goeasy (GSY) AI Stock Analysis

goeasy

(TSX:GSY)

Select Model

Rating:48Neutral

Price Target:CAD 45.00▼(-3.70% Downside)

Action:reiterated

Date:08/11/26

The score is held down primarily by pressured financial performance (TTM revenue contraction, losses, and very high leverage). The earnings call adds a mixed picture—liquidity and credit trends are improving sequentially, but profitability, controls remediation, and suspended capital returns remain key risks. Technicals are broadly neutral, while valuation support from the headline dividend yield is tempered by losses and the stated dividend suspension.

Positive Factors

Improved operating cash flowA sharp TTM rebound to positive operating and free cash flow materially improves goeasy's ability to fund operations and loss absorption without immediate external financing. Durable cash generation supports remediation, working capital and measured originations, reducing near-term liquidity stress while consistency risk remains.

Negative Factors

High leverageVery high leverage materially constrains goeasy's financial flexibility, increasing sensitivity to funding cost moves and credit deterioration. With debt levels large relative to equity, the firm faces higher refinancing, covenant and solvency risk during downturns, limiting ability to absorb losses or pursue growth without deleveraging.

goeasy (GSY) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 504.12M
Dividend Yield: 13.17%
Average Volume (3M): 78.07K
Price to Earnings (P/E): -2.1
Beta (1Y): 1.53
Revenue Growth: 5.44%
EPS Growth: -222.24%
Country: Canada
Employees: 2,300
Sector: Financial
Sector Strength: 68
Industry: Financial - Credit Services

goeasy Business Overview & Revenue Model

Company Description

goeasy Ltd. provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. It operates through two segments, Easyfinancial and Easyhome. The company offers unsecured and secured installm...

How the Company Makes Money

goeasy makes money primarily by originating and servicing consumer loans and earning finance-related income over the life of those loans. The company’s key revenue streams include: (1) Interest and finance charges on installment loans (primarily unde...

goeasy Earnings Call Summary

Earnings Call Date:Aug 05, 2026(Q2-2026)|% Change Since:-0.49%|Next Earnings Date:May 11, 2026

Earnings Call SentimentNeutral

The call conveyed a balanced message: management executed decisive actions that materially strengthened liquidity and improved several quarter-over-quarter credit metrics, while also acknowledging significant year-over-year revenue and credit challenges, an outstanding material weakness remediation, and a continued need to rebuild earnings momentum. The company is stabilizing the business through originations discipline, portfolio mix shift toward direct-to-consumer, and operational improvements, but near-term profitability and yields remain under pressure and capital returns are suspended.

Positive Updates

Quarterly Adjusted Earnings Per Share Turnaround

Delivered adjusted diluted EPS of CAD 1.02 in Q2 2026, a sequential improvement from an adjusted diluted loss per share of CAD (1.90) in Q1 2026.

Negative Updates

Year-over-Year Revenue Decline

Quarterly revenue declined 9.6% YoY to CAD 390 million, driven by a 2% YoY contraction in the consumer loan portfolio, lower yields, and reduced originations.

Company Guidance

Management provided a Q3 2026 outlook calling for ending gross consumer loans receivable of CAD 4.8–5.0 billion, total yield on consumer loans of 26.5%–28.0%, and net charge‑offs of 14.5%–16.0%; they also refreshed full‑year 2026 guidance, expecting year‑end gross consumer loans receivable broadly consistent with Q2 ending (about CAD 5.0 billion), total yields (including ancillary) broadly consistent with the first half (Q2 yield was 28.3%), and net charge‑offs to average in the mid‑teens with continued improvement through the back half of the year. Management said originations will ramp from Q2 levels but remain calibrated to profitable returns, liquidity was strengthened (unrestricted cash plus unused contractual borrowing capacity CAD 1.37 billion and RCF access restored July 1), the allowance for credit losses was CAD 499.5 million at quarter‑end, and dividends and share repurchases remain suspended.

goeasy Financial Statement Overview

Summary

Mixed fundamentals driven by recent stress: the income statement shows a sharp TTM revenue contraction and a swing to deeper losses, while the balance sheet is heavily levered (debt-to-equity rising to ~5.4–5.6x) with negative ROE. The main offset is a notable TTM rebound to positive operating/free cash flow, but overall financial risk remains elevated.

Income Statement

44Neutral

Balance Sheet

32Negative

Cash Flow

50Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.69B	1.70B	1.52B	1.25B	1.02B	826.72M
Gross Profit	1.32B	1.17B	1.05B	851.59M	708.26M	561.49M
EBITDA	700.41M	1.02B	918.96M	740.46M	603.86M	472.32M
Net Income	-341.44M	-178.37M	283.11M	247.90M	140.16M	244.94M
Balance Sheet
Total Assets	5.48B	5.76B	5.19B	4.16B	3.30B	2.60B
Cash, Cash Equivalents and Short-Term Investments	312.10M	99.46M	251.38M	120.38M	32.45M	82.88M
Total Debt	4.45B	4.63B	3.69B	2.89B	2.45B	1.91B
Total Liabilities	4.69B	4.91B	3.99B	3.11B	2.43B	1.81B
Stockholders Equity	796.13M	850.42M	1.20B	1.05B	869.69M	789.91M
Cash Flow
Free Cash Flow	480.61M	-876.81M	-479.45M	-490.58M	-533.77M	-106.32M
Operating Cash Flow	503.37M	-854.62M	-469.45M	-473.22M	-505.88M	-78.88M
Investing Cash Flow	-891.31M	-22.20M	3.52M	-11.75M	-42.49M	-210.63M
Financing Cash Flow	1.98M	781.93M	572.73M	566.89M	508.55M	298.94M

goeasy Technical Analysis

Technical Analysis SentimentPositive

Last Price46.73

Price Trends

50DMA43.20Positive

100DMA44.15Positive

200DMA55.68Negative

Market Momentum

MACD0.21Negative

RSI56.65Neutral

STOCH80.17Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GSY, the sentiment is Positive. The current price of 46.73 is above the 20-day moving average (MA) of 43.73, above the 50-day MA of 43.20, and below the 200-day MA of 55.68, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 56.65 is Neutral, neither overbought nor oversold. The STOCH value of 80.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GSY.

goeasy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

TSE:GSY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:MKP	78Outperform	CAD 897.86M	10.45	13.08%	7.71%	13.67%	24.33%
TSE:VBNK	73Outperform	CAD 999.16M	29.35	6.17%	0.32%	13.80%	11.27%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TSE:PRL	65Neutral	CAD 1.03B	12.96	21.12%	3.55%	22.39%	-10.18%
TSE:EQB	52Neutral	CAD 5.07B	-566.67	-0.07%	2.02%	-3.80%	-102.38%
TSE:GSY	48Neutral	CAD 710.80M	-2.15	-37.13%	13.17%	5.44%	-222.24%
TSE:LB	44Neutral	CAD 1.81B	-80.44	-0.30%	4.65%	-7.16%	-116.37%

* Financial Sector Average

Performance Comparison

TSE:GSY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:GSY	Goeasy (OTC)	44.33	-121.73	-73.30%
TSE:LB	Laurentian Bank	40.43	8.35	26.04%
TSE:MKP	Mcan Financial Group	22.06	2.31	11.69%
TSE:VBNK	Versabank (US)	30.82	13.82	81.26%
TSE:EQB	Equitable Group	119.00	30.70	34.78%
TSE:PRL	Propel Holdings, Inc.	26.20	1.22	4.90%

goeasy Corporate Events

Business Operations and StrategyFinancial Disclosures

Goeasy Tightens Lending and Boosts Provisions as Credit Losses Climb

Negative

Aug 7, 2026

Goeasy reported a sharp slowdown in its lending business in the second quarter of 2026 as it executed a six-point action plan to prioritize liquidity and tighten credit. Gross consumer loans receivable fell 2% year over year to $5.0 billion and 7% fr...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 11, 2026

goeasy AI Stock Analysis