Atlanticus Reports Second Quarter 2025 Financial Results

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].