Technology
Velo3D Announces First Quarter 2026 Financial Results
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2 hours agoon
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Revenue of $13.8 million, up 48% year-over-yearGross margin of 17.2%Reaffirms outlook for 2026 revenue between $60 million and $70 million and to turn EBITDA positive in the second half of 2026
FREMONT, Calif., May 12, 2026 /PRNewswire/ — Velo3D, Inc. (Nasdaq: VELO) (“Velo3D” or the “Company”), a leader in additive manufacturing (“AM”) technology known for transforming aerospace and defense supply chains through world-class metal AM, today announced financial results for its first quarter ended March 31, 2026.
Recent Business Developments
Awarded a $9.8 million, five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract supporting the Defense Logistics Agency’s (DLA) Joint Additive Manufacturing Acceptability (JAMA) Pilot Parts Program, an initiative aimed at accelerating adoption of additively manufactured components across Department of War sustainment operations.Appointed Jim Suva as Chief Financial Officer.Closed a firm commitment underwritten registered direct offering in April 2026 of 3,571,428 shares of common stock, with gross proceeds of approximately $50 million.
“For the first quarter, we delivered a strong start to 2026 with revenue up 48% year‑over‑year, reflecting recent sales momentum and disciplined execution across our end markets,” said Arun Jeldi, CEO of Velo3D. “Importantly, we achieved positive gross margin this quarter, a key inflection point that validates our operating model as we scale production and continue to drive cost efficiency. With a robust pipeline of opportunities, we believe we have a solid foundation for continued growth.”
“Demand remains particularly strong in defense and aerospace, where customers are prioritizing scalable, high‑performance additive manufacturing solutions. To support this demand and accelerate our expansion, we completed a successful equity offering in April, securing additional capital to invest in talent and operational infrastructure. We believe our competitive position is strengthening as we deepen customer relationships and expand into new programs. We remain focused on executing our expansion plans to capture these opportunities and drive long‑term value creation.”
($ in Millions, except percentages and per-share data)
1st Quarter 2026
1st Quarter 2025
GAAP revenue
$13.8
$9.3
GAAP gross margin
17.2 %
7.5 %
GAAP net loss1
($7.0)
($25.0)
GAAP net loss per share – basic and diluted
($0.28)
($1.87)
Non-GAAP net loss1,2
($5.1)
($9.0)
Non-GAAP net loss per share – basic and diluted1,2
($0.20)
($0.67)
Information about Velo3D’s use of non-GAAP information, including a reconciliation to accounting principles generally accepted in the United States of America (“GAAP”), is provided at the end of this release under “Non-GAAP Financial Information”. The non-GAAP financial measures presented in this release should not be considered as the sole measure of the Company’s performance and should not be considered in isolation from, or as a substitute for, comparable financial measures calculated in accordance with GAAP.
Non-GAAP net loss and non-GAAP net loss per basic and diluted share exclude stock-based compensation expense, loss on warrant cancellation, fair value adjustments for the Company’s warrants and earnout liabilities, impairment of equipment subject to operating lease, and non-routine inventory adjustments for excess and obsolete inventory.
Summary of First Quarter 2026 Results
Total Revenue was $13.8 million. 3D Printer and parts revenue increased 60% compared to the first quarter of 2025, driven by an increase in the average selling price, number of systems sold, and an increase in RPS revenues. While system sales are expected to remain the primary driver of revenue in 2026, the Company anticipates that, under its new go-to-market strategy, its RPS parts production business will contribute an increasing share of revenue.
Gross margin for the first quarter was 17.2% compared to 7.5% in the first quarter of 2025. This change was primarily driven by the higher average selling price of Sapphire XC systems and increased RPS volume.
Operating expenses for the first quarter were $9.3 million compared to $12.2 million in the first quarter of 2025. Non-GAAP adjusted operating expenses, excluding stock-based compensation recorded in operating expenses of $1.2 million, were $8.1 million, down from $8.8 million in the first quarter of 2025.
GAAP net loss for the first quarter was ($7.0) million compared to ($25.0) million in the first quarter of 2025. Non-GAAP net loss for the first quarter was ($5.1) million compared to ($9.0) million in the three months ended March 31, 2025. Adjusted EBITDA for the first quarter was ($3.6) million compared to ($6.9) million in the first quarter of 2025. For more information regarding the Company’s non-GAAP financial measures, see “Non-GAAP Financial Information” below.
As of March 31, 2026, the Company had $16.6 million of cash and cash equivalents, compared to $39.0 million as of December 31, 2025. As of March 31, 2026, the Company had $12 million in new bookings and ending backlog of $30 million.
“On April 27, 2026, the Company closed a firm commitment underwritten registered direct offering of 3,571,428 shares of its common stock, with gross proceeds of approximately $50 million,” said Jim Suva, CFO of Velo3D. “During the first quarter of 2026, the Company also completed debt-to-equity conversions totaling principal of $15 million, including $5 million converted at a premium to the Company’s share price on the date of conversion, and full repayment of the secured notes. As a result, we reduced our outstanding debt by approximately 70% to approximately $9 million.”
Guidance
Management reiterates expectations for the full year 2026 to include:
Revenue in the range of $60 million to $70 million.Sequential improvement in gross margin.Greater than 30% gross margin in second half of 2026.Non-GAAP adjusted operating expenses in the range of $45 million to $55 million.Capital expenditures in the range of $40 million to $50 million, primarily for RPS expansion, subject to the availability of sufficient financing.Positive EBITDA in the second half of 2026.
Conference Call
The Company will host a conference call for investors to discuss its first quarter 2026 financial results at 5 p.m. Eastern time / 2 p.m. Pacific time on May 12, 2026. The call will be webcast and can be accessed from the Events page of the Investor Relations section of Velo3D’s website at ir.velo3d.com.
About Velo3D:
Velo3D is a metal 3D printing technology company that enables customers to build mission-critical metal parts. The fully integrated solution includes the Flow print preparation software, the Sapphire® family of printers, and the Assure quality control system—all of which are powered by Velo3D’s Intelligent Fusion® manufacturing process.
Amounts herein pertaining to the Company’s first quarter ended March 31, 2026 results represent a preliminary estimate as of the date of this earnings release and may be revised upon filing of our Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission (the “SEC”). Additional information on our results of operations for the three months ended March 31, 2026 will be provided upon the filing of our Quarterly Report on Form 10-Q with the SEC.
Forward-Looking Statements:
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “forecast”, “anticipate”, “intend”, “plan”, “may”, “will”, “could”, “should”, “believes”, “predicts”, “potential”, “continue”, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company’s guidance for fiscal year 2026 (including the Company’s estimates for revenue, gross margin, operating expenses, and capital expenditures), the Company’s expectations regarding its ability to achieve positive EBITDA in the second half of 2026, the Company’s expectations about future demand, growth, profitability, long-term value, capacity requirements and operational efficiencies, scaled production, pipeline of opportunities, customer priorities, positive gross margins, the Company’s expectations regarding its liquidity and capital requirements, including plans to raise additional capital to support its expansion and the potential sources and uses of that capital, the Company’s expectations regarding its potential cost savings, the Company’s expectations about its market strategy and financial and operational position, the Company’s expectations that the RPS parts production business will contribute an increasing share of revenue, and the Company’s other expectations, beliefs, intentions or strategies for the future. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. You should carefully consider the risks and uncertainties described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “FY 2025 10-K”) and its Quarterly Reports on Form 10-Q (“Quarterly Reports”) and the other documents filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Most of these factors are outside the Company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the inability of the Company to execute its business plan, which may be affected by, among other things, competition, the Company’s liquidity position/lack of available cash, the ability of the Company to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its key employees; (2) the Company’s ability to continue as a going concern; (3) the Company’s ability to service and comply with its indebtedness; (4) the Company’s ability to raise additional capital in the near-term; (5) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (6) changes in the applicable laws and regulations; (7) risks related to the Company’s exposure to government and defense contracts, including potential delays or reductions in government funding, government shutdowns, changes in defense procurement priorities or spending levels, and the timing and uncertainty of government contract awards and modifications; and (8) other risks and uncertainties described in the FY 2025 10-K and the Quarterly Reports, including those under “Risk Factors” therein, and in the Company’s other filings with the SEC. The Company cautions that the foregoing list of factors is not exclusive and not to place undue reliance upon any forward-looking statements, including projections, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by applicable law.
Non-GAAP Financial Information
The information in the table below sets forth the non-GAAP financial measures that the Company uses in this release. Because of the inherent limitations associated with these non-GAAP financial measures, “Non-GAAP Net Loss”, “Non-GAAP net loss per basic and diluted share”, “EBITDA”, “Adjusted EBITDA” and “Non-GAAP Adjusted Operating Expenses”, should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may differ from, and should not be compared to, similarly named measures used by other companies. The Company compensates for these limitations by relying primarily on its GAAP results and using Non-GAAP Net Loss, Non-GAAP net loss per basic and diluted share, EBITDA, Adjusted EBITDA, and Non-GAAP Adjusted Operating Expenses on a supplemental basis. You should review the reconciliation of the non-GAAP financial measures below and not rely on any single financial measure to evaluate the Company’s business.
Management believes adjusted “Non-GAAP Net Loss”, “Non-GAAP net loss per basic and diluted share”, “EBITDA”, “Adjusted EBITDA” and “Non-GAAP Adjusted Operating Expenses” are useful to investors because they allow for comparison to the Company’s performance in prior periods without the effect of items that, by their nature, tend to obscure the Company’s core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. As a result, management believes that these measures enhance the ability of investors to analyze trends in the Company’s business and evaluate the Company’s performance relative to peer companies.
Reconciliations of the differences between these non-GAAP financial measures and their most directly comparable financial measures calculated in accordance with GAAP are set forth below.
The Company’s non-GAAP adjusted operating expenses are calculated by excluding stock-based compensation recorded in operating expenses. The Company’s non-GAAP EBITDA is calculated by excluding interest expense, provision (benefit) for income taxes, and depreciation and amortization. With respect to the Company’s 2026 financial guidance regarding non-GAAP adjusted operating expenses and non-GAAP EBITDA, the Company cannot provide a quantitative reconciliation to the most directly comparable GAAP measure without unreasonable effort due to its inability to make accurate projections and estimates related to certain information needed to calculate some of the adjustments as described above.
Velo3D, Inc.
Non-GAAP Net Loss Reconciliation
(Unaudited)
Three months ended
March 31, 2026
December 31, 2025
March 31, 2025
($ In thousands)
% of Rev
% of Rev
% of Rev
Revenue
$
13,816
100.0
%
$
9,441
100.0
%
$
9,320
100.0
%
Gross profit (loss)
2,381
17.2
%
(6,946)
(73.6)
%
697
7.5
%
Net Loss
$
(6,998)
(50.7)
%
$
(21,897)
(231.9)
%
$
(25,014)
(268.4)
%
Stock-based compensation
1,889
13.7
%
2,175
23.0
%
3,596
38.6
%
Loss on warrant cancellation
—
—
%
—
—
%
11,357
121.9
%
Loss on fair value of warrants
—
—
%
96
1.0
%
1,044
11.2
%
Impairment of equipment subject to operating lease
—
—
%
1,066
11.3
%
—
—
%
Gain on fair value of contingent earnout liabilities
—
—
%
(10)
(0.1)
%
—
—
%
Non-routine inventory adjustment for excess and obsolete inventory
—
—
%
6,979
73.9
%
—
—
%
Non-GAAP Net Loss
$
(5,109)
(37.0)
%
$
(11,591)
(122.8)
%
$
(9,017)
(96.7)
%
Velo3D, Inc.
Non-GAAP Adjusted EBITDA Reconciliation
(Unaudited)
Three months ended
March 31, 2026
December 31, 2025
March 31, 2025
($ In thousands)
% of Rev
% of Rev
% of Rev
Revenue
$
13,816
100.0
%
$
9,441
100.0
%
$
9,320
100.0
%
Net Loss
(6,998)
(50.7)
%
(21,897)
(231.9)
%
(25,014)
(268.4)
%
Interest expense
733
5.3
%
524
5.6
%
1,070
11.5
%
Provision (benefit) for income taxes
26
0.2
%
34
0.4
%
8
0.1
%
Depreciation and amortization
762
5.5
%
1,026
10.9
%
995
10.7
%
EBITDA
$
(5,477)
(39.6)
%
$
(20,313)
(215.2)
%
$
(22,941)
(246.1)
%
Stock-based compensation
1,889
13.7
%
2,175
23.0
%
3,596
38.6
%
Loss on warrant cancellation
—
—
%
—
—
%
11,357
121.9
%
Loss on fair value of warrants
—
—
%
96
1.0
%
1,044
11.2
%
Impairment of equipment subject to operating lease
—
—
%
1,066
11.3
%
—
—
%
Gain on fair value of contingent earnout liabilities
—
—
%
(10)
(0.1)
%
—
—
%
Non-routine inventory adjustment for excess and obsolete inventory
—
—
%
6,979
73.9
%
—
—
%
Non-GAAP Adjusted EBITDA
$
(3,588)
(26.0)
%
$
(10,007)
(106.0)
%
$
(6,944)
(74.5)
%
Velo3D, Inc.
Non-GAAP Adjusted Operating Expenses Reconciliation
(Unaudited)
Three months ended
March 31, 2026
December 31, 2025
March 31, 2025
($ In thousands)
% of Rev
% of Rev
% of Rev
Revenue
$
13,816
100.0
%
$
9,441
100.0
%
$
9,320
100.0
%
Operating expenses
Research and development
2,695
19.5
%
3,283
34.8
%
2,059
22.1
%
Selling and marketing
1,721
12.5
%
2,415
25.6
%
1,086
11.7
%
General and administrative
4,912
35.6
%
9,163
97.1
%
9,076
97.4
%
Total operating expenses
$
9,328
67.5
%
$
14,861
157.4
%
$
12,221
131.1
%
Stock-based compensation recorded in operating expenses
1,246
9.0
%
1,533
16.2
%
3,387
36.3
%
Non-GAAP Adjusted operating expenses
$
8,082
58.5
%
$
13,328
141.2
%
$
8,834
94.8
%
Velo3D, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
The three months ended March 31,
2026
2025
Revenue
3D Printer and parts
$
12,021
$
7,523
Recurring payment
—
—
Support services
1,269
1,790
Other
526
7
Total Revenue
13,816
9,320
Cost of revenue
3D Printer and parts
10,225
7,540
Recurring payment
—
12
Support services
1,210
1,071
Total cost of revenue
11,435
8,623
Gross profit
2,381
697
Operating expenses
Research and development
2,695
2,059
Selling and marketing
1,721
1,086
General and administrative
4,912
9,076
Total operating expenses
9,328
12,221
Loss from operations
(6,947)
(11,524)
Interest expense
(733)
(1,070)
Loss on fair value of warrants
—
(1,044)
Loss on warrant cancellation
—
(11,357)
Other income (expense), net
708
(11)
Loss before income taxes
(6,972)
(25,006)
Provision for income taxes
(26)
(8)
Net loss
$
(6,998)
$
(25,014)
Net loss per share:
Basic and Diluted
$
(0.28)
$
(1.87)
Shares used in computing net loss per share:
Basic and Diluted
25,021,065
13,398,104
Velo3D, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
March 31,
December 31,
2026
2025
Assets
Current assets:
Cash and cash equivalents
$
16,564
$
39,013
Accounts receivable, net
6,732
6,263
Inventories, net
28,104
27,083
Contract assets
4,120
2,039
Prepaid expenses and other current assets
9,650
5,722
Total current assets
65,170
80,120
Property and equipment, net
16,387
13,094
Equipment subject to operating lease, net
1,054
1,629
Other assets
9,793
10,505
Total assets
$
92,404
$
105,348
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
9,089
$
10,301
Accrued expenses and other current liabilities
6,655
7,915
Debt – current portion
3,135
6,305
Contract liabilities
7,739
9,281
Total current liabilities
26,618
33,802
Long-term debt – less current portion
6,037
24,710
Contingent earnout liabilities
1
1
Warrant liabilities
109
109
Other noncurrent liabilities
8,099
8,570
Total liabilities
40,864
67,192
Stockholders’ equity:
Common stock, $0.00001 par value – 500,000,000 shares authorized at March 31, 2026 and December 31, 2025, 26,216,822 and 24,607,630 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
5
5
Additional paid-in capital
556,676
536,294
Accumulated deficit
(505,141)
(498,143)
Total stockholders’ equity
51,540
38,156
Total liabilities and stockholders’ equity
$
92,404
$
105,348
Velo3D, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
The three months ended March 31,
2026
2025
Cash flows from operating activities
Net loss
$
(6,998)
$
(25,014)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization
762
995
Amortization of debt discount and deferred financing costs
17
48
Stock-based compensation
1,889
3,596
Loss on fair value of warrants
—
1,044
Loss on warrant cancellation
—
11,357
Non-cash lease expense
59
28
Changes in operating assets and liabilities
Accounts receivable
(469)
(846)
Inventories
672
1,989
Contract assets
(2,081)
(795)
Prepaid expenses and other current assets
(3,928)
(3,407)
Other assets
648
1,224
Accounts payable
(5,504)
(860)
Accrued expenses and other liabilities
(1,032)
1,195
Contract liabilities
(1,542)
(2,671)
Other noncurrent liabilities
(471)
(232)
Net cash used in operating activities
(17,978)
(12,349)
Cash flows from investing activities
Purchase of property and equipment
(940)
—
Net cash used in investing activities
(940)
—
Cash flows from financing activities
Proceeds from convertible secured notes
—
15,000
Repayment of 2025 equipment loan
(496)
—
Repayment of secured notes
(3,039)
—
Net cash (used in) provided by financing activities
(3,535)
15,000
Effect of exchange rate changes on cash and cash equivalents
(1)
7
Net change in cash and cash equivalents
(22,454)
2,658
Cash and cash equivalents and restricted cash at beginning of period
39,641
1,840
Cash and cash equivalents and restricted cash at end of period
$
17,187
$
4,498
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the total of such amounts shown on the condensed consolidated statements of cash flows:
The three months ended March 31,
2026
2025
Cash and cash equivalents
$
16,564
$
3,870
Restricted cash (Other assets)
623
628
Total cash and cash equivalents and restricted cash
$
17,187
$
4,498
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SOURCE Velo3D, Inc.
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Brightstar Lottery PLC (NYSE: BRSL) is global leader in lottery focused on innovation and forward-thinking strategies and solutions, building on our renowned expertise in delivering secure technology and producing reliable, comprehensive solutions for our customers. As a premier pure play global lottery company, our best-in-class lottery operations, retail and digital solutions, and award-winning lottery games enable our customers to achieve their goals, entertain players and distribute meaningful benefits to communities. Brightstar has a well-established local presence and is a trusted partner to governments and regulators around the world, creating value by adhering to the highest standards of service, integrity, and responsibility. Brightstar serves nearly 90 lottery customers and their players on six continents. It is the primary technology provider to 26 of the 46 lottery jurisdictions in the U.S. and eight of the world’s 10 largest lotteries. Brightstar has approximately 6,000 employees. For more information, please visit www.brightstarlottery.com or follow along on LinkedIn.
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning Brightstar Lottery PLC and its consolidated subsidiaries (the “Company”) and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, products and services, customer relationships, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “would,” “should,” “shall,” “continue,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) macroeconomic, regulatory and political uncertainty, including as a result of new or increased tariffs, trade wars, and other restrictions on trade between or among countries in which the Company operates, and related changes in discretionary consumer spending and behavior, fluctuations in foreign currency exchange rates, and the other factors and risks described in the Company’s annual report on Form 20-F for the financial year ended December 31, 2025 and other documents filed or furnished from time to time with the SEC, which are available on the SEC’s website at www.sec.gov and on the investor relations section of the Company’s website at www.brightstarlottery.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that may affect the Company’s business. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement. All subsequent written or oral forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by this cautionary statement.
Contact:
Mike DeAngelis, Corporate Communications, +1 (401) 392-1000, mike.deangelis@brightstarlottery.com
Matteo Selva, Italian media inquiries, +39 366 6803635
James Hurley, Investor Relations, +1 (401) 392-7190
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SOURCE Brightstar Lottery PLC
Technology
goeasy Ltd. Reports Results for the First Quarter 2026
Published
47 minutes agoon
May 12, 2026By
Loan Portfolio of $5.36 billion at Q1/26 end, up 12% from $4.80 billion at Q1/25 end
Revenue of $413 million in Q1/26, up 2% compared to $405 million in Q1/25
Net Charge Off Rate1 of 17.8% in Q1/26, up 890 bps from 8.9% in Q1/25
Diluted Loss Per Share of $3.22 in Q1/26, down from diluted EPS of $2.28 in Q1/25
Adjusted Diluted Loss Per Share1 of $1.90 in Q1/26, down from Adj. Dil. EPS1 of $3.49 in Q1/25
MISSISSAUGA, ON, May 12, 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 first quarter ended March 31, 2026.
“We continued to advance our six-point action plan in the first quarter, with cost efficiency measures already taking effect,” said Patrick Ens, goeasy’s Chief Executive Officer. “In March, we took decisive action to significantly reduce our exposure to merchant-originated loans. Our ending loan book size, total yield, and net charge off rate came in as expected. Our direct-to-consumer business remains strong, and with $560.1 million cash provided by operations before net principal written in the quarter, our liquidity position is solid as we manage through this transitional period.”
First Quarter Results
During the quarter, the Company generated $551.3 million in loan originations, down 19% compared to $676.8 million generated in the first quarter of 2025. The decrease in lending, consistent with the Company’s six-point action plan, was driven primarily by a reduction in merchant-originated automotive and powersports loan originations, as the Company implemented tighter credit underwriting measures in response to unfavourable credit performance in those portfolios.
At quarter end, the consumer loan portfolio was $5.36 billion, up 12% from $4.80 billion at the end of the first quarter of 2025, but down $150.0 million or 3% from the end of the fourth quarter of 2025. Organic growth in the Company’s consumer loan portfolio was the main driver of growth in revenue, which increased 2% from $404.9 million in the first quarter of 2025 to $412.9 million in the first quarter of 2026. Total annualized yield (including ancillary products) realized on average consumer loans receivable1 was 27.9% in the quarter, down 330 bps from the same period in 2025, but up 130 bps from the fourth quarter of 2025. Total annualized yield decreased year-over-year mainly due to the impact of higher allowance for credit losses on interest receivable; the continued impact of the lowered maximum allowable rate of interest on the Company’s unsecured lending product; and a higher proportion of larger dollar value loans, which have reduced pricing on certain ancillary products.
During the quarter, the annualized net charge off rate was 17.8%, up 890 bps from 8.9% in the first quarter of 2025, but down 600 bps from the fourth quarter of 2025. Annualized net charge off rate increased year -over-year primarily due to higher charge offs in the merchant-originated automotive and powersports loan portfolios. The total allowance for credit losses on gross consumer loans increased to $541.2 million from $382.8 million as at March 31, 2025, mainly due to the Company’s current view of collectability and an increase in the credit loss outlook for the merchant-originated automotive and powersports loans. 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 9.57% as at December 31, 2025 to 10.09% as at March 31, 2026, driven primarily by unfavourable changes in the macroeconomic forecast data used in the Company’s IFRS 9 allowance model.
Operating income for the first quarter of 2026 was $28.9 million, down 80% from $144.1 million in the first quarter of 2025. After adjusting for unusual and non-recurring items, the Company reported adjusted operating income2 of $36.9 million, a decrease from $147.4 million in the first quarter of 2025. The efficiency ratio1 for the first quarter of 2026 was 24.5%, a 160 bps improvement from 26.1% in the first quarter of 2025.
Net loss for the first quarter of 2026 was $53.0 million, down from net income of $38.7 million in the first quarter of 2025, and diluted loss per share was $3.22, down from diluted earnings per share of $2.28 reported in the first quarter of 2025. Adjusted net loss2 for the first quarter of 2026 was $31.3 million, down from adjusted net income2 of $59.3 million in the first 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 $1.90, down from adjusted diluted earnings per share1 of $3.49 in the first quarter of 2025.
Balance Sheet and Liquidity
Total assets were $5.82 billion as at March 31, 2026, an increase of 9% from $5.34 billion as at March 31, 2025, primarily driven by growth in consumer loans receivable and cash. Cash provided by operations before net principal written2 in the first quarter of 2026 was $560.1 million, compared to $410.7 million in the first quarter of 2025. The Company’s debt-to-adjusted tangible equity ratio3, a capital management measure for leverage, was 5.30x as at March 31, 2026, compared to 3.69x as at March 31, 2025. The average blended coupon interest rate for the Company’s debt as at March 31, 2026 was 6.6%.
As at March 31, 2026, goeasy had liquidity (cash on hand plus unused contractual borrowing capacity) of $1.10 billion (of which $743 million is not currently available to be drawn by the Company). Subsequent to quarter end, the Company used existing liquidity to repay the US$64.6 million senior unsecured notes that matured on May 1, 2026. The Company was not subject to financial covenant compliance, and was in compliance with all other applicable covenants, for the Revolving Securitization Warehouse Facility I as at March 31, 2026. The Company was in compliance with all of its covenants (including financial covenants) under its Revolving Credit Facility agreement as at March 31, 2026. The Company continues to progress toward transitioning to a replacement backup servicer and completing a satisfactory audit in respect of the Revolving Securitization Warehouse Facility I, completion of which will permit additional draws on the facility.
Selected Additional First Quarter Information
(March 31, 2026 relative to March 31, 2025, where applicable)
44% of gross consumer loans receivable secured, down from 46%Total number of active lending customers at 466,000, up 7%71% of net loan advances1 in the quarter were issued to new customers, down from 73%Weighted average interest rate4 on consumer loans of 28.5%, up from 26.5%86.6% 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
Updated 2026 Outlook
The Company disclosed its first quarter 2026 outlook, along with the relevant assumptions and risk factors, in its fourth quarter 2025 MD&A. The Company’s actual first quarter performance was consistent with its first quarter 2026 outlook across all three measures. The Company continues to focus on prudent management of liquidity, strengthening of credit performance, and alignment of its capital structure. Management remains confident in goeasy’s ability to return to its long track record of strong credit performance and returns that will reinforce confidence among shareholders and other stakeholders.
Q2 2026 Outlook
Full Year 2026 Commentary
Gross consumer loans receivable at period end
$4.9 to $5.1 billion
Expected to decline from December 31, 2025 level before resuming growth in the later part of the year
Total yield on consumer loans (including ancillary products)1
27.0% to 28.5%
Expected to improve over course of the year as charge offs decline
Net charge offs as a percentage of average gross consumer loans receivable1
16.0% to 17.5%
Expected to be in the mid-teens for full year 2026; improvement is expected as the year progresses
This outlook is subject to and based on the assumptions and risks set out in more detail under “Forward-Looking Statements”.
Share Repurchases and Dividend Payments
In consideration of recent developments that affected earnings in 2025, the Board of Directors (the “Board”) 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.
Adoption of Shareholder Rights Plan
The Company also announced today that the Board has approved the adoption of a shareholder rights plan (the “SRP”) pursuant to a shareholder rights plan agreement entered into with TSX Trust Company, as rights agent, dated May 12, 2026 (the “Effective Date”).
The SRP has been adopted to: (i) ensure that all shareholders of the Company are treated fairly in connection with any unsolicited take-over bid or acquisition of control of the Company (including by way of a “creeping” take-over bid); (ii) provide the Board and shareholders of the Company with adequate time to consider and evaluate any unsolicited take-over bid or similar transaction; and (iii) enable the Board to identify, solicit, develop and negotiate any value-enhancing alternatives, as may be considered appropriate, to any unsolicited take-over bids or similar transaction.
The SRP is similar to rights plans adopted by other Canadian companies and ratified by their shareholders. The SRP is not being adopted in response to any specific proposal or intention to acquire control of the Company, and the Board is not aware of any pending or threatened take-over bid for the Company.
Pursuant to the SRP, one right will attach to each issued and outstanding common share of the Company. Subject to the terms of SRP, the rights become exercisable if any person (together with certain related parties) becomes a beneficial owner of 20% or more of the outstanding common shares without complying with the “Permitted Bid” provisions of the SRP. In such event, holders of the rights (other than the acquiring person and its related parties) will be permitted to exercise their rights to purchase additional common shares at a substantial discount to the then market price of the common shares.
The SRP has been conditionally accepted by the Toronto Stock Exchange. While the SRP is effective as of the Effective Date, it is subject to ratification by the Company’s shareholders at a meeting of shareholders to be held within six months of its Effective Date. The Company currently expects to seek shareholder ratification of the SRP at a special meeting to be called and held within that six-month period (the “Meeting”). If the SRP is not ratified by shareholders within that six-month period, it, together with the outstanding rights, will terminate and cease to be effective.
A summary of the principal terms of the SRP will be included in the management proxy circular to be sent to shareholders in connection with the Meeting. The full text of the SRP is available under the Company’s profile on SEDAR+ at sedarplus.ca.
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, the inclusion of the SRP in the management information circular for any Meeting and the calling and the holding of any such Meeting and the timing thereof; and the approval, ratification and confirmation of the SRP. In certain cases, forward-looking statements that 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 lease and/or financing agreements, collect on existing lease and/or financing agreements, 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 shareholder 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, 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 Q2 2026 outlook and full year 2026 commentary presented above under the heading “Updated 2026 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 across); 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’ 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 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 Action 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 1.6 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:
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 These are supplementary financial measures. Refer to “Non-IFRS Measures and Other Financial Measures” section in this press release.
goeasy Ltd.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited)
(Expressed in thousands of Canadian dollars)
As At
As At
March 31,
December 31,
2026
2025
ASSETS
Cash
356,237
152,661
Accounts receivable
40,307
42,361
Prepaid expenses
13,877
9,159
Income taxes recoverable
109,467
90,559
Consumer loans receivable, net
4,982,870
5,155,360
Investments
23,117
29,103
Lease assets, net
33,851
36,656
Derivative financial assets
31,138
11,146
Deferred income tax assets
25,831
22,250
Property and equipment, net
28,634
30,788
Right-of-use assets, net
51,135
52,510
Intangible assets, net
103,914
104,142
Goodwill
21,310
21,310
TOTAL ASSETS
5,821,688
5,758,005
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Revolving credit facility
310,310
175,052
Accounts payable and other liabilities
79,585
107,842
Dividends payable
–
23,398
Unearned revenue
29,962
31,219
Accrued interest payable
84,970
68,533
Deferred income tax liabilities
11,064
5,367
Lease liabilities
57,840
59,451
Secured borrowings
71,612
88,783
Revolving securitization warehouse facilities
609,561
611,015
Derivative financial liabilities
14,402
46,107
Notes payable
3,751,143
3,690,818
TOTAL LIABILITIES
5,020,449
4,907,585
Shareholders’ equity
Share capital
431,264
430,325
Contributed surplus
25,244
26,782
Accumulated other comprehensive loss
(8,960)
(13,367)
Retained earnings
353,691
406,680
TOTAL SHAREHOLDERS’ EQUITY
801,239
850,420
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
5,821,688
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
March 31,
March 31,
2026
2025
Restated
REVENUE
Interest income
317,910
308,891
Lease revenue
20,045
22,242
Commissions earned
70,063
68,187
Charges and fees
4,839
5,603
412,857
404,923
OPERATING EXPENSES
BAD DEBTS
267,200
145,023
OTHER OPERATING EXPENSES
Salaries and benefits
52,664
49,463
Share-based compensation
(1,062)
4,441
Technology costs
11,370
12,220
Underwriting and collections
9,385
7,162
Occupancy
5,714
5,672
Restructuring charges
4,763
–
Advertising and promotion
3,263
8,686
Other expenses
10,690
7,681
96,787
95,325
DEPRECIATION AND AMORTIZATION
Depreciation of lease assets
6,485
6,983
Amortization of intangible assets
5,525
5,646
Depreciation of right-of-use assets
5,342
5,297
Depreciation of property and equipment
2,642
2,597
19,994
20,523
TOTAL OPERATING EXPENSES
383,981
260,871
OPERATING INCOME
28,876
144,052
OTHER LOSS
(5,986)
–
FINANCE COSTS
(93,163)
(89,651)
INCOME (LOSS) BEFORE INCOME TAXES
(70,273)
54,401
INCOME TAX EXPENSE (RECOVERY)
Current
(18,908)
30,896
Deferred
1,624
(15,204)
(17,284)
15,692
NET INCOME (LOSS)
(52,989)
38,709
BASIC EARNINGS (LOSS) PER SHARE
(3.22)
2.30
DILUTED EARNINGS (LOSS) PER SHARE
(3.22)
2.28
SUMMARY OF FINANCIAL RESULTS BY REPORTABLE SEGMENT
(Expressed in thousands of Canadian dollars, except earnings per share)
Three Months Ended March 31, 2026
easyfinancial
easyhome
Corporate
Total
Revenue
Interest income
303,582
14,328
–
317,910
Lease revenue
–
20,045
–
20,045
Commissions earned
66,006
4,057
–
70,063
Charges and fees
4,067
772
–
4,839
373,655
39,202
–
412,857
Operating expenses
Bad debts
256,799
10,401
–
267,200
Other operating expenses
63,908
12,704
20,175
96,787
Depreciation and amortization
9,916
8,488
1,590
19,994
330,623
31,593
21,765
383,981
Operating income (loss)
43,032
7,609
(21,765)
28,876
Other loss
(5,986)
Finance costs
(93,163)
Loss before income taxes
(70,273)
Income tax recovery
(17,284)
Net loss
(52,989)
Diluted loss per share
(3.22)
Three Months Ended March 31, 2025
(As restated)
easyfinancial
easyhome
Corporate
Total
Revenue
Interest income
298,408
10,483
–
308,891
Lease revenue
–
22,242
–
22,242
Commissions earned
64,625
3,562
–
68,187
Charges and fees
4,848
755
–
5,603
367,881
37,042
–
404,923
Operating expenses
Bad debts
140,467
4,556
–
145,023
Other operating expenses
61,526
13,924
19,875
95,325
Depreciation and amortization
9,737
9,063
1,723
20,523
211,730
27,543
21,598
260,871
Operating income (loss)
156,151
9,499
(21,598)
144,052
Other income
–
Finance costs
(89,651)
Income before income taxes
54,401
Income tax expense
15,692
Net income
38,709
Diluted earnings per share
2.28
SUMMARY OF FINANCIAL RESULTS AND KEY PERFORMANCE INDICATORS
Three Months Ended
($ in 000’s except earnings per share and percentages)
March 31,
2026
March 31,
2025
(As restated)
Variance
$ / bps
Variance
% Change
Summary Financial Results
Revenue
412,857
404,923
7,934
2.0 %
Bad debts
267,200
145,023
122,177
84.2 %
Other operating expenses
96,787
95,325
1,462
1.5 %
EBITDA1
36,399
157,592
(121,193)
(76.9 %)
EBITDA margin1
8.8 %
38.9 %
(3,010 bps)
(77.4 %)
Depreciation and amortization
19,994
20,523
(529)
(2.6 %)
Operating income
28,876
144,052
(115,176)
(80.0 %)
Operating margin
7.0 %
35.6 %
(2,860 bps)
(80.3 %)
Other income (loss)
(5,986)
–
(5,986)
(100.0 %)
Finance costs
93,163
89,651
3,512
3.9 %
Effective income tax rate
24.6 %
28.8 %
(420 bps)
(14.7 %)
Net income (loss)
(52,989)
38,709
(91,698)
(236.9 %)
Diluted earnings (loss) per share
(3.22)
2.28
(5.50)
(241.2 %)
Return on receivables
(3.9 %)
3.3 %
(720 bps)
(218.2 %)
Return on assets
(3.7 %)
2.9 %
(660 bps)
(227.6 %)
Return on equity
(25.7 %)
13.4 %
(3,910 bps)
(291.8 %)
Return on tangible common equity1
(26.8 %)
17.9 %
(4,470 bps)
(249.7 %)
Adjusted Financial Results1,2
Other operating expenses
98,509
102,216
(3,707)
(3.6 %)
Efficiency ratio
24.5 %
26.1 %
(160 bps)
(6.1 %)
Operating income
36,914
147,419
(110,505)
(75.0 %)
Operating margin
8.9 %
36.4 %
(2,750 bps)
(75.6 %)
Net income (loss)
(31,313)
59,349
(90,662)
(152.8 %)
Diluted earnings per share
(1.90)
3.49
(5.39)
(154.4 %)
Return on receivables
(2.3 %)
5.0 %
(730 bps)
(146.0 %)
Return on assets
(2.2 %)
4.5 %
(670 bps)
(148.9 %)
Return on equity
(15.2 %)
20.5 %
(3,570 bps)
(174.1 %)
Return on tangible common equity
(16.6 %)
25.9 %
(4,250 bps)
(164.1 %)
Key Performance Indicators
Segment Financials
easyfinancial revenue
373,655
367,881
5,774
1.6 %
easyfinancial operating margin
11.5 %
42.4 %
(3,090 bps)
(72.9 %)
easyhome revenue
39,202
37,042
2,160
5.8 %
easyhome operating margin
19.4 %
25.6 %
(620 bps)
(24.2 %)
Portfolio Indicators
Gross consumer loans receivable
5,363,456
4,795,387
568,069
11.8 %
Growth in consumer loans receivable
(150,011)
192,950
(342,961)
(177.7 %)
Gross loan originations
551,314
676,769
(125,455)
(18.5 %)
Total yield on consumer loans (including ancillary products)1
27.9 %
31.2 %
(330 bps)
(10.5 %)
Net charge offs as a percentage of average gross consumer loans receivable1
17.8 %
8.9 %
890 bps
100.2 %
Cash provided by operations before net principal written1
560,108
410,747
149,361
36.4 %
Potential monthly leasing revenue1
5,820
6,727
(907)
(13.5 %)
1 EBITDA, adjusted other operating expenses, adjusted operating income (loss), adjusted net income (loss) and cash provided by operations before net principal written are non-IFRS measures. EBITDA margin, efficiency ratio, adjusted operating margin, adjusted diluted earnings (loss) per share, adjusted return on receivables, adjusted return on equity, adjusted return on assets, reported and adjusted return on tangible common equity, total yield on consumer loans (including ancillary products) and net charge offs as a percentage of average gross consumer loans receivable are non-IFRS ratios. See description in sections “Portfolio Analysis”, “Key Performance Indicators and Non-IFRS Measures” and “Financial Condition”.
2 Adjusting items are discussed in the “Key Performance Indicators and Non-IFRS Measures” section.
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 non-IFRS measures and other financial measures 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 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted net income (loss) and adjusted diluted earnings (loss) per share for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except earnings per share)
March 31,
2026
March 31,
2025
(As restated)
Net income (loss)
(52,989)
38,709
Impact of adjusting items
Other operating expenses
Restructuring charges1
4,763
–
Integration costs2
–
92
Depreciation and amortization
Amortization of acquired intangible assets3
3,275
3,275
Other loss 4
5,986
–
Finance costs
Fair value change on prepayment options related to Notes Payable5
13,309
24,714
Total pre-tax impact of adjusting items
27,333
28,081
Income tax impact of above adjusting items
(5,657)
(7,441)
After-tax impact of adjusting items
21,676
20,640
Adjusted net income (loss)
(31,313)
59,349
Weighted average number of diluted shares outstanding
16,456
17,007
Diluted earnings (loss) per share
(3.22)
2.28
Per share impact of adjusting items
1.32
1.21
Adjusted diluted earnings (loss) per share
(1.90)
3.49
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 $131 million intangible asset related to the acquisition of LendCare, with an estimated useful life of ten years.
Adjusting item related to other loss
4 For the three-month period ended March 31, 2026, net investment loss was due to fair value changes in the Company’s investments.
Adjusting item related to prepayment options embedded in the Notes Payable
5 For the three-month periods ended March 31, 2026 and 2025, the Company recognized a fair value change on the prepayment options related to Notes Payable.
Adjusted Other Operating Expenses and Efficiency Ratio
Adjusted other operating expenses is a non-IFRS measure and efficiency ratio is a non-IFRS ratio. Refer to “Key Performance Indicators and Non-IFRS Measures” section on page 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted other operating expenses and efficiency ratio for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except earnings per share)
March 31,
2026
March 31,
2025
(As restated)
Other operating expenses
96,787
95,325
Impact of adjusting items1
Other operating expenses
Restructuring charges
(4,763)
–
Integration costs
–
(92)
Depreciation and amortization
Depreciation of lease assets
6,485
6,983
Total impact of adjusting items
1,722
6,891
Adjusted other operating expenses
98,509
102,216
Total revenue
412,857
404,923
Less: Bad debts on interest receivable
(10,879)
(13,739)
Adjusted Financial Revenue
401,978
391,184
Efficiency ratio
24.5 %
26.1 %
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 margin 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 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted operating income (loss) and adjusted operating margins for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except percentages)
March 31,
2026
March 31,
2026 (adjusted)
March 31,
2025
(As restated)
March 31,
2025
(adjusted)
(As restated)
easyfinancial
Operating income (loss)
43,032
43,032
156,151
156,151
Divided by revenue
373,655
373,655
367,881
367,881
easyfinancial operating margin
11.5 %
11.5 %
42.4 %
42.4 %
easyhome
Operating income
7,609
7,609
9,499
9,499
Divided by revenue
39,202
39,202
37,042
37,042
easyhome operating margin
19.4 %
19.4 %
25.6 %
25.6 %
Total
Operating income (loss)
28,876
28,876
144,052
144,052
Other operating expenses1
Restructuring charges
–
4,763
–
–
Integration costs
–
–
–
92
Depreciation and amortization1
Amortization of acquired intangible assets
–
3,275
–
3,275
Adjusted operating income (loss)
28,876
36,914
144,052
147,419
Divided by revenue
412,857
412,857
404,923
404,923
Total operating margin
7.0 %
8.9 %
35.6 %
36.4 %
1 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 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate EBITDA and EBITDA margin for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except percentages)
March 31,
2026
March 31,
2025
(As restated)
Net income (loss)
(52,989)
38,709
Finance cost
93,163
89,651
Income tax expense
(17,284)
15,692
Depreciation and amortization
19,994
20,523
Depreciation of lease assets
(6,485)
(6,983)
EBITDA
36,399
157,592
Divided by revenue
412,857
404,923
EBITDA margin
8.8 %
38.9 %
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 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate cash provided by operating activities before net principal written for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s)
March 31,
2026
March 31,
2025
(As restated)
Cash provided by (used in) operating activities
122,296
(180,312)
Net principal written
437,812
591,059
Cash provided by operating activities before net principal written
560,108
410,747
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 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted return on receivables for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except percentages)
March 31,
2026
March 31,
2026
(adjusted)
March 31,
2025
(As restated)
March 31,
2025
(adjusted)
(As restated)
Net income (loss)
(52,989)
(52,989)
38,709
38,709
After-tax impact of adjusting items1
–
21,676
–
20,640
Adjusted net income (loss)
(52,989)
(31,313)
38,709
59,349
Multiplied by number of periods in a year
X 4
X 4
X 4
X 4
Divided by average gross consumer loans receivable
5,454,278
5,454,278
4,712,699
4,712,699
Return on receivables
(3.9 %)
(2.3 %)
3.3 %
5.0 %
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 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted return on assets for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except percentages)
March 31,
2026
March 31,
2026
(adjusted)
March 31,
2025
(As restated)
March 31,
2025
(adjusted)
(As restated)
Net income (loss)
(52,989)
(52,989)
38,709
38,709
After-tax impact of adjusting items1
–
21,676
–
20,640
Adjusted net income (loss)
(52,989)
(31,313)
38,709
59,349
Multiplied by number of periods in a year
X 4
X 4
X 4
X 4
Divided by average total assets for the period
5,789,846
5,789,846
5,276,581
5,276,581
Return on assets
(3.7 %)
(2.2 %)
2.9 %
4.5 %
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 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate adjusted return on equity for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except percentages)
March 31,
2026
March 31,
2026
(adjusted)
March 31,
2025
(As restated)
March 31,
2025
(adjusted)
(As restated)
Net income (loss)
(52,989)
(52,989)
38,709
38,709
After-tax impact of adjusting items1
–
21,676
–
20,640
Adjusted net income (loss)
(52,989)
(31,313)
38,709
59,349
Multiplied by number of periods in a year
X 4
X 4
X 4
X 4
Divided by average shareholders’ equity for the period
825,829
825,829
1,157,511
1,157,511
Return on equity
(25.7 %)
(15.2 %)
13.4 %
20.5 %
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 33 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate reported and adjusted return on tangible common equity for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except percentages)
March 31,
2026
March 31,
2026
(adjusted)
March 31,
2025
(As restated)
March 31,
2025
(adjusted)
(As restated)
Net income (loss)
(52,989)
(52,989)
38,709
38,709
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
(50,582)
(50,582)
41,116
41,116
Impact of adjusting items1
Other operating expenses
Restructuring charges
–
4,763
–
–
Integration costs
–
–
–
92
Other loss
–
5,986
–
–
Finance costs
Fair value change on prepayment options related to Notes Payable
–
13,309
–
24,714
Total pre-tax impact of adjusting items
(50,582)
24,058
–
24,806
Income tax impact of above adjusting items
–
(4,789)
–
(6,573)
After-tax impact of adjusting items
–
19,269
–
18,233
Adjusted net income (loss)
(50,582)
(31,313)
41,116
59,349
Multiplied by number of periods in a year
X 4
X 4
X 4
X 4
Average shareholders’ equity
825,829
825,829
1,157,511
1,157,511
Average goodwill
(21,310)
(21,310)
(180,923)
(180,923)
Average acquired intangible assets2
(68,229)
(68,229)
(81,329)
(81,329)
Average related deferred tax liabilities
18,081
18,081
21,552
21,552
Divided by average tangible common equity
754,371
754,371
916,811
916,811
Return on tangible common equity
(26.8 %)
(16.6 %)
17.9 %
25.9 %
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
easyhome Financial Revenue
easyhome financial revenue is a non-IFRS measure. It is calculated as total company revenue less easyfinancial revenue and leasing revenue. The Company believes that easyhome financial revenue is an important measure of the performance of the easyhome segment. Items used to calculate easyhome financial revenue for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
($in 000’s)
Three Months Ended
March 31,
2026
March 31,
2025
(As restated)
Total company revenue
412,857
404,923
Less: easyfinancial revenue
(373,655)
(367,881)
Less: leasing revenue
(21,273)
(23,515)
easyhome financial revenue
17,929
13,527
Total Yield on Consumer Loans as a Percentage of Average Gross Consumer Loans Receivable
Total yield on consumer loans as a percentage of average gross consumer loans receivable is a non-IFRS ratio. See description in section “Portfolio Analysis” on page 20 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate total yield on consumer loans as a percentage of average gross consumer loans receivable for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($ in 000’s except percentages)
March 31,
2026
March 31,
2025
(As restated)
Total Company revenue
412,857
404,923
Less: Leasing revenue
(21,273)
(23,515)
Less: Bad debts on interest income
(10,879)
(13,739)
Adjusted Financial revenue
380,705
367,669
Multiplied by number of periods in a year
X 4
X 4
Divided by average gross consumer loans receivable
5,454,278
4,712,699
Total yield on consumer loans as a percentage of average gross consumer loans receivable (annualized)
27.9 %
31.2 %
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 20 of the Company’s MD&A for the three-month period ended March 31, 2026. Items used to calculate net charge Offs as a percentage of average gross consumer loans receivable for the three-month periods ended March 31, 2026 and 2025 include those indicated in the chart below:
Three Months Ended
($in 000’s except percentages)
March 31,
2026
March 31,
2025
(As restated)
Net charge offs on gross consumer loans receivable
242,581
104,758
Multiplied by number of periods in a year
X 4
X 4
Divided by average gross consumer loans receivable
5,454,278
4,712,699
Net charge offs as a percentage of average gross consumer loans receivable (annualized)
17.8 %
8.9 %
Net Principal Written and Percentage Net Principal Written to New Customers
Net principal written (Net loan advances) is a non-IFRS measure. See description in section “Portfolio Analysis” on page 20 of the Company’s MD&A for the three-month period ended March 31, 2026. The percentage of net loan advances to new customers is a non-IFRS ratio. It is calculated as loan originations to new customers divided by the net principal written. The Company uses percentage of net loan advances to new customers, among other measures, to assess the operating performance of its lending business. Items used to calculate the percentage of net loan advances to new customers for the three-month periods ended for the three-month period ended March 31, 2026 include those indicated in the chart below:
Three Months Ended
($ in 000’s)
March 31,
2026
March 31,
2025
Gross loan originations
551,314
676,769
Loan originations to new customers
312,694
431,949
Loan originations to existing customers
238,620
244,820
Less: Proceeds applied to repay existing loans
(113,502)
(85,710)
Net advance to existing customers
125,118
159,110
Net principal written
437,812
591,059
Percentage net advances to new customers
71.4 %
73.1 %
Debt to Adjusted Tangible Equity
Debt to adjusted tangible equity is a capital management measure. Refer to “Financial Condition” section on page 41 of the Company’s MD&A for the three-month period ended March 31, 2026.
Weighted Average Interest Rate
Weighted average interest rate is a supplementary financial measure. It is calculated as the sum of individual loan balance multiplied by interest rate divided by gross consumer loans receivable.
SOURCE goeasy Ltd.
ST. PAUL, Minn., May 12, 2026 /PRNewswire/ — At today’s Annual Meeting of Shareholders, 3M (NYSE:MMM) shareholders overwhelmingly supported each of the proposals recommended for approval by the company.
Preliminary Shareholder Voting Results
3M shareholders today voted on the following business items:
1) Shareholders supported 10 directors for one-year terms:
David P. Bozeman, President, Chief Executive Officer and Director, C.H. Robinson Worldwide, Inc.Thomas “Tony” K. Brown, retired Group Vice President, Global Purchasing, Ford Motor CompanyWilliam M. “Bill” Brown, Chairman of the Board and Chief Executive Officer, 3M CompanyAudrey Choi, retired Chief Sustainability Officer and Management Committee Member, Morgan StanleyAnne H. Chow, retired Chief Executive Officer, AT&T BusinessJames R. Fitterling, Chair and Chief Executive Officer, Dow Inc.Suzan Kereere, President, Global Markets, PayPalNeil G. Mitchill, Jr., Executive Vice President and Chief Financial Officer, RTX CorporationPedro J. Pizarro, President, Chief Executive Officer and Director, Edison InternationalThomas W. Sweet, retired Chief Financial Officer, Dell Technologies
2) Shareholders supported the appointment of PricewaterhouseCoopers LLP as 3M’s independent registered public accounting firm for 2026.
3) Shareholders supported, on an advisory basis, executive compensation, as described in the company’s Notice of Annual Meeting and Proxy Statement.
3M will disclose the final voting results on each item of business properly presented at the Annual Meeting on Form 8-K to be filed with the SEC.
About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news.
Please note that the company announces material financial, business and operational information using the 3M investor relations website, SEC filings, press releases, public conference calls and webcasts. The company also uses the 3M News Center and social media to communicate with our customers and the public about the company, products and services and other matters. It is possible that the information 3M posts on the News Center and social media could be deemed to be material information. Therefore, the company encourages investors, the media and others interested in 3M to review the information posted on 3M’s News Center and the social media channels such as @3M or @3MNews.
Contacts
3M
Investor Contact:
Diane Farrow, 612-202-2449
Media Contact:
3Mnews@mmm.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/3m-annual-meeting-results-302770102.html
SOURCE 3M Company
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