goeasy Ltd. $GSY.CN
Jehoshaphat Research • Published September 2025 • "Where Did goeasy's Credit Losses Go?"
CORE INVESTMENT THESIS
goeasy Ltd. is a Canadian subprime lender sitting on ~$300m worth of improperly delayed credit losses buried in the balance sheet like dead bodies in the snow.
After months of studying GSY's accounting, we have concluded this is a classic subprime loan time bomb where accounting wizardry has been used to suppress delinquencies and create cost zombies piling up on the balance sheet.
COMPANY OVERVIEW
Should be ~15% according to Jehoshaphat's analysis. The difference is enough to ruin every core assumption about this business.
Interest receivable as % of quarterly income vs historical 14-17%. Indicates exploding "hidden delinquencies."
TransUnion score (~558 FICO equivalent). Lowest among subprime peers yet reports lowest delinquency rates.
Massive surge after accounting rule changes. These should have been charged off under traditional policy.
The Accounting Games Timeline
KEY PLAYERS
Jason Mullins
Former CEO (departed Jan 2025)
Announced departure July 2024, shortly after major accounting changes began. Sold stock for first time in 3 years before leaving.
Hal Khouri
Former CFO (departing Nov 2025)
CFO for 6 years, announced sudden departure with no interim replacement identified. First stock sales ever in August 2025.
Former GSY Employee
Collections/Lending Manager
"It's not playing with the books, but, well, you know... we just had so many tools to avoid the inevitable [default]."
Former Competitor Executive
Direct GSY Competitor
"Their losses have always been artificially lower... at some point the chickens come home to roost."
The ~$300M Problem Breakdown
If taken in a single year, this would result in a 14-15% NCO rate instead of 8-9%, reducing 2026 pre-tax earnings by ~63%.
Jehoshaphat Research's Verdict
According to Jehoshaphat Research, goeasy Ltd. ($GSY.CN) is a Canadian subprime lender sitting on approximately $300 million worth of improperly delayed credit losses and unreported serious delinquencies that have been buried in the balance sheet. Through systematic accounting changes including removal of the 180-day charge-off rule, aggressive delinquency suppression techniques, and creative cost deferrals, GSY has created what JR calls "cost zombies piling up in the balance sheet." Jehoshaphat Research concludes this is a classic subprime loan time bomb that can't continue much longer.
Disclaimer: This dashboard presents Jehoshaphat Research's investment thesis and opinions. All data is derived from public filings and the original research report dated September 2025. This is not investment advice. Please read the full report and conduct your own due diligence.