Atlanticus Holdings Corporation (ATLC) investor relations material

Executive summary

• Achieved strong year-over-year growth in private label and general purpose credit card receivables, with period-end managed receivables rising to $3,046.5 million from $2,414.7 million as of June 30, 2025.

• Net income attributable to common shareholders increased to $28.4 million for Q2 2025, up from $18.0 million in Q2 2024; six-month net income rose to $56.3 million from $37.9 million.

• Growth driven by increased new customer acquisitions, higher merchant fees, and pricing adjustments in response to capital costs.

• Continued investment in technology, risk underwriting, and compliance to support expansion and operational efficiency.

Financial highlights

• Total operating revenue and other income for Q2 2025 was $393.8 million, up from $315.6 million in Q2 2024; six-month total was $738.7 million, up from $605.8 million.

• Net margin for Q2 2025 was $122.3 million, compared to $90.1 million in Q2 2024.

• Diluted EPS for Q2 2025 was $1.51, up from $0.99 in Q2 2024; six-month diluted EPS was $3.00, up from $2.08.

• Interest expense increased to $53.7 million in Q2 2025 from $37.9 million in Q2 2024, reflecting higher debt levels and rates.

• Cash flow from operations for the first half of 2025 was $264.3 million, up from $234.4 million in the prior year period.

Outlook and guidance

• Expect continued growth in private label and general purpose credit card receivables, with net period-over-period increases in interest income and related fees projected for 2025.

• Anticipate higher interest expense in upcoming quarters due to additional debt financing and higher effective rates.

• Managed receivables growth dependent on new retail partners, marketing investment, and consumer demand.

• Expect combined principal net charge-off ratios to decrease in 2025 compared to prior periods, benefiting from portfolio growth and improved credit performance.