Fintech Atlanticus' Q3 revenue beats on Mercury Financial acquisition boost

Atlanticus Holdings

10/11/2025 13:29

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$495.29 mln
$483.91 mln (5 Analysts)
Q3 EPS
Miss
$1.21
$1.52 (5 Analysts)
Q3 Net Income
Miss
$24.59 mln
$29.61 mln (5 Analysts)
Q3 Pretax Profit
Miss
$32.48 mln
$36.96 mln (6 Analysts)
Q3 Operating Expenses
-$108.33 mln


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.)