Atlanticus Holdings Co. 9.25% Senior Notes due 2029 (ATLCZ) Financials

Atlanticus Holdings Corp (NASDAQ: ATLC) shows steady financial performance and growth over the last several quarters through Q1 2025. Here are the key takeaways from the review of the company's quarterly income statements, cash flow statements, and balance sheets from Q2 2022 through Q1 2025:

• Consistent growth in loans and leases interest income, rising from approximately $191.5 million in Q2 2022 to $247.7 million in Q1 2025, indicating expansion in core lending operations.
• Net interest income remained robust, increasing from $185 million in Q2 2022 to over $219 million in Q1 2025, reflecting effective interest rate management.
• Net income attributable to common shareholders increased from about $18.8 million in Q2 2022 to roughly $27.9 million in Q1 2025, supporting earnings growth and shareholder value.
• Weighted average shares outstanding have remained relatively stable around 14.4 million to 15.1 million shares, indicating controlled dilution and shareholder stability.
• Operating cash flow continues to be strong, with net cash from continuing operating activities growing from about $71.8 million in Q2 2022 to $131.1 million in Q1 2025, supporting business sustainability.
• Total assets have expanded significantly, from approximately $2.1 billion in mid-2022 to over $3.27 billion by Q1 2025, reflecting growth in loan portfolio and investments.
• Common equity has risen from about $290 million in Q2 2022 to approximately $533 million in Q1 2025, suggesting strengthening of the company’s capital base.
• Total non-interest income remains negative, around -$100 million per quarter, largely due to sizable negative other non-interest income, which may warrant further investigation by investors.
• Provision for credit losses varies quarter to quarter, typically in the range of $0.3 million to $7 million, indicating fluctuating credit risk exposure that investors should monitor.
• Amortization expenses fluctuate, including negative adjustments in some quarters, reflecting accounting treatment of intangible assets and potentially impacting cash flow and earnings consistency.

• Interest expense on long-term debt has increased from $18.9 million in Q2 2022 to $47.5 million in Q1 2025, which could pressure net income if not offset by higher interest income.
• Other operating expenses, including marketing and salaries, have shown an upward trend, rising from about $44 million in Q2 2022 to approximately $77.4 million by Q1 2025, which may weigh on profit margins.
• The company incurred consistent preferred stock dividend obligations near $6 million quarterly, reducing net income attributable to common shareholders.
• Cash interest paid has increased notably in line with interest expense, potentially impacting free cash flow available for reinvestment or shareholder returns.
• Repurchase of common equity shows large outflows in some quarters (e.g., $51.2 million in Q1 2025), which reduces cash reserves though may support share price; investors should weigh this against cash flow generation.

Overall, Atlanticus Holdings demonstrates solid growth in core lending revenues and improving profitability over the last several quarters, supported by expanding assets and equity. However, the company faces increased interest expenses and elevated operating costs which could impact margins. Cash flow from operations remains strong, though heavy investments in securities, plus equity repurchases, have pressured liquidity somewhat. Investors should monitor credit loss provisions and the persistent negative non-interest income component for potential volatility or risks.