Atlanticus Holdings Corporation Reports Strong Q4 2025 Results Following Mercury Financial Acquisition

Atlanta, GA – March 13, 2026 – Atlanticus Holdings Corporation (NASDAQ: ATLC) today announced robust financial results for the fourth quarter and full year 2025, highlighted by the successful integration of Mercury Financial LLC and significant growth across key performance indicators. The company’s earnings call, held on March 12, 2026, detailed a transformative year marked by strategic expansion and financial strength.

Key Financial Highlights

• Diluted EPS Growth: Diluted earnings per share increased 23% for the quarter and 25% for the full year, year over year.
• Return on Average Equity (ROAE): ROAE exceeded 20% for both the quarter and the full year.
• Unrestricted Cash: At year-end, unrestricted cash was over $600.0 million.
• Receivables Growth: Managed receivables rose 37% year over year, excluding the impact of the Mercury acquisition.
• New Account Originations: Increased 73% to over 2.2 million for the year, and were up 56% in the quarter compared to the same quarter in the previous year.
• Purchase Volume: Up 54% for the quarter year over year and 32% for the year.
• Revenue: Total operating revenue and other income increased 107% year over year for the quarter to $734.0 million, and increased 27% for the year.
• Net Income: Net income attributable to common shareholders rose 25% year over year to $32.8 million for the quarter, or $1.75 per diluted share.

Strategic Acquisition of Mercury Financial

The acquisition of Mercury Financial, completed in September 2025, has significantly expanded Atlanticus’ scale and capabilities. The deal, valued at approximately $162 million in cash, added $3.2 billion in credit card receivables and 1.3 million credit card accounts, bringing total managed receivables to over $6 billion and serviced accounts to more than 5 million. Atlanticus Announces Acquisition of Mercury Financial LLC

Jeff Howard, President and Chief Executive Officer of Atlanticus, emphasized the strategic benefits of the acquisition, stating that it expands the markets the company can serve and accelerates efficiencies gained from scale. Nasdaq The integration of Mercury’s near-prime capabilities with Atlanticus’ existing infrastructure is expected to create scale efficiencies and expand their addressable market into higher credit quality segments. Ainvest

Integration Progress and Synergies

Integration of Mercury has progressed ahead of plan, with initial portfolio management actions already yielding positive results. Atlanticus anticipates significant long-term earnings accretion driven by disciplined portfolio management, cost savings, and increased origination growth in the near-prime space. The company expects $2 to $4 per share of accretion in 2027 from efficiencies, with most integration slated to finish into 2027. Yahoo Finance

CEO Howard noted that the integration plan is on track for completion by 2027, with ongoing portfolio optimization and repricing expected to deliver incremental returns. The company anticipates 100 to 350 basis points of ROA improvement on the Mercury portfolio through repricing and repositioning.

Financial Performance and Outlook

Atlanticus demonstrated strong financial performance throughout 2025, with revenue increasing 27% for the full year and 35% in the fourth quarter year over year. Operating expenses increased 67% year over year, primarily due to portfolio growth, Mercury integration, and higher marketing spending. The company’s diversified funding sources, spanning banks, insurance companies, sovereign funds, private credit, and corporate debt, remain robust, with no spread widening in recent securitizations.

Looking ahead, Atlanticus is targeting long-term earnings growth of 20% or more annually while delivering returns on average equity of 20% or greater. Management emphasized ample funding, diversified capital sources, and continued robust originations, positioning the company for targeted earnings growth despite near-term moderation in sequential receivable growth due to typical tax refund seasonality.