goeasy Ltd. (TSX: GSY) stock has been absolutely destroyed in the last year or so. This might have many investors feeling tempted to step in and buy the stock. But I would like to say that despite its 80% drop from July 2025 highs, goeasy stock remains a high risk one. The macro environment as well as the company’s whole business model is filled with risks. This won’t play out well for the stock, in my view.
Let’s take a look.
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goeasy’s stock price tumbles spectacularly
As a Canadian non-prime consumer credit lender, goeasy has a large market. In fact, there are more than nine million non-prime Canadians, over 70% of which have been denied credit by the banks. This means that there are a lot of Canadians in need.
Back in the summer of 2025, goeasy’s stock price was trading comfortably above $210. The company and the stock were doing well as strong demand and record financial results drove strong momentum. But as the year came to a close, things started to deteriorate. The macro environment became increasingly uncertain and strained. And in the fourth quarter of 2025, this deterioration showed up in goeasy Ltd’s results. The company’s LendCare business, which it acquired in 2021 was struggling.
The financial hit
goeasy’s LendCare business provides third-party merchant-originated loans primarily in the auto and powersports categories. In the fourth quarter of 2025, the company upped its expected delinquencies and charge-offs. Total charge-offs exceeded $330 million.
Credit performance was deteriorating significantly and goeasy has been dealing with this issue since that time. In the company’s most recent result, adjusted earnings per share (EPS) came in at $1.02, significantly lower than the prior year. The company cited continued elevated charge-offs and increases in allowances for credit losses.
Not a fun position to be in. Consumers across the board are seeing higher delinquencies and insolvencies, but non-prime consumers are feeling it even more. Rising unemployment and inflation is making it hard on non-prime borrowers.
goeasy’s dividend suspension
In order to deal with the fallout of this new environment, goeasy has taken some steps. These steps are aimed at reducing the bleed and maintaining liquidity. As such, originations will be scaled back, efficiencies will be pursued, and of course, goeasy’s dividend was suspended. The company will work on all of this while reducing its leverage.
In a nutshell, the company is working to reduce the risk of the business by improving its credit performance, cleaning up its balance sheet, and reducing the risk of its origination portfolio.
The bottom line
goeasy’s dividend suspension was really a necessary move amidst heavy credit losses and deteriorating financials. As the company embarks on its plan to get back on its feet, it will be combating deteriorating macroeconomic trends. This will make it all the more difficult for goeasy to get back on track. If unemployment and inflation continue to rise, this will hit non-prime lenders and thus goeasy the hardest.
This environment is too risky for me ,and I would rather stay away from goeasy stock until the many risks have eased.
