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goeasy Ltd. Reports Results for the Third Quarter 2026

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Diluted Loss Per Share of $1.03 in Q3/26, down from diluted EPS of $0.96 in Q2/26
Adjusted Diluted Loss Per Share1 of $0.94 in Q3/26, down from Adj. Dil. EPS1 of $1.02 in Q2/26
Gross Consumer Loans Receivable of $4.88 billion at Q3/26 end, down 2% from $5.00 billion at Q2/26
Total Yield On Consumer Loans1,4 of 27.7% in Q3/26, down 60 bps from 28.3% in Q2/26
Net Charge Off Rate1 of 15.2% in Q3/26, down 150 bps from 16.7% in Q2/26
Cash Provided By Operating Activities Before Net Principal Written2 of $606.8 million, up from $585.4 million in Q2/26

MISSISSAUGA, ON, Nov. 10, 2026 /CNW/ — goeasy Ltd. (TSX: GSY), (“goeasy” or the “Company”), one of Canada’s leading consumer lenders focused on delivering a full suite of financial services to Canadians with non-prime credit scores, today reported results for the third quarter ended September 30, 2026.

“Through the focused efforts of the entire goeasy team, we made significant progress this quarter in executing our six-point plan,” said Patrick Ens, goeasy’s Chief Executive Officer. “We reduced our net charge off rate by 150 basis points compared to the prior quarter, generated $606.8 million in cash from operating activities before net principal written, grew our cash balance by $179.7 million with nil outstanding on our revolving credit facility, and renewed our revolving securitization warehouse facility at a reduced interest rate. As well as achieving a more robust liquidity position, goeasy also increased our direct-to-consumer gross loans receivable over the course of the quarter, an important milestone as we continue to strengthen our foundation for sustainable, profitable growth.”

Third Quarter Results

During the quarter, the Company funded $567.5 million in gross loan originations, down 40% compared to $945.7 million in the third quarter of 2025. The decrease in lending, consistent with the Company’s six-point plan, was primarily due to a reduction in merchant-originated automotive and powersports loan originations attributable to the implementation of tighter credit underwriting measures as those portfolios continued to exhibit unfavourable credit risk performance.

Gross consumer loans receivable decreased 10% to $4.88 billion as at September 30, 2026 from $5.44 billion at the end of the third quarter of 2025, and decreased 2% from $5.00 billion at the end of the second quarter of 2026. The decrease in the Company’s average consumer loans receivable and lower total yield on consumer loans (including ancillary products) were the main drivers of the 18% decrease in revenue from $454.2 million in the third quarter of 2025 to $371.6 million in the third quarter of 2026. Total yield on consumer loans (including ancillary products)1 realized by the Company on its average consumer loans receivable was 27.7% in the quarter, down 370 bps from the same period in 2025, and down 60 bps from the second quarter of 2026. Total annualized yield decreased year-over-year mainly due to the impact of the higher charge offs on gross consumer loans receivable and higher bad debt expenses on interest receivable, lower yields on certain ancillary products as a result of a decline in commissions and fees earned due to credit tightening in merchant-originated loan originations and a moderate reduction in direct to consumer loan originations, as well as a higher proportion of larger dollar value loans, and the continued impact of the lowered maximum allowable rate of interest on the Company’s unsecured lending products.

During the quarter, net charge offs as a percentage of average gross consumer loans receivable1 was 15.2%, up 620 bps from 9.0% in the third quarter of 2025. Net charge offs as a percentage of average gross consumer loans receivable1 increased year-over-year primarily due to higher charge offs in the merchant-originated automotive and powersports loan portfolios, higher charge offs in the direct-to-consumer portfolio and lower average gross consumer loans receivable. Net charge offs were down 150 bps from 16.7% in the second quarter of 2026, mainly due to the continuation of improved credit risk performance in the merchant-originated automotive and powersports loan portfolios and lower charge offs in the direct-to-consumer portfolio.

The total allowance for credit losses on gross consumer loans increased to $516.3 million from $451.7 million as at September 30, 2025, mainly due to the Company’s Q4 2025 revised assessment of collectability and an increase in the credit loss outlook for merchant-originated automotive and powersports loans. For the three-month period ended September 30, 2026, the net change in allowance for credit losses on gross consumer loans was $16.7 million, compared to $45.0 million in the same period of 2025. This change was primarily due to lower growth in the three-month period ended September 30, 2026 compared to the same period of 2025, which was partially offset by an increase in the rate of allowance for expected credit losses. The rate of allowance for expected credit losses, defined as the allowance for credit losses on gross consumer loans receivable as a percentage of the ending gross consumer loans receivable, increased from 9.99% as at June 30, 2026 to 10.59% as at September 30, 2026, driven primarily by expected higher credit losses in the merchant-originated automotive and powersports loan portfolio and the unsecured lending product and unfavourable changes in the macroeconomic outlook incorporated into the Company’s IFRS 9 expected credit loss model.

Operating income for the third quarter of 2026 was $53.0 million, down 67% from $159.8 million in the third quarter of 2025. After adjusting for unusual and non-recurring items, the Company reported adjusted operating income2 of $56.3 million, a decrease from $163.4 million in the third quarter of 2025. The efficiency ratio1 for the third quarter of 2026 was 25.1%, a decline from 23.4% in the third quarter of 2025.

Net loss for the third quarter of 2026 was $17.0 million, down from net income of $28.4 million in the third quarter of 2025. Diluted loss per share was $1.03, down from diluted earnings per share of $1.70 reported in the third quarter of 2025. Adjusted net loss2 for the third quarter of 2026 was $15.5 million, down from adjusted net income2 of $64.2 million in the third quarter of 2025. The decrease in adjusted net income was primarily driven by lower adjusted operating income from lower total yield on consumer loans (including ancillary products) and elevated credit losses. Adjusted diluted loss per share1 was $0.94, down from adjusted diluted earnings per share1 of $3.84 in the third quarter of 2025.

Balance Sheet and Liquidity

Total assets were $5.44 billion as at September 30, 2026, a decrease of 13% from $6.24 billion as at September 30, 2025, related primarily to a $692.8 million decrease in net consumer loans receivable, driven by lower originations during the period and higher charge offs recognized from the fourth quarter of 2025 to the third quarter of 2026, and impairment of goodwill related to the LendCare cash-generating unit. Cash provided by operating activities before net principal written2 in the third quarter of 2026 was $606.8 million, compared to $623.0 million in the third quarter of 2025. The Company’s debt-to-adjusted tangible equity ratio3, a capital management measure for leverage, was 5.02x as at September 30, 2026, compared to 4.16x as at September 30, 2025 and 4.95x as at June 30, 2026. The average blended coupon interest rate for the Company’s debt as at September 30, 2026 was 6.8%.

As at September 30, 2026, goeasy had liquidity (cash on hand plus unused contractual borrowing capacity) of $1.23 billion. On September 29, 2026, the Company renewed its revolving securitization warehouse facility collateralized by consumer loans (the “Securitization Facility”) and restored its ability to make additional draws on the Securitization Facility, subject to certain conditions. The renewed Securitization Facility provides total contractual borrowing capacity of $910 million, reduced from $1.12 billion to better align with the Company’s anticipated funding requirements during the renewed term while reducing costs associated with unused capacity. Advances under the Securitization Facility will bear interest at an annual rate of Adjusted Daily Compounded Canadian Overnight Repo Rate Average (“Adjusted CORRA”) plus 275 bps, a 35 bps decrease from the 310 bps spread over Adjusted CORRA applicable under the Securitization Facility previously. The lending syndicate was unchanged.

The Company has initiated conversations with the lenders under its Revolving Credit Facility to discuss the extension of the facility, as well as amendments to the financial covenants and other terms to help support ongoing covenant compliance in the coming quarters and through the extended term of the facility. The Company does not currently have any amounts drawn on the Revolving Credit Facility and does not anticipate any draws in the near term given its current liquidity position. The Company was in compliance with all of its covenants (including financial covenants) under its Revolving Credit Facility as at September 30, 2026. The Company was not subject to financial covenant compliance, and was in compliance with all other applicable covenants, for the Securitization Facility as at September 30, 2026.  

Selected Additional Third Quarter Information
(September 30, 2026 relative to September 30, 2025, where applicable)

43% of gross consumer loans receivable secured, down from 48%Total number of active lending customers at 423,000, down 7%59% of net loan advances1 in the quarter were issued to new customers, down from 73%89.0% of gross consumer loans receivable, on a dollar-weighted basis, carried an interest rate less than or equal to a 35% Annual Percentage Rate, being the maximum allowable interest rate for new loans written after January 1, 2025

Nine Months Results

For the first nine months of 2026, the Company funded $1.39 billion in loan originations, down 45% from $2.53 billion in the same period of 2025. Total yield on consumer loans (including ancillary products)1 realized by the Company on its average consumer loans receivable was 28.0% in the first nine months of 2026, down 350 bps from the same period in 2025. Net charge offs for the first nine months of 2026, as a percentage of average gross consumer loans receivable1, was 16.6%, up 770 bps from 8.9% in the same period of 2025.

For the first nine months of 2026, the Company produced revenues of $1.17 billion, down 9% compared to $1.29 billion in the same period of 2025. Operating income for the period was $181.5 million compared with $471.6 million in the first nine months of 2025, a decrease of $290.1 million or 62%. Adjusted operating income2 for the first nine months of 2026 was $196.1 million, 59% lower compared to $481.9 million in the same period of 2025. Efficiency ratio1 for the first nine months of 2026 was 25.0%, unchanged from 25.0% in the same period of 2025.

Net loss for the first nine months of 2026 was $54.1 million and diluted loss per share was $3.29 compared with net income of $158.6 million or $9.45 per share in the same period of 2025. Adjusted net loss2 for the first nine months of 2026 was $30.0 million and adjusted diluted loss per share1 was $1.82, compared with adjusted net income2 of $197.0 million or $11.73 per share, decreases of 115% and 116%, respectively.

Updated Outlook

The Company’s Q3 2026 outlook, and the relevant assumptions and risk factors, were disclosed in its June 30, 2026 MD&A. The Company’s actual third quarter performance was consistent with its third quarter 2026 outlook across all three measures. The Company continues to focus on the prudent management of liquidity, strengthening of its credit performance, and alignment of its capital structure. Management remains committed to reestablishing goeasy’s track record of strong credit performance and returns that will reinforce confidence among shareholders and other stakeholders.

The Company has updated its expectations for gross consumer loans receivable at December 31, 2026. These updated expectations are reflected in the Company’s outlook for Q4 2026, which assumes the continued implementation of the Company’s six-point plan. Refer to “Q4 2026 Outlook” in the Company’s September 30, 2026 MD&A for more detail and to the assumptions and risks set out below under “Forward-Looking Statements”.

Q4 2026 Outlook

Gross consumer loans receivable at period end

$4.6 to $4.8 billion

Total yield on consumer loans (including ancillary products)1

27.0% to 28.5%

Net charge offs as a percentage of average gross consumer loans receivable1

14.5% to 16.0%

Share Repurchases and Dividend Payments

In consideration of developments that affected earnings in 2025, the Board of Directors made the decision to suspend the regular quarterly dividend on the Company’s Common Shares and to suspend share repurchases under its normal course issuer bid on an indefinite basis. These actions are aligned with management’s focus on prudently preserving capital and maintaining liquidity.

Forward-Looking Statements

This press release includes forward-looking statements about goeasy, including, but not limited to, its business operations, strategy and expected financial performance and condition. Forward-looking statements include, but are not limited to, statements with respect to forecasts for growth of the consumer loans receivable, annual revenue growth forecasts, strategic initiatives, new product offerings and new delivery channels, anticipated cost savings, planned capital expenditures, anticipated capital requirements and the Company’s ability to secure sufficient capital, liquidity of the Company, plans and references to future operations and results, critical accounting estimates, expected future yields and net charge off rates on loans, the dealer relationships, the size and characteristics of the Canadian non-prime lending market, the continued development of the type and size of competitors in the market. In certain cases, forward-looking statements are predictive in nature, depend upon or refer to future events or conditions, and/or can be identified by the use of words such as “expect”, “continue”, “anticipate”, “intend”, “aim”, “plan”, “believe”, “budget”, “estimate”, “forecast”, “foresee”, “target” or negative versions thereof and similar expressions, and/or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations and business prospects and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company’s operations, economic factors and the industry generally. There can be no assurance that forward-looking statements will prove to be accurate as actual results, and future events could differ materially from those expressed or implied by forward-looking statements made by the Company. Some important factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, goeasy’s ability to enter into new leases, loans or merchant agreements, collect on existing leases or loans, manage credit risk, open new locations on favourable terms, offer products which appeal to customers at a competitive rate, respond to changes in legislation, react to uncertainties related to regulatory action, raise capital under favourable terms, compete, manage the impact of litigation (including class action litigation), control costs at all levels of the organization and maintain and enhance the system of internal controls.

The Company cautions that the foregoing list is not exhaustive. These and other factors could cause actual results to differ materially from our expectations expressed in the forward-looking statements, and further details and descriptions of these and other factors are disclosed in the Company’s Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2025, and for the quarter ended September 30, 2026 including under the section entitled “Risk Factors”.

The reader is cautioned to consider these, and other factors carefully and not to place undue reliance on forward-looking statements, which may not be appropriate for other purposes. The Company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise, unless required by law.

The Company particularly cautions that the Q4 2026 outlook presented above under the heading “Updated Outlook” (the “2026 Outlook Information”) constitutes forward-looking information and that in formulating its outlook, the Company makes a series of assumptions, which include, but are not limited to, assumptions about Environmental Conditions (Stability in the macroeconomic environment; Continued demand for non-prime credit); Portfolio Growth (Loan originations adjust as underwriting criteria are tightened, particularly within indirect channels); Liquidity & Funding (The Company prioritizes liquidity and covenant compliance; Continued access to funding at acceptable rates; Continued strong free cash flow from its existing portfolio); Revenue Yield (Portfolio yield expected to be negatively impacted by bad debts on interest receivable; Business mix shift to include more unsecured personal loan originations at higher yields; Total portfolio yield and net charge off as a percentage of gross consumer loans receivable on its lending products are as estimated in the Company’s budget and strategic plan); Credit Performance (Net charge offs as a percentage of gross consumer loans receivable perform in line with the Company’s budget and forecasts generated through the use of its proprietary credit and underwriting models; The mixture of customers acquired through each of the Company’s acquisition channels and the mixture of new and existing borrowers are as estimated in the Company’s forecast); Investment Performance (No material changes are assumed in the fair value of investments, and no forecast is made regarding the timing of realization of the investment portfolio); and Mergers and Acquisitions (No mergers or acquisitions are contemplated within the outlook period). These assumptions and expectations are subject to a number of risks, including the following, as well as those set out in the section entitled “Risk Factors” in the Company’s MD&A: Environmental & Market Conditions (Uncertainty in consumer demand or broader economic conditions may adversely impact loan originations and portfolio performance; Deterioration in employment levels or economic stability could negatively affect credit performance and increase net charge off rates; Competitive dynamics or pricing pressures may impact margins and growth); Access to Capital & Funding (The Company’s ability to access capital on acceptable terms and maintain adequate liquidity to support operations and strategic priorities); Regulatory Environment (Changes to laws and regulations governing consumer lending that could impact product offerings, pricing or operations); Credit Performance (A material increase in net charge off as a percentage of gross consumer loans receivable beyond expectations, including adverse performance from prior vintages or new originations); and Operating Execution (The Company’s ability to successfully execute on its six-point plan, including underwriting changes, and operating model alignment and platform consolidation; Risks associated with transitioning originations and customer portfolios toward the easyfinancial platform). The 2026 Outlook Information constitutes targets established by the Company and is subject to change as plans and business conditions vary. Accordingly, investors are cautioned not to place undue reliance on the 2026 Outlook Information. Actual results may differ materially.

About goeasy

goeasy Ltd. is a leading Canadian provider of non-prime consumer lending solutions, offering a suite of financial products through its easyfinancial, easyhome, and LendCare brands. goeasy offers unsecured and secured instalment loans, point-of-sale financing, and lease-to-own merchandise through its omni-channel model, which spans online, mobile, and hundreds of locations nationwide.

Driven by its team members’ dedication to expand access to credit for underserved communities and helping customers strengthen their financial futures, goeasy has proudly served more than 1.7 million customers while building an award-winning culture. Shares of goeasy Ltd. are listed on the Toronto Stock Exchange (TSX) under the symbol GSY. For more information, visit www.goeasy.com.

For investor inquiries, contact:

James Obright
Senior Vice President, Investor Relations & Capital Markets
investor_relations@goeasy.com

For media inquiries, contact:

mediainquiries@goeasy.com

Notes:
1 These are non-IFRS ratios. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.
2 These are non-IFRS measures. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.
3 These are capital management measures. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.
4 Including ancillary products.

goeasy Ltd.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

(Expressed in thousands of Canadian dollars)

As At

As At

September 30,

December 31,

2026

2025

ASSETS 

Cash 

491,844

152,661

Accounts receivable

37,159

42,361

Prepaid expenses

10,044

9,159

Income taxes recoverable

50,889

90,559

Consumer loans receivable, net 

4,497,960

5,155,360

Investments 

23,117

29,103

Lease assets, net

27,885

36,656

Derivative financial assets 

57,561

11,146

Deferred income tax assets 

45,373

22,250

Property and equipment, net

24,158

30,788

Right-of-use assets, net

52,979

52,510

Intangible assets, net

100,363

104,142

Goodwill

21,310

21,310

TOTAL ASSETS

5,440,642

5,758,005

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

Revolving credit facility

(2,274)

175,052

Accounts payable and other liabilities 

93,592

107,842

Dividends payable 

–

23,398

Unearned revenue

30,822

31,219

Accrued interest payable

82,971

68,533

Deferred income tax liabilities 

–

5,367

Lease liabilities 

59,501

59,451

Secured borrowings 

44,725

88,783

Revolving securitization warehouse facilities 

610,536

611,015

Derivative financial liabilities 

2,922

46,107

Notes payable 

3,734,566

3,690,818

TOTAL LIABILITIES

4,657,361

4,907,585

Shareholders’ equity

Share capital 

431,588

430,325

Contributed surplus

27,880

26,782

Accumulated other comprehensive loss

(28,739)

(13,367)

Retained earnings

352,552

406,680

TOTAL SHAREHOLDERS’ EQUITY

783,281

850,420

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

5,440,642

5,758,005

 

goeasy Ltd.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

(Expressed in thousands of Canadian dollars, except earnings (loss) per share)

Three Months Ended

Nine Months Ended

September 30,

September 30,

September 30,

September 30,

2026

2025

2026

2025

Restated

Restated

REVENUE

Interest income

289,545

342,035

912,948

979,449

Lease revenue

18,260

21,250

57,503

65,314

Commissions earned

60,308

79,372

191,762

221,180

Charges and fees

3,535

11,548

12,328

24,534

371,648

454,205

1,174,541

1,290,477

OPERATING EXPENSES

BAD DEBTS

214,873

177,515

661,731

465,279

OTHER OPERATING EXPENSES

Salaries and benefits

44,135

51,455

146,445

153,030

Share-based compensation 

722

3,594

2,735

13,741

Technology costs

11,800

10,943

34,140

35,746

Underwriting and collections

7,985

9,891

24,962

25,724

Occupancy

5,273

5,388

16,411

16,390

Advertising and promotion

6,065

7,132

11,424

24,156

Restructuring charges

–

–

4,763

–

Other expenses

8,520

7,866

31,377

23,114

84,500

96,269

272,257

291,901

DEPRECIATION AND AMORTIZATION

Depreciation of lease assets

5,889

6,957

18,644

20,887

Amortization of intangible assets

5,517

5,638

16,641

16,939

Depreciation of right-of-use assets

5,337

5,332

16,030

15,921

Depreciation of property and equipment

2,513

2,666

7,730

7,928

19,256

20,593

59,045

61,675

TOTAL OPERATING EXPENSES

318,629

294,377

993,033

818,855

OPERATING INCOME

53,019

159,828

181,508

471,622

OTHER LOSS 

–

(1,800)

(5,986)

(1,800)

FINANCE COSTS 

(75,286)

(118,767)

(246,875)

(251,451)

INCOME BEFORE INCOME TAXES

(22,267)

39,261

(71,353)

218,371

INCOME TAX EXPENSE (RECOVERY) 

Current

15,166

17,047

2,584

81,826

Deferred

(20,428)

(6,199)

(19,809)

(22,030)

(5,262)

10,848

(17,225)

59,796

NET INCOME (LOSS) 

(17,005)

28,413

(54,128)

158,575

BASIC EARNINGS (LOSS) PER SHARE 

(1.03)

1.72

(3.29)

9.57

DILUTED EARNINGS (LOSS) PER SHARE 

(1.03)

1.70

(3.29)

9.45

 

SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT

(Expressed in thousands of Canadian dollars, except earnings per share)

Three Months Ended September 30, 2026

easyfinancial

easyhome

Corporate

Total

Revenue

Interest income

276,048

13,497

–

289,545

Lease revenue

–

18,260

–

18,260

Commissions earned

56,576

3,732

–

60,308

Charges and fees

2,815

720

–

3,535

335,439

36,209

–

371,648

Operating expenses 

Bad debts

206,332

8,541

–

214,873

Other operating expenses

56,509

11,663

16,328

84,500

Depreciation and amortization

9,860

7,852

1,544

19,256

272,701

28,056

17,872

318,629

Operating income (loss)

62,738

8,153

(17,872)

53,019

Other loss

–

Finance costs

(75,286)

Loss before income taxes

(22,267)

Income tax (recovery)

(5,262)

Net loss

(17,005)

Diluted loss per share

(1.03)

Three Months Ended September 30, 2025 

(As restated) 

easyfinancial

easyhome

Corporate

Total

Revenue

Interest income

330,453

11,582

–

342,035

Lease revenue

–

21,250

–

21,250

Commissions earned

75,383

3,989

–

79,372

Charges and fees

10,822

726

–

11,548

416,658

37,547

–

454,205

Operating expenses 

Bad debts

170,781

6,734

–

177,515

Other operating expenses

65,330

13,154

17,785

96,269

Depreciation and amortization

9,953

8,998

1,642

20,593

246,064

28,886

19,427

294,377

Operating income (loss)

170,594

8,661

(19,427)

159,828

Other loss

(1,800)

Finance costs

(118,767)

Income before income taxes

39,261

Income tax expense

10,848

Net income

28,413

Diluted earnings per share

1.70

Nine Months Ended September 30, 2026

easyfinancial

easyhome

Corporate

Total

Revenue

Interest income

871,129

41,819

–

912,948

Lease revenue

–

57,503

–

57,503

Commissions earned

179,922

11,840

–

191,762

Charges and fees

10,065

2,263

–

12,328

1,061,116

113,425

–

1,174,541

Operating expenses 

Bad debts

635,015

26,716

–

661,731

Other operating expenses

175,137

36,541

60,579

272,257

Depreciation and amortization

29,748

24,614

4,683

59,045

839,900

87,871

65,262

993,033

Operating income (loss)

221,216

25,554

(65,262)

181,508

Other loss

(5,986)

Finance costs

(246,875)

Loss before income taxes

(71,353)

Income taxes (recovery)

(17,225)

Net loss

(54,128)

Diluted loss per share

(3.29)

Nine Months Ended September 30, 2025

(As restated) 

easyfinancial

easyhome

Corporate

Total

Revenue

Interest income

946,257

33,192

–

979,449

Lease revenue

–

65,314

–

65,314

Commissions earned

209,820

11,360

–

221,180

Charges and fees

22,354

2,180

–

24,534

1,178,431

112,046

–

1,290,477

Operating expenses 

Bad debts

448,677

16,602

–

465,279

Other operating expenses

191,034

40,331

60,536

291,901

Depreciation and amortization

29,643

27,028

5,004

61,675

669,354

83,961

65,540

818,855

Operating income (loss)

509,077

28,085

(65,540)

471,622

Other loss

(1,800)

Finance costs

(251,451)

Income before income taxes

218,371

Income taxes

59,796

Net income

158,575

Diluted earnings per share

9.45

SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS

Three Months Ended

($ in 000’s except earnings per share and percentages)

September 30,

2026

September 30,

2025

(As restated)

Variance

$ / bps

Variance

% Change

Summary Financial Results

Revenue

371,648

454,205

(82,557)

(18.2 %)

Bad debts

214,873

177,515

37,358

21.0 %

Other operating expenses

84,500

96,269

(11,769)

(12.2 %)

EBITDA1

66,386

171,664

(105,278)

(61.3 %)

EBITDA margin1

17.9 %

37.8 %

(1,990 bps)

(52.6 %)

Depreciation and amortization

19,256

20,593

(1,337)

(6.5 %)

Operating income

53,019

159,828

(106,809)

(66.8 %)

Operating margin

14.3 %

35.2 %

(2,090 bps)

(59.4 %)

Finance costs

75,286

118,767

(43,481)

(36.6 %)

Effective income tax rate

23.6 %

27.6 %

(400 bps)

(14.5 %)

Net income (loss)

(17,005)

28,413

(45,418)

(159.8 %)

Diluted earnings (loss) per share

(1.03)

1.70

(2.73)

(160.6 %)

Return on receivables

(1.4 %)

2.1 %

(350 bps)

(166.7 %)

Return on assets

(1.2 %)

1.9 %

(310 bps)

(163.2 %)

Return on equity

(8.6 %)

9.4 %

(1,800 bps)

(191.5 %)

Return on tangible common equity1

(8.1 %)

12.7 %

(2,080 bps)

(163.8 %)

Adjusted Financial Results1,2

Other operating expenses

90,389

102,961

(12,572)

(12.2 %)

Efficiency ratio

25.1 %

23.4 %

170 bps

7.3 %

Operating income

56,294

163,368

(107,074)

(65.5 %)

Operating margin

15.1 %

36.0 %

(2,090 bps)

(58.0 %)

Net income (loss)

(15,455)

64,249

(79,704)

(124.1 %)

Diluted earnings (loss) per share

(0.94)

3.84

(4.78)

(124.5 %)

Return on receivables

(1.3 %)

4.8 %

(610 bps)

(127.1 %)

Return on assets

(1.1 %)

4.3 %

(540 bps)

(125.6 %)

Return on equity

(7.8 %)

21.3 %

(2,910 bps)

(136.6 %)

Return on tangible common equity

(8.5 %)

26.5 %

(3,500 bps)

(132.1 %)

Key Performance Indicators

Segment Financials

easyfinancial revenue

335,439

416,658

(81,219)

(19.5 %)

easyfinancial operating margin

18.7 %

40.9 %

(2,220 bps)

(54.3 %)

easyhome revenue

36,209

37,547

(1,338)

(3.6 %)

easyhome operating margin

22.5 %

23.1 %

(60 bps)

(2.6 %)

Portfolio Indicators

Gross consumer loans receivable

4,876,411

5,444,982

(568,571)

(10.4 %)

Growth in consumer loans receivable

(124,324)

337,334

(461,658)

(136.9 %)

Gross loan originations

567,519

945,730

(378,211)

(40.0 %)

Total yield on consumer loans (including ancillary products)1

27.7 %

31.4 %

(370 bps)

(11.8 %)

Net charge offs as a percentage of average gross consumer loans receivable1

15.2 %

9.0 %

620 bps

69.7 %

Cash provided by operating activities before net principal written1

606,760

622,973

(16,213)

(2.6 %)

Potential monthly leasing revenue1

5,209

6,292

(1,083)

(17.2 %)

 

Nine Months Ended

($ in 000’s except earnings per share and percentages)

September 30,

2026

September 30,

2025

(As restated)

Variance

$ / bps

Variance

% Change

Summary Financial Results

Revenue

1,174,541

1,290,477

(115,936)

(9.0 %)

Bad debts

661,731

465,279

196,452

42.2 %

Other operating expenses

272,257

291,901

(19,644)

(6.7 %)

EBITDA1

215,923

510,610

(294,687)

(57.7 %)

EBITDA margin1

18.4 %

39.6 %

(2,120 bps)

(53.5 %)

Depreciation and amortization

59,045

61,675

(2,630)

(4.3 %)

Operating income

181,508

471,622

(290,114)

(61.5 %)

Operating margin

15.5 %

36.5 %

(2,100 bps)

(57.5 %)

Other income (loss)

(5,986)

(1,800)

(4,186)

232.6 %

Finance costs

246,875

251,451

(4,576)

(1.8 %)

Effective income tax rate

24.1 %

27.4 %

(330 bps)

(12.0 %)

Net income (loss)

(54,128)

158,575

(212,703)

(134.1 %)

Diluted earnings (loss) per share

(3.29)

9.45

(12.74)

(134.8 %)

Return on receivables

(1.4 %)

4.2 %

(560 bps)

(133.3 %)

Return on assets

(1.3 %)

3.8 %

(510 bps)

(134.2 %)

Return on equity

(8.9 %)

17.9 %

(2,680 bps)

(149.7 %)

Return on tangible common equity1

(8.5 %)

23.4 %

(3,190 bps)

(136.3 %)

Adjusted Financial Results1,2

Other operating expenses

286,138

312,339

(26,201)

(8.4 %)

Efficiency ratio

25.0 %

25.0 %

–

–

Operating income

196,096

481,896

(285,800)

(59.3 %)

Operating margin

16.7 %

37.3 %

(2,060 bps)

(55.2 %)

Net income (loss)

(30,000)

196,965

(226,965)

(115.2 %)

Diluted earnings (loss) per share

(1.82)

11.73

(13.55)

(115.5 %)

Return on receivables

(0.8 %)

5.2 %

(600 bps)

(115.4 %)

Return on assets

(0.7 %)

4.7 %

(540 bps)

(114.9 %)

Return on equity

(5.0 %)

22.2 %

(2,720 bps)

(122.5 %)

Return on tangible common equity

(5.4 %)

27.9 %

(3,330 bps)

(119.4 %)

Key Performance Indicators

Segment Financials

easyfinancial revenue

1,061,116

1,178,431

(117,315)

(10.0 %)

easyfinancial operating margin

20.8 %

43.2 %

(2,240 bps)

(51.9 %)

easyhome revenue

113,425

112,046

1,379

1.2 %

easyhome operating margin

22.5 %

25.1 %

(260 bps)

(10.4 %)

Portfolio Indicators

Gross consumer loans receivable

4,876,411

5,444,982

(568,571)

(10.4 %)

Growth in consumer loans receivable

(637,056)

842,545

(1,479,601)

(175.6 %)

Gross loan originations

1,390,893

2,526,218

(1,135,325)

(44.9 %)

Total yield on consumer loans (including ancillary products)1

28.0 %

31.5 %

(350 bps)

(11.0 %)

Net charge offs as a percentage of average gross consumer loans receivable1

16.6 %

8.9 %

770 bps

87.4 %

Cash provided by operating activities before net principal written1

1,752,227

1,522,823

229,405

15.1 %

Potential monthly leasing revenue1

5,209

6,292

(1,083)

(17.2 %)

1

EBITDA, adjusted other operating expenses, adjusted operating income, adjusted net income and cash provided by operating activities before net principal written are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings per share, adjusted return on equity, adjusted return on receivable, adjusted return on assets, reported and adjusted return on tangible common equity, net charge offs as a percentage of average gross consumer loans receivable and total yield on consumer loans (including ancillary products) are non-IFRS ratios. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.

Non-IFRS Measures and Other Financial Measures

The Company uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with International Financial Reporting Standards (IFRS) as issued by International Accounting Standards Board (IASB), are not identified by IFRS and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Company believes that non-IFRS measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-IFRS measures are used throughout this press release and listed below. An explanation of the composition of can be found in the Company’s MD&A, available on www.sedarplus.ca.

Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share

Adjusted net income (loss) is a non-IFRS measure and adjusted diluted earnings (loss) per share is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted net income (loss) and adjusted diluted earnings (loss) per share for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

Nine Months Ended

($ in 000’s except earnings per share)

September 30,

2026

September 30,
2025

(As restated)

September 30,

2026

September 30,
2025

(As restated)

Net income (loss)

(17,005)

28,413

(54,128)

158,575

Impact of adjusting items

Other operating expenses

Restructuring charges1

–

–

4,763

–

Integration costs2

–

265

–

449

Depreciation and amortization

Amortization of acquired intangible assets3

3,275

3,275

9,825

9,825

Other loss (income)4

–

1,800

5,986

1,800

Finance costs

Fair value change on prepayment options related to Notes Payable5

(1,166)

43,092

10,094

39,832

Total pre-tax impact of adjusting items

2,109

48,432

30,668

51,906

Income tax impact of above adjusting items

(559)

(12,596)

(6,540)

(13,516)

After-tax impact of adjusting items

1,550

35,836

24,128

38,390

Adjusted net income (loss)

(15,455)

64,249

(30,000)

196,965

Weighted average number of diluted shares outstanding

16,494

16,739

16,445

16,788

Diluted earnings (loss) per share

(1.03)

1.70

(3.29)

9.45

Per share impact of adjusting items

0.09

2.14

1.47

2.28

Adjusted diluted earnings (loss) per share

(0.94)

3.84

(1.82)

11.73

Adjusting item related to restructuring charges

1 The Company completed a restructuring exercise in March 2026 and incurred a total of $4.8 million related to severance costs, settlement claims and consulting fees.

Adjusting items related to the LendCare acquisition

2 Integration costs related to representation and warranty insurance costs, and other integration costs related to the acquisition of LendCare.

3 Amortization of the $131 million intangible asset related to the acquisition of LendCare, with an estimated useful life of ten years.

Adjusting item related to other loss

4 For the nine-month period ended September 30, 2026, net investment loss was due to fair value changes in the Company’s investments.

Adjusting item related to prepayment options embedded in the Notes Payable

5 For the three and nine-month periods ended September 30, 2025 and 2026, the Company recognized a fair value change on the prepayment options related to Notes Payable.

Adjusted Other Operating Expenses and Efficiency Ratio

Adjusted other operating expenses is a non-IFRS measure and efficiency ratio is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted other operating expenses and efficiency ratio for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

Nine Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2025

(As restated)

September 30,

2026

September 30,

2025

(As restated)

Other operating expenses as stated

84,500

96,269

272,257

291,901

Impact of adjusting items1

Other operating expenses

Restructuring charges

–

–

(4,763)

–

Integration costs

–

(265)

–

(449)

Depreciation and amortization

Depreciation of lease assets

5,889

6,957

18,644

20,887

Total impact of adjusting items

5,889

6,692

13,881

20,438

Adjusted other operating expenses

90,389

102,961

286,138

312,339

Total revenue

371,648

454,205

1,174,541

1,290,477

Less: Bad debts on interest receivable

(11,636)

(13,291)

(31,054)

(40,255)

360,012

440,914

1,143,487

1,250,222

Efficiency ratio

25.1 %

23.4 %

25.0 %

25.0 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Adjusted Operating Margin

Adjusted operating income is a non-IFRS measure and adjusted operating margin is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted operating income (loss) and adjusted operating margins for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026 (adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

easyfinancial

Operating income (loss)

62,738

62,738

170,594

170,594

Divided by revenue

335,439

335,439

416,658

416,658

easyfinancial operating margin

18.7 %

18.7 %

40.9 %

40.9 %

easyhome

Operating income

8,153

8,153

8,661

8,661

Divided by revenue

36,209

36,209

37,547

37,547

easyhome operating margin

22.5 %

22.5 %

23.1 %

23.1 %

Total

Operating income (loss) 1

53,019

53,019

159,828

159,828

Other operating expenses2 

Restructuring charges

–

–

–

–

Integration costs

–

–

–

265

Depreciation and amortization2

Amortization of acquired intangible assets

–

3,275

–

3,275

Adjusted operating income (loss)

53,019

56,294

159,828

163,368

Divided by revenue

371,648

371,648

454,205

454,205

Total operating margin

14.3 %

15.1 %

35.2 %

36.0 %

1

Includes the operating (loss) for the Corporate reportable segment.

2

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

 

Nine Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026 (adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

easyfinancial

Operating income (loss)

221,216

221,216

509,077

509,077

Divided by revenue

1,061,116

1,061,116

1,178,431

1,178,431

easyfinancial operating margin

20.8 %

20.8 %

43.2 %

43.2 %

easyhome

Operating income

25,554

25,554

28,085

28,085

Divided by revenue

113,425

113,425

112,046

112,046

easyhome operating margin

22.5 %

22.5 %

25.1 %

25.1 %

Total

Operating income (loss) 1

181,508

181,508

471,622

471,622

Other operating expenses2 

Restructuring charges

–

4,763

–

–

Integration costs

–

–

–

449

Depreciation and amortization2

Amortization of acquired intangible assets

–

9,825

–

9,825

Adjusted operating income (loss)

181,508

196,096

471,622

481,896

Divided by revenue

1,174,541

1,174,541

1,290,477

1,290,477

Total operating margin

15.5 %

16.7 %

36.5 %

37.3 %

1

Includes the operating (loss) for the Corporate reportable segment.

2

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and EBITDA Margin

EBITDA is a non-IFRS measure, while EBITDA margin is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate EBITDA and EBITDA margin for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

Nine Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2025

(As restated)

September 30,

2026

September 30,

2025

(As restated)

Net income (loss)

(17,005)

28,413

(54,128)

158,575

Finance cost

75,286

118,767

246,875

251,451

Income tax expense

(5,262)

10,848

(17,225)

59,796

Depreciation and amortization

19,256

20,593

59,045

61,675

Depreciation of lease assets

(5,889)

(6,957)

(18,644)

(20,887)

EBITDA

66,386

171,664

215,923

510,610

Divided by revenue

371,648

454,205

1,174,541

1,290,477

EBITDA margin

17.9 %

37.8 %

18.4 %

39.6 %

Cash Provided by Operating Activities before Net Principal Written

Cash provided by operating activities before net principal written is a non-IFRS measure. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate cash provided by operating activities before net principal written for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

Nine Months Ended

($ in 000’s)

September 30,

2026

September 30,

2025

(As restated)

September 30,

2026

September 30,

2025

(As restated)

Cash provided by (used in) operating activities

200,765

(173,480)

700,966

(627,963)

Net principal written

405,995

796,453

1,051,262

2,150,785

Cash provided by operating activities before net principal written

606,760

622,973

1,752,228

1,522,822

Adjusted Return on Receivables

Adjusted return on receivables is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted return on receivables for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026

(adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

Net income (loss)

(17,005)

(17,005)

28,413

28,413

After-tax impact of adjusting items1

–

1,550

–

35,836

Adjusted net income (loss)

(17,005)

(15,455)

28,413

64,249

Multiplied by number of periods in a year

              X 4

             X 4

             X 4

               X 4

Divided by average gross consumer loans receivable

4,913,663

4,913,663

5,326,896

5,326,896

Return on receivables

(1.4 %)

(1.3 %)

2.1 %

4.8 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

 

Nine Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026

(adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

Net income (loss)

(54,128)

(54,128)

158,575

158,575

After-tax impact of adjusting items1

–

24,128

–

38,390

Adjusted net income (loss)

(54,128)

(30,000)

158,575

196,965

Multiplied by number of periods in a year

            X 4/3

           X 4/3

          X 4/3

         X 4/3

Divided by average gross consumer loans receivable

5,156,351

5,156,351

5,006,664

5,006,664

Return on receivables

(1.4 %)

(0.8 %)

4.2 %

5.2 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Adjusted Return on Assets

Adjusted return on assets is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted return on assets for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026

(adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

Net income (loss)

(17,005)

(17,005)

28,413

28,413

After-tax impact of adjusting items1

–

1,550

–

35,836

Adjusted net income (loss)

(17,005)

(15,455)

28,413

64,249

Multiplied by number of periods in a year

              X 4

            X 4

             X 4

           X 4

Divided by average total assets for the period

5,461,892

5,461,892

5,935,765

5,935,765

Return on assets

(1.2 %)

(1.1 %)

1.9 %

4.3 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

 

Nine Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026

(adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

Net income (loss)

(54,128)

(54,128)

158,575

158,575

After-tax impact of adjusting items1

–

24,128

–

38,390

Adjusted net income (loss)

(54,128)

(30,000)

158,575

196,965

Multiplied by number of periods in a year

           X 4/3

           X 4/3

          X 4/3

        X 4/3

Divided by average total assets for the period

5,625,869

5,625,869

5,606,173

5,606,173

Return on assets

(1.3 %)

(0.7 %)

3.8 %

4.7 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Adjusted Return on Equity

Adjusted return on equity is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate adjusted return on equity for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026

(adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

Net income (loss)

(17,005)

(17,005)

28,413

28,413

After-tax impact of adjusting items1

–

1,550

–

35,836

Adjusted net income (loss)

(17,005)

(15,455)

28,413

64,249

Multiplied by number of periods in a year

             X 4

              X 4

            X 4

            X 4

Divided by average shareholders’ equity for the period

789,703

789,703

1,204,593

1,204,593

Return on equity

(8.6 %)

(7.8 %)

9.4 %

21.3 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

 

Nine Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026

(adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

Net income (loss)

(54,128)

(54,128)

158,575

158,575

After-tax impact of adjusting items1

–

24,128

–

38,390

Adjusted net income (loss)

(54,128)

(30,000)

158,575

196,965

Multiplied by number of periods in a year

             X 4/3

           X 4/3

           X 4/3

           X 4/3

Divided by average shareholders’ equity for the period

807,766

807,766

1,181,052

1,181,052

Return on equity

(8.9 %)

(5.0 %)

17.9 %

22.2 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

Reported and Adjusted Return on Tangible Common Equity

Reported and adjusted return on tangible common equity are non-IFRS ratios. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 45 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate reported and adjusted return on tangible common equity for the three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026

(adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

Net income

(17,005)

(17,005)

28,413

28,413

Amortization of acquired intangible assets

3,275

3,275

3,275

3,275

Income tax impact of the above item

(868)

(868)

(868)

(868)

Net income before amortization of acquired intangible assets, net of income tax

(14,598)

(14,598)

30,820

30,820

Impact of adjusting items1

Other operating expenses

Integration costs

–

–

–

265

Other loss

–

–

–

1,800

Finance costs

Fair value change on prepayment options related to Notes Payable

–

(1,166)

–

43,092

Total pre-tax impact of adjusting items

–

(1,166)

–

45,157

Income tax impact of above adjusting items

–

309

–

(11,728)

After-tax impact of adjusting items

–

(857)

–

33,429

Adjusted net income (loss)

(14,598)

(15,455)

30,820

64,249

Multiplied by number of periods in a year

             X 4

             X 4

              X 4

              X 4

Average shareholders’ equity

789,703

789,703

1,204,593

1,204,593

Average goodwill

(21,310)

(21,310)

(180,923)

(180,923)

Average acquired intangible assets2

(61,679)

(61,679)

(74,779)

(74,779)

Average related deferred tax liabilities

16,345

16,345

19,816

19,816

Divided by average tangible common equity

723,059

723,059

968,707

968,707

Return on tangible common equity

(8.1 %)

(8.5 %)

12.7 %

26.5 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

2

Excludes intangible assets relating to software.

 

Nine Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2026

(adjusted)

September 30,

2025

(As restated)

September 30,

2025

(adjusted)

(As restated)

Net income (loss)

(54,128)

(54,128)

158,575

158,575

Amortization of acquired intangible assets

9,825

9,825

9,825

9,825

Income tax impact of the above item

(2,604)

(2,604)

(2,604)

(2,604)

Net income before amortization of acquired intangible assets, net of income tax

(46,907)

(46,907)

165,796

165,796

Impact of adjusting items1

Other operating expenses

Restructuring charges

–

4,763

–

–

Integration costs

–

–

–

449

Other loss

–

5,986

–

1,800

Finance costs

Fair value change on prepayment options related to Notes Payable

–

10,094

–

39,832

Total pre-tax impact of adjusting items

–

20,843

–

42,081

Income tax impact of above adjusting items

–

(3,936)

–

(10,912)

After-tax impact of adjusting items

–

16,907

–

31,169

Adjusted net income (loss)

(46,907)

(30,000)

165,796

196,965

Multiplied by number of periods in a year

           X 4/3

           X 4/3

           X 4/3

           X 4/3

Average shareholders’ equity

807,766

807,766

1,181,052

1,181,052

Average goodwill

(21,310)

(21,310)

(180,923)

(180,923)

Average acquired intangible assets2

(64,954)

(64,954)

(78,054)

(78,054)

Average related deferred tax liabilities

17,213

17,213

20,684

20,684

Divided by average tangible common equity

738,715

738,715

942,759

942,759

Return on tangible common equity

(8.5 %)

(5.4 %)

23.4 %

27.9 %

1

For explanation of adjusting items, refer to the corresponding “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section.

2

Excludes intangible assets relating to software.

Total Yield on Consumer Loans as a Percentage of Average Gross Consumer Loans Receivable

Total yield on consumer loans as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section “Portfolio Analysis” on page 31 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for three and nine-month periods ended September 30, 2026 and 2025 include those indicated in the chart below:

Three Months Ended

Nine Months Ended

($ in 000’s except percentages)

September 30,

2026

September 30,

2025

(As restated)

September 30,

2026

September 30,

2025

(As restated)

Total Company revenue

371,648

454,205

1,174,541

1,290,477

Less: Leasing revenue

(19,356)

(22,490)

(61,015)

(69,064)

Less: Bad debts on interest income

(11,636)

(13,291)

(31,055)

(40,255)

Adjusted financial revenue

340,656

418,424

1,082,471

1,181,158

Multiplied by number of periods in a year

              X 4

            X 4

         X 4/3

          X 4/3

Divided by average gross consumer loans receivable

4,913,663

5,326,896

5,156,351

5,006,664

Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized)

27.7 %

31.4 %

28.0 %

31.5 %

Net Charge Offs as a Percentage of Average Gross Consumer Loans Receivable

Net charge Offs as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section “Portfolio Analysis” on page 31 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. Items used to calculate net charge Offs as a percentage of average gross consumer loans receivable for the three and nine-month periods ended September 30, 2026. and 2025 include those indicated in the chart below:

Three Months Ended

($in 000’s except percentages)

September 30,

2026

September 30,

2025

(As restated)

Net charge offs on gross consumer loans receivable

186,524

119,252

Multiplied by number of periods in a year

              X 4

X 4

Divided by average gross consumer loans receivable

4,913,663

5,326,896

Net charge offs as a percentage of average gross consumer loans receivable (annualized)

15.2 %

9.0 %

 

Nine Months Ended

($in 000’s except percentages)

September 30,

2026

September 30,

2025

(As restated)

Net charge offs on gross consumer loans receivable

641,845

332,556

Multiplied by number of periods in a year

           X 4/3

          X 4/3

Divided by average gross consumer loans receivable

5,156,351

5,006,664

Net charge offs as a percentage of average gross consumer loans receivable (annualized)

16.6 %

8.9 %

Net Principal Written and Percentage Net Principal Written to New Customers

Net principal written (Net loan advances) is a non-IFRS measure. See description in section “Portfolio Analysis” on page 31 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026. The percentage of net loan advances to new customers is a non-IFRS ratio. It is calculated as loan originations to new customers divided by the net principal written. The Company uses percentage of net loan advances to new customers, among other measures, to assess the operating performance of its lending business.  Items used to calculate the percentage of net loan advances to new customers for the three-month periods ended for the three and nine-month periods ended September 30, 2026 include those indicated in the chart below:

Three Months Ended

Nine Months Ended

($ in 000’s)

September 30, 2026

September 30, 2025

September 30, 2026

September 30, 2025

Gross loan originations

567,519

945,730

1,390,893

2,526,218

Loan originations to new customers

240,506

578,810

681,767

1,568,654

Loan originations to existing customers

327,013

366,920

709,126

957,564

Less: Proceeds applied to repay existing loans

(161,524)

(149,277)

(339,631)

(375,432)

Net advance to existing customers

165,489

217,643

369,495

582,132

Net principal written

405,995

796,453

1,051,262

2,150,786

Percentage net advances to new customers

59.2 %

72.7 %

64.9 %

72.9 %

Debt-to-Adjusted Tangible Equity

Debt to adjusted tangible equity is a capital management measure. Refer to “Financial Condition” section on page 56 of the Company’s MD&A for the three and nine-month periods ended September 30, 2026.

SOURCE goeasy Ltd.

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RADCOM Reports Third Quarter 2026 Results

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Increased revenue 19.4% sequentially, returned to quarterly non-GAAP operating income, and maintained positive cash flow

TEL AVIV, Israel, Nov. 11, 2026 /PRNewswire/ — RADCOM Ltd. (Nasdaq: RDCM) announced today its financial results for the third quarter ended September 30, 2026.

Third-quarter revenues were $14.0 million, up 19.4% sequentially and down 23.6% year over year. Although RADCOM recorded a GAAP operating loss, it returned to non-GAAP operating profitability. RADCOM also generated $1.7 million in positive cash flow and ended the quarter with $111.4 million in cash, cash equivalents, and short-term bank deposits and no debt, up from $109.7 million as of June 30, 2026.

“We returned to non-GAAP operating profitability this quarter and added two new customers, VNPT and CETIN Networks, each replacing the incumbent vendor through a competitive process,” said Benny Eppstein, RADCOM’s Chief Executive Officer. “Our solutions remain integral to how customers manage their networks and end-user service quality, and our customer relationships remain strong. Operators continue to invest in their networks, and we are working closely with them on their deployment plans. Based on those discussions, we see positive signs that some deployments delayed in 2026 will begin to move forward in early 2027.”

“We are reaffirming our revised full-year outlook,” Eppstein continued. “With $111.4 million in cash and no debt, we are investing in RADCOM ACE and our agentic AI roadmap to drive growth. We expect to begin repurchasing shares after the current earnings-related blackout period ends, at management’s discretion. Looking ahead, we remain open to partnerships and targeted acquisitions that expand our solution portfolio, enhance customer value, and deliver greater returns to stakeholders. Together, these steps reflect our confidence in the business and our commitment to building long-term value for our shareholders.”

Third Quarter of 2026 Financial Highlights:

Total revenues for the third quarter of 2026 were $14.0 million, up 19.4% sequentially from $11.8 million in the second quarter of 2026, and down 23.6% year over year from $18.4 million in the third quarter of 2025.GAAP operating loss for the third quarter of 2026 was $0.9 million, or (6.4%) of revenue, compared to GAAP operating income of $2.4 million, or 13.1% of revenue, for the third quarter of 2025.Non-GAAP operating income for the third quarter of 2026 was $0.7 million, or 4.9% of revenue, compared to non-GAAP operating income of $3.8 million, or 20.9% of revenue, for the third quarter of 2025.GAAP net income for the third quarter of 2026 was $0.4 million, or $0.03 per diluted share, compared to GAAP net income of $3.5 million, or $0.21 per diluted share, for the third quarter of 2025.Non-GAAP net income for the third quarter of 2026 was $1.9 million, or $0.11 per diluted share, compared to non-GAAP net income of $4.9 million, or $0.29 per diluted share, for the third quarter of 2025.Cash flow for the third quarter of 2026 was positive at $1.7 million. As of September 30, 2026, the Company had cash, cash equivalents and short-term bank deposits of $111.4 million and no debt, compared to $109.7 million as of June 30, 2026.

First Nine Months of 2026 Financial Highlights:

Total revenues for the first nine months of 2026 were $44.4 million, compared to $52.6 million in the first nine months of 2025, a decline of 15.7% year over year.GAAP operating loss for the first nine months of 2026 was $2.5 million, or (5.6%) of revenue, compared to GAAP operating income of $5.6 million, or 10.7% of revenue, for the first nine months of 2025.Non-GAAP operating income for the first nine months of 2026 was $2.3 million, or 5.1% of revenue, compared to non-GAAP operating income of $10.4 million, or 19.8% of revenue, for the first nine months of 2025.GAAP net income for the first nine months of 2026 was $0.4 million, or $0.02 per diluted share, compared to GAAP net income of $8.3 million, or $0.50 per diluted share, for the first nine months of 2025.Non-GAAP net income for the first nine months of 2026 was $5.1 million, or $0.30 per diluted share, compared to non-GAAP net income of $13.2 million, or $0.79 per diluted share, for the first nine months of 2025.

Recent Highlights:

In the third quarter, VNPT (Vietnam Posts and Telecommunications Group), one of Vietnam’s largest telecom operators with over 30 million subscribers, selected RADCOM to provide AI-native, cloud-native service assurance for its roaming network. Following a competitive request for proposal (RFP) process, RADCOM will replace VNPT’s incumbent assurance vendor, deploying the cloud-native RADCOM ACE platform across multiple cloud environments with AI and machine learning (ML)-based anomaly detection to recognize issues before they affect the customer experience.RADCOM booked a multi-year contract with new customer CETIN Networks in Slovakia in the third quarter to deploy end-to-end, AI-driven assurance across its mobile network, from the radio access network (RAN) to the core, replacing the incumbent assurance provider. CETIN Networks is part of CETIN International and the wider e& PPF Telecom Group, which together serve more than 12 million customers across four countries.In September 2026, RADCOM’s Board of Directors authorized a share repurchase program of up to $20 million of the Company’s ordinary shares, expected to remain in effect for up to 18 months. No shares were repurchased during the third quarter, and the Company expects to begin repurchases at management’s discretion, after the current earnings-related blackout period ends.

Outlook

RADCOM reaffirms its revised full-year 2026 revenue outlook of $57 to $63 million, with a midpoint of $60 million, as announced on July 30, 2026.

Conference Call and Webcast

RADCOM’s management will host an interactive conference call on Wednesday, November 11, 2026, at 8:00 a.m. Eastern Time (3:00 p.m. Israel Time) to discuss the results and answer questions.

Conference call details:

Date / Time: Wednesday, November 11, 2026, at 8:00 a.m. Eastern Time / 3:00 p.m. Israel Time
USA Toll-Free: 1-866-652-8972
USA Toll-Free (alternate): 1-800-994-4498
Local Access: 03-9180609
Webcast (live and replay): https://www.veidan-conferencing.com/radcom

An archived replay of the call will be available on the RADCOM website following the live event.

About RADCOM

RADCOM (Nasdaq: RDCM) is a leading provider of advanced, intelligent assurance solutions with integrated AI Operations (AIOps) capabilities. Its flagship platform, RADCOM ACE, harnesses AI-driven analytics and generative AI (GenAI) to improve customer experiences. From lab testing to full-scale deployment, RADCOM utilizes cutting-edge networking technologies to capture and analyze real-time data. Its advanced 5G portfolio delivers end-to-end network observability, from the radio access network (RAN) to the core.

Designed to be open, vendor-neutral, and cloud-agnostic, RADCOM’s solutions drive next-generation network automation, optimization, and efficiency. By leveraging AI-powered intelligence, RADCOM reduces operational costs, enables predictive customer insights, and seamlessly integrates with business support systems (BSS), operations support systems (OSS), and service management platforms. Offering a complete, real-time view of mobile and fixed networks, RADCOM empowers telecom operators to ensure exceptional service quality, enhance user experiences, and build customer-centric networks.

For all investor inquiries, please contact:

Investor Relations:
Rob Fink or Joey Delahoussaye
FNK IR
rdcm@fnkir.com
646-809-4048 / 312-809-1087

Company Contact:
Hod Cohen
CFO
+972-3-645-5055
hod.cohen@radcom.com

Non-GAAP Information

Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader’s overall understanding of the Company’s financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income (expenses) and amortization of intangible assets related to acquisitions, the Company’s non-GAAP results provide information to both management and investors that is useful in assessing the Company’s core operating performance and in evaluating and comparing the Company’s results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP.

Risks Regarding Forward-Looking Statements

Certain statements made herein that use words such as “estimate,” “project,” “intend,” “expect,” “believe,” “may,” “might,” “potential,” “anticipate,” “plan” or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its full-year 2026 revenue outlook; the timing of customer deployments generally; continued investment by operators in their networks; the strength of its customer relationships building long-term value for shareholders and its investments in RADCOM ACE and its agentic AI roadmap; potential partnerships and targeted acquisitions and the initiation, timing, amount and duration of repurchases of its shares under its share repurchase program, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company’s products, delays in or cancellation of customer deployments, dependence on a limited number of customers, inability to timely develop and introduce new technologies, products, and applications, including AI-based capabilities, loss of market share and pressure on prices resulting from competition, market conditions, share price and other factors affecting whether and when the Company repurchases shares, and the effects of the conflict in Israel. For additional information regarding these and other risks and uncertainties associated with the Company’s business, reference is made to the Company’s reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason, except as required by law.

 

 

 

RADCOM Ltd.

Consolidated Statements of Operations
Unaudited

 

(thousands of U.S. dollars, except share and per share data)

Three months ended
September 30,

Nine months ended
September 30,

2026

2025

2026

2025

Revenues

$ 14,041

$ 18,388

$ 44,386

$ 52,637

Cost of revenues

3,817

4,364

11,260

12,823

Gross profit

10,224

14,024

33,126

39,814

Research and development, gross

5,355

5,119

16,754

14,832

Less – royalty-bearing participation

–

189

113

214

Research and development, net

5,355

4,930

16,641

14,618

Sales and marketing

4,076

5,144

14,224

14,944

General and administrative

1,686

1,535

4,734

4,635

Total operating expenses

11,117

11,609

35,599

34,197

Operating (loss) income

(893)

2,415

(2,473)

5,617

Financial income, net

1,493

1,163

3,513

3,076

Income before taxes on income

600

3,578

1,040

8,693

Taxes on income

159

107

636

344

Net income

$ 441

$ 3,471

$ 404

$ 8,349

Basic net income per ordinary share

$ 0.03

$ 0.21

$ 0.02

$ 0.52

Diluted net income per ordinary share

$ 0.03

$ 0.21

$ 0.02

$ 0.50

Weighted average number of 
 ordinary shares used in computing basic
net income per ordinary share

17,008,033

16,357,554

16,842,641

16,183,572

Weighted average number of 
 ordinary shares used in computing
diluted net income per ordinary share

17,300,951

16,923,983

17,225,321

16,766,553

(*) Less than $ 0.01

 

 

 

RADCOM LTD.

Reconciliation of GAAP to Non-GAAP Financial Information

Unaudited

(thousands of U.S. dollars, except share and per share data)

Three months ended 

Nine months ended

September 30,

September 30,

2026

2025

2026

2025

GAAP gross profit

$                  10,224

$              14,024

$                33,126

$            39,814

Stock-based compensation

88

99

267

298

Amortization of intangible assets

57

57

168

168

Non-GAAP gross profit

$                  10,369

$              14,180

$                  33,561

$           40,280

 

GAAP research and development, net

$                    5,355

$                4,930

$                 16,641

$           14,618

Stock-based compensation

437

421

1,385

1,308

Non-GAAP research and development, net

$                    4,918

$                4,509

$                15,256

$           13,310

 

GAAP sales and marketing

$                    4,076

$                5,144

$                 14,224

$           14,944

Stock-based compensation

521

504

1,634

1,709

Amortization of intangible assets

29

29

87

86

Non-GAAP sales and marketing

$                    3,526

$                4,611

$                12,503

$           13,149

 

GAAP general and administrative

$                    1,686

$                1,535

$                  4,734

$             4,635

Stock-based compensation

450

323

1,183

1,244

Non-GAAP general and administrative

$                    1,236

$                1,212

$                  3,551

$             3,391

 

GAAP total operating expenses

$                  11,117

$              11,609

$                35,599

$           34,197

Stock-based compensation

1,408

1,248

4,202

4,261

Amortization of intangible assets

29

29

87

86

Non-GAAP total operating expenses

$                    9,680

$              10,332

$                 31,310

$           29,850

 

GAAP operating (loss) income

$                    (893)

$                2,415

$                 (2,473)

$             5,617

Stock-based compensation

1,496

1,347

4,469

4,559

Amortization of intangible assets

86

86

255

254

Non-GAAP operating income

$                       689

$                3,848

$                    2,251

$            10,430

 

 

 

RADCOM LTD.

Reconciliation of GAAP to Non-GAAP Financial Information

  Unaudited

 

(thousands of U.S. dollars, except share and per share data)

 

Three months ended

September 30,

Nine months ended

          September 30,

2026

2025

2026

2025

 

GAAP income before taxes on income

$ 600

$ 3,578

$ 1,040

$ 8,693

Stock-based compensation

1,496

1,347

4,469

4,559

Amortization of intangible assets

86

86

255

254

Financial (income) expenses, net

(90)

22

19

49

Non-GAAP income before taxes on income

$ 2,092

$ 5,033

$ 5,783

$ 13,555

 

GAAP net income

$ 441

$ 3,471

$ 404

$ 8,349

Stock-based compensation

1,496

1,347

4,469

4,559

Amortization of intangible assets

86

86

255

254

Financial (income) expenses, net

(90)

22

19

49

Non-GAAP net income

$ 1,933

$ 4,926

$ 5,147

$ 13,211

 

GAAP net income per diluted share

$ 0.03

$ 0.21

$ 0.02

$ 0.50

Stock-based compensation

0.09

0.07

0.27

0.27

Amortization of intangible assets

(*)

0.01

0.01

0.02

Financial (income) expenses, net

(0.01)

(*)

(*)

(*)

Non-GAAP net income per diluted share

$ 0.11

$ 0.29

$ 0.30

$ 0.79

Weighted average number of shares used to compute diluted
net income per share

17,300,951

16,923,983

17,225,321

16,766,553

(*) Less than $ 0.01

 

 

 

RADCOM Ltd.

Consolidated Balance Sheets

                                                                       Unaudited

(thousands of U.S. dollars)

As of

As of

September 30, 2026

December 31, 2025

Current Assets

    Cash and cash equivalents

$ 13,991

$ 30,486

    Short-term bank deposits

97,449

79,437

    Trade receivables, net

19,745

20,245

    Inventories

549

318

    Other accounts receivable and prepaid expenses

2,587

2,036

 

Total Current Assets

134,321

132,522

Non-Current Assets

    Severance pay fund

3,297

3,431

    Other long-term receivables

3,417

2,866

    Property and equipment, net

1,242

988

    Operating lease right-of-use assets

2,135

2,898

    Goodwill and intangible assets, net

2,013

2,269

 

Total Non-Current Assets

12,104

12,452

Total Assets

$ 146,425

$ 144,974

Liabilities and Shareholders’ Equity

Current Liabilities

       Trade payables

$ 2,676

$ 2,632

    Deferred revenues and advances from customers

1,062

1,100

       Employee and payroll accruals

4,405

7,325

    Operating lease liabilities

1,141

1,099

    Other liabilities and accrued expenses

10,587

10,872

 

Total Current Liabilities

19,871

23,028

Non-Current Liabilities

    Accrued severance pay       

4,581

4,790

    Operating lease liabilities

1,329

2,135

    Other liabilities and accrued expenses

1,164

916

 

Total Non-Current Liabilities

7,074

7,841

Total Liabilities

$ 26,945

$ 30,869

Shareholders’ Equity

     Share capital

$ 839

$ 809

     Additional paid-in capital

172,151

167,172

        Accumulated other comprehensive loss

(2,961)

(2,923)

     Accumulated deficit

(50,549)

(50,953)

Total Shareholders’ Equity

119,480

114,105

 

Total Liabilities and Shareholders’ Equity

$ 146,425

$ 144,974

 

 

 

View original content:https://www.prnewswire.com/news-releases/radcom-reports-third-quarter-2026-results-302936352.html

SOURCE RADCOM Ltd.

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IBM Quantum Nighthawk Demonstrates New Levels of Speed and Quality, with Plans to Scale Beyond 1,000 Qubits in 2027

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New Nighthawk r3 processor will be built to execute 10,000 quantum operations, enabling larger and more complex computations as IBM advances its roadmap toward fault tolerance

Clients and partners including E.ON, Algorithmiq, and Q-CTRL have run more than 34 billion circuits on Nighthawk r2, reporting speedups of up to 19x beyond previous IBM quantum processors

Enhanced IBM Quantum Platform unites quantum with classical computing in one environment

YORKTOWN HEIGHTS, N.Y., Nov. 11, 2026 /PRNewswire/ — IBM (NYSE: IBM) today announced IBM Quantum Nighthawk r3, its next-generation processor, will be built to accurately execute 10,000 quantum operations across 520 qubits to tackle larger, more complex problems while maintaining the speed and quality demonstrated by the current generation Nighthawk available today.

In 2027, IBM plans to link two Nighthawk r3 processors into a single system with more than 1,000 qubits.

To be at the frontier of quantum computing, industry-relevant applications demand both computational quality and speed. Speed matters because a quantum computer delivers its answer in samples: each run of a quantum circuit returns one result. Applications increasingly require circuits executing thousands of quantum operations on approximately 100 qubits or more, generating millions to billions of samples. Scale and quality enable increasingly complex computations, but speed determines whether these demanding workloads can be completed in practical timeframes and at a reasonable cost.

“Useful quantum computing hinges on whether results can be delivered with accuracy and speed, both are fundamental,” said Jay Gambetta, Director of IBM Research and IBM Fellow. “Nighthawk is already showing us what that looks like today. As we scale this architecture to larger and more powerful quantum computers, the capabilities of quantum computation will reach new levels as we integrate more closely with classical resources and march ahead to fault tolerance.”

Nighthawk r2: Delivering Speed for Real-World Workloads

Introduced in September, IBM Quantum Nighthawk r2 delivers up to 100,000 samples per second while supporting accurate computations with more than 7,500 quantum operations on 120 qubits. Its high-speed qubit reset technology dramatically reduces the time between circuit executions, enabling applications to collect the millions or billions of samples needed for complex computations far more efficiently.

Clients and partners including E.ON, Algorithmiq, and Q-CTRL have executed 34 billion circuits on Nighthawk r2 to date, reporting performance improvements of up to 19x while maintaining the quality needed for scientific computation.

The results are already demonstrating value across industries. E.ON reported a 15x speedup on Nighthawk r2 in quantum machine learning for energy grid optimization. IBM used Nighthawk r2 for a 12x speedup of an experiment ran earlier this year with Oak Ridge National Laboratory, which simulated real magnetic materials and produced results consistent with neutron scattering experiments. Both of these speedups were achieved over previous work on IBM Quantum Heron. Quantum Elements and ParityQC are also among the partners reporting significant performance improvements on their own Nighthawk r2 workloads.

The quantum advantage experiments IBM and its partners published in July were first run on IBM Quantum Heron, with circuits and results openly available for independent testing through the community-led Quantum Advantage Tracker. An experiment with Algorithmiq to simulate a heterogeneous quantum material has now been extended to Nighthawk r2, leveraging its speed and connectivity to execute circuits 8 times faster than the original experiment on Heron. At the same time, the new circuits are significantly more challenging for classical computers to simulate, requiring an estimated 240 times more memory to achieve comparable accuracy when using leading classical tensor-network methods.

Nighthawk r3: Scaling to More Than 1,000 Qubits

Building on the performance demonstrated by Nighthawk r2, Nighthawk r3 will extend the same high-speed architecture to larger quantum computers. The new processor is designed to support 10,000 quantum operations on 520 programmable qubits, with 2,034 total physical qubits. It retains r2’s square-lattice connectivity and fast operations while introducing 10 chip-to-chip interconnects, called l-couplers, designed to connect processors into larger systems.

IBM has already demonstrated two critical technologies that enable this modular approach. This year, IBM connected Nighthawk r1 processors using four l-couplers, achieving 99.3 percent quantum state transfer fidelity and progressing toward its 99.9 percent target. IBM also connected two cryogenic modules into a single system for the first time, reaching operating temperature in under five days and cooling below 15 millikelvin.

Together, these advances demonstrate critical progress in modularity and provide confidence in IBM’s ability to scale Nighthawk to larger quantum computers. In 2027, IBM plans to connect two Nighthawk r3 processors into a single 1,040-qubit system, extending its high-performance architecture to larger and more complex computations.

Quantum Meets Classical on the IBM Quantum Platform

Advancing quantum computers requires continued progress in how they work alongside classical compute to handle errors. Industry-relevant workloads will demand layers of quantum error correction and error mitigation techniques alongside noise learning and post-processing. As quantum workloads scale, they will call for more classical resources, and the challenge now is how to best scale this integration.

To unite these paradigms, IBM Quantum Platform is bringing high-performance (HPC) classical and quantum computing together into a single managed environment. Users can now integrate quantum workflows directly with a range of classical compute – whether from their laptop or a powerful supercomputer – or with the HPC and classical resources that are newly available on the platform.

Users are seeing promising results from these integrations. For example, using the new environment, IBM and RIKEN* scientists executed their original sample-based quantum diagonalization (SQD) workflow roughly 5 times faster while performing 100 times more computations than in the original study. Cleveland Clinic and RIKEN also leveraged the platform to automatically process 608 million samples for modeling biologically relevant structures, 33 times faster than without workflow automation.

Enhanced capabilities will also fuel breakthroughs in quantum error correction. IBM Quantum Platform offers pulse-level capabilities to give researchers precise control over how they can detect, understand, and better correct errors within quantum and classical architectures. This helps them better time operations, reset qubits faster, and extract more information from quantum measurements – giving researchers the visibility to improve error correction at its most fundamental levels.

IBM recently launched a new co-design platform for quantum error correction with Oak Ridge National Laboratory and AMD that physically co-locates Nighthawk with ORNL’s Umbra High-Performance Computing (HPC) system, powered by AMD Instinct™ MI355X GPUs and 5th Gen AMD EPYC™ CPUs.

About IBM

IBM is a leading global hybrid cloud and AI, and business services provider, helping clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Thousands of governments and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

For more information, visit https://research.ibm.com.

Media contacts:
Brittany Forgione
IBM
Brittany.forgione@ibm.com

Erin Angelini
IBM
edlehr@us.ibm.com

* This project is supported by NEDO (New Energy and Industrial Technology Development Organization), an organization under the jurisdiction of Japan’s Ministry of Economy, Trade and Industry (METI)’s “Research and Development of Quantum-Supercomputers Hybrid Platform for Exploration of Uncharted Computable Capabilities” (Project Leader: Mitsuhisa Sato) as part of the “Project for Research and Development of Enhanced Infrastructures for Post 5G Information and Communications Systems (JPNP20017).”

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NewDay USA Honors Veterans Day with $1 Million Donation to Support New Fisher House in West Palm Beach

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Gift supports a larger, 16-suite house for Veteran families, building on NewDay’s year-round commitment to serving those who have served

WEST PALM BEACH, Fla., Nov. 11, 2026 /PRNewswire/ — This Veterans Day, NewDay USA, a national mortgage lending company serving the Veteran community, announced its $1 million donation to Fisher House Foundation in support of the new Fisher House at the West Palm Beach VA Medical Center. The gift supports construction of a larger, more accessible facility where Veteran families can stay close to their loved ones during medical care, at no cost to them. 

“Helping Veterans and Service Members achieve the American Dream of homeownership is at the heart of NewDay’s mission, but our commitment to those who have served extends well beyond that,” said Rob Posner, CEO of NewDay USA. “When a Veteran needs medical care, their family should be able to focus on being there for them, not worrying about the cost of where they stay. It is our privilege to support Fisher House and help more military families stay together when they need each other the most.”

The new Fisher House will replace the smaller existing house on the VA campus, expanding to 16 fully wheelchair-accessible suites. The original facility lacks an elevator and full accessibility, limiting its ability to accommodate some families with mobility needs. The new house will provide both greater capacity and more accessible accommodations to better meet the needs of the Veteran community.

“More space and fully accessible suites mean we can welcome more families and better meet their needs,” said David Coker, President of Fisher House Foundation. “We are grateful to NewDay USA for helping make this new Fisher House possible and for the employees who give their time to support our guests throughout the year. Their generosity will help more families focus on what matters most: being there for a loved one receiving care.”

The donation builds on NewDay’s ongoing involvement with the West Palm Beach VA Medical Center and Fisher House. NewDay employees regularly volunteer at both facilities and serve dinner at Fisher House each month, offering a warm meal and a welcoming connection to families spending time away from home.

“On Veterans Day and every day, we have a responsibility to honor the service and sacrifice of our nation’s Veterans and the families who stand beside them,” said Admiral Thomas Lynch, Executive Chairman of NewDay USA. “Supporting Fisher House is a meaningful way to put that gratitude into action. Whether we are helping build this new house or serving dinner to the families staying there, our message is the same: your service is remembered, and you are not alone.”

About NewDay USA
A leader in Veteran mortgage lending for more than 25 years, NewDay USA has proudly served more than 100,000 Veteran families nationwide. From buying a new home to refinancing, NewDay’s goal is to ensure Veteran families improve their credit and get back on the road to savings to live the lives they always imagined and deserve.

NewDay has an industry-leading Government National Mortgage Association (GNMA) record of loan performance with a delinquency rate that is two times lower than the industry average. Today, 95 percent of NewDay USA’s clients are enlisted Veterans. For additional information, visit www.newdayusa.com.

View original content:https://www.prnewswire.com/news-releases/newday-usa-honors-veterans-day-with-1-million-donation-to-support-new-fisher-house-in-west-palm-beach-302936159.html

SOURCE NewDay USA

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