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Highlights

  • Net income attributable to common shareholders increased 57.8% to USD 28.4 million in Q2 2025.
  • Total operating revenue and other income rose 24.8% to USD 393.8 million year over year.
  • Managed receivables grew 26.1% to USD 3.0 billion, with 4.0 million accounts served.

Atlanticus Holdings Corporation (NASDAQ: ATLC) reported second-quarter 2025 results, posting net income attributable to common shareholders of USD 28.4 million, or USD 1.51 per diluted share, up 57.8% from USD 18.0 million in the same period of 2024. Net margin growth was 35.8% compared to the prior year.

Total operating revenue and other income reached USD 393.8 million, an increase of 24.8% year over year. Managed receivables grew 26.1% to USD 3.0 billion. The company added over 590,000 new accounts during the quarter, bringing total accounts served to 4.0 million. Purchase volume for the quarter totaled USD 997.9 million. Return on average equity was 20.8%.

Growth in receivables was driven by both private label and general purpose credit card portfolios, with the former experiencing stronger growth in recent quarters. Management expects general purpose credit card receivables to increase at a faster pace than private label credit receivables in the latter part of 2025, contributing to higher operating revenue, though with marginally lower managed yield ratios due to portfolio mix changes.

Interest expense rose to USD 53.7 million from USD 37.9 million in the prior-year quarter, reflecting increased borrowing to fund receivable growth and higher effective interest rates on new debt. Outstanding notes payable tied to the credit card platform increased to USD 2.43 billion from USD 1.82 billion a year earlier, driven by new credit facilities and the issuance of 9.25% Senior Notes due 2029.

Changes in fair value of loans totaled USD 216.8 million, up from USD 186.3 million a year ago, primarily due to portfolio growth and favorable credit performance. The company cited tightened underwriting standards, lower delinquencies, and improved macroeconomic conditions as factors supporting valuation improvements.

Total operating expenses increased 33.7% year over year, mainly from higher marketing and solicitation costs to acquire new accounts, increased servicing costs tied to receivable growth, and inflationary pressures on compensation. The company anticipates continued increases in marketing and servicing expenditures through 2025, offset in part by efficiency gains from scale and automation.

Atlanticus stated it remains focused on disciplined growth, with expectations for ongoing expansion in both private label and general-purpose credit card operations while maintaining credit performance standards.