Core Viewpoint - Atlanticus Holdings Corporation has successfully priced an offering of $400 million aggregate principal amount of 9.750% Senior Notes due 2030, expected to be issued on August 20, 2025, subject to customary closing conditions [1]. Group 1: Offering Details - The offering consists of $400 million in Senior Notes with a 9.750% interest rate, maturing in 2030 [1]. - The proceeds from the offering will be used to repay amounts under recourse warehouse facilities, for general corporate purposes, and to pay fees and expenses related to the offering [2]. Group 2: Regulatory Compliance - The Notes are being offered to "qualified institutional buyers" under Rule 144A and to certain non-U.S. persons outside the United States in accordance with Regulation S [3]. - The Notes and related guarantees have not been registered under the Securities Act and cannot be sold in the U.S. without registration or an exemption [3]. Group 3: Company Overview - Atlanticus Holdings Corporation provides inclusive financial services through proprietary analytics, having serviced over 20 million customers and originated over $44 billion in consumer loans over 25 years [5]. - The company offers various consumer loan products, including retail and healthcare private label credit and general-purpose credit cards, through an omnichannel platform [5].

Core Viewpoint - Atlanticus Holdings Corporation announced an offering of $400 million in Senior Notes due 2030, aimed at refinancing existing debt and supporting corporate growth initiatives [1][2]. Group 1: Offering Details - The company plans to issue $400 million in Senior Notes, which will be guaranteed by certain domestic subsidiaries [1]. - The net proceeds from the offering will be used to repay amounts under recourse warehouse facilities, fund future acquisitions, and pay fees related to the offering [2]. Group 2: Regulatory Compliance - The Notes are being offered to "qualified institutional buyers" under Rule 144A and to certain non-U.S. persons outside the United States in accordance with Regulation S [3]. - The Notes have not been registered under the Securities Act and cannot be sold in the U.S. without registration or an exemption [3]. Group 3: Company Overview - Atlanticus Holdings Corporation focuses on providing inclusive financial services through proprietary analytics, having serviced over 20 million customers and originated over $44 billion in consumer loans [5]. - The company offers a range of consumer loan products, including retail and healthcare private label credit and general-purpose credit cards, through various marketing channels [5].

Core Viewpoint - Atlanticus Holdings Corporation (ATLC) reported quarterly earnings of $1.51 per share, exceeding the Zacks Consensus Estimate of $1.3 per share, and showing a year-over-year increase from $0.99 per share [1] Financial Performance - The company achieved revenues of $393.82 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 12.66%, compared to $315.64 million in the same quarter last year [2] - Over the last four quarters, Atlanticus has consistently surpassed consensus EPS estimates four times and topped revenue estimates three times [2] Stock Performance and Outlook - Atlanticus shares have declined approximately 10.6% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $1.52 for the coming quarter and $6.06 for the current fiscal year [4][7] Industry Context - The Financial - Miscellaneous Services industry, to which Atlanticus belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Core Viewpoint - Atlanticus Holdings Corporation reported significant growth in its financial results for the second quarter of 2025, achieving a net margin growth of 35.8% compared to the previous year, with a total of 4 million accounts served [1][3][6]. Financial and Operating Highlights - Total operating revenue and other income increased by 24.8% to $393.8 million compared to the second quarter of 2024 [6][11]. - Managed receivables rose by 26.1% to $3.0 billion, driven by growth in private label credit and general purpose credit card products [6][8]. - The company originated a record 590,000 new accounts and funded a record $998 million in purchase volume during the quarter [3][6]. - Net income attributable to common shareholders increased by 57.8% to $28.4 million, or $1.51 per diluted share [21][29]. Management Commentary - The company emphasized that its growth was achieved without taking on additional risk, focusing instead on expanding access to its credit-as-a-service platform through marketing initiatives and partnerships [4][5]. - Management expressed optimism about future growth opportunities across all channels, aiming for consistent, profitable results [5][6]. Revenue Breakdown - The revenue sources included interest income, finance charges, late fees on consumer loans, and other fees related to credit products [9][11]. - The company expects continued growth in interest income and related fees throughout 2025, particularly in private label credit receivables [10][11]. Expense Analysis - Total operating expenses increased by 33.7% compared to the same period in 2024, primarily due to higher marketing costs and variable servicing costs associated with growth in receivables [17][19]. - Interest expense for the quarter was $53.7 million, up from $37.9 million in the prior year, driven by increased outstanding debt and borrowing costs [12][14]. Shareholder Returns - The company repurchased and retired 41,381 shares of common stock at a cost of $1.92 million during the quarter, indicating a commitment to enhancing shareholder value [22].

Consumer Lending and Financial Services - Atlanticus has facilitated $44 billion in consumer loans over more than 25 years, supporting lenders in offering inclusive financial services [163]. - Approximately 40% of Americans have FICO® scores below 700, representing over 100 million individuals in need of credit access [161]. - The company serves over 680 dealers in 33 states and two U.S. territories through its Auto Finance segment, generating positive cash flows [176]. - Private label credit products have APRs ranging from 0% to 36% and merchant fees from 0% to 65%, enhancing overall returns on receivables [171]. - General purpose credit card offers range from $350 to $3,000 in credit lines, with APRs between 19.99% and 36% [173]. Revenue and Financial Performance - Total operating revenue and other income for the three months ended June 30, 2025, was $393,820,000, an increase of $78,179,000 (24.8%) from $315,641,000 in 2024 [177]. - Total operating revenue and other income for the six months ended June 30, 2025, was $738,693,000, an increase of $132,878,000 (21.9%) from $605,815,000 in 2024 [177]. - Net income attributable to controlling interests for the three months ended June 30, 2025, was $30,573,000, an increase of $6,293,000 (26.0%) from $24,280,000 in 2024 [177]. - Net income attributable to controlling interests for the six months ended June 30, 2025, was $62,093,000, an increase of $11,643,000 (18.8%) from $50,450,000 in 2024 [177]. - The company generated $264.3 million in cash flows from operations for the six months ended June 30, 2025, compared to $234.4 million for the same period in 2024, reflecting an increase in finance and fee collections [267]. Credit Losses and Delinquency - The provision for credit losses decreased by $364,000 (20.9%) for the three months ended June 30, 2025, totaling $1,382,000, compared to $1,746,000 in 2024 [177]. - The expected net principal credit loss rate has decreased due to a higher number of private label credit accounts acquired with limited loss exposure [195]. - The combined principal net charge-off ratio, annualized, was 20.0% for the three months ended June 30, 2025, down from 24.1% in the previous quarter, showing an improvement in credit performance [221]. - The company anticipates lower overall charge-off rates in Q3 and Q4 2025 compared to the same periods in 2024 [228]. - Improvements in delinquencies were noted in the fourth quarter of 2024 and the first two quarters of 2025, contributing to a stronger receivables base [233]. Receivables and Growth - The outstanding receivables grew to $3,046.5 million as of June 30, 2025, from $2,414.7 million as of June 30, 2024 [198]. - Managed receivables grew by over $631.8 million from June 30, 2024, to June 30, 2025, driven by private label credit and general purpose credit card products [225]. - The total managed yield for the three months ended June 30, 2025, was $280.9 million, up from $261.4 million in the previous quarter, representing a 7.0% increase [218]. - The company expects continued growth in receivables, dependent on new retail partners and consumer purchase activity [225]. - The company plans to focus on expanding retail partnerships and growing general purpose credit card receivables to maintain profitability [254]. Interest Expense and Financing - Interest expense rose by $15,736,000 (41.5%) for the three months ended June 30, 2025, totaling $53,684,000, compared to $37,948,000 in 2024 [177]. - The company anticipates additional debt financing in the coming quarters to support growth, with expected increases in quarterly interest expense due to higher effective interest rates [185]. - The interest expense ratio, annualized, was 7.4% for the three months ended June 30, 2025, compared to 6.9% in the previous quarter, indicating a slight increase in interest costs [221]. - The company issued $150.0 million of 6.125% Senior Notes due 2026, maturing on November 30, 2026, with interest payable quarterly [257]. - The company raised $239.8 million from financing activities during the six months ended June 30, 2025, compared to $53.8 million in the same period in 2024, driven by increased net borrowings [267]. Regulatory and Compliance - The company is committed to leading the industry in consumer-friendly practices while adapting to regulatory changes [168]. - The company compensates bank partners monthly for regulatory oversight and based on the performance of acquired receivables [162]. - Forward-looking statements include expectations regarding revenue, income, and credit quality, which are subject to substantial risks and uncertainties [278]. - The company faces risks related to technology reliance, security breaches, and regulatory proceedings [279]. - As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk [282].

Group 1 - Atlanticus Holdings Corporation (ATLC) reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and up from $1.09 per share a year ago, representing an earnings surprise of 12.03% [1] - The company posted revenues of $344.87 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.19%, and compared to year-ago revenues of $290.17 million [2] - Atlanticus has outperformed the market with a year-to-date loss of about 3.5%, compared to the S&P 500's decline of 4.3% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $1.66 on revenues of $354.98 million, and for the current fiscal year, it is $6.17 on revenues of $1.45 billion [7] - The estimate revisions trend for Atlanticus is favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] - The Financial - Miscellaneous Services industry, to which Atlanticus belongs, is currently in the bottom 43% of the Zacks industry rankings, which may impact stock performance [8]

Core Viewpoint - Atlanticus Holdings Corporation reported strong financial results for the first quarter of 2025, highlighting significant growth in net margin and total operating revenue, alongside an increase in customer accounts served. Financial Results - Total operating revenue and other income increased by 18.9% to $344.9 million compared to the first quarter of 2024 [5][10] - Net margin grew by 26.4% to $118.2 million, reflecting effective cost management and revenue generation strategies [4][20] - Net income attributable to common shareholders rose by 40.6% to $27.9 million, or $1.49 per diluted share [20][29] Customer Growth - The company added over 415,000 new accounts during the quarter, bringing the total accounts served to 3.8 million, an increase of 8.1% year-over-year [3][5] - The growth in customer accounts is attributed to the company's diversified credit-as-a-service platform, which enhances access to financial services for consumers [4][3] Managed Receivables - Managed receivables increased by 16.7% to $2.7 billion, driven by growth in both private label credit and general purpose credit card products [5][7] - The company experienced a net receivables growth of $388.7 million from March 31, 2024, indicating strong demand for its credit offerings [7] Operating Expenses - Total operating expenses rose by 27.4% to $77.4 million, primarily due to increased servicing costs and inflationary pressures on compensation [16][18] - The company anticipates continued increases in salaries and benefits as it expands its workforce to support growth initiatives [17][19] Interest Expense and Debt - Interest expense for the quarter was $47.5 million, up from $35.1 million in the prior year, driven by higher outstanding debt and increased borrowing costs [11][12] - Outstanding notes payable increased to $2.14 billion as of March 31, 2025, reflecting the addition of new credit facilities [12][13] Future Outlook - The company expects continued growth in managed receivables and operating revenue throughout 2025, supported by the addition of new retail partners and increased consumer spending [9][10] - Atlanticus aims to leverage its analytics and technology to enhance its credit offerings and achieve above-market growth rates [4][3]

Financial Performance - Total operating revenue and other income for Q1 2025 was $344.873 million, an increase of $54.699 million from $290.174 million in Q1 2024, representing an 18.9% growth[170]. - Net income attributable to controlling interests for Q1 2025 was $31.520 million, up from $26.170 million in Q1 2024, reflecting an increase of $5.350 million or 20.4%[170]. - The net margin for Q1 2025 was $118.223 million, an increase of $24.695 million from $93.528 million in Q1 2024, reflecting a 26.4% increase[170]. - The company reported total operating expenses of $77.355 million in Q1 2025, an increase of $16.648 million from $60.707 million in Q1 2024, representing a 27.4% rise[170]. - The total managed yield ratio for Q1 2025 was 38.5%, down from 40.0% in Q4 2024[207]. - The combined principal net charge-off ratio for Q1 2025 was 24.1%, an increase from 22.0% in Q4 2024[207]. - The average managed receivables for Q1 2025 were $2,715.5 million, slightly up from $2,689.4 million in Q4 2024[207]. - The interest expense ratio for Q1 2025 was 6.9%, compared to 6.5% in Q4 2024[207]. - The net interest margin ratio for Q1 2025 was 7.5%, down from 11.5% in Q4 2024[207]. Credit Losses and Delinquency - The provision for credit losses decreased to $1.068 million in Q1 2025 from $2.944 million in Q1 2024, indicating a reduction of $1.876 million or 63.8%[170]. - The provision for credit losses decreased by $1.9 million for the three months ended March 31, 2025, compared to the same period in 2024, mainly due to lower receivable balances[179]. - Losses in changes in fair value of loans totaled $178.3 million for the three months ended March 31, 2025, compared to $159.2 million for the same period in 2024[181]. - Delinquency rates for receivables showed that 30-59 days past due were 3.3% in Q1 2025, down from 3.8% in Q4 2024[207]. - The company’s strategy for managing delinquency includes credit line management and pricing based on risks[206]. - Delinquency rates for private label credit receivables increased in early 2024 due to a mix shift towards higher delinquency receivables but with limited loss exposure[214]. - The first quarter of 2025 saw lower overall delinquency rates in both general purpose and private label credit receivables, which is expected to lead to lower charge-off rates in the second and third quarters of 2025[214]. Receivables and Growth - Managed receivables grew to $2,706.3 million as of March 31, 2025, up from $2,317.6 million as of March 31, 2024, indicating significant growth in the receivables portfolio[192]. - The total accounts of new credit card and private label customers increased by over 230,000 as of March 31, 2025, compared to the same period in 2024[172]. - Private label credit receivables increased by $345.8 million in the twelve months ended March 31, 2025, while general purpose credit card receivables grew by $42.8 million during the same period[211]. - The company expects continued quarterly receivables growth, dependent on new retail partner additions and consumer purchase activity[211]. - The company anticipates modest growth in managed receivables throughout 2025, despite recent declines[235]. Financing and Debt - The company anticipates additional debt financing in the coming quarters as it continues to grow, with higher effective interest rates on new debt compared to maturing debt[176]. - The company issued $150.0 million of 6.125% Senior Notes due 2026, with interest payable quarterly and maturing on November 30, 2026[246]. - In January and February 2024, the company issued $57.2 million of 2029 Senior Notes, followed by an additional $60.0 million in July 2024, bearing interest at 9.25% per annum[247]. - The company expects to continue evaluating debt and equity issuances to fund investment opportunities and acquisitions of credit card receivables portfolios[257]. Operational Efficiency - Total operating expenses showed greater efficiency as fixed costs remained stable despite significant growth in managed receivables over the past two years[189]. - Operating expenses have increased due to anticipated growth in private label credit and general purpose credit card operations, with variable costs expected to rise alongside new receivable acquisitions[190]. - The company expects continued increases in salaries and benefits costs in 2025 due to employee growth and inflationary pressures[192]. Market and Economic Conditions - The company faces risks related to general economic conditions, credit losses, and competition in the financial products market[270]. - Forward-looking statements made by the company involve substantial risks and uncertainties that could affect expected results[269]. - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[273]. Technology and Innovation - The company’s flexible technology solutions allow bank partners to integrate a paperless process and instant decisioning platform, improving access to credit for underserved consumers[154]. - The company relies on proprietary and third-party technology, which poses risks related to security breaches[270].

Group 1 - Atlanticus Holdings Corporation (ATLC) closed at $51.95, with a 0.9% gain over the past four weeks, and a mean price target of $65.29 indicating a 25.7% upside potential [1] - The average price targets range from a low of $45 to a high of $90, with a standard deviation of $14.95, suggesting variability in analyst estimates [2] - Analysts show strong agreement on ATLC's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][10] Group 2 - Recent trends indicate a positive shift in earnings estimate revisions, with one estimate moving higher and the Zacks Consensus Estimate increasing by 2.2% [11] - ATLC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [12] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [12]

Core Viewpoint - The stock market is experiencing volatility due to U.S. tariffs and global trade tensions, with the S&P 500 down over 8% for the year [1] Group 1: Market Conditions - U.S. tariffs on imports from major partners like China have reached as high as 145%, while China has imposed 84% duties on U.S. products [1] - Ongoing inflation pressures and concerns about a potential recession or stagflation are contributing to market uncertainty [1] Group 2: Investment Strategy - Investors are encouraged to focus on relative price strength, identifying stocks that outperform their peers even in volatile conditions [2] - Stocks that have shown better performance than the S&P 500 over the last 1 to 3 months, combined with solid fundamentals, indicate potential for growth [6] Group 3: Recommended Stocks - IHS Holding Limited (IHS) is highlighted for its strong growth potential, with a Zacks Consensus Estimate indicating 114.7% growth for 2025 earnings and a market cap of $1.6 billion [10][11] - Atlanticus Holdings Corporation (ATLC) is noted for a 29.4% growth estimate for 2025 earnings and a significant share price increase of 110.5% over the past year [12][13] - REX American Resources Corporation (REX) has a market cap of $676.4 million and a 15.7% upward revision in earnings estimates for fiscal 2026, despite a 31.3% decline in share price over the past year [14][15] - Fresenius Medical Care AG (FMS) is recognized for a 27.1% growth estimate for 2025 earnings and a share price increase of 31.8% in the last year [16][17] Group 4: Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, as well as positive current-quarter estimate revisions [8] - Only Zacks Rank 1 (Strong Buy) stocks are considered, which have historically outperformed the S&P 500 [9]