Financial Data and Key Metrics Changes - In Q2 2025, total revenue increased by 22% year over year to $764 million, with originations rising 28% to $1.8 billion [10][22] - Adjusted EPS grew by 48% year over year to $3.23 per diluted share, reflecting efficient marketing and lower cost of funds [11][31] - The consolidated net charge-off ratio improved to 8.1%, down from 8.6% in the previous quarter and 7.7% a year ago [11][24] Business Line Data and Key Metrics Changes - Small business revenue increased by 30% year over year to a record $326 million, with originations for small businesses reaching $1.2 billion, a 35% increase [10][23] - Consumer revenue rose by 17% year over year to $428 million, with originations growing 15% to $564 million [23][31] - Small business products accounted for 65% of the loan and finance receivables portfolio, while consumer products made up 35% [10] Market Data and Key Metrics Changes - The U.S. economy added 147,000 jobs in June, with the unemployment rate falling to 4.1% and hourly wages continuing to rise, indicating a resilient labor market [12] - Small businesses are increasingly optimistic, with over 90% expecting moderate to significant growth over the next year, and 76% preferring non-bank lenders for their speed and convenience [16][17] Company Strategy and Development Direction - The company is committed to a focused growth strategy that emphasizes sustainable and profitable growth while managing risks [18][20] - The leadership transition is part of a long-term plan to ensure stability and continued success, with confidence in the new CEO and CFO to drive future growth [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic fluctuations, citing a diversified business model that mitigates risks associated with market downturns [12][15] - The company anticipates continued strong performance in the back half of 2025, with expectations for revenue growth of around 20% and adjusted EPS growth of approximately 30% for the full year [34] Other Important Information - The company has a strong liquidity position with $1.1 billion in liquidity, including $388 million in cash and marketable securities [31] - The cost of funds decreased to 8.8%, reflecting strong execution on financing transactions [31][32] Q&A Session Summary Question: Can you elaborate on the consumer portfolio and the confidence in future originations? - Management clarified that the issues observed were isolated to one of five consumer products and have since been addressed, leading to a return to normal credit performance [38][42] Question: What factors contributed to the strong performance in the small business segment? - Management noted that the small business segment has shown consistent strength, with stable credit and a favorable competitive position contributing to solid origination growth [44][46] Question: How do you view the competitive dynamics between consumer and small business segments? - Management indicated that the competitive landscape for small businesses is more stable with fewer players, while the consumer segment is more fragmented, leading to potential fluctuations [90][92] Question: How do you expect the macroeconomic environment to impact growth? - Management emphasized the importance of balancing growth and risk, noting that while macro trends are positive, the company will remain cautious in its approach to originations [78][80]

Financial Results First Quarter 2025 Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements with respect to the financial condition, results of operations, trends in lending policies and loan programs, plans and prospective business partnerships, objectives, future performance and business of the Company. Forward-looking statem ...