Loan Originations of $946 million, up 13% from $839 million
Loan Growth of $336 million, up 32% from $255 million
Loan Portfolio of $5.44 billion, up 24% from $4.39 billion
Revenue of $440 million, up 15% from $383 million
Net Charge Off Rate of 8.9%, down 30 bps from 9.2%
Diluted EPS of $1.98; Adjusted Diluted EPS1 of $4.12, down 5% from $4.32
MISSISSAUGA, ON, Nov. 5, 2025 /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 near to non-prime credit scores, today reported results for the third quarter ended September 30, 2025.
Third Quarter Results
During the quarter, the Company generated $946 million in loan originations, up 13% compared to $839 million produced in the third quarter of 2024. The increase in lending was driven by a robust volume of applications for credit, which were up 22% over the prior year. The Company experienced strong performance across all our product and acquisition channels, including unsecured lending, home equity lending, automotive financing and point-of-sale financing.
The increase in loan originations during the quarter led to growth in the loan portfolio of $336 million, in line with the Company's outlook range of between $325 million and $350 million. At quarter end, the consumer loan portfolio was $5.44 billion, up 24% from $4.39 billion in the third quarter of 2024. Total annualized yield (including ancillary products) realized on average consumer loans receivable was 31.4% in the quarter, down 180 bps from the same period in 2024. The growth in consumer loans led to an increase in revenue, which was a record $440 million, up 15% from $383 million in the third quarter of last year.
During the quarter, the annualized net charge off rate was 8.9%, down 30 bps from 9.2% in the third quarter of 2024 primarily due to an increase in secured loans in the product mix and ongoing optimization of credit, underwriting and collection practices. The Company's allowance for future credit losses increased to 8.13%, compared to 7.92% in the second quarter of 2025 in response to elevated use of borrower assistance programs and higher early-stage delinquencies attributable to persistent weak macroeconomic conditions.
Operating income for the third quarter of 2025 was $166 million, up 4% from $160 million in the third quarter of 2024. Operating margin for the third quarter was 37.8%, down from 41.7% in the same period last year. After adjusting for unusual and non-recurring items, the Company reported adjusted operating income2 of $170 million, an increase of 4% compared to $163 million in the third quarter of 2024. Adjusted operating margin1 for the third quarter was 38.6%, down from 42.6% in the same period in 2024. The efficiency ratio1 for the third quarter of 2025 was 23.4%, a slight increase from 23.1% in the third quarter of 2024.
The third quarter was impacted by a $43.1 million non-cash fair value change on prepayment options related to notes payable, resulting in net income of $33.1 million, down 61% from $84.9 million in the same period of 2024, and diluted earnings per share of $1.98, down 59% from the $4.88 reported in the third quarter of 2024. Adjusted net income2 was $68.9 million, down 8% from $75.1 million in the third quarter of 2024. Adjusted diluted earnings per share1 was $4.12, down 5% from $4.32 in the third quarter of 2024. Return on equity during the quarter was 10.8%, compared to 29.1% in the third quarter of 2024. Adjusted return on equity1 was 22.6% in the quarter, compared to 25.7% in the same period of 2024.
"Carrying forward our momentum from the second quarter, strong consumer appetite for credit continued in Q3 with application volumes up 22% over last year. This translated into loan receivable growth of $336 million and quarter ending consumer loans receivable of $5.44 billion. However, as we had been anticipating, the economic climate continued to be challenging and this was reflected in our early-stage delinquencies." said Dan Rees, goeasy's Chief Executive Officer. "Our customers are resilient and have been managing through a protracted period of stress and ongoing uncertainty. We have supported them by optimizing our borrower assistance tools while remaining highly focused on cash collections. We have increased provisions for the quarter accordingly." Mr. Rees continued. "With the strong progress through the first nine months of the year, we remain confident in the long-term potential of the business."
Other Key Third Quarter Highlights
(Third quarter 2025 relative to third quarter 2024, where applicable)
easyfinancial
- Record revenue of $403 million, up 17%
- 48% of the loan portfolio secured, up from 45%
- Strong volume of applications for credit, up 22%
- New customer volume at 54,600, up 13%
- 73% of net loan advances1 in the quarter were issued to new customers, up from 72%
- Strong volume of originations in automotive financing, up 19%
- Average loan book per branch3 improved to a record $8.0 million, an increase of 22%
- Weighted average interest rate3 on consumer loans of 27.7%, down from 29.3%
- Operating income of $177 million, up 2%
easyhome
- Revenue of $37.5 million, down slightly from $37.7 million
- Consumer loan portfolio within easyhome stores increased to $150.8 million, up 34%
- Financial revenue2 from consumer lending increased to $15.1 million, up 17%
- Operating income of $8.7 million, down 24%
Overall
- 97th consecutive quarter of positive net income
- 2025 marks the 21st consecutive year of paying dividends and the 11th consecutive year with a dividend increase
- 62nd consecutive quarter of same store revenue growth
- Over 1.6 million total customers served since easyfinancial's inception
- Acquired and organically originated approximately $18.5 billion in loans since easyfinancial's inception
- Adjusted return on equity1 of 22.6%, down from 25.7%
- Fully drawn weighted average cost of borrowing at 6.1%, down from 6.6%
- Debt to adjusted tangible equity4 of 3.97x on September 30, 2025
Nine Months Results
For the first nine months of 2025, the Company funded $2.53 billion in loan originations, up 7% from $2.35 billion in the same period of 2024. The consumer loans receivable portfolio finished at $5.44 billion, up 24% from $4.39 billion as of September 30, 2024. The annualized net charge off rate for the first nine months of 2025 was 8.8%, down 40 bps from 9.2% in the same period of 2024.
For the first nine months of 2025, the Company produced record revenues of $1.25 billion, up 12% compared to $1.12 billion in the same period of 2024. Operating income for the period was a record $472 million compared with $445 million in the first nine months of 2024, an increase of $28 million or 6%. Adjusted operating income2 for the first nine months of 2025 was a record $483 million, 5% higher compared to $460 million in the same period of 2024. Efficiency ratio1 for the first nine months of 2025 was 25.0%, an improvement of 80 bps from 25.8% in the same period of 2024.
Net income for the first nine months of 2025 was $159 million and diluted earnings per share was $9.47 compared with $209 million or $12.06 per share. Adjusted net income2 for the first nine months of 2025 was $197 million and adjusted diluted earnings per share1 was $11.76, compared with $213 million or $12.26 per share, decreases of 7% and 4%, respectively. Reported return on equity was 17.7%, while adjusted return on equity1 was 22.0%, down from 25.2% in the same period of 2024.
Balance Sheet and Liquidity
Total assets were $6.20 billion as of September 30, 2025, an increase of 27% from $4.89 billion as of September 30, 2024, primarily driven by growth in consumer loans receivable.
On August 20, 2025, the Company issued US$450 million of 6.875% senior unsecured notes due February 2031 (the "USD Notes"). Concurrent with the issuance, the Company entered into cross-currency swaps to hedge the USD Notes at a CAD interest rate of 6.106%. Additionally, the Company issued $175 million of 6.000% senior unsecured notes due May 2030 (the "CAD Notes"), increasing the Company's total outstanding May 2030 CAD Notes to $325 million. Total gross proceeds from the USD Notes and CAD Notes offerings was $796 million. The Company used the net proceeds to partially repay indebtedness under its secured facilities and for general corporate purposes.
Subsequent to quarter-end, the Company renewed its revolving securitization warehouse facility collateralized by consumer loans (the "Securitization Warehouse Facility"). Capacity under the Securitization Warehouse Facility was maintained at $1.4 billion on substantially similar terms. The new maturity date for the Securitization Warehouse Facility is October 30, 2026.
Free cash flow from operations before net growth in gross consumer loans receivable2 in the quarter was $142 million compared to $126 million in the third 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 $2.31 billion in total funding capacity as of November 1, 2025 and a debt to adjusted tangible equity ratio of 3.97x as of September 30, 2025. The debt to adjusted tangible equity ratio is elevated relative to the prior quarter primarily due to higher levels of cash and liquidity on the balance sheet following the August 2025 offerings of USD Notes and CAD Notes. 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 6.6%, 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 January 9, 2026 to the holders of common shares of record as at the close of business on December 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 11,300 merchant partners across Canada. Throughout the Company's history, it has acquired and organically served over 1.6 million Canadians and originated approximately $18.5 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 $6.7 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 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 |
| | | | September 30, | December 31, |
| | | | 2025 | 2024 |
| | | | | |
| ASSETS | | | | |
| Cash | | | 501,914 | 251,381 |
| Accounts receivable | | | 44,910 | 42,438 |
| Prepaid expenses | | | 10,646 | 9,488 |
| Income taxes recoverable | | | 3,116 | - |
| Consumer loans receivable, net | | | 5,169,753 | 4,366,533 |
| Investments | | | 40,118 | 41,918 |
| Lease assets | | | 36,121 | 40,973 |
| Derivative financial assets | | | 20,656 | 60,675 |
| Deferred income tax assets, net | | | 10,474 | - |
| Property and equipment, net | | | 31,271 | 35,004 |
| Right-of-use assets, net | | | 50,698 | 54,224 |
| Intangible assets, net | | | 103,740 | 110,979 |
| Goodwill | | | 180,923 | 180,923 |
| TOTAL ASSETS | | | 6,204,340 | 5,194,536 |
| | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
| Liabilities | | | | |
| Revolving credit facility | | | (2,264) | 21,797 |
| Accounts payable and other liabilities | | | 80,597 | 156,903 |
| Income taxes payable | | | - | 24,567 |
| Dividends payable | | | 23,478 | 19,519 |
| Unearned revenue | | | 29,715 | 25,864 |
| Accrued interest payable | | | 84,675 | 49,003 |
| Deferred income tax liabilities, net | | | - | 4,184 |
| Lease liabilities | | | 57,835 | 62,164 |
| Secured borrowings | | | 91,625 | 120,335 |
| Revolving securitization warehouse facilities | | | 857,239 | 1,073,876 |
| Derivative financial liabilities | | | 30,689 | 21,466 |
| Notes payable | | | 3,719,872 | 2,413,795 |
| TOTAL LIABILITIES | | | 4,973,461 | 3,993,473 |
| | | | | |
| Shareholders' equity | | | | |
| Share capital | | | 427,498 | 438,302 |
| Contributed surplus | | | 37,464 | 26,942 |
| Accumulated other comprehensive loss | | | (32,133) | (56,938) |
| Retained earnings | | | 798,050 | 792,757 |
| TOTAL SHAREHOLDERS' EQUITY | | | 1,230,879 | 1,201,063 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | | 6,204,340 | 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 | Nine Months Ended | ||
| | September 30, | September 30, | September 30, | September 30, |
| | 2025 | 2024 | 2025 | 2024 |
| | | | | |
| REVENUE | | | | |
| Interest income | 328,045 | 282,665 | 939,359 | 817,459 |
| Lease revenue | 21,250 | 23,439 | 65,314 | 72,194 |
| Commissions earned | 79,372 | 69,703 | 221,180 | 204,634 |
| Charges and fees | 11,548 | 7,388 | 24,534 | 23,817 |
| | 440,215 | 383,195 | 1,250,387 | 1,118,104 |
| | | | | |
| OPERATING EXPENSES | | | | |
| | | | | |
| BAD DEBTS | 157,162 | 121,092 | 424,568 | 338,786 |
| | | | | |
| OTHER OPERATING EXPENSES | | | | |
| Salaries and benefits | 51,455 | 44,311 | 153,030 | 151,330 |
| Share-based compensation | 3,594 | 3,894 | 13,741 | 12,484 |
| Technology costs | 10,943 | 9,960 | 35,746 | 28,290 |
| Underwriting and collections | 9,891 | 4,944 | 25,724 | 14,835 |
| Advertising and promotion | 7,132 | 6,768 | 24,156 | 23,708 |
| Occupancy | 5,388 | 5,078 | 16,390 | 15,572 |
| Other expenses | 7,866 | 6,249 | 23,114 | 25,399 |
| | 96,269 | 81,204 | 291,901 | 271,618 |
| | | | | |
| DEPRECIATION AND AMORTIZATION | | | | |
| Depreciation of lease assets | 6,957 | 7,538 | 20,887 | 21,860 |
| Amortization of intangible assets | 5,638 | 5,693 | 16,939 | 17,420 |
| Depreciation of right-of-use assets | 5,332 | 5,342 | 15,921 | 16,096 |
| Depreciation of property and equipment | 2,666 | 2,645 | 7,928 | 7,722 |
| | 20,593 | 21,218 | 61,675 | 63,098 |
| | | | | |
| TOTAL OPERATING EXPENSES | 274,024 | 223,514 | 778,144 | 673,502 |
| | | | | |
| OPERATING INCOME | 166,191 | 159,681 | 472,243 | 444,602 |
| | | | | |
| OTHER (LOSS) INCOME | (1,800) | 4,165 | (1,800) | (2,973) |
| | | | | |
| FINANCE COSTS | (118,767) | (47,850) | (251,451) | (153,847) |
| | | | | |
| INCOME BEFORE INCOME TAXES | 45,624 | 115,996 | 218,992 | 287,782 |
| | | | | |
| INCOME TAX EXPENSE (RECOVERY) | | | | |
| Current | 18,915 | 31,288 | 82,867 | 83,622 |
| Deferred | (6,381) | (232) | (22,907) | (5,125) |
| | 12,534 | 31,056 | 59,960 | 78,497 |
| | | | | |
| NET INCOME | 33,090 | 84,940 | 159,032 | 209,285 |
| | | | | |
| BASIC EARNINGS PER SHARE | 2.01 | 4.95 | 9.59 | 12.25 |
| DILUTED EARNINGS PER SHARE | 1.98 | 4.88 | 9.47 | 12.06 |
| SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT | | | | |
| (Expressed in thousands of Canadian dollars, except earnings per share) | | | | |
| | | | | |
| | Three Months Ended September 30, 2025 | |||
| | easyfinancial | easyhome | Corporate | Total |
| | | | | |
| Revenue | | | | |
| Interest income | 316,463 | 11,582 | - | 328,045 |
| Lease revenue | - | 21,250 | - |
21,250 |
| Commissions earned | 75,383 | 3,989 | - | 79,372 |
| Charges and fees | 10,822 | 726 | - | 11,548 |
| | 402,668 | 37,547 | - | 440,215 |
| | | | | |
| Operating expenses | | | | |
| Bad debts | 150,428 | 6,734 | - | 157,162 |
| Other operating expenses | 65,330 | 13,154 | 17,785 | 96,269 |
| Depreciation and amortization | 9,953 | 8,998 | 1,642 | 20,593 |
| | 225,711 | 28,886 | 19,427 | 274,024 |
| | | | | |
| Operating income (loss) | 176,957 | 8,661 | (19,427) | 166,191 |
| | | | | |
| Other loss | | | | (1,800) |
| | | | | |
| Finance costs | | | | (118,767) |
| | | | | |
| Income before income taxes | | | | 45,624 |
| | | | | |
| Income taxes | | | | 12,534 |
| | | | | |
| Net income | | | | 33,090 |
| | | | | |
| Diluted earnings per share | | | | 1.98 |
| | | | | |
| | Three Months Ended September 30, 2024 | |||
| | easyfinancial | easyhome | Corporate | Total |
| | | | | |
| Revenue | | | | |
| Interest income | 272,755 | 9,910 | - | 282,665 |
| Lease revenue | - | 23,439 | - | 23,439 |
| Commissions earned | 66,220 | 3,483 | - | 69,703 |
| Charges and fees | 6,528 | 860 | - | 7,388 |
| | 345,503 | 37,692 | - | 383,195 |
| | | | | |
| Operating expenses | | | | |
| Bad debts | 117,391 | 3,701 | - | 121,092 |
| Other operating expenses | 45,762 | 12,924 | 22,518 | 81,204 |
| Depreciation and amortization | 9,840 | 9,690 | 1,688 | 21,218 |
| | 172,993 | 26,315 | 24,206 | 223,514 |
| | | | | |
| Operating income (loss) | 172,510 | 11,377 | (24,206) | 159,681 |
| | | | | |
| Other income | | | | 4,165 |
| | |
| | |
| Finance costs | | | | (47,850) |
| | | | | |
| Income before income taxes | | | | 115,996 |
| | | | | |
| Income taxes | | | | 31,056 |
| | | | | |
| Net income | | | | 84,940 |
| | | | | |
| Diluted earnings per share | | | | 4.88 |
| | Nine Months Ended September 30, 2025 | |||
| | easyfinancial | easyhome | Corporate | Total |
| | | | | |
| Revenue | | | | |
| Interest income | 906,167 | 33,192 | - | 939,359 |
| Lease revenue | - | 65,314 | - | 65,314 |
| Commissions earned | 209,820 | 11,360 | - | 221,180 |
| Charges and fees | 22,354 | 2,180 | - | 24,534 |
| | 1,138,341 | 112,046 | - | 1,250,387 |
| | | | | |
| Operating expenses | | | | |
| Bad debts | 407,965 | 16,603 | - | 424,568 |
| Other operating expenses | 191,034 | 40,331 | 60,536 | 291,901 |
| Depreciation and amortization | 29,643 | 27,028 | 5,004 | 61,675 |
| | 628,642 | 83,962 | 65,540 | 778,144 |
| | | | | |
| Operating income (loss) | 509,699 | 28,084 | (65,540) | 472,243 |
| | | | | |
| Other loss | | | | (1,800) |
| | | | | |
| Finance costs | | | | (251,451) |
| | | | | |
| Income before income taxes | | | | 218,992 |
| | | | | |
| Income taxes | | | | 59,960 |
| | | | | |
| Net income | | | | 159,032 |
| | | | | |
| Diluted earnings per share | | | | 9.47 |
| | | | | |
| | Nine Months Ended September 30, 2024 | |||
| | easyfinancial | easyhome | Corporate | Total |
| | | | | |
| Revenue | | | | |
| Interest income | 787,693 | 29,766 | - | 817,459 |
| Lease revenue | - | 72,194 | - | 72,194 |
| Commissions earned | 194,132 | 10,502 | - | 204,634 |
| Charges and fees | 21,245 | 2,572 | - | 23,817 |
| | 1,003,070 | 115,034 | - | 1,118,104 |
| | | | | |
| Operating expenses | | | | |
| Bad debts | 328,224 | 10,562 | - | 338,786 |
| Other operating expenses | 153,038 | 41,488 | 77,092 | 271,618 |
| Depreciation and amortization | 29,587 | 28,399 | 5,112 | 63,098 |
| | 510,849 | 80,449 | 82,204 | 673,502 |
| | | | | |
| Operating income (loss) | 492,221 | 34,585 | (82,204) | 444,602 |
| | | | | |
| Other loss | | | | (2,973) |
| | | | | |
| | | | | (153,847) |
| | | | | |
| Income before income taxes | | | | 287,782 |
| | | | | |
| | | | | 78,497 |
| | | | | |
| Net income | | | | 209,285 |
| | | | | |
| Diluted earnings per share | | | | 12.06 |
| SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS | | | | |
| (Expressed in thousands of Canadian dollars, except earnings per share and percentages) | | | ||
| | | | | |
| | Three Months Ended | | | |
| | September 30, | September 30, | Variance | Variance |
| 2025 | 2024 | $ / bps | % change | |
| | | | | |
| Summary Financial Results | | | | |
| Revenue | 440,215 | 383,195 | 57,020 | 14.9 % |
| Bad debts | 157,162 | 121,092 | 36,070 | 29.8 % |
| Other operating expenses | 96,269 | 81,204 | 15,065 | 18.6 % |
| EBITDA1 | 178,027 | 177,526 | 501 | 0.3 % |
| EBITDA margin1 | 40.4 % | 46.3 % | (590 bps) | (12.7 %) |
| Depreciation and amortization | 20,593 | 21,218 | (625) | (2.9 %) |
| Operating income | 166,191 | 159,681 | 6,510 | 4.1 % |
| Operating margin | 37.8 % | 41.7 % | (390 bps) | (9.4 %) |
| Other (loss) income | (1,800) | 4,165 | (5,965) | (143.2 %) |
| Finance costs | 118,767 | 47,850 | 70,917 | 148.2 % |
| Effective income tax rate | 27.5 % | 26.8 % | 70 bps | 2.6 % |
| Net income | 33,090 | 84,940 | (51,850) | (61.0 %) |
| Diluted earnings per share | 1.98 | 4.88 | (2.90) | (59.4 %) |
| Return on receivables | 2.5 % | 7.9 % | (540 bps) | (68.4 %) |
| Return on assets | 2.2 % | 7.1 % | (490 bps) | (69.0 %) |
| Return on equity | 10.8 % | 29.1 % | (1,830 bps) | (62.9 %) |
| Return on tangible common equity1 | 14.4 % | 37.8 % | (2,340 bps) | (61.9 %) |
| | | | | |
| Adjusted Financial Results 1 | | | | |
| Other operating expenses | 102,961 | 88,640 | 14,321 | 16.2 % |
| Efficiency ratio | 23.4 % | 23.1 % | 30 bps | 1.3 % |
| Operating income | 169,731 | 163,058 | 6,673 | 4.1 % |
| Operating margin | 38.6 % | 42.6 % | (400 bps) | (9.3 %) |
| Net income | 68,926 | 75,123 | (6,197) | (8.2 %) |
| Diluted earnings per share | 4.12 | 4.32 | (0.20) | (4.6 %) |
| Return on receivables | 5.2 % | 7.0 % | (180 bps) | (25.7 %) |
| Return on assets | 4.7 % | 6.3 % | (160 bps) | (25.4 %) |
| Return on equity | 22.6 % | 25.7 % | (310 bps) | (12.1 %) |
| Return on tangible common equity | 28.0 % | 32.5 % | (450 bps) | (13.8 %) |
| | | | | |
| Key Performance Indicators | | | | |
| | | | | |
| Segment Financials | | | | |
| easyfinancial revenue | 402,668 | 345,503 | 57,165 | 16.5 % |
| easyfinancial operating margin | 43.9 % | 49.9 % | (600 bps) | (12.0 %) |
| easyhome revenue | 37,547 | 37,692 | (145) | (0.4 %) |
| easyhome operating margin | 23.1 % | 30.2 % | (710 bps) | (23.5 %) |
| | | | | |
| Portfolio Indicators | | | | |
| Gross consumer loans receivable | 5,435,477 | 4,393,353 | 1,042,124 | 23.7 % |
| Growth in consumer loans receivable | 335,751 | 255,198 | 80,553 | 31.6 % |
| Gross loan originations | 945,730 | 839,446 | 106,284 | 12.7 % |
| Total yield on consumer loans (including ancillary products)1 | 31.4 % | 33.2 % | (180 bps) | (5.4 %) |
| Net charge offs as a percentage of average gross consumer loans receivable | 8.9 % | 9.2 % | (30 bps) | (3.3 %) |
| Free cash flows from operations before net growth in gross consumer loans receivable1 | 141,575 | 126,064 | 15,511 | 12.3 % |
| Potential monthly leasing revenue1 | 6,292 | 6,989 | (697) | (10.0 %) |
| 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. |
| | Nine Months Ended | | | |
| | September 30, | September 30, | Variance | Variance |
| 2025 | 2024 | $ / bps | % change | |
| | | | | |
| Summary Financial Results | | | | |
| Revenue | 1,250,387 | 1,118,104 | 132,283 | 11.8 % |
| Bad debts | 424,568 | 338,786 | 85,782 | 25.3 % |
| Other operating expenses | 291,901 | 271,618 | 20,283 | 7.5 % |
| EBITDA1 | 511,231 | 482,867 | 28,364 | 5.9 % |
| EBITDA margin1 | 40.9 % | 43.2 % | (230 bps) | (5.3 %) |
| Depreciation and amortization | 61,675 | 63,098 | (1,423) | (2.3 %) |
| Operating income | 472,243 | 444,602 | 27,641 | 6.2 % |
| Operating margin | 37.8 % | 39.8 % | (200 bps) | (5.0 %) |
| Other loss | (1,800) | (2,973) | 1,173 | 39.5 % |
| Finance costs | 251,451 | 153,847 | 97,604 | 63.4 % |
| Effective income tax rate | 27.4 % | 27.3 % | 10 bps | 0.4 % |
| Net income | 159,032 | 209,285 | (50,253) | (24.0 %) |
| Diluted earnings per share | 9.47 | 12.06 | (2.59) | (21.5 %) |
| Return on receivables | 4.2 % | 6.9 % | (270 bps) | (39.1 %) |
| Return on assets | 3.8 % | 6.2 % | (240 bps) | (38.7 %) |
| Return on equity | 17.7 % | 24.8 % | (710 bps) | (28.6 %) |
| Return on tangible common equity1 | 23.1 % | 33.0 % | (990 bps) | (30.0 %) |
| | | | | |
| Adjusted Financial Results 1 | | | | |
| Other operating expenses | 312,339 | 288,132 | 24,207 | 8.4 % |
| Efficiency ratio | 25.0 % | 25.8 % | (80 bps) | (3.1 %) |
| Operating income | 482,517 | 459,773 | 22,744 | 4.9 % |
| Operating margin | 38.6 % | 41.1 % | (250 bps) | (6.1 %) |
| Net income | 197,422 | 212,743 | (15,321) | (7.2 %) |
| Diluted earnings per share | 11.76 | 12.26 | (0.50) | (4.1 %) |
| Return on receivables | 5.3 % | 7.0 % | (170 bps) | (24.3 %) |
| Return on assets | 4.7 % | 6.3 % | (160 bps) | (25.4 %) |
| Return on equity | 22.0 % | 25.2 % | (320 bps) | (12.7 %) |
| Return on tangible common equity | 27.4 % | 32.4 % | (500 bps) | (15.4 %) |
| | | | | |
| Key Performance Indicators | | | | |
| | | | | |
| Segment Financials | | | | |
| easyfinancial revenue | 1,138,341 | 1,003,070 | 135,271 | 13.5 % |
| easyfinancial operating margin | 44.8 % | 49.1 % | (430 bps) | (8.8 %) |
| easyhome revenue | 112,046 | 115,034 | (2,988) | (2.6 %) |
| easyhome operating margin | 25.1 % | 30.1 % | (500 bps) | (16.6 %) |
| | | | | |
| Portfolio Indicators | | | | |
| Gross consumer loans receivable | 5,435,477 | 4,393,353 | 1,042,124 | 23.7 % |
| Growth in consumer loans receivable | 839,362 | 748,151 | 91,211 | 12.2 % |
| Gross loan originations | 2,526,218 | 2,352,538 | 173,680 | 7.4 % |
| Total yield on consumer loans (including ancillary products)1 | 31.5 % | 34.3 % | (280 bps) | (8.2 %) |
| 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 receivable1 | 207,563 | 296,290 | (88,727) | (29.9 %) |
| Potential monthly leasing revenue1 | 6,292 | 6,989 | (697) | (10.0 %) |
| 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" section on page 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2025. Items used to calculate adjusted net income and adjusted earnings per share for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | Nine Months Ended | ||
| ($ in 000's except earnings per share) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 |
| | | | | |
| Net income as stated | 33,090 | 84,940 | 159,032 | 209,285 |
| | | | | |
| Impact of adjusting items | | | | |
| Other operating expenses | | | | |
| Integration costs1 | 265 | 91 | 449 | 405 |
| Advisory costs3 | - | 11 | - | 4,941 |
| Depreciation and amortization | | | | |
| Amortization of acquired intangible assets2 | 3,275 | 3,275 | 9,825 | 9,825 |
| Other loss (income) 4 | 1,800 | (4,165) | 1,800 | 2,973 |
| Finance costs | | | | |
| Fair value change on prepayment options related to Notes Payable5 | 43,092 | (11,819) | 39,832 | (13,977) |
| Total pre-tax impact of adjusting items | 48,432 | (12,607) | 51,906 | 4,167 |
| Income tax impact of above adjusting items | (12,596) | 2,790 | (13,516) | (709) |
| After-tax impact of adjusting items | 35,836 | (9,817) | 38,390 | 3,458 |
| | | | | |
| Adjusted net income | 68,926 | 75,123 | 197,422 | 212,743 |
| | | | | |
| Weighted average number of diluted shares outstanding | 16,739 | 17,401 | 16,788 | 17,351 |
| | | | | |
| Diluted earnings per share as stated | 1.98 | 4.88 | 9.47 | 12.06 |
| Per share impact of adjusting items | 2.14 | (0.56) | 2.29 | 0.20 |
| Adjusted diluted earnings per share | 4.12 | 4.32 | 11.76 | 12.26 |
| 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 $131 million intangible asset related to the acquisition of LendCare, with an estimated useful life of ten years. |
| Adjusting items related to the advisory costs |
| 3 Advisory costs for the three and nine-month periods ended September 30, 2024, were related to non-recurring advisory, consulting, and legal costs. |
| Adjusting item related to other income (loss) |
| 4 For the three and nine-month periods ended September 30, 2025, and 2024, net investment income (loss) was due to fair value changes in the Company's investments. |
| Adjusting item related to prepayment options embedded in the Notes Payable |
| 5 For the three and nine-month periods ended September 30, 2025, and 2024, the Company recognized a fair value change on the prepayment options related to Notes Payable. |
Adjusted Other Operating Expenses and Efficiency Ratio
Adjusted other operating expenses is a non-IFRS measure and efficiency ratio is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2025. Items used to calculate adjusted other operating expenses and efficiency ratio for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | Nine Months Ended | ||
| ($ in 000's except earnings per share) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 |
| | | | | |
| Other operating expenses as stated | 96,269 | 81,204 | 291,901 | 271,618 |
| | | | | |
| Impact of adjusting items 1 | | | | |
| Other operating expenses | | | | |
| Integration costs | (265) | (91) | (449) | (405) |
| Advisory costs | - | (11) | - | (4,941) |
| Depreciation and amortization | | | | |
| Depreciation of lease assets | 6,957 | 7,538 | 20,887 | 21,860 |
| Total impact of adjusting items | 6,692 | 7,436 | 20,438 | 16,514 |
| | | | | |
| Adjusted other operating expenses | 102,961 | 88,640 | 312,339 | 288,132 |
| | | | | |
| Total revenue | 440,215 | 383,195 | 1,250,387 | 1,118,104 |
| | | | | |
| Efficiency ratio | 23.4 % | 23.1 % | 25.0 % | 25.8 % |
| 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 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2025. Items used to calculate adjusted operating income and adjusted operating margins for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| easyfinancial | | | | |
| Operating income | 176,957 | 176,957 | 172,510 | 172,510 |
| Divided by revenue | 402,668 | 402,668 | 345,503 | 345,503 |
| | | | | |
| easyfinancial operating margin | 43.9 % | 43.9 % | 49.9 % | 49.9 % |
| | | | | |
| easyhome | | | | |
| Operating income | 8,661 | 8,661 | 11,377 | 11,377 |
| Divided by revenue | 37,547 | 37,547 | 37,692 | 37,692 |
| | | | | |
| easyhome operating margin | 23.1 % | 23.1 % | 30.2 % | 30.2 % |
| | | | | |
| Total | | | | |
| Operating income | 166,191 | 166,191 | 159,681 | 159,681 |
| Other operating expenses 1 | | | | |
| Integration costs | - | 265 | - | 91 |
| Advisory costs | - | - | - | 11 |
| Depreciation and amortization 1 | | | | |
| Amortization of acquired intangible assets | - | 3,275 | - | 3,275 |
| Adjusted operating income | 166,191 | 169,731 | 159,681 | 163,058 |
| | | | | |
| Divided by revenue | 440,215 | 440,215 | 383,195 | 383,195 |
| | | | | |
| Total operating margin | 37.8 % | 38.6 % | 41.7 % | 42.6 % |
| 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
| | Nine Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| easyfinancial | | | | |
| Operating income | 509,699 | 509,699 | 492,221 | 492,221 |
| Divided by revenue | 1,138,341 | 1,138,341 | 1,003,070 | 1,003,070 |
| | | | | |
| easyfinancial operating margin | 44.8 % | 44.8 % | 49.1 % | 49.1 % |
| | | | | |
| easyhome | | | | |
| Operating income | 28,084 | 28,084 | 34,585 | 34,585 |
| Divided by revenue | 112,046 | 112,046 | 115,034 | 115,034 |
| | | | | |
| easyhome operating margin | 25.1 % | 25.1 % | 30.1 % | 30.1 % |
| | | | | |
| Total | | | | |
| Operating income | 472,243 | 472,243 | 444,602 | 444,602 |
| Other operating expenses 1 | | | | |
| Integration costs | - | 449 | - | 405 |
| Advisory costs | - | - | - | 4,941 |
| Depreciation and amortization 1 | | | | |
| Amortization of acquired intangible assets | - | 9,825 | - | 9,825 |
| Adjusted operating income | 472,243 | 482,517 | 444,602 | 459,773 |
| | | | | |
| Divided by revenue | 1,250,387 | 1,250,387 | 1,118,104 | 1,118,104 |
| | | | | |
| Total operating margin | 37.8 % | 38.6 % | 39.8 % | 41.1 % |
| 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 and EBITDA margin is a non-IFRS ratio. Refer to "Key Performance Indicators and Non-IFRS Measures" section on page 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2025. Items used to calculate EBITDA and EBITDA margin for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | Nine Months Ended | ||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 |
| | | | | |
| Net income as stated | 33,090 | 84,940 | 159,032 | 209,285 |
| | | | | |
| Finance cost | 118,767 | 47,850 | 251,451 | 153,847 |
| Income tax expense | 12,534 | 31,056 | 59,960 | 78,497 |
| Depreciation and amortization | 20,593 | 21,218 | 61,675 | 63,098 |
| Depreciation of lease assets | (6,957) | (7,538) | (20,887) | (21,860) |
| EBITDA | 178,027 | 177,526 | 511,231 | 482,867 |
| | | | | |
| Divided by revenue | 440,215 | 383,195 | 1,250,387 | 1,118,104 |
| | | | | |
| EBITDA margin | 40.4 % | 46.3 % | 40.9 % | 43.2 % |
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 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2025. Items used to calculate free cash flow from operations before net growth in gross consumer loans receivable for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | Nine Months Ended | ||
| | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 |
| | | | | |
| Cash used in operating activities | (194,176) | (129,134) | (631,799) | (451,861) |
| | | | | |
| Net growth in gross consumer loans receivable during the period | 335,751 | 255,198 | 839,362 | 748,151 |
| | | | | |
| Free cash flows from operations before net growth in gross consumer loans receivable | 141,575 | 126,064 | 207,563 | 296,290 |
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 31 of the Company's MD&A for the three and nine-month period ended September 30, 2025. Items used to calculate adjusted return on assets for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| Net income as stated | 33,090 | 33,090 | 84,940 | 84,940 |
| After-tax impact of adjusting items1 | - | 35,836 | - | (9,817) |
| Adjusted net income | 33,090 | 68,926 | 84,940 | 75,123 |
| | | | | |
| Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 |
| | | | | |
| Divided by average gross consumer loans receivable | 5,323,728 | 5,323,728 | 4,314,520 | 4,314,520 |
| | | | | |
| Return on receivables | 2.5 % | 5.2 % | 7.9 % | 7.0 % |
1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section.
| | Nine Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| Net income as stated | 159,032 | 159,032 | 209,285 | 209,285 |
| After-tax impact of adjusting items1 | - | 38,390 | - | 3,458 |
| Adjusted net income | 159,032 | 197,422 | 209,285 | 212,743 |
| | | | | |
| Multiplied by number of periods in a year | X 4/3 | X 4/3 | X 4/3 | X 4/3 |
| | | | | |
| Divided by average gross consumer loans receivable | 5,003,743 | 5,003,743 | 4,044,904 | 4,044,904 |
| | | | | |
| Return on receivables | 4.2 % | 5.3 % | 6.9 % | 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 31 of the Company's MD&A for the three and ninw-month period ended September 30, 2025. Items used to calculate adjusted return on assets for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| Net income as stated | 33,090 | 33,090 | 84,940 | 84,940 |
| After-tax impact of adjusting items1 | - | 35,836 | - | (9,817) |
| Adjusted net income | 33,090 | 68,926 | 84,940 | 75,123 |
| | | | | |
| Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 |
| | | | | |
| Divided by average total assets for the period | 5,915,364 | 5,915,364 | 4,758,955 | 4,758,955 |
| | | | | |
| Return on assets | 2.2 % | 4.7 % | 7.1 % | 6.3 % |
| 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
| | Nine Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| Net income as stated | 159,032 | 159,032 | 209,285 | 209,285 |
| After-tax impact of adjusting items1 | - | 38,390 | - | 3,458 |
| Adjusted net income | 159,032 | 197,422 | 209,285 | 212,743 |
| | | | | |
| Multiplied by number of periods in a year | X 4/3 | X 4/3 | X 4/3 | X 4/3 |
| | | | | |
| Divided by average total assets for the period | 5,588,698 | 5,588,698 | 4,524,526 | 4,524,526 |
| | | | | |
| Return on assets | 3.8 % | 4.7 % | 6.2 % | 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 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2025. Items used to calculate adjusted return on equity for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| Net income as stated | 33,090 | 33,090 | 84,940 | 84,940 |
| After-tax impact of adjusting items1 | - | 35,836 | - | (9,817) |
| Adjusted net income | 33,090 | 68,926 | 84,940 | 75,123 |
| | | | | |
| Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 |
| | | | | |
| Divided by average shareholders' equity for the period | 1,221,594 | 1,221,594 | 1,168,802 | 1,168,802 |
| | | | | |
| Return on equity | 10.8 % | 22.6 % | 29.1 % | 25.7 % |
| 1 For explanation of adjusting items, refer to the corresponding "Adjusted Net Income and Adjusted Diluted Earnings Per Share" section. |
| | Nine Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| Net income as stated | 159,032 | 159,032 | 209,285 | 209,285 |
| After-tax impact of adjusting items1 | - | 38,390 | - | 3,458 |
| Adjusted net income | 159,032 | 197,422 | 209,285 | 212,743 |
| | | | | |
| Multiplied by number of periods in a year | X 4/3 | X 4/3 | X 4/3 | X 4/3 |
| | | | | |
| Divided by average shareholders' equity for the period | 1,199,167 | 1,199,167 | 1,123,732 | 1,123,732 |
| | | | | |
| Return on equity | 17.7 % | 22.0 % | 24.8 % | 25.2 % |
| 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 31 of the Company's MD&A for the three and nine-month periods ended September 30, 2025. Items used to calculate reported and adjusted return on tangible common equity for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| Net income as stated | 33,090 | 33,090 | 84,940 | 84,940 |
| 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 | 35,497 | 35,497 | 87,347 | 83,347 |
| | | | | |
| Impact of adjusting items1 | | | | |
| Other operating expenses | | | | |
| Integration costs | - | 265 | - | 91 |
| Advisory costs | - | - | - | 11 |
| Other loss (income) | - | 1,800 | - | (4,165) |
| Finance costs | | | | |
| Fair value change on prepayment options related to Notes Payable | - | 43,092 | - | (11,819) |
| Total pre-tax impact of adjusting items | - | 45,157 | - | (15,882) |
| Income tax impact of above adjusting items | - | (11,728) | - | 3,658 |
| After-tax impact of adjusting items | - | 33,429 | - | (12,224) |
| | | | | |
| Adjusted net income | 35,497 | 68,926 | 87,347 | 75,123 |
| | | | | |
| Multiplied by number of periods in a year | X 4 | X 4 | X 4 | X 4 |
| | | | | |
| Average shareholders' equity | 1,221,594 | 1,221,594 | 1,168,802 | 1,168,802 |
| Average goodwill | (180,923) | (180,923) | (180,923) | (180,923) |
| Average acquired intangible assets2 | (74,779) | (74,779) | (87,879) | (87,879) |
| Average related deferred tax liabilities | 19,816 | 19,816 | 23,288 | 23,288 |
| Divided by average tangible common equity | 985,708 | 985,708 | 923,288 | 923,288 |
| | | | | |
| Return on tangible common equity | 14.4 % | 28.0 % | 37.8 % | 32.5 % |
| 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. |
| | Nine Months Ended | |||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2025 (adjusted) | September 30, 2024 | September 30, 2024 (adjusted) |
| | | | | |
| Net income as stated | 159,032 | 159,032 | 209,285 | 209,285 |
| Amortization of acquired intangible assets | 9,825 | 9,825 | 9,825 | 9,825 |
| Income tax impact of the above item | (2,604) | (2,604) | (2,604) | (2,604) |
| Net income before amortization of acquired intangible assets, net of income tax | 166,253 | 166,253 | 216,506 | 216,506 |
| | | | | |
| Impact of adjusting items1 | | | | |
| Other operating expenses | | | | |
| Integration costs | - | 449 | - | 405 |
| Advisory costs | - | - | - | 4,941 |
| Other loss | - | 1,800 | - | 2,973 |
| Finance costs | | | | |
| Fair value change on prepayment options related to Notes Payable | - | 39,832 | - | (13,977) |
| Total pre-tax impact of adjusting items | - | 42,081 | - | (5,658) |
| Income tax impact of above adjusting items | - | (10,912) | - | 1,895 |
| After-tax impact of adjusting items | - | 31,170 | - | (3,763) |
| | | | | |
| Adjusted net income | 166,253 | 197,422 | 216,506 | 212,743 |
| | | | | |
| Multiplied by number of periods in a year | X 4/3 | X 4/3 | X 4/3 | X 4/3 |
| | | | | |
| Average shareholders' equity | 1,199,167 | 1,199,167 | 1,123,732 | 1,123,732 |
| Average goodwill | (180,923) | (180,923) | (180,923) | (180,923) |
| Average acquired intangible assets2 | (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 | 960,874 | 960,874 | 875,811 | 875,811 |
| | | | | |
| Return on tangible common equity | 23.1 % | 27.4 % | 33.0 % | 32.4 % |
| 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. |
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 September 30, 2025 and 2024 include those indicated in the chart below:
| ($ in 000's) | Three Months Ended | |
| September 30, 2025 | September 30, 2024 | |
| Total company revenue | 440,215 | 383,195 |
| Less: easyfinancial revenue | (402,668) | (345,503) |
| Less: leasing revenue | (22,490) | (24,860) |
| easyhome financial revenue | 15,057 | 12,832 |
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 20 of the Company's MD&A for the three and nine-month period ended September 30, 2025. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for the three and nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | Nine Months Ended | ||
| ($ in 000's except percentages) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 |
| | | | | |
| Total Company revenue | 440,215 | 383,195 | 1,250,387 | 1,118,104 |
| Less: Leasing revenue | (22,490) | (24,860) | (69,064) | (76,517) |
| Financial revenue | 417,725 | 358,335 | 1,181,323 | 1,041,587 |
| | | | | |
| Multiplied by number of periods in a year | X 4 | X 4 | X 4/3 | X 4/3 |
| | | | | |
| Divided by average gross consumer loans receivable | 5,323,728 | 4,314,520 | 5,003,743 | 4,044,904 |
| | | | | |
| Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized) | 31.4 % | 33.2 % | 31.5 % | 34.3 % |
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 20 of the Company's MD&A for the three and nine-month period ended September 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 nine-month periods ended September 30, 2025 and 2024 include those indicated in the chart below:
| | Three Months Ended | Nine Months Ended | ||
| ($ in 000's) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 |
| | | | | |
| Gross loan originations | 945,730 | 839,446 | 2,526,218 | 2,352,538 |
| | | | | |
| Loan originations to new customers | 578,810 | 457,617 | 1,568,653 | 1,272,418 |
| | | | | |
| Loan originations to existing customers | 366,920 | 381,829 | 957,565 | 1,080,120 |
| Less: Proceeds applied to repay existing loans | (149,277) | (203,608) | (375,432) | (559,348) |
| Net advance to existing customers | 217,643 | 178,221 | 582,133 | 520,772 |
| | | | | |
| Net principal written | 796,453 | 635,838 | 2,150,786 | 1,793,190 |
| | | | | |
| Percentage net advances to new customers | 72.67 % | 71.97 % | 72.93 % | 70.96 % |
| | | | | |
Debt to Adjusted Tangible Equity
Debt to adjusted tangible equity is a capital management measure. Refer to "Financial Condition" section on page 43 of the Company's MD&A for the three and nine-month periods ended September 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
