I’d Wait on goeasy While its Dividend Is Suspended

While the macro environment as well as the company’s whole business model is filled with risks, should you invest?

Key Points
  • goeasy Ltd. (TSX:GSY) stock has crashed 80% from July 2025 highs above $210 due to severe credit deterioration, with total charge-offs exceeding $330 million and adjusted EPS falling to $1.02.
  • The company suspended its dividend and is scaling back loan originations while reducing leverage and improving efficiencies to address the crisis in its LendCare business and elevated credit losses.
  • Rising unemployment and inflation are hitting non-prime borrowers especially hard, making goeasy's turnaround difficult and keeping the stock high-risk despite its steep decline.

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.

some investments are riskier than others

Source: Getty Images

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.

Fool contributor Karen Thomas has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

A meter measures energy use.
Energy Stocks

Rates Are Rising Again: Is Emera Still a Sensible Retirement Stock?

Emera still offers retirement income, but borrowing costs and per-share earnings decide how comfortably that payment can grow.

Read more »

ETFs can contain investments such as stocks
Dividend Stocks

How to Use a TFSA to Generate $200 in Monthly Tax-Free Income

Use a TFSA to build $200 in monthly tax-free income with XEI and ZRE. See how these ETFs work and…

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

Smart Ways to Invest Extra Income and Say Goodbye to Financial Stress

Canadians have ways to make their extra income work as hard as they do and say goodbye to financial stress.

Read more »

how to save money
Energy Stocks

How Much Would You Need to Invest in Enbridge to Average $200 a Month?

Enbridge’s current dividend needs roughly $42,600 in shares to average $200 monthly, with payments arriving every quarter.

Read more »

Two seniors walk in the forest
Dividend Stocks

Sun Life Stock Pays 3.3%: How Much to Invest for $100 a Month in Dividends

Sun Life Financial (TSX:SLF) might be a massive bargain after Thursday's vicious plunge as stock markets sold off hard.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Turn Your TFSA Into $1,000 a Month in Tax-Free Income

Build toward $1,000 a month in tax-free income with a TFSA. See how Enbridge, Scotiabank and ZWC could help, and…

Read more »

customer fills up car with gasoline
Dividend Stocks

How Much Emergency Money Do Canadians Actually Need?

A safety fund equivalent to 3 to 6 months of living expenses is generally the baseline buffer that Canadians would…

Read more »

Piggy bank in autumn leaves
Bank Stocks

Rates Are Rising Again, So Are GICs and High-Interest Savings ETFs Even Worth It?

The Bank of Canada hiked rates to 2.50%. See what a GIC or the Purpose savings ETF earns on $10,000…

Read more »