goeasy takes $178 million LendCare hit, suspends dividend amid credit strain

The latest announcement is out from goeasy ( (TSE:GSY) ).

goeasy Ltd. warned of a substantial deterioration in credit performance at its LendCare unit, flagging an incremental Q4 2025 charge-off of about $178 million on a $5.5 billion loan book, an additional $55 million write-down of interest and fees, and a higher allowance for credit losses. As a result, total quarterly net charge-offs are expected to reach roughly $331 million, the company’s 2025 net charge-off rate is projected at 12.9%, and management now sees annual net charge-offs rising to the mid-teens in 2026 before easing in 2027, prompting the withdrawal of its Q4 2025 outlook and three-year forecast.

goeasy said the credit hit will likely cause breaches of certain financial covenants on its syndicated credit facility, securitization facilities and receivables purchase arrangements, but it has secured an accommodation agreement with its bank group and is negotiating amendments and waivers while maintaining compliance on its senior unsecured notes and sufficient liquidity. Alongside confirming Felix Wu as permanent CFO, management unveiled a six-point plan that shifts growth toward easyfinancial’s direct-to-consumer lending, reduces LendCare auto and powersports originations, integrates operations, cuts about $30 million in annual costs, overhauls LendCare leadership and suspends both share repurchases and the quarterly dividend, signalling a reset of capital allocation and risk controls to stabilize performance.

The most recent analyst rating on (TSE:GSY) stock is a Buy with a C$170.00 price target. To see the full list of analyst forecasts on goeasy stock, see the TSE:GSY Stock Forecast page.

Spark’s Take on TSE:GSY Stock

According to Spark, TipRanks’ AI Analyst, TSE:GSY is a Neutral.

goeasy’s overall stock score is driven by strong valuation metrics and positive earnings call highlights, such as record revenue and loan book growth. However, financial performance concerns, including high leverage and negative cash flows, along with bearish technical indicators, weigh on the score.

To see Spark’s full report on TSE:GSY stock, click here.

More about goeasy

goeasy Ltd. is a Canadian non-prime consumer lender focused on serving borrowers who have limited access to traditional credit. Through its easyfinancial and LendCare businesses, the company offers unsecured personal loans, home equity lending and merchant-originated financing, particularly in auto and powersports markets. Its strategy emphasizes direct-to-consumer lending while managing elevated credit risk in specialized segments.

Average Trading Volume: 140,440

Technical Sentiment Signal: Hold

Current Market Cap: C$1.85B

For an in-depth examination of GSY stock, go to TipRanks’ Overview page.