goeasy Ltd. shares advanced in late Monday trading on the Toronto Stock Exchange, adding to a recent rally for the non-prime consumer lender. The stock gained C$1.20, or 3.4%, to C$36.15 by 3:02 p.m. EDT, with a session high of C$36.47. The move came as Canadian markets remained open despite the U.S. Memorial Day holiday, which closed American exchanges.
The rally follows a turbulent period for the Mississauga, Ontario-based company. On May 12, goeasy reported a first-quarter net loss of C$53.0 million, a sharp reversal from net income of C$38.7 million in the same quarter last year. Revenue inched up 2% to C$412.9 million, but the lender’s annualized net charge-off rate nearly doubled to 17.8% from 8.9% a year earlier, driven by higher write-offs on merchant-originated automotive and powersports loans.
In response, goeasy’s board suspended its regular quarterly dividend and halted share buybacks to preserve capital. The company also implemented a shareholder rights plan, or poison pill, to deter hostile takeovers. Additionally, goeasy tightened underwriting standards, reducing loan originations by 19% in the quarter. CEO Patrick Ens stated that the company is reducing its exposure to merchant loans and described its liquidity position as solid.
Despite the recent uptick, the stock remains far below its 52-week high of C$216.50. The shares have lost about 72% of their value year-to-date, reflecting persistent investor concerns about credit quality. Analysts remain cautious. National Bank lowered its price target on goeasy to C$34 from C$38, maintaining a Sector Perform rating, citing heightened uncertainty following the quarter.
Broader market conditions provided a tailwind. The S&P/TSX Composite Index hit a record high in early trading, buoyed by materials stocks and optimism over a potential U.S.-Iran breakthrough. Nine of ten TSX sectors were in positive territory, though energy stocks fell on weaker oil prices. Among consumer lenders, Propel Holdings rose 2.68% and EQB added 1.67%, but goeasy’s move was more tied to its own credit reset than sector-wide gains.
Looking ahead, goeasy’s 2026 outlook projects net charge-offs in the mid-teens for the full year. However, the company warned that weaker employment, lower demand, or funding constraints could pressure loan growth and push write-offs above forecasts. Investors are watching closely to see if the tighter lending standards can stabilize the loan book without stifling future expansion.
