Financial Performance - Revenue from California Installment loans was 8.0% of total revenue for the year ended December 31, 2020, down from 12.2% in 2019, leading to the cessation of new Installment product originations in California[46]. - Unsecured Installment loans comprised 40.0% of consolidated revenue for the year ended December 31, 2020, down from 46.5% in 2019[51]. - Open-End loans accounted for 29.4% of consolidated revenue for the year ended December 31, 2020, compared to 21.5% in 2019[50]. - Insurance revenues from credit protection insurance in Canada were $35.6 million for the year ended December 31, 2020, up from $34.6 million in 2019[58]. - Revenue generated through the online channel represented 49% of consolidated revenue for the year ended December 31, 2020, up from 46% in 2019[68]. - For the year ended December 31, 2020, consolidated total revenue generated through online channels represented 48.5% of total revenues, up from 45.6% in 2019[77]. - Open-End and Installment loans accounted for 78.8% of consolidated revenue for the year ended December 31, 2020, up from 19% in 2010, reflecting a significant shift in customer preferences[105]. - Revenue, Adjusted EBITDA, and Adjusted Net Income grew at compound annual growth rates of 15.3%, 14.4%, and 12.8% respectively from 2010 to 2020[92]. Operational Highlights - The company operated 412 stores across 14 U.S. states and seven provinces in Canada as of December 31, 2020[67]. - Approximately 75.4% of consolidated revenues were generated from services provided within the U.S. for the year ended December 31, 2020[66]. - The company had over 49,000 active Opt+ cards as of December 31, 2020, with customers loading over $2.8 billion to their cards since 2011[59]. - The company employed approximately 3,900 individuals, with a focus on maintaining good employee relations and competitive pay rates[131]. - The company maintained full employment in the U.S. and Canada during 2020 despite COVID-19 challenges, implementing pay supplements for full-time employees working reduced hours[133]. Regulatory Environment - The regulatory environment for the alternative financial services industry is subject to significant federal, state, and local regulations, impacting loan products and operational costs[134]. - The 2017 Final CFPB Rule is expected to increase costs and reduce the effectiveness of loan servicing and collections, with mandatory underwriting provisions potentially limiting consumer borrowings[138]. - The CFPB's Debt Collection Rule, effective November 30, 2021, will require significant changes in collection practices, impacting operational costs and compliance systems[152]. - The company is currently undergoing an examination by the CFPB to assess compliance management systems and debt collection practices, which may lead to enhancements in compliance procedures[158]. - Future changes in laws and regulations could materially affect the company's financial condition and operational results, with potential adverse impacts from ongoing litigation related to regulatory rules[139]. - The company is actively working to align its practices with evolving regulatory requirements, which may increase costs and reduce revenues[160]. - The CFPB has the authority to impose significant monetary penalties for violations, ranging from approximately $6,000 to $1.2 million per day depending on the severity of the violation[153]. - The company is engaged with regulatory authorities to promote equitable laws and regulations that facilitate competition and lower costs for consumers[134]. Market Opportunities - The acquisition of Flexiti, a Canadian POS/BNPL provider, is expected to enhance the company's long-term growth trajectory and diversify revenue mix[97]. - The consumer credit opportunity for installment balances in Canada is estimated at approximately C$175 billion, representing a highly fragmented market with low penetration[98]. - The company anticipates continued growth in online channels, which have become significant revenue drivers during the COVID-19 pandemic[109]. Acquisitions and Investments - Cumulative cash investments in Katapult amount to $27.5 million, with an expected cash and stock consideration of $425 million to $435 million upon merger completion[102]. - The acquisition of Ad Astra in January 2020 is expected to provide operational, financial, and compliance synergies, improving collection strategies[111]. Loan Products and Trends - Installment and Open-End loans increased from 58.8% of total Company-Owned loans at the beginning of 2015 to 92.1% by December 31, 2020, with Canadian Installment and Open-End loans growing from $50.0 million as of September 30, 2017, to $312.2 million as of December 31, 2020[79]. - The average loan amount for Unsecured and Secured Installment loans was $676 and $1,224, respectively, while the average loan balance for Open-End loans was $551 in the U.S. and $1,315 in Canada for the year ended December 31, 2020[115]. - The proprietary credit decisioning model, Curo, integrates over 92 million loan records to formulate robust underwriting algorithms[85]. - The company’s "Site-to-Store" program resulted in approximately 133,000 loans in the year ended December 31, 2020[81]. - Verge Credit loan balances grew to $27.0 million in 2020 despite COVID-19 challenges, indicating strong demand for the product[103]. Geographic Revenue Breakdown - As of December 31, 2020, revenues in British Columbia accounted for approximately 9.7% of Canadian revenues and 2.4% of total consolidated revenues[199]. - Revenues in Ontario represented approximately 67.2% of Canadian revenues and 16.6% of total consolidated revenues for the year ended December 31, 2020[202]. - Revenues in Alberta were approximately 16.9% of Canadian revenues and 4.2% of total consolidated revenues for the year ended December 31, 2020[207]. - As of December 31, 2020, the company operated 135 of its 202 Canadian stores in Ontario[202]. Interest Rate and Currency Risks - A hypothetical 1% increase in the average market interest rate would result in an increase in annual interest expense of $1.4 million[470]. - If average foreign exchange rates had declined by 10% against the U.S. dollar in 2020, revenue and net income from continuing operations before income taxes would decrease by approximately $21.0 million and $4.9 million, respectively[474]. Compliance and Reporting Obligations - The company is registered as a money services business with FinCEN and must re-register every two years[172]. - The Bank Secrecy Act requires reporting of currency transactions over $10,000 and maintaining records for five years for certain cash purchases[171]. - The company is subject to the California Consumer Privacy Act, which imposes expanded obligations regarding consumer personal information[186]. - The company must comply with the Truth in Lending Act, which requires disclosures for both closed-end and open-end loans[164]. - The company faces potential regulatory and private sanctions for violations of state laws, which could materially affect operations and financial condition[179]. Legal Environment - The legal environment is dynamic, with ongoing lawsuits that could impact the company's operations and compliance requirements[148]. - Nearly 50 Texas cities have passed local ordinances that restrict loan amounts and repayment terms, impacting operations in those areas[183]. - The California Assembly Bill 539 imposes an annual interest rate cap of 36% plus the Federal Funds Rate on consumer loans between $2,500 and $10,000, effective January 1, 2020[180]. - The company operates in approximately 34 states in the U.S. under enabling legislation that allows direct loans of the type made[177].

Revenue Performance - Total revenue for the three months ended September 30, 2020, declined by $115.3 million, or 38.8%, to $182.0 million compared to the prior-year period[200]. - U.S. revenues decreased by 44.0%, while Canadian revenues declined by 18.3% during the same period[200]. - Total revenue for the nine months ended September 30, 2020, decreased by $194.2 million, or 23.1%, to $645.3 million compared to the prior-year period[208]. - Revenue from California Installment loans accounted for 7.6% and 8.8% of total revenue for the three and nine months ended September 30, 2020, respectively, down from 11.8% and 12.8% in the prior year[197]. - Canada revenue for the three months ended September 30, 2020, decreased by $11.0 million, or 18.3%, to $49.2 million, while sequentially it increased by $4.0 million, or 8.8%[291]. - Canada revenue for the nine months ended September 30, 2020, decreased by $12.9 million, or 7.8%, to $153.4 million[297]. Loan Performance - Unsecured Installment revenues fell by $69.8 million, or 50.9%, and Secured Installment revenues decreased by $11.6 million, or 41.0%, primarily due to COVID-19 impacts and regulatory changes in California[201]. - Single-Pay revenue declined by $24.2 million, or 49.1%, with loan volumes dropping by $36.8 million, or 47.1% year over year[202]. - Gross combined loans receivable decreased by $193.5 million, or 26.5%, to $537.2 million as of September 30, 2020, from $730.7 million as of September 30, 2019[220]. - Unsecured Installment revenue declined by $34.6 million, or 52.6%, and gross loans receivable decreased by $89.5 million, or 51.3%, due to COVID-19 impacts[223]. - Single-Pay revenue decreased by $48.6 million, or 34.3%, primarily due to a $36.8 million, or 47.1%, decline in loan volume and balances year over year[209]. - Open-End revenues increased sequentially by $2.0 million, or 3.5%, with related loan growth of $37.1 million, or 13.0%[203]. Cost Management - Non-advertising costs of providing services decreased by $11.1 million, or 18.4%, to $49.3 million for the three months ended September 30, 2020, compared to $60.3 million in the same period in 2019[250]. - Non-advertising costs of providing services for the nine months ended September 30, 2020, were $103.5 million, a decrease of $25.4 million, or 19.7%, compared to the prior year[283]. - Corporate, district, and other expenses were $36.7 million for the three months ended September 30, 2020, a decrease of $2.0 million, or 5.2%, compared to the same period in 2019[253]. - Total operating expenses for the nine months ended September 30, 2020, were $143.2 million, a decrease of $12.6 million, or 8.1%, compared to the prior year[272]. Profitability Metrics - Net income from continuing operations for the three months ended September 30, 2020, was $12,881, a decrease of $15,106 or 54.0% compared to $27,987 in 2019[315]. - Adjusted Net Income for the three months ended September 30, 2020, was $11,326, down $21,553 or 65.6% from $32,879 in 2019[315]. - EBITDA for the three months ended September 30, 2020, was $34,800, down $26,399 or 43.1% from $61,199 in 2019[317]. - Adjusted EBITDA for the three months ended September 30, 2020, was $36,115, a decrease of $30,940 or 46.1% from $67,055 in 2019[317]. - Net loss from continuing operations was $12,881,000, with a net loss attributable to CURO of $12,881,000[340]. Provision for Losses - Provision for losses decreased by $69.1 million, or 55.8%, for the three months ended September 30, 2020, due to lower loan growth and improved NCO rates[249]. - The provision for losses decreased by $119.3 million, or 35.3%, for the nine months ended September 30, 2020, primarily due to lower loan volume and NCOs[259]. - The company reported a provision for loan losses of $219.0 million for the nine months ended September 30, 2020, contributing to non-cash reconciling items totaling $256.2 million[353]. Liquidity and Capital Structure - Total liquidity as of September 30, 2020, was $302.1 million, with cash on hand of $207.1 million[331]. - The company reported a total debt of $799,460 as of September 30, 2020[332]. - The company anticipates using cash primarily for growth in working capital, capital expenditures, and debt obligations[328]. - Cash and cash equivalents increased to $75,242,000, reflecting liquidity management strategies[338]. Market and Regulatory Environment - The company is currently reviewing the impact of the California Consumer Privacy Act, effective January 1, 2020, on its operations[372]. - There have been no material changes to the quantitative and qualitative information regarding market risks since the last disclosures[374].

Revenue Performance - Total revenue for the three months ended June 30, 2020, declined by $81.8 million, or 30.9%, to $182.5 million compared to the prior-year period[193]. - U.S. revenues decreased by 34.6%, while Canadian revenues declined by 16.7% during the same period[193]. - Total revenue for the six months ended June 30, 2020, was $463.3 million, a decline of $78.9 million, or 14.6%, compared to the prior-year period[200]. - Revenue from California Installment loans accounted for 9.9% and 9.2% of total revenue for the three and six months ended June 30, 2020, respectively, down from 13.2% and 13.4% in the prior year[189]. - Open-End revenues grew by $19.9 million, or 18.4%, compared to the prior-year period, driven by a $12.7 million, or 5.8%, increase in Canada[203]. - Single-Pay revenue dropped by $22.8 million, or 50.1%, with loan balances declining by $40.0 million, or 52.5% year over year[195]. - Ancillary revenues decreased by 15.4% compared to the prior-year period, primarily due to COVID-19 impacts[197]. - Non-Single-Pay revenue increased by $1.6 million, or 4.6%, to $36.8 million, driven by growth in related loan balances despite COVID-19 impacts[282]. Loan Performance - Unsecured Installment revenues fell by $51.7 million, or 42.3%, and Secured Installment revenues decreased by $6.7 million, or 25.6% due to COVID-19 impacts and regulatory changes[194]. - Gross combined loans receivable decreased by $186.3 million, or 27.5%, to $490.6 million as of June 30, 2020, from $676.9 million as of June 30, 2019[213]. - The NCO rate for Company Owned Unsecured Installment gross loans receivables increased approximately 300 bps year-over-year due to changes in loan balances[218]. - Secured installment gross combined loans receivable decreased by 37.7% year-over-year, with California accounting for 39.6% of total loans as of June 30, 2020[225]. - The average Secured Installment gross combined loans receivable was $64,520 in Q2 2020, down from $82,408 in Q1 2020[227]. - Company-owned originations for Q2 2020 were $24,444,000, down from $55,941,000 in Q1 2020[223]. - The company granted concessions on more than 50,000 loans, representing 11% of active loans, and waived over $3.7 million in payments and fees as part of the Customer Care Program[187]. Expenses and Costs - Non-advertising costs of providing services decreased by $8.8 million, or 15.0%, to $49.6 million for the three months ended June 30, 2020[243]. - Advertising costs decreased by $7.0 million, or 55.0%, year-over-year due to COVID-19 impacts[244]. - Corporate, district, and other expenses increased by $1.5 million, or 4.2%, to $36.8 million for the three months ended June 30, 2020[246]. - Total operating expenses for the six months ended June 30, 2020, were $99.1 million, a decrease of $7.5 million, or 7.1%, compared to $106.6 million for the same period in 2019[262]. - Non-advertising costs of providing services for the six months ended June 30, 2020, were $70.9 million, a decrease of $15.3 million, or 17.8%, compared to $86.2 million for the same period in 2019[274]. Income and Profitability - Net income from continuing operations for Q2 2020 was $21,080,000, an increase of 19.3% compared to $17,667,000 in Q2 2019[304]. - Adjusted Net Income for Q2 2020 was $22,170,000, a decrease of 9.3% from $24,437,000 in Q2 2019[304]. - The company reported a net income increase of 23.2% for the six months ended June 30, 2020, reaching $57,093,000 compared to $46,340,000 in the same period of 2019[304]. - The provision for losses decreased by $61.3 million, or 54.7%, to $50.7 million for the three months ended June 30, 2020 compared to the prior-year period[242]. - The provision for losses for the six months ended June 30, 2020, decreased by $50.0 million, or 28.1%, compared to the prior-year period, primarily due to lower loan volume[273]. Financial Position - Total assets amounted to $1,127,159,000, with cash and cash equivalents at $269,342,000[326]. - Total liabilities were reported at $1,034,217,000, with debt comprising $799,828,000[326]. - Stockholders' equity stood at $92,942,000, reflecting a deficit in certain subsidiaries[326]. - Total liquidity as of June 30, 2020, was $363,400,000, with cash on hand amounting to $269,300,000[321]. - The company issued $690,000,000 in 8.25% Senior Secured Notes due September 2025[319]. Regulatory and Market Conditions - The California Consumer Privacy Act (CCPA) became effective on January 1, 2020, with enforcement authority granted to the California Attorney General as of July 1, 2020[358]. - The CFPB rescinded mandatory underwriting provisions of the 2017 Final CFPB Rule on July 7, 2020, but did not alter payment provisions[357]. - The company is currently reviewing the impact of the LIBOR phase-out, expected to be completed by the end of 2021, but does not anticipate a material effect[365]. - The company continues to face uncertainty regarding macroeconomic factors that could affect future goodwill impairment assessments[356].

Revenue Performance - Total revenue for the three months ended March 31, 2020, grew by $2.9 million, or 1.0%, to $280.8 million compared to the prior-year period[169]. - U.S. revenues declined by 1.9%, while Canadian revenues increased by 13.9% during the same period[169]. - Revenue from Company Owned Unsecured Installment loans was $55,569,000 for Q1 2020, down from $65,542,000 in Q1 2019, representing a decrease of 15.2%[184]. - Net revenue from Guaranteed Unsecured Installment loans was $40,502,000 in Q1 2020, up from $42,814,000 in Q1 2019, a decrease of 5.4%[184]. - Canadian revenue increased by 13.9% primarily due to growth in Open-End loans and the sale of payment protection insurance[201]. - For the three months ended March 31, 2020, revenues in Canada on a constant currency basis were $59,563,000, representing a 14.9% increase from $51,820,000 in the same period of 2019[250]. Loan Performance - Unsecured Installment revenue decreased by 9.8% and Secured Installment revenue decreased by 4.3% due to regulatory changes in California and Ohio[169]. - Open-End loans in Canada grew by $56.2 million, or 30.5%, with related revenue growth of $8.7 million, or 43.0%[169]. - Gross combined loans receivable increased by $5.3 million, or 0.9%, to $620.4 million as of March 31, 2020, driven by growth in Open-End loans[176]. - The past-due balances for Unsecured Installment loans increased from 14.2% in Q4 2019 to 16.9% in Q1 2020, indicating a rise in delinquency rates[182]. - Open-End gross loans receivable as of March 31, 2020, was $314.0 million, compared to $240.8 million in the first quarter of 2019, reflecting significant growth[194]. - The consolidated Open-End net charge-off (NCO) rate improved by 160 basis points year-over-year to 18.0% as of March 31, 2020, due to seasoning of the Canada portfolio[191]. Loss Provisions and Allowances - Provision for losses for Company Owned Unsecured Installment loans was $26,182,000 in Q1 2020, compared to $33,845,000 in Q1 2019, a decrease of 22.7%[184]. - The provision for losses increased to $113.536 million, up from $102.385 million year-over-year, indicating a rise of about 10.5%[263]. - The Single-Pay Allowance for loan losses as a percentage of Single-Pay gross loans receivable increased from 7.2% to 8.6% due to allowance build[197]. - The Allowance for loan losses as a percentage of Secured Installment gross combined loans receivable increased from 11.9% in Q1 2019 to 13.1% in Q1 2020[186]. - The provision for losses increased by $10.1 million, or 58.0%, to $27.5 million, primarily due to a $6.7 million Allowance Build, despite improved loss rates[226]. Operational Changes and Initiatives - The company established an enhanced Customer Care Program to assist customers facing economic challenges due to COVID-19[163]. - The company acquired Ad Astra on January 3, 2020, to bring U.S. servicing and recovery in-house, enhancing operational and financial synergies[166]. - Non-advertising costs of providing services decreased by $6.9 million, or 11.1%, to $55.4 million for the three months ended March 31, 2020[203]. - Advertising costs increased by $4.4 million, or 56.9%, year-over-year due to improved underwriting and evaluation of seasonal opportunities[204]. - Corporate, district and other expenses were $42.8 million for the three months ended March 31, 2020, a decrease of $6.3 million, or 12.8%, compared to the prior-year period[206]. Financial Position and Cash Flow - Total assets increased to $1,066,766 thousand, up from $1,081,895 thousand year-over-year[259]. - Cash and restricted cash combined totaled $180,241 thousand, a decrease from $110,021 thousand[261]. - Total liabilities amounted to $1,007,195 thousand, reflecting a decrease from $1,031,382 thousand[261]. - The company issued $690 million in 8.25% Senior Secured Notes due September 2025 to refinance existing debt and for general corporate purposes[252]. - Net cash provided by continuing operating activities for the three months ended March 31, 2020 was $151.9 million, primarily due to non-cash reconciling items of $137.7 million, including a provision for loan losses of $113.5 million[272]. Income and Earnings - Net income from continuing operations for the three months ended March 31, 2020, was $36.0 million, a 25.6% increase from $28.7 million in the prior year[200]. - Adjusted Net Income decreased by $5.7 million, or 15.0%, to $32.3 million, while Diluted Earnings per Share increased by $0.25, or 41.0%, to $0.86[239]. - EBITDA for the three months ended March 31, 2020, was $59.8 million, a decrease of $1.5 million, or 2.5%, compared to the prior year[241]. - Adjusted EBITDA decreased by $7.1 million, or 9.7%, to $65.8 million, with an Adjusted EBITDA Margin of 23.4%[241]. - The company reported a net income attributable to CURO of $36.305 million, compared to $37.048 million in the prior year, reflecting a slight decrease of about 2%[263]. Regulatory and Market Environment - The company is reviewing the impact of the LIBOR phase-out, expected to be phased out by the end of 2021, but does not anticipate a material impact[292]. - There have been no significant developments in the regulatory environment and compliance since December 31, 2019[288]. - Changes in macroeconomic factors could increase the likelihood of future impairment for the Canada reporting unit[287]. - The company continues to monitor market risks, with no material changes since the last reporting period[291].

Revenue Generation - Approximately 80.0% of consolidated revenues were generated from services provided within the U.S. for the year ended December 31, 2019[34]. - Revenue generated through the online channel represented 46% of consolidated revenue for the year ended December 31, 2019, totaling $521.0 million[36][44]. - Installment and Open-End loans accounted for 77.6% of consolidated revenue for the year ended December 31, 2019, up from 19% in 2010[57]. - The company’s Installment and Open-End loans grew from $50.0 million in Q3 2017 to $266.6 million in Q4 2019 in Canada[43]. - In California, the company’s installment loans generated 12.2% of total consolidated revenue for the year ended December 31, 2019, with gross loans receivable amounting to $71.4 million and $36.5 million for unsecured and secured loans, respectively[136]. - Revenues generated in Ontario represented approximately 67.8% of Canadian revenues and 13.6% of total consolidated revenues for the year ended December 31, 2019[156]. - Revenues in Alberta were approximately 16.4% of Canadian revenues and 3.3% of total consolidated revenues for the year ended December 31, 2019[161]. - As of December 31, 2019, revenues in British Columbia accounted for approximately 8.7% of total Canadian revenues and 1.7% of total consolidated revenues[153]. Loan Details - The average loan size for Unsecured Installment loans was $607, while for Secured Installment loans it was $1,326 as of December 31, 2019[37]. - The average loan amount for Unsecured and Secured Installment loans for the year ended December 31, 2019, was $607 and $1,326, respectively[67]. - The average tenure for U.S. store managers was approximately nine years as of December 31, 2019, indicating strong management stability[51]. Company Operations - The company operated 416 stores across 14 U.S. states and seven provinces in Canada as of December 31, 2019[35]. - The company operated 202 stores in Canada as of December 31, 2019, with 133 located in Ontario[156]. - The company employs approximately 4,000 employees, with about 3,000 working in stores[83]. Financial Performance - The compound annual growth rate for revenue, Adjusted EBITDA, and Adjusted Net Income from 2010 to 2019 was 21.1%, 20.5%, and 21.6%, respectively[54]. - The company has raised nearly $2.2 billion of debt financing since 2010, including $690.0 million of 8.25% Senior Secured Notes due 2025[53]. Marketing and Customer Acquisition - The company employs a multi-channel marketing approach, including sponsorships of major events like NASCAR, to enhance brand awareness and customer acquisition[70]. - The company aims to enhance its proprietary risk scoring models to improve performance metrics and drive margin expansion and earnings growth[64]. - The company has increased credit limits for customers through proprietary underwriting, resulting in improved loan-vintage and portfolio performance[67]. Regulatory Environment - The 2017 Final CFPB Rule's Mandatory Underwriting Provisions require lenders to determine consumers' ability to repay loans, impacting covered short-term loans (45 days or less) and longer-term balloon-payment loans[94]. - The 2019 Proposed CFPB Rule aims to rescind the Mandatory Underwriting Provisions, which the CFPB believes restricts access to credit and competition in certain states[100]. - The 2017 Final CFPB Rule includes a "full payment test" and a "principal-payoff option" for lenders, affecting how loans can be issued without an ability-to-repay analysis[98][99]. - The CFPB's enforcement powers allow for monetary penalties ranging from approximately $5,100 to $1.2 million per day for violations, which could materially affect the company[107]. - The CFPB's proposed debt collection rule may impose new restrictions on communication and collection practices, potentially requiring significant changes for the company's recently acquired Ad Astra subsidiary[106]. - The 2017 Final CFPB Rule mandates registration of consumer reporting agencies, which could impact the company's ability to issue certain loans if not complied with[105]. - The Military Lending Act imposes a 36% cap on annual percentage rates for loans to active-duty military members, affecting the company's loan offerings since 2016[115]. - The company is making enhancements to compliance procedures and consumer disclosures to meet CFPB expectations, which may increase costs and reduce revenues[111]. - The company must comply with the Fair Credit Reporting Act (FCRA), which regulates the use of consumer reports and requires notices for adverse actions based on third-party information[118]. - The company is subject to the California Consumer Privacy Act (CCPA), which imposes expanded obligations regarding consumer personal information and provides civil penalties for violations[140]. - The company has faced regulatory changes, such as Ohio's House Bill 123, which significantly limited fees and terms on short-term loans, impacting its operations in that state[134]. - The company is required to establish an anti-money-laundering program under the USA PATRIOT Act, including internal policies and reporting suspicious transactions over $2,000[126]. - The company is subject to various state and local regulations that can change and may materially affect its operations[147]. Interest Rate and Currency Sensitivity - A 1% increase in the average market interest rate would lead to an annual interest expense increase of $1.2 million[543]. - The weighted average interest rate on the $112.2 million of variable debt for the Non-Recourse Canada SPV Facility was approximately 8.9% for the year ended December 31, 2019[545]. - A 10% decline in average foreign exchange rates against the U.S. dollar would decrease revenue by $22.9 million and net income by $4.4 million from Canadian operations[546]. - The company entered into a 4-year C$175.0 million interest rate cap agreement to mitigate exposure to interest rate fluctuations[543]. - The company does not believe there is material interest rate sensitivity associated with its customer loan portfolio due to their short duration[544]. - Derivative instruments are recorded at fair value on the balance sheet, impacting other comprehensive income but not net earnings if perfectly effective[548]. - The company may purchase derivatives to hedge against foreign exchange rate risks, focusing on existing short-term exposures and anticipated cash flows[547]. Collection Strategies - The company acquired Ad Astra, a third-party collection agency, to enhance its collections strategy after 91 days of delinquency[78].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☐ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to__________ Commission File Num ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☐ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to__________ Commission File Number 1 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to__________ Commission File Number ...

Financial Performance - From 2010 to 2018, the company achieved a compound annual growth rate of 23.4% in revenue, 20.6% in Adjusted EBITDA, and 18.9% in Adjusted Net Income[38]. - Installment and Open-End products accounted for 74% of consolidated revenue for the year ended December 31, 2018, up from 19% in 2010[39]. - Revenue generated through the online channel represented 45% of consolidated revenue for the year ended December 31, 2018[60]. - The company acquired 2.2 million new customers in the U.S. from January 2015 to December 2018, with advertising as a percentage of U.S. revenue at 5.7%, 4.9%, and 5.0% for the years ended December 31, 2018, 2017, and 2016, respectively[78]. - Revenues from Texas, Ontario, and California represented approximately 24.9%, 11.0%, and 18.3% of consolidated total revenues for the year ended December 31, 2018[595]. Debt and Financing - The company has raised nearly $2.1 billion in debt financing since 2008, including $690 million in Senior Secured Notes due 2025 and a C$175 million nonrecourse revolving facility[37]. - As of December 31, 2018, the company had $107.5 million and $20.0 million of variable debt outstanding on the Non-Recourse Canada SPV Facility and the Senior Revolver, with weighted average interest rates of approximately 9.2% and 10.5%, respectively[604]. - A hypothetical 1% increase in the average market interest rate would result in an increase in annual interest expense of $1.4 million[602]. Customer and Product Insights - The average loan amount for Unsecured and Secured Installment loans increased to $633 and $1,405, respectively, for the year ended December 31, 2018, compared to $628 and $1,303 in 2017[48]. - Secured Installment loans accounted for 10.1%, 10.5%, and 9.8% of consolidated revenue for the years ended December 31, 2018, 2017, and 2016, respectively[64]. - Open-End loans represented 13.0%, 7.6%, and 8.1% of consolidated revenue for the years ended December 31, 2018, 2017, and 2016, respectively[65]. - Single-Pay loans comprised 21.0%, 27.9%, and 37.8% of consolidated revenue for the years ended December 31, 2018, 2017, and 2016, respectively[66]. - Ancillary products contributed 4.6%, 4.2%, and 4.4% to consolidated revenue for the years ended December 31, 2018, 2017, and 2016, respectively[67]. Regulatory Environment - The alternative financial services industry is regulated at federal, state, and local levels in the U.S., Canada, and the U.K., impacting operations significantly[92]. - Recent laws in Ohio and Colorado have impaired lending businesses, indicating potential adverse effects on product offerings and economic performance[94]. - The 2017 Final CFPB Rule, if enforced, could increase costs and lessen the effectiveness of loan servicing and collections, with potential significant negative impacts on business[94]. - The CFPB's proposed rule to rescind parts of the 2017 Final CFPB Rule may restrict access to credit and reduce competition for financial products[107]. - The Military Lending Act imposes a 36% cap on annual percentage rates for certain loans to active-duty military members, affecting the company's loan offerings[122]. Operational Insights - As of December 31, 2018, the company operated 413 stores across 14 U.S. states and seven provinces in Canada[57]. - The company employed approximately 4,300 employees worldwide, with about 3,000 working in stores[90]. - The company has expanded its LendDirect brand in Canada, opening three stores in Q4 2017 and seven during the year ended December 31, 2018[45]. - The company is enhancing compliance procedures and consumer disclosures to meet CFPB expectations, which may increase costs and reduce consolidated revenues[119]. Risk Management - The company has not experienced any losses due to cash concentration, managing risk by placing deposits in high-quality financial institutions[596]. - Regulatory risks vary significantly by jurisdiction, affecting the products and services provided, particularly payday advance loans[599]. - The company is subject to regular state examinations and audits, which may impact operations based on findings[150]. Market and Economic Factors - Revenue and net loss before income taxes would decrease by $23.7 million and $3.6 million, respectively, if average foreign exchange rates had declined by 10% against the U.S. dollar in 2018[605]. - The company supports fixed-rate lending with variable-rate borrowing, but does not believe there is material interest rate sensitivity associated with its customer loan portfolio due to their short duration[603].