Goeasy shares rose on Tuesday as the Ontario-based personal lender for subprime borrowers announced a new deal with its creditors. It also delayed releasing its financial results, which were due tomorrow.
The Mississauga, Ont.-based company provides loans and lease-to-own agreements for those who may not be able to access traditional banks due to their financial history. The company was previously set to report financial results on March 25.
According to a news release on Tuesday, Goeasy now expects to release its fourth quarter 2025 results after the market closes on March 31. A conference call with analysts is scheduled for April 1 at 8:00 a.m. ET.
On Monday, Goeasy announced it has secured covenant waivers from its lenders and financiers, allowing it to remain compliant with agreed terms while booking an expected $331 million in writedowns for the three months ended Dec. 31.
“We are pleased to have reached this outcome with our lenders and other financing counterparties. The facilities … together with the strong cash flow generation of the business, provide goeasy with the liquidity to continue executing on our priorities,” Felix Wu, goeasy’s chief financial officer, stated in the news release.
Goeasy says the syndicated revolving credit facility will remain at $550 million and mature in July 2027.
Two weeks ago, Goeasy surprised investors by reporting hefty loan losses and suspending its dividend. That news sent shares down by more than 50 per cent on the Toronto Stock Exchange.
Goeasy shares gained as much as 7.5 per cent on Tuesday. The stock was up about five per cent as of 11:45 a.m. ET at $40.87 per share.
Goeasy’s stock has fallen about 74 per cent versus one year ago. Between 2015 and 2025, shares soared over 1,000 per cent, as historically low interest rates drove demand. Shares hit an all-time closing high above $217 in September 2021.
In a note to clients earlier this month, RBC Capital Markets Bart Dziarski said Goeasy will need more than relief from lenders to right its ship.
“While obtaining covenant relief from lenders gives short-term reprieve, the path forward is challenged given ratings agencies are likely to downgrade the company’s debt rating,” he wrote on March 11. “An equity raise is difficult at current trading levels, and earnings are not likely to improve meaningfully and could potentially deteriorate further if we enter a credit cycle.”
Moody’s Investors Service and S&P Global Ratings cut their respective ratings earlier this month.
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist.