Atlanticus (ATLC) investor relations material

Executive summary

• Achieved record net income attributable to common shareholders of $47.4 million, up 67.2% year-over-year, or $2.50 per diluted share, with total operating revenue reaching $744.3 million, an 89% increase, driven by both legacy and Mercury portfolios.

• Managed receivables grew 126.2% year-over-year to $6.9 billion, with significant contribution from the Mercury acquisition.

• Added over 790,000 new customers in the quarter, with total accounts served exceeding 6.3 million.

• Return on average equity was 28.1%, exceeding capital return targets.

• Mercury acquisition integration is ahead of plan, contributing to improved credit metrics and operational scale.

Financial highlights

• Net income attributable to common shareholders was $47.4 million for Q2 2026, up from $28.4 million in Q2 2025.

• Total operating revenue reached $744.3 million, an 89% increase from prior year, driven by Mercury and legacy growth.

• Managed receivables ended at $6.9 billion, up 126% year-over-year and 2.5% sequentially.

• Interest expense increased to $123.4 million from $54 million, mainly due to Mercury-related debt and growth financing.

• Total operating expenses rose to $157.6 million, up from $82.2 million, reflecting scale and integration.

Outlook and guidance

• Expect continued but more modest quarterly growth in general purpose and retail receivables due to seasonal and portfolio changes.

• Earnings growth and ROE anticipated at or above long-term 20% targets.

• Anticipate ongoing increases in interest and operating expenses as receivables and debt financing expand.

• Product, policy, and pricing changes to the Mercury portfolio are expected to yield further revenue and fair value improvements over several quarters.

• Compound annual growth rates for total revenue, managed receivables, and accounts served were 31%, 27%, and 38%, respectively, over recent periods.