Fintech Atlanticus' Q3 revenue beats on Mercury Financial acquisition boost

Overview

• Atlanticus 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 expects continued growth in managed receivables into 2026

• Company anticipates increased interest expense due to higher interest rates

• Atlanticus 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

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 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: ID:nGNX23pbbs

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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.)