Earnings release
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goeasy goeasy Ltd. Reports Results for the Second Quarter 2026 Gross Consumer Loans Receivable of $ 5.00 billion at Q2 / 26 end , down 2 % from $ 5.11 billion at Q2 / 25 Revenue of $ 390 million in Q2 / 26 , down 10 % compared to $ 431 million in Q2 / 25 Net Charge Off Rate¹ of 16.7 % in Q2 / 26 , up 800 bps from 8.7 % in Q2 / 25 Diluted Earnings Per Share of $ 0.96 in Q2 / 26 , down from diluted EPS of $ 5.49 in Q2 / 25 Adjusted Diluted Earnings Per Share¹ of $ 1.02 in Q2 / 26 , down from Adj . Dil . EPS¹ of $ 4.40 in Q2 / 25 MISSISSAUGA , ON , Aug. 6 , 2026 / CNW / -- goeasy Ltd. ( TSX : GSY ) , ( " goeasy " or the " Company " ) , one of Canada's leading consumer lenders focused on delivering a full suite of financial services to Canadians with non - prime credit scores , today reported results for the second quarter ended June 30 , 2026 . " We continued to methodically execute our six - point action plan in the second quarter , including managing our origination activity to prioritize liquidity . Compared to the first quarter of 2026 , we reduced our net charge off rate by 110 basis points and strengthened our debt - to - adjusted tangible equity ratio from 5.30x to 4.95x , " said Patrick Ens , goeasy's Chief Executive Officer . " We generated $ 585.4 million cash from operating activities before net principal written , repaid the full $ 314.0 million balance outstanding on our revolving credit facility and regained access to incremental draws on that facility as of July 1. We believe in the strength and durability of our business , and the actions we took in the second quarter have helped to reestablish our financial foundation to prudently grow originations . " Second Quarter Results During the quarter , the Company funded $ 272.1 million in gross loan originations , down 70 % compared to $ 903.7 million in the second quarter of 2025. The decrease in lending , consistent with the Company's six - point action plan , was primarily due to a reduction in merchant - originated automotive and powersports loan originations attributable to the implementation of tighter credit underwriting measures as those portfolios continued to exhibit unfavourable credit risk performance , and a moderation in direct - to - consumer loan originations , implemented to manage the Company's liquidity . Gross consumer loans receivable decreased 2 % to $ 5.00 billion as at June 30 , 2026 from $ 5.11 billion at the end of the second quarter of 2025 , and decreased 7 % from $ 5.36 billion at the end of the first quarter of 2026. The decrease in the Company's average consumer loans receivable and lower total yield on consumer loans ( including ancillary products ) were the main drivers of the 10 % decrease in revenue from $ 431.3 million in the second quarter of 2025 to $ 390.0 million in the second quarter of 2026. Total yield on consumer loans ( including ancillary products ) realized by the Company on its average consumer loans receivable was 28.3 % in the quarter , down 340 bps from the same period in 2025 , but up 40 bps from the first quarter of 2026 . Total annualized yield decreased year - over - year mainly due to the impact of higher allowance for credit losses on interest receivable ; credit tightening in merchant - originated loan originations and a moderate reduction in direct - to - consumer loan originations ; the continued impact of the lowered maximum allowable rate of interest on the Company's unsecured lending product ; and a higher proportion of larger dollar value loans , which have lower yields on certain ancillary products . During the quarter , net charge offs as a percentage of average gross consumer loans receivable was 16.7 % , up 800 bps from 8.7 % in the second quarter of 2025 , but down 110 bps from the first quarter of 2026. Net charge offs as a percentage of average gross consumer loans receivable1 increased year - over - year primarily due to higher charge offs in the merchant - originated automotive and powersports loan portfolios , higher charge offs in the direct - to - consumer portfolio and lower average gross consumer loans receivable . The total allowance for credit losses on gross consumer loans increased to $ 499.5 million from $ 406.7 million as at June 30 , 2025 , mainly due to the Company's current view of collectability and an increase in the credit loss outlook for merchant- originated automotive and powersports loans . The rate of allowance for expected credit losses , defined as the allowance for credit losses on gross consumer loans receivable as a percentage of the ending gross consumer loans receivable , declined from 10.09 % as at March 31 , 2026 to 9.99 % as at June 30 , 2026 , driven mainly by the favourable changes in the macroeconomic outlook incorporated into the Company's IFRS 9 expected credit loss model . For the three - month period ended June 30 , 2026 , the net change in allowance for credit losses on gross consumer loans was negative $ 41.6 million , compared to $ 21.0 million in the same period of 2025 , a decrease of $ 62.6 million . This decrease was primarily driven by the release of provision for credit losses resulting from the decline in gross consumer loans receivable during the three - month period ended June 30 , 2026 , as discussed above . Operating income for the second quarter of 2026 was $ 99.6 million , down 41 % from $ 167.7 million in the second quarter of
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2025. After adjusting for unusual and non-recurring items, the Company reported adjusted operating income 2 of $102.9 million, a decrease from $171.1 million in the second quarter of 2025. The efficiency ratio 1 for the second quarter of 2026 was 25.5%, relatively flat from 25.6% in the second quarter of 2025. Net income for the second quarter of 2026 was $15.9 million, down from net income of $91.5 million in the second quarter of 2025. Diluted earnings per share was $0.96, down from diluted earnings per share of $5.49 reported in the second quarter of 2025. Adjusted net income 2 for the second quarter of 2026 was $16.8 million, down from adjusted net income 2 of $73.4 million in the second quarter of 2025. The decrease in adjusted net income was primarily driven by lower adjusted operating income from lower total yield on consumer loans (including ancillary products), elevated credit losses and a higher cost of borrowing. Adjusted diluted earnings per share 1 was $1.02, down from adjusted diluted earnings per share 1 of $4.40 in the second quarter of 2025. Balance Sheet and Liquidity Total assets were $5.48 billion as at June 30, 2026, a decrease of 3% from $5.63 billion as at June 30, 2025, related primarily to a $224.5 million decrease in net consumer loans receivable, driven by lower originations during the period, higher charge offs recognized from the fourth quarter of 2025 to the second quarter of 2026, and impairment of goodwill related to the LendCare cash-generating unit. Cash provided by operating activities before net principal written 2 in the second quarter of 2026 was $585.4 million, compared to $489.1 million in the second quarter of 2025. The Company's debt-to-adjusted tangible equity ratio 3 , a capital management measure for leverage, was 4.95x as at June 30, 2026, compared to 3.71x as at June 30, 2025 and 5.30x as at March 31, 2026. The average blended coupon interest rate for the Company's debt as at June 30, 2026 was 6.8%. As at June 30, 2026, goeasy had liquidity (cash on hand plus unused contractual borrowing capacity) of $1.37 billion, of which $1.06 billion was not available to be drawn by the Company. On July 1, 2026, goeasy regained the ability to make incremental draws on its $550 million Revolving Credit Facility. In July 2026, the Company also received confirmation from the applicable lenders under its amended Revolving Securitization Facility I (the "Securitization Facility") that the audit report required under that facility had been accepted and the related condition precedent to regaining access to the Securitization Facility (which is one of two such conditions) had been fulfilled. The Company has also meaningfully advanced steps to replace the backup servicer under the Securitization Facility and does not expect any impediments to meeting this condition, completion of which will permit additional draws on the Securitization Facility. Discussions between the Company and its lenders have also been initiated to extend the Securitization Facility for one year, however these discussions are preliminary and there is no assurance that such an extension will be agreed upon nor certainty as to the timing or terms of such an extension. The Company was in compliance with all of its covenants (including financial covenants) under its Revolving Credit Facility as at June 30, 2026. The Company was not subject to financial covenant compliance, and was in compliance with all other applicable covenants, for the Securitization Facility as at June 30, 2026. Selected Additional Second Quarter Information (June 30, 2026 relative to June 30, 2025, where applicable) 45% of gross consumer loans receivable secured, down from 48% Total number of active lending customers at 438,000, down 2% 62% of net loan advances 1 in the quarter were issued to new customers, down from 73% Weighted average interest rate 4 on consumer loans of 26.3%, up from 26.1% 87.9% of gross consumer loans receivable, on a dollar-weighted basis, carried an interest rate less than or equal to a 35% Annual Percentage Rate, being the maximum allowable interest rate for new loans written after January 1, 2025 Six Months Results For the first six months of 2026, the Company funded $823.4 million in loan originations, down 48% from $1.58 billion in the same period of 2025. Total yield on consumer loans (including ancillary products) realized by the Company on its average consumer loans receivable 1 was 28.1% in the first six months of 2026, down 340 bps from the same period in 2025. Net charge offs for the first six months of 2026, as a percentage of average gross consumer loans receivable 1 , was 17.3%, up 850 bps from 8.8% in the same period of 2025. For the first six months of 2026, the Company produced revenues of $802.9 million, down 4% compared to $836.3 million in the same period of 2025. Operating income for the period was $128.5 million compared with $311.8 million in the first six months of 2025, a decrease of $183.3 million or 59%. Adjusted operating income 2 for the first six months of 2026 was $139.8 million, 56% lower compared to $318.5 million in the same period of 2025. Efficiency ratio 1 for the first six months of 2026 was 25.0%, an improvement of 90 bps from 25.9% in the same period of 2025. Net loss for the first six months of 2026 was $37.1 million and diluted loss per share was $2.26 compared with net income of $130.2 million or $7.73 per share in the same period of 2025. Adjusted net loss 2 for the first six months of 2026 was $14.5 million and adjusted diluted loss per share 1 was $0.88, compared with adjusted net income 2 of $132.7 million or $7.88 per
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share, both decreases of 111%. Updated 2026 Outlook The Company's Q2 2026 outlook, and the relevant assumptions and risk factors, were disclosed in its March 31, 2026 MD&A. The Company's actual second quarter performance was consistent with its second quarter 2026 outlook across all three measures. The Company continues to focus on prudent management of liquidity, strengthening of credit performance, and alignment of its capital structure. Management remains confident in goeasy's ability to return to its long track record of strong credit performance and returns that will reinforce confidence among shareholders and other stakeholders. The Company has updated its Q3 2026 outlook for gross consumer loans receivable and total yield on consumer loans for the full year 2026. This update assumes the continued implementation of the Company's 6-point plan and reflects the Company's expectations for the balance of the year. Refer to "Q3 2026 Outlook and Full Year 2026 Commentary" in the Company's June 30, 2026 MD&A for more detail and to the assumptions and risks set out below under "Forward Looking Statements". Q3 2026 Outlook Full Year 2026 Commentary Gross consumer loans receivable at period end $ 4.8 to $5.0 billion Expected to be broadly in line with Q2 levels Total yield on consumer loans (including ancillary products) 1 26.5% to 28.0% Expected to be broadly in line with H1 results Net charge offs as a percentage of average gross consumer loans receivable 1 14.5% to 16.0% Expected to be in the mid-teens for full year 2026; improvement expected to continue as the year progresses Chief Risk Officer Transition The Company also announced today that Jason Appel will be leaving his role as Chief Risk Officer to pursue an external opportunity and will remain with goeasy through the end of August, to support an orderly transition. "I would like to thank Jason for his leadership and many contributions to goeasy over the past 13 years and wish him every success in the future," said Patrick Ens, Chief Executive Officer. "Jason has played an important role in helping build and strengthen our Risk and Analytics capabilities and support goeasy's growth and evolution." The Company has identified a successor and expects to announce the appointment before Jason Appel concludes his tenure with goeasy. Share Repurchases and Dividend Payments In consideration of recent developments that affected earnings in 2025, the Board of Directors made the decision to suspend the regular quarterly dividend on the Company's Common Shares and to suspend share repurchases under its normal course issuer bid on an indefinite basis. These actions are aligned with management's focus on prudently preserving capital and maintaining liquidity. Forward-Looking Statements 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, 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,
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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 ") for the year ended December 31, 2025, and for the quarter ended June 30, 2026 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. The Company particularly cautions that the Q3 2026 outlook and full year 2026 commentary presented above under the heading "Updated 2026 Outlook" (the " 2026 Outlook Information ") constitutes forward-looking information and that in formulating its outlook, the Company makes a series of assumptions, which include, but are not limited to, assumptions about Environmental Conditions (Stability in the macroeconomic environment; Continued demand for non-prime credit across); Portfolio Growth (Loan originations adjust as underwriting criteria are tightened, particularly within indirect channels); Liquidity & Funding (The Company prioritizes liquidity and covenant compliance; Continued access to funding at acceptable rates; Continued strong free cash flow from its existing portfolio); Revenue Yield (Portfolio yield expected to be negatively impacted by bad debts on interest receivable; Business mix shift to include more unsecured personal loan originations at higher yields; Total portfolio yield and net charge off as a percentage of gross consumer loans receivable on its lending products are as estimated in the Company's budget and strategic plan); Credit Performance (Net charge offs as a percentage of gross consumer loans receivable perform in line with the Company' budget and forecasts generated through the use of its proprietary credit and underwriting models; The mixture of customers acquired through each of the Company's acquisition channels and the mixture of new and existing borrowers are as estimated in the Company's forecast); Investment Performance (No material changes are assumed in the fair value of investments, and no forecast is made regarding the timing of realization of the investment portfolio); and Mergers and Acquisitions (No mergers or acquisitions are contemplated within the outlook period). These assumptions and expectations are subject to a number of risks, including the following, as well as those set out the section entitled "Risk Factors" in the Company's MD&A: Environmental & Market Conditions (Uncertainty in consumer demand or broader economic conditions may adversely impact loan originations and portfolio performance; Deterioration in employment levels or economic stability could negatively affect credit performance and increase net charge off rates; Competitive dynamics or pricing pressures may impact margins and growth); Access to Capital & Funding (The Company's ability to access capital on acceptable terms and maintain adequate liquidity to support operations and strategic priorities); Regulatory Environment (Changes to laws and regulations governing consumer lending that could impact product offerings, pricing or operations); Credit Performance (A material increase in net charge off as a percentage of gross consumer loans receivable beyond expectations, including adverse performance from prior vintages or new originations); and Operating Execution (The Company's ability to successfully execute on its Action Plan, including underwriting changes, and operating model alignment and platform consolidation; Risks associated with transitioning originations and customer portfolios toward the easyfinancial platform). The 2026 Outlook Information constitutes targets established by the Company and is subject to change as plans and business conditions vary. Accordingly, investors are cautioned not to place undue reliance on the 2026 Outlook Information. Actual results may differ materially. About goeasy goeasy Ltd. is a leading Canadian provider of non-prime consumer lending solutions, offering a suite of financial products through its easyfinancial, easyhome, and LendCare brands. goeasy offers unsecured and secured instalment loans, point-of- sale financing, and lease-to-own merchandise through its omni-channel model, which spans online, mobile, and hundreds of locations nationwide. Driven by its team members' dedication to expand access to credit for underserved communities and helping customers strengthen their financial futures, goeasy has proudly served more than 1.6 million customers while building an award-winning culture. Shares of goeasy Ltd. are listed on the Toronto Stock Exchange (TSX) under the symbol GSY. For more information, visit www.goeasy.com . For investor inquiries, contact: James Obright Senior Vice President, Investor Relations & Capital Markets investor_relations@goeasy.com For media inquiries, contact: mediainquiries@goeasy.com Notes:
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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 capital management measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. 4 These are supplementary financial measures. Refer to "Non-IFRS Measures and Other Financial Measures" section in this press release. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited) (Expressed in thousands of Canadian dollars) As At As At June 30, December 31, 2026 2025 ASSETS Cash 312,100 152,661 Accounts receivable 37,544 42,361 Prepaid expenses 9,601 9,159 Income taxes recoverable 139,504 90,559 Consumer loans receivable, net 4,647,742 5,155,360 Investments 23,117 29,103 Lease assets, net 30,523 36,656 Derivative financial assets 52,429 11,146 Deferred income tax assets 28,269 22,250 Property and equipment, net 26,201 30,788 Right-of-use assets, net 52,431 52,510 Intangible assets, net 102,371 104,142 Goodwill 21,310 21,310 TOTAL ASSETS 5,483,142 5,758,005 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Revolving credit facility (3,031) 175,052 Accounts payable and other liabilities 126,121 107,842 Dividends payable - 23,398 Unearned revenue 30,317 31,219 Accrued interest payable 68,811 68,533 Deferred income tax liabilities 3,887 5,367 Lease liabilities 58,972 59,451 Secured borrowings 54,608 88,783 Revolving securitization warehouse facilities 610,907 611,015 Derivative financial liabilities 9,683 46,107 Notes payable 3,726,742 3,690,818 TOTAL LIABILITIES 4,687,017 4,907,585 Shareholders' equity Share capital 431,206 430,325 Contributed surplus 27,708 26,782 Accumulated other comprehensive loss (32,346) (13,367) Retained earnings 369,557 406,680 TOTAL SHAREHOLDERS' EQUITY 796,125 850,420
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,483,142 5,758,005 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) (Expressed in thousands of Canadian dollars, except earnings (loss) per share) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2026 2025 2026 2025 Restated Restated REVENUE Interest income 305,493 328,523 623,403 637,414 Lease revenue 19,198 21,822 39,243 44,064 Commissions earned 61,391 73,621 131,454 141,808 Charges and fees 3,954 7,383 8,793 12,986 390,036 431,349 802,893 836,272 OPERATING EXPENSES BAD DEBTS 179,658 142,742 446,858 287,764 OTHER OPERATING EXPENSES Salaries and benefits 49,646 52,112 102,310 101,575 Share-based compensation 3,075 5,706 2,013 10,147 Technology costs 10,970 12,583 22,340 24,803 Underwriting and collections 7,592 8,671 16,977 15,833 Occupancy 5,424 5,330 11,138 11,002 Advertising and promotion 2,096 8,338 5,359 17,024 Restructuring charges - - 4,763 - Other expenses 12,167 7,567 22,857 15,249 90,970 100,307 187,757 195,633 DEPRECIATION AND AMORTIZATION Depreciation of lease assets 6,270 6,947 12,755 13,930 Amortization of intangible assets 5,599 5,655 11,124 11,301 Depreciation of right-of-use assets 5,351 5,292 10,693 10,589 Depreciation of property and equipment 2,575 2,665 5,217 5,262 19,795 20,559 39,789 41,082 TOTAL OPERATING EXPENSES 290,423 263,608 674,404 524,479 OPERATING INCOME 99,613 167,741 128,489 311,793 OTHER LOSS - - (5,986) - FINANCE COSTS (78,426) (43,033) (171,589) (132,684) INCOME BEFORE INCOME TAXES 21,187 124,708 (49,086) 179,109 INCOME TAX EXPENSE (RECOVERY) Current 6,326 33,884 (12,582) 64,779 Deferred (1,005) (628) 619 (15,831) 5,321 33,256 (11,963) 48,948 NET INCOME (LOSS) 15,866 91,452 (37,123) 130,161 BASIC EARNINGS PER SHARE 0.96 5.55 (2.26) 7.83
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DILUTED EARNINGS PER SHARE 0.96 5.49 (2.26) 7.73 SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT (Expressed in thousands of Canadian dollars, except earnings per share) Three Months Ended June 30, 2026 easyfinancial easyhome Corporate Total Revenue Interest income 291,499 13,994 - 305,493 Lease revenue - 19,198 - 19,198 Commissions earned 57,340 4,051 - 61,391 Charges and fees 3,183 771 - 3,954 352,022 38,014 - 390,036 Operating expenses Bad debts 171,884 7,774 - 179,658 Other operating expenses 54,720 12,174 24,076 90,970 Depreciation and amortization 9,972 8,274 1,549 19,795 236,576 28,222 25,625 290,423 Operating income (loss) 115,446 9,792 (25,625) 99,613 Other loss - Finance costs (78,426) Income before income taxes 21,187 Income tax expense 5,321 Net income 15,866 Diluted earnings per share 0.96 Three Months Ended June 30, 2025 (As restated) easyfinancial easyhome Corporate Total Revenue Interest income 317,396 11,127 - 328,523 Lease revenue - 21,822 - 21,822 Commissions earned 69,812 3,809 - 73,621 Charges and fees 6,684 699 - 7,383 393,892 37,457 - 431,349 Operating expenses Bad debts 137,429 5,313 - 142,742 Other operating expenses 64,178 13,253 22,876 100,307 Depreciation and amortization 9,952 8,966 1,641 20,559 211,559 27,532 24,517 263,608 Operating income (loss) 182,333 9,925 (24,517) 167,741 Other income - Finance costs (43,033) Income before income taxes 124,708
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Income tax expense 33,256 Net income 91,452 Diluted earnings per share 5.49 Six Months Ended June 30, 2026 easyfinancial easyhome Corporate Total Revenue Interest income 595,081 28,322 - 623,403 Lease revenue - 39,243 - 39,243 Commissions earned 123,346 8,108 - 131,454 Charges and fees 7,250 1,543 - 8,793 725,677 77,216 - 802,893 Operating expenses Bad debts 428,683 18,175 - 446,858 Other operating expenses 118,628 24,878 44,251 187,757 Depreciation and amortization 19,888 16,762 3,139 39,789 567,199 59,815 47,390 674,404 Operating income (loss) 158,478 17,401 (47,390) 128,489 Other loss (5,986) Finance costs (171,589) Loss before income taxes (49,086) Income taxes (recovery) (11,963) Net loss (37,123) Diluted loss per share (2.26) Six Months Ended June 30, 2025 (As restated) easyfinancial easyhome Corporate Total Revenue Interest income 615,804 21,610 - 637,414 Lease revenue - 44,064 - 44,064 Commissions earned 134,437 7,371 - 141,808 Charges and fees 11,532 1,454 - 12,986 761,773 74,499 - 836,272 Operating expenses Bad debts 277,895 9,869 - 287,764 Other operating expenses 125,705 27,177 42,751 195,633 Depreciation and amortization 19,688 18,030 3,364 41,082 423,288 55,076 46,115 524,479 Operating income (loss) 338,484 19,423 (46,115) 311,793 Other income - Finance costs (132,684) Income before income taxes 179,109 Income taxes 48,948
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Net income 130,161 Diluted earnings per share 7.73 SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS Three Months Ended ($ in 000's except earnings per share and percentages) June 30, 2026 June 30, 2025 (As restated) Variance $ / bps Variance % Change Summary Financial Results Revenue 390,036 431,349 (41,313) (9.6 %) Bad debts 179,658 142,742 36,916 25.9 % Other operating expenses 90,970 100,307 9,337 (9.3 %) EBITDA 1 113,138 181,354 (68,216) (37.6 %) EBITDA margin 1 29.0 % 42.0 % (1,300 bps) (31.0 %) Depreciation and amortization 19,795 20,559 (764) (3.7 %) Operating income 99,613 167,741 (68,128) (40.6 %) Operating margin 25.5 % 38.9 % (1,340 bps) (34.4 %) Finance costs 78,426 43,033 35,393 82.2 % Effective income tax rate 25.1 % 26.7 % (160 bps) (5.8 %) Net income 15,866 91,452 (75,586) (82.7 %) Diluted earnings per share 0.96 5.49 (4.53) (82.5 %) Return on receivables 1.2 % 7.3 % (610 bps) (83.6 %) Return on assets 1.1 % 6.7 % (560 bps) (83.6 %) Return on equity 7.9 % 31.4 % (2,350 bps) (74.8 %) Return on tangible common equity 1 10.0 % 40.5 % (3,050 bps) (75.3 %) Adjusted Financial Results 1 Other operating expenses 97,240 107,162 (9,922) (9.3 %) Efficiency ratio 25.5 % 25.6 % (10 bps) (0.4 %) Operating income 102,888 171,108 (68,220) (39.9 %) Operating margin 26.4 % 39.7 % (1,330 bps) (33.5 %) Net income 16,768 73,366 (56,598) (77.1 %) Diluted earnings per share 1.02 4.40 (3.38) (76.8 %) Return on receivables 1.3 % 5.9 % (460 bps) (78.0 %) Return on assets 1.2 % 5.3 % (410 bps) (77.4 %) Return on equity 8.4 % 25.2 % (1,680 bps) (66.7 %) Return on tangible common equity 9.2 % 31.7 % (2,250 bps) (71.0 %) Key Performance Indicators Segment Financials easyfinancial revenue 352,022 393,892 (41,870) (10.6 %) easyfinancial operating margin 32.8 % 46.3 % (1,350 bps) (29.2 %) easyhome revenue 38,014 37,457 557 1.5 % easyhome operating margin 25.8 % 26.5 % (70 bps) (2.6 %) Portfolio Indicators Gross consumer loans receivable 5,000,735 5,107,648 (106,913) (2.1 %) Growth in consumer loans receivable (362,721) 312,261 (674,982) (216.2 %)
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Gross loan originations 272,060 903,718 (631,658) (69.9 %) Total yield on consumer loans (including ancillary products) 1 28.3 % 31.7 % (340 bps) (10.8 %) Net charge offs as a percentage of average gross consumer loans receivable 1 16.7 % 8.7 % 800 bps 91.6 % Cash provided by operations before net principal written 1 585,360 489,103 96,257 19.7 % Potential monthly leasing revenue 1 5,511 6,478 (967) (14.9 %) Six Months Ended ($ in 000's except earnings per share and percentages) June 30, 2026 June 30, 2025 (As restated) Variance $ / bps Variance % Change Summary Financial Results Revenue 802,893 836,272 (33,379) (4.0 %) Bad debts 446,858 287,764 159,094 55.3 % Other operating expenses 187,757 195,632 (7,875) (4.0 %) EBITDA 1 149,537 338,945 (189,408) (55.9 %) EBITDA margin 1 18.6 % 40.5 % (2,190 bps) (54.1 %) Depreciation and amortization 39,789 41,082 (1,293) (3.1 %) Operating income 128,489 311,793 (183,304) (58.8 %) Operating margin 16.0 % 37.3 % (2,130 bps) (57.1 %) Other income (loss) (5,986) - (5,986) (100.0 %) Finance costs 171,589 132,684 38,905 29.3 % Effective income tax rate 24.4 % 27.3 % (290 bps) (10.8 %) Net income (loss) (37,123) 130,161 (167,284) (128.5 %) Diluted earnings (loss) per share (2.26) 7.73 (9.99) (129.2 %) Return on receivables (1.4 %) 5.4 % (680 bps) (125.9 %) Return on assets (1.3 %) 4.8 % (610 bps) (127.1 %) Return on equity (9.1 %) 22.2 % (3,130 bps) (141.0 %) Return on tangible common equity 1 (8.7 %) 29.0 % (3,770 bps) (130.0 %) Adjusted Financial Results 1 Other operating expenses 195,749 209,377 (13,628) (6.5 %) Efficiency ratio 25.0 % 25.9 % (90 bps) (3.5 %) Operating income 139,802 318,527 (178,725) (56.1 %) Operating margin 17.4 % 38.1 % (2,070 bps) (54.3 %) Net income (loss) (14,546) 132,715 (147,261) (111.0 %) Diluted earnings (loss) per share (0.88) 7.88 (8.76) (111.2 %) Return on receivables (0.6 %) 5.5 % (610 bps) (110.9 %) Return on assets (0.5 %) 4.9 % (540 bps) (110.2 %) Return on equity (3.6 %) 22.7 % (2,630 bps) (115.9 %) Return on tangible common equity (3.9 %) 28.5 % (3,240 bps) (113.7 %) Key Performance Indicators Segment Financials easyfinancial revenue 725,677 761,773 (36,095) (4.7 %) easyfinancial operating margin 21.8 % 44.4 % (2,260 bps) (50.9 %) easyhome revenue 77,216 74,499 (2,717) 3.6 % easyhome operating margin 22.5 % 26.1 % (360 bps) (13.8 %) Portfolio Indicators Gross consumer loans receivable 5,000,735 5,107,648 (106,913) (2.1 %) Growth in consumer loans receivable (512,732) 505,211 (1,017,943) (201.5 %) Gross loan originations 823,374 1,580,488 (757,114) (47.9 %) Total yield on consumer loans (including ancillary products) 1 28.1 % 31.5 % (340 bps) (10.7 %)
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Net charge offs as a percentage of average gross consumer loans receivable 1 17.3 % 8.8 % 850 bps 96.0 % Cash provided by operations before net principal written 1 1,145,468 899,850 245,618 27.3 % Potential monthly leasing revenue 1 5,511 6,478 (967) (14.9 %) 1 EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and cash provided by operations before net principal written are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity, net charge offs as a percentage of average gross consumer loans receivable 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 (Loss) and Adjusted Diluted Earnings (Loss) Per Share Adjusted net income (loss) is a non-IFRS measure and adjusted diluted earnings (loss) per share is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate adjusted net income (loss) and adjusted diluted earnings (loss) per share for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's except earnings per share) June 30, 2026 June 30, 2025 (As restated) June 30, 2026 June 30, 2025 (As restated) Net income (loss) 15,866 91,452 (37,123) 130,161 Impact of adjusting items Other operating expenses Restructuring charges 1 - - 4,763 - Integration costs 2 - 92 - 184 Depreciation and amortization Amortization of acquired intangible assets 3 3,275 3,275 6,550 6,550 Other loss (income) 4 - - 5,986 - Finance costs Fair value change on prepayment options related to Notes Payable 5 (2,048) (27,974) 11,260 (3,260) Total pre-tax impact of adjusting items 1,227 (24,607) 28,559 3,474 Income tax impact of above adjusting items (325) 6,521 (5,982) (920) After-tax impact of adjusting items 902 (18,086) 22,577 2,554 Adjusted net income (loss) 16,768 73,366 (14,546) 132,715 Weighted average number of diluted shares outstanding 16,504 16,673 16,462 16,840 Diluted earnings (loss) per share 0.96 5.49 (2.26) 7.73 Per share impact of adjusting items 0.06 (1.09) 1.38 0.15 Adjusted diluted earnings (loss) per share 1.02 4.40 (0.88) 7.88 Adjusting item related to restructuring charges
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1 The Company completed a restructuring exercise in March 2026 and incurred a total of $4.8 million related to severance costs, settlement claims and consulting fees. Adjusting items related to the LendCare acquisition 2 Integration costs related to representation and warranty insurance costs, and other integration costs related to the acquisition of LendCare. 3 Amortization of the $131 million intangible asset related to the acquisition of LendCare, with an estimated useful life of ten years. Adjusting item related to other loss 4 For the six-month period ended June 30, 2026, net investment loss was due to fair value changes in the Company's investments. Adjusting item related to prepayment options embedded in the Notes Payable 5 For the three and six-month periods ended June 30, 2025 and 2026, the Company recognized a fair value change on the prepayment options related to Notes Payable. Adjusted Other Operating Expenses and Efficiency Ratio Adjusted other operating expenses is a non-IFRS measure and efficiency ratio is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate adjusted other operating expenses and efficiency ratio for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's except percentages) June 30, 2026 June 30, 2025 (As restated) June 30, 2026 June 30, 2025 (As restated) Other operating expenses as stated 90,970 100,307 187,757 195,632 Impact of adjusting items 1 Other operating expenses Restructuring charges - - (4,763) - Integration costs - (92) - (184) Depreciation and amortization Depreciation of lease assets 6,270 6,947 12,755 13,930 Total impact of adjusting items 6,270 6,855 7,992 13,746 Adjusted other operating expenses 97,240 107,162 195,749 209,378 Total revenue 390,036 431,349 802,893 836,272 Less: Bad debts on interest receivable (8,540) (13,227) (19,419) (26,966) 381,496 418,122 783,474 809,307 Efficiency ratio 25.5 % 25.6 % 25.0 % 25.9 % 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 margin 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 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate adjusted operating income (loss) and adjusted operating margins for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended
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($ in 000's except percentages) June 30, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) easyfinancial Operating income (loss) 115,446 115,446 182,332 182,332 Divided by revenue 352,022 352,022 393,892 393,892 easyfinancial operating margin 32.8 % 32.8 % 46.3 % 46.3 % easyhome Operating income 9,792 9,792 9,925 9,925 Divided by revenue 38,014 38,014 37,457 37,457 easyhome operating margin 25.8 % 25.8 % 26.5 % 26.5 % Total Operating income (loss) 99,613 99,613 167,741 167,741 Other operating expenses 1 Restructuring charges - - - - Integration costs - - - 92 Depreciation and amortization 1 Amortization of acquired intangible assets - 3,275 - 3,275 Adjusted operating income (loss) 99,613 102,888 167,741 171,108 Divided by revenue 390,036 390,036 431,349 431,349 Total operating margin 25.5 % 25.5 % 38.9 % 39.7 % 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, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) easyfinancial Operating income (loss) 158,481 158,481 338,484 338,484 Divided by revenue 725,677 725,677 761,773 761,773 easyfinancial operating margin 21.8 % 21.8 % 44.4 % 44.4 % easyhome Operating income 17,401 17,401 19,423 19,423 Divided by revenue 77,216 77,216 74,499 74,499 easyhome operating margin 22.5 % 22.5 % 26.1 % 26.1 % Total Operating income (loss) 128,489 128,489 311,793 311,793 Other operating expenses 1 Restructuring charges - 4,763 - - Integration costs - - - 184 Depreciation and amortization 1 Amortization of acquired intangible assets - 6,550 - 6,550
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Adjusted operating income (loss) 128,489 139,802 311,793 318,527 Divided by revenue 802,893 802,893 836,272 836,272 Total operating margin 16.0 % 17.4 % 37.3 % 38.1 % 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, while EBITDA margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate EBITDA and EBITDA margin for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's except percentages) June 30, 2026 June 30, 2025 (As restated) June 30, 2026 June 30, 2025 (As restated) Net income (loss) 15,866 91,452 (37,123) 130,161 Finance cost 78,426 43,033 171,589 132,684 Income tax expense 5,321 33,257 (11,963) 48,948 Depreciation and amortization 19,795 20,559 39,789 41,082 Depreciation of lease assets (6,270) (6,947) (12,755) (13,930) EBITDA 113,138 181,354 149,537 338,945 Divided by revenue 390,036 431,349 802,893 836,272 EBITDA margin 29.0 % 42.0 % 18.6 % 40.5 % Cash Provided by Operating Activities before Net Principal Written Cash provided by operating activities before net principal written is a non-IFRS measure. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate cash provided by operating activities before net principal written for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's) June 30, 2026 June 30, 2025 (As restated) June 30, 2026 June 30, 2025 (As restated) Cash provided by (used in) operating activities 377,905 (274,170) 500,201 (454,482) Net principal written 207,455 763,273 645,267 1,354,332 Cash provided by operating activities before net principal written 585,360 489,103 1,145,468 899,850 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 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate adjusted return on receivables for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended
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($ in 000's except percentages) June 30, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) Net income (loss) 15,866 15,866 91,452 91,452 After-tax impact of adjusting items 1 - 902 - (18,086) Adjusted net income (loss) 15,866 16,768 91,452 73,366 Multiplied by number of periods in a year X 4 X 4 X 4 X 4 Divided by average gross consumer loans receivable 5,101,112 5,101,112 4,980,397 4,980,397 Return on receivables 1.2 % 1.3 % 7.3 % 5.9 % 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, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) Net income (loss) (37,123) (37,123) 130,161 130,161 After-tax impact of adjusting items 1 - 22,577 - 2,554 Adjusted net income (loss) (37,123) (14,546) 130,161 132,715 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 5,277,695 5,277,695 4,846,548 4,846,548 Return on receivables (1.4 %) (0.6 %) 5.4 % 5.5 % 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 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate adjusted return on assets for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended ($ in 000's except percentages) June 30, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) Net income (loss) 15,866 15,866 91,452 91,452 After-tax impact of adjusting items 1 - 902 - (18,086) Adjusted net income (loss) 15,866 16,768 91,452 73,366 Multiplied by number of periods in a year X 4 X 4 X 4 X 4 Divided by average total assets for the period 5,652,415 5,652,415 5,487,102 5,487,102 Return on assets 1.1 % 1.2 % 6.7 % 5.3 %
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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, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) Net income (loss) (37,123) (37,123) 130,161 130,161 After-tax impact of adjusting items 1 - 22,577 - 2,554 Adjusted net income (loss) (37,123) (14,546) 130,161 132,715 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 5,687,611 5,687,611 5,395,080 5,395,080 Return on assets (1.3 %) (0.5 %) 4.8 % 4.9 % 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 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate adjusted return on equity for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended ($ in 000's except percentages) June 30, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) Net income (loss) 15,866 15,866 91,452 91,452 After-tax impact of adjusting items 1 - 902 - (18,086) Adjusted net income (loss) 15,866 16,768 91,452 73,366 Multiplied by number of periods in a year X 4 X 4 X 4 X 4 Divided by average shareholders' equity for the period 798,682 798,682 1,165,244 1,165,244 Return on equity 7.9 % 8.4 % 31.4 % 25.2 % 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, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) Net income (loss) (37,123) (37,123) 130,161 130,161 After-tax impact of adjusting items 1 - 22,577 - 2,554 Adjusted net income (loss) (37,123) (14,546) 130,161 132,715 Multiplied by number of periods in a year X 4/2 X 4/2 X 4/2 X 4/2
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Divided by average shareholders' equity for the period 815,928 815,928 1,170,889 1,170,889 Return on equity (9.1 %) (3.6 %) 22.2 % 22.7 % 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 44 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate reported and adjusted return on tangible common equity for the three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended ($ in 000's except percentages) June 30, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated) Net income 15,866 15,866 91,452 91,452 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 18,273 18,273 93,859 93,859 Impact of adjusting items 1 Other operating expenses Restructuring charges - - - - Integration costs - - - 92 Other loss - - - - Finance costs Fair value change on prepayment options related to Notes Payable - (2,048) - (27,974) Total pre-tax impact of adjusting items - (2,048) - (27,882) Income tax impact of above adjusting items - 543 - 7,389 After-tax impact of adjusting items - (1,505) - (20,493) Adjusted net income (loss) 18,273 16,768 93,859 73,366 Multiplied by number of periods in a year X 4 X 4 X 4 X 4 Average shareholders' equity 798,682 798,682 1,165,244 1,165,244 Average goodwill (21,310) (21,310) (180,923) (180,923) Average acquired intangible assets 2 (64,954) (64,954) (78,054) (78,054) Average related deferred tax liabilities 17,213 17,213 20,684 20,684 Divided by average tangible common equity 729,631 729,631 926,951 926,951 Return on tangible common equity 10.0 % 9.2 % 40.5 % 31.7 % 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, 2026 June 30, 2026 (adjusted) June 30, 2025 (As restated) June 30, 2025 (adjusted) (As restated)
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Net income (loss) (37,123) (37,123) 130,161 130,161 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 (32,309) (32,309) 134,975 134,975 Impact of adjusting items 1 Other operating expenses Restructuring charges - 4,763 - - Integration costs - - - 184 Other loss - 5,986 - - Finance costs Fair value change on prepayment options related to Notes Payable - 11,260 - (3,260) Total pre-tax impact of adjusting items - 22,009 - (3,076) Income tax impact of above adjusting items - (4,246) - 816 After-tax impact of adjusting items - 17,763 - (2,260) Adjusted net income (loss) (32,309) (14,546) 134,975 132,715 Multiplied by number of periods in a year X 4/2 X 4/2 X 4/2 X 4/2 Average shareholders' equity 815,928 815,928 1,170,889 1,170,889 Average goodwill (21,310) (21,310) (180,923) (180,923) Average acquired intangible assets 2 (66,592) (66,592) (79,692) (79,692) Average related deferred tax liabilities 17,647 17,647 21,118 21,118 Divided by average tangible common equity 745,673 745,673 931,392 931,392 Return on tangible common equity (8.7 %) (3.9 %) 29.0 % 28.5 % 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. 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 30 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for three and six-month periods ended June 30, 2026 and 2025 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's except percentages) June 30, 2026 June 30, 2025 (As restated) June 30, 2026 June 30, 2025 (As restated) Total Company revenue 390,036 431,349 802,893 836,272 Less: Leasing revenue (20,386) (23,059) (41,659) (46,574) Less: Bad debts on interest income (8,540) (13,227) (19,419) (26,965) Adjusted financial revenue 361,110 395,063 741,815 762,733 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 5,101,112 4,980,397 5,277,695 4,846,548 Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized) 28.3 % 31.7 % 28.1 % 31.5 % Net Charge Offs as a Percentage of Average Gross Consumer Loans Receivable Net charge Offs as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section
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"Portfolio Analysis" on page 30 of the Company's MD&A for the three and six-month periods ended June 30, 2026. Items used to calculate net charge Offs as a percentage of average gross consumer loans receivable for the three and six-month periods ended June 30, 2026. and 2025 include those indicated in the chart below: Three Months Ended ($in 000's except percentages) June 30, 2026 June 30, 2025 (As restated) Net charge offs on gross consumer loans receivable 212,741 108,545 Multiplied by number of periods in a year X 4 X 4 Divided by average gross consumer loans receivable 5,101,112 4,980,397 Net charge offs as a percentage of average gross consumer loans receivable (annualized) 16.7 % 8.7 % Six Months Ended ($in 000's except percentages) June 30, 2026 June 30, 2025 (As restated) Net charge offs on gross consumer loans receivable 455,322 213,304 Multiplied by number of periods in a year X4/2 X4/2 Divided by average gross consumer loans receivable 5,277,695 4,846,548 Net charge offs as a percentage of average gross consumer loans receivable (annualized) 17.3 % 8.8 % 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 30 of the Company's MD&A for the three and six-month periods ended June 30, 2026. 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-month periods ended for the three and six-month periods ended June 30, 2026 include those indicated in the chart below: Three Months Ended Six Months Ended ($ in 000's) June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Gross loan originations 272,060 903,718 823,374 1,580,487 Loan originations to new customers 128,567 557,894 441,261 989,843 Loan originations to existing customers 143,493 345,824 382,113 590,644 Less: Proceeds applied to repay existing loans (64,605) (140,445) (178,107) (226,155) Net advance to existing customers 78,888 205,379 204,006 364,489 Net principal written 207,455 763,273 645,267 1,354,332 Percentage net advances to new customers 62.0 % 73.1 % 68.4 % 73.1 % Debt to Adjusted Tangible Equity Debt to adjusted tangible equity is a capital management measure. Refer to "Financial Condition" section on page 55 of the Company's MD&A for the three and six-month periods ended June 30, 2026.
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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/2026-08-06-goeasy-Ltd-Reports-Results-for-the-Second-Quarter-2026