goeasy announced an incremental Q4 2025 charge-off of approximately $178 million, a related $55 million write-down of loan interest and fees, and the withdrawal of its Q4 2025 outlook on March 10, 2026 ET in Mississauga, Ontario. The moves reflect goeasy’s reassessment of collectability in its LendCare merchant-originated portfolio and an expected total quarterly net charge-off of about $331 million. The company also disclosed an anticipated net increase in allowance for credit losses of roughly $86 million and said it will provide further detail with its Q4 2025 earnings.
Key figures and immediate impact
The incremental charge-off applies to loans within the LendCare business and sits against gross consumer loans receivable of $5. 5 billion as at December 31, 2025. goeasy now expects its full-year 2025 net charge-off rate to be approximately 12. 9% and management projects annual net charge-offs to rise to the mid-teens in 2026 before improving in 2027. In response to the credit deterioration, goeasy has withdrawn its previously issued Q4 2025 outlook and its three-year forecast.
Immediate reactions — Goeasy CFO Felix Wu
“We are taking definitive action to rectify this situation, and we recognize that LendCare’s recent rapid growth calls for robust operational infrastructure, enhanced credit risk management practices as well as strong and disciplined management, ” said Felix Wu, goeasy’s Chief Financial Officer. He added that the company expects pressure on net charge offs and higher delinquency reporting for the coming quarters and that more detail will be provided when goeasy reports its Q4 2025 earnings.
Operational causes and management action
The expected incremental charge-off reflects goeasy’s determination that available efforts to drive substantive recoveries on certain late-stage delinquent LendCare receivables have been exhausted. LendCare, acquired in 2021, built a portfolio largely through third-party merchant-originated loans in auto and powersports categories. goeasy management has outlined a multi-point reset that shifts growth toward direct-to-consumer lending, reduces LendCare auto and powersports originations, integrates operations, cuts roughly $30 million in annual costs, overhauls LendCare leadership and suspends share repurchases and the quarterly dividend as part of a capital allocation reset.
Credit covenants, lender talks and what’s next
Although the charge-offs and increase in loan loss provisions are expected to result in non-compliance with certain financial covenants under the syndicated credit facility, securitization facilities and receivables purchase arrangements, goeasy has entered into an accommodation agreement with lenders under its syndicated credit facility and is in active discussions with lenders and counterparties. goeasy will report Q4 2025 results and further detail on its remediation plan, while monitoring covenant discussions and expected credit trends through 2026 as it seeks to stabilize performance.
