{"success":true,"data":{"pressRelease":{"id":"26809","rtpr_id":"nGNX810Zs6","ticker":"ATLC","exchange":"NASDAQ","all_tickers":["ATLC"],"title":"Atlanticus Reports First Quarter 2026 Financial Results","author":"Globe Newswire","published_at":"2026-05-07T20:20:00.292Z","article_body":"ATLANTA, May 07, 2026 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation\n(NASDAQ: ATLC) (Atlanticus, the Company, we, our or us), a financial\ntechnology company that enables its bank, retail and healthcare partners to\noffer more inclusive financial services to millions of Everyday Americans,\ntoday announced its financial results for the first quarter ended March 31,\n2026. An accompanying earnings presentation is available in the Investors\nsection of the Company’s website at www.atlanticus.com or by clicking here\n(https://www.globenewswire.com/Tracker?data=11AmyKejLEVj2xH1TnIv3CPNjlddbUSxkmRfuWbC79j_OCkst-ngPO2w7sRU7Y9rfHJLIzKp7_ENohAE9Lng2nbF5P6fONTkBUyUHKj4YM6-ylLPxwceglU0Mvc69M8d).\n\nFinancial and Operating Highlights\n\nFirst Quarter 2026 Highlights (all comparisons to the First Quarter 2025)\n* Total operating revenue and other income increased 97.0% to $679.5 million\n* Managed receivables(1) increased 148.5% to $6.7 billion\n* Net income attributable to common shareholders of $41.9 million, an increase\nof 49.8%, or $2.23 per Diluted common share\n* Return on average equity of 26.8%(2)\n* Purchase volume of $1,351.0 million\n* We serve over 5.9 million total accounts(3)\n* Over 600,000 new customers served during the quarter\n(1) Managed receivables is a non-GAAP financial measure and excludes the\nresults of our Auto Finance receivables. See Calculation of Non-GAAP Financial\nMeasures for important additional information.)\n(2) Return on average equity is calculated using Net income attributable to\ncommon shareholders as the numerator and the average of Total equity as of\nMarch 31, 2026 and December 31, 2025 as the denominator, annualized. )\n(3 ) In our calculation of total accounts served, we include all accounts with\naccount activity and accounts that have open lines of credit at the end of the\nreferenced period.)\n\nManagement Commentary\n\nJeff Howard, President and Chief Executive Officer of Atlanticus, stated,\n“First and foremost, I want to congratulate and thank the entire Atlanticus\nteam. Their efforts over the last six months have enabled us to be well ahead\nof plan in the integration of the Mercury acquisition, while providing\nexceptional service for the millions of customers we serve and generating\npositive results for our shareholders. For the quarter, we earned $2.23 per\nshare, an increase of 49.8% over last year, and exceeded our return on capital\ntarget with a return on equity of 26.8%. This was accomplished through a\nnumber of value drivers including the Mercury portfolio, as well as our legacy\nbusiness lines, which saw a 41% increase in new accounts originated on behalf\nof our bank partners, a 12% increase in purchase volume, and a substantial\nreduction in our net charge-off rate compared to first quarter of 2025.\n\nAs mentioned, we are well ahead of both our financial and operational\nintegration plans for Mercury. Our initial pricing, product and policy changes\non the acquired portfolio have been executed and are showing better than\nmodeled results and credit performance remains in line with expectations. As a\nresult, this quarter’s earnings include the benefit of a release of some\nreserves associated with the Mercury portfolio acquisition. Originations\nthrough the Mercury platform, using our historical focus on unit level\neconomics, are also ahead of plan. And most importantly, the entire team is\ntruly coming together as one Atlanticus. As a result, we are a more scaled,\nbetter resourced, more talented and capable company than we were this time\nlast year.”\n\n Financial Results For the Three Months Ended March 31, \n (Dollars in thousands, except per share data) 2026 2025 % \n Change \n \n Total operating revenue and other income $679,534 $344,873 97.0% \n Other non-operating income 55 293 nm \n Total revenue and other income 679,589 345,166 96.9% \n Interest expense (122,761) (47,530) 158.3% \n Provision for credit losses (1,600) (1,068) nm \n Changes in fair value of loans (365,524) (178,345) 105.0% \n Net margin $189,704 $118,223 60.5% \n \n Total operating expenses ($130,856) ($77,355) 69.2% \n \n Net income $44,577 $31,122 43.2% \n \n Net income attributable to controlling interests $44,175 $31,520 40.1% \n Preferred stock and preferred unit dividends and discount accretion (2,308) (3,574) nm \n Net income attributable to common shareholders $41,867 $27,946 49.8% \n \n Net income attributable to common shareholders per common share—basic $2.80 $1.85 51.4% \n \n Net income attributable to common shareholders per common share—diluted $2.23 $1.49 49.7% \n\n(*nm = not meaningful)\n\nManaged Receivables\n\nManaged receivables increased 148.5% to $6.7 billion, including $3.1 billion\nin receivables associated with our Mercury brand. Excluding receivables\nassociated with Mercury, managed receivables grew by $0.9 billion from March\n31, 2025 (an increase of 34.7%) driven by growth in both private label credit\nand general purpose credit card products offered by our bank partners. Total\naccounts served increased 56.6% to over 5.9 million (inclusive of 1.2 million\naccounts served associated with our Mercury brand). The increased purchases of\nreceivables arising in accounts issued by our bank partners to customers of\nour existing retail partners helped grow our private label credit receivables\nby $533.8 million in the twelve months ended March 31, 2026. Our general\npurpose credit card receivables grew by $3.5 billion during the twelve months\nended March 31, 2026, including $3.1 billion of credit card receivables (as of\nMarch 31, 2026) associated with our acquisition of Mercury. Absent our Mercury\ntransaction, our general purpose credit card receivables grew 27.9%. One of\nour larger merchant partners recently expanded their relationships with us,\nprimarily driving growth in our private label receivables. The seasonal\nexpansion with this retail partner tends to peak in the second and third\nquarters and declines in the fourth quarter of each year. While we currently\nexpect continued period-over-period quarterly growth in our general purpose\ncredit card receivables, we expect purchases associated with the above\nmentioned retail partner to moderate, resulting in modest increases in\nexpected period over period retail receivables.\n\nTotal Operating Revenue and Other Income\n\nTotal operating revenue and other income consists of: 1) interest income,\nfinance charges and late fees on consumer loans, 2) other fees on credit\nproducts including annual and merchant fees and 3) interchange and servicing\nincome on loan portfolios and other customer related fees. \n\nWe are currently experiencing continued period-over-period increases in\nprivate label credit and general purpose credit card receivables. Growth in\nthese receivables includes general purpose credit card receivables associated\nwith our acquisition, and subsequent growth of Mercury, which added $3,078.7\nmillion in receivables as of March 31, 2026. Growth in our general purpose\ncredit card receivables is expected to continue throughout 2026 and to outpace\ngrowth in our private label credit receivables as we continue to expand our\nmarketing efforts. We currently expect our private label credit receivable\nbalance to modestly increase in 2026 as volumes of receivables acquisitions\nfor which we have limited loss exposure due to agreements with retail\npartners, are expected to slow, offsetting general growth from other retail\npartners. \n\nDuring the quarter ended March 31, 2026, total operating revenue and other\nincome increased 97.0% to $679.5 million. This increase was primarily due to\nour acquisition of Mercury which contributed $224.4 million to Total\noperating revenue and other income in the period. Adding to this was quarterly\ngrowth in both new credit card and private label customers serviced, the total\naccounts of which increased over 900,000 for the quarter ended March 31, 2026\n(excluding those serviced accounts added as part of our acquisition of\nMercury) compared to the same period in 2025. As part of our acquisition of\nMercury, we are currently enacting a number of product, policy and pricing\nchanges on the newly acquired portfolio of general purpose credit card\nreceivables. These changes should result in meaningful additions to our Total\noperating revenue and other income in 2026 and beyond, although certain\nof the changes will take several quarters to be fully realized.\n\nInterest Expense\n\nInterest expense was $122.8 million for the quarter ended March 31, 2026,\ncompared to $47.5 million for the quarter ended March 31, 2025. The higher\nexpenses were primarily driven by increases in outstanding debt, in proportion\nto growth in our receivables coupled with increases in the cost of borrowing.\n\nOutstanding notes payable, net of unamortized debt issuance costs and\ndiscounts, associated with our private label credit and general purpose credit\ncard platform (including those associated with the Mercury acquisition)\nincreased to $5,606.7 million as of March 31, 2026, from $2,137.6 million as\nof March 31, 2025. This growth, period over period, included notes payable\nassociated with our Mercury acquisition of $2,747.6 million as of March 31,\n2026. Interest expense increased $75.2 million for the quarter ended March\n31, 2026, when compared to the quarter ended March 31, 2025. The majority of\nthis increase in interest expense relates to the addition of multiple credit\nfacilities in 2025 associated with growth in our card and loan receivables,\ncoupled with the issuances of 9.25% Senior Notes due 2029 and our issuance of\n$400.0 million aggregate principal amount of 9.750% Senior Notes due 2030.\nRecent increases in the effective interest rates on debt have increased our\ninterest expense as we have raised additional capital (or replaced existing\nfacilities). We anticipate additional debt financing over the next few\nquarters as we continue to grow our receivables. As such, and when coupled\nwith the interest expense associated with the acquired Mercury debt\nfacilities, we expect our quarterly interest expense to increase compared to\nprior periods throughout 2026.  \n\nChanges in Fair Value of Loans\n\nChanges in fair value of loans increased to $(365.5) million for the quarter\nended March 31, 2026 compared to $(178.3) million for the quarter ended March\n31, 2025. This increase was largely driven by increased losses in our Changes\nin fair value of loans due to charge-offs (net of recoveries) associated with\na much larger receivable base. These charge-offs were offset somewhat by\nfavorable assumption changes for the first quarter of 2026 which were largely\ndue to improvements in new customers served added in the third and fourth\nquarters of 2025. As newly serviced accounts tend to have lower initial fair\nvalues until the associated receivables have seasoned through peak charge off\nperiods, the maturation of these accounts, and seasonal declines in new\nreceivables acquisitions in the first quarter of 2026, led to an expected\nincrease in the fair value of the associated receivables. Additionally\noffsetting these losses was a $13.0 million gain related to a reduction in the\nfair value of contingent consideration associated with our acquisition of\nMercury. Receivables acquired as part of our acquisition of Mercury were\ninitially valued at a lower fair value than our existing portfolio of credit\ncard receivables (as a percentage of the gross outstanding receivable). We are\ncurrently enacting a number of product, policy and pricing changes on the\nMercury portfolio of general purpose credit card receivables. Once\nimplemented, we would expect to see continued improvement in the fair value of\nthese receivables.\n\nWe include asset performance degradation in our forecasts to reflect both\nchanges in assumed asset level economics and the possibility of delinquency\nrates increasing in the near term (and the corresponding increase in\ncharge-offs and decrease in payments) above the level that current trends\nwould suggest. Based on observed asset stabilization, and general improvements\nin U.S. economic expectations due to the improved inflation environment, some\nexpected degradation has been removed in recent periods.\n\nTotal Operating Expenses\n\nTotal operating expenses increased 69.2% in the quarter when compared to the\nsame period in 2025, driven primarily, in all expense categories, by our\nacquisition of Mercury. Additional increases were noted due to increased\nmarketing and solicitation costs associated with assisting our bank partners\nacquire new customers and variable servicing costs associated with growth in\nour receivables. We also experienced growth in the number of employees and\nrelated compensation expenses. Certain other expenditures related to occupancy\nand other third-party expenses, which are largely fixed in nature, also\ncontributed to the increase for the quarter as compared to the first quarter\nof 2025.\n\nWe expect some continued increase in year over year salaries and benefits in\n2026 compared to corresponding periods in 2025 resulting from the acquisition\nof Mercury and its associated employee base.\n\nAs many of our expenses associated with our card and loan servicing efforts\nare now variable based on the amount of underlying receivables, we would\nexpect certain expenses to continue to grow in 2026 commensurate with planned\ngrowth in our receivables balances. These expenses will primarily relate to\nthe variable costs card and loan servicing expenses associated with new\nreceivable acquisitions.\n\nIn addition, as we continue to adjust our underwriting standards to reflect\nchanges in fee and finance assumptions on new receivables, and allow for\noverall increases in the cost to successfully market to consumers, we expect\nperiod over period marketing costs for 2026 to increase relative to those\nexperienced in 2025. The frequency and timing of increased marketing efforts\ncould vary and are dependent on macroeconomic factors such as national\nunemployment rates and federal funds rates.\n\nNet Income Attributable to Common Shareholders\n\nNet income attributable to common shareholders increased 49.8% to $41.9\nmillion, or $2.23 per diluted share for the quarter ended March 31, 2026.\n\nShare Repurchases\n\nWe repurchased and retired 72,008 shares of our common stock in the quarter\nended March 31, 2026.\n\nAbout Atlanticus Holdings Corporation\n\nEmpowering Better Financial Outcomes for Everyday Americans\n\nAtlanticus Holdings Corporation empowers better financial outcomes for\nEveryday Americans by enabling bank, retail, healthcare, and automotive\npartners to offer more inclusive financial solutions to consumers. Leveraging\nproprietary technology and advanced analytics, Atlanticus applies more than 30\nyears of operating experience, servicing over 20 million customers and more\nthan $50 billion in consumer loans, to support lenders across a broad range of\nconsumer credit products. These offerings span retail and healthcare\nprivate-label credit and general purpose credit cards, through an omnichannel\nplatform, including strategic partnerships. Additionally, through its Auto\nFinance subsidiary, Atlanticus helps address the specific needs of automotive\ndealerships and non-prime automotive finance organizations with a range of\nfinancing and service programs.\n\nAtlanticus is guided by the principles of responsible lending, smart\ninnovation, and expanding access to credit for consumers working toward a\nstronger financial future.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements that reflect the\nCompany's current views with respect to, among other things, expectations for\nthe benefits of the acquisition of Mercury, including expected synergies and\nfuture financial and operating results; the Company’s plans, objectives,\nexpectations and intentions for Mercury including the product, policy and\npricing changes to the acquired portfolio and the timing and results related\nthereto; long-term growth plans and opportunities; operations; financial\nperformance; amount and pace of growth of managed receivables; mix of\nreceivables; fair value of receivables; debt financing; interest expense;\noperating expense; and marketing efforts. You generally can identify these\nstatements by the use of words such as outlook, potential, continue, may,\nseek, approximately, predict, believe, expect, plan, intend, estimate or\nanticipate and similar expressions or the negative versions of these words or\ncomparable words, as well as future or conditional verbs such as will, should,\nwould, likely and could. These statements are subject to certain risks and\nuncertainties that could cause actual results to differ materially from those\nincluded in the forward-looking statements. These risks and uncertainties\ninclude those risks described in the Company's filings with the Securities and\nExchange Commission and include, but are not limited to, risks related to the\nintegration of the Mercury business and the management of the Mercury\nportfolio; bank partners; merchant partners; consumers; loan demand; the\ncapital markets; labor availability; supply chains and the economy in general;\nthe Company's ability to retain existing, and attract new, merchant partners\nand funding sources; changes in market interest rates; increases in loan\ndelinquencies; its ability to operate successfully in a highly regulated\nindustry; the outcome of litigation and regulatory matters; the effect of\nmanagement changes; cyberattacks and security vulnerabilities in its products\nand services; and the Company's ability to compete successfully in highly\ncompetitive markets. The forward-looking statements speak only as of the date\non which they are made, and, except to the extent required by federal\nsecurities laws, the Company disclaims any obligation to update any\nforward-looking statement to reflect events or circumstances after the date on\nwhich the statement is made or to reflect the occurrence of unanticipated\nevents. In light of these risks and uncertainties, there is no assurance that\nthe events or results suggested by the forward-looking statements will in fact\noccur, and you should not place undue reliance on these forward-looking\nstatements.\n\nContact:\nInvestor Relations\ninvestors@atlanticus.com\nDan Mauch, dan.mauch@atlanticus.com\nSara Savarino, s\n(https://www.globenewswire.com/Tracker?data=-oqCwRmt0XsZNRrFHUKARG1_fdxh87NuZKJiN1ppAEuDdltMyNVY8b60qoEqqPlM7CSOtQufQuDAIRyaFRYBMg==)ara.savarino@atlanticus.com\n\n \n Atlanticus Holdings Corporation and Subsidiaries \n Consolidated Balance Sheets (Unaudited) \n (Dollars in thousands) \n March 31, December 31, \n 2026 2025 \n Assets \n Unrestricted cash and cash equivalents (including $234.4 million and $209.6 million associated with variable interest entities at March 31, 2026 and December 31, 2025, respectively) $ 651,128 $ 621,093 \n Restricted cash and cash equivalents (including $126.2 million and $117.6 million associated with variable interest entities at March 31, 2026 and December 31, 2025, respectively) 152,931 146,314 \n Loans at fair value (including $6,337.6 million and $6,522.9 million associated with variable interest entities at March 31, 2026 and December 31, 2025, respectively) 6,452,121 6,647,882 \n Loans at amortized cost, net (including $3.8 million and $4.1 million of allowance for credit losses at March 31, 2026 and December 31, 2025, respectively; and $19.5 million and $20.1 million of deferred revenue at March 31, 2026 and December 31, 2025, respectively) 80,719 82,884 \n Property at cost, net of depreciation 11,823 12,589 \n Intangible assets 27,699 30,268 \n Operating lease right-of-use assets 14,515 15,104 \n Prepaid expenses and other assets 74,098 66,954 \n Total assets $ 7,465,034 $ 7,623,088 \n \n Liabilities \n Accounts payable and accrued expenses $ 258,338 $ 284,514 \n Operating lease liabilities 24,453 25,283 \n Notes payable, net (including $5,607.2 million and $5,739.1 million associated with variable interest entities at March 31, 2026 and December 31, 2025, respectively) 5,637,437 5,818,761 \n Senior notes, net 692,373 698,562 \n Income tax liability 168,463 152,138 \n Total liabilities 6,781,064 6,979,258 \n \n Commitments and contingencies \n Preferred stock, no par value, 10,000,000 shares authorized: \n Series A preferred stock, 400,000 shares issued and outstanding (liquidation preference - $40.0 million) at March 31, 2026 and December 31, 2025(1) 40,000 40,000 \n Commitments and contingencies – – \n \n Shareholders' Equity \n Series B preferred stock, no par value, 3,584,646 shares issued and outstanding at March 31, 2026 (liquidation preference - $89.6 million); 3,584,131 shares issued and outstanding at December 31, 2025 (liquidation preference - $89.6 million) (1) – – \n Common stock, no par value, 150,000,000 shares authorized: 15,086,414 and 14,922,462 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively – – \n Paid-in capital 100,144 102,276 \n Retained earnings 548,291 506,424 \n Total shareholders’ equity attributable to Atlanticus Holdings Corporation 648,435 608,700 \n Noncontrolling interests (4,465 ) (4,870 ) \n Total equity 643,970 603,830 \n Total liabilities, shareholders' equity and temporary equity $ 7,465,034 $ 7,623,088 \n \n\n(1) Both the Series A preferred stock and the Series B preferred stock have no\npar value and are part of the same aggregate 10,000,000 shares authorized.\n\n\n\n \n Atlanticus Holdings Corporation and Subsidiaries \n Consolidated Statements of Income (Unaudited) \n (Dollars in thousands, except per share data) \n For the Three Months Ended \n March 31, \n 2026 2025 \n Revenue and other income: \n Consumer loans, including past due fees $ 529,445 $ 247,655 \n Fees and related income on earning assets 110,429 78,341 \n Other revenue 39,660 18,877 \n Total operating revenue and other income 679,534 344,873 \n Other non-operating income 55 293 \n Total revenue and other income 679,589 345,166 \n \n Interest expense (122,761 ) (47,530 ) \n Provision for credit losses (1,600 ) (1,068 ) \n Changes in fair value of loans (365,524 ) (178,345 ) \n Net margin 189,704 118,223 \n \n Operating expenses: \n Salaries and benefits (28,646 ) (15,503 ) \n Card and loan servicing (44,918 ) (32,152 ) \n Marketing and solicitation (36,473 ) (20,334 ) \n Depreciation and amortization (3,586 ) (797 ) \n Other (17,233 ) (8,569 ) \n Total operating expenses (130,856 ) (77,355 ) \n Income before income taxes 58,848 40,868 \n Income tax expense (14,271 ) (9,746 ) \n Net income 44,577 31,122 \n Net loss attributable to noncontrolling interests (402 ) 398 \n Net income attributable to controlling interests 44,175 31,520 \n Preferred stock and preferred unit dividends and discount accretion (2,308 ) (3,574 ) \n Net income attributable to common shareholders $ 41,867 $ 27,946 \n \n Net income attributable to common shareholders per common share—basic $ 2.80 $ 1.85 \n Net income attributable to common shareholders per common share—diluted $ 2.23 $ 1.49 \n \n\nAdditional Information\n\nAdditional trends and data with respect to our private label credit and\ngeneral purpose credit card receivables can be found in our latest Form 10-Q\nfiling with the Securities and Exchange Commission under Management's\nDiscussion and Analysis of Financial Condition and Results of Operations.\n\nCalculation of Non-GAAP Financial Measures\n\nThis press release presents information about managed receivables, which is a\nnon-GAAP financial measure provided as a supplement to the results provided in\naccordance with accounting principles generally accepted in the United States\nof America (GAAP). In addition to financial measures presented in accordance\nwith GAAP, we present managed receivables, total managed yield, combined\nprincipal net charge-offs, and fair value to total managed receivables ratio,\nall of which are non-GAAP financial measures. These non-GAAP financial\nmeasures aid in the evaluation of the performance of our credit portfolios,\nincluding our risk management, servicing and collection activities and our\nvaluation of purchased receivables. The credit performance of our managed\nreceivables provides information concerning the quality of loan originations\nand the related credit risks inherent with the portfolios. Management relies\nheavily upon financial data and results prepared on the managed basis in order\nto manage our business, make planning decisions, evaluate our performance and\nallocate resources.\n\nThese non-GAAP financial measures are presented for supplemental informational\npurposes only. These non-GAAP financial measures have limitations as\nanalytical tools and should not be considered in isolation from, or as a\nsubstitute for, GAAP financial measures. These non-GAAP financial measures may\ndiffer from the non-GAAP financial measures used by other companies. A\nreconciliation of non-GAAP financial measures to the most directly comparable\nGAAP financial measures or the calculation of the non-GAAP financial measures\nare provided below for each of the fiscal periods indicated.\n\nAdditionally, we calculate average managed receivables based on the\nquarter-end balances.\n\nThe comparison of non-GAAP managed receivables to our GAAP financial\nstatements requires an understanding that managed receivables reflect the face\nvalue of loans, interest and fees receivable without any consideration for\npotential loan losses or other adjustments to reflect fair value.\n\nA reconciliation of Loans at fair value to Total managed receivables is as\nfollows:\n\n At or for the Three Months Ended \n 2026 2025 2024 \n (in Millions) Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 \n \n Loans at fair value $ 6,452.1 $ 6,647.9 $ 6,350.0 $ 3,004.7 $ 2,668.5 $ 2,630.3 $ 2,511.6 $ 2,277.4 \n Fair value mark against receivable (1) 272.8 305.5 250.1 41.8 37.8 94.5 142.5 137.7 \n Total managed receivables (2) $ 6,724.9 $ 6,953.4 $ 6,600.1 $ 3,046.5 $ 2,706.3 $ 2,724.8 $ 2,654.1 $ 2,415.1 \n \n Fair value to Total managed receivables ratio (3) 95.9 % 95.6 % 96.2 % 98.6 % 98.6 % 96.5 % 94.6 % 94.3 % \n \n\n(1) The fair value mark against receivables reflects the difference between\nthe face value of a receivable and the net present value of the expected cash\nflows associated with that receivable.\n(2) Total managed receivables are equal to the aggregate unpaid gross balance\nof loans at fair value.\n(3) The Fair value to Total managed receivable ratio is calculated using Loans\nat fair value as the numerator, and Total managed receivables, as the\ndenominator.\n\nA reconciliation of our operating revenues and other income, net of finance\nand fee charge-offs, to comparable amounts used in our calculation of Total\nmanaged yield is as follows:\n\n At or for the Three Months Ended \n 2026 2025 2024 \n (in Millions) Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 \n Consumer loans, including past due fees $ 519.9 $ 528.7 $ 331.7 $ 267.2 $ 238.5 $ 242.1 $ 245.3 $ 232.1 \n Fees and related income on earning assets 110.1 155.8 122.5 94.3 78.3 83.8 78.5 59.5 \n Other revenue 39.4 39.5 30.4 23.0 18.7 17.5 16.8 13.6 \n Total operating revenue and other income - CaaS Segment 669.4 724.0 484.6 384.5 335.5 343.4 340.6 305.2 \n Adjustments due to acceleration of merchant fee discount amortization under fair value accounting 9.6 (6.1 ) (16.0 ) (26.6 ) 0.1 0.7 (15.1 ) (12.6 ) \n Adjustments due to acceleration of annual fees recognition under fair value accounting 9.6 (8.3 ) (24.4 ) (8.8 ) (4.2 ) (10.5 ) (8.0 ) 1.1 \n Removal of finance charge-offs (114.7 ) (114.1 ) (78.8 ) (68.2 ) (70.0 ) (64.9 ) (60.6 ) (62.9 ) \n Total managed yield $ 573.9 $ 595.5 $ 365.4 $ 280.9 $ 261.4 $ 268.7 $ 256.9 $ 230.8 \n \n\nThe calculation of Combined principal net charge-offs is as\n\n At or for the Three Months Ended \n 2026 2025 2024 \n (in Millions) Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 \n Charge-offs on loans at fair value $ 406.4 $ 377.9 $ 231.8 $ 211.8 $ 233.5 $ 213.1 $ 201.5 $ 217.0 \n Finance charge-offs (1) (114.7 ) (114.1 ) (78.8 ) (68.2 ) (70.0 ) (64.9 ) (60.6 ) (62.9 ) \n Combined principal net charge-offs $ 291.7 $ 263.8 $ 153.0 $ 143.6 $ 163.5 $ 148.2 $ 140.9 $ 154.1 \n \n\n(1) Finance charge-offs are included as a component of our Changes in fair\nvalue of loans in the consolidated statements of income.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/94f3a565-f778-4679-939a-bcc1033d9903)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX810Zs6","title":"Atlanticus Reports First Quarter 2026 Financial Results","author":"Globe Newswire","ticker":"ATLC","created":"2026-05-07T20:20:00.292Z","tickers":["ATLC"],"exchange":"NASDAQ","article_body":"ATLANTA, May 07, 2026 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation\n(NASDAQ: ATLC) (Atlanticus, the Company, we, our or us), a financial\ntechnology company that enables its bank, retail and healthcare partners to\noffer more inclusive financial services to millions of Everyday Americans,\ntoday announced its financial results for the first quarter ended March 31,\n2026. An accompanying earnings presentation is available in the Investors\nsection of the Company’s website at www.atlanticus.com or by clicking here\n(https://www.globenewswire.com/Tracker?data=11AmyKejLEVj2xH1TnIv3CPNjlddbUSxkmRfuWbC79j_OCkst-ngPO2w7sRU7Y9rfHJLIzKp7_ENohAE9Lng2nbF5P6fONTkBUyUHKj4YM6-ylLPxwceglU0Mvc69M8d).\n\nFinancial and Operating Highlights\n\nFirst Quarter 2026 Highlights (all comparisons to the First Quarter 2025)\n* Total operating revenue and other income increased 97.0% to $679.5 million\n* Managed receivables(1) increased 148.5% to $6.7 billion\n* Net income attributable to common shareholders of $41.9 million, an increase\nof 49.8%, or $2.23 per Diluted common share\n* Return on average equity of 26.8%(2)\n* Purchase volume of $1,351.0 million\n* We serve over 5.9 million total accounts(3)\n* Over 600,000 new customers served during the quarter\n(1) Managed receivables is a non-GAAP financial measure and excludes the\nresults of our Auto Finance receivables. See Calculation of Non-GAAP Financial\nMeasures for important additional information.)\n(2) Return on average equity is calculated using Net income attributable to\ncommon shareholders as the numerator and the average of Total equity as of\nMarch 31, 2026 and December 31, 2025 as the denominator, annualized. )\n(3 ) In our calculation of total accounts served, we include all accounts with\naccount activity and accounts that have open lines of credit at the end of the\nreferenced period.)\n\nManagement Commentary\n\nJeff Howard, President and Chief Executive Officer of Atlanticus, stated,\n“First and foremost, I want to congratulate and thank the entire Atlanticus\nteam. Their efforts over the last six months have enabled us to be well ahead\nof plan in the integration of the Mercury acquisition, while providing\nexceptional service for the millions of customers we serve and generating\npositive results for our shareholders. For the quarter, we earned $2.23 per\nshare, an increase of 49.8% over last year, and exceeded our return on capital\ntarget with a return on equity of 26.8%. This was accomplished through a\nnumber of value drivers including the Mercury portfolio, as well as our legacy\nbusiness lines, which saw a 41% increase in new accounts originated on behalf\nof our bank partners, a 12% increase in purchase volume, and a substantial\nreduction in our net charge-off rate compared to first quarter of 2025.\n\nAs mentioned, we are well ahead of both our financial and operational\nintegration plans for Mercury. Our initial pricing, product and policy changes\non the acquired portfolio have been executed and are showing better than\nmodeled results and credit performance remains in line with expectations. As a\nresult, this quarter’s earnings include the benefit of a release of some\nreserves associated with the Mercury portfolio acquisition. Originations\nthrough the Mercury platform, using our historical focus on unit level\neconomics, are also ahead of plan. And most importantly, the entire team is\ntruly coming together as one Atlanticus. As a result, we are a more scaled,\nbetter resourced, more talented and capable company than we were this time\nlast year.”\n\n Financial Results For the Three Months Ended March 31, \n (Dollars in thousands, except per share data) 2026 2025 % \n Change \n \n Total operating revenue and other income $679,534 $344,873 97.0% \n Other non-operating income 55 293 nm \n Total revenue and other income 679,589 345,166 96.9% \n Interest expense (122,761) (47,530) 158.3% \n Provision for credit losses (1,600) (1,068) nm \n Changes in fair value of loans (365,524) (178,345) 105.0% \n Net margin $189,704 $118,223 60.5% \n \n Total operating expenses ($130,856) ($77,355) 69.2% \n \n Net income $44,577 $31,122 43.2% \n \n Net income attributable to controlling interests $44,175 $31,520 40.1% \n Preferred stock and preferred unit dividends and discount accretion (2,308) (3,574) nm \n Net income attributable to common shareholders $41,867 $27,946 49.8% \n \n Net income attributable to common shareholders per common share—basic $2.80 $1.85 51.4% \n \n Net income attributable to common shareholders per common share—diluted $2.23 $1.49 49.7% \n\n(*nm = not meaningful)\n\nManaged Receivables\n\nManaged receivables increased 148.5% to $6.7 billion, including $3.1 billion\nin receivables associated with our Mercury brand. Excluding receivables\nassociated with Mercury, managed receivables grew by $0.9 billion from March\n31, 2025 (an increase of 34.7%) driven by growth in both private label credit\nand general purpose credit card products offered by our bank partners. Total\naccounts served increased 56.6% to over 5.9 million (inclusive of 1.2 million\naccounts served associated with our Mercury brand). The increased purchases of\nreceivables arising in accounts issued by our bank partners to customers of\nour existing retail partners helped grow our private label credit receivables\nby $533.8 million in the twelve months ended March 31, 2026. Our general\npurpose credit card receivables grew by $3.5 billion during the twelve months\nended March 31, 2026, including $3.1 billion of credit card receivables (as of\nMarch 31, 2026) associated with our acquisition of Mercury. Absent our Mercury\ntransaction, our general purpose credit card receivables grew 27.9%. One of\nour larger merchant partners recently expanded their relationships with us,\nprimarily driving growth in our private label receivables. The seasonal\nexpansion with this retail partner tends to peak in the second and third\nquarters and declines in the fourth quarter of each year. While we currently\nexpect continued period-over-period quarterly growth in our general purpose\ncredit card receivables, we expect purchases associated with the above\nmentioned retail partner to moderate, resulting in modest increases in\nexpected period over period retail receivables.\n\nTotal Operating Revenue and Other Income\n\nTotal operating revenue and other income consists of: 1) interest income,\nfinance charges and late fees on consumer loans, 2) other fees on credit\nproducts including annual and merchant fees and 3) interchange and servicing\nincome on loan portfolios and other customer related fees. \n\nWe are currently experiencing continued period-over-period increases in\nprivate label credit and general purpose credit card receivables. Growth in\nthese receivables includes general purpose credit card receivables associated\nwith our acquisition, and subsequent growth of Mercury, which added $3,078.7\nmillion in receivables as of March 31, 2026. Growth in our general purpose\ncredit card receivables is expected to continue throughout 2026 and to outpace\ngrowth in our private label credit receivables as we continue to expand our\nmarketing efforts. We currently expect our private label credit receivable\nbalance to modestly increase in 2026 as volumes of receivables acquisitions\nfor which we have limited loss exposure due to agreements with retail\npartners, are expected to slow, offsetting general growth from other retail\npartners. \n\nDuring the quarter ended March 31, 2026, total operating revenue and other\nincome increased 97.0% to $679.5 million. This increase was primarily due to\nour acquisition of Mercury which contributed $224.4 million to Total\noperating revenue and other income in the period. Adding to this was quarterly\ngrowth in both new credit card and private label customers serviced, the total\naccounts of which increased over 900,000 for the quarter ended March 31, 2026\n(excluding those serviced accounts added as part of our acquisition of\nMercury) compared to the same period in 2025. As part of our acquisition of\nMercury, we are currently enacting a number of product, policy and pricing\nchanges on the newly acquired portfolio of general purpose credit card\nreceivables. These changes should result in meaningful additions to our Total\noperating revenue and other income in 2026 and beyond, although certain\nof the changes will take several quarters to be fully realized.\n\nInterest Expense\n\nInterest expense was $122.8 million for the quarter ended March 31, 2026,\ncompared to $47.5 million for the quarter ended March 31, 2025. The higher\nexpenses were primarily driven by increases in outstanding debt, in proportion\nto growth in our receivables coupled with increases in the cost of borrowing.\n\nOutstanding notes payable, net of unamortized debt issuance costs and\ndiscounts, associated with our private label credit and general purpose credit\ncard platform (including those associated with the Mercury acquisition)\nincreased to $5,606.7 million as of March 31, 2026, from $2,137.6 million as\nof March 31, 2025. This growth, period over period, included notes payable\nassociated with our Mercury acquisition of $2,747.6 million as of March 31,\n2026. Interest expense increased $75.2 million for the quarter ended March\n31, 2026, when compared to the quarter ended March 31, 2025. The majority of\nthis increase in interest expense relates to the addition of multiple credit\nfacilities in 2025 associated with growth in our card and loan receivables,\ncoupled with the issuances of 9.25% Senior Notes due 2029 and our issuance of\n$400.0 million aggregate principal amount of 9.750% Senior Notes due 2030.\nRecent increases in the effective interest rates on debt have increased our\ninterest expense as we have raised additional capital (or replaced existing\nfacilities). We anticipate additional debt financing over the next few\nquarters as we continue to grow our receivables. As such, and when coupled\nwith the interest expense associated with the acquired Mercury debt\nfacilities, we expect our quarterly interest expense to increase compared to\nprior periods throughout 2026.  \n\nChanges in Fair Value of Loans\n\nChanges in fair value of loans increased to $(365.5) million for the quarter\nended March 31, 2026 compared to $(178.3) million for the quarter ended March\n31, 2025. This increase was largely driven by increased losses in our Changes\nin fair value of loans due to charge-offs (net of recoveries) associated with\na much larger receivable base. These charge-offs were offset somewhat by\nfavorable assumption changes for the first quarter of 2026 which were largely\ndue to improvements in new customers served added in the third and fourth\nquarters of 2025. As newly serviced accounts tend to have lower initial fair\nvalues until the associated receivables have seasoned through peak charge off\nperiods, the maturation of these accounts, and seasonal declines in new\nreceivables acquisitions in the first quarter of 2026, led to an expected\nincrease in the fair value of the associated receivables. Additionally\noffsetting these losses was a $13.0 million gain related to a reduction in the\nfair value of contingent consideration associated with our acquisition of\nMercury. Receivables acquired as part of our acquisition of Mercury were\ninitially valued at a lower fair value than our existing portfolio of credit\ncard receivables (as a percentage of the gross outstanding receivable). We are\ncurrently enacting a number of product, policy and pricing changes on the\nMercury portfolio of general purpose credit card receivables. Once\nimplemented, we would expect to see continued improvement in the fair value of\nthese receivables.\n\nWe include asset performance degradation in our forecasts to reflect both\nchanges in assumed asset level economics and the possibility of delinquency\nrates increasing in the near term (and the corresponding increase in\ncharge-offs and decrease in payments) above the level that current trends\nwould suggest. Based on observed asset stabilization, and general improvements\nin U.S. economic expectations due to the improved inflation environment, some\nexpected degradation has been removed in recent periods.\n\nTotal Operating Expenses\n\nTotal operating expenses increased 69.2% in the quarter when compared to the\nsame period in 2025, driven primarily, in all expense categories, by our\nacquisition of Mercury. Additional increases were noted due to increased\nmarketing and solicitation costs associated with assisting our bank partners\nacquire new customers and variable servicing costs associated with growth in\nour receivables. We also experienced growth in the number of employees and\nrelated compensation expenses. Certain other expenditures related to occupancy\nand other third-party expenses, which are largely fixed in nature, also\ncontributed to the increase for the quarter as compared to the first quarter\nof 2025.\n\nWe expect some continued increase in year over year salaries and benefits in\n2026 compared to corresponding periods in 2025 resulting from the acquisition\nof Mercury and its associated employee base.\n\nAs many of our expenses associated with our card and loan servicing efforts\nare now variable based on the amount of underlying receivables, we would\nexpect certain expenses to continue to grow in 2026 commensurate with planned\ngrowth in our receivables balances. These expenses will primarily relate to\nthe variable costs card and loan servicing expenses associated with new\nreceivable acquisitions.\n\nIn addition, as we continue to adjust our underwriting standards to reflect\nchanges in fee and finance assumptions on new receivables, and allow for\noverall increases in the cost to successfully market to consumers, we expect\nperiod over period marketing costs for 2026 to increase relative to those\nexperienced in 2025. The frequency and timing of increased marketing efforts\ncould vary and are dependent on macroeconomic factors such as national\nunemployment rates and federal funds rates.\n\nNet Income Attributable to Common Shareholders\n\nNet income attributable to common shareholders increased 49.8% to $41.9\nmillion, or $2.23 per diluted share for the quarter ended March 31, 2026.\n\nShare Repurchases\n\nWe repurchased and retired 72,008 shares of our common stock in the quarter\nended March 31, 2026.\n\nAbout Atlanticus Holdings Corporation\n\nEmpowering Better Financial Outcomes for Everyday Americans\n\nAtlanticus Holdings Corporation empowers better financial outcomes for\nEveryday Americans by enabling bank, retail, healthcare, and automotive\npartners to offer more inclusive financial solutions to consumers. Leveraging\nproprietary technology and advanced analytics, Atlanticus applies more than 30\nyears of operating experience, servicing over 20 million customers and more\nthan $50 billion in consumer loans, to support lenders across a broad range of\nconsumer credit products. These offerings span retail and healthcare\nprivate-label credit and general purpose credit cards, through an omnichannel\nplatform, including strategic partnerships. Additionally, through its Auto\nFinance subsidiary, Atlanticus helps address the specific needs of automotive\ndealerships and non-prime automotive finance organizations with a range of\nfinancing and service programs.\n\nAtlanticus is guided by the principles of responsible lending, smart\ninnovation, and expanding access to credit for consumers working toward a\nstronger financial future.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements that reflect the\nCompany's current views with respect to, among other things, expectations for\nthe benefits of the acquisition of Mercury, including expected synergies and\nfuture financial and operating results; the Company’s plans, objectives,\nexpectations and intentions for Mercury including the product, policy and\npricing changes to the acquired portfolio and the timing and results related\nthereto; long-term growth plans and opportunities; operations; financial\nperformance; amount and pace of growth of managed receivables; mix of\nreceivables; fair value of receivables; debt financing; interest expense;\noperating expense; and marketing efforts. You generally can identify these\nstatements by the use of words such as outlook, potential, continue, may,\nseek, approximately, predict, believe, expect, plan, intend, estimate or\nanticipate and similar expressions or the negative versions of these words or\ncomparable words, as well as future or conditional verbs such as will, should,\nwould, likely and could. These statements are subject to certain risks and\nuncertainties that could cause actual results to differ materially from those\nincluded in the forward-looking statements. These risks and uncertainties\ninclude those risks described in the Company's filings with the Securities and\nExchange Commission and include, but are not limited to, risks related to the\nintegration of the Mercury business and the management of the Mercury\nportfolio; bank partners; merchant partners; consumers; loan demand; the\ncapital markets; labor availability; supply chains and the economy in general;\nthe Company's ability to retain existing, and attract new, merchant partners\nand funding sources; changes in market interest rates; increases in loan\ndelinquencies; its ability to operate successfully in a highly regulated\nindustry; the outcome of litigation and regulatory matters; the effect of\nmanagement changes; cyberattacks and security vulnerabilities in its products\nand services; and the Company's ability to compete successfully in highly\ncompetitive markets. The forward-looking statements speak only as of the date\non which they are made, and, except to the extent required by federal\nsecurities laws, the Company disclaims any obligation to update any\nforward-looking statement to reflect events or circumstances after the date on\nwhich the statement is made or to reflect the occurrence of unanticipated\nevents. In light of these risks and uncertainties, there is no assurance that\nthe events or results suggested by the forward-looking statements will in fact\noccur, and you should not place undue reliance on these forward-looking\nstatements.\n\nContact:\nInvestor Relations\ninvestors@atlanticus.com\nDan Mauch, dan.mauch@atlanticus.com\nSara Savarino, s\n(https://www.globenewswire.com/Tracker?data=-oqCwRmt0XsZNRrFHUKARG1_fdxh87NuZKJiN1ppAEuDdltMyNVY8b60qoEqqPlM7CSOtQufQuDAIRyaFRYBMg==)ara.savarino@atlanticus.com\n\n \n Atlanticus Holdings Corporation and Subsidiaries \n Consolidated Balance Sheets (Unaudited) \n (Dollars in thousands) \n March 31, December 31, \n 2026 2025 \n Assets \n Unrestricted cash and cash equivalents (including $234.4 million and $209.6 million associated with variable interest entities at March 31, 2026 and December 31, 2025, respectively) $ 651,128 $ 621,093 \n Restricted cash and cash equivalents (including $126.2 million and $117.6 million associated with variable interest entities at March 31, 2026 and December 31, 2025, respectively) 152,931 146,314 \n Loans at fair value (including $6,337.6 million and $6,522.9 million associated with variable interest entities at March 31, 2026 and December 31, 2025, respectively) 6,452,121 6,647,882 \n Loans at amortized cost, net (including $3.8 million and $4.1 million of allowance for credit losses at March 31, 2026 and December 31, 2025, respectively; and $19.5 million and $20.1 million of deferred revenue at March 31, 2026 and December 31, 2025, respectively) 80,719 82,884 \n Property at cost, net of depreciation 11,823 12,589 \n Intangible assets 27,699 30,268 \n Operating lease right-of-use assets 14,515 15,104 \n Prepaid expenses and other assets 74,098 66,954 \n Total assets $ 7,465,034 $ 7,623,088 \n \n Liabilities \n Accounts payable and accrued expenses $ 258,338 $ 284,514 \n Operating lease liabilities 24,453 25,283 \n Notes payable, net (including $5,607.2 million and $5,739.1 million associated with variable interest entities at March 31, 2026 and December 31, 2025, respectively) 5,637,437 5,818,761 \n Senior notes, net 692,373 698,562 \n Income tax liability 168,463 152,138 \n Total liabilities 6,781,064 6,979,258 \n \n Commitments and contingencies \n Preferred stock, no par value, 10,000,000 shares authorized: \n Series A preferred stock, 400,000 shares issued and outstanding (liquidation preference - $40.0 million) at March 31, 2026 and December 31, 2025(1) 40,000 40,000 \n Commitments and contingencies – – \n \n Shareholders' Equity \n Series B preferred stock, no par value, 3,584,646 shares issued and outstanding at March 31, 2026 (liquidation preference - $89.6 million); 3,584,131 shares issued and outstanding at December 31, 2025 (liquidation preference - $89.6 million) (1) – – \n Common stock, no par value, 150,000,000 shares authorized: 15,086,414 and 14,922,462 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively – – \n Paid-in capital 100,144 102,276 \n Retained earnings 548,291 506,424 \n Total shareholders’ equity attributable to Atlanticus Holdings Corporation 648,435 608,700 \n Noncontrolling interests (4,465 ) (4,870 ) \n Total equity 643,970 603,830 \n Total liabilities, shareholders' equity and temporary equity $ 7,465,034 $ 7,623,088 \n \n\n(1) Both the Series A preferred stock and the Series B preferred stock have no\npar value and are part of the same aggregate 10,000,000 shares authorized.\n\n\n\n \n Atlanticus Holdings Corporation and Subsidiaries \n Consolidated Statements of Income (Unaudited) \n (Dollars in thousands, except per share data) \n For the Three Months Ended \n March 31, \n 2026 2025 \n Revenue and other income: \n Consumer loans, including past due fees $ 529,445 $ 247,655 \n Fees and related income on earning assets 110,429 78,341 \n Other revenue 39,660 18,877 \n Total operating revenue and other income 679,534 344,873 \n Other non-operating income 55 293 \n Total revenue and other income 679,589 345,166 \n \n Interest expense (122,761 ) (47,530 ) \n Provision for credit losses (1,600 ) (1,068 ) \n Changes in fair value of loans (365,524 ) (178,345 ) \n Net margin 189,704 118,223 \n \n Operating expenses: \n Salaries and benefits (28,646 ) (15,503 ) \n Card and loan servicing (44,918 ) (32,152 ) \n Marketing and solicitation (36,473 ) (20,334 ) \n Depreciation and amortization (3,586 ) (797 ) \n Other (17,233 ) (8,569 ) \n Total operating expenses (130,856 ) (77,355 ) \n Income before income taxes 58,848 40,868 \n Income tax expense (14,271 ) (9,746 ) \n Net income 44,577 31,122 \n Net loss attributable to noncontrolling interests (402 ) 398 \n Net income attributable to controlling interests 44,175 31,520 \n Preferred stock and preferred unit dividends and discount accretion (2,308 ) (3,574 ) \n Net income attributable to common shareholders $ 41,867 $ 27,946 \n \n Net income attributable to common shareholders per common share—basic $ 2.80 $ 1.85 \n Net income attributable to common shareholders per common share—diluted $ 2.23 $ 1.49 \n \n\nAdditional Information\n\nAdditional trends and data with respect to our private label credit and\ngeneral purpose credit card receivables can be found in our latest Form 10-Q\nfiling with the Securities and Exchange Commission under Management's\nDiscussion and Analysis of Financial Condition and Results of Operations.\n\nCalculation of Non-GAAP Financial Measures\n\nThis press release presents information about managed receivables, which is a\nnon-GAAP financial measure provided as a supplement to the results provided in\naccordance with accounting principles generally accepted in the United States\nof America (GAAP). In addition to financial measures presented in accordance\nwith GAAP, we present managed receivables, total managed yield, combined\nprincipal net charge-offs, and fair value to total managed receivables ratio,\nall of which are non-GAAP financial measures. These non-GAAP financial\nmeasures aid in the evaluation of the performance of our credit portfolios,\nincluding our risk management, servicing and collection activities and our\nvaluation of purchased receivables. The credit performance of our managed\nreceivables provides information concerning the quality of loan originations\nand the related credit risks inherent with the portfolios. Management relies\nheavily upon financial data and results prepared on the managed basis in order\nto manage our business, make planning decisions, evaluate our performance and\nallocate resources.\n\nThese non-GAAP financial measures are presented for supplemental informational\npurposes only. These non-GAAP financial measures have limitations as\nanalytical tools and should not be considered in isolation from, or as a\nsubstitute for, GAAP financial measures. These non-GAAP financial measures may\ndiffer from the non-GAAP financial measures used by other companies. A\nreconciliation of non-GAAP financial measures to the most directly comparable\nGAAP financial measures or the calculation of the non-GAAP financial measures\nare provided below for each of the fiscal periods indicated.\n\nAdditionally, we calculate average managed receivables based on the\nquarter-end balances.\n\nThe comparison of non-GAAP managed receivables to our GAAP financial\nstatements requires an understanding that managed receivables reflect the face\nvalue of loans, interest and fees receivable without any consideration for\npotential loan losses or other adjustments to reflect fair value.\n\nA reconciliation of Loans at fair value to Total managed receivables is as\nfollows:\n\n At or for the Three Months Ended \n 2026 2025 2024 \n (in Millions) Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 \n \n Loans at fair value $ 6,452.1 $ 6,647.9 $ 6,350.0 $ 3,004.7 $ 2,668.5 $ 2,630.3 $ 2,511.6 $ 2,277.4 \n Fair value mark against receivable (1) 272.8 305.5 250.1 41.8 37.8 94.5 142.5 137.7 \n Total managed receivables (2) $ 6,724.9 $ 6,953.4 $ 6,600.1 $ 3,046.5 $ 2,706.3 $ 2,724.8 $ 2,654.1 $ 2,415.1 \n \n Fair value to Total managed receivables ratio (3) 95.9 % 95.6 % 96.2 % 98.6 % 98.6 % 96.5 % 94.6 % 94.3 % \n \n\n(1) The fair value mark against receivables reflects the difference between\nthe face value of a receivable and the net present value of the expected cash\nflows associated with that receivable.\n(2) Total managed receivables are equal to the aggregate unpaid gross balance\nof loans at fair value.\n(3) The Fair value to Total managed receivable ratio is calculated using Loans\nat fair value as the numerator, and Total managed receivables, as the\ndenominator.\n\nA reconciliation of our operating revenues and other income, net of finance\nand fee charge-offs, to comparable amounts used in our calculation of Total\nmanaged yield is as follows:\n\n At or for the Three Months Ended \n 2026 2025 2024 \n (in Millions) Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 \n Consumer loans, including past due fees $ 519.9 $ 528.7 $ 331.7 $ 267.2 $ 238.5 $ 242.1 $ 245.3 $ 232.1 \n Fees and related income on earning assets 110.1 155.8 122.5 94.3 78.3 83.8 78.5 59.5 \n Other revenue 39.4 39.5 30.4 23.0 18.7 17.5 16.8 13.6 \n Total operating revenue and other income - CaaS Segment 669.4 724.0 484.6 384.5 335.5 343.4 340.6 305.2 \n Adjustments due to acceleration of merchant fee discount amortization under fair value accounting 9.6 (6.1 ) (16.0 ) (26.6 ) 0.1 0.7 (15.1 ) (12.6 ) \n Adjustments due to acceleration of annual fees recognition under fair value accounting 9.6 (8.3 ) (24.4 ) (8.8 ) (4.2 ) (10.5 ) (8.0 ) 1.1 \n Removal of finance charge-offs (114.7 ) (114.1 ) (78.8 ) (68.2 ) (70.0 ) (64.9 ) (60.6 ) (62.9 ) \n Total managed yield $ 573.9 $ 595.5 $ 365.4 $ 280.9 $ 261.4 $ 268.7 $ 256.9 $ 230.8 \n \n\nThe calculation of Combined principal net charge-offs is as\n\n At or for the Three Months Ended \n 2026 2025 2024 \n (in Millions) Mar. 31 Dec. 31 Sep. 30 Jun. 30 Mar. 31 Dec. 31 Sep. 30 Jun. 30 \n Charge-offs on loans at fair value $ 406.4 $ 377.9 $ 231.8 $ 211.8 $ 233.5 $ 213.1 $ 201.5 $ 217.0 \n Finance charge-offs (1) (114.7 ) (114.1 ) (78.8 ) (68.2 ) (70.0 ) (64.9 ) (60.6 ) (62.9 ) \n Combined principal net charge-offs $ 291.7 $ 263.8 $ 153.0 $ 143.6 $ 163.5 $ 148.2 $ 140.9 $ 154.1 \n \n\n(1) Finance charge-offs are included as a component of our Changes in fair\nvalue of loans in the consolidated statements of income.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/94f3a565-f778-4679-939a-bcc1033d9903)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-05-07T20:20:00.353368197Z","server_sent_at_ms":1778185200353},"received_at":"2026-05-07T20:20:00.665Z","source_url":null},"analysis":{"id":"20965","press_release_id":"26809","analysis_json":{"industry":{"label":"Financial Services","sector":"Financials"},"redFlags":["Changes in fair value of losses increased significantly to $(365.5) million driven by charge-offs on the larger receivable base","Interest expense increased 158.3% to $122.8 million due to higher debt levels and borrowing costs"],"eventType":"earnings","narrative":"Atlanticus reported strong Q1 2026 results with total operating revenue soaring 97% year-over-year to $679.5 million, driven by the Mercury acquisition and organic growth.\n\nNet income attributable to common shareholders increased 49.8% to $41.9 million, or $2.23 per diluted share, supported by a robust return on equity of 26.8%.\n\nManaged receivables grew 148.5% to $6.7 billion, while management noted the integration of Mercury is well ahead of plan with better-than-modeled credit performance.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Revenue and EPS surge on Mercury integration beating expectations."},"keyFigures":{"eps":2.23,"revenue":"$679.5 million","revenueYoy":"97.0%","customDimensions":{"net_income":41867000,"return_on_equity":"26.8%","managed_receivables":6700000000}},"quotedText":"For the quarter, we earned $2.23 per share, an increase of 49.8% over last year, and exceeded our return on capital target with a return on equity of 26.8%.","namedEntities":{"people":[{"name":"Jeff Howard","role":"President and Chief Executive Officer"}],"products":["Mercury"],"companies":[{"name":"Atlanticus Holdings Corporation","ticker":"ATLC"}],"dollarAmounts":[{"amount":"$679.5 million","context":"Total operating revenue and other income Q1 2026"},{"amount":"$41.9 million","context":"Net income attributable to common shareholders"},{"amount":"$2.23","context":"Earnings per diluted share"},{"amount":"$6.7 billion","context":"Managed receivables"},{"amount":"$224.4 million","context":"Revenue contribution from Mercury acquisition"}]},"materialImpact":{"score":4,"reasoning":"Strong double-digit growth in net income (49.8% YoY) and total operating revenue (97.0% YoY), largely driven by the Mercury acquisition integration which is ahead of plan. EPS increased to $2.23 from $1.49, and the company reported a release of reserves associated with Mercury."},"tickerRelevance":{"others":[],"primary":"ATLC"},"globalImportance":25,"audienceRelevance":20,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"earnings beat / strong growth","sectorWeight":"financials"}},"event_type":"earnings","event_type_secondary":null,"sentiment":"bullish","material_impact_score":4,"narrative":"Atlanticus reported strong Q1 2026 results with total operating revenue soaring 97% year-over-year to $679.5 million, driven by the Mercury acquisition and organic growth.\n\nNet income attributable to common shareholders increased 49.8% to $41.9 million, or $2.23 per diluted share, supported by a robust return on equity of 26.8%.\n\nManaged receivables grew 148.5% to $6.7 billion, while management noted the integration of Mercury is well ahead of plan with better-than-modeled credit performance.","key_figures":{"eps":2.23,"revenue":"$679.5 million","revenueYoy":"97.0%","customDimensions":{"net_income":41867000,"return_on_equity":"26.8%","managed_receivables":6700000000}},"named_entities":{"people":[{"name":"Jeff Howard","role":"President and Chief Executive Officer"}],"products":["Mercury"],"companies":[{"name":"Atlanticus Holdings Corporation","ticker":"ATLC"}],"dollarAmounts":[{"amount":"$679.5 million","context":"Total operating revenue and other income Q1 2026"},{"amount":"$41.9 million","context":"Net income attributable to common shareholders"},{"amount":"$2.23","context":"Earnings per diluted share"},{"amount":"$6.7 billion","context":"Managed receivables"},{"amount":"$224.4 million","context":"Revenue contribution from Mercury acquisition"}]},"model_name":"glm-4.7","prompt_hash":"sha256:6c7fa2f5e3b62e83","schema_hash":"sha256:ee8f711bc9bfba0d","created_at":"2026-05-08T04:52:15.932Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"small-cap","eventGravity":"earnings beat / strong growth","sectorWeight":"financials"}},"durationMs":null,"modelName":"glm-4.7"}}