Financial Data and Key Metrics Changes - Q4 gross originations grew 11.3% year over year to $75.2 million, with a two-year stack growth of 25.7% [67] - Q4 revenue increased by 9.4% to $63 million, marking the seventh consecutive quarter of year-over-year growth [74] - Full year 2024 gross originations grew approximately 5%, with Q4 growth exceeding the 6% to 8% outlook [68] - Gross profit for Q4 was approximately $7.4 million, down from $8.9 million in the previous year, while full year gross profit was $45.8 million, up about 10% versus 2023 [75][76] - Adjusted EBITDA for full year 2024 was approximately $4.8 million, a $6.7 million improvement compared to the previous year [83] Business Line Data and Key Metrics Changes - Total app originations grew by 32% year over year in Q4, with 46 million in gross originations starting in the app [33][34] - K-PAY originations increased by approximately 52% year over year, accounting for roughly 41% of total originations [35] - Direct and waterfall gross originations grew approximately 44% year over year in Q4, excluding home furnishings and mattress categories [50] Market Data and Key Metrics Changes - Gross originations for the top 25 merchants grew 10% during Q4, with the largest merchant, Wayfair, representing 27% of total gross originations, down from 43% in Q4 2023 [69][70] - Cross-shopping activity grew approximately 60% in Q4, indicating a vibrant marketplace [72] Company Strategy and Development Direction - The company aims to enhance consumer engagement, merchant engagement, referral partnerships, and improve unit economics to drive profitability [27] - The focus is on leveraging the Catapult app marketplace to drive consumer engagement and gross originations [33][38] - The company plans to introduce new merchants to the marketplace and enhance marketing efforts to increase application growth [89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential despite a challenging macro environment, particularly in the home furnishings and mattress category [88] - The company anticipates gross originations growth of at least 20% and revenue growth of at least 20% for 2025 [92] - Management noted that they have not seen significant changes in consumer behavior due to tariffs, with delinquencies remaining in line with expectations [100][102] Other Important Information - The company reported a disciplined approach to expense management, with total operating expenses decreasing by 37% in Q4 [80] - As of December 31, 2024, total cash and cash equivalents were $16.6 million, including $13.1 million of restricted cash [84] Q&A Session Summary Question: Outlook for margins in 2025 - Management expects gross profit to remain in the 18% to 20% range for 2025, consistent with previous years [98] Question: Changes in consumer behavior due to tariffs - Management has not observed significant changes in consumer behavior related to tariffs, with stability in delinquencies [100][102] Question: Drivers for EBITDA margin improvement - The improvement in EBITDA margin is primarily due to diligent expense management while focusing on growth [110] Question: Growth in Wayfair originations - Wayfair's gross origination growth continues to decline, but the business outside of Wayfair remains strong, growing at 50% [114] Question: Merchant acquisition in uncertain macro environments - Management believes that uncertainty can accelerate merchant acquisition as they seek growth opportunities [120]

CHICAGO--(BUSINESS WIRE)--CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), an omni-channel consumer finance company serving consumers in the United States and Canada, today announced that it entered into forbearance agreements (the “Forbearance Agreements”) with the holders of approximately 84% of the outstanding aggregate principal amount of the Company’s 7.500% Senior 1.5 Lien Secured Notes due 2028 (the “1.5L Noteholders”) and the holders of approximately 74% of the outstanding aggregate ...

CHICAGO--(BUSINESS WIRE)--CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), an omni-channel consumer finance company serving consumers in the U.S. and Canada, today announced the expiration and results of its previously announced consent solicitation (the “Consent Solicitation”) from all registered holders (individually, a “Holder,” and collectively, the “Holders”) of the Company’s outstanding 7.500% Senior 1.5 Lien Secured Notes due 2028 (the “Notes”), issued pursuant to the Indenture, date ...

Curo Group (CURO) came out with a quarterly loss of $1.05 per share versus the Zacks Consensus Estimate of a loss of $0.65. This compares to loss of $0.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -61.54%. A quarter ago, it was expected that this consumer finance company would post a loss of $0.89 per share when it actually produced a loss of $0.81, delivering a surprise of 8.99%.Over the last four quarters, the company ...

CHICAGO--(BUSINESS WIRE)--CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), an omni-channel consumer finance company serving consumers in the U.S. and Canada, today announced preliminary financial results for its fourth quarter and full year ended December 31, 2023. "Throughout 2023, we executed on our plan to enhance our underwriting and credit performance and simplify our overall operations, including consolidating our U.S. footprint onto one loan management system and further scaling o ...

CURO Group Holdings Corp. (NYSE:CURO) Q3 2023 Earnings Conference Call November 1, 2023 8:30 AM ET Good morning, and welcome to the CURO Group Holdings Third Quarter 2023 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recoded. Thank you, and good morning. CURO released its third quarter 2023 results before the market opened today, which, along with our earnings presentation, are available on our investor website at ir.curo.com. W ...

Disclaimer Non-GAAP Financial Measures 3Q23 Highlights • Converted U.S. operations to a single loan management system Continued responsible receivables growth $1,204 $1,254 $1,210 $1,228 $1,254 739 773 715 719 752 465 481 495 509 503 U.S. Canada 3Q22 4Q22 1Q23 2Q23 3Q23 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------|---------------|-------------|---------------|---------------------------------------------------------------------------------------------------------------------- ...

Store Operations - As of September 30, 2023, the company operated over 490 store locations across 13 U.S. states and nearly 150 stores in eight Canadian provinces[205]. Financial Performance - Total revenue for the three months ended September 30, 2023, decreased by $18.5 million, or 9.9%, to $167.9 million compared to the prior-year period[215]. - Total revenue for the nine months ended September 30, 2023, decreased by $233.3 million, or 31.6%, to $504.2 million compared to the prior-year period[218]. - Total revenue for Q3 2023 was $167.9 million, a decrease of 9.9% compared to $186.4 million in Q3 2022[223]. - Revenues for the three months ended September 30, 2023 were $171.5 million, a decrease of $14.9 million, or 8.0%, compared to the prior-year period[261]. Revenue Breakdown - Installment revenue for the three months ended September 30, 2023, decreased by $11.0 million, or 10.7%, primarily due to the sale of the Legacy U.S. Direct Lending Business[216]. - Revolving LOC revenue for the nine months ended September 30, 2023, decreased by $51.0 million, or 25.4%, primarily due to the impact of the sale of the Legacy U.S. Direct Lending Business[219]. - Interest and fees revenue decreased by $12.4 million, or 8.0%, from $155.9 million in Q3 2022 to $143.5 million in Q3 2023[223]. - Insurance and other income for the three months ended September 30, 2023, decreased by $6.1 million, or 20.0%, compared to the prior-year period[217]. Expenses and Losses - Operating expenses totaled $94.2 million in Q3 2023, an 8.4% decrease from $102.8 million in Q3 2022[223]. - Salaries and benefits increased by $3.0 million, or 6.0%, to $52.1 million in Q3 2023, primarily due to restructuring costs[227]. - Advertising expenses decreased by $1.9 million, or 39.7%, to $2.8 million in Q3 2023, attributed to changes in marketing strategy[227]. - Provision for losses decreased by $16.0 million, or 24.6%, from $65.0 million in Q3 2022 to $49.0 million in Q3 2023, reflecting credit improvement[227]. - Operating expenses for the three months ended September 30, 2023 decreased by $8.6 million, or 8.4%, compared to the prior-year period[232]. - Direct operations expense increased by $3.9 million, or 46.9%, for the three months ended September 30, 2023, primarily due to increased technology costs[233]. - Other operating expenses decreased by $11.4 million, or 50.4%, for the three months ended September 30, 2023, mainly due to reduced professional fees related to the First Heritage acquisition[234]. - Other expenses for the three months ended September 30, 2023 were $57.3 million, an increase of $81.5 million compared to the prior-year period, driven by a 46.2% increase in interest expense[235]. - Provision for losses decreased by $116.3 million, or 41.9%, for the nine months ended September 30, 2023, primarily due to the divestiture of the Legacy U.S. Direct Lending Business[240]. - Operating expenses for the nine months ended September 30, 2023 decreased by $96.1 million, or 25.0%, compared to the prior-year period[241]. - Interest expense for the nine months ended September 30, 2023 increased by $46.5 million, or 44.7%, compared to the prior-year period[250]. Compliance and Regulatory Issues - The company received a Market Cap Notice from the NYSE on October 16, 2023, indicating non-compliance with minimum market capitalization requirements, with an average market capitalization of approximately $44.7 million[209]. - The company has until April 27, 2024, to regain compliance with stock price requirements following a Stock Price Notice received on October 27, 2023[210]. - The company is subject to potential regulatory changes in Canada that may reduce the maximum allowable interest rate on loans from 60% to 35%[287]. - The company expects that any regulatory changes could adversely affect the pricing for newly originated loans and may require reevaluation of underwriting criteria[288]. Cash Flow and Debt - Net cash provided by continuing operating activities for the nine months ended September 30, 2023 was $38.1 million, primarily due to non-cash reconciling items of $233.0 million[269]. - Net cash used in continuing investing activities for the same period was $117.8 million, mainly due to net origination of loans of $106.6 million and cash purchases of property, equipment, and software totaling $9.2 million[275]. - Net cash provided by continuing financing activities was $106.0 million, primarily from $115.0 million in net proceeds from credit facilities[276]. - Available unrestricted cash on hand as of September 30, 2023 was $82.6 million, which is expected to provide sufficient liquidity for at least the next 12 months[271]. - The company has a total corporate debt balance of $1.1 billion, with interest rates ranging from 7.50% to 18.00%[273]. - The company recorded a provision for credit losses of $161.1 million for the nine months ended September 30, 2023[269]. - The company may adjust its lending volume in response to funding shortfalls, which could include tightening credit approval practices[270]. Accounting Standards - The company adopted the CECL accounting standard on January 1, 2023, impacting the provision for losses and credit loss estimates[227]. - The company utilized a systematic methodology for estimating expected credit losses, which includes historical loss experience and macroeconomic factors[284]. Stockholders' Equity - The company reported a stockholders' deficit of $398.0 million as of October 16, 2023[209]. - The effective income tax rate for the nine months ended September 30, 2023 was (23.8)%, lower than the statutory rate of approximately 26.0%[254]. Loans and Receivables - Total gross loans receivable increased to $1.25 billion in Q3 2023 from $1.23 billion in Q2 2023[225]. - Gross loans receivable as of September 30, 2023 were $1,254.4 million, a slight increase of $6, or 0.0%, compared to December 31, 2022[262]. - The total net charge-offs (NCOs) for Q3 2023 were $55.4 million, compared to $57.3 million in Q2 2023[225].

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $209 million, flat sequentially but at the higher end of expectations, driven by a strategy to migrate towards longer-term and lower-risk products [14] - Net charge-offs increased to $68 million from $59 million sequentially, with a reported net charge-off rate of 13% compared to 11.5% in the previous quarter [16] - Operating expenses decreased to $108 million from $118 million sequentially, with an operating expense ratio improving to 21% from 23% [34][56] Business Line Data and Key Metrics Changes - Gross loans receivable increased by 4% quarter-over-quarter to over $2.1 billion, indicating solid demand despite a seasonally slower quarter [6][8] - The direct lending business in Canada saw strong demand for open-ended products, while the U.S. loan management system conversion is expected to enhance operational efficiency [9][10] - The company is introducing new secured lending products, such as an auto secured product, to reduce credit risk and increase average balances with secured customers [10] Market Data and Key Metrics Changes - The company reported that consumer demand and credit performance remain stable despite ongoing macroeconomic uncertainties in the U.S. and Canada [11] - The net charge-off ratio improved by 270 basis points when excluding the change in charge-off policy, indicating improved credit quality [12] Company Strategy and Development Direction - The company is focused on responsible growth, maintaining credit quality, and tightening operating expenses while gradually increasing marketing efforts [5][22] - The sale of the Flexiti business for approximately CAD 55 million is seen as a strategic move to enhance liquidity and support growth initiatives [24] - The company aims to increase the mix of larger balance and longer duration products to simplify predictability and reduce risk [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of consumer credit performance and the potential for responsible growth moving forward [37] - For Q3 2023, the company expects receivables to be in the range of $2.15 billion to $2.25 billion and revenue between $210 million and $220 million, with net charge-offs anticipated between 12.5% and 15.5% [19] Other Important Information - The company has made significant progress in modernizing its technology infrastructure, including transitioning to the cloud and converting U.S. branches to a single loan management system [23] - The allowance for loan losses increased by $13 million, primarily due to growth in Canada point-of-sale loans and updated unemployment forecasts [17] Q&A Session Summary Question: Customer Acquisition and Growth - Management noted modest growth in the U.S. direct lending business, with most growth being organic from existing customers tapping into credit capabilities [38] Question: Balance Sheet Leverage Goals - Management indicated that the sale of Flexiti would provide liquidity to support profitability and balance sheet growth, with a focus on achieving the right leverage [39][40] Question: Strategic Transition Items - Management stated that the focus is on executing the current plan efficiently without major strategic changes anticipated in the near term [45] Question: Consumer Credit Environment - Management confirmed that there is no unusual stress on consumers, with demand remaining solid despite macroeconomic challenges [42] Question: Auto Secured Product Details - Management clarified that the new auto secured product aims for lower APR, lower charge-off, and higher balance programs [49] Question: Q3 Guidance and Flexiti Inclusion - Management confirmed that Q3 guidance includes Flexiti for part of September, with adjustments possible based on the timing of the sale [78]

Q2 2023 Earnings Presentation August 3, 2023 IMPORTANT: You must read the following information before continuing to the rest of the presentation, which is being provided to you for informational purposes only. This presentation contains forward-looking statements. These forward-looking statements include projections, estimates and assumptions about various matters such as our future financial and operational performance, including our third quarter outlook, various target ranges and growth strategy framewo ...