Atlanticus Holdings Corp 10-Q

ITEM 1. FINANCIAL STATEMENTS Atlanticus Holdings Corporation and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (Dollars in thousands) September 30, December 31, 2025 2024 Assets Unrestricted cash and cash equivalents (including $ 170.5 million and $ 140.2 million associated with variable interest entities at September 30, 2025 and December 31, 2024, respectively) $ 425,023 $ 375,416 Restricted cash and cash equivalents (including $ 73.6 million and $ 98.8 million associated with variable interest entities at September 30, 2025 and December 31, 2024, respectively) 100,914 124,220 Loans at fair value (including $ 6,200.6 million and $ 2,542.9 million associated with variable interest entities at September 30, 2025 and December 31, 2024, respectively) 6,350,009 2,630,274 Loans at amortized cost, net (including $ 4.6 million and $ 4.9 million of allowance for credit losses at September 30, 2025 and December 31, 2024, respectively; and $ 21.5 million and $ 19.8 million of deferred revenue at September 30, 2025 and December 31, 2024, respectively) 85,004 84,332 Property at cost, net of depreciation 13,458 10,519 Intangible assets, net (Note 2) 31,889 — Operating lease right-of-use assets 15,564 13,878 Prepaid expenses and other assets 57,871 32,068 Total assets $ 7,079,732 $ 3,270,707 Liabilities Accounts payable and accrued expenses $ 253,081 $ 72,088 Operating lease liabilities 25,924 24,188 Notes payable, net (including $ 5,297.8 million and $ 2,128.0 million associated with variable interest entities at September 30, 2025 and December 31, 2024, respectively) 5,332,680 2,199,448 Senior notes, net 702,376 281,552 Income tax liability 140,862 114,068 Total liabilities 6,454,923 2,691,344 Commitments and contingencies (Note 11) Preferred stock, no par value, 10,000,000 shares authorized: Series A preferred stock, 400,000 shares issued and outstanding (liquidation preference - $ 40.0 million) at September 30, 2025 and December 31, 2024 (Note 6) (1) 40,000 40,000 Class B preferred units issued to noncontrolling interests (Note 6) — 50,000 Shareholders' Equity Series B preferred stock, no par value, 3,563,762 shares issued and outstanding at September 30, 2025 (liquidation preference - $ 89.1 million); 3,301,179 shares issued and outstanding at December 31, 2024 (liquidation preference - $ 82.5 million) (1) — — Common stock, no par value, 150,000,000 shares authorized: 15,127,014 and 14,904,192 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively — — Paid-in capital 115,749 98,278 Retained earnings 473,595 394,628 Total shareholders’ equity attributable to Atlanticus Holdings Corporation 589,344 492,906 Noncontrolling interests ( 4,535 ) ( 3,543 ) Total equity 584,809 489,363 Total liabilities, shareholders' equity and temporary equity $ 7,079,732 $ 3,270,707 (1) Both the Series A preferred stock and the Series B preferred stock have no par value and are part of the same aggregate 10,000,000 shares authorized. See accompanying notes. 1 Table of Contents Atlanticus Holdings Corporation and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (Dollars in thousands, except per share data) For the Three Months Ended For the Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenue and other income: Consumer loans, including past due fees $ 341,163 $ 255,389 $ 865,168 $ 728,112 Fees and related income on earning assets 123,575 78,572 296,201 185,983 Other revenue 30,554 16,993 72,616 42,674 Total operating revenue and other income 495,292 350,954 1,233,985 956,769 Other non-operating (loss) income ( 616 ) 270 20 1,184 Total revenue and other income 494,676 351,224 1,234,005 957,953 Interest expense ( 75,464 ) ( 42,492 ) ( 176,678 ) ( 115,503 ) Provision for credit losses ( 1,549 ) ( 4,633 ) ( 3,999 ) ( 9,323 ) Changes in fair value of loans ( 276,851 ) ( 203,739 ) ( 671,973 ) ( 549,161 ) Net margin 140,812 100,360 381,355 283,966 Operating expenses: Salaries and benefits ( 18,196 ) ( 12,299 ) ( 47,080 ) ( 37,584 ) Card and loan servicing ( 39,024 ) ( 28,069 ) ( 105,261 ) ( 82,589 ) Marketing and solicitation ( 35,301 ) ( 14,848 ) ( 80,584 ) ( 38,848 ) Depreciation and amortization ( 1,491 ) ( 656 ) ( 3,173 ) ( 1,963 ) Other ( 14,321 ) ( 7,202 ) ( 31,764 ) ( 24,272 ) Total operating expenses ( 108,333 ) ( 63,074 ) ( 267,862 ) ( 185,256 ) Income before income taxes 32,479 37,286 113,493 98,710 Income tax expense ( 7,891 ) ( 8,097 ) ( 27,493 ) ( 19,575 ) Net income 24,588 29,189 86,000 79,135 Net loss attributable to noncontrolling interests 389 354 1,070 858 Net income attributable to controlling interests 24,977 29,543 87,070 79,993 Preferred stock and preferred unit dividends and discount accretion ( 2,307 ) ( 6,316 ) ( 8,103 ) ( 18,916 ) Net income attributable to common shareholders $ 22,670 $ 23,227 $ 78,967 $ 61,077 Net income attributable to common shareholders per common share—basic $ 1.50 $ 1.58 $ 5.22 $ 4.15 Net income attributable to common shareholders per common share—diluted $ 1.21 $ 1.27 $ 4.21 $ 3.35 See accompanying notes. 2 Table of Contents Atlanticus Holdings Corporation and Subsidiaries Condensed Consolidated Statements of Shareholders’ Equity and Temporary Equity (Unaudited) For the Nine Months Ended September 30, 2025 and September 30, 2024 (Dollars in thousands) Series B Preferred Stock Common Stock Temporary Equity Shares Issued Amount Shares Issued Amount Paid-In Capital Retained Earnings Noncontrolling Interests Total Equity Series A Preferred Stock Class B Preferred Units Balance at January 1, 2025 3,301,179 $ — 14,904,192 $ — $ 98,278 $ 394,628 $ ( 3,543 ) $ 489,363 $ 40,000 $ 50,000 Series A preferred stock dividends ($ 1.50 dividend per share) — — — — — ( 600 ) — ( 600 ) — — Series B preferred stock dividends ($ 0.48 dividend per share) — — — — — ( 1,574 ) — ( 1,574 ) — — Class B preferred units dividends ($ 0.04 dividend per share) — — — — — ( 1,400 ) — ( 1,400 ) — — Stock option exercises and proceeds related thereto — — 11,300 — 335 — — 335 — — Compensatory stock issuances, net of forfeitures — — 9,003 — — — — — — — Issuance of common stock — — 200,000 — 11,588 — — 11,588 — — Issuance of series B preferred stock, net 13,661 — — — 313 — — 313 — — Contributions by owners of noncontrolling interests — — — — — — 78 78 — — Stock-based compensation costs — — — — 870 — — 870 — — Redemption and retirement of preferred shares and preferred units — — — — — — — — — ( 50,000 ) Redemption and retirement of common shares — — ( 27,252 ) — ( 1,246 ) — — ( 1,246 ) — — Net income (loss) — — — — — 31,520 ( 398 ) 31,122 — — Balance at March 31, 2025 3,314,840 $ — 15,097,243 $ — $ 110,138 $ 422,574 $ ( 3,863 ) $ 528,849 $ 40,000 $ — Series A preferred stock dividends ($ 1.50 dividend per share) — — — — — ( 600 ) — ( 600 ) — — Series B preferred stock dividends ($ 0.48 dividend per share) — — — — — ( 1,622 ) — ( 1,622 ) — — Stock option exercises and proceeds related thereto — — 4,558 — 70 — — 70 — — Compensatory stock issuances, net of forfeitures — — 65,411 — — — — — — — Issuance of common stock — — — — 1 — — 1 — — Issuance of series B preferred stock, net 142,603 — — — 3,157 — — 3,157 — — Stock-based compensation costs — — — — 948 — — 948 — — Redemption and retirement of common shares — — ( 41,381 ) — ( 1,915 ) — — ( 1,915 ) — — Net income (loss) — — — — — 30,573 ( 283 ) 30,290 — — Balance at June 30, 2025 3,457,443 $ — 15,125,831 $ — $ 112,399 $ 450,925 $ ( 4,146 ) $ 559,178 $ 40,000 $ — Series A preferred stock dividends ($ 1.50 dividend per share) — — — — — ( 600 ) — ( 600 ) — — Series B preferred stock dividends ($ 0.48 dividend per share) — — — — — ( 1,707 ) — ( 1,707 ) — — Stock option exercises and proceeds related thereto — — 10,242 — 157 — — 157 — — Compensatory stock issuances, net of forfeitures — — ( 8,632 ) — — — — — — — Issuance of series B preferred stock, net 106,319 — — — 2,298 — — 2,298 — — Stock-based compensation costs — — — — 920 — — 920 — — Redemption and retirement of common shares — — (427 ) — ( 25 ) — — ( 25 ) — — Net income (loss) — — — — — 24,977 ( 389 ) 24,588 — — Balance at September 30, 2025 3,563,762 $ — 15,127,014 $ — $ 115,749 $ 473,595 $ ( 4,535 ) $ 584,809 $ 40,000 $ — 3 Table of Contents Series B Preferred Stock Common Stock Temporary Equity Shares Issued Amount Shares Issued Amount Paid-In Capital Retained Earnings Noncontrolling Interests Total Equity Series A Preferred Stock Class B Preferred Units Balance at January 1, 2024 3,256,561 $ — 14,603,563 $ — $ 87,415 $ 307,260 $ ( 2,258 ) $ 392,417 $ 40,000 $ 100,250 Accretion of discount associated with issuance of subsidiary equity — — — — — (75 ) — ( 75 ) — 75 Series A preferred stock dividends ($ 1.50 dividend per share) — — — — — ( 597 ) — ( 597 ) — — Series B preferred stock dividends ($ 0.48 dividend per share) — — — — — ( 1,555 ) — ( 1,555 ) — — Class B preferred units dividends ($ 0.04 dividend per share) — — — — — ( 4,065 ) — ( 4,065 ) — — Compensatory stock issuances, net of forfeitures — — 206,629 — — — — — — — Issuance of series B preferred stock, net 44,143 — — — 1,071 — — 1,071 — — Distributions to owners of noncontrolling interests — — — — — — ( 148 ) ( 148 ) — — Contributions by owners of noncontrolling interests — — — — — — 3 3 — — Stock-based compensation costs — — — — 940 — — 940 — — Redemption and retirement of common shares — — ( 18,033 ) — ( 543 ) — — ( 543 ) — — Net income (loss) — — — — — 26,170 ( 351 ) 25,819 — — Balance at March 31, 2024 3,300,704 $ — 14,792,159 $ — $ 88,883 $ 327,138 $ ( 2,754 ) $ 413,267 $ 40,000 $ 100,325 Accretion of discount associated with issuance of subsidiary equity — — — — — ( 75 ) — ( 75 ) — 75 Series A preferred stock dividends ($ 1.50 dividend per share) — — — — — ( 596 ) — ( 596 ) — — Series B preferred stock dividends ($ 0.48 dividend per share) — — — — — ( 1,573 ) — ( 1,573 ) — — Class B preferred units dividends ($ 0.04 dividend per share) — — — — — ( 4,064 ) — ( 4,064 ) — — Stock option exercises and proceeds related thereto — — 2,975 — 45 — — 45 — — Compensatory stock issuances, net of forfeitures — — 3,007 — — — — — — — Stock-based compensation costs — — — — 1,050 — — 1,050 — — Redemption and retirement of common shares — — ( 49,203 ) — ( 1,273 ) — — ( 1,273 ) — — Net income (loss) — — — — — 24,280 ( 153 ) 24,127 — — Balance at June 30, 2024 3,300,704 $ — 14,748,938 $ — $ 88,705 $ 345,110 $ ( 2,907 ) $ 430,908 $ 40,000 $ 100,400 Accretion of discount associated with issuance of subsidiary equity — — — — — ( 75 ) — ( 75 ) — 75 Series A preferred stock dividends ($ 1.50 dividend per share) — — — — — ( 604 ) — ( 604 ) — — Series B preferred stock dividends ($ 0.48 dividend per share) — — — — — ( 1,573 ) — ( 1,573 ) — — Class B preferred units dividends ($ 0.04 dividend per share) — — — — — ( 4,064 ) — ( 4,064 ) — — Stock option exercises and proceeds related thereto — — 1,700 — 26 — — 26 — — Compensatory stock issuances, net of forfeitures — — ( 583 ) — — — — — — — Stock-based compensation costs — — — — 979 — — 979 — — Redemption and retirement of preferred shares and preferred units — — — — — — — — — ( 25,500 ) Redemption and retirement of common shares — — ( 11,193 ) — ( 324 ) — — ( 324 ) — — Net income (loss) — — — — — 29,543 ( 354 ) 29,189 — — Balance at September 30, 2024 3,300,704 $ — 14,738,862 $ — $ 89,386 $ 368,337 $ ( 3,261 ) $ 454,462 $ 40,000 $ 74,975 See accompanying notes. 4 Table of Contents Atlanticus Holdings Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands) For the Nine Months Ended September 30, 2025 2024 Operating activities Net income $ 86,000 $ 79,135 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and accretion, net 5,777 3,785 Provision for credit losses 3,999 9,323 Deferred income tax expense 27,218 19,590 Income from accretion of discount associated with Loans at amortized cost, net ( 20,246 ) ( 18,897 ) Income from merchant fees associated with Loans at fair value ( 150,733 ) ( 112,970 ) Changes in fair value of loans 671,973 549,161 Change in bank partner fees carried at fair value 3,825 — Amortization of debt issuance costs 13,537 8,491 Stock-based compensation costs 2,738 2,969 Changes in assets and liabilities: Decrease in lease liability ( 2,278 ) ( 2,253 ) Increase in uncollected fees on earning assets ( 266,552 ) ( 186,886 ) Increase (decrease) in income tax liability ( 424 ) ( 202 ) Increase (decrease) in accounts payable and accrued expenses 9,276 ( 1,026 ) Other ( 12,398 ) ( 3,417 ) Net cash provided by operating activities 371,712 346,803 Investing activities Proceeds from recoveries on charged off receivables 47,302 33,843 Investments in earning assets ( 2,678,774 ) ( 2,002,048 ) Proceeds from earning assets 1,681,888 1,397,362 Acquisition of new subsidiary ( 72,863 ) — Purchases and development of property ( 4,880 ) ( 193 ) Net cash used in investing activities ( 1,027,327 ) ( 571,036 ) Financing activities Noncontrolling interests contributions 78 3 Noncontrolling interests distributions — ( 148 ) Proceeds from issuance of common stock 11,589 — Proceeds from issuance of Series B preferred stock, net of issuance costs 5,768 1,071 Preferred stock and preferred unit dividends ( 10,130 ) ( 19,738 ) Proceeds from exercise of stock options 562 71 Purchase and retirement of outstanding stock and preferred units ( 53,186 ) ( 27,640 ) Proceeds from issuance of Senior notes, net of issuance costs 418,341 124,076 Proceeds from borrowings 1,431,465 629,134 Repayment of borrowings ( 1,122,571 ) ( 481,540 ) Net cash provided by financing activities 681,916 225,289 Net increase in cash and cash equivalents and restricted cash and cash equivalents 26,301 1,056 Cash and cash equivalents and restricted cash equivalents at beginning of period 499,636 383,653 Cash and cash equivalents and restricted cash equivalents at end of period $ 525,937 $ 384,709 Cash and cash equivalents, and restricted cash and cash equivalents at end of period Unrestricted cash and cash equivalents $ 425,023 $ 308,651 Restricted cash and cash equivalents 100,914 76,058 Cash and cash equivalents, and restricted cash and cash equivalents at end of period $ 525,937 $ 384,709 Supplemental cash flow information Cash paid for interest $ 162,968 $ 104,983 Cash paid for income taxes, net of refunds $ 699 $ 187 Accretion of discount associated with issuance of subsidiary equity $ — $ 225 Decrease in accrued and unpaid preferred stock and preferred unit dividends $ ( 2,027 ) $ ( 1,047 ) Cash assumed upon acquisition of Mercury $ 93,664 $ — See accompanying notes. 5 Table of Contents Atlanticus Holdings Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements September 30, 2025 and 2024 1. Description of Our Business Our accompanying condensed consolidated financial statements include the accounts of Atlanticus Holdings Corporation (the "Company") and those entities we control. We are a purpose driven financial technology company. We are primarily focused on facilitating consumer credit through the use of our financial technology and related services. We provide technology and other support services to lenders who offer an array of financial products and services, including private label and general purpose card products, to consumers who may have been declined by other providers of credit. Private label and general purpose card products are originated by The Bank of Missouri, WebBank and First Bank and Trust (collectively, our “bank partners”). Our bank partners originate these accounts through multiple channels, including retail and healthcare point-of-sale locations, direct mail solicitation, digital marketing and partnerships with third parties. In these Notes to Condensed Consolidated Financial Statements, "receivables" or "loans" typically refer to receivables we have purchased from our bank partners or from other third parties. We are principally engaged as a program manager, providing a technology platform and corresponding services to lenders in the U.S. to assist those lenders with offering products to consumers. These lenders pay us a fee and, in most circumstances, the lenders are then obligated to sell us the receivables they generate from these products. We acquire these receivables for the principal amount of the loan. For certain of our receivables, we also receive merchant fees from our retail partners that are used to enhance our returns for those receivables. We compensate our bank partners monthly for the regulatory oversight they provide associated with our acquired receivables, the underlying accounts of which they continue to own and service. This compensation is based on both fixed and variable components dependent on the underlying performance of the acquired receivables (collectively, "Bank partner fees"). As we are obligated to compensate our bank partners for the duration of the underlying account, we recognize the fair value of these Bank partner fees within Card and loan servicing on the accompanying condensed consolidated statements of income on the date we acquire the underlying receivable. We service the underlying receivables on behalf of our bank partners by providing and/or managing the ongoing customer service activities in the form of processing payments, providing regular notices of statement activity, and resolving customer complaints, billing disputes, and fraud claims. Our bank partners continue to own the underlying consumer accounts that they originate and provide regulatory oversight in the form of reviewing, approving the development of consumer finance programs and approving all related marketing materials, establishing the policies and procedures that govern the operation of the consumer finance programs, reviewing and approving customer complaint correspondence, performing ongoing compliance monitoring and testing and audits of the consumer finance programs, and providing settlement services between us and our retail partners. From time to time, we also purchase receivables portfolios from third parties other than our bank partners. These products and services are reported through two reportable segments, Credit as a Service ("CaaS") and Auto Finance. Within our CaaS segment, we apply our technology solutions, in combination with the experiences gained, and infrastructure built from servicing $48 billion in consumer loans over more than 25 years of operating history, to support lenders in offering more inclusive financial services. These products include private label credit cards using the Fortiva and Curae brand names as well as merchant associated brands. Private label credit products associated with the healthcare space are generally issued under the Curae brand while all other retail partnerships, including those in consumer electronics, furniture, elective medical procedures, and home-improvement use the Fortiva brand or use our retail partners’ brands. General purpose credit cards use the Aspire, Imagine, Mercury and Fortiva brand names. Our flexible technology solutions allow our bank partners to integrate our paperless process and instant decisioning platform with the existing infrastructure of participating retailers, healthcare providers and other service providers. Using our technology and proprietary predictive analytics, lenders can make instant credit decisions utilizing hundreds of inputs from multiple sources and thereby offer credit to consumers overlooked by many providers of financing that focus exclusively on consumers with higher FICO scores. Atlanticus’ decisioning platform is enhanced by artificial intelligence and machine learning, enabling fast, sound decision-making when it matters most. We also report within our CaaS segment: 1 ) servicing income; and 2 ) gains or losses associated with notes receivable and equity investments previously made in consumer technology platforms. These include investments in companies engaged in mobile technologies, marketplace lending and other financial technologies. None of these companies are publicly-traded, and the carrying values of our investments in these companies are not material. Within our Auto Finance segment, our CAR subsidiary operations principally purchase and/or service loans secured by automobiles from or for, and also provide floor plan financing for, a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, used car business. We purchase auto loans at a discount and with dealer retentions or holdbacks that provide risk protection. Also within our Auto Finance segment, we are providing certain installment lending products in addition to our traditional loans secured by automobiles. 6 Table of Contents Rules enacted by the Consumer Financial Protection Bureau ("CFPB") which could limit the late fees charged to consumers were vacated in April 2025. The Courts determined that the CFPB violated the Credit Card Accountability and Disclosure Act's and the Administrative Procedure Act requirement that penalty fees be "reasonable and proportional" to the violation. In order to mitigate these impacts and continue to serve consumers, our bank partners took a number of steps, from modifying products and policies (such as further tightening the criteria used to evaluate new loans) to changing prices (including increasing interest rates and fees charged to consumers) which are included in our fair value calculations. See Note 7 "Fair Values of Assets and Liabilities" for more information on our fair value measurements. 2. Acquisition of Mercury Financial LLC On September 11, 2025, the Company closed the acquisition of all outstanding equity interests of Mercury Financial LLC (“Mercury”), a leading data- and tech-centric credit card platform utilized by bank partners to provide credit cards to near-prime consumers in the U.S. The acquisition aligns with Atlanticus’ strategic objective to expand its consumer credit offerings and increase scale within its credit card operations. At the closing, Mercury became a wholly-owned subsidiary of Atlanticus. Total purchase consideration was approximately $ 166.5 million in cash. In addition to the purchase consideration, the seller has the opportunity under the purchase agreement to receive earn out payments for up to three years following the closing of the acquisition in an amount equal to 75 % of the amount by which the charge-offs of Mercury’s acquired receivables are less than agreed-upon charge-off levels. We have determined the contingent consideration meets the definition of a derivative instrument under Accounting Standards Codification ("ASC") 815, "Derivatives and Hedging". We have recorded the derivative at fair value within Accounts payable and accrued expenses on the accompanying condensed consolidated balance sheets, calculated using internally-developed estimates. These estimates on performance of the acquired portfolio include expected credit losses, payment rates, servicing costs, discount rates and yields earned on our general purpose credit card receivables. See Note 7, "Fair Values of Assets and Liabilities" for more information. As a result of the acquisition, the Company added approximately 1.3 million credit card serviced accounts, $ 3.2 billion in credit card receivables and assumed $ 2.8 billion in collateralized debt. Additionally, the Company acquired certain identifiable finite-lived intangible assets primarily associated with internally developed software. The Company expensed approximately $ 2.5 million of acquisition costs and approximately $ 4.3 million of severance costs within Other expense and Salaries and benefits, respectively, during the three and nine months ended September 30, 2025. The condensed consolidated statement of operations includes, for the three and nine months ended September 30, 2025, Mercury’s operating results from September 11, 2025 through September 30, 2025. For that period, Mercury contributed approximately $ 49.9 million of revenue and $( 7.0 ) million of net loss. See Note 7 "Fair Values of Assets and Liabilities" and Note 10 "Notes Payable" for more information on the acquired credit card receivables and assumed debt obligations and see Note 3 "Significant Accounting Policies and Condensed Consolidated Financial Statement Components" for more information on our finite-lived intangible assets. The acquisition was accounted for as an asset acquisition under ASC 805, "Business Combinations". Fair values of assets acquired and liabilities assumed were determined using management estimates and third -party valuations (e.g., replacement cost method). 3. Significant Accounting Policies and Condensed Consolidated Financial Statement Components The following is a summary of significant accounting policies we follow in preparing our condensed consolidated financial statements, as well as a description of significant components of our condensed consolidated financial statements. The condensed consolidated financial statements furnished have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the periods presented. The preparation of financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our condensed consolidated financial statements, as well as the reported amounts of revenues and expenses during each reporting period. We base these estimates on information available to us as of the date of the financial statements. Actual results could differ materially from these estimates. Certain estimates, such as credit losses, payment rates, servicing costs, discount rates and yields earned on credit card receivables, significantly affect the reported amount (and changes thereon) of our Loans at fair value on our condensed consolidated balance sheets and condensed consolidated statements of income. In the fourth quarter of 2024, we revised our methodology to correct the cumulative impact of an error in the discounted cash flow analysis used in the calculation of our Loans at fair value. This revision removed the impacts of cash flows associated with subsequent purchases associated with consumer receivables and cash flows on related merchant fees. These changes in the calculation of our Loans at fair value did not result in a restatement of our condensed consolidated financial statements in prior periods due to the immateriality of this error on prior period results. We revised the presentation of our condensed consolidated statement of shareholders’ equity and temporary equity to present the preferred stock and preferred unit dividends on an individual instrument basis, including the dividends per share. We also revised the presentation of our condensed consolidated statement of cash flows to ( 1 ) present the income from accretion of discounts associated with loans from amortized cost, net separate from the income from merchant fees associated with loans at fair value, ( 2 ) include a reconciliation of the unrestricted cash and cash equivalents and restricted cash and cash equivalents to arrive at the ending cash and cash equivalents and restricted cash at end of period, 3 ) reclassify lease liability payments to Decrease in lease liability below changes in assets and liabilities and 4 ) present deferred income tax expense separate from changes in income tax liability. These changes in presentation had no effect on our consolidated total equity or consolidated net cash provided by operating activities or ending cash and cash equivalents and restricted cash, and our historical condensed consolidated statement of shareholders’ equity and temporary equity and condensed consolidated statement of cash flows were revised for consistent presentation. Certain disclosures have been revised to conform to current year presentation. 7 Table of Contents Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company’s policy is to consolidate the financial statements of entities in which it has a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by evaluating whether the entity is a voting interest entity or variable interest entity ("VIE") and if the accounting guidance requires consolidation. For more information on the Company's VIEs, see Note 8 "Variable Interest Entities". Unrestricted Cash and Cash Equivalents Unrestricted cash and cash equivalents consist of cash, money market investments and overnight deposits. We consider all highly liquid cash investments with low interest rate risk and original maturities of three months or less to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. We maintain unrestricted cash and cash equivalents for general operating purposes. We maintain our cash and cash equivalents in accounts at regulated domestic financial institutions in amounts that exceed FDIC insured amounts. All cash balances are maintained at well capitalized institutions. Restricted Cash and Cash Equivalents Restricted cash includes certain collections on loans, interest and fees receivable, the cash balances of which are required to be distributed to noteholders under our debt facilities. Our restricted cash balances also include minimum cash balances held in accounts at the request of certain of our business partners. Loans, Interest and Fees Receivable We maintain two categories of Loans on our condensed consolidated balance sheets: those that are carried at fair value (Loans at fair value) and those that are carried at net amortized cost (Loans at amortized cost). For our Loans at fair value (within our CaaS segment), interest and fees are discontinued when the receivable becomes contractually 90 or more days past due. For our Loans at amortized cost (within our Auto Finance segment), we continue interest and fee billings until the time of charge-off if there is adequate value associated with the underlying asset serving as collateral for the receivable. Once a loan discontinues accruing interest and fees it is ineligible to return to accrual status. We charge off receivables underlying our Loans at fair value, against our Changes in fair value of loans, when they become contractually more than 180 days past due, or 120 days past due if they are enrolled in an installment loan product. We charge off our Loans at amortized cost receivables, against our Allowance for credit losses, when they become contractually between 120 and 180 days past due. For all of our receivables portfolios, we charge off receivables within 30 days of notification and confirmation of a customer’s bankruptcy or death. However, in some cases of death, we do not charge off receivables if there is a surviving, contractually liable individual or estate large enough to pay the debt in full. Loans at fair value. Loans at fair value represent receivables for which we have elected the fair value option (the "Fair Value Receivables"). The Fair Value Receivables are held by entities that qualify as VIEs, and are consolidated onto our condensed consolidated balance sheets, some portfolios of which are unencumbered and some of which are still encumbered under structured or other financing facilities. Loans and finance receivables include accrued and unpaid interest and fees. All receivables associated with private label credit and general purpose credit cards are included within this category of receivables. 8 Table of Contents Under the fair value option, fees such as annual fees are taken into income when billed to the consumer or upon loan acquisition and any cost associated with the loan acquisition are expensed in the period incurred. The Company estimates the fair value of the loans using a discounted cash flow model, which considers various unobservable inputs such as credit losses, payment rates, servicing costs, discount rates and yields earned on credit card receivables. The Company reevaluates the fair value of loans receivable at the close of each measurement period. Changes in the fair value of loans are recorded as a component of "Changes in fair value of loans" in the condensed consolidated statements of income in the period of the fair value changes. Changes in the fair value of loans include the impact of current period charge-offs associated with these receivables. Further details concerning our loans at fair value are presented within Note 7, "Fair Values of Assets and Liabilities." Loans at amortized cost, net. Our loans at amortized cost, net, currently consist of receivables associated with our Auto Finance segment’s operations and are presented in the condensed consolidated balance sheets net of the related allowance for credit losses and deferred revenue. We purchased auto loans with outstanding principal of $ 53.8 million, $ 150.1 million, $ 48.9 million and $161.1 million for the three and nine months ended September 30, 2025 and 2024, respectively, through our pre-qualified network of independent automotive dealers and automotive finance companies. We show an allowance for credit losses for our loans at amortized cost. A considerable amount of judgment is required to assess the ultimate amount of expected losses on loans at amortized cost, and we regularly evaluate and update our methodologies to determine the most appropriate allowance necessary. Our loans at amortized cost consist of smaller-balance, homogeneous loans in our Auto Finance segment. These loans are further divided into pools based on common characteristics such as contract or acquisition channel. For each pool, we determine the necessary allowance for credit losses using reasonable and supportable forecasts that analyze some or all of the following attributes unique to each type of receivable pool: historical loss rates on similar loans; current delinquency and roll-rate trends which may indicate consumer loss rates in excess or less than those which historical trends might suggest; the effects of changes in the economy on consumers such as inflation or other macroeconomic changes; changes in underwriting criteria; unfunded commitments (to the extent they are unconditional), and estimated recoveries. The aforementioned inputs are calculated using historical trends over the most recent two year period, and adjusted as needed for current trends and reasonable and supportable forecasts. We may individually evaluate a receivable or pool of receivables for credit losses if circumstances indicate that the receivable or pool of receivables may be at higher risk for non-performance than other receivables (e.g., if a particular retail or auto-finance partner has indications of nonperformance (such as a bankruptcy) that could impact the underlying pool of receivables we purchased from the partner). Certain of our loans at amortized cost also contain components of deferred revenue related to loan discounts on the purchase of our auto finance receivables. As of September 30, 2025 and December 31, 2024, the weighted average remaining accretion period for the $ 21.5 million and $ 19.8 million of deferred revenue reflected in the condensed consolidated balance sheets was 22 and 24 months, respectively. A roll-forward (in millions) of our allowance for credit losses by class of receivable is as follows: For the Three Months Ended September 30, 2025 2024 Notes Receivable Auto Finance Total Notes Receivable Auto Finance Total Allowance for credit losses: Balance at beginning of period $ ( 6.1 ) $ ( 4.9 ) $ ( 11.0 ) $ — $ ( 2.4 ) $ ( 2.4 ) Provision for credit losses(1) ( 0.6 ) ( 0.9 ) ( 1.5 ) — ( 4.6 ) ( 4.6 ) Charge-offs — 1.9 1.9 — 3.1 3.1 Recoveries — ( 0.7 ) ( 0.7 ) — ( 0.7 ) ( 0.7 ) Balance at end of period $ ( 6.7 ) $ ( 4.6 ) $ ( 11.3 ) $ — $ ( 4.6 ) $ ( 4.6 ) ( 1 ) For the three months ended September 30, 2025, we recorded a provision for credit losses associated with our notes receivable from consumer technology platforms that are included in Prepaid expenses and other assets on our condensed consolidated balance sheets. For the Nine Months Ended September 30, 2025 2024 Notes Receivable Auto Finance Total Notes Receivable Auto Finance Total Allowance for credit losses: Balance at beginning of period $ ( 5.9 ) $ ( 4.9 ) $ ( 10.8 ) $ — $ ( 1.8 ) $ ( 1.8 ) Provision for credit losses(1) ( 0.8 ) ( 3.2 ) ( 4.0 ) — ( 9.3 ) ( 9.3 ) Charge-offs — 5.4 5.4 — 8.4 8.4 Recoveries — ( 1.9 ) ( 1.9 ) — ( 1.9 ) ( 1.9 ) Balance at end of period $ ( 6.7 ) $ ( 4.6 ) $ ( 11.3 ) $ — $ ( 4.6 ) $ ( 4.6 ) ( 1 ) For the nine months ended September 30, 2025, we recorded a provision for credit losses associated with our notes receivable from consumer technology platforms that are included in Prepaid expenses and other assets on our condensed consolidated balance sheets. September 30, December 31, As of 2025 2024 Allowance for credit losses: Balance of Notes Receivable at end of period individually evaluated for impairment $ ( 6.7 ) $ ( 5.9 ) Balance of Auto Finance at end of period individually evaluated for impairment $ ( 1.1 ) $ ( 1.2 ) Balance of Auto Finance at end of period collectively evaluated for impairment $ ( 3.5 ) $ ( 3.7 ) Loans at amortized cost: Loans at amortized cost $ 111.1 $ 109.0 Loans at amortized cost individually evaluated for impairment $ 2.6 $ 1.5 Loans at amortized cost collectively evaluated for impairment $ 108.5 $ 107.5 Recoveries, noted above, consist of amounts received from the efforts of third -party collectors. All proceeds received, associated with charged-off accounts, are credited to the allowance for credit losses. 9 Table of Contents Delinquent loans at amortized cost reflect the principal, fee and interest components of loans we did not collect on or prior to the contractual due date and are considered "past due". Amounts we believe we will not ultimately collect are included as a component in our overall allowance for credit losses. We consider loan delinquencies a key indicator of credit quality because this measure provides the best ongoing estimate of how a particular class of receivables is performing. An aging of our delinquent loans at amortized cost (in millions) as of September 30, 2025 and December 31, 2024 is as follows: September 30, December 31, As of 2025 2024 30-59 days past due $ 8.4 $ 7.6 60-89 days past due 2.5 3.2 90 or more days past due 3.2 4.7 Delinquent loans at amortized cost 14.1 15.5 Current loans at amortized cost 97.0 93.5 Total loans at amortized cost $ 111.1 $ 109.0 Balance of loans greater than 90-days delinquent still accruing interest and fees $ 2.2 $ 3.7 Loan Modifications and Restructurings We review our Loans at amortized cost, net, associated with our Auto Finance segment’s operations to determine if any modifications for borrowers experiencing financial difficulty were made that would qualify the receivable as a Financial Difficulty Modification ("FDM"). This could include a restructuring of the loan terms to alleviate the burden of the borrower's near-term cash requirements, such as a modification of terms to reduce or defer cash payments to help the borrower attempt to improve its financial condition. For the nine months ended September 30, 2025 and 2024, no Loans at amortized cost qualified as a FDM. Intangible assets and amortization As part of the acquisition of Mercury, we acquired $ 32.4 million of identifiable finite-lived intangible assets primarily associated with internally developed software. These intangible assets are carried at the fair value at acquisition less accumulated amortization. Amortization is computed on a straight-line basis over the useful lives of the related assets which is estimated to be 5 years from the date of acquisition. Details of our finite-lived intangible assets were as follows (in thousands): As of September 30, 2025 Intangible assets - gross carrying amount 32,430 Accumulated amortization ( 541 ) Net carrying amount 31,889 Amortization expense related to these finite-lived intangible assets was $ 0.5 million for the three and nine month periods ended September 30, 2025, and is included within depreciation and amortization in the condensed consolidated statements of income. Rewards Liability Certain of our credit card accounts are associated with customer reward programs, which allow the customer to earn rewards that can be redeemed for statement credits, gift cards, cash back or applied against purchases on certain online platforms. The amount of reward that a customer earns varies based on the terms and conditions of the reward program and product. When rewards are earned by a customer, rewards expense is recorded as an offset to interchange income, as a component of Other revenue (on our Condensed Consolidated Statements of Income), with a corresponding increase to the customer rewards liability within Accounts payable and accrued expenses (on our Condensed Consolidated Balance Sheets). The customer rewards liability is computed based on the estimated redemption cost of rewards earned and is reduced as rewards are redeemed. In estimating the customer rewards liability, the Company considers historical redemption and spending behavior, as well as the terms and conditions of the reward programs, among other factors. The Company expects that the majority of rewards earned by customers will eventually be redeemed. Income Taxes We experienced effective tax rates of 24.0 % and 24.0 % for the three and nine months ended September 30, 2025, respectively, compared to 21.5 % and 19.7 % for the three and nine months ended September 30, 2024, respectively. Our effective tax rates for the three and nine months ended September 30, 2025, are above the statutory rate principally due to our ( 1 ) state and foreign income tax expense, including the effects of law changes enacted in the nine months ended September 30, 2025, in certain states in which we operate, ( 2 ) the tax effects of deduction disallowance under Section 162 (m) of the Internal Revenue Code of 1986 as amended (the “Code”) with respect to compensation paid to our covered employees, and ( 3 ) taxes on global intangible low-taxed income. Offsetting the foregoing items were the tax effects of deductions ( 1 ) associated with the exercises of stock options and the vesting of restricted stock at the times when the fair value of our stock exceeded such share-based awards’ grant date values, and ( 2 ) of amounts characterized in our condensed consolidated financial statements as dividends on preferred stock (which was outstanding until its redemption in the first quarter of 2025 ), such amounts which constituted deductible interest expense on debt for tax purposes. Our effective tax rates for the three and nine months ended September 30, 2024, are below the statutory rate principally due to the tax effects of our deduction of ( 1 ) amounts characterized in our condensed consolidated financial statements as dividends on preferred stock (which was outstanding at varying amounts in 2024 ), such amounts which constituted deductible interest expense on debt for tax purposes, and ( 2 ) exercises of stock options and the vesting of restricted stock at times when the fair value of our stock exceeded such share-based awards’ grant date values. Offsetting the foregoing items were ( 1 ) state and foreign income tax expense including the effects of law changes enacted in certain states in which we operate, ( 2 ) the tax effects of deduction disallowance under Section 162 (m) of the Code with respect to compensation paid to our covered employees and ( 3 ) taxes on global intangible low-taxed income. 10 Table of Contents We report interest expense associated with our income tax liabilities (including accrued liabilities for uncertain tax positions) within our income tax line item on our condensed consolidated statements of income. We likewise report within such line item the reversal of interest expense associated with our accrued liabilities for uncertain tax positions to the extent we resolve such liabilities in a manner favorable to our accruals therefor. Such interest expense was $ 135 thousand for the nine months ended September 30, 2025, and $ 140 thousand for the nine months ended September 30, 2024. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted into law. The OBBBA includes significant changes to existing U.S. federal and international tax provisions. We evaluated the impact of these provisions on our overall tax positions, and we do not anticipate a significant impact on our annual effective tax rate. Revenue Recognition and Revenue from Contracts with Customers Consumer Loans, Including Past Due Fees Consumer loans, including past due fees reflect interest income, including finance charges, and late fees on loans in accordance with the terms of the related customer agreements. These fees are recognized when assessed based upon the contractual terms of the loans. Discounts received associated with auto loans that are not included as part of our Fair Value Receivables are deferred and amortized over the average life of the related loans using the effective interest method. Finance charges and fees, net of amounts that we consider uncollectible, are included in loans, interest and fees receivable and revenue when the fees are earned based upon the contractual terms of the loans. Retail partner incentives such as fee reductions or rebates are recorded as a reduction to revenue over the period the incentives are earned. Merchant fees paid or received associated with the acquisition of Fair Value Receivables are recognized when the merchant confirms the transaction with us, which fulfills the terms of the associated merchant agreement. Our merchant agreements are defined at the transaction level and do not extend beyond the service already provided (i.e., each transaction is separate). We independently negotiate each agreement with separate counterparties and consider ourselves the principal in each agreement with our bank partners and retail partners. As such, we view the economic substance of our relationship with our retail partners as a service contract. The merchant fee is derived based on the value of the goods purchased from our retail partners and considers factors such as the consumer’s credit risk and the terms of our bank partners' related product offering. Our service comprises a single performance obligation to facilitate the transaction between the retail partner and its consumer and the merchant fee is recognized into income when the retail partner successfully confirms the transaction, as no remaining obligations exist under the contract. Fees and Related Income on Earning Assets Fees and related income on earning assets primarily include fees associated with credit products such as annual fees, cash advance fees, and other fees. These fees are assessed based upon the contractual terms of the loans. We recognize these fees as income when they are billed to the customers’ accounts. Fees and related income on earning assets, net of amounts that we consider uncollectible, are included in loans, interest and fees receivable and revenue when the fees are earned based upon the contractual terms of the loans. Other revenue Other revenue includes revenue from contracts with customers, which includes interchange revenues, servicing income, service charges and other customer related fees. We recognize these fees as income in the period earned. Other non-operating revenue Other non-operating income includes income (or loss) associated with investments in non-core businesses or other items not directly associated with our ongoing operations. None of these companies are publicly-traded and there are no material pending liquidity events. We will continue to carry the investments on our books at cost minus impairment, if any, plus or minus changes resulting from observable price changes. 11 Table of Contents Revenue from Contracts with Customers The majority of our revenue is earned from financial instruments and is not included within the scope of ASC 606, "Revenue from Contracts with Customers". We have determined that revenue from contracts with customers would primarily consist of merchant fees and interchange revenues in our CaaS segment and servicing revenue and other customer-related fees in both our CaaS segment and our Auto Finance segment. Interchange fees are earned when our customers’ cards are used over established card networks. We earn a portion of the interchange fee the card networks charge merchants for the transaction and these fees are settled daily. Additionally, within interchange revenues are network incentives which are earned when credit card transactions, associated with accounts we service, are processed through interchange networks. Servicing revenue is generated by meeting contractual performance obligations related to the collection of amounts due on receivables, and is settled with the customer net of our fee, which can be settled daily or monthly. Service charges and other customer related fees are earned from customers based on the occurrence of specific services and are paid by customers per the terms of their credit agreement. Merchant fees paid or received associated with the acquisition of Fair Value Receivables are recognized when the merchant confirms the transaction with us, which fulfills the terms of the associated merchant agreement. None of these revenue streams result in an ongoing obligation beyond what has already been rendered. Revenue from these contracts with customers is included in Consumer loans, including past due fees and Other revenue on our condensed consolidated statements of income. Components (in thousands) of our revenue from contracts with customers is as follows: For the Three Months Ended September 30, 2025 CaaS Auto Finance Total Interchange revenues, net (1) $ 8,551 $ — $ 8,551 Servicing income 6,606 181 6,787 Service charges and other customer related fees 15,210 6 15,216 Total Other revenue 30,367 187 30,554 Merchant fees (2) 54,610 — 54,610 Total revenue from contracts with customers $ 84,977 $ 187 $ 85,164 For the Nine Months Ended September 30, 2025 CaaS Auto Finance Total Interchange revenues, net (1) $ 19,230 $ — $ 19,230 Servicing income 16,016 516 16,532 Service charges and other customer related fees 36,831 23 36,854 Total Other revenue 72,077 539 72,616 Merchant fees (2) 150,733 — 150,733 Total revenue from contracts with customers $ 222,810 $ 539 $ 223,349 For the Three Months Ended September 30, 2024 CaaS Auto Finance Total Interchange revenues, net (1) $ 5,001 $ — $ 5,001 Servicing income 2,871 186 3,057 Service charges and other customer related fees 8,922 13 8,935 Total Other revenue 16,794 199 16,993 Merchant fees (2) 45,909 — 45,909 Total revenue from contracts with customers $ 62,703 $ 199 $ 62,902 For the Nine Months Ended September 30, 2024 CaaS Auto Finance Total Interchange revenues, net (1) $ 14,448 $ — $ 14,448 Servicing income 6,055 576 6,631 Service charges and other customer related fees 21,549 46 21,595 Total Other revenue 42,052 622 42,674 Merchant fees (2) 112,970 — 112,970 Total revenue from contracts with customers $ 155,022 $ 622 $ 155,644 ( 1 ) Interchange revenue is presented net of customer reward expense and includes network incentives for credit card transactions processed through interchange networks. ( 2 ) Merchant fees are included in Consumer loans, including past due fees on our condensed consolidated statements of income. 12 Table of Contents Asset Acquisitions The Company follows the guidance in ASC 805, "Business Combinations", for determining the appropriate accounting treatment for asset acquisitions. Accounting Standards Update ("ASU") 2017 - 01, "Clarifying the Definition of a Business", provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial screening test is not met, the set is considered a business based on whether there are inputs and substantive processes in place. Based on the results of this analysis and conclusion on an acquisition’s classification of a business combination or an asset acquisition, the accounting treatment is derived. If the acquisition is deemed to be a business, the purchase method of accounting is applied. Identifiable assets acquired and liabilities assumed at the acquisition date are recorded at fair value. If the transaction is deemed to be an asset acquisition, the cost accumulation and allocation model is used whereby the assets and liabilities are recorded based on the purchase price and allocated to the individual assets and liabilities based on relative fair values. See Note 2 "Acquisition of Mercury Financial LLC" for further discussion on our recent acquisition. Recent Accounting Pronouncements In July 2025, the Financial Accounting Standards Board ("FASB") issued ASU 2025 - 05, "Financial Instruments – Credit Losses (Topic 326 ): Measurement of Credit Losses for Accounts Receivable and Contract Assets", which improves transparency to provide all entities with a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. All entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The new guidance is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual periods. Early adoption is permitted. ASU 2025 - 05 is not expected to have a significant impact to the Company’s consolidated financial statements when adopted. In November 2024, the FASB issued ASU 2024 - 03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures" which requires disaggregated disclosure of income statement expenses for public business entities. The ASU does not change the expense captions an entity presents on the face of the income statement. Instead, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The amendments in this Update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027 and early adoption of the amendments is permitted. We are currently evaluating the potential impact of adopting this new guidance on our financial statement disclosures. In December 2023, the FASB issued ASU 2023 - 09, "Income Taxes (Topic 740 ): Improvements to Income Tax Disclosures" ("Topic 740" ). Topic 740 modifies the rules on income tax disclosures to require entities to disclose (i) specific categories in the rate reconciliation, (ii) the income (loss) from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (iii) income tax expense or benefit from continuing operations (separated by federal, state and foreign). Topic 740 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. This guidance should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the potential impact of adopting this new guidance on our financial statement disclosures. 13 Table of Contents 4. Segment Reporting We operate primarily within one industry consisting of two reportable segments by which we manage our business. Our two reportable segments are: CaaS and Auto Finance. The Company defines operating segments to be components of the Company for which discrete financial information is evaluated regularly by the Company’s Chief Executive Officer (our chief operating decision maker, "CODM") to allocate resources and evaluate financial performance. The CODM uses GAAP Income before income taxes to evaluate segment profitability as it provides the best insight into the segments overall economic performance. Income before income taxes is used regularly in the forecasting and budgeting process when assessing performance on a quarterly basis and making decisions about capital and personnel allocations. Our CaaS segment includes the operations of two operating segments aggregated into one reportable segment which includes our private label credit and our general purpose credit card receivables (including those general purpose credit card receivables acquired as part of our acquisition of Mercury), which, through our bank partners, provide financing solutions to consumers. Our Auto Finance reportable segment purchases and/or service loans secured by automobiles and provides other financing options to independent automotive dealers and automotive finance companies. These two reportable segments were determined by management based on the characteristics of the underlying products, management structures and expected returns. We have no material amounts of long lived assets located outside of the U.S. and all revenue is generated within the U.S. We measure the profitability of our reportable segments based on their income after allocation of specific costs and corporate overhead (Income before income taxes); however, our segment results do not reflect any charges for internal capital allocations among our segments. Company revenues, expenses and profitability are aggregated into these segments and presented to the CODM as detailed below. Overhead costs are allocated based on headcounts and other applicable measures to better align costs with the associated revenues. Income taxes are allocated to the individual segments whereby each operating segment determines income tax expense or benefit as if it filed a separate tax return. Reportable segment information (in thousands) is as follows: Three Months Ended September 30, 2025 CaaS Auto Finance Total Revenue and other income: Consumer loans, including past due fees $ 331,735 $ 9,428 $ 341,163 Fees and related income on earning assets 122,544 1,031 123,575 Other revenue 30,367 187 30,554 Total operating revenue and other income 484,646 10,646 495,292 Other non-operating income 7 ( 623 ) ( 616 ) Total revenue and other income 484,653 10,023 494,676 Interest expense ( 75,007 ) ( 457 ) ( 75,464 ) Provision for credit losses ( 555 ) ( 994 ) ( 1,549 ) Changes in fair value of loans ( 276,851 ) — ( 276,851 ) Net margin 132,240 8,572 140,812 Operating expenses: Salaries and benefits ( 16,863 ) ( 1,333 ) ( 18,196 ) Card and loan servicing ( 35,792 ) ( 3,232 ) ( 39,024 ) Marketing and solicitation ( 35,247 ) ( 54 ) ( 35,301 ) Depreciation ( 1,472 ) ( 19 ) ( 1,491 ) Other ( 13,291 ) ( 1,030 ) ( 14,321 ) Total operating expenses ( 102,665 ) ( 5,668 ) ( 108,333 ) Income before income taxes $ 29,575 $ 2,904 $ 32,479 Nine Months Ended September 30, 2025 CaaS Auto Finance Total Revenue and other income: Consumer loans, including past due fees $ 837,442 $ 27,726 $ 865,168 Fees and related income on earning assets 295,129 1,072 296,201 Other revenue 72,077 539 72,616 Total operating revenue and other income 1,204,648 29,337 1,233,985 Other non-operating income 20 — 20 Total revenue and other income 1,204,668 29,337 1,234,005 Interest expense ( 175,153 ) ( 1,525 ) ( 176,678 ) Provision for credit losses ( 769 ) ( 3,230 ) ( 3,999 ) Changes in fair value of loans ( 671,973 ) — ( 671,973 ) Net margin 356,773 24,582 381,355 Operating expenses: Salaries and benefits ( 43,282 ) ( 3,798 ) ( 47,080 ) Card and loan servicing ( 95,413 ) ( 9,848 ) ( 105,261 ) Marketing and solicitation ( 80,486 ) ( 98 ) ( 80,584 ) Depreciation ( 3,116 ) ( 57 ) ( 3,173 ) Other ( 28,510 ) ( 3,254 ) ( 31,764 ) Total operating expenses ( 250,807 ) ( 17,055 ) ( 267,862 ) Income before income taxes $ 105,966 $ 7,527 $ 113,493 Total assets $ 6,988,809 $ 90,923 $ 7,079,732 14 Table of Contents Three Months Ended September 30, 2024 CaaS Auto Finance Total Revenue and other income: Consumer loans, including past due fees $ 245,332 $ 10,057 $ 255,389 Fees and related income on earning assets 78,552 20 78,572 Other revenue 16,793 200 16,993 Total operating revenue and other income 340,677 10,277 350,954 Other non-operating income ( 31 ) 301 270 Total revenue and other income 340,646 10,578 351,224 Interest expense ( 41,803 ) ( 689 ) ( 42,492 ) Provision for credit losses — ( 4,633 ) ( 4,633 ) Changes in fair value of loans ( 203,739 ) — ( 203,739 ) Net margin 95,104 5,256 100,360 Operating expenses: Salaries and benefits ( 10,967 ) ( 1,332 ) ( 12,299 ) Card and loan servicing ( 24,739 ) ( 3,330 ) ( 28,069 ) Marketing and solicitation ( 14,813 ) ( 35 ) ( 14,848 ) Depreciation ( 637 ) ( 19 ) ( 656 ) Other ( 6,179 ) ( 1,023 ) ( 7,202 ) Total operating expenses ( 57,335 ) ( 5,739 ) ( 63,074 ) Income (loss) before income taxes $ 37,769 $ ( 483 ) $ 37,286 Nine Months Ended September 30, 2024 CaaS Auto Finance Total Revenue and other income: Consumer loans, including past due fees $ 697,385 $ 30,727 $ 728,112 Fees and related income on earning assets 185,921 62 185,983 Other revenue 42,052 622 42,674 Total operating revenue and other income 925,358 31,411 956,769 Other non-operating income 330 854 1,184 Total revenue and other income 925,688 32,265 957,953 Interest expense ( 113,165 ) ( 2,338 ) ( 115,503 ) Provision for credit losses — ( 9,323 ) ( 9,323 ) Changes in fair value of loans ( 549,161 ) — ( 549,161 ) Net margin 263,362 20,604 283,966 Operating expenses: Salaries and benefits ( 33,748 ) ( 3,836 ) ( 37,584 ) Card and loan servicing ( 72,409 ) ( 10,180 ) ( 82,589 ) Marketing and solicitation ( 38,745 ) ( 103 ) ( 38,848 ) Depreciation ( 1,908 ) ( 55 ) ( 1,963 ) Other ( 20,789 ) ( 3,483 ) ( 24,272 ) Total operating expenses ( 167,599 ) ( 17,657 ) ( 185,256 ) Income before income taxes $ 95,763 $ 2,947 $ 98,710 Total assets $ 2,945,030 $ 94,934 $ 3,039,964 5. Shareholders’ Equity and Preferred Stock During the three and nine months ended September 30, 2025 and 2024, we repurchased and contemporaneously retired 427 shares, 69,060 shares, 11,193 shares and 78,429 shares of our common stock at an aggregate cost of $ 0.0 million, $ 3.2 million, $ 0.3 million and $ 2.1 million, respectively, pursuant to both open market and private purchases and the return of stock by holders of equity incentive awards to pay tax withholding obligations. Preferred Stock Our preferred stock consists of 7.625 % Series B Cumulative Perpetual Preferred Stock (the "Series B preferred stock"), liquidation preference of $ 25.00 per share. We pay cumulative cash dividends on the Series B Preferred Stock, when and as declared by our Board of Directors, in the amount of $ 1.90625 per share each year, which is equivalent to 7.625 % of the $ 25.00 liquidation preference per share. No shares of Series B Preferred Stock were repurchased in the three and nine months ended September 30, 2025 and 2024. ATM Programs On August 10, 2022, we entered into an At Market Issuance Sales Agreement (the "Preferred Stock Sales Agreement") providing for the sale by the Company of up to an aggregate offering price of $ 100.0 million of our (i) Series B preferred stock and (ii) 6.125 % Senior Notes due 2026 (the "2026 Senior Notes") from time to time through a sales agent, in connection with the Company's Series B preferred stock and 2026 Senior Notes "at-the-market" offering program (the "Preferred Stock ATM Program"). On August 26, 2024, we amended and restated the Preferred Stock Sales Agreement to remove our 2026 Senior Notes and to include our 9.25 % Senior Notes due 2029 (the "2029 Senior Notes") in the Preferred Stock ATM Program. On December 29, 2023, the Company entered into an At-The-Market Sales Agreement (the "Common Stock Sales Agreement") providing for the sale by the Company of its common stock, no par value per share, up to an aggregate offering price of $ 50.0 million, from time to time to or through a sales agent, in connection with the Company’s common stock ATM Program ("Common Stock ATM Program"). Sales pursuant to both the Preferred Stock Sales Agreement and Common Stock Sales Agreement, if any, may be made in transactions that are deemed to be "at-the-market offerings" as defined in Rule 415 under the Securities Act of 1933, as amended (the "Securities Act"), including sales made directly on or through the NASDAQ Global Select Market. The sales agents will make all sales using commercially reasonable efforts consistent with their normal trading and sales practices up to the amount specified in, and otherwise in accordance with the terms of, the placement notices. 15 Table of Contents During the three and nine months ended September 30, 2025 and 2024, we sold 106,319 shares, 262,583 shares, 0 shares and 44,143 shares, respectively, of our Series B preferred stock under our Preferred Stock ATM Program for net proceeds of $ 2.3 million, $ 5.8 million, $ 0 and $ 1.1 million, respectively. During the three and nine months ended September 30, 2025 and 2024, no 2026 Senior Notes were sold under the Company's Preferred Stock ATM Program. During the three and nine months ended September 30, 2025 and 2024, we sold $ 5.6 million, $ 31.4 million, $ 13.5 million and $ 13.5 million, respectively, principal amount of our 2029 Senior Notes under our Preferred Stock ATM Program for net proceeds of $ 5.5 million, $ 30.8 million, $ 13.4 million and $ 13.4 million, respectively. During the three and nine months ended September 30, 2025 and 2024, we sold 0 common shares, 200,000 common shares, 0 common shares and 0 common shares, respectively, under the Company’s Common Stock ATM Program for net proceeds of $ 0 , $ 11.6 million, $ 0 and $ 0 , respectively. 6. Redeemable Preferred Stock On November 26, 2014, we and certain of our subsidiaries entered into a Loan and Security Agreement with Dove Ventures, LLC, a Nevada limited liability company ("Dove"). The agreement provided for a senior secured term loan facility in an amount of up to $ 40.0 million at any time outstanding. On December 27, 2019, the Company issued 400,000 shares of its Series A Preferred Stock with an aggregate initial liquidation preference of $ 40.0 million, in exchange for full satisfaction of the $ 40.0 million that the Company owed Dove under the Loan and Security Agreement. Dividends on the preferred stock are 6 % per annum (cumulative, non-compounding) and are payable as declared, and in preference to any dividends on common stock and Series B preferred stock, in cash. The Series A Preferred Stock is perpetual and has no maturity date. The Company may, at its option, redeem the shares of Series A Preferred Stock at a redemption price equal to $ 100 per share, plus any accumulated and unpaid dividends. At the request of holders of a majority of the shares of Series A Preferred Stock, the Company shall offer to redeem all of the Series A Preferred Stock at a redemption price equal to $100 per share, plus any accumulated and unpaid dividends, at the option of the holders thereof. Upon the election by the holders of a majority of the shares of Series A Preferred Stock, each share of the Series A Preferred Stock is convertible into the number of shares of the Company’s common stock as is determined by dividing (i) the sum of (a) $100 and (b) any accumulated and unpaid dividends on such share by (ii) an initial conversion price equal to $ 10 per share, subject to certain adjustment in certain circumstances to prevent dilution. Given the redemption rights contained within the Series A Preferred Stock, we account for the outstanding preferred stock as temporary equity in the condensed consolidated balance sheets. Dividends paid on the Series A Preferred Stock are deducted from Net income attributable to controlling interests to derive Net income attributable to common shareholders. The common stock issuable upon conversion of Series A Preferred Stock is included in our calculation of Net income attributable to common shareholders per share—diluted. See Note 12, "Net Income Attributable to Controlling Interests Per Common Share" for more information. Dove is a limited liability company owned by three trusts. David G. Hanna is the sole shareholder and the President of the corporation that serves as the sole trustee of one of the trusts, and David G. Hanna and members of his immediate family are the beneficiaries of this trust. Frank J. Hanna, III is the sole shareholder and the President of the corporation that serves as the sole trustee of the other two trusts, and Frank J. Hanna, III and members of his immediate family are the beneficiaries of these other two trusts. On November 14, 2019, a wholly-owned subsidiary issued 50.5 million Class B preferred units at a purchase price of $ 1.00 per unit to an unrelated third party. The units carried a 16 % preferred return to be paid quarterly. In March 2020, the subsidiary issued an additional 50.0 million Class B preferred units under the same terms. The proceeds from the transaction were used for general corporate purposes. During the year ended December 31, 2024, we redeemed 50.5 million of the Class B preferred units at $ 1.00 per unit plus accrued but unpaid interest thereon. In March 2025, we redeemed the remaining 50.0 million of Class B preferred units at $ 1.00 per unit plus accrued but unpaid interest thereon. In periods where present, we have included the issuance of these Class B preferred units as temporary noncontrolling interest on the condensed consolidated balance sheets. Dividends paid on the Class B preferred units were deducted from Net income attributable to controlling interests to derive Net income attributable to common shareholders. See Note 12, "Net Income Attributable to Controlling Interests Per Common Share" for more information. 7. Fair Values of Assets and Liabilities Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We update our fair value analysis each quarter, with changes since the prior reporting period reflected as a component of "Changes in fair value of loans" in the condensed consolidated statements of income. Changes in yields, purchase and payment rates, servicing rates, realized and projected credit loss rates and discount rates will lead to changes in the fair value of loans and therefore impact earnings. Further, our retail asset typically has seasonal growth during the summer months, impacting the fair value of assets. Fair value differs from amortized cost accounting in the following ways: • Receivables are recorded at their fair value, not their principal and fee balance or cost basis; • The fair value of the loans takes into consideration net charge-offs for the remaining life of the loans with no separate allowance for credit loss calculation; • Certain fee billings (such as non-refundable annual fees) and expenses of loans are no longer deferred but recognized (when billed or incurred) in income or expense, respectively; • The net present value of cash flows associated with future fee billings on existing receivables are included in fair value; • Changes in the fair value of loans impact net margins; and • Net charge-offs are recognized as they occur rather than through the establishment of an allowance and provision for credit losses for those loans, interest and fees receivable carried at amortized cost. For receivables that are carried at net amortized cost, we include disclosures of the fair value of such receivables to the extent practicable within the disclosures below. Where applicable, we account for our financial assets and liabilities at fair value based upon a three -tiered valuation system. In general, fair values determined by Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Fair values determined by Level 2 inputs use inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. Where inputs used to measure fair value may fall into different levels of the fair value hierarchy, the level in the fair value hierarchy within which the fair value measurement in its entirety has been determined is based on the lowest level input that is significant to the fair value measurement in its entirety. 16 Table of Contents Valuations and Techniques for Assets Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The table below summarizes (in thousands) by fair value hierarchy the September 30, 2025 and December 31, 2024 fair values and carrying amounts of ( 1 ) our assets that are carried at fair value in our condensed consolidated financial statements and ( 2 ) our assets not carried at fair value, but for which fair value disclosures are required: Assets – As of September 30, 2025 (1) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Amount of Assets Loans at amortized cost, net for which it is practicable to estimate fair value and which are carried at net amortized cost $ — $ — $ 100,062 $ 85,004 Loans at fair value $ — $ — $ 6,350,009 $ 6,350,009 ( 1 ) For cash, deposits and investments in equity securities, the carrying amount is a reasonable estimate of fair value. Assets – As of December 31, 2024 (1) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Amount of Assets Loans at amortized cost, net for which it is practicable to estimate fair value and which are carried at net amortized cost $ — $ — $ 95,871 $ 84,332 Loans at fair value $ — $ — $ 2,630,274 $ 2,630,274 ( 1 ) For cash, deposits and investments in equity securities, the carrying amount is a reasonable estimate of fair value. For those asset classes above that are carried at fair value in our condensed consolidated financial statements, gains and losses associated with fair value changes are detailed on our condensed consolidated statements of income as a component of Changes in fair value of loans. Variations in the three month U.S. Treasury bill rate over the measurement period are used to determine the portion of change in fair value considered to be attributable to changes in instrument-specific credit risk. These variations are applied to the period end discount rate we use to determine fair value. For our loans included in the above table, we assess the fair value of these assets based on our estimate of future cash flows net of servicing costs. For the nine months ended September 30, 2025 and 2024, we estimate the portion of fair value changes considered to be attributable to changes in instrument-specific credit risk to be $ 8.9 million and $ 11.3 million, respectively. 17 Table of Contents For Level 3 assets carried at fair value measured on a recurring basis using significant unobservable inputs, the following table presents (in thousands) a reconciliation of the beginning and ending balances for the nine months ended September 30, 2025 and 2024: Loans at Fair Value 2025 2024 Balance at January 1, $ 2,630,274 $ 2,173,759 Acquisition of Mercury receivables at fair value 3,009,018 - Changes in fair value of loans at fair value, included in earnings 5,087 101,035 Changes in fair value due to current period principal charge-offs, net of recoveries (1) ( 460,074 ) ( 463,076 ) Changes in fair value due to current period finance and fee charge-offs (1) ( 216,986 ) ( 187,120 ) Total Changes in fair value of loans (2) ( 671,973 ) ( 549,161 ) Purchases 2,700,743 1,969,259 Finance and fees, added to the account balance 1,004,913 785,847 Settlements ( 2,322,966 ) ( 1,868,085 ) Balance at September 30,(3) $ 6,350,009 $ 2,511,619 Aggregate unpaid gross balance of loans carried at fair value $ 6,600,135 $ 2,654,112 Change in unrealized losses for the period included in earnings (or changes in net assets) for assets held at the end of the period $ 5,087 $ 101,035 ( 1 ) Reflects the current period charge-offs (net of recoveries) of loans at fair value. ( 2 ) Total Changes in fair value of loans is included in our condensed consolidated statements of income. ( 3 ) As of September 30, 2025 and September 30, 2024, the aggregate unpaid principal balance included within loans at fair value was $ 6,199 million and $ 2,420 million, respectively. The unrealized gains and losses for assets within the Level 3 category presented in the tables above include changes in fair value that are attributable to both observable and unobservable inputs. Loans at Fair Value. The fair value of Loans at fair value is based on the present value of future cash flows using a valuation model of expected cash flows and the estimated cost to service and collect those cash flows. We estimate the present value of these future cash flows using internally-developed estimates of assumptions third -party market participants would use in determining fair value, including estimates of credit losses, payment rates, servicing costs, discount rates and yields earned on private label credit and general purpose credit card receivables. We forecast the cash flows underlying our fair value assessment based on the individual offer type (in the case of general purpose credit cards) or by specific offers at our retail partners (for private label credit). While overall product return requirements among the offer types may be similar, the individual product offerings necessary to achieve those returns is often unique to each offer and retailer based on several factors, including acceptance rates of the offers by consumers and underlying consumer performance data which varies by offer type. Our fair value models include market degradation to reflect the possibility of delinquency rates increasing in the near term (and the corresponding increase in charge-offs and decrease in payments) above the level that current trends would suggest. The fair value of loans we acquire associated with our retail partners are typically lower than the aggregate unpaid gross balance of the underlying loans due to loan originations by our bank partners that contain below market interest rates or fees charged to consumers. Under agreements with our bank partners, we are required to purchase these receivables for amounts that may be in excess of fair value. In these instances, a fair value assessment that is less than the purchase price of the receivable can occur on the date we initially acquire the receivable, resulting in a loss on acquisition of the receivable. This negative fair value assessment is included in Changes in fair value of loans on our condensed consolidated statements of income. In cases where we acquire these below market receivables, we charge merchant fees to our retail partners to facilitate the transaction and ensure we earn adequate returns. These merchant fees are based on the value of the goods purchased from our retail partners, the consumer’s credit risk and the terms of our bank partners' related product offering. These fees are recognized upon completion of our services, which coincides with the funding of the loan by our bank partners, in Consumer loans, including past due fees on our condensed consolidated statements of income. These merchant fees often offset the negative impact of the initial acquisition of the underlying receivable. As such, it is not always necessary for us to collect the aggregate unpaid gross balance of the underlying receivable to achieve desired returns. 18 Table of Contents Valuations and Techniques for Liabilities Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the liability. The table below summarizes (in thousands) by fair value hierarchy the September 30, 2025 and December 31, 2024 fair values and carrying amounts of our liabilities not carried at fair value, but for which fair value disclosures are required: Liabilities – As of September 30, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Amount of Liabilities Loan purchase commitment $ — $ — $ 646 $ 646 Bank partner fees carried at fair value $ — $ — $ 17,469 $ 17,469 Contingent consideration $ — $ — $ 40,000 $ 40,000 Liabilities not carried at fair value Revolving credit facilities $ — $ — $ 5,385,144 $ 5,327,351 Amortizing debt facilities $ — $ — $ 5,329 $ 5,329 Senior notes, net $ 327,730 $ — $ 392,000 $ 702,376 Liabilities – As of December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Carrying Amount of Liabilities Loan purchase commitment $ — $ — $ 285 $ 285 Bank partner fees carried at fair value $ — $ — $ 13,644 $ 13,644 Contingent consideration $ — $ — $ — $ — Liabilities not carried at fair value Revolving credit facilities $ — $ — $ 2,149,933 $ 2,193,993 Amortizing debt facilities $ — $ — $ 5,455 $ 5,455 Senior notes, net $ 281,703 $ — $ — $ 281,552 Bank partner fees carried at fair value in accordance with ASC 815, reflect the estimated fair value of future compensation we owe our bank partners associated with the regulatory oversight and other services they provide on our acquired receivables, the underlying accounts of which they continue to own and service. This compensation is based on both a fixed and variable component, dependent on the underlying performance of the acquired receivables. We estimate the present value of this compensation using internally-developed estimates of payment rates and discount rates. We recognize the fair value of these Bank partner fees within Card and loan servicing on the accompanying condensed consolidated statements of income on the date we acquire the underlying receivable. Additionally, as part of our acquisition of Mercury, the seller has the opportunity under the purchase agreement to receive earn out payments for up to three years following the closing of the acquisition in an amount equal to 75 % of the amount by which the charge-offs of Mercury’s acquired receivables are less than agreed-upon charge-off levels. We have determined the contingent consideration meets the definition of a derivative instrument under ASC 815. We have recorded the derivative at fair value within Accounts payable and accrued expenses on the accompanying condensed consolidated balance sheets, calculated using internally-developed estimates. These estimates on performance of the acquired portfolio include expected credit losses, payment rates, servicing costs, discount rates and yields earned on our general purpose credit card receivables. For our credit and debt facilities where market prices are not available, we assess the fair value of these liabilities based on our estimate of future cash flows generated from their underlying credit card receivables collateral, net of servicing compensation required under the note facilities. We have evaluated the fair value of our third party debt by analyzing repayment terms and credit spreads included in our recent financing arrangements to those of our existing facilities. See Note 10, "Notes Payable," for further discussion on our other notes payable. 19 Table of Contents Other Relevant Data Other relevant data (in thousands) as of September 30, 2025 and December 31, 2024 concerning certain assets we carry at fair value are as follows: Loans at Fair Value Pledged as Collateral under Structured Financings As of September 30, 2025 As of December 31, 2024 Aggregate unpaid gross balance of loans carried at fair value $ 6,600,135 $ 2,724,782 Aggregate unpaid principal balance included within loans at fair value $ 6,198,693 $ 2,472,999 Aggregate fair value of loans at fair value $ 6,350,009 $ 2,630,274 Aggregate fair value of loans at fair value that are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) $ 47,635 $ 32,781 Unpaid principal balance of loans at fair value and are 90 days or more past due (which also coincides with finance charge and fee non-accrual policies) over the fair value of such loans, interest and fees receivable $ 264,254 $ 145,099 8. Variable Interest Entities The Company contributes the vast majority of receivables to VIEs. These entities are sometimes established to facilitate third party financing. When assets are contributed to a VIE, they serve as collateral for the debt securities issued by that VIE. The evaluation of whether the entity qualifies as a VIE is based upon the sufficiency of the equity at risk in the legal entity. This evaluation is generally a function of the level of excess collateral in the legal entity. We consolidate VIEs when we hold a variable interest and we have exposure to loss that has the potential to be significant and therefore, are the primary beneficiary. Through our role as servicer, we have the responsibility to service the receivables (in accordance with defined servicing procedures on behalf of our bank partner), and as such, have the ability to significantly impact the economic performance of those VIEs. In certain circumstances we guarantee the performance of the underlying debt or agree to contribute additional collateral when necessary, which results in retention of exposure to loss that has the potential to be significant. As a result, the Company is the primary beneficiary and consolidates the VIEs. When collateral is pledged, it is not available for the general use of the Company and can only be used to satisfy the related debt obligation. The results of operations and financial position of consolidated VIEs are included in our condensed consolidated financial statements. The Company consolidates all VIEs. The following table presents a summary of VIEs in which we had continuing involvement and held a variable interest (in millions): As of September 30, 2025 December 31, 2024 Unrestricted cash and cash equivalents $ 170.5 $ 140.2 Restricted cash and cash equivalents 73.6 98.8 Loans at fair value 6,200.6 2,542.9 Total Assets held by VIEs $ 6,444.7 $ 2,781.9 Notes Payable, net held by VIEs $ 5,297.8 $ 2,128.0 20 Table of Contents 9. Leases We have operating leases primarily associated with our corporate offices, ancillary office locations associated with our recent acquisition of Mercury and regional service centers. Additionally, we have operating leases for certain equipment. Our leases have remaining lease terms of 1 to 10 years, some of which include options, at our discretion, to extend the leases for additional periods generally on one -year revolving periods. Other leases allow for us to terminate the lease based on appropriate notification periods. For certain of our leased offices, we sublease a portion of the unoccupied space. The components of lease expense associated with our lease liabilities and supplemental cash flow information related to those leases were as follows (dollar amounts in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Operating lease cost, gross $ 866 $ 635 $ 2,452 $ 1,899 Sublease income ( 25 ) ( 25 ) ( 74 ) ( 73 ) Net Operating lease cost $ 841 $ 610 $ 2,378 $ 1,826 Cash paid under operating leases, gross $ 748 $ 754 $ 2,278 $ 2,253 Weighted average remaining lease term - months 97 113 Weighted average discount rate 6.7 % 6.7 % As of September 30, 2025 , scheduled payments of lease liabilities were as follows (in thousands): Gross Lease Payment Payments received from Sublease Net Lease Payment 2025 (Remainder of 2025) $ 1,149 $ ( 25 ) $ 1,124 2026 5,075 ( 42 ) 5,033 2027 4,336 — 4,336 2028 3,708 — 3,708 2029 3,511 — 3,511 Thereafter 16,742 — 16,742 Total lease payments 34,521 ( 67 ) 34,454 Less imputed interest ( 8,597 ) Operating lease liabilities $ 25,924 As part of our recent acquisition of Mercury, we assumed two separate operating leases for offices in Wilmington, Delaware and Austin, Texas. The leases cover approximately 30,000 square feet and have remaining terms of approximately 1 and 2 years. Obligations under these leases are included in the tables above. In August 2021, we entered into an operating lease agreement for our corporate headquarters in Atlanta, Georgia (the "Headquarters lease") with an unaffiliated third party. This Headquarters lease initially covered approximately 73,000 square feet and commenced in June 2022 for a 146 month term. In connection with the commencement of this lease, we discontinued most of the subleasing arrangements with third parties for space at our corporate headquarters. A right-of-use asset and liability was recorded at the commencement date of this lease. We exercised an expansion right under the Headquarters lease to add an additional 26,133 square feet (the "Expansion space") at our corporate headquarters. The Expansion space term commenced on December 23, 2024. The Expansion space co-terminates with the Headquarters lease. The other lease terms for the Expansion space are the same as those for the initial space leased under the Headquarters lease. The total remaining commitment under the Headquarters lease and Expansion space lease is approximately $ 30.8 million and is included in the table above. In addition, we occasionally lease certain equipment under cancelable and non-cancelable leases, which are accounted for as capital leases in our condensed consolidated financial statements. As of September 30, 2025, we had no material non-cancelable capital leases with initial or remaining terms of more than one year. 21 Table of Contents 10. Notes Payable Notes Payable, at Face Value Other notes payable outstanding as of September 30, 2025 and December 31, 2024 that are secured by the financial and operating assets of either the borrower, another of our subsidiaries or both, include the following, scheduled (in millions); except as otherwise noted, the assets of our holding company (Atlanticus Holdings Corporation) are subject to creditor claims under these scheduled facilities: As of September 30, 2025 December 31, 2024 Revolving credit facilities at a weighted average interest rate equal to 7.4 % as of September 30, 2025 ( 7.0 % as of December 31, 2024) secured by the financial and operating assets of CAR and/or certain receivables and restricted cash with a combined aggregate carrying amount of $ 6,358.7 million as of September 30, 2025 ($ 2,723.5 million as of December 31, 2024) Revolving credit facility, not to exceed $ 65.0 million (expiring December 1, 2026 ) (1) (2) (3) $ 30.1 $ 36.1 Revolving credit facility, not to exceed $ 50.0 million (expiring October 30, 2026 ) (2) (3) (4) (5) — 49.8 Revolving credit facility, not to exceed $ 100.0 million (expiring May 15, 2026 ) (2) (3) (4) (5) (6) — — Revolving credit facility, not to exceed $ 75.0 million (expiring July 20, 2026 ) (2) (3) (4) (5) 52.9 74.6 Revolving credit facility, not to exceed $ 40.0 million (expiring April 7, 2028 ) (2) (3) (4) (5) 14.6 14.5 Revolving credit facility, not to exceed $ 75.0 million (expiring March 31, 2028 ) (2) (3) (4) (5) 57.7 50.0 Revolving credit facility, not to exceed $ 250.0 million (expiring December 15, 2026 ) (3) (4) (5) (6) 250.0 300.0 Revolving credit facility, repaid in May 2025 — 283.3 Revolving credit facility, not to exceed $ 325.0 million (expiring November 15, 2028 ) (2) (3) (4) (5) (6) 325.0 325.0 Revolving credit facility, not to exceed $ 158.3 million (expiring August 5, 2027 ) (2) (3) (4) (5) (6) 31.7 — Revolving credit facility, repaid in July 2025 — 100.0 Revolving credit facility, not to exceed $ 25.0 million (expiring August 30, 2027 ) (2) (3) (4) (5) — 12.5 Revolving credit facility, not to exceed $ 300.0 million (expiring February 15, 2028 ) (3) (4) (5) (6) 300.0 300.0 Revolving credit facility, not to exceed $ 150.0 million (expiring May 17, 2027 ) (3) (4) (5) (6) 150.0 150.0 Revolving credit facility, not to exceed $ 250.0 million (expiring November 15, 2028 ) (3) (4) (5) (6) 250.0 250.0 Revolving credit facility, not to exceed $ 150.0 million (expired April 28, 2025 ) (2) (3) (4) (5) (6) — 140.0 Revolving credit facility, not to exceed $ 32.8 million (expired April 28, 2025 ) (2) (3) (4) — 30.0 Revolving credit facility, not to exceed $ 100.0 million (expiring January 16, 2029 ) (3) (4) (5) (6) 100.0 100.0 Revolving credit facility, not to exceed $ 200.0 million (expiring September 15, 2028 ) (3) (4) (5) (6) 200.0 — Revolving credit facility, not to exceed $ 200.0 million (expiring September 15, 2027 ) (3) (4) (5) (6) 100.0 — Revolving credit facility, not to exceed $ 350.0 million (expiring July 16, 2029 ) (3) (4) (5) (6) 350.0 — Revolving credit facility, not to exceed $ 125.0 million (expiring January 15, 2030 ) (3) (4) (5) (6) 125.0 — Revolving credit facility, not to exceed $ 200.0 million (expiring February 15, 2029 ) (3) (4) (5) (6) 200.0 — Revolving credit facility, not to exceed $ 361.9 million (expiring March 31, 2028 ) (2) (3) (4) (5) (6) 295.0 — Revolving credit facility, not to exceed $ 379.1 million (expiring July 1, 2029 ) (3) (4) (5) (6) 159.0 — Revolving credit facility, not to exceed $ 750.0 million (expiring February 20, 2029 ) (3) (4) (5) (6) 750.0 — Revolving credit facility, not to exceed $ 700.0 million (expiring July 20, 2029 ) (3) (4) (5) (6) 700.0 — Revolving credit facility, not to exceed $ 250.0 million (expiring November 20, 2026 ) (3) (4) (5) (6) 250.0 — Revolving credit facility, not to exceed $ 374.0 million (expiring April 20, 2029 ) (3) (4) (5) (6) 159.0 — Revolving credit facility, not to exceed $ 500.0 million (expiring June 21, 2027 ) (3) (4) (5) (6) 500.0 — Other facilities Other debt 5.3 5.5 Total notes payable before unamortized debt issuance costs and discounts 5,355.3 2,221.3 Unamortized debt issuance costs and discounts ( 22.6 ) ( 21.9 ) Total notes payable outstanding, net $ 5,332.7 $ 2,199.4 ( 1 ) Loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could result in required early repayment of all or a portion of the outstanding balance by our CAR Auto Finance operations. ( 2 ) These notes reflect modifications to either extend the maturity date, increase the loan amount or both, and are treated as accounting modifications. ( 3 ) See below for additional information. ( 4 ) Loans are subject to certain affirmative covenants tied to default rates and other performance metrics the failure of which could result in required early repayment of the remaining unamortized balances of the notes. ( 5 ) Loans are associated with VIEs. See Note 8, "Variable Interest Entities" for more information. ( 6 ) Creditors do not have recourse against the general assets of the Company but only to the collateral within the VIEs. 22 Table of Contents As of September 30, 2025 , the Prime Rate was 7.25 %, the Term Secured Overnight Financing Rate ("Term SOFR") was 4.13 % and the Secured Overnight Financing Rate ("SOFR") was 4.24 %. In October 2015, we (through a wholly owned subsidiary) entered a revolving credit facility with a (as subsequently amended) $ 50.0 million revolving borrowing limit that can be drawn to the extent of outstanding eligible principal receivables (of which $ 0 was drawn as of September 30, 2025). This facility is secured by the loans, interest and fees receivable and related restricted cash and accrues interest at an annual rate equal to SOFR plus 3.0 %. The facility matures on October 30, 2026 and is subject to certain affirmative covenants, including a liquidity test and an eligibility test, the failure of which could result in required early repayment of all or a portion of the outstanding balance. The facility is guaranteed by Atlanticus, which is required to maintain certain minimum liquidity levels. In October 2016, we (through a wholly owned subsidiary) entered a revolving credit facility available to the extent of outstanding eligible principal receivables of our CAR subsidiary (of which $ 30.1 million was drawn as of September 30, 2025 ). This facility is secured by the financial and operating assets of CAR and accrues interest at an annual rate equal to SOFR plus a range between 2.25 % and 2.6 % based on certain ratios. The loan is subject to certain affirmative covenants, including a coverage ratio, a leverage ratio and a collateral performance test, the failure of which could result in required early repayment of all or a portion of the outstanding balance. In periods subsequent to October 2016, we amended the original agreement to either extend the maturity date and/or expand the capacity of this revolving credit facility. As of September 30, 2025, the facility's borrowing limit was $ 65.0 million and the facility matures on December 1, 2026. There were no other material changes to the existing terms or conditions as a result of these amendments and the new maturity date and borrowing limit are reflected in the table above. In December 2017, we (through a wholly owned subsidiary) entered a revolving credit facility with a (as subsequently amended) $ 75.0 million revolving borrowing limit that is available to the extent of outstanding eligible principal receivables (of which $ 52.9 million was drawn as of September 30, 2025). This facility is secured by the loans, interest and fees receivable and related restricted cash and accrues interest at an annual rate equal to Term Secured Overnight Financing Rate ("Term SOFR") plus 3.6 %. An amendment was completed in December 2024 that extended the maturity to July 20, 2026. There were no other material changes to the existing terms. The facility is subject to certain affirmative covenants, including payment, delinquency and charge-off tests, the failure of which could result in required early repayment of all or a portion of the outstanding balance. The note is guaranteed by Atlanticus. In 2018, we (through a wholly owned subsidiary) entered a revolving credit facility to sell up to an aggregate $ 100.0 million of notes that are secured by the receivables and other assets of the trust (of which $ 0 was outstanding as of September 30, 2025) that can be drawn upon to the extent of outstanding eligible receivables. The interest rate on the notes equals the SOFR plus 3.75 %. The facility matures on May 15, 2026, and is subject to certain affirmative covenants and collateral performance tests, the failure of which could result in required early repayment of all or a portion of the outstanding balance of notes. As of September 30, 2025, the aggregate borrowing limit was $ 100.0 million. In June 2019, we (through a wholly owned subsidiary) entered a revolving credit facility with a (as subsequently amended) $ 40.0 million revolving borrowing limit that is available to the extent of outstanding eligible principal receivables (of which $ 14.6 million was drawn as of September 30, 2025). This facility is secured by the loans, interest and fees receivable and related restricted cash and accrues interest at an annual rate equal to the Term SOFR plus 2.85 %. The facility matures on April 7, 2028. The note is guaranteed by Atlanticus. In January 2021, we (through a wholly owned subsidiary) entered a revolving credit facility with a (as subsequently amended) $ 75.0 million borrowing limit (of which $ 57.7 million was drawn as of September 30, 2025) that is available to the extent of outstanding eligible principal receivables. This facility is secured by the loans, interest and fees receivable and related restricted cash and accrues interest at an annual rate equal to the greater of the Prime Rate or 4 %. The facility matures on March 31, 2028 and is subject to certain affirmative covenants, including a liquidity test and an eligibility test, the failure of which could result in required early repayment of all or a portion of the outstanding balance. The note is guaranteed by Atlanticus, which is required to maintain certain minimum liquidity levels. In June 2021, we (through a wholly owned subsidiary) sold $ 300.0 million of Asset backed securities ("ABS") secured by certain credit card receivables (expiring May 15, 2026 through December 15, 2026). The terms of the ABS allow for a four -year revolving structure with a subsequent 11 -month to 18 -month amortization period. The weighted average interest rate on the securities is fixed at 4.24 %. The ABS is currently in a scheduled amortization period. In November 2021, we (through a wholly owned subsidiary) sold $ 300.0 million of ABS secured by certain credit card receivables (expiring May 15, 2026). The terms of the ABS allowed for a three -year revolving structure with a subsequent 18 -month amortization period. The weighted average interest rate on the securities was fixed at 3.53 %. The facility was repaid in May 2025. In May 2022, we (through a wholly owned subsidiary) entered a (as subsequently amended) $ 325.0 million ABS agreement (of which $ 325.0 million was drawn as of September 30, 2025) secured by certain credit card receivables (expiring November 15, 2028). The terms of the ABS allow for a five -year revolving structure with a subsequent 18 -month amortization period. The weighted average interest rate on the securities is fixed at 6.33 %. 23 Table of Contents In August 2022, we (through a wholly owned subsidiary) entered a (as subsequently amended) $ 158.3 million ABS agreement secured by certain credit card receivables (of which $ 31.7 million was outstanding as of September 30, 2025) that can be drawn upon to the extent of outstanding eligible receivables. The interest rate on the notes is based on the Term SOFR plus a range between 1.80 % and 6.85 % based on class of notes. The facility matures on (as subsequently amended) August 5, 2027. In September 2022, we (through a wholly owned subsidiary) sold $ 100.0 million of ABS secured by certain private label credit receivables (expiring March 15, 2027). A portion of the proceeds from the sale was used to pay down other revolving facilities associated with our private label credit receivables, noted above, and the remaining proceeds have been invested in the acquisition of receivables. The terms of the ABS allowed for a 3 -year revolving structure with an 18 -month amortization period. The weighted average interest rate on the securities was fixed at 7.32 %. The facility was repaid in July 2025. In May 2023, we (through a wholly owned subsidiary) entered a revolving credit facility with a (as subsequently amended) $ 25.0 million revolving borrowing limit that is available to the extent of outstanding eligible principal receivables (of which $ 0 was drawn as of September 30, 2025). This facility is secured by the loans, interest and fees receivable and related restricted cash and accrues interest at an annual rate equal to the Term SOFR plus 3.75 %. The facility matures on (as subsequently amended) August 30, 2027 and is subject to certain covenants and restrictions of which the failure could result in required early repayment of all or a portion of the outstanding balance. The note is guaranteed by Atlanticus. In September 2023, we (through a wholly owned subsidiary) sold $ 300.0 million of ABS secured by certain credit card receivables (expiring February 15, 2028). A portion of the proceeds from the sale was used to pay down other facilities associated with our credit card receivables, noted above, and the remaining proceeds have been invested in the acquisition of receivables. The terms of the ABS allow for a three -year revolving structure with a subsequent 18 -month amortization period. The weighted average interest rate on the securities is fixed at 9.51 %. In November 2023, we (through a wholly owned subsidiary) sold $ 150.0 million of ABS secured by certain private label credit receivables (expiring May 17, 2027). A portion of the proceeds from the sale was used to pay down other revolving facilities associated with our private label credit receivables, noted above, and the remaining proceeds have been invested in the acquisition of receivables. The terms of the ABS allow for a 2 -year revolving structure with an 18 -month amortization period. The weighted average interest rate on the securities is fixed at 9.39 %. In May 2024, we (through a wholly owned subsidiary) sold $ 250.0 million of ABS secured by certain private label credit receivables (expiring November 15, 2028). A portion of the proceeds from the sale was used to pay down other revolving facilities associated with our private label credit receivables, noted above, and the remaining proceeds were invested in the acquisition of receivables. The terms of the ABS allow for a 3 -year revolving structure with an 18 -month amortization period. The weighted average interest rate on the securities is fixed at 8.86 %. In July 2024, we (through a wholly owned subsidiary) sold $ 150.0 million of ABS secured by certain private label credit receivables. The facility matured on (as subsequently amended) April 28, 2025. The proceeds were invested in the acquisition of receivables. This facility was secured by the loans, interest and fees receivable and related restricted cash and accrued interest at an annual rate equal to the Term SOFR plus 2.15 %. In conjunction with this financing, we (through a wholly owned subsidiary) also entered a revolving credit facility with a $ 32.8 million revolving limit. The facility matured on (as subsequently amended) April 28, 2025. This facility was secured by related restricted cash and accrued interest at an annual rate equal to the Term SOFR plus 2.5 %. In December 2024, we (through a wholly owned subsidiary) sold $ 100.0 million of ABS secured by certain credit card receivables (expiring January 16, 2029). The terms of the ABS allow for a 30 -month revolving structure with a subsequent 18 -month amortization period. The weighted average interest rate on the securities is fixed at 7.78 %. In March 2025, we (through a wholly owned subsidiary) sold $ 200.0 million of ABS secured by certain private label credit receivables (expiring September 15, 2028). A portion of the proceeds from the sale was used to pay down other revolving facilities associated with our private label credit receivables, noted above, and the remaining proceeds were invested in the acquisition of receivables. The terms of the ABS allow for a 25 -month revolving structure with an 18 -month amortization period. The interest rate on the securities is fixed at 6.60 %. In March 2025, we (through a wholly owned subsidiary) entered a $ 200.0 million ABS agreement secured by certain private label credit card receivables (of which $ 100.00 million was outstanding as of September 30, 2025) that can be drawn upon to the extent of outstanding eligible receivables. The interest rate on the notes is based on a commercial paper rate plus 2.00 %. The facility matures on September 15, 2027. In May 2025, we (through a wholly owned subsidiary) sold $ 350.0 million of ABS secured by certain credit card receivables (expiring July 16, 2029). A portion of the proceeds from the sale was used to pay down other revolving facilities associated with our credit credit receivables, noted above, and the remaining proceeds were invested in the acquisition of receivables. The terms of the ABS allow for a 32 -month revolving structure with an 18 -month amortization period. The weighted average interest rate on the securities is fixed at 6.76 %. In July 2025, we (through a wholly owned subsidiary) sold $ 125.0 million of ABS secured by certain private label credit receivables (expiring January 15, 2030). A portion of the proceeds from the sale was used to pay down other revolving facilities associated with our private label credit receivables, noted above, and the remaining proceeds were invested in the acquisition of receivables. The terms of the ABS allow for a 3 -year revolving structure with an 18 -month amortization period. The weighted average interest rate on the securities is fixed at 6.74 %. In August 2025, we (through a wholly owned subsidiary) sold $ 200.0 million of ABS secured by certain private label credit receivables (expiring February 15, 2029). A portion of the proceeds from the sale was used to pay down other revolving facilities associated with our private label credit receivables, noted above, and the remaining proceeds were invested in the acquisition of receivables. The terms of the ABS allow for a 25 -month revolving structure with an 18 -month amortization period. The interest rate on the securities is fixed at 5.82 %. As part of our acquisition of Mercury, we assumed outstanding notes payable which are collateralized by the associated acquired receivables. Following are descriptions of the assumed notes payable. Revolving credit facility to sell up to an aggregate (as subsequently amended) $ 361.9 million of notes that are secured by the receivables and other assets of the trust (of which $ 295.0 million was outstanding as of September 30, 2025) that can be drawn upon to the extent of outstanding eligible receivables. The interest rate on the notes is based on the Term SOFR plus a range between 2.40 % to 7.80 %. The facility matures on March 31, 2028. Revolving credit facility to sell up to an aggregate $ 379.1 million of notes that are secured by the receivables and other assets of the trust (of which $ 159.0 million was outstanding as of September 30, 2025) that can be drawn upon to the extent of outstanding eligible receivables. Depending on the class of notes, the interest rate on the notes is based on either a commercial paper rate plus 2.25 % or Term SOFR plus 8.15 %. The facility matures on July 1, 2029. 24 Table of Contents ABS of $ 750.0 million secured by certain credit card receivables (expiring February 20, 2029). Depending upon the class of notes, the interest rate on notes is based on either SOFR plus 2.75 % or has a weighted average interest rate fixed at 11.50 %. The terms of the ABS allow for a 24 -month revolving structure with a 36 -month amortization period. ABS of $ 700.0 million secured by certain credit card receivables (expiring July 20, 2029). The terms of the ABS allow for a 24 -month revolving structure with an 36 -month amortization period. The weighted average interest rate on the securities is fixed at 7.46 %. Revolving credit facility to sell up to an aggregate $ 374.0 million of notes that are secured by the receivables and other assets of the trust (of which $ 159.0 million was outstanding as of September 30, 2025) that can be drawn upon to the extent of outstanding eligible receivables. Depending on the class of notes, the interest rate on the notes is based on either a commercial paper rate plus 2.15 % or Term SOFR plus 8.50 %. The facility matures on April 20, 2029. ABS of $ 250.0 million secured by certain credit card receivables (expiring November 20, 2026). The terms of the ABS allow for a 12 -month revolving structure with an 12 -month amortization period. The interest rate on the notes is based on the Term SOFR plus a range between 2.00 % to 7.50 %. ABS of $ 500.0 million secured by certain credit card receivables (expiring June 21, 2027). The terms of the ABS allow for a 15 -month revolving structure with an 12 -month amortization period. The interest rate on the notes is based on the Term SOFR plus a range between 2.00 % to 7.50 %. As of September 30, 2025, we were in compliance with the covenants underlying our various notes payable and credit facilities. Senior Notes, net In November 2021, we issued $ 150.0 million aggregate principal amount of 2026 Senior Notes. The 2026 Senior Notes are general unsecured obligations of the Company and rank equally in right of payment with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness, and will rank senior in right of payment to the Company’s future subordinated indebtedness, if any. The 2026 Senior Notes are effectively subordinated to all of the Company’s existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, and the 2026 Senior Notes are structurally subordinated to all existing and future indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries (excluding any amounts owed by such subsidiaries to the Company). The 2026 Senior Notes bear interest at the rate of 6.125 % per annum. Interest on the 2026 Senior Notes is payable quarterly in arrears on February 1, May 1, August 1 and November 1 of each year. The 2026 Senior Notes will mature on November 30, 2026. We are amortizing fees associated with the issuance of the 2026 Senior Notes into interest expense over the expected life of such notes. Amortization of these fees for the three and nine months ended September 30, 2025 and 2024 totaled $ 0.4 million, $ 1.1 million, $ 0.4 million and $ 1.1 million, respectively. We repurchased $ 0.0 and $ 0.4 million of the outstanding principal amount of these 2026 Senior Notes in the three and nine months ended September 30, 2024, respectively. There have been no repurchases in 2025. In January and February 2024, we issued an aggregate of $ 57.2 million aggregate principal amount of 2029 Senior Notes. In July 2024, we issued an additional $ 60.0 million aggregate principal amount of the 2029 Senior Notes. The 2029 Senior Notes are general unsecured obligations of the Company and rank equally in right of payment with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness, and will rank senior in right of payment to the Company’s future subordinated indebtedness, if any. The 2029 Senior Notes are effectively subordinated to all of the Company’s existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, and the 2029 Senior Notes are structurally subordinated to all existing and future indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries (excluding any amounts owed by such subsidiaries to the Company). The 2029 Senior Notes bear interest at the rate of 9.25 % per annum. Interest on the 2029 Senior Notes is payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year. The 2029 Senior Notes will mature on January 31, 2029. We are amortizing fees associated with the issuance of the 2029 Senior Notes into interest expense over the expected life of such notes. Amortization of these fees for the three and nine months ended September 30, 2025 and 2024 totaled $ 0.4 million, $ 1.1 million, $ 0.3 million and $ 0.5 million, respectively. In August 2025, we issued $ 400.0 million principal amount of 9.750 % Senior Notes due 2030 (the "2030 Senior Notes"). The 2030 Senior Notes bear interest at the rate of 9.75 % per annum. Interest on the 2030 Senior Notes is payable semi-annually in arrears on March 1 and September 1 of each year. The 2030 Senior Notes will mature on September 1, 2030. We are amortizing fees associated with the issuance of the 2030 Senior Notes into interest expense over the expected life of such notes. Amortization of these fees for the three and nine months ended September 30, 2025 totaled $ 0.1 million and $ 0.1 million, respectively. The 2026 Senior Notes, 2029 Senior Notes and 2030 Senior Notes are collectively included on our condensed consolidated balance sheet as "Senior Notes, net." See Note 5 "Shareholders' Equity and Preferred Stock" for more information. 25 Table of Contents 11. Commitments and Contingencies General Under finance products available in the private label credit and general purpose credit card channels, consumers have the ability to borrow up to the maximum credit limit assigned to each individual’s account. Unfunded commitments under these products aggregated $ 6.7 billion at September 30, 2025. We have never experienced a situation in which all borrowers have exercised their entire available lines of credit at any given point in time, nor do we anticipate this will ever occur in the future. Moreover, there would be a concurrent increase in assets should there be any exercise of these lines of credit. Additionally, our CAR operations provide floor-plan financing for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here used car business. The floor plan financing allows dealers and finance companies to borrow up to the maximum pre-approved credit limit allowed in order to finance ongoing inventory needs. These loans are secured by the underlying auto inventory and, in certain cases where we have other lending products outstanding with the dealer, are secured by the collateral under those lending arrangements as well, including any outstanding dealer reserves. As of September 30, 2025, CAR had unfunded outstanding floor-plan financing commitments totaling $ 10.5 million. Each draw against unused commitments is reviewed for conformity to pre-established guidelines and is not unconditional. Under agreements with third -party originating and other financial institutions, we have pledged security (collateral) related to their issuance of consumer credit and purchases thereunder, of which $ 30.4 million remains pledged as of September 30, 2025 to support various ongoing contractual obligations. Under agreements with third -party originating and other financial institutions, we have agreed to indemnify the financial institutions for certain liabilities associated with the services we provide on behalf of the financial institutions—such indemnification obligations generally being limited to instances in which we either (a) have been afforded the opportunity to defend against any potentially indemnifiable claims or (b) have reached agreement with the financial institutions regarding settlement of potentially indemnifiable claims. As of September 30, 2025, we have assessed the likelihood of any potential payments related to the aforementioned contingencies as remote. We would accrue liabilities related to these contingencies in any future period when we assess the likelihood of an estimable payment as probable. Under the account terms, consumers have the option of enrolling with our issuing bank partners in a credit protection program, which would make the minimum payments owed on their accounts for a period of up to six months upon the occurrence of an eligible event. Eligible events typically include loss of life, job loss, disability, or hospitalization. As an acquirer of receivables, our potential exposure under this program, if all eligible participants applied for this benefit, was $ 174.3 million as of September 30, 2025. We have never experienced a situation in which all eligible participants have applied for this benefit at any given point in time, nor do we anticipate this will ever occur in the future. We include our estimate of future claims under this program within our fair value analysis of the associated receivables. Concentrations We acquire all of our fair value receivables under agreements with three third -party originating institutions. Our top five retail partnerships accounted for over 85 % of our private label receivables outstanding as of September 30, 2025. The volume of receivables purchased each period varies based on a number of factors, including seasonal consumer purchase patterns, growth (or contraction) within retail locations and consumer application volumes that retail partners may direct to our bank partners versus competitors that offer similar financing products. During the three and nine months ended September 30, 2025 and 2024, we had receivable purchases from our top five retail partners of the following (in millions): Gross Purchases For the Three Months Ended September 30, For the Nine Months Ended September 30, Largest Retail Partners 2025 2024 2025 2024 1 $ 337.5 $ 279.0 $ 874.1 $ 493.6 2 $ 36.9 $ 43.2 $ 113.4 $ 128.1 3 $ 19.7 $ 20.7 $ 58.3 $ 64.2 4 $ 17.9 $ 14.9 $ 53.1 $ 59.7 5 $ 14.5 $ 11.5 $ 49.1 $ 31.2 26 Table of Contents Our general purpose credit card and private label credit receivables base is spread across individual consumers in the U.S. As of September 30, 2025 , only one state (Texas) had receivables concentration in excess of 10% of our total pool of receivables. Litigation We are involved in various legal proceedings that are incidental to the conduct of our business. There are currently no pending legal proceedings that are expected to be material to us. 12. Net Income Attributable to Controlling Interests Per Common Share We compute net income attributable to controlling interests per common share by dividing net income attributable to controlling interests by the weighted average number of shares of common stock (including participating securities) outstanding during the period, as discussed below. Diluted computations applicable in financial reporting periods in which we report income use the treasury stock method to reflect the potential dilution to the basic income per share of common stock computations that could occur if securities or other contracts to issue common stock were exercised, were converted into common stock or were to result in the issuance of common stock that would share in our results of operations. In performing our net income attributable to controlling interests per share of common stock computations, we apply accounting rules that require us to include all unvested stock awards that contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid, in the number of shares outstanding in our basic and diluted calculations. Common stock and certain unvested share-based payment awards earn dividends equally, and we have included all outstanding restricted stock awards in our basic and diluted calculations for current and prior periods. The following table sets forth the computations of net income attributable to controlling interests per share of common stock (in thousands, except per share data): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Numerator: Net income attributable to controlling interests $ 24,977 $ 29,543 $ 87,070 $ 79,993 Preferred stock and preferred unit dividends and discount accretion ( 2,307 ) ( 6,316 ) ( 8,103 ) ( 18,916 ) Net income attributable to common shareholders—basic 22,670 23,227 78,967 61,077 Effect of dilutive preferred stock dividends and discount accretion 600 604 1,800 1,797 Net income attributable to common shareholders—diluted $ 23,270 $ 23,831 $ 80,767 $ 62,874 Denominator: Basic (including unvested share-based payment awards) (1) 15,125 14,740 15,121 14,728 Effect of dilutive stock compensation arrangements and exchange of preferred stock 4,070 4,048 4,068 4,046 Diluted (including unvested share-based payment awards) (1) 19,195 18,788 19,189 18,774 Net income attributable to common shareholders per share—basic $ 1.50 $ 1.58 $ 5.22 $ 4.15 Net income attributable to common shareholders per share—diluted $ 1.21 $ 1.27 $ 4.21 $ 3.35 ( 1 ) Shares related to unvested share-based payment awards included in our basic and diluted share counts were 363,134 and 362,440 for the three and nine months ended September 30, 2025, respectively, compared to 384,193 and 356,059 for the three and nine months ended September 30, 2024, respectively. As their effects were anti-dilutive, we excluded stock options to purchase 0.1 million shares from our net income attributable to controlling interests per share of common stock calculations for the three and nine months ended September 30, 2024. There were no such anti-dilutive stock options for the three and nine months ended September 30, 2025. For the three and nine months ended September 30, 2025 and 2024, we included 4.0 million shares of common stock for each period in our outstanding diluted share counts associated with our Series A Preferred Stock. See Note 6, "Redeemable Preferred Stock," for a further discussion of these convertible securities. 27 Table of Contents 13. Stock-Based Compensation We currently have two stock-based compensation plans, the Second Amended and Restated Employee Stock Purchase Plan (the "ESPP") and the Fourth Amended and Restated 2014 Equity Incentive Plan (the "Fourth Amended 2014 Plan"). Our ESPP provides that we may issue up to 500,000 shares of our common stock under the plan. Our Fourth Amended 2014 Plan provides that we may grant equity awards representing up to 5,750,000 options on or shares of our common stock to members of our Board of Directors, employees, consultants and advisors. The Fourth Amended 2014 Plan was approved by our shareholders in May 2019. As of September 30, 2025, 39,215 shares remained available for issuance under the ESPP and 1,915,098 shares remained available for issuance under the Fourth Amended 2014 Plan. Exercises and vesting under our stock-based compensation plans resulted in no income tax-related charges to paid-in capital during the three and nine months ended September 30, 2025 and 2024. Restricted Stock and Restricted Stock Units During the three months ended September 30, 2025 and 2024, we had forfeitures (net of grants) of 8,632 shares and 583 shares of restricted stock and restricted stock units, respectively, with aggregate grant date fair values $ 0.3 million and $ 0 , respectively. For the nine months ended September 30, 2025 and 2024, we had grants (net of forfeitures) of 65,782 shares and 209,053 shares of restricted stock and restricted stock units, respectively, with aggregate grant date fair values of $ 3.6 million and $ 6.5 million, respectively. We incurred expenses of $ 0.9 million, $ 2.7 million, $ 1.0 million and $ 2.8 million during the three and nine months ended September 30, 2025 and 2024, respectively, related to restricted stock awards. When we grant restricted stock and restricted stock units, we defer the grant date value of the restricted stock and restricted stock unit and amortize that value (net of the value of anticipated forfeitures) as compensation expense with an offsetting entry to the paid-in capital component of our condensed consolidated shareholders’ equity. Our restricted stock awards typically vest over a range of 12 to 60 months (or other term as specified in the grant which may include the achievement of performance measures) and are amortized to salaries and benefits expense ratably over applicable vesting periods. As of September 30, 2025, our unamortized deferred compensation costs associated with non-vested restricted stock awards were $ 7.3 million with a weighted-average remaining amortization period of 3.1 years. No forfeitures have been included in our compensation cost estimates based on historical forfeiture rates. The table below includes additional information about outstanding restricted stock and restricted stock units: Number of Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2024 377,353 $ 31.56 Issued 79,693 $ 50.53 Vested ( 81,950 ) $ 31.92 Forfeited ( 13,911 ) $ 33.11 Outstanding at September 30, 2025 361,185 $ 35.60 Stock Options The exercise price per share of the options awarded under the Fourth Amended 2014 Plan must be equal to or greater than the market price on the date the option is granted. The option period may not exceed 10 years from the date of grant. We had expense of $ 0.0 million and $ 0.1 million related to stock option-related compensation costs during the three and nine months ended September 30, 2024, respectively. There has been no expense related to stock option-related compensation costs in 2025. When applicable, we recognize stock option-related compensation expense for any awards with graded vesting on a straight-line basis over the vesting period for the entire award. The table below includes additional information about outstanding options: Number of Shares Weighted Average Exercise Price Weighted Average of Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at December 31, 2024 160,391 $ 31.30 Issued — $ — Exercised ( 15,100 ) $ 15.30 Expired/Forfeited — $ — Outstanding at September 30, 2025 145,291 $ 32.96 0.5 $ 3,722,508 Exercisable at September 30, 2025 145,291 $ 32.96 0.5 $ 3,722,508 No options were issued during the three and nine months ended September 30, 2025 and 2024. We had no unamortized deferred compensation costs associated with non-vested stock options at both September 30, 2025 and December 31, 2024. Upon exercise of outstanding options, the Company issues new shares. 28 Table of Contents