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Goeasy Shares Plunge After LendCare Fallout as Dividend Is Suspended and Guidance Pulled

Management now expects mid‑teens charge‑off rates in 2026 after uncovering reporting failures at LendCare.

Overview

  • The lender said it will book an incremental C$178 million bad‑loan charge and a C$55 million write‑down tied to Q4 2025.
  • Total Q4 net charge‑offs are projected at about C$331 million, alongside a sequential C$86 million increase in the credit loss allowance.
  • The quarterly dividend was suspended and buybacks halted, and the company withdrew its Q4 outlook and three‑year financial forecast.
  • Shares fell roughly 32% in early U.S. trading and as much as 50% on the Toronto exchange, with some outlets later citing deeper intraday losses.
  • A six‑point remediation plan was announced, installing Farhan Ali Khan to lead LendCare, cutting auto and powersports originations, integrating operations with easyfinancial, targeting about C$30 million in annual savings, confirming Felix Wu as CFO, and setting March 25 for full Q4 results.