Technology

Resideo Announces First Quarter 2026 Financial Results

Published

2 hours ago

May 12, 2026

Net revenue of $1.91 billion, up 8% year-over-year and above the high-end of outlook range; P&S up 9% and ADI up 8%Total company gross margin of 28.8%; 12 consecutive quarters of year-over-year gross margin expansion achieved at P&S Net income of $38 million, compared to net income of $6 million in first quarter of 2025; Adjusted EBITDA(1) of $215 million, up 28% year-over-year and above the high-end of outlook rangeGAAP diluted EPS of $0.17; Adjusted EPS(1) of $0.65, up 3% year-over-year and above the high-end of outlook range

SCOTTSDALE, Ariz., May 12, 2026 /PRNewswire/ — Resideo Technologies, Inc. (NYSE: REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets, today announced preliminary financial results for the first quarter ended April 4, 2026.

First Quarter 2026 Financial Highlights

Net revenue of $1,912 million, up 8% compared to $1,770 million in first quarter 2025, and above the high-end of outlook rangeTotal company gross margin of 28.8%, down 10 basis points year-over-yearNet income of $38 million, compared to net income of $6 million in first quarter 2025Adjusted EBITDA(1) of $215 million, up 28% compared to $168 million in first quarter 2025, and above the high-end of outlook rangeDiluted EPS of $0.17 and Adjusted EPS(1) of $0.65 compared to diluted loss per share of $0.02 and Adjusted EPS(1) of $0.63 in the first quarter 2025; first quarter 2026 Adjusted EPS(1) was above the high-end of outlook rangeReported cash used by operating activities was $145 million compared to cash used by operating activities of $65 million in first quarter 2025

Management Remarks

“Our first quarter results reflect the continued strong operational execution of both businesses in a dynamic macro-economic environment, resulting in results that exceeded the high end of our outlook range for all financial metrics,” said Jay Geldmacher, Resideo’s President and CEO.

“I am very pleased with the focus, discipline, and leadership demonstrated by the P&S and ADI teams. The team’s operational performance, along with the achievement of key business separation milestones, builds momentum and conviction for each company as we approach completion of the ADI spin-off later this year.”

(1)

This press release includes certain “non-GAAP financial measures” as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Adjusted Cash Provided by Operations, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. See reconciliations of U.S. GAAP results to adjusted results in the accompanying tables.

Products and Solutions First Quarter 2026 Highlights

Net revenue of $706 million, up 9% compared to 2025Gross margin of 41.8%, up 40 basis points compared to 2025Income from operations of $128 million, compared to $136 million in 2025Adjusted EBITDA(1) of $177 million, or 25.1% of revenue, compared to $158 million, or 24.3% of revenue in 2025

P&S delivered net revenue of $706 million in the first quarter 2026, up 9% compared to first quarter 2025, including a favorable impact of approximately 200 basis points from foreign currency. Revenue grew year-over-year across substantially all our sales channels and product families. Revenue growth was driven by a combination of price realization, primarily in our OEM and security channels, and by customer demand for our new products, primarily in our retail and electrical distribution channels.

Gross margin was 41.8%, compared to 41.4% in first quarter 2025 due primarily to the continued achievement of structural operating efficiencies. Research and development expenses increased $9 million due primarily to investments supporting new product launches to drive future growth. Selling, general and administrative expenses were up $18 million driven primarily by a one-time litigation settlement. Restructuring expenses increased $7 million as we strategically optimize our global manufacturing footprint. Income from operations of $128 million in first quarter 2026 was down from $136 million in first quarter 2025 due primarily to the one-time litigation settlement and restructuring expenses. Adjusted EBITDA(1) grew 12% year-over-year to $177 million compared to $158 million in 2025.

ADI Global Distribution First Quarter 2026 Highlights

Net revenue of $1,206 million, up 8% compared to 2025Gross margin of 21.2%, down 40 basis points compared to 2025Income from operations of $34 million, compared to $34 million in 2025Adjusted EBITDA(1) of $66 million, or 5.5% of revenue, compared to $72 million or 6.4% of revenue in 2025

ADI first quarter 2026 net revenue of $1,206 million was up 8% year-over-year, and reflects average daily sales growth of 1% year-over-year and four extra sales days in the current quarter. Both growth metrics include an approximate 1% favorable impact from foreign currency. Net revenue growth was driven by demand in the security, professional audio-visual, and data communications categories, partially offset by the residential audio-visual category due primarily to a continued soft U.S. residential market. E-commerce revenue grew 12% year-over-year, driven primarily by greater customer adoption. Exclusive Brands revenue also grew 7% year-over-year driven by positive momentum for our new products.

Gross margin was 21.2%, compared to 21.6% in first quarter 2025 due primarily to higher fuel costs for freight and unfavorable product sales mix. Research and development expenses increased $4 million due primarily to investments supporting new product launches that are intended to drive future growth. Selling, general and administrative were up $13 million driven primarily by higher variable costs during the four extra sales days. Income from operations of $34 million in first quarter 2026 was consistent with first quarter 2025 results. Adjusted EBITDA(1) decreased 8% to $66 million compared to $72 million in 2025.

Cash Flow and Liquidity

Net cash used by operating activities was $145 million in first quarter 2026, compared to cash used in operating activities of $65 million in first quarter 2025. The decrease was primarily driven by business separation activities, higher cash interest paid, and working capital dynamics. At April 4, 2026, Resideo had cash and cash equivalents of $438 million and total outstanding debt of $3.23 billion.

Outlook

The Company re-affirms its full year 2026 outlook and initiates its outlook for the second quarter 2026.

($ in millions, except per share data)

Q2 2026

2026

Net revenue

$1,916 – $1,940

$7,800 – $7,900

Non-GAAP Adjusted EBITDA(1)

$216 – $230

$935 – $985

Non-GAAP Adjusted Earnings Per Share(1)

$0.71 – $0.75

$3.00 – $3.20

Conference Call and Webcast Details

Resideo will hold a conference call with investors on May 12, 2026, at 5:00 p.m. ET. The webcast can be accessed at https://investor.resideo.com, where the webcast link and related materials will be posted before the call. A replay of the webcast will be available following the presentation.

About Resideo

Resideo is a leading manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. For more information about Resideo and our trusted, well-established brands including First Alert, Honeywell Home, BRK, Control4, and others, visit www.resideo.com.

Contacts:

Investors:

Media:

Christopher T. Lee

Garrett Terry

Global Head of Strategic Finance

Corporate Communications Manager

investorrelations@resideo.com

garrett.terry@resideo.com

Forward-Looking Statements
This release and the related conference call contain “forward-looking statements.” All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the second quarter 2026 and full year 2026, (2) our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint, (3) the amount of our obligations and nature of our contractual restrictions pursuant to, and disputes that have or may hereafter arise under the agreements we entered into with Honeywell in connection with the spin-off of Resideo from Honeywell, (4) the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (5) risks and uncertainties relating to tariffs that have been or may be imposed by the United States and other governments, (6) risks related to our anticipated separation of Resideo Technologies’ Products & Solutions and ADI Global Distribution businesses into two independent publicly traded companies, including the timing thereof and that we may experience operational or other disruptions as a result of the separation and the planning therefor, and (7) the other risks described under the headings “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2025 and other periodic filings we make from time to time with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward-looking statements.

Use of Non-GAAP Measures
This press release includes certain “non-GAAP financial measures” as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G thereunder. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. Readers should also consider the limitations associated with these non-GAAP financial measures, including the potential lack of comparability of these measures from one company to another.

We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP at the end of this release. A reconciliation of the forecasted range for Adjusted EBITDA and Adjusted Earnings Per Share for the second quarter of 2026 and for the full year 2026 are not included in this release due to the number of variables in the projected range and because we are currently unable to quantify accurately without unreasonable efforts certain amounts that would be required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors. However, for the second quarter of 2026 and full year 2026 respectively, we anticipate the following expenses in our GAAP to non-GAAP reconciliation: depreciation and amortization of $53 million and $212 million, interest expense, net of $46 million and $181 million, and stock-based compensation expense of $14 million and $58 million.

Table 1: CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended

(in millions, except per share data)

April 4, 2026

March 29, 2025

Net revenue

$ 1,912

$ 1,770

Cost of goods sold

1,361

1,259

Gross profit

551

511

Operating expenses:

Research and development expenses

Selling, general and administrative expenses

340

306

Intangible asset amortization

Restructuring expenses

Business separation costs

—

Total operating expenses

449

375

Income from operations

102

136

Indemnification Agreement expense (1)

—

Other expense (income), net

—

Interest expense, net

Net income before taxes

Provision for income taxes

Net income

Less: preferred stock dividends

Less: undistributed income allocated to preferred stockholders

—

Net income (loss) available to common stockholders

$ 26

$ (3)

Earnings (loss) per common share:

Basic

$ 0.17

$ (0.02)

Diluted

$ 0.17

$ (0.02)

Weighted average common shares outstanding:

Basic

151

148

Diluted

155

148

(1)

Represents the expense incurred pursuant to the Indemnification Agreement, which, prior to its termination, had an annual cash payment cap of $140 million. The following table summarizes information concerning the Indemnification Agreement:

Three Months Ended

(in millions)

April 4, 2026

March 29, 2025

Accrual for Indemnification Agreement liabilities deemed probable and reasonably
estimable

$ —

$ 90

Cash payments made to Honeywell prior to the third quarter of 2025

—

(35)

Indemnification Agreement non-GAAP adjustment

$ —

$ 55

Table 2: CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except par value)

April 4, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$ 438

$ 661

Accounts receivable, net

1,114

1,073

Inventories, net

1,357

1,354

Other current assets

265

270

Total current assets

3,174

3,358

Property, plant and equipment, net

444

447

Goodwill

3,096

3,100

Intangible assets, net

1,069

1,091

Other assets

424

437

Total assets

$ 8,207

$ 8,433

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ 1,015

$ 1,131

Accrued liabilities

516

624

Total current liabilities

1,531

1,755

Long-term debt

3,165

3,167

Other liabilities

589

594

Total liabilities

5,285

5,516

Stockholders’ equity:

Preferred stock, $0.001 par value: 100 shares authorized, 0.5 shares issued
and outstanding, and $500 liquidation preference at April 4, 2026 and
December 31, 2025

482

Common stock, $0.001 par value: 700 shares authorized, 160 and 151
shares issued and outstanding at April 4, 2026, respectively, and 158 and
150 shares issued and outstanding at December 31, 2025, respectively

—

Additional paid-in capital

2,410

2,391

Retained earnings

374

345

Accumulated other comprehensive loss

(168)

(157)

Treasury stock at cost

(176)

(144)

Total stockholders’ equity

2,922

2,917

Total liabilities and stockholders’ equity

$ 8,207

$ 8,433

Table 3: CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

(in millions)

April 4, 2026

March 29, 2025

Cash Flows From Operating Activities:

Net income

$ 38

$ 6

Adjustments to reconcile net income to net cash in operating activities:

Depreciation and amortization

Restructuring expenses

Stock-based compensation expense

Other, net

—

Changes in assets and liabilities:

Accounts receivable, net

(42)

(13)

Inventories, net

(6)

Other current assets

Accounts payable

(106)

(101)

Accrued liabilities

(114)

(112)

Non-current obligations payable under the Indemnification Agreement

—

Other, net

Net cash used in operating activities

(145)

(65)

Cash Flows From Investing Activities:

Capital expenditures

(36)

(31)

Net cash used in investing activities

(36)

(31)

Cash Flows From Financing Activities:

Repayments of long-term debt

(5)

—

Acquisition of treasury stock to cover stock award tax withholding

(32)

(15)

Preferred stock dividend payments

(9)

Other financing activities, net

Net cash used in financing activities

(42)

(22)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

Net decrease in cash, cash equivalents and restricted cash

(222)

(115)

Cash, cash equivalents and restricted cash at beginning of period

662

693

Cash, cash equivalents and restricted cash at end of period

$ 440

$ 578

Table 4: SUMMARY OF FINANCIAL RESULTS (UNAUDITED)

Q1 2026

(in millions)

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Net revenue

$ 706

$ 1,206

$ —

$ 1,912

Cost of goods sold

411

950

—

1,361

Gross profit

295

256

—

551

Research and development expenses

—

Selling, general and administrative expenses

119

186

340

Intangible asset amortization

Restructuring expenses

—

Business separation costs

—

Income (loss) from operations

$ 128

$ 34

$ (60)

$ 102

Q1 2025

(in millions)

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Net revenue

$ 649

$ 1,121

$ —

$ 1,770

Cost of goods sold

380

879

—

1,259

Gross profit

269

242

—

511

Research and development expenses

—

Selling, general and administrative expenses

101

173

306

Intangible asset amortization

Restructuring expenses

(1)

Income (loss) from operations

$ 136

$ 34

$ (34)

$ 136

Q1 2026 % change compared with prior period

Products
and
Solutions

ADI Global
Distribution

Corporate

Total
Company

Net revenue

9 %

8 %

N/A

8 %

Cost of goods sold

8 %

N/A

8 %

Gross profit

10 %

6 %

N/A

8 %

Research and development expenses

33 %

50 %

N/A

37 %

Selling, general and administrative expenses

18 %

8 %

9 %

11 %

Intangible asset amortization

— %

4 %

— %

3 %

Income (loss) from operations

(6) %

— %

76 %

(25) %

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

ADJUSTED DILUTED EARNINGS PER SHARE AND NET INCOME (LOSS) COMPARISON

(Unaudited)

RESIDEO TECHNOLOGIES, INC.

Three Months Ended

(in millions, except per share data)

April 4, 2026

March 29, 2025

GAAP Net income

$ 38

$ 6

Less: preferred stock dividends

Less: undistributed income allocated to preferred stockholders

—

GAAP Net income (loss) available to common stockholders

(3)

Indemnification Agreement non-GAAP adjustment (1)

—

Intangible asset amortization

Business separation costs

—

Litigation settlement

—

Stock-based compensation expense

Restructuring expenses

Undistributed income allocated to preferred stockholders

—

Other (2)

Tax effect of applicable non-GAAP adjustments (3)

(22)

(14)

Non-GAAP Adjusted net income

$ 101

$ 94

Three Months Ended

April 4, 2026

March 29, 2025

GAAP Net income (loss) available to common shareholders per diluted
common share

$ 0.17

$ (0.02)

Indemnification Agreement non-GAAP adjustment (1)

—

0.37

Intangible asset amortization

0.20

Business separation costs

0.15

—

Litigation settlement

0.12

—

Stock-based compensation expense

0.09

0.10

Restructuring expenses

0.04

0.03

Undistributed income allocated to preferred stockholders

0.02

—

Other (2)

—

0.05

Tax effect of applicable non-GAAP adjustments (3)

(0.14)

(0.10)

Non-GAAP Adjusted diluted earnings per share

$ 0.65

$ 0.63

(1)

Refer to the Unaudited Consolidated Statements of Operations herein.

(2)

Other includes net periodic pension benefit costs, excluding service costs, foreign exchange transaction loss (income), acquisition and miscellaneous other non-recurring, non-operating income and losses.

(3)

We calculate the tax effect of relevant non-GAAP adjustments by applying a flat statutory tax rate of 25% for all non-deductible and taxable adjustments.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

ADJUSTED EBITDA AND NET INCOME COMPARISON

(Unaudited)

RESIDEO TECHNOLOGIES, INC.

Three Months Ended

(in millions)

April 4, 2026

March 29, 2025

Net revenue

$ 1,912

$ 1,770

GAAP Net income

$ 38

$ 6

GAAP Net income as a % of net revenue

2.0 %

0.3 %

Provision for income taxes

GAAP Net income before taxes

Indemnification Agreement non-GAAP adjustment (1)

—

Depreciation and amortization

Interest expense, net

Business separation costs

—

Litigation settlement

—

Stock-based compensation expense

Restructuring expenses

Other (2)

—

Non-GAAP Adjusted EBITDA

$ 215

$ 168

Non-GAAP Adjusted EBITDA as a % of net revenue

11.2 %

9.5 %

(1)

Refer to the Unaudited Consolidated Statements of Operations herein.

(2)

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

(Unaudited)

PRODUCTS AND SOLUTIONS SEGMENT

Three Months Ended

(in millions)

April 4, 2026

March 29, 2025

Net revenue

$ 706

$ 649

GAAP Income from operations

$ 128

$ 136

GAAP Income from operations as a % of net revenue

18.1 %

21.0 %

Litigation settlement

—

Restructuring expenses

(1)

Stock-based compensation expense

Other (1)

$ (1)

Non-GAAP Adjusted Income from Operations

$ 156

$ 140

Depreciation and amortization

Non-GAAP Adjusted EBITDA

$ 177

$ 158

Non-GAAP Adjusted EBITDA as a % of net revenue

25.1 %

24.3 %

(1)

Other includes other miscellaneous adjustments.

ADI GLOBAL DISTRIBUTION SEGMENT

Three Months Ended

(in millions)

April 4, 2026

March 29, 2025

Net revenue

$ 1,206

$ 1,121

GAAP Income from operations

$ 34

GAAP Income from operations as a % of net revenue

2.8 %

3.0 %

Stock-based compensation expense

Restructuring expense

—

Other (1)

(1)

Non-GAAP Adjusted Income from Operations

$ 37

$ 44

Depreciation and amortization

Non-GAAP Adjusted EBITDA

$ 66

$ 72

Non-GAAP Adjusted EBITDA as a % of net revenue

5.5 %

6.4 %

(1)

Other includes other miscellaneous adjustments and acquisition costs.

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SOURCE Resideo Technologies, Inc.

Technology

Brightstar Lottery Delivers Enhanced Retail Central System to Lottotech in Mauritius

Published

47 minutes ago

May 12, 2026

Company extends its longtime relationship with the operator of the Mauritius National Lottery with new multi-year contract agreement

LONDON, May 12, 2026 /PRNewswire/ — Brightstar Lottery PLC (NYSE: BRSL) (“Brightstar”) announced today that its subsidiaries, Brightstar Global Solutions Corporation and Brightstar Lottery Cyprus Limited, have signed a multi-year contract extension with Lottotech, the operator of the Mauritius National Lottery. Brightstar will deploy an advanced lottery central system to unlock further benefits for Lottotech. Additionally, Brightstar will replace all lottery terminals with its latest hardware, the RetailerPro S2, which will feature Brightstar’s cutting-edge terminal application platform, OpenRetail.

“Extending Lottotech’s trusted relationship with Brightstar into its third decade through this latest contract underscores our shared commitment to long-term innovation and growth,” said Moorghen Veeramootoo, Lottotech Chief Executive Officer. “Enhancing our central system marks a significant milestone for Lottotech, enabling greater agility, flexibility, and disaster tolerance as we enhance the player and retailer experiences while positioning our business for continued success.”

“As Lottotech’s exclusive retail lottery technology partner since its inception, Brightstar has continuously pushed boundaries to revolutionize products that benefit and complement the expectations of today’s modern lottery,” said Marco Tasso, Brightstar Chief Operating Officer International and Italy Operations. “We are excited to deliver our next-generation terminals and deploy our advanced central system to Lottotech, a natural next step in the evolution of Lottotech’s business critical operations.”

Engineered for speed and reliability, Brightstar’s Retailer Pro S2 is powered by a high-performance processor that ensures rapid transaction processing. Its ergonomic, modular design supports multiple player-facing displays and a broad range of peripherals enabling flexible and engaging player interactions. Brightstar’s OpenRetail software is designed to streamline lottery operations with unmatched versatility and efficiency. Built on a single code line, updates and new features can be deployed easily across all point-of-sale devices.

About Lottotech Ltd
Lottotech is Mauritius’ leading lottery and gaming operator and the exclusive operator of the Mauritius National Lottery. Since 2008, the company has been delivering secure, innovative, and responsible gaming experiences through a portfolio of popular products including Loto, Loto Vert, and Football Pools. With a network of more than 600 retail points across Mauritius and Rodrigues, Lottotech combines retail and digital solutions to provide accessible entertainment while supporting national development through meaningful contributions to education, health, sports, culture, and community initiatives. As a member of the World Lottery Association (WLA), Lottotech is committed to the highest standards of integrity, security, and responsible gaming, and has achieved WLA Responsible Gaming Level 4 Certification. Through continuous innovation, operational excellence, and a customer-centric approach, Lottotech continues to create sustainable value for its players, partners, and the Mauritian community. For more information, visit www.lottotech.mu or follow Lottotech on LinkedIn.

About Brightstar Lottery PLC
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

The trademarks and/or service marks used herein are either trademarks or registered trademarks of Brightstar Lottery PLC, its affiliates or its licensors.

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SOURCE Brightstar Lottery PLC

Technology

goeasy Ltd. Reports Results for the First Quarter 2026

Published

47 minutes ago

May 12, 2026

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:

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 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

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

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,

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

–

Depreciation and amortization

Amortization of acquired intangible assets3

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

156,151

Divided by revenue

373,655

367,881

easyfinancial operating margin

11.5 %

42.4 %

easyhome

Operating income

7,609

9,499

Divided by revenue

39,202

37,042

easyhome operating margin

19.4 %

25.6 %

Total

Operating income (loss)

28,876

144,052

Other operating expenses1

Restructuring charges

–

4,763

–

Integration costs

–

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

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)

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

Divided by average gross consumer loans receivable

5,454,278

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)

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

Divided by average total assets for the period

5,789,846

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)

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

Divided by average shareholders’ equity for the period

825,829

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)

38,709

Amortization of acquired intangible assets

3,275

Income tax impact of the above item

(868)

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

(50,582)

41,116

Impact of adjusting items1

Other operating expenses

Restructuring charges

–

4,763

–

Integration costs

–

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

Average shareholders’ equity

825,829

1,157,511

Average goodwill

(21,310)

(180,923)

Average acquired intangible assets2

(68,229)

(81,329)

Average related deferred tax liabilities

18,081

21,552

Divided by average tangible common equity

754,371

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

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

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.

Technology

3M Annual Meeting Results

Published

47 minutes ago

May 12, 2026

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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