Atlanticus Reports Third Quarter 2026 Financial Results

The Auto Finance sale included approximately $56.2 million in cash and a $15.0 million seller note.

Rhea-AI Summary

Atlanticus Holdings (NASDAQ: ATLC) reported third-quarter 2026 diluted earnings of $4.87 per common share, including gains from two completed sales. Net income attributable to common shareholders rose 310.4% year over year to $93.0 million. Adjusted net income, a non-GAAP measure, was $57.0 million, or $3.00 per diluted common share. Total operating revenue and other income increased 60.1% to $775.9 million, while managed receivables rose 8.0% to $7.1 billion.

Atlanticus sold its Auto Finance business on September 16 for approximately $71.2 million, generating a $20.1 million pre-tax gain. The September 30 sale of the MERCURY word mark generated a $27.5 million gain; the underlying card receivables remain with Atlanticus. Interest expense increased 57.3% to $118.0 million, and operating expenses rose 57.7% to $161.9 million. The company expects further borrowing and higher quarterly interest expense throughout 2026.

15 points · 0 major

MixediHow this balance works

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2 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointCommon-shareholder net income rose 310.4% year over year to $93.0 million; diluted EPS increased 302.5% to $4.87.
• Moderate pointOperating revenue and other income increased 60.1% year over year to $775.9 million.
• Moderate pointNet margin increased 80.0% year over year to $238.1 million.
• Moderate pointManaged receivables increased 8.0% year over year to $7.1 billion.
• Moderate pointPurchase volume increased 48.5% year over year to $1,770.7 million.
• Moderate pointAccounts served increased 18.1% year over year to 6.7 million.
• Moderate pointAuto Finance sale completed for approximately $71.2 million, generating a $20.1 million pre-tax gain. 4.9% of market cap
• Moderate pointMERCURY word mark sale generated a $27.5 million gain; Atlanticus retained the underlying card receivables. 1.9% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.General purpose card receivables are expected to grow quarterly throughout 2026, outpacing private label growth.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Mercury product, policy and pricing changes are expected to add revenue during the remainder of 2026 and beyond.

5 minor points

• Minor pointAdjusted common-shareholder net income was $57.0 million, or $3.00 per diluted share, excluding one-time transactions.
• Minor pointReturn on average equity was 49.2%; adjusted return on average equity was 30.1%.
• Minor pointMercury acquisition contributed $205.3 million of year-over-year growth in operating revenue and other income.
• Minor pointMercury acquisition adjustments generated an $8.0 million gain from reduced contingent consideration and other purchase-price adjustments.
• Minor point. Forward-looking: it has not happened yet and may not happen.Private label receivables are expected to increase modestly in 2026 despite slower limited-loss-exposure acquisition volumes.

Negative

• Major pointSenior Notes issued added $400.0 million aggregate principal at 9.750%, due 2030. 27% of market cap
• Major pointLoan fair-value losses increased 51.1% year over year to $418.3 million, largely reflecting charge-offs on a larger receivable base.
• Moderate pointInterest expense increased 57.3% year over year to $118.0 million.
• Moderate pointCard-platform notes payable, net rose to $5,747.1 million from $5,297.3 million at September 30, 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Additional debt financing is anticipated; Atlanticus expects quarterly interest expense to increase versus prior periods throughout 2026.
• Moderate pointOperating expenses increased 57.7% year over year to $161.9 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 salaries, servicing and marketing costs are expected to rise with Mercury integration and planned receivables growth.

4 minor points

• Minor pointCredit-loss provision increased to $1.466 million from $0.555 million in the third quarter of 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Mercury portfolio changes will take several quarters to be fully realized in certain cases.
• Minor pointMERCURY solicitation license lasts 12 months after the sale; servicing use extends for up to five additional years.
• Minor pointCash and cash equivalents declined to $600.5 million from $618.6 million at December 31, 2025.

News Explained

The mark sale left Atlanticus with time-limited brand-use rights, while the higher reported common-share count reduces existing holders’ ownership percentage absent offsets.

When Atlanticus completed the MERCURY mark sale, it retained a non-exclusive, royalty-free right to solicit new card consumers using the mark for 12 months and to use it for servicing for up to five additional years.

The balance sheet lists common shares issued and outstanding of 14,922,462 at December 31, 2025 and 15,315,071 at September 30, 2026; dilution means additional shares reduce existing holders’ percentage ownership absent offsetting changes.

Key Figures

Net income attributable to common shareholders: $93.0 million; increase of 310.4% Diluted EPS: $4.87 per diluted common share Adjusted diluted EPS: $3.00 per diluted common share +5 more

Net income attributable to common shareholders

$93.0 million; increase of 310.4%

Third quarter 2026 versus third quarter 2025

Diluted EPS

$4.87 per diluted common share

Third quarter 2026

Adjusted diluted EPS

$3.00 per diluted common share

Third quarter 2026

Total operating revenue and other income

$775.9 million; increase of 60.1%

Third quarter 2026 versus third quarter 2025

Managed receivables

$7.1 billion; increase of 8.0%

Third quarter 2026 versus third quarter 2025

Adjusted return on average equity

30.1%

Third quarter 2026

Gain on sale of MERCURY word mark

$27.5 million

Third quarter 2026

Pre-tax gain on Auto Finance business sale

$20.1 million

Sale completed September 16, 2026

Previous Earnings Reports

3 past events · Latest: Aug 06

Same Type 3 events

1. Aug 06

   2Q26 earnings

   24h Move

   -10.5%

   Reported higher net income, revenue, managed receivables and diluted EPS, with Mercury contributing to growth.

2. May 07

   1Q26 earnings

   24h Move

   +8.3%

   Reported revenue and managed receivables growth, with net income attributable to common shareholders.

3. Mar 12

   4Q25 earnings

   24h Move

   -9.1%

   Reported revenue and managed receivables growth alongside higher interest and integration-related expenses.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap financial measures, discontinued operations, seller note, charge-offs, +1 more

5 terms

non-gaap financial measures financial

"Adjusted net income attributable to common shareholders ... are non-GAAP financial measures."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

discontinued operations financial

"Net income from discontinued operations"

Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.

seller note financial

"a $15.0 million seller note"

A seller note is a type of loan or financial promise made by the person selling a business or asset to the buyer, often used to help bridge a gap in funding. It acts like the seller lending money to the buyer, with the agreement that the buyer will pay it back over time. For investors, seller notes can influence the overall risk and potential returns of a deal, as they represent an additional layer of financial commitment and potential repayment.

charge-offs financial

"increased losses from changes in the fair value of loans due to charge-offs"

Charge-offs occur when a lender decides a loan or debt is unlikely to be repaid and removes it from its active assets, treating the amount as a loss on its books while the borrower may still legally owe the money. For investors, rising charge-offs are like seeing more bad checks in a household budget: they signal worsening credit quality, reduce a lender’s profits and capital cushions, and can foreshadow tighter lending and higher loan-loss provisions.

fair value financial

"Changes in fair value of loans increased to $(418.3) million"

Fair value is an estimate of what an asset or company is really worth today, derived from expected future earnings, comparable market prices and other relevant facts—like agreeing a price for a used car after checking mileage, condition and similar listings. Investors use fair value to decide whether a stock looks overpriced or undervalued, which helps guide buy, hold or sell decisions and sets expectations for potential returns and risk.

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Third Quarter Earnings of $4.87 Per Diluted Common Share Resulting from Continued Strong Asset-Level Performance Coupled with Sale of Auto Finance Business and Mercury Word Mark

ATLANTA, Nov. 05, 2026 (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, 2026. 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 2026 Highlights (all comparisons to the Third Quarter 2025, unless otherwise indicated)

• Net income attributable to common shareholders of $93.0 million, an increase of 310.4%, or $4.87 per diluted common share
• Adjusted net income attributable to common shareholders of $57.0 million, or $3.00 per diluted common share¹
• Total operating revenue and other income increased 60.1% to $775.9 million
• Managed receivables² of $7.1 billion, an increase of 8.0%
• Return on average equity of 49.2%³ and Adjusted return on average equity of 30.1%¹
• Purchase volume of $1,770.7 million, an increase of 48.5%
• Total accounts served of 6.7 million⁴
  

^{1) Adjusted net income attributable to common shareholders, Adjusted net income attributable to common shareholders per common share (basic and diluted) and Adjusted return on average equity are non-GAAP financial measures. See Calculation of Non-GAAP Financial Measures for important additional information.
2) Managed receivables is a non-GAAP financial measure. See Calculation of Non-GAAP Financial Measures for important additional information.
3) Return on average equity is calculated using Net income attributable to common shareholders as the numerator and the average of Total shareholders’ equity attributable to Atlanticus Holdings Corporation as of September 30, 2026 and June 30, 2026 as the denominator, annualized.
4) 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.}

Management Commentary

Jeff Howard, President and Chief Executive Officer, stated, “We are pleased to report another record-setting quarter, with records for earnings, revenue, number of new customers served, managed receivables and purchase and payment activity. These milestones are a direct result of our team’s focus on executing our strategy and continually striving to fulfill our purpose of Empowering Better Financial Outcomes for Everyday Americans.

For the quarter, we earned $4.87 per diluted common share, or $3.00 per diluted common share, when adjusting for one-time transactions. We continue to see attractive returns across our platform as we invest in additional marketing opportunities, deepen retail partner relationships, and continue to realize the benefits of our ongoing integration of the Mercury acquisition last year.”

Mr. Howard continued, “We also, once again, exceeded our return on capital target of 20%. On an adjusted basis, our return on average equity for the quarter was 30.1%. This was driven by our dedicated focus on unit-level profitability, the growing contribution of the Mercury acquisition, and continued resilience of the customers we serve.”

Financial Results		For the Three Months Ended September 30,
(Dollars in thousands, except per share data)			2026				2025			% Change
Total operating revenue and other income		$775,934				$484,646				60.1%
Other non-operating income			(85)				7			nm
Total revenue and other income			775,849				484,653			60.1%
Interest expense			(118,018)				(75,007)			57.3%
Provision for credit losses			(1,466)				(555)			nm
Changes in fair value of loans			(418,308)				(276,851)			51.1%
Net margin		$238,057				$132,240				80.0%
Gain on sale of word mark			27,500				–			∞
Total operating expenses		($161,892)				($102,665)				57.7%
Net income from continuing operations		$78,420				$22,503				248.5%
Net income from discontinued operations			17,006				2,085			nm
Net income		$95,426				$24,588				288.1%
Net income attributable to controlling interests		$95,350				$24,977				281.8%
Preferred stock and preferred unit dividends and discount accretion			(2,323)				(2,307)			nm
Net income attributable to common shareholders		$93,027				$22,670				310.4%
Net income attributable to common shareholders per common share—basic		$6.11				$1.50				307.3%
Net income attributable to common shareholders per common share—diluted		$4.87				$1.21				302.5%
*nm = not meaningful

Managed Receivables

Managed receivables increased 8.0% to $7.1 billion. Managed receivables grew by over $528 million from September 30, 2025, driven by growth in both general purpose credit card and private label credit products offered by our bank partners. Total accounts served increased 18.1% to 6.7 million. The increased purchases of receivables arising in accounts issued by our bank partners to customers of our existing retail partners helped grow our private label credit receivables by $261.5 million in the twelve months ended September 30, 2026. Our general purpose credit card receivables grew by $266.7 million during the twelve months ended September 30, 2026. We currently expect continued period-over-period quarterly growth in our general purpose credit card receivables.

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 revenues associated with 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, which accounted for $3.1 billion in receivables as of September 30, 2026. Growth in our general purpose credit card receivables is expected to continue throughout 2026 and to outpace growth in our private label credit receivables as we continue to expand our marketing efforts. We currently expect our private label credit receivable balance to modestly increase in 2026 as volumes of receivables acquisitions for which we have limited loss exposure due to agreements with retail partners are expected to slow, offsetting general growth from other retail partners. 

During the quarter ended September 30, 2026, total operating revenue and other income increased 60.1% to $775.9 million. This increase was primarily due to our acquisition of Mercury, which contributed $205.3 million of growth in Total operating revenue and other income when compared to the third quarter of 2025. Adding to this was quarterly growth in both new credit card and private label customers serviced, the total active accounts of which increased 847 thousand as of September 30, 2026 compared to September 30, 2025. As part of our acquisition of Mercury, we continue to enact a number of product, policy and pricing changes on the acquired portfolio of general purpose credit card receivables. These changes are expected to result in meaningful additions to our Total operating revenue and other income for the remainder of 2026 and beyond, although certain of the changes will take several quarters to be fully realized.

Interest Expense

Interest expense was $118.0 million for the quarter ended September 30, 2026, compared to $75.0 million for the quarter ended September 30, 2025. The higher expenses were primarily driven by increases in outstanding debt, in proportion to growth in our receivables, coupled with increases in the cost of borrowing.

Outstanding notes payable, net of unamortized debt issuance costs and discounts, associated with our private label credit and general purpose credit card platform (including those associated with the Mercury acquisition) increased to $5,747.1 million as of September 30, 2026, from $5,297.3 million as of September 30, 2025. Interest expense increased $43.0 million for the quarter ended September 30, 2026, when compared to the quarter ended September 30, 2025. The majority of this increase in interest expense relates to the addition of Mercury and its associated debt, growth in multiple credit facilities associated with expansion of our card and loan receivables, and the issuance of $400.0 million aggregate principal amount of 9.750% Senior Notes due 2030. We anticipate additional debt financing as we continue to grow our receivables. As such, and when coupled with the interest expense associated with the acquired Mercury debt facilities, we expect our quarterly interest expense to increase compared to prior periods throughout 2026.  

Changes in Fair Value of Loans

Changes in fair value of loans increased to $(418.3) million for the quarter ended September 30, 2026 compared to $(276.9) million for the quarter ended September 30, 2025. This increase was largely driven by increased losses from changes in the fair value of loans due to charge-offs (net of recoveries) associated with a larger receivable base. These charge-offs were offset somewhat by favorable assumption changes which were largely due to improvements in customers served and continued favorable performance of our acquired Mercury portfolio. Additionally offsetting these losses was an $8.0 million gain related to a reduction in the fair value of contingent consideration and other purchase price adjustments associated with our acquisition of Mercury. Receivables acquired as part of our acquisition of Mercury were initially valued at a lower fair value than our existing portfolio of credit card receivables (as a percentage of the gross outstanding receivable). We have been enacting a number of product, policy and pricing changes on the Mercury portfolio of general purpose credit card receivables. As these changes are implemented, we have seen, and expect to continue to see, improvement in the fair value of these receivables.

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.

Total Operating Expenses

Total operating expenses increased 57.7% in the quarter when compared to the same period in 2025, driven primarily, in all expense categories, by our acquisition of Mercury. Additional increases were noted due to increased marketing and solicitation costs associated with assisting our bank partners in acquiring new customers and variable servicing costs associated with growth in our receivables. We also experienced growth in the number of employees and related compensation expenses. Certain other expenditures related to occupancy and other third-party expenses, which are largely fixed in nature, also contributed to the increase for the quarter as compared to the third quarter of 2025.

We expect some continued increase in year-over-year salaries and benefits in 2026 compared to corresponding periods in 2025 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 2026 commensurate with planned growth in our receivables balances. These expenses will primarily relate to the variable costs of 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 2026 to increase relative to those experienced in 2025. The frequency and timing of increased marketing efforts could vary and are dependent on macroeconomic factors, response rates and approval rates.

Net Income Attributable to Common Shareholders

Net income attributable to common shareholders increased 310.4% to $93.0 million, or $4.87 per diluted share for the quarter ended September 30, 2026. Results for the quarter include net income from discontinued operations of $17.0 million, or $0.88 per diluted share (inclusive of a $20.1 million pre-tax gain on the sale of our Auto Finance business), as well as a $27.5 million gain associated with the sale of the MERCURY word mark.

Sale of Auto Finance Business and MERCURY Word Mark

On September 16, 2026, we completed the sale of CARS Acquisition, LLC (“CAR”) and its subsidiaries, which comprised 100% of our former Auto Finance segment, for total consideration of approximately $71.2 million, consisting of approximately $56.2 million in cash and a $15.0 million seller note. We recognized a pre-tax gain on the sale of $20.1 million. Accordingly, the historical results of CAR are presented as discontinued operations and have been excluded from continuing operations for all periods presented.

On September 30, 2026, we completed a sale and assignment of the MERCURY word mark and certain related intellectual property rights for $27.5 million, which is included in Gain on sale of word mark. The transaction did not include the underlying consumer credit card receivables associated with the Mercury-branded program, which remain with the Company. As part of the transaction, we received a non-exclusive, royalty-free license to, on behalf of our bank partner, solicit new credit card consumers using the MERCURY mark for a period of 12 months following the sale and to continue using the mark for servicing purposes for up to five additional years.

About Atlanticus Holdings Corporation

Empowering Better Financial Outcomes for Everyday Americans

Atlanticus Holdings Corporation empowers better financial outcomes for Everyday Americans by enabling bank, retail, and healthcare partners to offer more inclusive financial solutions to consumers. Leveraging proprietary technology and advanced analytics, Atlanticus applies more than 30 years of operating experience, servicing over 23 million customers and more than $55 billion in consumer loans, to support lenders across a broad range of consumer credit products. These offerings span retail and healthcare private-label credit and general purpose credit cards, through an omnichannel platform, including strategic partnerships.

Atlanticus is guided by the principles of responsible lending, smart innovation, and expanding access to credit for consumers working toward a stronger financial future.

Forward-Looking Statements

This press release contains forward-looking statements that reflect the Company's current views with respect to, among other things, expectations for the benefits of the acquisition of Mercury, including 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 timing and results related thereto; long-term growth plans and opportunities; operations; financial performance; amount and pace of growth of managed receivables; mix of receivables; fair value of receivables; agreements with retail partners; debt financing; interest expense; operating expense; and marketing efforts. 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, risks related to the integration of the Mercury business and the management of the Mercury portfolio; the rebranding of the Mercury program; 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, daniel.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,
			2026				2025
Assets
Cash and cash equivalents (including $241.4 million and $209.6 million associated with variable interest entities at September 30, 2026 and December 31, 2025, respectively)		$	600,502			$	618,616
Restricted cash and cash equivalents (including $105.6 million and $117.6 million associated with variable interest entities at September 30, 2026 and December 31, 2025, respectively)			135,562				146,314
Loans at fair value (including $6,682.8 million and $6,522.9 million associated with variable interest entities at September 30, 2026 and December 31, 2025, respectively)			6,903,165				6,647,882
Property at cost, net of depreciation			9,924				12,496
Intangible assets			22,561				30,268
Operating lease right-of-use assets			12,763				13,639
Prepaid expenses and other assets, net			100,505				66,585
Assets of discontinued operations			–				87,288
Total assets		$	7,784,982			$	7,623,088
Liabilities
Accounts payable and accrued expenses		$	248,495			$	273,959
Operating lease liabilities			22,395				23,792
Notes payable, net (including $5,747.6 million and $5,739.1 million associated with variable interest entities at September 30, 2026 and December 31, 2025, respectively)			5,752,328				5,793,876
Senior notes, net			699,231				698,562
Income tax liability			214,966				152,121
Liabilities of discontinued operations			–				36,948
Total liabilities			6,937,415				6,979,258
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 - $40.0 million) at September 30, 2026 and December 31, 2025 (1)			40,000				40,000
Shareholders' Equity
Series B preferred stock, no par value, 3,615,022 shares issued and outstanding at September 30, 2026 (liquidation preference - $90.4 million); 3,584,131 shares issued and outstanding at December 31, 2025 (liquidation preference - $89.6 million) (1)			–				–
Common stock, no par value, 150,000,000 shares authorized: 15,315,071 and 14,922,462 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively			–				–
Paid-in capital			123,165				102,276
Retained earnings			688,729				506,424
Total shareholders’ equity attributable to Atlanticus Holdings Corporation			811,894				608,700
Noncontrolling interests			(4,327	)			(4,870	)
Total equity			807,567				603,830
Total liabilities, shareholders' equity and temporary equity		$	7,784,982			$	7,623,088
(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,
			2026				2025				2026				2025
Revenue and other income:
Consumer loans, including past due fees		$	564,031			$	331,735			$	1,619,440			$	837,442
Fees and related income on earning assets			159,650				122,544				420,287				295,129
Other revenue			52,253				30,367				139,847				72,077
Total operating revenue and other income			775,934				484,646				2,179,574				1,204,648
Other non-operating income			(85	)			7				(21	)			20
Total revenue and other income			775,849				484,653				2,179,553				1,204,668
Interest expense			(118,018	)			(75,007	)			(363,493	)			(175,153	)
Provision for credit losses			(1,466	)			(555	)			(2,662	)			(769	)
Changes in fair value of loans			(418,308	)			(276,851	)			(1,180,112	)			(671,973	)
Net margin			238,057				132,240				633,286				356,773
Gain on sale of word mark			27,500				–				27,500				–
Operating expenses:
Salaries and benefits			(25,622	)			(16,863	)			(79,062	)			(43,282	)
Card and loan servicing			(58,067	)			(35,792	)			(153,972	)			(95,413	)
Marketing and solicitation			(57,460	)			(35,247	)			(141,964	)			(80,486	)
Depreciation and amortization			(3,576	)			(1,472	)			(10,717	)			(3,116	)
Other			(17,167	)			(13,291	)			(52,764	)			(28,510	)
Total operating expenses			(161,892	)			(102,665	)			(438,479	)			(250,807	)
Income from continuing operations before income taxes			103,665				29,575				222,307				105,966
Income tax expense from continuing operations			(25,245	)			(7,072	)			(54,018	)			(25,426	)
Net income from continuing operations			78,420				22,503				168,289				80,540
Net income from discontinued operations			17,006				2,085				21,435				5,460
Net income			95,426				24,588				189,724				86,000
Net loss (income) attributable to noncontrolling interests			(76	)			389				(480	)			1,070
Net income attributable to controlling interests			95,350				24,977				189,244				87,070
Preferred stock and preferred unit dividends and discount accretion			(2,323	)			(2,307	)			(6,939	)			(8,103	)
Net income attributable to common shareholders		$	93,027			$	22,670			$	182,305			$	78,967
Net income attributable to common shareholders per common share—basic		$	6.11			$	1.50			$	12.06			$	5.22
Net income attributable to common shareholders per common share—diluted		$	4.87			$	1.21			$	9.62			$	4.21

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 filing 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 and certain adjusted measures, which are non-GAAP financial measures 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 net income attributable to common shareholders per common share (basic and diluted) and Adjusted return on average equity, all of which are non-GAAP financial measures. Our managed receivables-based 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 net income attributable to common shareholders per common share (basic and diluted) and Adjusted return on average equity provide the value of these measures after adjusting for the financial impact of the sale of our CAR operations and our sale of the MERCURY word mark. Management believes these adjusted measures are useful to investors because they exclude the gains on these transactions, which are not part of our ongoing operations, and facilitate comparison of our results across periods.

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
			2026									2025															2024
(in millions)		Sep. 30			Jun. 30			Mar. 31			Dec. 31			Sep. 30			Jun. 30				Mar. 31					Dec. 31
Loans at fair value		$	6,903.2		$	6,658.7		$	6,452.1		$	6,647.9		$	6,350.0		$	3,004.7			$	2,668.5				$	2,630.3
Fair value mark against receivable (1)			225.2			232.5			272.8			305.5			250.1			41.8				37.8					94.5
Total managed receivables (2)		$	7,128.4		$	6,891.2		$	6,724.9		$	6,953.4		$	6,600.1		$	3,046.5			$	2,706.3				$	2,724.8
Fair value to Total managed receivables ratio (3)			96.8	%		96.6	%		95.9	%		95.6	%		96.2	%		98.6		%		98.6			%		96.5		%
(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 operating revenues and other income, net of finance and fee charge-offs, to comparable amounts used in our calculation of Total managed yield is as follows:

		At or for the Three Months Ended
			2026									2025												2024
(in millions)		Sep. 30			Jun. 30			Mar. 31			Dec. 31			Sep. 30			Jun. 30			Mar. 31			Dec. 31
Consumer loans, including past due fees		$	564.0		$	535.5		$	519.9		$	528.7		$	331.7		$	267.2		$	238.5		$	242.1
Fees and related income on earning assets			159.7			150.5			110.1			155.8			122.5			94.3			78.3			83.8
Other revenue			52.2			48.2			39.4			39.5			30.4			23.0			18.7			17.5
Total operating revenue and other income - CaaS Segment			775.9			734.2			669.4			724.0			484.6			384.5			335.5			343.4
Adjustments due to acceleration of merchant fee discount amortization under fair value accounting			(15.1	)		(13.4	)		9.6			(6.1	)		(16.0	)		(26.6	)		0.1			0.7
Adjustments due to acceleration of annual fees recognition under fair value accounting			(19.5	)		(7.1	)		9.6			(8.3	)		(24.4	)		(8.8	)		(4.2	)		(10.5	)
Removal of finance charge-offs			(130.1	)		(131.4	)		(114.7	)		(114.1	)		(78.8	)		(68.2	)		(70.0	)		(64.9	)
Total managed yield		$	611.2		$	582.3		$	573.9		$	595.5		$	365.4		$	280.9		$	261.4		$	268.7

The calculation of Combined principal net charge-offs is as follows:

		At or for the Three Months Ended
			2026									2025												2024
(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		$	433.6		$	433.3		$	406.4		$	377.9		$	231.8		$	211.8		$	233.5		$	213.1
Finance charge-offs (1)			(130.1	)		(131.4	)		(114.7	)		(114.1	)		(78.8	)		(68.2	)		(70.0	)		(64.9	)
Combined principal net charge-offs		$	303.5		$	301.9		$	291.7		$	263.8		$	153.0		$	143.6		$	163.5		$	148.2
(1) Finance charge-offs are included as a component of our Changes in fair value of loans in the 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:

									Earnings per common share
(in thousands, except per share data)									Basic				Diluted
Net income attributable to common shareholders					$	93,027			$	6.11			$	4.87
Adjustment for gain on sale of CAR operations		(20,095	)
Adjustment for sale of MERCURY word mark		(27,500	)
Income tax expense on adjustments		11,569
Total adjustments, net of tax						(36,026	)			(2.37	)			(1.87	)
Adjusted net income attributable to common shareholders					$	57,001
Adjusted net income attributable to common shareholders per common share									$	3.74			$	3.00

Return on average equity is calculated using Net income attributable to common shareholders as the numerator and the average of Total shareholders’ equity attributable to Atlanticus Holdings Corporation as of September 30, 2026 and June 30, 2026 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	49.2	%
Sale of CAR operations and sale of MERCURY word mark, net of tax	(19.1	%)
Adjusted return on average equity	30.1	%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Atlanticus ATLC's third-quarter 2026 earnings?

Atlanticus earned $93.0 million attributable to common shareholders, or $4.87 per diluted common share, in the third quarter of 2026. Common-shareholder net income increased 310.4% year over year. Adjusted net income was $57.0 million, or $3.00 per diluted common share, a non-GAAP measure excluding one-time transactions.

What were the payment terms for Atlanticus's Auto Finance business sale?

The approximately $71.2 million consideration consisted of approximately $56.2 million in cash and a $15.0 million seller note. The sale covered CARS Acquisition and its subsidiaries, which comprised the entire former Auto Finance segment. Historical results are presented as discontinued operations and excluded from continuing operations for all periods presented.

Can Atlanticus still use the MERCURY name after selling the word mark?

Atlanticus received a non-exclusive, royalty-free license to solicit new credit card consumers on behalf of its bank partner using the MERCURY mark for 12 months following the sale. It may continue using the mark for servicing purposes for up to five additional years.