Atlanticus Reports Third Quarter 2025 Financial Results
Atlanticus (NASDAQ: ATLC) reported third quarter 2025 results including a transformational acquisition and significant scale expansion. Key highlights: completed acquisition of Mercury Financial for approximately $166.5 million adding $3.16 billion in credit card receivables and 1.3 million accounts; managed receivables rose 148.7% to $6.6 billion; total operating revenue increased 41.1% to $495.3 million. Net income attributable to common shareholders was $22.7 million (down 2.4%), while adjusted net income was $27.9 million (up 20%). Interest expense and operating expenses increased materially, reflecting higher debt and growth-related costs. Company reported record purchase volume of $1,192.1 million and served over 5.7 million consumers.
Atlanticus (NASDAQ: ATLC) ha riportato i risultati del Terzo Trimestre 2025, includendo un'acquisizione trasformazionale e una significativa espansione della scala. Punti chiave: completata l'acquisizione di Mercury Financial per circa $166.5 milioni aggiungendo $3.16 miliardi di crediti su carte di credito e 1,3 milioni di conti; crediti gestiti sono aumentati del 148,7% a $6.6 miliardi; ricavi operativi totali sono aumentati del 41,1% a $495.3 milioni. L'utile netto attribuibile agli azionisti ordinari è stato di $22.7 milioni (in calo del 2,4%), mentre l'utile netto rettificato è stato di $27.9 milioni (in aumento del 20%). Le spese per interessi e le spese operative sono aumentate in maniera sostanziale, riflettendo maggiore indebitamento e costi legati alla crescita. L'azienda ha riportato un volume record di acquisti di $1,192.1 milioni e ha servito oltre 5,7 milioni di consumatori.
Atlanticus (NASDAQ: ATLC) informó resultados del tercer trimestre de 2025, incluyendo una adquisición transformadora y una expansión significativa de la escala. Puntos clave: se completó la adquisición de Mercury Financial por aproximadamente $166.5 millones añadiendo $3.16 mil millones en cuentas por cobrar de tarjetas de crédito y 1.3 millones de cuentas; cuentas por cobrar administradas aumentaron un 148,7% a $6.6 mil millones; ingresos operativos totales subieron un 41,1% a $495.3 millones. El ingreso neto atribuible a los accionistas comunes fue de $22.7 millones (baja del 2,4%), mientras que el ingreso neto ajustado fue de $27.9 millones (un 20% más). Los gastos por intereses y los gastos operativos aumentaron de manera significativa, reflejando una mayor deuda y costos relacionados con el crecimiento. La compañía reportó un volumen de compras récord de $1,192.1 millones y atendió a más de 5.7 millones de consumidores.
Atlanticus (NASDAQ: ATLC)가 2025년 3분기 실적을 발표했습니다. 변혁적 인수와 규모 확대를 포함합니다. 주요 하이라이트: Mercury Financial를 약 $166.5 million에 인수하였고 신용카드 매출채권 $3.16 billion과 130만 건의 계정을 추가; 관리 중인 매출채권은 148.7% 상승하여 $6.6 billion; 총 영업수익은 41.1% 증가하여 $495.3 million이 되었습니다. 보통주주 귀속 순이익은 $22.7 million으로(전년 대비 -2.4%), 조정 순이익은 $27.9 million으로(20% 증가) 나타났습니다. 이자비용과 운영비용은 차입 증가와 성장 관련 비용을 반영하여 크게 증가했습니다. 회사는 기록적인 매입 거래 규모 $1,192.1 million를 보고했으며 570만 명이 넘는 고객을 서비스했습니다.
Atlanticus (NASDAQ: ATLC) a publié les résultats du troisième trimestre 2025, incluant une acquisition transformationnelle et une expansion de l'échelle significative. Points clés : réalisation de l'acquisition de Mercury Financial pour environ $166.5 millions ajoutant $3.16 milliards de créances de cartes de crédit et 1,3 million de comptes; comptes sous gestion ont augmenté de 148,7% pour atteindre $6.6 milliards; les revenus opérationnels totaux ont augmenté de 41,1% pour atteindre $495.3 millions. Le bénéfice net attribuable aux actionnaires ordinaires était de $22.7 millions (en baisse de 2,4%), tandis que le résultat net ajusté était de $27.9 millions (en hausse de 20%). Les charges d'intérêts et les dépenses d'exploitation ont augmenté de manière significative, en raison d'une dette plus élevée et de coûts liés à la croissance. La société a enregistré un volume d'achats record de $1,192.1 millions et a desservi plus de 5.7 millions de consommateurs.
Atlanticus (NASDAQ: ATLC) meldete die Ergebnisse des dritten Quartals 2025, einschließlich einer transformativen Akquisition und einer signifikanten Skalenerweiterung. Zentrale Highlights: Abschluss der Übernahme von Mercury Financial für ca. $166.5 million und Hinzufügung von $3.16 billion Kreditkartenforderungen sowie 1.3 Millionen Konten; verwaltete Forderungen stiegen um 148.7% auf $6.6 billion; insgesamt operativer Umsatz stieg um 41.1% auf $495.3 million. Der auf das Stammkapital entfallende Nettogewinn betrug $22.7 million (rückläufig um 2.4%), während der bereinigte Nettogewinn $27.9 million (um 20% gestiegen) war. Zinsaufwendungen und Betriebskosten stiegen deutlich, was auf höhere Schulden und wachstumsbezogene Kosten zurückzuführen ist. Das Unternehmen meldete ein Rekordvolumen an Käufen von $1,192.1 million und betreute über 5.7 millionen Verbraucher.
أتلانتكوس (ناسداك: ATLC) أبلغت عن نتائج الربع الثالث من عام 2025 بما في ذلك استحواذ تحويلي وتوسع كبير في الحجم. النقاط البارزة: إتمام استحواذ Mercury Financial مقابل حوالي $166.5 مليون مضيفة $3.16 مليار من receivables بطاقات الائتمان و 1.3 مليون حساب؛ المستحقات المعاد إدارتها ارتفعت بنسبة 148.7% إلى $6.6 مليار; إيرادات تشغيلية إجمالية زادت بنسبة 41.1% إلى $495.3 مليون. صافي الدخل العائد للمساهمين العاديين كان $22.7 مليون (بانخفاض 2.4%)، بينما كان صافي الدخل المعدل $27.9 مليون (ارتفاع 20%). زادت تكلفة الفوائد والنفقات التشغيلية بشكل ملحوظ، مما يعكس ديوناً أعلى وتكاليف مرتبطة بالنمو. الشركة أبلغت عن حجم شراء قياسي قدره $1,192.1 مليون وبلغ عدد المستهلكين الذين خدمهم أكثر من 5.7 مليون مستهلك.
- Managed receivables +148.7% to $6.6B
- Mercury acquisition added $3.16B receivables and 1.3M accounts
- Total operating revenue +41.1% to $495.3M
- Adjusted net income +20.0% to $27.9M
- Record purchase volume of $1,192.1M and > 5.7M consumers served
- Interest expense +77.6% to $75.5M
- Total operating expenses +71.8% year-over-year
- Net income attributable to common shareholders down 2.4% to $22.7M
Insights
Strong scale expansion via acquisition and organic growth, with near‑term cost and funding pressure but improved adjusted profitability.
Atlanticus materially increased scale by completing the Mercury acquisition for
The business model relies on acquiring and servicing receivables for bank and retail partners; scale drives revenue but requires matching funding. Interest expense and notes payable rose substantially (notes payable to
Watch integration execution, portfolio performance and funding cost trends over the next several quarters. Monitor: realization of stated product/policy/pricing changes on the Mercury portfolio, trends in changes in fair value of loans (quarterly
CONTINUED GROWTH AND TRANSFORMATIONAL ACQUISITION RESULT IN EXPANSION TO OVER 5.7 MILLION CONSUMERS(1) SERVED AND
ATLANTA, Nov. 10, 2025 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (Atlanticus, the Company, we, our or us), a financial technology company that enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of everyday Americans, today announced its financial results for the third quarter ended September 30, 2025. An accompanying earnings presentation is available in the Investors section of the Company’s website at www.atlanticus.com or by clicking here.
Financial and Operating Highlights
Third Quarter 2025 Highlights (all comparisons to the Third Quarter 2024)
- Completed acquisition of Mercury Financial LLC (“Mercury”) for approximately
$166.5 million in cash, adding$3.2 billion in credit card receivables and 1.3 million new accounts served - Managed receivables2 increased
148.7% to$6.6 billion - Total operating revenue and other income increased
41.1% to$495.3 million - Net income attributable to common shareholders of
$22.7 million , or$1.21 per diluted common share - Adjusted net income attributable to common shareholders of
$27.9 million 3, or$1.48 3 per Adjusted diluted common share - Return on average equity of
15.9% 4 and adjusted return on average equity of19.5% 3 - Record purchase volume of
$1,192.1 million - We serve over 5.7 million total accounts1, an increase of over 2.0 million from prior year
- A record 730,000 new customers served during the quarter, excluding customers added as part of our acquisition of Mercury
1) In our calculation of total accounts served, we include all accounts with account activity and accounts that have open lines of credit at the end of the referenced period.
2) Managed receivables is a non-GAAP financial measure and excludes the results of our Auto Finance receivables. See Calculation of Non-GAAP Financial Measures for important additional information.
3) Adjusted net income attributable to common shareholders, Adjusted diluted common share and Adjusted return on average equity, are non-GAAP financial measures. See Calculation of Non-GAAP Financial Measures for important additional information.
4) Return on average equity is calculated using Net income attributable to common shareholders as the numerator and the average of Total equity as of September 30, 2025 and June 30, 2025 as the denominator, annualized.
Management Commentary
Jeff Howard, President and Chief Executive Officer of Atlanticus stated, “This quarter, we produced significant organic growth and profitability, and completed a transformational acquisition. The acquisition of Mercury Financial substantially increases our scale, enhances our technology, adds to our origination capabilities, and brings on new team members to facilitate the continued growth of our business as we pursue our goal of Empowering Better Financial Outcomes for Everyday Americans.
“The integration of Mercury is ahead of plan, with portfolio management activities under way and a focus on expense reduction and maximizing efficiencies across the Company. We are excited about the value-creating opportunities of the acquired portfolio and operating platform and are well on our way to creating ONE Atlanticus, leveraging the scale and capabilities that come with managing over
“Excluding the acquisition, we saw meaningful growth and the continued achievement of profitability targets across our platform with an adjusted return on average equity of
“Subsequent to quarter end, we also acquired approximately
“This was a momentous quarter for our team and our shareholders as we continue to serve everyday Americans.“
| Financial Results | For the Three Months Ended September 30, | |||||||
| (Dollars in thousands, except per share data) | 2025 | 2024 | % Change | |||||
| Total operating revenue | ||||||||
| Other non-operating revenue | (616) | 270 | nm | |||||
| Total revenue | 494,676 | 351,224 | ||||||
| Interest expense | (75,464) | (42,492) | ||||||
| Provision for credit losses | (1,549) | (4,633) | nm | |||||
| Changes in fair value of loans | (276,851) | (203,739) | ||||||
| Net margin | ||||||||
| Total operating expenses | ( | ( | ||||||
| Net income | ( | |||||||
| Net income attributable to controlling interests | ( | |||||||
| Preferred stock and preferred unit dividends and discount accretion | (2,307) | (6,316) | nm | |||||
| Net income attributable to common shareholders | ( | |||||||
| Net income attributable to common shareholders per common share—basic | ( | |||||||
| Net income attributable to common shareholders per common share—diluted | ( | |||||||
| *nm = not meaningful | ||||||||
Managed Receivables
Managed receivables increased
Total Operating Revenue and Other Income
Total operating revenue and other income consists of: 1) interest income, finance charges and late fees on consumer loans, 2) other fees on credit products including annual and merchant fees and 3) interchange and servicing income on loan portfolios and other customer related fees.
We are currently experiencing continued period-over-period increases in private label credit and general purpose credit card receivables. Growth in these receivables includes general purpose credit card receivables associated with our acquisition of Mercury, which added
During the quarter ended September 30, 2025, total operating revenue and other income increased
Interest Expense
Interest expense was
Outstanding notes payable, net of unamortized debt issuance costs and discounts, associated with our private label credit and general purpose credit card platform increased to
Changes in Fair Value of Loans
Changes in fair value of loans increased to
We include asset performance degradation in our forecasts to reflect both changes in assumed asset level economics and the possibility of delinquency rates increasing in the near term (and the corresponding increase in charge-offs and decrease in payments) above the level that current trends would suggest. Based on observed asset stabilization, implementation of product, policy, and pricing changes and general improvements in U.S. economic expectations due to the improved inflation environment, some expected degradation has been removed in recent periods. Tightened underwriting standards have resulted in improved overall credit performance of our acquired receivables. When coupled with those existing assets negatively impacted by inflation gradually becoming a smaller percentage of the outstanding portfolio, we expect to see overall improvements in the measured fair value of our portfolios of acquired receivables.
Total Operating Expenses
Total operating expenses increased
We expect some continued increase in salaries and benefits in 2025 compared to corresponding periods in 2024 resulting from the acquisition of Mercury and its associated employee base.
As many of our expenses associated with our card and loan servicing efforts are now variable based on the amount of underlying receivables, we would expect certain expenses to continue to grow in 2025 and 2026 commensurate with growth in our receivables balances. These expenses will primarily relate to the variable costs of marketing efforts and card and loan servicing expenses associated with new receivable acquisitions.
In addition, as we continue to adjust our underwriting standards to reflect changes in fee and finance assumptions on new receivables, and allow for overall increases in the cost to successfully market to consumers, we expect period over period marketing costs for 2025 and into 2026 to increase relative to those experienced in 2024, although the frequency and timing of increased marketing efforts could vary and are dependent on macroeconomic factors such as national unemployment rates and federal funds rates.
Net Income Attributable to Common Shareholders
Net income attributable to common shareholders decreased
Share Repurchases
We repurchased and retired 427 shares of our common stock in the quarter ended September 30, 2025.
About Atlanticus Holdings Corporation
Empowering Better Financial Outcomes for Everyday Americans
Atlanticus™ technology enables bank, retail, and healthcare partners to offer more inclusive financial services to everyday Americans through the use of proprietary technology and analytics. We apply the experience gained and infrastructure built from servicing over 20 million customers and
Forward-Looking Statements
This press release contains forward-looking statements that reflect the Company's current views with respect to, among other things, the benefits of the acquisition of Mercury, included expected synergies and future financial and operating results; the Company’s plans, objectives, expectations and intentions for Mercury, including the product, policy and pricing changes to the acquired portfolio, and the results therefrom; client acquisitions from PROG Holdings; its business; long-term growth plans and opportunities; operations; return on capital; financial performance; revenue and other income; amount and pace of growth of managed receivables; mix of receivables; underwriting approach; total interest income and related fees and charges; debt financing; liquidity; interest rates; interest expense; operating expense; marketing efforts and fair value of receivables. You generally can identify these statements by the use of words such as outlook, potential, continue, may, seek, approximately, predict, believe, expect, plan, intend, estimate or anticipate and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as will, should, would, likely and could. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in the Company's filings with the Securities and Exchange Commission and include, but are not limited to, bank partners, merchant partners, consumers, loan demand, the capital markets, labor availability, supply chains and the economy in general; the Company's ability to retain existing, and attract new, merchant partners and funding sources; changes in market interest rates; increases in loan delinquencies; its ability to operate successfully in a highly regulated industry; the outcome of litigation and regulatory matters; the effect of management changes; cyberattacks and security vulnerabilities in its products and services; and the Company's ability to compete successfully in highly competitive markets. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.
Contact:
Investor Relations
investors@atlanticus.com
Dan Mauch, dan.mauch@atlanticus.com
Sara Savarino, sara.savarino@atlanticus.com
| Atlanticus Holdings Corporation and Subsidiaries | ||||||||
| Consolidated Balance Sheets (Unaudited) | ||||||||
| (Dollars in thousands) | ||||||||
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Unrestricted cash and cash equivalents (including | ||||||||
| Restricted cash and cash equivalents (including | 100,914 | 124,220 | ||||||
| Loans at fair value (including | 6,350,009 | 2,630,274 | ||||||
| Loans at amortized cost, net (including | 85,004 | 84,332 | ||||||
| Property at cost, net of depreciation | 13,458 | 10,519 | ||||||
| Intangible assets | 31,889 | – | ||||||
| Operating lease right-of-use assets | 15,564 | 13,878 | ||||||
| Prepaid expenses and other assets | 57,871 | 32,068 | ||||||
| Total assets | ||||||||
| Liabilities | ||||||||
| Accounts payable and accrued expenses | ||||||||
| Operating lease liabilities | 25,924 | 24,188 | ||||||
| Notes payable, net (including | 5,332,680 | 2,199,448 | ||||||
| Senior notes, net | 702,376 | 281,552 | ||||||
| Income tax liability | 140,862 | 114,068 | ||||||
| Total liabilities | 6,454,923 | 2,691,344 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock, no par value, 10,000,000 shares authorized: | ||||||||
| Series A preferred stock, 400,000 shares issued and outstanding (liquidation preference - | 40,000 | 40,000 | ||||||
| Class B preferred units issued to noncontrolling interests | – | 50,000 | ||||||
| Shareholders' Equity | ||||||||
| Series B preferred stock, no par value, 3,563,762 shares issued and outstanding at September 30, 2025 (liquidation preference - | – | – | ||||||
| Common stock, no par value, 150,000,000 shares authorized: 15,127,014 and 14,904,192 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | – | – | ||||||
| Paid-in capital | 115,749 | 98,278 | ||||||
| Retained earnings | 473,595 | 394,628 | ||||||
| Total shareholders’ equity attributable to Atlanticus Holdings Corporation | 589,344 | 492,906 | ||||||
| Noncontrolling interests | (4,535) | (3,543) | ||||||
| Total equity | 584,809 | 489,363 | ||||||
| Total liabilities, shareholders' equity and temporary equity | ||||||||
| (1) Both the Series A preferred stock and the Series B preferred stock have no par value and are part of the same aggregate 10,000,000 shares authorized. | ||||||||
| Atlanticus Holdings Corporation and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Income (Unaudited) | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue and other income: | ||||||||||||||||
| Consumer loans, including past due fees | ||||||||||||||||
| Fees and related income on earning assets | 123,575 | 78,572 | 296,201 | 185,983 | ||||||||||||
| Other revenue | 30,554 | 16,993 | 72,616 | 42,674 | ||||||||||||
| Total operating revenue and other income | 495,292 | 350,954 | 1,233,985 | 956,769 | ||||||||||||
| Other non-operating (loss) income | (616) | 270 | 20 | 1,184 | ||||||||||||
| Total revenue and other income | 494,676 | 351,224 | 1,234,005 | 957,953 | ||||||||||||
| Interest expense | (75,464) | (42,492) | (176,678) | (115,503) | ||||||||||||
| Provision for credit losses | (1,549) | (4,633) | (3,999) | (9,323) | ||||||||||||
| Changes in fair value of loans | (276,851) | (203,739) | (671,973) | (549,161) | ||||||||||||
| Net margin | 140,812 | 100,360 | 381,355 | 283,966 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Salaries and benefits | (18,196) | (12,299) | (47,080) | (37,584) | ||||||||||||
| Card and loan servicing | (39,024) | (28,069) | (105,261) | (82,589) | ||||||||||||
| Marketing and solicitation | (35,301) | (14,848) | (80,584) | (38,848) | ||||||||||||
| Depreciation and amortization | (1,491) | (656) | (3,173) | (1,963) | ||||||||||||
| Other | (14,321) | (7,202) | (31,764) | (24,272) | ||||||||||||
| Total operating expenses | (108,333) | (63,074) | (267,862) | (185,256) | ||||||||||||
| Income before income taxes | 32,479 | 37,286 | 113,493 | 98,710 | ||||||||||||
| Income tax expense | (7,891) | (8,097) | (27,493) | (19,575) | ||||||||||||
| Net income | 24,588 | 29,189 | 86,000 | 79,135 | ||||||||||||
| Net loss attributable to noncontrolling interests | 389 | 354 | 1,070 | 858 | ||||||||||||
| Net income attributable to controlling interests | 24,977 | 29,543 | 87,070 | 79,993 | ||||||||||||
| Preferred stock and preferred unit dividends and discount accretion | (2,307) | (6,316) | (8,103) | (18,916) | ||||||||||||
| Net income attributable to common shareholders | ||||||||||||||||
| Net income attributable to common shareholders per common share—basic | ||||||||||||||||
| Net income attributable to common shareholders per common share—diluted | ||||||||||||||||
Additional Information
Additional trends and data with respect to our private label credit and general purpose credit card receivables can be found in our latest Form 10-Q filed with the Securities and Exchange Commission under Management's Discussion and Analysis of Financial Condition and Results of Operations.
Calculation of Non-GAAP Financial Measures
This press release presents information about managed receivables, which is a non-GAAP financial measure provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (GAAP). In addition to financial measures presented in accordance with GAAP, we present managed receivables, total managed yield, combined principal net charge-offs, fair value to total managed receivables ratio, adjusted net income attributable to common shareholders, adjusted diluted common share and adjusted return on average equity, all of which are non-GAAP financial measures. These non-GAAP financial measures aid in the evaluation of the performance of our credit portfolios, including our risk management, servicing and collection activities and our valuation of purchased receivables. The credit performance of our managed receivables provides information concerning the quality of loan originations and the related credit risks inherent with the portfolios. Management relies heavily upon financial data and results prepared on the managed basis in order to manage our business, make planning decisions, evaluate our performance and allocate resources.
Adjusted net income attributable to common shareholders, adjusted common share and adjusted return on average equity provide the value of these measures after adjusting for the financial impact of the Mercury acquisition.
These non-GAAP financial measures are presented for supplemental informational purposes only. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation from, or as a substitute for, GAAP financial measures. These non-GAAP financial measures may differ from the non-GAAP financial measures used by other companies. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures or the calculation of the non-GAAP financial measures are provided below for each of the fiscal periods indicated.
Additionally, we calculate average managed receivables based on the quarter-end balances.
The comparison of non-GAAP managed receivables to our GAAP financial statements requires an understanding that managed receivables reflect the face value of loans, interest and fees receivable without any consideration for potential loan losses or other adjustments to reflect fair value.
A reconciliation of Loans at fair value to Total managed receivables is as follows:
| At or for the Three Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||
| (in Millions) | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | |||||||||||||||||
| Loans at fair value | |||||||||||||||||||||||||
| Fair value mark against receivable (1) | 250.1 | 41.8 | 37.8 | 94.5 | 142.5 | 137.7 | 167.5 | 237.5 | |||||||||||||||||
| Total managed receivables (2) | |||||||||||||||||||||||||
| Fair value to Total managed receivables ratio (3) | |||||||||||||||||||||||||
| (1) The fair value mark against receivables reflects the difference between the face value of a receivable and the net present value of the expected cash flows associated with that receivable. | |||||||||||||||||||||||||
| (2) Total managed receivables are equal to the aggregate unpaid gross balance of loans at fair value. | |||||||||||||||||||||||||
| (3) The Fair value to Total managed receivables ratio is calculated using Loans at fair value as the numerator, and Total managed receivables, as the denominator. | |||||||||||||||||||||||||
A reconciliation of our Total operating revenue and other income - CaaS Segment, to comparable amounts used in our calculation of Total managed yield is as follows:
| At or for the Three Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||
| (in Millions) | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | |||||||||||||||||
| Consumer loans, including past due fees | |||||||||||||||||||||||||
| Fees and related income on earning assets | 122.5 | 94.3 | 78.3 | 83.8 | 78.5 | 59.5 | 47.9 | 71.7 | |||||||||||||||||
| Other revenue | 30.4 | 23.0 | 18.7 | 17.5 | 16.8 | 13.6 | 11.7 | 12.0 | |||||||||||||||||
| Total operating revenue and other income - CaaS Segment | 484.6 | 384.5 | 335.5 | 343.4 | 340.6 | 305.2 | 279.6 | 298.3 | |||||||||||||||||
| Adjustments due to acceleration of merchant fee discount amortization under fair value accounting | (16.0) | (26.6) | 0.1 | 0.7 | (15.1) | (12.6) | 4.0 | 6.5 | |||||||||||||||||
| Adjustments due to acceleration of annual fees recognition under fair value accounting | (24.4) | (8.8) | (4.2) | (10.5) | (8.0) | 1.1 | 10.1 | (12.6) | |||||||||||||||||
| Removal of finance charge-offs | (78.8) | (68.2) | (70.0) | (64.9) | (60.6) | (62.9) | (63.7) | (59.5) | |||||||||||||||||
| Total managed yield | |||||||||||||||||||||||||
The calculation of Combined principal net charge-offs is as follows:
| At or for the Three Months Ended | |||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||
| (in Millions) | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | Dec. 31 | |||||||||||||||||
| Charge-offs on loans at fair value | |||||||||||||||||||||||||
| Finance charge-offs (1) | (78.8) | (68.2) | (70.0) | (64.9) | (60.6) | (62.9) | (63.7) | (59.5) | |||||||||||||||||
| Combined principal net charge-offs | |||||||||||||||||||||||||
| (1) Finance charge-offs are included as a component of our Changes in fair value of loans in the condensed consolidated statements of income. | |||||||||||||||||||||||||
A reconciliation of our Net income attributable to common shareholders to Adjusted net income attributable to common shareholders and Net income attributable to common shareholders per common share—basic and Net income attributable to common shareholders per common share—diluted to Adjusted net income attributable to common shareholders per common share—basic and Adjusted net income attributable to common shareholders per common share—diluted, is as follows:
| (in Millions, except per share data) | Net income attributable to common shareholders | Earnings per common share | |||||||
| Net income attributable to common shareholders | $ | 22,670 | $ | 1.50 | |||||
| Adjustment for transaction expenses | 2,531 | ||||||||
| Adjustment for severance costs | 4,330 | ||||||||
| Income tax expense on adjustments | (1,647 | ) | |||||||
| Total transaction related expenses, net of tax | 5,214 | 0.34 | |||||||
| Adjusted net income attributable to common shareholders | $ | 27,884 | |||||||
| Adjusted net income attributable to common shareholders per common share—basic | $ | 1.84 | |||||||
| Adjusted net income attributable to common shareholders per common share—diluted | $ | 1.48 | |||||||
Return on average equity is calculated using Net income attributable to common shareholders as the numerator and the average of Total equity as of September 30, 2025 and June 30, 2025 as the denominator, annualized. A reconciliation of our Return on average equity to Adjusted return on average equity, is as follows:
| Return on average equity | ||
| Transaction related expenses, net of tax (above) | ||
| Adjusted return on average equity | ||
FAQ
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