Atlanticus (ATLC) investor relations material

Executive summary

• 2025 marked a transformative year with the acquisition of Mercury Financial, doubling the balance sheet to $7 billion and adding 1.3 million customers, with managed receivables surging 155.2% year-over-year.

• Integration of Mercury is ahead of schedule, with significant operational efficiencies and cost savings already realized.

• Record levels achieved in receivables, originations, and accounts served, with over 600,000 new accounts in Q4 and 2.2 million for the year.

• Net income attributable to common shareholders rose to $32.8 million in Q4, or $1.75 per diluted share, capping a year of record growth.

• The company remains confident in its long-term positioning due to diversified offerings and a robust competitive landscape.

Financial highlights

• Total operating revenue and other income for Q4 2025 was $734.4 million, up 107.9% year-over-year.

• Net income attributable to common shareholders for Q4 2025 was $32.8 million, with diluted EPS of $1.75, up from $1.42 in Q4 2024.

• Return on average equity reached 22.1% for Q4 and exceeded 20% for the year.

• Managed receivables reached $7.0 billion, up from $2.7 billion a year earlier.

• Total assets increased to $7.6 billion as of December 31, 2025, from $3.3 billion at year-end 2024.

Outlook and guidance

• Long-term targets remain: annual earnings growth of 20%+ and return on average equity of 20%+.

• Revenue enhancements and cost benefits from Mercury integration expected to drive earnings growth in 2027 and 2028.

• Integration and synergy realization from Mercury will continue into 2027 and 2028, with full integration expected by early 2027.

• Management expects asset and revenue growth rates to slow after 2026 but anticipates continued strong returns.

• Product, policy, and pricing changes to the Mercury portfolio are expected to boost yields and revenue in 2026 and beyond.