Atlanticus Q1 revenue jumps 97% on mercury acquisition

Atlanticus Holdings

07/05/2026 21:39

Overview

US fintech firm's Q1 revenue nearly doubled yr/yr but missed analyst expectations

EPS for Q1 beat analyst expectations, rising 50% yr/yr

Growth driven by Mercury acquisition and higher new account originations

Outlook

Company expects general purpose credit card receivables growth to outpace private label in 2026

Atlanticus anticipates only modest increases in private label credit receivables in 2026

Result Drivers

MERCURY ACQUISITION - Integration of the Mercury portfolio drove significant increases in revenue and managed receivables, with product, policy, and pricing changes showing better-than-modeled results and benefiting earnings through a reserve release

NEW ACCOUNT ORIGINATIONS - 41% increase in new accounts originated for bank partners and over 600,000 new customers served contributed to revenue growth

LOWER NET CHARGE-OFF RATE - Substantial reduction in net charge-off rate compared to prior year supported earnings growth

Company press release: ID:nGNX810Zs6

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$679.50 mln
$749.34 mln (5 Analysts)
Q1 EPS
Beat
$2.23
$1.74 (5 Analysts)
Q1 Net Income
Beat
$44.58 mln
$32.09 mln (5 Analysts)
Q1 Pretax Profit
Beat
$58.85 mln
$45.82 mln (4 Analysts)
Q1 Operating Expenses
-$130.86 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "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 $98.00, about 25.9% above its May 6 closing price of $77.82

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)