goeasy Ltd.

Good morning, ladies and gentlemen, and welcome to the Go Easy Q4 2025 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, March 26th. On Wednesday, April 1st, I would now like to turn the conference over to James Obreit, Senior Vice President. Please go ahead.

Thank you, Operator, and good morning, everyone. I'm James Obreit, Senior Vice President of Investor Relations and Capital Markets. Thank you for joining us to discuss GoEasy Limited's results for the fourth quarter and full year ended December 31st, 2025. Our Q4 news release, which was issued yesterday, is available on CDAR Plus and the GoEasy website. On today's call, Patrick Enns, GoEasy's Chief Executive Officer, will provide an update on our fourth quarter performance and recent developments and an outlook for the business. Felix Wu, our Chief Financial Officer, will provide an overview of our Q4 and full year 2025 financial results, as well as our liquidity position. Also joining us on the call today is Jason Appel, GoEasy's Chief Risk Officer. After the prepared remarks, we'll open the lines for questions from our research analysts. We do have a lot to cover today, so we kindly ask analysts to limit their questions to one. The operator will pull for questions and will provide instructions at the appropriate time. Before we begin, I remind you that this conference call is open to all investors and is being webcast through the company website and supplemented by a quarterly earnings presentation, which will be referred to by our speakers today. For those dialing in by phone, the presentation can be found in the investor section of the company website. As noted on slide two, Forward-looking statements will be made on this call, which may involve assumptions that have inherent risks and uncertainties. Actual results could differ materially. I would also remind listeners that GoEasy uses non-IFRS financial measures and metrics to arrive at adjusted results. Management evaluates performance on both a reported and an adjusted basis and considers both useful for assessing underlying business performance. These are more fully described in the appendix. With that, I will turn the call over to Patrick Epps.

Thank you, James, and thank you, everyone, for listening today. I want to begin by acknowledging the impact on our shareholders, our lenders, our employees, and our other stakeholders from the charge-offs at LendCare and the impact from the mitigating actions we have taken since disclosing those charge-offs to you on March 10th. Since 2021, Our strategy has been to grow the secured loan book through merchant channels at LendCare with certain expectations of returns and credit performance. Based on what we are observing now, those expectations are not being met. We are taking decisive action to pull back where we see the weakest performance and re-optimizing our strategy to focus on where we have the greatest confidence, our direct-to-consumer, unsecured, and home equity personal loans. My top priority as CEO is to ensure we manage credit well and return to delivering the strong performance we expect of ourselves. Although we are significantly pulling back on our originations at LendCare, we see potential in these product verticals to be unlocked down the road by applying the best practices established in the strong, easy financial business to our merchant-originated loans. Since this is my first call as CEO, Let me provide a brief introduction. I've spent my entire professional career in credit, including serving as a senior credit officer at a financial institution and working in the subprime lending sector for nearly 20 years. I came to Go Easy in 2024 to lead Easy Financial, our direct-to-consumer lending business. It's a business I'm very proud, one with strong fundamentals, and it represents the majority of our loan book today. The challenges we're currently navigating pertain to LendCare, our indirect, merchant-originated, point-of-sale financing business. On our call today, we're going to discuss the matters we disclosed on March 10th in more detail and have addressed in our current financial reporting, not only to help you better understand them, but critically, to highlight what we've already been doing to address them through our six-point action plan. We've taken decisive steps in recent weeks initiated structural changes to our business, and defined a roadmap to get GoEasy back on track. We have work to do, but we have a clear plan, we're executing with urgency, and we're committed to building back stronger than ever. Now, let me walk you through where we are and where we are headed. Let's start with an update on the key financial developments of the quarter. As we'll get into in more detail later in this presentation, we saw higher levels of losses in LendCare, including an incremental charge off of loans receivable and a related charge off of loan interest and fees. We recognized a goodwill impairment charge, also related to LendCare, and saw an increase in our allowance for credit losses. Beyond identifying and promptly disclosing these matters, we set out a six-point action plan and have already taken swift and decisive steps. While one part of our business is facing some significant challenges, the fundamental market opportunity remains strong and intact. We perform best where we have built direct relationships with our customers. That's where our credit performance has been strongest. Easy Financial, the direct business I led as president before becoming CEO, continues to perform as expected. That's why our strategy is focused on growing easy financial while we stabilize and right-size Landcare by leveraging the best practices around credit discipline and collections in support of a unified operating model. Turning to a summary of our Q4 financial performance, you can see the impact of the challenges at Landcare across key metrics. Profitability in the quarter was significantly impacted by the $72 million net change in allowance for credit losses, the incremental $178 million of charge-offs, and the $160 million goodwill impairment charge. However, as a reflection of continued strong customer demand for credit, Q4 originations drove continued growth in our consumer loan portfolio, which ended the year at $5.5 billion, up almost 20% year over year. The origination levels in the quarter are a reminder of the opportunity we have to provide a valued service to an underserved customer base. This opportunity will remain available to us as we work through this period and beyond. But we are determined to approach this opportunity right. Let's look at exactly what we are doing to address the factors that impacted this quarter's results. As announced on March 10th, we have a six-point action plan. Let me walk you through what we've already delivered over the last three weeks. First, we're focusing growth on easy financial channels. We've re-optimized our unsecured personal loan credit criteria and continue to underwrite loans where we have expertise and a strong track record. Second, we've reduced land share origination. We've significantly tightened credit standards and reduced exposure in auto lending, power sports, and other merchant channels. We are maintaining a smaller presence in segments and merchants where we see better performance and opportunities for future optimization. We are fundamentally reassessing our approach in this area. Third, we're integrating functions across our business units as we adopt one unified operating model. We've already unified our EZ Financial and LendCare loan processing teams under shared leadership, eliminating duplication and ensuring consistent standards. Fourth, we're delivering operational and cost efficiencies. We implemented a workforce reduction in March impacting approximately 9% of our employees that is expected to yield $30 million in annualized run rate savings that will flow through our P&L in coming quarters. The impact of these reductions was deepest in our LendCare business unit, consistent with the reduction in activity at LendCare while we work on strengthening the business model. Going forward, we will be investing as appropriate to strengthen and develop our operations in areas where additional resources are necessary to deliver strong results. Fifth, as previously disclosed, we've brought in new leadership at LendCare with the appointment of Farhan Ali Khan as head. And six, we've taken the first steps to strengthen our balance sheet and liquidity. Dividends and share buybacks are suspended to retain cash, and we've successfully negotiated covenant amendments with our secured lenders. This is a plan already in motion, and we will continue to pursue ongoing initiatives around adjusting our business mix, integrating LendCare, looking for further opportunities to drive efficiencies, and enhancing our funding position and liquidity. Our six-point action plan does two things. It stabilizes the business in the near term, and it sets out some of the core elements of a strategy to establish a stronger foundation for future profitable growth. So let me outline our roadmap for the next three years. This isn't just about fixing what's not working. It's about building a stronger, more resilient company that can deliver sustainable, profitable growth. In 2026, our focus is on decisive action and stabilization through our six-point action plan. This includes rebuilding our access to attractively priced capital, and we are pressing ahead with that work. As this year unfolds and into next, we will be investing in our platform for scalable, disciplined growth. We will be strengthening our enterprise risk management with enhanced risk models, credit discipline, and collections resources for our indirect merchant channel. We will prudently invest in technology to automate manual processes and drive efficiency and scalability. We will leverage our unique multichannel model to pursue growth, opportunities, and develop dynamic and personal digital customer experiences. Into 2028 and beyond, we're expecting to deliver disciplined high performance. Our strategy, which you'll be hearing more about in coming quarters as we refine our plans, is designed to deliver a return to sustainable profitability through balanced portfolio expansion, a scalable operating model, and normalized credit metrics. Go Easy will be oriented to sustainable and profitable growth throughout the credit cycle. by transferring best practices from areas where we are already performing well to the entire business, we will approach the future with a significantly strengthened enterprise. So, I've told you about where we are taking GoEasy, but wanted to spend some time on the company as it stands today. On slide nine, we offer some new insights around our portfolio composition to underscore where we continue to see strong performance. We have two reporting segments, Easy Financial, our consumer lending arm that provides installment loans, and Easy Home, Canada's largest lease-owned company. Under the consumer lending umbrella are two operating segments. The Easy Financial operating segment is our direct-to-consumer lending business. This is the longtime core of Go Easy and the business I was leading as president prior to taking the CEO role. We offer unsecured personal loans, and home equity loans directly to customers through our nearly 300 locations across Canada and our digital channels. With Easy Financial, we have deep credit expertise, proven underwriting models, and strong customer relationships that have yielded a track record of success through credit cycles. We acquired the second consumer lending operating segment, LendCare, in 2021. LendCare is our point-of-sale financing business. It operates through thousands of merchant partnerships, auto dealerships, power sports dealers, and retail partners. It's an indirect channel, which means we're one step removed from the customer relationship. LendSale represents about 43% of our portfolio. Our direct channels, the healthy core of easy financial unsecured personal loans, secured home equity loans, and easy home lending comprise 57% of our portfolio. And on slide nine, we look specifically at the performance of the components of our consumer lending reporting segment. We're providing the weighted average interest rate of these three business lines to highlight the relative returns before ancillaries and interest charge-offs. The decline in unsecured loans from Q4 2024 to Q1 2025 reflects the impact of the new maximum allowable rate of interest cap at 35%. This impact has been moderating over time. Now, here's what's critical. We saw stable credit performance in Q4 in both our easy financial secured and unsecured products. The elevated credit losses we experienced were not in our direct channels. The higher charge-offs in Q4, including the incremental $178 million were attributed to the LendCare loan portfolio. Our direct business continues to perform as expected. and that's where we're focusing our growth going forward, while we invest in integrating and re-optimizing the LendCare business under Farhan's leadership. As I wrap up my initial remarks, I want to talk a little bit more about our Easy Financial Direct business. Our platform addresses a large target market, 9.5 million Canadians with non-prime credit scores who collectively represent almost $238 billion in non-mortgage credit balances. That group is underserved by the mainstream financial institutions. With no dominant player, the market opportunity is attractive for participants that can execute with discipline. As the prior slide demonstrated, this part of our business is healthy and strong. Our customers know our top-ranked brand. we've earned a great Trustpilot rating, an overall measurement of reviewer satisfaction. And our customers have access to close to 300 locations nationwide and a whole suite of digital channels to engage with us and build relationships. As we have seen, the returns are attractive and the credit performance is consistent. In my time leading Easy Financial, I have been impressed with the team members I work with the business processes, credit discipline, and overall performance. By pursuing a unified operating model going forward, we will bring that culture of success to the whole Go Easy organization. Our ability to execute this rebuild is grounded in our success with Easy Financial and our unique value proposition in the Canadian market. There is more work ahead. But Felix and I and the rest of the executive leadership team here are determined to see it through. Before I turn things over to Felix to go into more detail on our financial performance, I wanted to take a moment to formally introduce him in his new role. This is Felix's first call since being appointed as our permanent chief financial officer last month. Felix brings more than 20 years of senior leadership experience in finance, operations, risk, and compliance at financial services companies. He served as CFO three times before, most recently at Coho and previously at President's Choice Financial and Capital One Canada. At a time when we're focused on strengthening our foundation, rebuilding our balance sheet, and enhancing our risk management practices, Felix is exactly the leader we need in this seat. I have full confidence in his ability to strategically lead our financial function going forward. Now, I will turn it over to Felix for a discussion of our performance for the year and for the quarter. Felix, over to you.