LendCare hit turned a growing loan book into a stark quarterly loss
Alternative lender goeasy Ltd. capped a record year of loan growth with a fourth‑quarter net loss of $336.9 million. A rapid deterioration in its LendCare auto and powersport portfolio forced the non‑prime lender to write off hundreds of millions of dollars in loans and goodwill.
The Mississauga‑based company, long positioned as a flagship in Canada’s non‑prime credit space, reported a 20% jump in its consumer loan book to $5.51 billion and originations of $951.5 million in the quarter.
However, those volumes were overshadowed by $331.1 million in net charge‑offs, including $177.9 million in incremental write‑offs tied to LendCare and a $159.6 million goodwill impairment related to that business.
LendCare reset drives credit shock
goeasy’s annualized net charge‑off rate surged to 23.8% in Q4 2025, up from 9.2% a year earlier, reflecting what management described as exhausted recovery options on “late‑stage delinquent” LendCare loans.
The company also lifted its allowance for expected credit losses to 9.57% of gross consumer loans, from 7.81% at the end of 2024, signalling expectations of further strain.
“The leadership team here is certainly spending some time reflecting on how we got to this point. These aren’t results that we want,” Patrick Ens, who became chief executive on January 1, said on a call with analysts.
“We are committed to taking decisive action, through a focused six‑point plan, to deliver strong financial performance anchored in the strength of our direct‑to‑consumer business.”
“We are taking decisive action to pull back where we see the weakest performance,” Ens said.
“We’ve significantly tightened credit standards and reduced exposure in auto lending, power sports, and other merchant channels.”
From record earnings to deep loss
The reversal followed a run of record profitability. In 2024, goeasy posted double‑digit revenue and earnings growth as demand for non‑prime credit remained strong and originations climbed to $3.17 billion.
For 2025, revenue still rose 11% to $1.70 billion, but operating income fell to $188.3 million from $584.0 million in 2024, and full‑year net results swung to a loss of $178.4 million. By contrast, the company earned $264.2 million the prior year.
“The origination levels in the quarter are a reminder of the opportunity we have to provide a valued service to an underserved customer base,” Ens said.
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