ATLC

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET President and Chief Executive Officer - Jeffrey Howard Chief Financial Officer - William McCamey Operator: Good day, and thank you for standing by. Welcome to the Atlanticus Second Quarter 2026 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Dan Mauch. Dan Mauch: Thank you, operator, and good afternoon, everyone. Atlanticus released results for the second quarter ended June 30, 2026, this afternoon after market close. If you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website at investors.atlanticus.com. We have also posted an updated investor presentation. With me on today's call are Jeff Howard, President and Chief Executive Officer; and Bill McCamey, Chief Financial Officer. This call is being webcast and will be archived on the Investor Relations section of our website. Today's discussion may contain forward-looking statements that reflect the company's current views with respect to, among other things, earnings growth, returns on equity, portfolio performance, the sufficiency of available capital, delinquency and charge-off rates and future financial and operating results. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. Please review our earnings release and the risk factors discussed in our SEC filings. The forward-looking statements speak only as of the date on which they are made, and except to the extent required by federal securities laws, the company disclaims any obligation to update any forward-looking statement. In addition, during this call, we may refer to certain non-GAAP financial measures. Please refer to our earnings release for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measures. And with that, I'll turn the call over to Jeff. Jeffrey Howard: Thanks, Dan. Good afternoon, everyone, and thank you for joining us. Let me open by saying this month marks Atlanticus' 30th anniversary. Over that history, we have funded over $53 billion in receivables, raised over $20 billion in capital, and we have weathered numerous economic cycles, regulatory changes and competitive pressures. Most importantly, we have served over 23 million consumers and played a vital role in meeting their families' daily financial needs, often at times when others would not. What gives us the greatest sense of accomplishment, however, is the culture we have built and the many colleagues with whom we have had the privilege of working over the course of our careers. Together, through both our successes and the challenges from which we have learned, we have created a culture grounded in shared achievement and an uncompromising commitment to our purpose, empowering better financial outcomes for everyday Americans. It is our team and its collective experiences built over those 30 years that makes Atlanticus an industry leader. To all of our current and former team members, thank you and happy 30th anniversary. I'll now turn to our second quarter specifics. During the quarter, we continued to drive growth in the legacy platform, advanced the Mercury integration and maintained favorable credit performance. We delivered record profits for the quarter, demonstrating the strength of One Atlanticus and the benefits of the scale we have added over the past year. The record profits were driven by record revenue, record new customers served and record total number of customers served, all while exceeding our 20% return on equity target. On the operations front, our Mercury acquisition continues to perform better than modeled. Our portfolio management activities, portfolio performance, new originations, synergy realization and operational and technical integration are all on or ahead of plan. Growth outside of Mercury remained a major driver as well. Excluding Mercury, managed receivables increased 26% from the prior year period. We continue to add customers across both legacy general purpose and private label programs and the number of active accounts increased by more than 1 million year-over-year, excluding Mercury. Credit metrics show year-over-year improvement, largely driven by the Mercury acquisition and continued consumer stability. Within our portfolios, we see credit performance in line with our models. Next quarter will be the first where we have year-over-year comparisons that include the Mercury acquisition, and we expect to see slightly higher delinquency and charge-off rates due to having only a partial quarter of Mercury performance in 2025 as well as intentional mix shifts as our legacy portfolios continue to be faster growing. Across our observable metrics, we continue to see prudent spending and stable credit behaviors from the consumers we serve. While we are mindful of above-target inflation and once again volatile gas prices, we also note that the unemployment rate remains relatively unchanged and well below historical averages. Jobless claims were recently at 50-year lows, real wages continue to grow and real wage growth for lower-income consumers since 2019 has outpaced all other segments. Additionally, household debt service ratios, credit card debt to household income and credit card debt to GDP all remain below pre-COVID levels. As we've said before, we will continue to let the actual data guide our decision-making and leverage our now 30 years of data aggregation to identify real changes in consumer behavior and then act accordingly. As we mentioned last quarter, the competitive environment for general purpose credit cards remains robust and high solicitation volumes continue to impact response rates. At the same time, our expanded product set, proprietary analytics, multiple origination channels and greater scale are enabling us to deploy capital at attractive risk-adjusted returns. As a result, we were able to add a record 790,000 new customers served in the quarter. We will, however, continue to prioritize unit economics over volume and adjust our marketing and underwriting as conditions warrant. For the quarter, net income attributable to common shareholders was $47.4 million, a 67% increase over prior year or $2.50 per diluted share. Return on average equity was 28.1%, reflecting the continued strength and earnings power of our business. In conclusion, our priorities are clear: continue to integrate and optimize the Mercury portfolio, support profitable growth across our portfolios, maintain disciplined credit management and preserve the funding flexibility needed to capitalize on attractive opportunities. Based on the performance of the business and the opportunities in front of us, we continue to expect earnings growth and returns on equity at or above our long-term targets of 20%. And as we celebrate our 30 years in business, I believe Atlanticus has never been better positioned for the future. With that, I'll turn the call over to Bill. William McCamey: Brilliant. Thanks, Jeff. I'll begin with the income statement. Total operating revenue and other income was $744 million (sic) [ $744.3 million ] for the second quarter, an increase of 89% from the prior year period. The increase reflects the contribution from Mercury, continued expansion of our legacy general purpose and private label receivables and growth in the number of customers served. Net margin increased 83% year-over-year to $224 million. The larger receivable base and corresponding revenue growth more than offset the higher funding costs and the increased charge-offs and fair value impacts associated with the expanded portfolio. Changes in fair value were negative $396 million compared to negative $217 million in the prior year quarter. The increase primarily reflects $433 million in principal and finance charge-offs versus $212 million in associated items last year as managed receivables grew to $6.9 billion from $3 billion. These charge-offs were partially offset by other fair value items, including normal portfolio accretion, acquisition-related fair value impacts, favorable updates to valuation assumptions and a $5.5 million favorable adjustment to related contingent consideration and other purchase price adjustments. Portfolio trends remain favorable. Total managed receivables ended the quarter at $6.9 billion, up approximately 126% year-over-year and approximately 2.5% sequentially. Excluding Mercury, managed receivables were approximately $3.8 billion and an increase of roughly 26% from the prior year period. Delinquency rates improved sequentially during the quarter, reflecting stable consumer payment behavior and normal seasonal payment patterns. The combined principal net charge-off rate was 17.7%. The modest sequential increase from the first quarter primarily reflects normal portfolio seasoning and the timing and mix of receivable growth. Year-over-year, delinquency and loss rates improved, reflecting better underlying portfolio performance and the addition of the lower loss Mercury portfolio. Looking ahead, delinquency rates may increase modestly as newer receivables season and the portfolio mix evolves. We evaluate delinquency in the context of each vintage's overall unit economics. Our focus remains on vintage level profitability of our portfolio and disciplined risk-adjusted returns, not growth for growth's sake. Interest expense was $123 million compared with $54 million in the prior year quarter. The increase reflects the debt assumed with Mercury and additional financing used to support growth. We continue to see strong demand from funding partners and over the quarter have issued term ABS at tighter spreads and on more favorable terms. We are pleased to have achieved our first AAA ABS bond ratings. Total operating expenses were $158 million compared with $82 million a year ago. The increase reflects the combined company's larger employee base, higher marketing activity, greater servicing volumes and other costs associated with operating a substantially larger platform. Although reported expenses increased meaningfully, a significant portion of the increase is variable and directly connected to growth. We continue to see operating efficiencies in the fixed cost portions of the platform as receivables and accounts scale. Turning to the balance sheet. We ended the quarter with total assets of $7.5 billion and total equity of almost $700 million. Cash and restricted cash totaled $645 million. This capital, together with cash generated by the portfolio, availability on our financing facilities and access to the capital markets provides substantial capacity to support continued growth and address upcoming maturities. In summary, the second quarter delivered strong year-over-year earnings growth, continued organic receivables expansion, sequential improvement in key delinquency measures and further progress on the Mercury integration. We remain focused on allocating capital to opportunities that meet or exceed our return thresholds while maintaining disciplined credit and liquidity management. With that, I'll turn the call back to the operator for questions. Operator: [Operator Instructions] And our first question comes from Vincent Caintic with BTIG. Vincent Caintic: Great to see the consistency of the great results over the past couple of quarters. First question, I wanted to go over the fundamentals or the organic part. It was great to see the year-over-year growth even if you exclude the Mercury acquisition. I was wondering if you could talk about the industry opportunity set? Like what is the opportunity to win more merchant partners? Are there a lot of potential partners out there that you could win? And then is there a lot of competition that's also pursuing that pipeline of potential partners? Jeffrey Howard: Yes. Thanks, Vincent. Yes, look, we still see a lot of long-term opportunity in our retail credit platform. The merchant landscape is still, I would say, underserved or underpenetrated. Some of the largest merchants in the world still don't have second look programs. That being said, right, the pipeline and the process by which that pipeline develops into new receivables, new receivables growth, as we've talked about, takes a long time, isn't within our control and is a bit unpredictable. So we see good long-term opportunity. It's hard to really say how much of that's going to manifest itself in the next 4 quarters, but feel like given our platform positioning, the brand that we've created in the market over the course of our now 15 years being in the retail credit space that we're going to get all of those phone calls. We're going to get all of the swing opportunities, and we're going to win our fair share of those opportunities long term. Vincent Caintic: Okay. Great. And like on the competitive side, is there -- I guess, what's your view of the kind of competitive landscape for that pipeline? Jeffrey Howard: Look, I would say there's probably only one, what I would consider direct competitor for us to go kind of head-to-head in the space that we compete in. That being said, we have seen the primes who sit ahead of us in most of our partnerships expand and go deeper. And we've seen some pressure from tertiaries or what I would consider some more structured lenders beneath us moving upmarket. And so we're getting competitive pressure from above and below more so than we are from our direct competitors. But again, we still feel like given our technology, our risk orientation, our ability to create custom solutions for our merchants that we're well positioned, but it is certainly a competitive landscape. Vincent Caintic: Okay. Got it. That's very helpful. So next question on the Mercury integration. If you could talk about like where we are in the process, it sounds like you're ahead of where you thought you'd be. When we look at earnings this quarter, what areas of the P&L and balance sheet are already showing kind of the run-rate synergies from the Mercury acquisition? And where could we -- where should we be still seeing additional synergy upside to numbers in the future? Jeffrey Howard: Yes. Great question. Thank you. It sort of sprinkled throughout and shows in different ways, right? And some of it you won't see in synergy because it is portfolio management optimization and opportunities that we've set forth post acquisition, where we're seeing the biggest return on our time and investment. We've undertaken now the third part of our portfolio repricing. The performance of that repricing has been better than we modeled in our acquisition forecast, both in terms of realization of yield, but importantly, consumer adoption as well as any anticipated increase in delinquency have come in well below those expectations. So we've outperformed that as a primary metric. We're also in the process of realizing overhead synergies. You wouldn't have seen that because you didn't see what Mercury looked like pre-acquisition. And then on the sort of marginal operating expenses, right, we're already driving down the aggregate operating expense with more to come as our technology integration continues to run its course, all of which we expect to have completed probably mid-Q1 of next year. Operator: Our next question comes from John Hecht with Jefferies. John Hecht: I guess another question on the Mercury acquisition. I know you were repricing some portion of the portfolio. Capital One calls, it was going through a brownout with just sort of identifying customers in the discover portfolio and maybe trying to reorient them because they didn't meet the return hurdles. And so just thinking about that, have you kind of gone through where are you in that process? And what opportunities are you seeing there? Jeffrey Howard: Yes. Thanks, John. Sort of referencing back to this being our 30th year in business, during a lot of that 30-year period, we were very active buyers of other portfolios. I think we bought probably 8 other what I would consider materially sized portfolios that gave us a good bit of practice and muscle building opportunity around portfolio management, repricing, how to manage these portfolios. And that experience has really led us to sort of segment the portfolio into kind of 3 broader buckets typically. One is, hey, there's not really a price that we -- like these assets. We view the risk differently than whoever we bought the asset from, we want to run those off as quickly as we can and recognize the discount that we purchased the asset on as quickly as possible. There's another part of the portfolio that at the right yield, we would love to maintain that relationship and continue to stimulate borrowings on that account. We are probably 90% of the way through that exercise. And then the other part of the portfolio, or portfolio that we'll continue to be active in engaging with, and that's the assets that we think are appropriately priced. We want to stimulate long-term value out of by continuing to have consumers use the card and repay the card responsibly. And we're undertaking more and more of those activities, which include things like credit line increases, right, stimulating balances, promo balance transfer opportunities, things you would do to manage a portfolio for long-term value creation, which will both create good positive spread assets, but help minimize the runoff of that portfolio as we increase the origination tempo and turn the Mercury asset itself from a liquidating asset into a growing receivable base at ROAs that we really like. John Hecht: Okay. Great. And then I know that the core Atlanticus portfolio is showing very strong growth on its own. But maybe can you update us like on the private label business, some of the other new partnerships, the health care segment and the auto segment? Anything just that is worthy of updating us on those businesses? Jeffrey Howard: Yes. I'll start with the retail credit portfolio. We obviously saw, as we said in our release, good growth in that line of business as well. I think it was sort of 27%-ish, if I recall correctly, of receivables growth on retail credit, largely due to continued growth with our top 5 or 6 merchants. We have seen good year-over-year growth across the board with those merchant relationships. The purchase volume is actually down year-over-year with those relationships in total, but the AR growth continues at a pretty good clip. So our expectation is over the course of the next years, as we forecast out that business, even at flat year-over-year purchase activity, that AR will continue to grow. So the pipeline will develop as it develops, as we've talked about in the past, we don't actively forecast asset growth or profit growth from new relationships just because of the unpredictability of that business. But with the relationships that we have and the purchase activity that we see today, we're going to continue to have good year-over-year AR growth. On the health care line of business, again, that's still, I'll call it, a start-up kind of mode business for us. We continue to expand our product offerings and engage with more and more enterprise-level health care networks and health care providers. And that's starting to accelerate. Adding products and features and new tools for our health care providers to engage with us on has proven to be a winning recipe in the market for us. We're excited about the activity that represents, but it's still a very small part of our overall portfolio and contribution to the bottom line. And you asked about the auto segment. And I would say that segment of our business remains a small piece of the overall business. As we've said before, it consistently generates a bit of cash flow that we use to reinvest in our other high-growth business, and it's -- I would categorize it as a stable asset and category for us. Operator: [Operator Instructions] Our next question comes from David Scharf with Citizens Capital Markets. David Scharf: Jeff, I'm wondering if you can provide maybe just a little more color on the general purpose competitive landscape. You noted competition remains robust in your words and solicitation rates are challenging. At the same time, you're obviously still seeing tremendous organic growth in the portfolio and credit is outperforming your expectations. Based on the unit economics you're seeing and also just based on the ROE that's trending so far above your, sort of, 20% long-term target, do you see any room for more aggressive marketing? Or do you think that at this point, there's no need to pursue any growth for growth's sake? Jeffrey Howard: Thanks, David. Well, as you know, we are never of the mindset of pursuing growth for growth's sake. When we do see opportunities, we're going to lean in pretty heavily, and I think our performance is indicative of that. It's an interesting dynamic that we're seeing in the general purpose space, particularly around direct mail. The increase in direct mail solicitations at least based on the third-party data that we've aggregated, are up 50-plus percent year-over-year, which is an extraordinary amount of mail volume. And obviously, our response rates are impacted by that. Therefore, our cost to acquire an account in that channel has been impacted by that. We're still able to grow and have year-over-year growth. But in that channel, we are behind where we thought we would be heading into the second half of this year. That being said, we are ahead of where we thought we'd be on digital originations. And that's really a byproduct of us as we've said in the past, being late to the game on the digital channel and our learnings aggregating over time and us building the skill set around how to compete in that channel, how to build models specific to that channel, how to underwrite create offers specific to that channel. And I think we've made a lot of progress there, and it's indicative of the underlying growth that you see in the general purpose business being driven by more rapid rate of growth on the digital channel relative to direct mail. So does that give you the color you're looking for? David Scharf: Yes. No, that's helpful. And just to be clear, is it accurate to say that notwithstanding this tremendous increase in industry-wide solicitations, you'd still characterize the competitive landscape is being very rational? Jeffrey Howard: Yes. Thank you. That's a great clarification. 5 or 6 years ago, the offers that we would see in the mail, we wouldn't characterize as rational. And as the market has matured and some of the newer entrants have either gotten smarter about the space or exited the space, we're really left with 5 or 6, what I would consider legacy competitors and a couple of newer entrants who are a lot smarter today than they were 10 years ago. So we don't see as much in the terms of irrational pricing. And so you've got legacy competitors who've been in the space a long time, who are just leaning into what I think we all collectively see as a pretty good consumer environment. We're all looking at data in a very rigorous way and seeing a consumer that is stable, receptive to new offers of credit, but using credit responsibly. And I think that's led to the tempo of marketing that we're seeing as increasing competition. David Scharf: Got it. Understood. And maybe just one last follow-up. I'm not sure if this is a loaded question, but your ROE is running materially above your long-term targets. And I guess it's maybe a 2-part question. One is, is there anything in just the recent quarter, couple of quarters that you would call out as maybe unique one-off unsustainable and that you -- that we should expect a reversion to sort of a 20% level soon? Or alternatively, if it remains in the high 20s, does that have any implications for capital actions? Jeffrey Howard: I would say if it remains in the high 20s, we would probably do some more expanding and maybe take some of the capital actions that you referenced. The reality of where we are today is we are earning above our return thresholds. We will more likely than not be delevering a bit over the course of the forecasted period that we look ahead to and are running our business on sort of an adjusted basis as we look at that sort of future state of what our capital stack will look like. So that number will revert towards the 20% target. But we're certainly pleased to be exceeding that number, and we'll do so whenever we can. I think there was a reference to a release in some of the liability for the earn-out that would be paid as part of the Mercury acquisition. So that did contribute to, if you want to call it, over-earning in the quarter a little bit. But for the most part, it was core operating performance that led to that exceeding our return for equity return capital. Operator: Thank you. I would now like to turn the call back over to Jeff Howard for any closing remarks. Jeffrey Howard: Thank you. Look, I'll just close by saying thank you all for your interest. We're obviously very pleased with the results for this quarter. We feel like we're very, very well positioned to achieve our stated goals for the remainder of this fiscal year and for continued long-term success. We've got 30 years of operating history to leverage and looking forward to continued success over the next 30 years as well. So thank you again, and we look forward to our next report. Operator: Thank you. 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ATLANTA, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (“Atlanticus,” the “Company,” “we,” “our” or “us”), a financial technology company that enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of everyday Americans, today announced that its Board of Directors approved a quarterly dividend of $0.476563 per share to Series B Cumulative Perpetual Preferred shareholders. The cash dividend will be paid on or about September 15, 2026 to holders of record of Atlanticus’ Series B Cumulative Perpetual Preferred Stock on the close of business on September 1, 2026. About Atlanticus Holdings Corporation Empowering Better Financial Outcomes for Everyday Americans Atlanticus Holdings Corporation empowers better financial outcomes for Everyday Americans by enabling bank, retail, healthcare, and automotive partners to offer more inclusive financial solutions to consumers. Leveraging proprietary technology and advanced analytics, Atlanticus applies more than 30 years of operating experience, servicing over 23 million customers and more than $53 billion in consumer loans, to support lenders across a broad range of consumer credit products. These offerings span retail and healthcare private-label credit and general purpose credit cards, through an omnichannel platform, including strategic partnerships. Additionally, through its Auto Finance subsidiary, Atlanticus helps address the specific needs of automotive dealerships and non-prime automotive finance organizations with a range of financing and service programs. Atlanticus is guided by the principles of responsible lending, smart innovation, and expanding access to credit for consumers working toward a stronger financial future. Forward-Looking Statements This press release contains forward-looking statements that reflect the Company's current views with respect to the payment of dividends in the future. You generally can identify these statements by the use of words such as “outlook,” “potential,” “continue,” “may,” “seek,” “approximately,” “predict,” “believe,” “expect,” “plan,” “intend,” “estimate” or “anticipate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in the Company's filings with the Securities and Exchange Commission and include, but are not limited to, risks related to the integration of the Mercury business and the management of the Mercury portfolio; bank partners; merchant partners; consumers; loan demand; the capital markets; labor availability; supply chains and the economy in general; the Company's ability to retain existing, and attract new, merchant partners and funding sources; changes in market interest rates; increases in loan delinquencies; its ability to operate successfully in a highly regulated industry; the outcome of litigation and regulatory matters; the effect of management changes; cyberattacks and security vulnerabilities in its products and services; and the Company's ability to compete successfully in highly competitive markets. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. Contact:Investor [email protected] Mauch, [email protected] Savarino, [email protected]

Atlanticus Holdings Corporation ATLC used its second-quarter 2026 earnings call to emphasize faster-than-planned progress on the Mercury integration while maintaining strong growth across its legacy businesses. Management also pointed to stable consumer credit behavior despite a competitive marketing backdrop. The call’s main investor focus was on Mercury optimization, digital origination gains, credit discipline and how elevated returns could shape capital deployment. President and CEO Jeffrey Howard said Mercury is performing better than modeled across portfolio management, credit performance, new originations, synergy realization and technical integration. A BTIG analyst asked where further synergy upside could emerge. Howard said the third phase of portfolio repricing is outperforming the acquisition forecast, while technology integration is expected to be completed around the mid-first quarter of 2027. In second-quarter 2026, Atlanticus’ EPS of $2.50 matched the consensus estimate. Revenues of $744.31 million beat the Zacks Consensus Estimate of $706.40 million. Net income attributable to common shareholders rose 67.2% to $47.4 million. Atlanticus Holdings Corporation price-consensus-eps-surprise-chart | Atlanticus Holdings Corporation Quote Excluding Mercury, managed receivables increased 26.2% year over year. President and CEO Jeffrey Howard said growth continued across legacy general-purpose and private-label programs, with more than 1 million additional active accounts excluding Mercury. A BTIG analyst asked about the retail-credit opportunity. Howard said the merchant landscape remains underpenetrated, though new relationships can take a long time to convert into receivable growth and competition comes from lenders positioned both above and below Atlanticus. A Jefferies analyst also asked about adjacent businesses. Howard said retail-credit receivables continue to expand, healthcare remains a small but developing business, and auto finance remains a stable, cash-generating part of the portfolio. A Citizens JMP Securities analyst asked whether strong unit economics and elevated returns created room for more aggressive marketing. The CEO reiterated that Atlanticus would not pursue growth simply for volume. Howard said third-party data showed direct-mail solicitations up more than 50% year over year. That has pressured response rates and acquisition costs, leaving direct mail behind the company’s expectations heading into the second half. By contrast, Howard said digital originations are ahead of plan as Atlanticus improves channel-specific models, underwriting and offers. He also characterized industry pricing as rational despite the higher marketing tempo. Chief financial officer (CFO) William McCamey said delinquency rates improved sequentially in the quarter, reflecting stable payment behavior and normal seasonality. The combined principal net charge-off rate was 17.7%. President and CEO Jeffrey Howard said the next quarter should show slightly higher year-over-year delinquency and charge-off rates because the comparison will include only a partial Mercury quarter in 2025 and faster growth in legacy portfolios. CFO McCamey said newer receivables may season into modestly higher delinquencies. His emphasis remained on vintage-level profitability and disciplined risk-adjusted returns rather than receivable growth alone. McCamey said interest expense rose to $123 million from $54 million as Atlanticus absorbed Mercury debt and financed growth. He also highlighted tighter ABS spreads, better terms and the company’s first AAA ABS bond ratings. The CFO said Atlanticus ended the quarter with $645 million of cash and restricted cash, alongside portfolio cash generation, financing availability and capital-markets access to support growth and upcoming maturities. Asked by Citizens JMP Securities about a 28.1% return on average equity, Howard said sustained returns in the high 20s could support more expansion and capital actions. He also said the future capital structure contemplates some deleveraging, which would move returns toward the 20% target. Howard framed the company’s priorities around completing the Mercury integration, supporting profitable growth, maintaining disciplined credit management and preserving funding flexibility for attractive opportunities. The president and CEO said Atlanticus continues to expect earnings growth and returns on equity at or above its long-term targets of 20%, while maintaining its focus on unit economics. ATLC currently carries a Zacks Rank #3 (Hold), with an A Value Score, A Growth Score, B Momentum Score and A VGM Score. A and B Style Scores represent stronger characteristics, while the VGM Score combines value, growth and momentum factors. The favorable Style Scores provide constructive signals across those categories, but the Zacks Rank #3 is more neutral than a Zacks Rank #1 (Strong Buy) or 2 (Buy). The Zacks Rank can change as analysts revise earnings estimates following the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atlanticus Holdings Corporation (ATLC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Atlanticus Holdings (ATLC) is back in focus after reporting Q2 2026 net income of US$49.72 million and basic earnings per share from continuing operations of US$3.13, compared with US$30.57 million and US$1.87 a year earlier. See our latest analysis for Atlanticus Holdings. The latest earnings appear to have shifted sentiment around Atlanticus Holdings, with the share price at US$111.79 and a 30-day share price return of 14.80% alongside a 1-year total shareholder return of 125.34%. This suggests momentum has been building over both shorter and longer periods. If these results have you rethinking where growth could come from next, it may be a good moment to widen your watchlist and check out 20 top founder-led companies After a 125.34% 1-year return and a strong recent earnings print, Atlanticus Holdings now sits much higher on the chart. The key issue is whether most of the upside is already priced in or not yet reflected in the valuation. Atlanticus Holdings’ most followed narrative centers on a fair value estimate of $179, which is above the latest close of $111.79 and presents a bullish long-term earnings story. Read the complete narrative. Investors may want to see what this repriced credit book assumes for revenue, margins and earnings power. The narrative outlines an aggressive growth trajectory and a lower future earnings multiple that is still used to support that higher fair value estimate. Result: Fair Value of $179 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Atlanticus Holdings still faces key risks. A squeeze on near prime and subprime customers, or setbacks in the Mercury integration, could quickly challenge this optimistic earnings narrative. Find out about the key risks to this Atlanticus Holdings narrative. The bullish fair value narrative around Atlanticus Holdings is grounded in analyst earnings assumptions and multiples. Our DCF model paints a different picture. On that basis, the stock at US$111.79 screens as overvalued relative to an estimated future cash flow value of US$54.93. This kind of gap can happen when earnings look strong but the cash generation assumptions are tougher. It leaves you with a simple question: Which story do you trust more, the earnings multiple or the cash flow math? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Atlanticus Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With such a mixed picture around Atlanticus Holdings, it makes sense to review the underlying data yourself and not just the headlines. To stress test your own stance on both the upside and the downside, start by weighing the 3 key rewards and 2 important warning signs. If Atlanticus Holdings is on your radar, do not stop there. The market offers plenty of other stocks that could better match your goals and risk comfort. Target potential value opportunities by checking companies that feature on the 49 high quality undervalued stocks. Strengthen your focus on financial resilience by reviewing stocks highlighted in the solid balance sheet and fundamentals stocks screener (49 results). Hunt for underfollowed prospects by scanning the screener containing 19 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ATLC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Atlanticus Holdings Corp (NASDAQ:ATLC) delivered record profits for the quarter, driven by record revenue and a record number of new and total customers served, while exceeding its 20% return on equity target with a 28.1% ROE. The Mercury acquisition continues to outperform expectations, with portfolio management, performance, new originations, synergy realization, and operational/technical integration all on or ahead of plan. Excluding Mercury, managed receivables increased 26% year-over-year, and the number of active accounts grew by more than 1 million, demonstrating strong organic growth. Credit metrics showed year-over-year improvement, driven by the Mercury acquisition and continued consumer stability, with delinquency rates improving sequentially during the quarter. The company achieved its first AAA ABS bond ratings and continues to see strong demand from funding partners, issuing term ABS at tighter spreads and on more favorable terms. Management noted that real wage growth for lower-income consumers since 2019 has outpaced all other segments, and household debt service ratios remain below pre-COVID levels, indicating a stable consumer environment. The competitive environment for general purpose credit cards remains robust, with high solicitation volumes (up 50% year-over-year) impacting response rates and increasing the cost to acquire accounts in the direct mail channel. The company expects slightly higher delinquency and charge-off rates next quarter due to having only a partial quarter of Mercury performance in the prior year and intentional mix shifts as legacy portfolios grow faster. Total operating expenses increased significantly to $158 million from $82 million a year ago, reflecting the larger employee base, higher marketing activity, and greater servicing volumes. Interest expense more than doubled to $123 million from $54 million in the prior year quarter, due to debt assumed with Mercury and additional financing to support growth. Purchase volume in the retail credit business is down year-over-year, even though AR growth continues, indicating a potential slowdown in consumer spending activity in that segment. The company noted that the pipeline for new merchant partners is unpredictable and takes a long time to develop, making it difficult to forecast asset growth from new relationships. Warning! GuruFocus has detected 7 Warning Sign with ATLC. Is ATLC fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more color on the general purpose competitive landscape, given robust competition and challenging solicitation rates, and whether there is room for more aggressive marketing given the strong ROE?A: Jeff Howard, President and CEO, explained that while direct mail solicitations are up over 50% year-over-year, impacting response rates and acquisition costs in that channel, the company is ahead of expectations on digital originations. He emphasized that Atlanticus prioritizes unit economics over volume and will lean into opportunities when they arise, but will not pursue growth for growth's sake. The growth in the general purpose business is increasingly driven by the digital channel, where the company has made significant progress in modeling and underwriting. Q: Where are we in the Mercury integration process, and what areas of the P&L are already showing run-rate synergies versus where we should still expect additional upside?A: Jeff Howard, President and CEO, stated that the integration is ahead of plan. The company has undertaken the third part of its portfolio repricing, which has performed better than modeled in terms of yield realization and consumer adoption, with delinquency coming in well below expectations. Overhead synergies are being realized, and marginal operating expenses are being driven down as technology integration progresses, with completion expected around mid-Q1 of next year. Q: Can you discuss the industry opportunity set for winning more merchant partners and the competitive landscape for that pipeline?A: Jeff Howard, President and CEO, noted that the merchant landscape remains underserved, with many large merchants still lacking second-look programs. While the pipeline development is unpredictable and takes time, the company's 15-year brand in the retail credit space positions it well to win its fair share of opportunities. Competition is coming more from prime lenders expanding deeper and tertiary lenders moving upmarket, rather than from direct competitors. Q: Given the ROE is running materially above the 20% long-term target, are there any one-off unsustainable items in the quarter, and does the high ROE have implications for capital actions?A: Jeff Howard, President and CEO, acknowledged that a release of liability related to the Mercury acquisition contributed slightly to over-earning in the quarter, but core operating performance was the primary driver. He indicated that if ROE remains in the high 20s, the company would likely consider expanding and taking capital actions. However, he expects the ROE to revert toward the 20% target as the company deleverages over its forecasted period. Q: Can you update us on the private label business, healthcare segment, and auto segment?A: Jeff Howard, President and CEO, reported that the retail credit portfolio saw roughly 27% receivables growth, driven by top merchant relationships, despite purchase volume being down year-over-year. The healthcare business is in startup mode but accelerating with enterprise-level networks as product offerings expand, though it remains a small contributor. The auto segment remains a small, stable piece of the business that generates cash flow for reinvestment in higher-growth areas. Q: How are you approaching the Mercury portfolio repricing, and what opportunities are you seeing in that process?A: Jeff Howard, President and CEO, explained that based on 30 years of experience buying portfolios, the company segments assets into three buckets: those to run off quickly, those to reprice to maintain relationships, and those to stimulate long-term value. The company is about 90% through the repricing exercise and is now focusing on activities like credit line increases and balance transfer offers to turn the Mercury asset from a liquidating portfolio into a growing receivable base at attractive ROAs. Q: Despite the tremendous increase in industry-wide solicitations, would you still characterize the competitive landscape as rational?A: Jeff Howard, President and CEO, confirmed that the competitive landscape is rational, unlike five or six years ago. The market has matured, with legacy competitors and newer entrants being smarter about pricing. The increased marketing tempo reflects a collective view of a stable consumer environment receptive to credit offers but using credit responsibly. Q: What drove the record profits in the quarter, and how should we view the year-over-year increase in charge-offs and fair value impacts?A: Bill McKamey, CFO, attributed record profits to record revenue, record new customers served, and record total customers served. The increase in fair value changes and charge-offs reflects the expanded portfolio, with managed receivables growing to $6.9 billion from $3 billion. Charge-offs were partially offset by favorable valuation updates and a $5.5 million favorable adjustment to contingent consideration related to the Mercury acquisition. Q: Can you provide more detail on the funding environment and the recent ABS issuances?A: Bill McKamey, CFO, noted strong demand from funding partners, with term ABS issued at tighter spreads and more favorable terms during the quarter. The company achieved its first AAA ABS bond ratings, reflecting the strength of the platform and the quality of the underlying receivables. Q: How should we think about delinquency and charge-off rates going forward, given the mix shift and Mercury acquisition?A: Bill McKamey, CFO, stated that delinquency rates may increase modestly as new receivables season and the portfolio mix evolves. The combined principal net charge-off rate was 17.7% in the quarter, with a modest sequential increase from the first quarter reflecting normal seasoning and growth timing. The company evaluates delinquency in the context of vintage-level profitability and disciplined risk-adjusted returns, not growth for growth's sake. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Atlanticus Holdings Corporation? Here are five stocks we like better. Record second-quarter performance: Atlanticus increased net income attributable to common shareholders 67% year over year to $47.4 million, while revenue rose 89% to $744 million. Return on average equity reached 28.1%, above the company’s 20% long-term target. Mercury acquisition integration is ahead of plan: Managed receivables grew 126% year over year to $6.9 billion, and Atlanticus said portfolio repricing, credit performance, synergies and technology integration were meeting or exceeding expectations. Credit remains stable but competition is increasing: Delinquencies improved sequentially and year over year, although management expects modest increases as newer receivables season. Direct-mail competition is pressuring originations and acquisition costs, while digital and private-label businesses are outperforming expectations. Atlanticus (NASDAQ:ATLC) reported record second-quarter profit and revenue as the consumer-credit company continued to expand its legacy businesses and integrate the Mercury acquisition. Net income attributable to common shareholders rose 67% year over year to $47.4 million, or $2.50 per diluted share, for the quarter ended June 30. Return on average equity was 28.1%, exceeding the company’s long-term target of at least 20%. → 3 Drone Stocks That Should Soar After the Summer Slump President and Chief Executive Officer Jeff Howard said the quarter’s record results were supported by record revenue, record new customers served and a record total customer base. Atlanticus added 790,000 new customers during the period. “We delivered record profits for the quarter, demonstrating the strength of one Atlanticus and the benefits of the scale we have added over the past year,” Howard said. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Total operating revenue and other income increased 89% from a year earlier to $744 million. Chief Financial Officer Bill McCamey said the increase reflected Mercury’s contribution, growth in legacy general-purpose and private-label receivables, and a larger customer base. Net margin rose 83% to $224 million. Managed receivables ended the quarter at $6.9 billion, up about 126% from the prior-year period and 2.5% sequentially. Excluding Mercury, managed receivables totaled about $3.8 billion, representing approximately 26% year-over-year growth. → Jersey Mike's Serves Fresh Gains After IPO Stumble Atlanticus recorded changes in fair value of negative $396 million, compared with negative $217 million in the prior-year quarter. McCamey said the increase was primarily driven by $433 million of principal and finance-charge charge-offs, compared with $212 million in associated items a year earlier, as receivables expanded from $3 billion to $6.9 billion. Those charge-offs were partially offset by portfolio accretion, acquisition-related fair-value effects, favorable valuation-assumption updates and a $5.5 million favorable adjustment related to contingent consideration and other purchase-price adjustments. Interest expense increased to $123 million from $54 million, reflecting debt assumed in the Mercury transaction and additional funding for growth. Operating expenses increased to $158 million from $82 million, driven by the larger employee base, higher marketing activity, servicing volumes and costs associated with a bigger platform. McCamey said a substantial portion of the higher expenses was variable and linked to growth, while the company continued to see efficiencies in fixed platform costs as receivables and accounts scale. Howard said the Mercury acquisition was performing better than originally modeled, with portfolio management, credit performance, originations, synergy realization, operational work and technology integration all at or ahead of plan. The company has completed what Howard described as the third phase of portfolio repricing. He said the repricing effort has produced better-than-modeled yield realization and consumer adoption, while delinquency increases have been below expectations. Atlanticus is also working to reduce marginal operating expenses through technology integration. Howard said the company expects that process to be completed around the middle of the first quarter of 2027. In managing the acquired portfolio, the company has categorized accounts between those it intends to run off, those it would retain at an appropriate yield, and accounts it considers appropriately priced for long-term value creation. Howard said Atlanticus was about 90% through that process and was taking steps such as offering credit-line increases, encouraging balances and providing promotional balance-transfer opportunities. The objective is to shift Mercury from a liquidating portfolio into a growing receivables base that produces returns on assets Atlanticus finds attractive, he said. Delinquency rates improved sequentially in the second quarter, which McCamey attributed to stable consumer payment behavior and normal seasonal patterns. The combined principal net charge-off rate was 17.7%, with the modest sequential increase reflecting portfolio seasoning and the timing and mix of receivables growth. Year over year, delinquency and loss rates improved due to stronger underlying portfolio performance and the lower-loss Mercury portfolio. However, management said delinquency rates could increase modestly as newer receivables season and the portfolio mix changes. Howard said the next quarter will be the first with year-over-year comparisons that include Mercury. The company expects somewhat higher reported delinquency and charge-off rates because Mercury contributed only a partial quarter in the prior-year comparison and because faster-growing legacy portfolios are shifting the mix. Management said it continues to observe prudent spending and stable credit behavior among consumers. Howard cited relatively unchanged unemployment, low jobless claims, real wage growth and household debt measures that remain below pre-COVID levels. Atlanticus said competition in general-purpose credit cards remains robust, particularly in direct mail. Howard said third-party data indicated direct-mail solicitation volumes were up more than 50% year over year, pressuring response rates and raising acquisition costs in that channel. The company remains behind its expectations for direct-mail originations entering the second half of the year, Howard said. However, digital originations are ahead of expectations as Atlanticus builds experience, underwriting models and offers tailored to that channel. Despite higher solicitation volumes, Howard characterized the competitive environment as rational, saying the market now consists largely of experienced competitors that are responding to a stable consumer environment rather than relying on irrational pricing. In private-label retail credit, Howard said receivables grew by roughly 27%, driven largely by ongoing expansion with the company’s five or six largest merchant partners. Purchase volume across those relationships was down year over year, but receivables continued to grow, and management expects that trend to continue even with flat purchase activity. The healthcare business remains in an early-stage or “startup” phase, though Atlanticus is expanding product offerings and engaging with more enterprise healthcare networks and providers. The auto business remains a small, stable business that produces cash flow for reinvestment in faster-growing operations. Atlanticus ended the quarter with $7.5 billion in total assets, nearly $700 million in total equity, and $645 million of cash and restricted cash. McCamey said the company also has portfolio cash generation, financing-facility availability and capital-market access to support growth and upcoming maturities. The company issued term asset-backed securities during the quarter at tighter spreads and more favorable terms, and achieved its first AAA ABS bond ratings. Howard said Atlanticus expects earnings growth and returns on equity at or above its long-term 20% target, while prioritizing disciplined credit management, funding flexibility and returns over growth for its own sake. Atlanticus Holdings Corporation is a specialty financial services holding company that provides credit products and solutions to consumers across the United States. Through its subsidiaries, the company offers proprietary credit card programs, installment loan products and deposit accounts designed to serve customers who may have limited access to traditional credit. Atlanticus markets its offerings through a variety of channels, including direct‐to‐consumer online platforms, mail order, call centers and partnerships with retail and e-commerce businesses. The company underwrites and services credit card portfolios under private-label and co-branded agreements, combining technology‐enabled underwriting with tailored customer service. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Atlanticus Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Atlanticus Holdings Corporation (ATLC) came out with quarterly earnings of $2.5 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $1.72 per share when it actually produced earnings of $2.23, delivering a surprise of +29.65%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Atlanticus, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $744.31 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.37%. This compares to year-ago revenues of $393.82 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Atlanticus shares have added about 66.3% since the beginning of the year versus the S&P 500's gain of 12.8%. While Atlanticus has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Atlanticus was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.08 on $800.5 million in revenues for the coming quarter and $9.48 on $3.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Qfin Holdings Inc. - Sponsored ADR (QFIN), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of -44.4%. The consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. Qfin Holdings Inc. - Sponsored ADR's revenues are expected to be $520.01 million, down 28.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atlanticus Holdings Corporation (ATLC) : Free Stock Analysis Report Qfin Holdings Inc. - Sponsored ADR (QFIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter Earnings of $2.50 Per Diluted Common Share Resulting from Continued Strong Asset Level Performance and Acquisition Integration ATLANTA, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (Atlanticus, the Company, we, our or us), a financial technology company that enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of Everyday Americans, today announced its financial results for the second quarter ended June 30, 2026. An accompanying earnings presentation is available in the Investors section of the Company’s website at www.atlanticus.com or by clicking here. Financial and Operating Highlights Second Quarter 2026 Highlights (all comparisons to the Second Quarter 2025, unless otherwise indicated) Record net income attributable to common shareholders of $47.4 million, an increase of 67.2%, or $2.50 per diluted common share Total operating revenue and other income increased 89.0% to a record $744.3 million Managed receivables1 increased 126.2% to $6.9 billion Return on average equity of 28.1%2 Purchase volume of $1,756.6 million Total accounts served in excess of 6.3 million3 Record new customers served of over 790,000 added in the second quarter 2026 1) Managed receivables is a non-GAAP financial measure and excludes the results of our Auto Finance receivables. See Calculation of Non-GAAP Financial Measures for important additional information.2) Return on average equity is calculated using Net income attributable to common shareholders as the numerator and the average of Total shareholders’ equity attributable to Atlanticus Holdings Corporation as of June 30, 2026 and March 31, 2026 as the denominator, annualized. 3 ) In our calculation of total accounts served, we include all accounts with account activity and accounts that have open lines of credit at the end of the referenced period. Management Commentary Jeff Howard, President and Chief Executive Officer of Atlanticus stated, ”This month marks the 30th anniversary of the founding of our company. Over our 30 year history, we have funded over $53 billion in receivables, raised over $20 billion in capital, and weathered numerous economic cycles, regulatory changes, and competitive pressures. Most importantly, we have served over 23 million consumers and played a vital role in meeting their families' daily financial needs, often at times when others would not. We are proud of the role we have played for three decades in Empowering Better Financial Outcomes for millions of Everyday Americans. This quarter also produced several financial milestones as we established records for new customers served of over 790,000, record total customers served of over 6.3 million, record revenue of $744.3 million, and record profits with net income of $47.4 million, or $2.50 per diluted common share. Managed receivables grew 126.2% year-over-year to just under $7 billion. Excluding the Mercury acquisition, managed receivables grew 26.2%, with contributions to growth coming from both our retail credit and legacy general purpose lines of business equally. Finally, we once again exceeded our return on capital target, achieving a return on average equity of 28.1%. This is a direct result of our team’s dedicated focus on unit level profitability, the growing contribution of the Mercury portfolio acquisition and related synergy realization, and the ongoing benefits of our scale. Over our 30 year history our business has changed in many ways. But our culture of collective success and our commitment to our purpose have never wavered. It is our team, built on our aggregated experiences, that makes Atlanticus an industry leader. This team, combined with industry leading products, technology, and scale, have Atlanticus better positioned than at any other time in our history.” *nm = not meaningful Managed Receivables Managed receivables increased 126.2% to $6.9 billion, including $3.0 billion in receivables associated with our Mercury brand. Excluding receivables associated with Mercury, managed receivables grew by over $798 million from June 30, 2025 (an increase of 26.2%) driven by growth in both general purpose credit card and private label credit products offered by our bank partners. Total accounts served increased 57.8% to 6.3 million (inclusive of 1.2 million accounts served associated with our Mercury brand). The increased purchases of receivables arising in accounts issued by our bank partners to customers of our existing retail partners helped grow our private label credit receivables by $387.1 million in the twelve months ended June 30, 2026. Our general purpose credit card receivables grew by $3.5 billion during the twelve months ended June 30, 2026, including $3.0 billion of credit card receivables (as of June 30, 2026) associated with our acquisition of Mercury. Absent our Mercury transaction, our general purpose credit card receivables grew 27.0%. We continue to see growth in our private label products. We currently expect continued, but more modest, period-over-period quarterly growth in both our general purpose credit card receivables and retail receivables. This results from expected modest seasonal declines in purchases associated with a key retail partner, and anticipated temporary declines in the Mercury portfolio related to product, policy and pricing changes we implemented following the acquisition. Total Operating Revenue and Other Income Total operating revenue and other income consists of 1) interest income, finance charges and late fees on consumer loans, 2) other revenues associated with credit products, including annual and merchant fees and 3) interchange and servicing income on loan portfolios and other customer related fees. We are currently experiencing continued period-over-period increases in private label credit and general purpose credit card receivables. Growth in these receivables includes general purpose credit card receivables associated with our acquisition, which accounted for $3.0 billion in receivables as of June 30, 2026. Growth in our general purpose credit card receivables is expected to continue throughout 2026 (offset marginally by run-off on our acquired Mercury portfolio) and to outpace growth in our private label credit receivables as we continue to expand our marketing efforts. We currently expect our private label credit receivable balance to modestly increase in 2026 as volumes of receivables acquisitions for which we have limited loss exposure due to agreements with retail partners, are expected to slow, offsetting general growth from other retail partners. During the quarter ended June 30, 2026, total operating revenue and other income increased 89.0% to $744.3 million. This increase was primarily due to our acquisition of Mercury, which contributed $239.9 million to Total operating revenue and other income in the period. Adding to this was quarterly growth in both new credit card and private label customers serviced, the total accounts of which increased over 1,000,000 for the quarter ended June 30, 2026 (excluding those serviced accounts added as part of our acquisition of Mercury) compared to the same period in 2025. As part of our acquisition of Mercury, we continue to enact a number of product, policy and pricing changes on the acquired portfolio of general purpose credit card receivables. These changes are expected to result in meaningful additions to our Total operating revenue and other income in 2026 and beyond, although certain of the changes will take several quarters to be fully realized. Interest Expense Interest expense was $123.4 million for the quarter ended June 30, 2026, compared to $53.7 million for the quarter ended June 30, 2025. The higher expenses were primarily driven by increases in outstanding debt, in proportion to growth in our receivables, coupled with increases in the cost of borrowing. Outstanding notes payable, net of unamortized debt issuance costs and discounts, associated with our private label credit and general purpose credit card platform (including those associated with the Mercury acquisition) increased to $5,553.6 million as of June 30, 2026, from $2,431.0 million as of June 30, 2025. This growth, period over period, included notes payable associated with our Mercury acquisition of $2,711.4 million as of June 30, 2026. Interest expense increased $69.7 million for the quarter ended June 30, 2026, when compared to the quarter ended June 30, 2025. The majority of this increase in interest expense relates to the addition of notes payable associated with the Mercury transaction with the remainder largely due to the addition of multiple credit facilities associated with growth in our card and loan receivables, coupled with the issuances of $400.0 million aggregate principal amount of 9.750% Senior Notes due 2030. We anticipate additional debt financing over the next few quarters as we continue to grow our receivables. As such, and when coupled with the interest expense associated with the acquired Mercury debt facilities, we expect our quarterly interest expense to increase compared to prior periods throughout 2026. Changes in Fair Value of Loans Changes in fair value of loans increased to $(396.3) million for the quarter ended June 30, 2026 compared to $(216.8) million for the quarter ended June 30, 2025. This increase was largely driven by increased losses in our Changes in fair value of loans due to charge-offs (net of recoveries) associated with a much larger receivable base. These charge-offs were offset somewhat by favorable assumption changes for the second quarter of 2026 which were largely due to general improvements in customers served added as well as increased valuation associated with our acquired Mercury portfolio. Additionally offsetting these losses was a $5.5 million gain related to a reduction in the fair value of contingent consideration and other purchase price adjustments associated with our acquisition of Mercury. Receivables acquired as part of our acquisition of Mercury were initially valued at a lower fair value than our existing portfolio of credit card receivables (as a percentage of the gross outstanding receivable). We have been enacting a number of product, policy and pricing changes on the Mercury portfolio of general purpose credit card receivables. As these changes are implemented, we have seen, and expect to continue to see, improvement in the fair value of these receivables. We include asset performance degradation in our forecasts to reflect both changes in assumed asset level economics and the possibility of delinquency rates increasing in the near term (and the corresponding increase in charge-offs and decrease in payments) above the level that current trends would suggest. Total Operating Expenses Total operating expenses increased 91.7% in the quarter when compared to the same period in 2025, driven primarily, in all expense categories, by our acquisition of Mercury. Additional increases were noted due to increased marketing and solicitation costs associated with assisting our bank partners acquire new customers and variable servicing costs associated with growth in our receivables. We also experienced growth in the number of employees and related compensation expenses. Certain other expenditures related to occupancy and other third-party expenses, which are largely fixed in nature, also contributed to the increase for the quarter as compared to the second quarter of 2025. We expect some continued increase in year over year salaries and benefits in 2026 compared to corresponding periods in 2025 resulting from the acquisition of Mercury and its associated employee base. As many of our expenses associated with our card and loan servicing efforts are now variable based on the amount of underlying receivables, we would expect certain expenses to continue to grow in 2026 commensurate with planned growth in our receivables balances. These expenses will primarily relate to the variable costs card and loan servicing expenses associated with new receivable acquisitions. In addition, as we continue to adjust our underwriting standards to reflect changes in fee and finance assumptions on new receivables, and allow for overall increases in the cost to successfully market to consumers, we expect period over period marketing costs for 2026 to increase relative to those experienced in 2025. The frequency and timing of increased marketing efforts could vary and are dependent on macroeconomic factors, response rates and approval rates. Net Income Attributable to Common Shareholders Net income attributable to common shareholders increased 67.2% to $47.4 million, or $2.50 per diluted share for the quarter ended June 30, 2026. Share Repurchases We repurchased and retired 996 shares of our common stock in the quarter ended June 30, 2026. About Atlanticus Holdings Corporation Empowering Better Financial Outcomes for Everyday Americans Atlanticus Holdings Corporation empowers better financial outcomes for Everyday Americans by enabling bank, retail, healthcare, and automotive partners to offer more inclusive financial solutions to consumers. Leveraging proprietary technology and advanced analytics, Atlanticus applies more than 30 years of operating experience, servicing over 23 million customers and more than $53 billion in consumer loans, to support lenders across a broad range of consumer credit products. These offerings span retail and healthcare private-label credit and general purpose credit cards, through an omnichannel platform, including strategic partnerships. Additionally, through its Auto Finance subsidiary, Atlanticus helps address the specific needs of automotive dealerships and non-prime automotive finance organizations with a range of financing and service programs. Atlanticus is guided by the principles of responsible lending, smart innovation, and expanding access to credit for consumers working toward a stronger financial future.Forward-Looking Statements This press release contains forward-looking statements that reflect the Company's current views with respect to, among other things, expectations for the benefits of the acquisition of Mercury, including expected synergies and future financial and operating results; the Company’s plans, objectives, expectations and intentions for Mercury including the product, policy and pricing changes to the acquired portfolio and the timing and results related thereto; long-term growth plans and opportunities; operations; financial performance; amount and pace of growth of managed receivables; mix of receivables; fair value of receivables; debt financing; interest expense; operating expense; and marketing efforts. You generally can identify these statements by the use of words such as outlook, potential, continue, may, seek, approximately, predict, believe, expect, plan, intend, estimate or anticipate and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as will, should, would, likely and could. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in the Company's filings with the Securities and Exchange Commission and include, but are not limited to, risks related to the integration of the Mercury business and the management of the Mercury portfolio; bank partners; merchant partners; consumers; loan demand; the capital markets; labor availability; supply chains and the economy in general; the Company's ability to retain existing, and attract new, merchant partners and funding sources; changes in market interest rates; increases in loan delinquencies; its ability to operate successfully in a highly regulated industry; the outcome of litigation and regulatory matters; the effect of management changes; cyberattacks and security vulnerabilities in its products and services; and the Company's ability to compete successfully in highly competitive markets. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. Contact:Investor [email protected] Mauch, [email protected] Savarino, [email protected] (1) Both the Series A preferred stock and the Series B preferred stock have no par value and are part of the same aggregate 10,000,000 shares authorized. Additional Information Additional trends and data with respect to our private label credit and general purpose credit card receivables can be found in our latest Form 10-Q filing with the Securities and Exchange Commission under Management's Discussion and Analysis of Financial Condition and Results of Operations. Calculation of Non-GAAP Financial Measures This press release presents information about managed receivables, which is a non-GAAP financial measure provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (GAAP). In addition to financial measures presented in accordance with GAAP, we present managed receivables, total managed yield, combined principal net charge-offs, and fair value to total managed receivables ratio, all of which are non-GAAP financial measures. These non-GAAP financial measures aid in the evaluation of the performance of our credit portfolios, including our risk management, servicing and collection activities and our valuation of purchased receivables. The credit performance of our managed receivables provides information concerning the quality of loan originations and the related credit risks inherent with the portfolios. Management relies heavily upon financial data and results prepared on the managed basis in order to manage our business, make planning decisions, evaluate our performance and allocate resources. These non-GAAP financial measures are presented for supplemental informational purposes only. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, GAAP financial measures. These non-GAAP financial measures may differ from the non-GAAP financial measures used by other companies. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures or the calculation of the non-GAAP financial measures are provided below for each of the fiscal periods indicated. Additionally, we calculate average managed receivables based on the quarter-end balances. The comparison of non-GAAP managed receivables to our GAAP financial statements requires an understanding that managed receivables reflect the face value of loans, interest and fees receivable without any consideration for potential loan losses or other adjustments to reflect fair value. A reconciliation of Loans at fair value to Total managed receivables is as follows: (1) The fair value mark against receivables reflects the difference between the face value of a receivable and the net present value of the expected cash flows associated with that receivable.(2) Total managed receivables are equal to the aggregate unpaid gross balance of loans at fair value.(3) The Fair value to Total managed receivable ratio is calculated using Loans at fair value as the numerator, and Total managed receivables, as the denominator. A reconciliation of our operating revenues and other income, net of finance and fee charge-offs, to comparable amounts used in our calculation of Total managed yield is as follows: The calculation of Combined principal net charge-offs is as (1) Finance charge-offs are included as a component of our Changes in fair value of loans in the consolidated statements of income.

Looking back on personal loan stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Atlanticus Holdings (NASDAQ:ATLC) and its peers. Personal loan providers offer unsecured credit for various consumer needs. The sector benefits from digital application processes, increasing consumer comfort with online financial services, and opportunities in underserved credit segments. Headwinds include credit risk management in unsecured lending, regulatory oversight of lending practices, and intense competition affecting margins from both traditional and fintech lenders. The 9 personal loan stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 7% while next quarter’s revenue guidance was 0.8% below. In light of this news, share prices of the companies have held steady as they are up 3.5% on average since the latest earnings results. Using data analytics to serve the millions of Americans with less-than-perfect credit scores, Atlanticus Holdings (NASDAQ:ATLC) provides technology and services that help lenders offer credit products to consumers often overlooked by traditional financing providers. Atlanticus Holdings reported revenues of $556.8 million, up 87.2% year on year. This print fell short of analysts’ expectations by 7.6%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates. Jeff Howard, President and Chief Executive Officer of Atlanticus, stated, “First and foremost, I want to congratulate and thank the entire Atlanticus team. Their efforts over the last six months have enabled us to be well ahead of plan in the integration of the Mercury acquisition, while providing exceptional service for the millions of customers we serve and generating positive results for our shareholders. For the quarter, we earned $2.23 per share, an increase of 49.8% over last year, and exceeded our return on capital target with a return on equity of 26.8%. This was accomplished through a number of value drivers including the Mercury portfolio, as well as our legacy business lines, which saw a 41% increase in new accounts originated on behalf of our bank partners, a 12% increase in purchase volume, and a substantial reduction in our net charge-off rate compared to first quarter of 2025. Atlanticus Holdings achieved the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 5.3% since reporting and currently trades at $82.47. Is now the time to buy Atlanticus Holdings? Access our full analysis of the earnings results here, it’s free. Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ:SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers. Sezzle reported revenues of $135.5 million, up 29.2% year on year, outperforming analysts’ expectations by 5.3%. The business had a stunning quarter with full-year EPS guidance exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. The market seems happy with the results as the stock is up 39.9% since reporting. It currently trades at $120.34. Is now the time to buy Sezzle? Access our full analysis of the earnings results here, it’s free. Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm (NASDAQ:AFRM) provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans. Affirm reported revenues of $1.04 billion, up 32.6% year on year, exceeding analysts’ expectations by 4.3%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates. Interestingly, the stock is up 1.5% since the results and currently trades at $68.40. Read our full analysis of Affirm’s results here. Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE:ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil. Enova reported revenues of $875.1 million, up 17.4% year on year. This number surpassed analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also put up a decent beat of analysts’ revenue and EPS estimates. The stock is flat since reporting and currently trades at $167.78. Read our full, actionable report on Enova here, it’s free. With well over one hundred million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America. Nubank reported revenues of $5.32 billion, up 57.6% year on year. This print topped analysts’ expectations by 48.9%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates. Nubank pulled off the biggest analyst estimate beat among its peers. The stock is down 6.5% since reporting and currently trades at $12.09. Read our full, actionable report on Nubank here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.