Atlanticus Holdings Corporation reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total operating revenue for Q3 2024 reached $350.9 million, a 19% increase from $294.9 million in Q3 2023. The net margin also improved, rising to $100.4 million from $88.2 million year-over-year. Net income for the third quarter was $29.2 million, up from $25.0 million in the prior year, while net income attributable to common shareholders increased to $23.2 million from $18.9 million.

For the nine-month period, total operating revenue was $956.8 million, a 13% increase from $846.6 million in 2023. Net income for the nine months was $79.1 million, compared to $75.7 million in the previous year. The growth in revenue was primarily driven by increases in private label credit and general purpose credit card products, with consumer loans, including past due fees, rising to $728.1 million from $654.4 million.

The company’s total assets increased to $3.0 billion as of September 30, 2024, up from $2.7 billion at the end of 2023. Loans at fair value also rose significantly to $2.5 billion from $2.2 billion. However, total liabilities increased to $2.5 billion from $2.2 billion, with notes payable net rising to $2.0 billion from $1.9 billion.

Strategically, Atlanticus has been adapting to regulatory changes, particularly new rules from the Consumer Financial Protection Bureau (CFPB) that may limit late fees, potentially impacting revenue. The company is working with bank partners to adjust its product offerings and pricing strategies in response to these changes. Additionally, the company has tightened its underwriting standards, shifting new receivable acquisitions to higher FICO band consumers, which has improved overall performance.

In terms of cash flow, net cash provided by operating activities for the nine months ended September 30, 2024, was $346.8 million, an increase from $326.7 million in 2023. Cash used in investing activities rose to $571.0 million, reflecting higher investments in receivables. The company also repurchased $27.6 million in common and preferred stock during the nine months, compared to $14.4 million in the same period last year.

Overall, Atlanticus Holdings Corporation has demonstrated robust growth in revenue and profitability, while strategically navigating regulatory challenges and enhancing its operational efficiency.