Goeasy (OTC) ( (EHMEF) ) has released its Q1 earnings. Here is a breakdown of the information Goeasy (OTC) presented to its investors.
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Goeasy Ltd., a prominent Canadian non-prime lender, offers a comprehensive range of financial services through its easyhome, easyfinancial, and LendCare brands, catering to Canadians with non-prime credit. In its first-quarter report for 2025, Goeasy Ltd. highlighted a significant increase in its loan portfolio, reaching $4.79 billion, a 24% rise from the previous year. Revenue grew by 10% to $392 million, while the net charge-off rate improved slightly to 8.9%. However, the company experienced a decline in adjusted diluted earnings per share, which fell by 8% to $3.53.
Key financial metrics from the report include a 1% decrease in loan originations to $677 million, despite a 10% increase in credit applications. The company’s operating income rose to $145 million, a 5% increase, although the operating margin slightly decreased. The net income for the quarter was $39.4 million, down from $58.9 million the previous year, primarily due to a decline in total yield on consumer loans and an increase in credit loss allowances.
Goeasy’s easyfinancial segment saw a 12% revenue increase to $355 million, with a notable 30% rise in automotive financing originations. Meanwhile, easyhome’s revenue slightly declined to $37 million. The company also reported a strong balance sheet, with total assets increasing by 21% to $5.33 billion and a funding capacity of $2 billion.
Looking ahead, Goeasy remains optimistic about its growth prospects, supported by a robust balance sheet and liquidity position. The company plans to continue optimizing its product offerings and pricing strategies to address yield challenges and aims to meet its forecasted metrics for 2025.