Financial Data and Key Metrics Changes - The first quarter of 2025 was a record quarter for the company, achieving record quarterly revenue, adjusted net income, and operating margin [5] - Total revenue increased to a record $140 million, up 10% year over year [13] - Adjusted net income increased 285% to a record $34 million, up from $9 million in the prior year [15] - Adjusted earnings per share grew significantly to $0.38 from $0.10 last year [15] - The annualized net charge off rate improved to 35% from 48% [9][15] Business Line Data and Key Metrics Changes - Net originations grew 16% to $189 million, with retained net originations increasing 11% to $169 million [13] - The auto approval rate improved to 79% in Q1 2025, up from 73% in Q1 2024 [9] - Model six continued to perform well, improving risk identification and facilitating optimized targeting for new approvals [7][9] Market Data and Key Metrics Changes - The company noted a significant imbalance between supply and demand for working capital among small businesses, particularly in the Biddy segment [10] - The company is actively monitoring macroeconomic factors, including tariffs and their impact on small businesses [24] Company Strategy and Development Direction - The company aims to become a leading tech-enabled digital finance platform, collaborating with banks to offer financial products and services [11] - The focus remains on profitable growth, operational efficiencies, and exploring inorganic growth opportunities [26][28] - The company is committed to maintaining a disciplined approach to growth and not loosening the credit box despite improved repayment rates [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong revenue momentum and profitable growth throughout 2025 and into 2026 [11] - The company anticipates that operational improvements and investments will continue to generate strong results [12] - Management noted stability in consumer behavior and a solid economic environment, with no significant changes in customer patterns observed [41] Other Important Information - The company paid off its corporate debt in Q1 2025 and maintained a strong balance sheet with $91 million in cash and cash equivalents [6][15] - A special dividend of $21.7 million was paid in Q2, reflecting the company's financial strength [7] Q&A Session Summary Question: What changed regarding adjusted net income from the previous guidance? - Management indicated that operational efficiencies and strong repayment rates contributed to better-than-expected results [20][22] Question: Are there any hesitations regarding investments in the small business side with Biddy? - Management confirmed that they are actively assessing underwriting and potential impacts from tariffs but remain optimistic about Biddy's growth [24] Question: What is the thought process behind moving towards a more regular quarterly dividend? - Management emphasized the importance of preserving flexibility for capital deployment while rewarding shareholders [26] Question: What criteria is the company looking for in inorganic opportunities? - Management highlighted interest in the SMB space and consumer POS space, focusing on synergies and cross-sell opportunities [27][28] Question: How is the company managing its credit box amid macro trends? - Management stated that they are maintaining a disciplined approach and not loosening the credit box despite improved repayment rates [34] Question: What are the customer patterns observed in light of macro events? - Management reported stability in consumer behavior and no significant changes in borrowing activities [41] Question: How many more levers does the company have for cost discipline? - Management indicated that continuous improvement and operational efficiency are ingrained in the company culture, with ongoing efforts to enhance auto approval rates [45][46] Question: How is the outlook for Q2 tracking so far? - Management expressed positive momentum for growth and confidence in achieving significant growth this year [52]