More than half of newcomers to Canada cite financial stress as their primary well-being challenge
'Canada's newcomer mosaic represents a diverse group, and most arrive highly educated and ready to contribute to the workforce,' said Nigel Branker, CEO of Securian Canada. 'However, despite this foundation, many still face challenges with financial security and social connections when they arrive to Canada that can persist over time.'
According to the data, nearly three-quarters (74%) of newcomers have a university education or higher, and three-quarters (75%) of newcomers are employed, mostly in full-time roles (56%). Meanwhile, only 13 per cent of newcomers to Canada are students.
Enduring challenges
Notably, financial stress and social isolation are not just short-term stressors associated with moving to a new country but can also be a chronic challenge newcomers grapple with while building their lives in Canada. In fact, financial stress levels are similar regardless of how long newcomers have been in the country: 53 per cent of newcomers in Canada for two years or less say that this is their biggest challenge and 54 per cent of those in Canada for three to five years also say this is their biggest challenge.
Similarly, 27 per cent of newcomers in Canada for two years or less report experiencing social isolation and this drops only a negligible one per cent (26%) for those who have been in Canada for three to five years.
Financial stress may be connected, in part, to confidence in performing regular financial activities, which varies across tasks: 82 per cent of newcomers feel confident navigating day-to-day personal banking, 70 per cent of respondents feel confident navigating international money transfers, yet only half (49%) of newcomers feel confident navigating insurance.
Seeking financial guidance, navigating the insurance landscape
As newcomers navigate new lives, systems and social norms in Canada, the presence of a supportive community is critical to building financial confidence and security.
Despite more than half (53%) of newcomers sharing financial decision-making with someone else, more than one-quarter (29%) of newcomers say they do not know where to go for reliable information and one-third (33%) say it is difficult or expensive to get professional advice. Further, worrying about being misled is the most cited challenge newcomers face as they navigate the Canadian insurance landscape (42%).
These challenges might help explain the insurance gap among newcomers. When asked if they have certain types of insurance, such as life, health and dental, critical illness or disability, one-in-five (20%) newcomers said they do not have any form of insurance coverage, and 60 per cent are underinsured. Notably, financial stress is highest among this group: 58 per cent of underinsured newcomers report financial stress, compared to 48 per cent among those who are insured.
Hybrid support models are essential
Newcomers rely on personal connections to guide early financial decisions. When asked for their top three sources for information on insurance, more than half (52%) of newcomers say they would speak to friends and family in Canada, 40 per cent say they would speak to a financial advisor, and nearly one-fifth (18%) say they would speak to friends and family in their home country.
Digital tools also play a critical role in enabling access and ease of use. When asked about insurance purchasing preferences, 53 per cent of newcomers prefer to buy online (via a website or mobile app) and 66 per cent of newcomers prefer digital-first solutions to make insurance management (e.g., online claims) easier in the future.
'Starting a new life in Canada comes with many exciting opportunities and challenges,' added Branker. 'Our research underscores the need for hybrid models that blend professional support with accessible digital platforms, empowering newcomers to make confident, informed decisions about their financial futures.'
Securian Canada is committed to supporting the financial futures of newcomers and their families through innovative, digital-first insurance solutions and coverage that fits diverse needs. Read the full report here.
About Newcomers' Realities: Securian Canada Insights
These findings are based on a survey conducted by Securian Canada in partnership with Angus Reid Group from February 3, 2025, to March 10, 2025. The study surveyed a total of 1,589 newcomers who were randomly picked in the online survey that was conducted in English and French. For comparison purposes, a probability sample of this size would have a margin of error of +/-5 percentage points, 19 times out of 20.
About Securian Canada
We're here for all Canadians and their families – however they define family – because everything we do helps build secure tomorrows. Our practical, life-ready insurance and protection solutions are designed to help provide financial security, so that Canadians can spend more time making every moment count.
Securian Canada is a leading insurance provider with more than 65 years of experience innovating in the Canadian financial institution and association and affinity markets. We offer insurance solutions built with genuine care – providing specialized experiences to those we serve. Securian Canada operates as an independent subsidiary of Securian Financial Group, Inc.
For more information, visit securiancanada.ca.
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Investors are encouraged to review the reconciliation of these Non-GAAP financial measures to their most directly comparable GAAP financial measures in the table titled "Reconciliation of GAAP to Non-GAAP Financial Measures". Detailed explanations of the adjustments from comparable GAAP to Non-GAAP financial measures are as follows: Non-GAAP Costs of Revenue, Costs of Service Revenue and Costs of Other Revenue Non-GAAP Costs of Revenue includes: (i) Non-GAAP Cost of Service Revenue, which is Cost of Service Revenue excluding amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, and certain severance, transition and contract exit costs; and (ii) Non-GAAP Cost of Other Revenue, which is Cost of Other Revenue excluding stock-based compensation expense and related employer payroll taxes, and certain severance, transition and contract exit costs. Non-GAAP Service Revenue Gross Margin, Other Revenue Gross Margin, and Total Revenue Gross Margin Non-GAAP Service Revenue Gross Profit and Margin as a percentage of Service Revenue and Non-GAAP Other Revenue Gross Profit and Margin as a percentage of Other Revenue are computed as Service Revenue less Non-GAAP Cost of Service Revenue divided by Service Revenue and Other Revenue less Non-GAAP Cost of Other Revenue divided by Other Revenue, respectively. Non-GAAP Total Revenue Gross Profit and Margin as a percentage of Total Revenue is computed as Total Revenue less Non-GAAP Cost of Service Revenue and Non-GAAP Cost of Other Revenue divided by Total Revenue. Management believes the Company's investors benefit from understanding these adjustments and from an alternative view of the Company's Cost of Service Revenue and Cost of Other Revenue, as well as the Company's Service, Other and Total Revenue Gross Margin performance compared to prior periods and trends. 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Management believes the Company's investors benefit by understanding our Non-GAAP net income performance as reflected in a per share calculation as ways of measuring performance by ownership in the Company. Management believes these adjustments offer investors a useful view of the Company's diluted net income per share as compared to prior periods and trends. Management evaluates and makes decisions about its business operations based on Non-GAAP financial information by excluding items management does not consider to be 'core costs' or 'core proceeds.' Management believes some of its investors also evaluate our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Management excludes the amortization of acquired intangible assets, which primarily represents a non-cash expense of technology and/or customer relationships already developed, to provide a supplemental way for investors to compare the Company's operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. Stock-based compensation expense has been excluded because it is a non-cash expense and relies on valuations based on future conditions and events, such as the market price of 8x8 common stock, that are difficult to predict and/or largely not within the control of management. The related employer payroll taxes for stock-based compensation are excluded since they are incurred only due to the associated stock-based compensation expense. Acquisition and integration expenses consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal and other professional services, due diligence, integration, and other closing costs, which are costs that vary significantly in amount and timing. Legal and regulatory costs include litigation and other professional services, as well as certain tax and regulatory liabilities. Severance, transition and contract exit costs include employee termination benefits, executive severance agreements, and cancellation of certain contracts and lease impairments. Debt amortization expenses relate to the non-cash accretion of the debt discount. 8x8, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except per share amounts) June 30, 2025 ASSETS Current assets: Cash and cash equivalents $ 81,315 $ 88,050 Restricted cash 105 462 Accounts receivable, net 60,514 49,680 Deferred contract acquisition costs 29,679 30,935 Other current assets 36,367 34,739 Total current assets 207,980 203,866 Property and equipment, net 47,972 47,919 Operating lease, right-of-use assets 32,260 33,508 Intangible assets, net 64,474 67,949 Goodwill 274,476 271,530 Restricted cash, non-current 812 812 Deferred contract acquisition costs, non-current 42,197 44,239 Other assets, non-current 14,177 13,354 Total assets $ 684,348 $ 683,177 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 42,890 $ 45,773 Accrued and other liabilities 73,768 63,025 Operating lease liabilities 11,003 11,102 Deferred revenue 42,130 37,751 Term loan, current 6,648 11,593 Total current liabilities 176,439 169,244 Operating lease liabilities, non-current 47,010 49,196 Deferred revenue, non-current 645 706 Convertible senior notes, non-current 199,039 198,790 Term loan 129,695 139,581 Other liabilities, non-current 3,330 3,456 Total liabilities 556,158 560,973 Stockholders' equity: Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of June 30, 2025 and March 31, 2025 — — Common stock: $0.001 par value, 300,000 shares authorized, 135,747 shares and 134,355 shares issued and outstanding as of June 30, 2025 and March 31, 2025, respectively 136 134 Additional paid-in capital 1,022,943 1,018,902 Accumulated other comprehensive loss (2,853 ) (9,111 ) Accumulated deficit (892,036 ) (887,721 ) Total stockholders' equity 128,190 122,204 Total liabilities and stockholders' equity $ 684,348 $ 683,177 Expand 8x8, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) Three Months Ended June 30, 2025 2024 Cash flows from operating activities: Net loss $ (4,315 ) $ (10,290 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 1,690 1,908 Amortization of intangible assets 3,501 5,099 Amortization of capitalized internal-use software costs 2,673 3,758 Amortization of debt discount and issuance costs 336 1,062 Amortization of deferred contract acquisition costs 8,956 9,838 Allowance for credit losses 290 334 Operating lease expense, net of accretion 2,854 3,165 Stock-based compensation expense 6,352 12,801 Loss on debt extinguishment 81 — Gain on remeasurement of warrants (209 ) (1,747 ) Other (368 ) 581 Changes in assets and liabilities: Accounts receivable, net (9,503 ) (732 ) Deferred contract acquisition costs (4,471 ) (4,803 ) Other current and non-current assets (2,997 ) (658 ) Accounts payable and accruals 3,347 (1,413 ) Deferred revenue 3,656 (755 ) Net cash provided by operating activities 11,873 18,148 Cash flows from investing activities: Purchases of property and equipment (377 ) (382 ) Capitalized internal-use software costs (4,039 ) (3,025 ) Purchase of cost investment — (771 ) Maturities of investments — 1,048 Net cash used in investing activities (4,416 ) (3,130 ) Cash flows from financing activities: Payments for repurchases of common stock (1,848 ) — Repayment of principal on term loan (15,000 ) — Other financing activities (489 ) (352 ) Net cash used in financing activities (17,337 ) (352 ) Effect of exchange rate changes on cash 2,788 (164 ) Net increase (decrease) in cash and cash equivalents (7,092 ) 14,502 Cash, cash equivalents and restricted cash, beginning of year 89,324 116,723 Cash, cash equivalents and restricted cash, end of period $ 82,232 $ 131,225 Supplemental disclosures of cash flow information: Interest paid $ 2,567 $ 6,707 Income taxes paid $ 574 $ 479 Payables and accruals for property and equipment $ 21 $ 3,574 Expand 8x8, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited, in thousands, except per share amounts) Three Months Ended June 30, 2025 2024 Cost of Revenue: GAAP cost of service revenue (as a percentage of service revenue) $ 53,822 30.5 % $ 49,496 28.6 % Amortization of acquired intangible assets (507 ) (2,117 ) Stock-based compensation expense and related employer payroll taxes (582 ) (1,608 ) Severance, transition and contract exit costs (944 ) (522 ) Non-GAAP cost of service revenue (as a percentage of service revenue) $ 51,789 29.4 % $ 45,249 26.2 % GAAP service revenue margin (as a percentage of service revenue) $ 122,486 69.5 % $ 123,305 71.4 % Non-GAAP service revenue margin (as a percentage of service revenue) $ 124,519 70.6 % $ 127,552 73.8 % GAAP cost of other revenue (as a percentage of other revenue) $ 7,099 140.5 % $ 7,691 143.9 % Stock-based compensation expense and related employer payroll taxes (147 ) (419 ) Severance, transition and contract exit costs (353 ) (100 ) Non-GAAP cost of other revenue (as a percentage of other revenue) $ 6,599 130.6 % $ 7,172 134.2 % GAAP other revenue margin (as a percentage of other revenue) $ (2,046 ) (40.5 )% $ (2,345 ) (43.9 )% Non-GAAP other revenue margin (as a percentage of other revenue) $ (1,546 ) (30.6 )% $ (1,826 ) (34.2 )% GAAP gross margin (as a percentage of total revenue) $ 120,440 66.4 % $ 120,960 67.9 % Non-GAAP gross margin (as a percentage of total revenue) $ 122,973 67.8 % $ 125,726 70.6 % Operating Profit (Loss): GAAP income (loss) from operations (as a percentage of total revenue) $ 565 0.3 % $ (1,374 ) (0.8 )% Amortization of acquired intangible assets 3,501 5,099 Stock-based compensation expense and related employer payroll taxes 6,909 13,593 Acquisition and integration costs — 123 Legal and regulatory costs (1) 835 548 Severance, transition and contract exit costs 4,523 2,121 Non-GAAP operating profit (as a percentage of total revenue) $ 16,333 9.0 % $ 20,110 11.3 % Expand Three Months Ended June 30, 2025 2024 Net Income (Loss): GAAP net loss (as a percentage of total revenue) $ (4,315 ) (2.4 )% $ (10,290 ) (5.8 )% Amortization of acquired intangible assets 3,501 5,099 Stock-based compensation expense and related employer payroll taxes 6,909 13,593 Acquisition and integration costs — 123 Legal and regulatory costs 835 548 Severance, transition and contract exit costs 4,523 2,121 Amortization of debt discount and issuance cost 336 1,062 Loss on debt extinguishment 81 — Gain on warrants remeasurement (209 ) (1,747 ) Other (1) (926 ) (116 ) Income tax expense effects, net (2) — — Non-GAAP net income (as a percentage of total revenue) $ 10,735 5.9 % $ 10,393 5.8 % Interest expense (3) 4,558 8,894 Provision for income taxes 1,276 676 Depreciation 1,690 1,908 Amortization of capitalized internal-use software costs 2,673 3,758 Other income (expense), net (236 ) 147 Adjusted EBITDA (as a percentage of total revenue) $ 20,696 11.4 % $ 25,776 14.5 % Shares used in computing net income (loss) per share amounts: Basic 134,809 125,999 Diluted 138,569 127,433 GAAP net loss per share - Basic $ (0.03 ) $ (0.08 ) GAAP net loss per share - Diluted $ (0.03 ) $ (0.08 ) Non-GAAP net income per share - Basic $ 0.08 $ 0.08 Non-GAAP net income per share - Diluted $ 0.08 $ 0.08 Expand (1) Amount includes capitalized interest related to property, plant and equipment from general borrowing costs during the three months ended June 30, 2025. (2) Non-GAAP adjustments do not have a material impact on our federal income tax provision due to past non-GAAP losses. (3) Amounts represent contractual interest expense related to our outstanding debt and does not include capitalized interest and amortization of debt discount and issuance costs. Expand
