Acquisition and Expansion - Atlanticus acquired Mercury for approximately $166.5 million in cash, adding 1.3 million credit card accounts and $3.2 billion in credit card receivables[187][188] - The acquisition of Mercury aligns with Atlanticus's strategic objective to expand consumer credit offerings and increase scale within credit card operations[187] - The contingent consideration from the Mercury acquisition may result in earn-out payments based on charge-off performance over three years[188] - The acquisition of Mercury added approximately $3,159.9 million in general purpose credit card receivables to the company's portfolio[236] - The company expects continued growth in the acquisition of general purpose credit card receivables throughout 2025, aided by the Mercury acquisition[259] Financial Performance - Total operating revenue and other income for the three months ended September 30, 2025, was $495,292,000, an increase of $144,338,000 (approximately 41%) from $350,954,000 in 2024[202] - Total operating revenue and other income for the nine months ended September 30, 2025, reached $1,233,985,000, up by $277,216,000 (approximately 29%) from $956,769,000 in 2024[202] - Net income for the three months ended September 30, 2025, was $24,588,000, a decrease of $4,601,000 (approximately 15.7%) from $29,189,000 in 2024[202] - Total operating expenses for the three months ended September 30, 2025, were $108,333,000, an increase of $45,259,000 (approximately 71.6%) from $63,074,000 in 2024[202] - The company generated $371.7 million in cash flows from operations for the nine months ended September 30, 2025, an increase from $346.8 million in the same period of 2024[287] Receivables and Credit Quality - Private label credit and general purpose credit card receivables increased to $6,600.1 million as of September 30, 2025, from $2,653.8 million as of September 30, 2024, with the acquisition of Mercury contributing $3,159.9 million[205] - The total number of accounts increased by over 2.1 million as of September 30, 2025, including approximately 1.3 million accounts added from the Mercury acquisition[219] - The Expected net principal credit loss rate has decreased due to a higher number of private label credit accounts acquired with limited loss exposure[217] - The percentage of managed receivables 90 or more days past due was 5.7% as of September 30, 2025, down from 6.9% in the previous year, indicating better delinquency management[243] - The combined principal net charge-off ratio, annualized, was 4.4% for the third quarter of 2025, compared to 4.1% in the second quarter of 2025, indicating a return to historically normalized levels[263] Interest and Expenses - Interest expense increased by $33,000,000 (approximately 77.7%) for the three months ended September 30, 2025, compared to the same period in 2024, totaling $75,464,000[210] - The interest expense ratio for Q2 2025 was 6.2%, a decrease from 7.4% in Q2 2024, suggesting improved cost management[243] - The interest expense ratio, annualized, has increased due to rising federal funds borrowing rates and is expected to continue increasing throughout 2025[256] - The company anticipates additional debt financing in the coming quarters, with outstanding notes payable increasing to $5,297.3 million as of September 30, 2025, from $1,976.8 million in 2024[210] Strategic Initiatives - The company plans to expand its retail partnerships to enhance private label credit operations and increase marketing investments for general purpose credit card operations[207] - The company continues to evaluate bulk purchases of receivables, although timing and size remain difficult to predict[265] - The company expects to continue raising additional capital to fund investments in credit card receivables and potential acquisitions[288] Risks and Forward-Looking Statements - Forward-looking statements include expectations regarding revenue, income ratios, and credit quality, which are subject to substantial risks and uncertainties[299] - The company faces risks such as economic conditions affecting interest rates and consumer confidence, which could impact revenue and charge-offs[300] - The company has identified integration risk associated with the recent acquisition of Mercury as a potential challenge[300] - The company does not have an obligation to update forward-looking statements except as required by law[302]

PART I. [FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for Atlanticus Holdings Corporation [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Atlanticus Holdings Corporation's unaudited condensed consolidated financial statements for Q2 2025 and prior periods [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Atlanticus' balance sheets as of June 30, 2025, and December 31, 2024, show significant asset and equity growth | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (YoY) | Percentage Change (YoY) | | :-------------------------------- | :----------------------------- | :------------------------------- | :----------- | :---------------------- | | Total Assets | $3,643,175 | $3,270,707 | $372,468 | 11.39% | | Loans at fair value | $3,004,724 | $2,630,274 | $374,450 | 14.24% | | Total Liabilities | $3,043,997 | $2,691,344 | $352,653 | 13.11% | | Notes payable, net | $2,466,059 | $2,199,448 | $266,611 | 12.12% | | Total Equity | $559,178 | $489,363 | $69,815 | 14.27% | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statements show strong revenue growth and increased profitability for Q2 2025 compared to Q2 2024 | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (YoY) | Percentage Change (YoY) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :----------- | :---------------------- | | Total revenue and other income | $394,163 | $316,023 | $78,140 | 24.73% | | Net income | $30,290 | $24,127 | $6,163 | 25.54% | | Net income attributable to common shareholders | $28,351 | $17,972 | $10,379 | 57.75% | | Basic EPS | $1.87 | $1.22 | $0.65 | 53.28% | | Diluted EPS | $1.51 | $0.99 | $0.52 | 52.53% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | Percentage Change (YoY) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :----------- | :---------------------- | | Total revenue and other income | $739,329 | $606,729 | $132,600 | 21.85% | | Net income | $61,412 | $49,946 | $11,466 | 22.96% | | Net income attributable to common shareholders | $56,297 | $37,850 | $18,447 | 48.74% | | Basic EPS | $3.72 | $2.57 | $1.15 | 44.75% | | Diluted EPS | $3.00 | $2.08 | $0.92 | 44.23% | [Condensed Consolidated Statements of Shareholders' Equity and Temporary Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20and%20Temporary%20Equity) This section details changes in equity for the six months ended June 30, 2025, and June 30, 2024, including net income and dividends - Total equity increased from **$489.36 million** at January 1, 2025, to **$559.18 million** at June 30, 2025, primarily due to net income and common stock issuances, partially offset by dividends and redemption of preferred units[14](index=14&type=chunk) - The company redeemed the remaining **50.0 million** Class B preferred units in March 2025, which were previously issued to noncontrolling interests[14](index=14&type=chunk) - Series B preferred stock shares issued increased from **3,301,179** at January 1, 2025, to **3,457,443** at June 30, 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows show a net decrease in cash for the six months ended June 30, 2025, driven by increased investing activities | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (YoY) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | :----------- | | Net cash provided by operating activities | $264,260 | $234,439 | $29,821 | | Net cash used in investing activities | $(520,419) | $(264,752) | $(255,667) | | Net cash provided by financing activities | $239,758 | $53,823 | $185,935 | | Net (decrease) increase in cash and cash equivalents and restricted cash | $(16,401) | $23,510 | $(39,911) | | Cash and cash equivalents and restricted cash equivalents at end of period | $483,235 | $407,163 | $76,072 | - Investing activities saw a significant increase in cash usage, primarily due to higher investments in earning assets, which rose from **$1.24 billion** in 2024 to **$1.55 billion** in 2025[18](index=18&type=chunk) - Financing activities provided substantially more cash in 2025, driven by increased proceeds from borrowings (**$894.69 million** in 2025 vs **$423.90 million** in 2024)[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's business, accounting policies, segment reporting, and other financial contexts [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for Q2 2025 compared to Q2 2024 [Overview](index=43&type=section&id=OVERVIEW) Atlanticus Holdings Corporation is a financial technology company focused on facilitating consumer credit for underserved Americans using data, analytics, and AI - Atlanticus is a financial technology company focused on inclusive financial solutions for everyday Americans, particularly those with FICO scores below **700**[161](index=161&type=chunk) - The company provides technology and support services to bank partners (The Bank of Missouri and WebBank) for originating private label and general purpose card products[161](index=161&type=chunk) - Atlanticus' decisioning platform is enhanced by artificial intelligence and machine learning for fast, sound credit decisions[161](index=161&type=chunk) [Credit as a Service Segment](index=43&type=section&id=Credit%20as%20a%20Service%20Segment) The CaaS segment supports lenders in offering inclusive financial services, including private label and general purpose credit cards, leveraging technology and analytics - CaaS segment offers private label credit cards (Fortiva, Curae) and general purpose credit cards (Aspire, Imagine, Fortiva) through bank partners[163](index=163&type=chunk) - The segment's technology allows instant credit decisions using proprietary predictive analytics and AI/machine learning, targeting consumers with lower FICO scores[26](index=26&type=chunk) - Revenue is recognized from finance charges, fees, and merchant fees, with loans valued at fair value, reflecting expected ongoing economics and cash flows[166](index=166&type=chunk) [Private Label Credit](index=45&type=section&id=Private%20Label%20Credit) Private label credit products offer financing with APRs from **0%** to **36%** and merchant fees from **0%** to **65%**, paid by retail partners - Private label credit products feature APRs ranging from **0%** to **36%** and merchant fees from **0%** to **65%**[171](index=171&type=chunk) - Merchant fees are paid by retail partners to Atlanticus to facilitate transactions and enhance returns, particularly for promotional offers with lower APRs[171](index=171&type=chunk) - Financing terms range from **12** to **84** months, customized for retail clients based on expected performance, purchase volumes, and return requirements[172](index=172&type=chunk) [General Purpose Credit Cards](index=45&type=section&id

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ of ATLANTICUS HOLDINGS CORPORATION a Georgia Corporation IRS Employer Identification No. 58-2336689 SEC File Number 0-53717 Five Concourse Parkway, S ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ of ATLANTICUS HOLDINGS CORPORATION a Georgia Corporation IRS Employer Identification No. 58-2336689 SEC File Number 0-53717 Five Concourse Parkway, Suite ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 For the transition period from _______ to _______ of ATLANTICUS HOLDINGS CORPORATION a Georgia Corporation IRS Employer Identification No. 58-2336689 SEC File Number 0-53717 Five Concourse Parkway, Suite 300 Atlanta, Georgia 30328 (770) 828-2000 Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 (the "Act") ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ of ATLANTICUS HOLDINGS CORPORATION a Georgia Corporation IRS Employer Identification No. 58-2336689 SEC File Number 0-53717 Five Concourse Parkway, Su ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ of ATLANTICUS HOLDINGS CORPORATION a Georgia Corporation IRS Employer Identification No. 58-2336689 SEC File Number 0-53717 Five Concourse Parkway, S ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ of ATLANTICUS HOLDINGS CORPORATION a Georgia Corporation IRS Employer Identification No. 58-2336689 SEC File Number 0-53717 Five Concourse Parkway, Suite ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ of ATLANTICUS HOLDINGS CORPORATION a Georgia Corporation IRS Employer Identification No. 58-2336689 SEC File Number 0-53717 Five Concourse Parkwa ...

Table of Contents SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ of ATLANTICUS HOLDINGS CORPORATION a Georgia Corporation IRS Employer Identification No. 58-2336689 SEC File Number 0-53717 Five Concourse Parkway, Su ...