Mr. Patrick Ens reports

GOEASY LTD. PROVIDES A FINANCIAL AND OPERATIONAL UPDATE AHEAD OF ITS FOURTH QUARTER EARNINGS RELEASE

goeasy Ltd. expects to incur an incremental charge-off in fourth quarter 2025 of approximately $178-million against gross consumer loans receivable of $5.5-billion as at Dec. 31, 2025, and a related writedown of approximately $55-million for loan interest and fees. Total company net charge-offs (including the incremental charge-off above) in the quarter are expected to be approximately $331-million. The company also expects a net increase in allowance for credit losses on gross consumer loans receivable in the quarter of approximately $86-million compared with the amount reported as at Sept. 30, 2025. Accordingly, the company is withdrawing its previously issued fourth quarter 2025 outlook and three-year forecast.

Appointment of permanent chief financial officer

The company also announced today that Felix Wu, who has served as interim chief financial officer since Sept. 30, 2025, has been appointed chief financial officer, effective immediately. Mr. Wu most recently served as CFO of Koho and previously held senior finance leadership roles at President's Choice Financial and Capital One Canada.

Expected Q4 2025 incremental charge-off and loan loss provision increase

The expected incremental charge-off of approximately $178-million relates to certain loans in the company's LendCare business. Acquired in 2021, LendCare built its portfolio through third party merchant-originated loans primarily in the auto and power sports categories. The expected incremental charge-off reflects goeasy's determination that all available efforts to drive substantive recoveries on certain late-stage delinquent loan receivables of LendCare have been exhausted. This assessment came as a result of goeasy's focus on improving collections effectiveness throughout 2025, which informed goeasy's view of collectability.

After giving effect to the anticipated incremental net charge-offs, the company expects its net charge-off rate for 2025 (full year) to be approximately 12.9 per cent. Management now expects forward-looking credit performance on LendCare loans to be worse than previously anticipated, leading to the company's annual net charge-off rate to increase to the mid-teens in 2026, before beginning to decline in 2027 and onward.

"We are taking definitive action to rectify this situation, and we recognize that LendCare's recent rapid growth calls for robust operational infrastructure, enhanced credit risk management practices, as well as strong and disciplined management," said Mr. Wu. "We expect pressure on net charge-offs and higher delinquency reporting for the coming quarters, before an anticipated improvement in 2027, and we will provide more detail when we report our Q4 2025 earnings."

Although the anticipated incremental net charge-offs and increase in loan loss provision are expected to result in the company not complying with certain financial covenants, as currently formulated, under its syndicated credit facility, securitization facilities and receivables purchase arrangements, the company has entered into an accommodation agreement with the lenders under its syndicated credit facility and is in active discussions with these lenders as well as with the counterparties under its securitization facilities and receivables purchase agreements. The company anticipates entering into an amendment, waiver or other appropriate agreement with each of these parties on or before its Q4 2025 reporting. The company remains in compliance with all the covenants under its senior unsecured notes. The company has sufficient liquidity to meet its obligations and does not anticipate any shortfall in liquidity while normalization discussions with its lenders are being finalized.

Management's six-point action plan

To strengthen goeasy's operational model and financial performance, the company is taking the following steps:

• Focusing growth on easyfinancial's unsecured and home equity lending direct-to-consumer business;
• Reducing auto and power sports originations from LendCare's merchant channels;
• Integrating easyfinancial and LendCare into one unified operating model;
• Implementing identified operational efficiencies expected to deliver approximately $30-million in annualized cost savings;
• Strengthening leadership at LendCare, including appointing Farhan Ali Khan as the new head of LendCare;
• Not repurchasing shares under its normal course issuer bid and suspending its quarterly dividend, effective immediately, until further notice.

"Looking ahead, my focus and that of the entire goeasy organization is to build on the long track record of success we have demonstrated in our easyfinancial business," said Patrick Ens, goeasy's chief executive officer. "We are confident in the strong foundation that we have built, upon which we will enhance operational discipline and drive financial performance."

Revision to historical reporting

Separate from the incremental charge-off and increase in provision discussed above, when the company reports its Q4 2025 results, management will address a correction of a historical reporting practice of LendCare, which management recently identified. The impact of this correction to the income statement, balance sheet, statement of cash flows and statement of equity is not material. The historical reporting practice resulted in certain customer payments being recorded as received while they were in fact in the process of being settled at month-end, some of which were ultimately not collected, and also impacted the company's reported delinquencies. As a result, certain previously reported results for prior periods (2024 and the previously reported interim periods of 2025) including the company's delinquency and staging note disclosures will require revision, which will be reflected in the comparative prior-period columns of the fiscal 2025 financial statements.

Further details on these matters will be provided when the company releases its fourth quarter 2025 results after the market closes on Wednesday, March 25, 2026, and on its Q4 2025 earnings conference call for analysts and investors on Thursday, March 26, 2026, at 10 a.m. ET.

About goeasy Ltd.

goeasy is a Canadian company, headquartered in Mississauga, Ont., that provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands.

Supported by over 2,600 employees, the company offers a wide variety of financial products and services, including unsecured and secured instalment loans, merchant financing through a variety of verticals, and lease-to-own merchandise. Customers can transact seamlessly through an omnichannel model that includes on-line and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, power sports, automotive, home improvement and health care verticals, through approximately 11,300 merchant partners across Canada. Throughout the company's history, it has acquired and organically served over 1.6 million Canadians and originated approximately $18.5-billion in loans.

Accredited by the Better Business Bureau, goeasy is the proud recipient of several awards in recognition of its exceptional culture and continued business growth, including inclusion in Time magazine's inaugural list of Canada's best companies, 2024 best workplaces in financial services and insurance, Waterstone Canada's most admired corporate cultures, ranking on the 2022 Report on Business Women Lead Here executive gender diversity benchmark, placing on the 2024 Report on Business ranking of Canada's top-growing companies, ranking on the TSX30, and greater Toronto top employers award, and has been certified as a great place to work. The company is represented by a diverse group of team members from over 90 nationalities who believe strongly in giving back to communities in which it operates. To date, goeasy has raised and donated over $6.7-million to support its long-standing partnerships with BGC Canada and many other local charities. goeasy's common shares are listed on the Toronto Stock Exchange under the trading symbol GSY. goeasy is rated BB minus with a stable trend from S&P and Ba3 with a stable trend from Moody's.

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