Overview

* Atlanticus ( ATLC ) Q3 revenue grows 41.1% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 misses analyst expectations

* Company completes $166.5 mln acquisition of Mercury Financial, adding $3.2 bln in receivables

Outlook

* Atlanticus ( ATLC ) expects continued growth in managed receivables into 2026

* Company anticipates increased interest expense due to higher interest rates

* Atlanticus ( ATLC ) projects growth in general purpose credit card receivables for remainder of 2025

Result Drivers

* MERCURY ACQUISITION - Acquisition of Mercury Financial added $3.2 bln in credit card receivables and 1.3 mln new accounts

* ORGANIC GROWTH - Excluding Mercury, managed receivables grew by $786.1 mln, driven by private label and general purpose credit card products

* OPERATING EXPENSES - Increased marketing and solicitation costs contributed to a 71.8% rise in operating expenses

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $495.29 $483.91

Revenue mln mln (5

Analysts

)

Q3 EPS Miss $1.21 $1.52 (5

Analysts

)

Q3 Net Miss $24.59 $29.61

Income mln mln (5

Analysts

)

Q3 Miss $32.48 $36.96

Pretax mln mln (6

Profit Analysts

)

Q3 -$108.33

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the consumer lending peer group is "buy"

* Wall Street's median 12-month price target for Atlanticus Holdings Corp ( ATLC ) is $87.50, about 38.3% above its November 7 closing price of $54.01

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)