Atlanticus Reports First Quarter 2025 Financial Results

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]