goeasy (GSY) Q2 2026 earnings summary

Executive summary

• Adjusted diluted EPS was $1.02 in Q2 2026, down year-over-year but improved from a loss in Q1 2026, reflecting operational discipline and a focus on liquidity and credit performance.

• Gross consumer loans receivable ended at $5.00 billion, down 2% year-over-year and 6.8% sequentially, as originations were significantly reduced to strengthen liquidity.

• Portfolio mix shifted toward direct-to-consumer loans, now 60–60.3% of the total, reflecting a deliberate repositioning away from merchant-originated loans.

• Leadership changes included the appointment of a new COO and the announced departure of the Chief Risk Officer.

• The six-point plan to stabilize and reposition the business is progressing, with improvements in credit performance and operational efficiency.

Financial highlights

• Quarterly revenue declined 9.6–10% year-over-year to $390 million due to lower originations and yield.

• Net charge-off rate was 16.7%, up sharply year-over-year but improved sequentially from Q1 2026.

• Adjusted net income was $16.8 million, down 77.1% year-over-year; adjusted operating income was $102.9 million, down 39.9–40.6% year-over-year.

• Operating expenses fell 9.3% year-over-year, mainly from lower marketing and compensation costs.

• Cash provided by operations before net principal written was $585 million, up from $489 million a year ago.

Outlook and guidance

• Q3 2026 guidance: gross consumer loans receivable $4.8–5.0 billion, yield 26.5–28%, and net charge-offs 14.5–16%.

• Full-year 2026: gross consumer loans receivable expected to remain consistent with Q2 levels; total yield to be broadly in line with first half; net charge-offs to average in the mid-teens.

• Originations expected to increase in Q3, focused on direct-to-consumer, but growth moderated due to higher loss rates and macroeconomic caution.

• Management remains focused on liquidity, credit performance, and capital structure alignment.