Atlanticus Holdings Corporation Reports 19% Revenue Growth in Q1 2025

Atlanticus Holdings Corporation reported a significant increase in financial performance for the first quarter of 2025, with total operating revenue and other income reaching $344.9 million, up from $290.2 million in the same period last year, marking a 19% increase. The company’s net income attributable to common shareholders also rose to $27.9 million, compared to $19.9 million in the prior year, resulting in a basic earnings per share of $1.85, up from $1.35. This growth was primarily driven by an increase in consumer loans and related fees, which rose to $247.7 million from $230.4 million, alongside a notable rise in fees and related income on earning assets, which surged to $78.3 million from $47.9 million.

In terms of operational metrics, Atlanticus reported a total of 15,126,229 shares of common stock outstanding as of April 30, 2024. The company also noted a significant increase in its receivables, with total managed receivables reaching $2.7 billion, up from $2.3 billion year-over-year. The growth in receivables was attributed to an increase in new credit card and private label customers, with over 230,000 new accounts added during the year. The company’s strategic focus on expanding its partnerships with retail clients has been a key driver of this growth, as evidenced by the increase in merchant fees associated with new private label receivable acquisitions.

Atlanticus has also made strides in its operational efficiency, with total operating expenses increasing to $77.4 million from $60.7 million, largely due to higher salaries and benefits, as well as increased marketing and solicitation costs. The company continues to invest in technology and compliance, which has resulted in a more efficient servicing model. Despite the increase in expenses, the company’s net margin improved to $118.2 million from $93.5 million, reflecting effective cost management relative to revenue growth.

Looking ahead, Atlanticus remains optimistic about its growth trajectory, particularly in its Credit as a Service (CaaS) and Auto Finance segments. The company plans to continue expanding its retail partnerships and enhancing its product offerings to drive further growth in receivables. However, it also acknowledges potential challenges, including rising interest rates and economic conditions that could impact consumer spending and credit performance. The company is committed to maintaining a strong internal control environment and is actively working to remediate a material weakness identified in its financial reporting processes. Overall, Atlanticus is positioned to leverage its technology and partnerships to enhance financial inclusion for underserved consumers while navigating the complexities of the current economic landscape.