Atlanticus (ATLC) investor relations material

Executive summary

• Q1 2026 delivered strong revenue and net income growth, with total operating revenue and other income up 97% year-over-year to $679.5 million, driven by robust legacy asset performance and the successful, ahead-of-schedule integration of Mercury Financial, which contributed $3.1 billion in receivables.

• Net income attributable to common shareholders rose to $41.9 million, up 49.8% year-over-year, with diluted EPS at $2.23.

• Managed receivables surged 148.5% year-over-year to $6.7 billion, reflecting both organic growth and the Mercury portfolio.

• Over 600,000 new accounts were added in the quarter, with total accounts served increasing 56.6% to 5.9 million.

• Portfolio performance remained favorable, with stable payment behavior and steady purchase activity despite macroeconomic uncertainty.

Financial highlights

• Net income attributable to common shareholders was $41.9 million, or $2.23 per diluted share, up 49.8% year-over-year.

• Net margin improved to $189.7 million, up 60.5% year-over-year.

• Interest expense rose to $122.8 million, reflecting higher debt balances and borrowing costs.

• Total operating expenses increased 69.2% year-over-year to $130.9 million, mainly due to the Mercury acquisition and growth initiatives.

• Return on average equity reached 26.8%.

Outlook and guidance

• Management expects continued growth in general purpose credit card receivables throughout 2026, outpacing private label credit, and ongoing portfolio optimization and operational integration to drive long-term value.

• Guidance for 2026 and 2027 remains on track, with earnings growth and returns on equity expected to meet or exceed 20% targets.

• Integration of Mercury's technology and infrastructure is progressing ahead of the planned 18-month timeline.

• Anticipate higher interest and operating expenses in upcoming quarters due to additional debt financing and integration costs.

• Ongoing product, policy, and pricing changes to the Mercury portfolio are expected to drive future revenue.