ended June 30, 2025 and 2024 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Gross loan originations 903,719 826,659 1,580,487 1,513,092 Loan originations to new customers 557,895 458,920 989,842 814,801 Loan originations to existing customers 345,824 367,739 590,645 698,291 Less: Proceeds applied to repay existing loans (140,444) (184,658) (226,155) (355,740) Net advance to existing customers 205,380 183,081 364,490 342,551 Net principal written 763,275 642,001 1,354,332 1,157,352 Percentage net advances to new customers 73.1 % 71.5 % 73.1 % 70.4 % Debt to Adjusted Tangible Equity Debt to adjusted tangible equity is a capital management measure. Refer to "Financial Condition" section on page 42 of the Company's MD&A for the three and six-month periods ended June 30, 2025 . Average Loan Book Per Branch Average loan book per branch is a supplementary financial measure. It is calculated as gross consumer loans receivable held by easyfinancial branch locations divided by the number of total easyfinancial branch locations. Weighted Average Interest Rate Weighted average interest rate is a supplementary financial measure. It is calculated as the sum of individual loan balance multiplied by interest rate divided by gross consumer loans receivable. SOURCE goeasy Ltd https://goeasy.investorroom.com/2025-08-06-goeasy-Ltd-Reports-Record-Results-for-the-Second-Quarter