Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
goeasy Flags Rising Credit Losses Ahead Of Earnings
Mar 10, 2026 | NCFA Market Activity | Alternative Finance And Consumer Lending
Charge Offs Jump, Forecasts Withdrawn, and Funding Pressure In View
On March 10 2026, Canadaian non bank, non prime consumer lender goeasy Ltd. released a financial and operational update ahead of its fourth quarter earnings report and said it expects about $178M in incremental charge offs tied mainly to its LendCare business. The company said total net charge offs for the quarter rise to about $331M and its allowance for credit losses increases by about $86M. goeasy share price tanked over 40% on the news.
The disclosure was significant enough that CIRO imposed a temporary trading halt pending the news release.
Credit Conditions Deteriorate Faster Than Expected
goeasy said its full year 2025 net charge off rate is about 12.9% and now expects that figure to rise into the mid teens in 2026 before improving in 2027. The company also warned the deterioration could create pressure under certain financing covenants and said it has entered into an accommodation agreement with lenders while negotiating amendments to its credit facilities.
goeasy withdrew its previously issued fourth quarter 2025 outlook and its three year forecast while management reassesses portfolio performance and the impact on the business. The company also said it will suspend its dividend and halt share buybacks under its normal course issuer bid in order to preserve capital while it works through higher losses and funding discussions.
Implications For Canada’s Non Bank Lending Sector
Although this is a specific company event, the implications are beyond one issuer. goeasy is one of the most visible publicly listed companies in Canada’s alternative lending market, and developments at a large lender often influence how investors, warehouse lenders, and institutional funding partners view risk across the wider non bank consumer credit sector.
See: Wealthsimple Aims at Banks With New Credit and Loan Tools
When a lender withdraws forecasts, increases loss reserves, and begins negotiating covenant relief, the market typically responds swiftly. Funding partners may tighten terms, demand more protection, or become more selective about similar credit exposures. It doesn't mean every lender faces the same situation, but it makes investors and new capital cautious.
For Canadian fintech lenders and point of sale financing platforms, it means a tighter credit cycle that will impact underwriting discipline, funding flexibility, and covenant headroom as much as origination growth. Companies that rely on institutional funding or structured facilities need clear visibility into portfolio performance and the ability to react quickly if delinquencies or losses begin to rise.
Conclusion
This update does not change financial infrastructure or market rules on its own, but it does highlight how quickly stress in non prime consumer lending can influence investor sentiment and capital availability across the sector.
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