GSY — Q1-26 First Look (Negative): Board Implements Poison Pill - Earnings Miss

研报英文原文证据摘录

GSY — Q1-26 First Look (Negative): Board Implements Poison Pill - Earnings Miss

Canada | Diversified Financials

goeasy Ltd EquityMayResearch12, 2026

FLASH NOTEGSY — Q1-26 First Look (Negative): Board

RATING HOLDImplements Poison Pill - Earnings Miss

PRICE C$30.99^

The first quater was far from disastrous for GSY, but earnings did miss

expectations and guidance remains tepid for Q2 meaning that investors will PRICE TARGET | % TO PT C$33.00 | +6%

need to wait until the second half before seeing an inflection. A poison pill 52W HIGH-LOW C$216.50 - C$30.00

enacted potentially limits immediate upside from a bid. That said, signs of FLOAT (%) | ADV MM (USD) 76.9% | 9.31

stabilization are evident but GSY will need to continue to weather the dual MARKET CAP C$496.6M | $363.4M

storms of running down its LendCare portfolio as well as a weakening economic TICKER GSY CN ^Prior trading day's closing price unless otherwise

outlook. noted.

No Covenant Breach but Loan Guidance Still Down

goeasy reported Q1-26 core EPS loss of $1.90 which was worse than consensus loss of $1.43

(which was even dragged down by our pessimistic forecast loss of $4.97). After hitting targets for

gross loans, net charge-offs and yield, management updated guidance for the second quarter. While

charge-offs are expected to decline and yields could see expansion, gross loans are expected to

decline by another 6.7% sequentially after falling 2.7% from the fourth quarter. That said, growth is

expected to resume in the second half of 2026, coincident with ongoing improvements in charge-

offs and yield.

Net charge-offs in the quarter remained elevated, coming in at 17.8%, with LendCare the main

culprit, at 26.4% (against 7.1% a year ago). However, we note that all the other lines are notably