1 unchanged sentence
This annual report contains various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions, as well as information currently available to management.
−Removed: Statements other than those of historical fact, including, but not limited to those identified by the use of words such as “anticipate,” “estimate,” “intend,” “plan,” “expect,” "project," “believe,” “may,” “will,” “should,” “would,” “could,” "continue," "forecast," and any variations of the foregoing and similar expressions, are forward-looking statements.
+Added: Statements other than those of historical fact, including, but not limited to those identified by the use of words such as “anticipate,” “estimate,” “intend,” “plan,” “expect,” "project," “believe,” “may,” “will,” “should,” “would,” “could,” "continue," "forecast," "probable," and any variations of the foregoing and similar expressions, are forward-looking statements.
Although we believe that the expectations reflected in any such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
8 unchanged sentences
The Company does not undertake any obligation to update forward-looking statements, except as may be required by law, whether as a result of new information, future developments, or otherwise.
−Removed: Media and public characterization of consumer installment loans as being predatory or abusive could have a materially adverse effect on our business, prospects, results of operations and financial condition.
+Added: Negative media coverage or public perception of consumer installment loans as predatory or abusive may materially impact our business performance, growth prospects, and financial condition.
Consumer activist groups and various other media sources continue to advocate for governmental and regulatory action to prohibit or severely restrict our products and services.
2 unchanged sentences
Furthermore, our industry is highly regulated, and announcements regarding new or expected governmental and regulatory action regarding consumer lending may adversely impact perceptions of our business even if such actions are not targeted at our operations and do not directly impact us.
−Removed: Interest rate fluctuations may adversely affect our borrowing costs, profitability and liquidity.
+Added: Fluctuations in interest rates may negatively impact borrowing costs, profitability, and overall liquidity.
Interest rate risk arises from the possibility that changes in interest rates will affect our results of operations and financial condition.
Interest rates are highly sensitive to many factors that are beyond our control, including general economic conditions and policies of various governmental and regulatory agencies, in particular, the Federal Reserve Board.
−Removed: In response to elevated inflation, the Federal Reserve Board has increased interest rates on several occasions since early 2022.
−Removed: The Federal Reserve Board has indicated that it will raise rates further, if deemed necessary, to combat continued inflation growth.
+Added: In response to elevated inflation, the Federal Reserve Board increased interest rates on several occasions during calendar 2022 and 2023 and subsequently decreased rates in calendar 2024.
+Added: The Federal Reserve Board has indicated that it could raise rates further, if deemed necessary, to combat continued inflation growth.
+Added: The Federal Reserve Board has also expressed concern about stagflation.
In addition, our profitability may be directly affected by the level of and fluctuations in interest rates, whether caused by changes in economic conditions or other factors that affect our borrowing costs.
−Removed: Changes in monetary policy, including changes
−Removed: in interest rates, could influence the amount of interest we pay on our revolving credit facility or any other floating interest rate obligations we may incur.
+Added: Changes in monetary policy, including changes in interest rates, could influence the amount of interest we pay on our revolving credit facility or any other floating interest rate obligations we may incur.
Our profitability and liquidity could be materially adversely affected during any period of higher interest rates.
See Part II, Item 7A, “Quantitative and Qualitative Disclosure About Market Risk” for additional information regarding our interest rate risk.
−Removed: We are exposed to credit risk in our lending activities.
+Added: The Company's lending activities risk the potential of borrower default, which may impact earnings and asset quality.
Our ability to collect on loans to individuals, our single largest asset group, depends on the ability and willingness of our borrowers to repay such loans.
7 unchanged sentences
Additional information regarding our credit risk is included in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operation-Allowance for Credit Losses.”
−Removed: Our insurance operations are subject to a number of risks and uncertainties, including claims, catastrophic events, underwriting risks and dependence on a primary distribution channel.
+Added: The Company's insurance operations face risks related to claims volatility, catastrophic events, underwriting performance, and reliance on a primary distribution channel.
Insurance claims and policyholder liabilities are difficult to predict and may exceed the related reserves set aside for claims (losses) and associated expenses for claims adjudication (loss adjustment expenses).
8 unchanged sentences
and collateral protection insurance (i.e., insurance some of our lender companies purchase, at the customer’s expense, on that customer’s loan collateral for the periods of time the customer fails to adequately, as required by his loan, insure his collateral).
−Removed: If our estimates of credit losses are not adequate to absorb actual losses, our provision for credit losses would increase, which would adversely affect our results of operations.
+Added: If actual credit losses exceed projected estimates, the Company may be required to increase the provision, negatively impacting earnings and financial results.
To estimate the appropriate level of allowance for credit losses, we consider known and relevant internal and external factors that affect loan collectability, including the total amount of loan receivables outstanding, historical loan receivable charge-offs, our current collection patterns, and economic trends.
4 unchanged sentences
Additional information regarding our allowance for credit losses is included in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Allowance for Credit Losses.”
−Removed: In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326):
−Removed: Measurement of Credit Losses on Financial Instruments (CECL).
−Removed: This ASU significantly changed the way that entities are required to measure credit losses.
−Removed: This standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach previously required.
−Removed: The new approach requires entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability.
−Removed: expected credit loss model requires earlier recognition of credit losses than the incurred loss approach.
−Removed: CECL became effective for the Company April 1, 2020.
−Removed: Our financial results may be negatively affected as weak or deteriorating economic conditions are forecasted and alter our expectations for credit losses.
−Removed: In addition, due to the expansion of the time horizon over which we are required to estimate future credit losses under CECL, we may experience increased volatility in our future provisions for credit losses.
−Removed: The concentration of our revenues in certain states could adversely affect us.
+Added: A significant concentration of revenue in certain states increases exposure to regional economic, regulatory, or legislative changes that could adversely affect the Company.
We currently operate consumer installment loan branches in sixteen states in the United States.
1 unchanged sentence
See Part I, Item 1, “Description of Business” for information regarding the size of our business in the various states in which we operate.
−Removed: We may be unable to execute our business strategy due to economic conditions and these economic conditions could have a material adverse effect on our business, financial position, results of operations, and cash flows.
+Added: Adverse economic conditions—such as inflation, unemployment, interest rate volatility, or reduced consumer spending may impair the Company's ability to execute business strategy and could materially impact it's financial position, operating results, and cash flows.
Uncertainty and deterioration in general economic conditions in the U.S.
3 unchanged sentences
economy is undergoing a period of significant uncertainty.
−Removed: These macro-economic factors include general inflation, unemployment levels, housing markets, commodity prices, energy costs, volatile interest rates, natural disasters, acts of war and terrorism.
+Added: These macro-economic factors include general inflation, tariffs and retaliatory tariffs, price increases, unemployment levels, housing markets, commodity prices, energy costs, volatile interest rates, natural disasters, acts of war and terrorism.
Additionally, many of our customers are primarily non-prime borrowers, who have historically been more likely to be affected by adverse macro-economic factors than prime borrowers.
−Removed: Currently, due to a number of factors, the global economy is experiencing inflationary pressures not seen in a significant period of time.
−Removed: We cannot predict the timing or the duration of any inflation or downturn in the economy and we are not immune to the effects of general worldwide economic conditions.
+Added: Currently, due to a number of factors, the global economy is experiencing significant uncertainty with respect to trade and tariffs and the possibility that significant inflationary pressures will develop.
+Added: We cannot predict the timing or the duration of any trade wars or retaliatory tariffs, inflation or downturn in the economy and we are not immune to the effects of general worldwide economic conditions.
During an economic downturn or recession, demand for credit products often decreases and credit losses in the financial services industry generally increase.
3 unchanged sentences
Our failure or inability to execute any element of our business strategy, due to economic conditions or otherwise, could materially adversely affect our financial position, liquidity, and results of operations.
−Removed: Our ability to execute our growth strategy is subject to significant risks, including some beyond our control, and may be adversely affected.
+Added: The Company's ability to achieve growth objectives may be hindered by external factors such as regulatory changes, economic shifts, competitive pressure, or operational constraints beyond it's control.
Our growth strategy includes opening and acquiring branches in existing and new markets and is subject to significant risks, some of which are beyond our control, including:
4 unchanged sentences
• our ability to attract, train, and retain qualified personnel to staff our new operations.
−Removed: We currently lack product and business diversification;
−Removed: as a result, our revenues and earnings may be disproportionately negatively impacted by external factors and may be more susceptible to fluctuations than more diversified companies.
+Added: Limited product and business diversification may expose the Company to greater earnings volatility and heighten sensitivity to external market or regulatory changes, compared to more diversified peers.
Our primary business activity is offering small consumer installment loans together with, in some states in which we operate, related ancillary products.
−Removed: Thus, any developments, whether regulatory, economic or otherwise, that would hinder, reduce the profitability of, or limit our ability to operate our small consumer installment loan business on the terms currently conducted
−Removed: would have a direct and adverse impact on our business, profitability, and perhaps even our viability.
+Added: Thus, any developments, whether regulatory, economic or otherwise, that would hinder, reduce the profitability of, or limit our ability to operate our small consumer installment loan business on the terms currently conducted would have a direct and adverse impact on our business, profitability, and perhaps even our viability.
Our current lack of product and business diversification could inhibit our opportunities for growth, reduce our revenues and profits, and make us more susceptible to earnings fluctuations than many other financial institutions whose operations are more diversified.
−Removed: A reduction in demand for our products and a failure by us to adapt to such reduction could adversely affect our business and results of operations.
+Added: A decline in demand for products—combined with failure to adapt offerings or strategy—could negatively impact the business and operating results.
The demand for the products we offer may be reduced due to a variety of factors, such as demographic patterns, changes in customer preferences or financial condition, regulatory restrictions that decrease customer access to particular products, or the availability of competing products, including through alternative or competing marketing channels.
4 unchanged sentences
Moreover, the effect of any product change on the results of our business may not be fully ascertainable until the change has been in effect for some time, and by that time it may be too late to make further modifications to such product without causing further harm to our business, results of operations, and financial condition.
−Removed: Our policies and procedures for underwriting, processing, and servicing loans are subject to potential failure or circumvention, which may adversely affect our results of operations.
+Added: Failures or circumvention of loan underwriting, processing, or servicing policies may lead to credit losses or operational breakdowns that adversely impact results.
We rely on certain inputs and verifications in the underwriting process to be performed by individual personnel at the branch level or a centralized location.
7 unchanged sentences
As a result, our results of operations and financial condition could be negatively impacted.
−Removed: We operate in a highly competitive market, and we cannot ensure that the competitive pressures we face will not have a material adverse effect on our results of operations, financial condition and liquidity.
+Added: Intense market competition may pressure pricing, reduce market share, or impact profitability, potentially affecting our financial condition and liquidity.
The consumer lending industry is highly competitive.
5 unchanged sentences
We cannot be sure that the competitive pressures we face will not have a material adverse effect on our results of operations, financial condition, and liquidity.
−Removed: We depend on secure information technology, and an attack on or a breach of those systems or those of third-party vendors could result in significant losses, unauthorized disclosure of confidential customer information, and reputational damage, which could materially adversely affect our business, financial condition and/or results of operations, and could lead to significant financial and legal exposure and reputational harm.
+Added: A cyberattack, data breach, or technology failure—whether in the Company's systems or those of third-party vendors—could compromise customer data, disrupt operations, and result in financial loss, legal liability, and reputational harm.
Our operations rely heavily on the secure collection, processing, storage, and transmission of personal, confidential, and other information about us, our customers and third parties with which we do business.
14 unchanged sentences
If one or more of such events occur, our business, financial condition and/or results of operations could be significantly and adversely affected.
−Removed: Any interruption of our information systems could adversely affect us.
+Added: Disruptions or outages in various information systems could impair business operations, delay services, and negatively affect customer experience and financial performance.
Our business and reputation may be materially impacted by information system failures or network disruptions.
3 unchanged sentences
A disruption could impair our ability to offer and process our loans, provide customer service, perform collections or other necessary business activities, which could result in a loss of customer confidence or business, subject us to additional regulatory scrutiny or negative publicity, or expose us to civil litigation and possible financial liability, or otherwise materially adversely affect our financial condition and operating results.
−Removed: Furthermore, we may not be able to immediately detect any such breach,
−Removed: which may increase the losses that we would suffer.
+Added: Furthermore, we may not be able to immediately detect any such breach, which may increase the losses that we would suffer.
In addition, our existing insurance policies may not reimburse us for all of the damages that we might incur as a result of a breach or other information system failure or network disruption.
−Removed: We may not be able to make technological improvements as quickly as some of our competitors, which could harm our ability to compete with our competitors and adversely affect our results of operations, financial condition, and liquidity.
+Added: Slower adoption of new technologies compared to competitors may reduce competitiveness and adversely impact growth, financial condition, and liquidity.
The financial services industry is undergoing rapid technological changes, with frequent introductions of new technology-driven products and services.
3 unchanged sentences
Failure to successfully keep pace with technological change affecting the financial services industry could harm our ability to compete with our competitors and adversely affect our results of operations, financial condition, and liquidity.
−Removed: We are subject to data privacy laws, which may significantly increase our compliance and technology costs resulting in a material adverse effect on our results of operations and financial condition.
+Added: Evolving data privacy laws may increase compliance and technology costs, potentially impacting financial results and operational efficiency.
We are subject to various federal and state privacy, data protection, and information security laws and regulations, including requirements concerning security breach notification.
3 unchanged sentences
Our failure to comply with privacy, data protection and information security laws may require us to change our business practices or operational structure, and could subject us to potentially significant regulatory and/or governmental investigations and/or actions, litigation, fines, sanctions, and damage to our reputation.
−Removed: We are also subject to the risk of theft or misuse of physical customer and employee records at our facilities.
+Added: Theft or misuse of physical customer or employee records at facilities could lead to data exposure, legal liability, and reputational damage.
Our branch offices and centralized headquarters have physical and electronic customer records necessary for day-to-day operations that contain extensive confidential information about our customers.
2 unchanged sentences
In addition, if we cannot locate original documents (or copies, in some cases) for certain loans receivables, we may not be able to collect on those loans receivables.
−Removed: Our off-site data centers and centralized IT functions are susceptible to disruption by catastrophic events, which could have a material adverse effect on our business, results of operations, and financial condition.
+Added: Catastrophic events affecting the off-site data center, centralized IT functions, or critical third-party cloud infrastructure could disrupt operations and materially impact business continuity and financial performance.
Our information systems, and administrative and management processes could be disrupted if a catastrophic event, such as severe weather, natural disaster, power outage, act of war or terror or similar event, destroyed or severely damaged our infrastructure.
Any such catastrophic event or other unexpected disruption of our headquarters' functions or off-site data centers could have a material adverse effect on our business, results of operations, and financial condition.
−Removed: A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders may have interests which conflict with the interests of our other security holders.
+Added: A small number of shareholders may exert significant influence over matters requiring shareholder approval, which could result in decisions that conflict with the interests of other investors.
As of March 31, 2025, based on filings made with the SEC and other information made available to us, Prescott General Partners, LLC and its affiliates beneficially owned approximately 47.2% of our common stock.
1 unchanged sentence
Their interests may conflict with the interests of our other security holders.
−Removed: Initiating and processing potential acquisitions may be unsuccessful or difficult, leading to losses and increased delinquencies, which could have a material adverse effect on our results of operations.
+Added: Challenges in identifying, executing, or integrating acquisitions may lead to financial losses, operational disruption, or increased credit risk, adversely impacting results of operations.
We have previously acquired, and in the future may acquire, assets or businesses, including large portfolios of loans receivables, either through the direct purchase of such assets or the purchase of the equity of a company with such a portfolio.
−Removed: Since we will not have originated or serviced the loans we acquire, we may not be aware of legal or other deficiencies related to origination or servicing, and our due diligence efforts of the acquisition prior to purchase may not uncover those deficiencies.
+Added: Since we will not have originated or serviced the loans we acquire, we may not be aware of legal or other deficiencies related to
+Added: origination or servicing, and our due diligence efforts of the acquisition prior to purchase may not uncover those deficiencies.
Further, we may have limited recourse against the seller of the portfolio.
14 unchanged sentences
Additional information regarding our liquidity risk is included in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources.”
−Removed: Our current debt and any additional debt we may incur in the future could negatively impact our business, prevent us from satisfying our debt obligations and adversely affect our financial condition.
+Added: Taking on additional debt or liabilities may heighten financial risk, reduce flexibility, and increase pressure on the ability to meet repayment terms or maintain favorable lending conditions.
We may incur a substantial amount of debt in the future.
14 unchanged sentences
Although the terms of our revolving credit agreement contain restrictions on our ability to incur additional debt, as well as any future debt that we incur, these restrictions are subject, or likely to be subject, in the case of any future debt, to exceptions that could permit us to incur a substantial amount of additional debt.
−Removed: In addition, our existing and future debt agreements will not prevent us from incurring certain liabilities that do not constitute indebtedness as defined for purposes of those debt agreements.
+Added: In addition, our existing and future debt agreements will not
+Added: prevent us from incurring certain liabilities that do not constitute indebtedness as defined for purposes of those debt agreements.
If new debt or other liabilities are added to our current debt levels, the risks associated with our having substantial debt could intensify.
As of March 31, 2025, we had $316.7 million available for borrowing under our revolving credit agreement, subject to borrowing base limitations and other specified terms and conditions.
−Removed: We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
+Added: If cash flows are insufficient to meet debt obligations and operational needs, the Company may be required to restructure debt, reduce spending, or pursue alternative financing, which could impact financial stability.
Our ability to make scheduled payments on the principal of, to pay interest on, or to refinance our indebtedness will depend in part on our cash flows from operations, which are subject to regulatory, economic, financial, competitive, and other factors beyond our control.
2 unchanged sentences
There can be no assurance that any refinancing will be possible or that any asset sales or additional financing can be completed on acceptable terms or at all.
−Removed: The terms of our debt limit how we conduct our business.
+Added: Restrictions imposed by debt agreements may limit the Company’s ability to pursue certain strategic, operational, or financial activities, potentially constraining business flexibility.
Our revolving credit agreement contains covenants that restrict our ability to, among other things:
24 unchanged sentences
In the event our creditors accelerate the repayment of our debt, there can be no assurance that we would have sufficient assets to repay that debt, and our financial condition, liquidity and results of operations would suffer.
−Removed: A breach of our
−Removed: covenants under the Notes would have similar consequences.
+Added: A breach of our covenants under the Notes would have similar consequences.
Additional information regarding our revolving credit facility and Notes is included in Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources.”
−Removed: The conditions of the U.S.
−Removed: and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity and results of operations.
+Added: Adverse conditions in U.S.
+Added: or international capital markets may affect lending partners, increase funding costs, and reduce available liquidity, negatively impacting the Company’s financial position and operating results.
Turbulence in the global or domestic capital markets or other macro-economic factors can result in disruptions in the financial sector, including bank failures, and can affect lenders with which we have relationships, including members of the syndicate of banks that are lenders under our revolving credit agreement.
4 unchanged sentences
Risks Related to Legal Proceedings and Regulation
−Removed: Federal legislative or regulatory proposals, initiatives, actions, or changes that are adverse to our operations or result in adverse regulatory proceedings, or our failure to comply with existing or future federal laws and regulations, could force us to modify, suspend, or cease part or all of our nationwide operations.
+Added: Adverse federal legislative or regulatory changes—or noncompliance with existing or future laws—could result in enforcement actions or require the Company to modify, suspend, or cease part or all of its operations.
We are subject to numerous federal laws and regulations that affect our lending operations.
5 unchanged sentences
See Part I, Item 1, “Description of Business-Government Regulation” for more information regarding legislation we are subject to and related risks.
−Removed: The Company is under the supervisory authority of the CFPB.
−Removed: Regulations issued by the CFPB or examinations by the CFPB could adversely impact earnings due to, among other things, increased compliance costs or costs due to noncompliance.
+Added: The Company is no longer under the supervisory authority of the CFPB.
+Added: However, regulations issued by the CFPB or investigations by the CFPB could adversely impact earnings due to, among other things, increased compliance costs or costs due to noncompliance.
In July 2010 the Dodd-Frank Act was enacted.
8 unchanged sentences
In 2022, the CFPB announced that it has begun using this “dormant authority” to examine nonbank entities and the CFPB is attempting to expand the number of nonbank entities it currently supervises.
−Removed: Specifically, the CFPB previously
−Removed: notified the Company that it was seeking to establish such supervisory authority over the Company.
−Removed: Since then, the CFPB has issued a public designation order setting forth its determination that the Company has met the legal requirements for supervision (the "Order").
−Removed: Pursuant to the terms of the Order, the CFPB has supervisory authority over the Company until such time as the Order is terminated.
−Removed: Importantly, while the Order establishes that the CFPB has supervisory authority over the Company, it does not constitute a finding that the Company has engaged in wrongdoing, nor does it require any immediate action on the part of the Company.
−Removed: However, the outcome of such supervision could result in operational changes which could reduce our ability to operate profitably or increase compliance costs.
−Removed: The supervision could also result in additional examinations, litigation, consent orders or administrative proceedings, which could require considerable resources, time, effort and attention from our management, and may result in operational changes, monetary penalties or declines in our stock price.
+Added: Specifically, the CFPB issued a public designation order setting forth its determination that the Company had met the legal requirements for supervision (the "Order").
+Added: Pursuant to the terms of the Order, the CFPB had supervisory authority over the Company until such time as the Order is terminated.
+Added: Importantly, on May 12, 2025, the CFPB withdrew the Order, indicating that the CFPB "is shifting its supervisory priorities to focus on pressing threats to consumers" and that supervision of the Company "is not consistent with these priorities." Additionally, the CFPB has recently signaled that, under current leadership, it would take a less aggressive posture with respect to supervision and enforcement of regulated entities.
Although the Dodd-Frank Act prohibits the CFPB from setting interest rates on consumer loans, efforts to create a federal usury cap, applicable to all consumer credit transactions and substantially below rates at which the Company could continue to operate profitably, are still ongoing.
11 unchanged sentences
See Part I, Item 1, “Description of Business-Government Regulation” for more information regarding legislation we are subject to and related risks.
−Removed: Litigation and regulatory actions, including challenges to the arbitration clauses in our customer agreements, could subject us to significant class actions, fines, penalties, judgments and requirements resulting in increased expenses and potential material adverse effects on our business, results of operations and financial condition.
+Added: Litigation or regulatory actions—including challenges to arbitration provisions in customer agreements—may result in class actions, fines, penalties, or judgments that increase expenses and materially impact the Company’s business, financial condition, and operating results.
In the normal course of business, from time to time, we have been involved in various legal actions, including arbitration, class actions and other litigation, arising in connection with our business activities.
9 unchanged sentences
There may also be legislative, administrative or regulatory efforts to directly or indirectly prohibit the use of pre-dispute arbitration clauses, or we may be compelled as a result of competitive pressure or reputational concerns to voluntarily eliminate pre-dispute arbitration clauses.
−Removed: Additionally, if we are subject to regulatory actions or other litigation, we may not be able to maintain all requisite licenses and permits or obtain additional licenses and permits necessary for future business operations, and the failure to satisfy those or other regulatory requirements could have a material adverse effect on our business, financial condition, and results of operations.
+Added: Additionally, if we are subject to regulatory actions or other litigation, we may not be able to maintain all requisite licenses and permits or obtain additional licenses and permits necessary for future business operations, and the failure to satisfy those or
+Added: other regulatory requirements could have a material adverse effect on our business, financial condition, and results of operations.
Material changes in laws or regulations applicable to us could also subject us to additional licensing, registration and other regulatory requirements in the future or could adversely affect our business, financial condition, and results of operations.
−Removed: Unfavorable state legislation, executive orders, or regulatory actions, adverse outcomes in litigation or regulatory proceedings or failure to comply with existing laws and regulations could force us to cease, suspend or modify our operations in a state, potentially resulting in a material adverse effect on our business, results of operations and financial condition.
+Added: Unfavorable state legislation, executive orders, regulatory actions, or adverse legal outcomes may require the Company to cease, suspend, or modify operations in affected states, potentially resulting in material impacts to business, financial condition, and operating results.
In addition to federal laws and regulations, we are subject to numerous state laws and regulations that affect our lending activities.
8 unchanged sentences
If we were to suspend rather than permanently cease our operations in a state, we may also have continuing costs associated with maintaining our branches and our employees in that state, with little or no revenues to offset those costs.
−Removed: Changes in local laws and regulations or interpretations of local laws and regulations could negatively impact our business, results of operations, and financial condition.
+Added: Changes in local laws, ordinances, or regulatory interpretations may disrupt operations in specific jurisdictions, increase compliance costs, or limit the Company’s ability to offer certain products or services.
In addition to state and federal laws and regulations, our business is subject to various local laws and regulations, such as local zoning regulations.
4 unchanged sentences
Changes in laws or regulations may have a material adverse effect on all aspects of our business in a particular state and on our overall business, financial condition, and results of operations, including our ability to generate new loans and the manner in which existing loans are serviced and collected.
−Removed: Defaults by, or force majeure events involving, our third-party vendors and service providers could adversely impact our business.
+Added: Defaults or force majeure events affecting key third-party vendors or service providers may disrupt operations, impair service delivery, and negatively impact the Company’s performance.
We rely upon third parties for the performance of certain functions within our operations.
1 unchanged sentence
Such failure could have a material adverse impact on our business, results of operations, and financial condition.
−Removed: Further, federal and state regulators have been scrutinizing the practices of lead aggregators and providers recently.
+Added: Further, federal and state regulators have been scrutinizing the practices of lead
+Added: aggregators and providers recently.
If regulators place restrictions on certain practices by lead aggregators or providers, our ability to use them as a source for applicants could be affected.
−Removed: Employee misconduct or misconduct by third parties acting on our behalf could harm us by subjecting us to monetary loss, significant legal liability, regulatory scrutiny, and reputational harm.
+Added: The decentralized nature of origination and servicing, including reliance on third parties, may increase the risk of inconsistent practices, reduced oversight, and misconduct—potentially resulting in monetary loss, legal liability, regulatory scrutiny, or reputational harm.
There is a risk that our employees or third-party contractors could engage in misconduct that adversely affects our business.
6 unchanged sentences
Misconduct by our employees or third-party contractors, or even unsubstantiated allegations of misconduct, could result in a material adverse effect on our reputation and our business.
−Removed: We sell loan accounts that are charged-off, which may result in increased regulator scrutiny, potential reputational damage and financial loss.
−Removed: As part of our business, from time to time, we may sell loans that are charged off.
+Added: The sale of defaulted or charged-off loan accounts may expose the Company to increased regulatory scrutiny, reputational risk, and potential financial loss.
+Added: As part of our business, from time to time, we sell loans that are charged off.
If we do not appropriately assess a debt buyer’s collection practices for compliance with laws and regulations, there is risk potential.
2 unchanged sentences
General Risk Factors
−Removed: Our risk management efforts may not be effective.
+Added: Limitations in risk identification, assessment, or mitigation may weaken the Company’s risk management framework and expose the business to unexpected losses or compliance failures.
We could incur substantial losses and our business operations could be disrupted if we are unable to effectively identify, manage, monitor, and mitigate financial risks, such as credit risk, interest rate risk, prepayment risk, liquidity risk, and other market-related risks, as well as regulatory and operational risks related to our business, assets, and liabilities.
Our risk management policies, procedures, and techniques may not be sufficient to identify all of the risks we are exposed to, mitigate the risks we have identified, or identify additional risks to which we may become subject in the future.
−Removed: We may experience significant turnover in our senior management, and our business may be adversely affected by the transitions in our senior management team.
+Added: Significant turnover or instability within the senior management team may disrupt strategic execution, impact employee engagement, and adversely affect business performance.
Executive leadership transitions can be inherently difficult to manage and may cause disruption to our business.
In addition, management transition inherently causes some loss of institutional knowledge, which can negatively affect strategy and execution, and our results of operations and financial condition could be negatively impacted as a result.
−Removed: The loss of services of one or more other members of senior management, or the inability to attract qualified permanent replacements, could have a
−Removed: material adverse effect on our business.
+Added: The loss of services of one or more other members of senior management, or the inability to attract qualified permanent replacements, could have a material adverse effect on our business.
If we fail to successfully attract and appoint permanent replacements with the appropriate expertise, we could experience increased employee turnover and harm to our business, results of operations, cash flow and financial condition.
The search for permanent replacements could also result in significant recruiting and relocation costs.
−Removed: The departure, transition, or replacement of key personnel could significantly impact the results of our operations.
−Removed: If we cannot continue to hire and retain high-quality employees, our business and financial results may be negatively affected.
+Added: The departure or replacement of key personnel—and challenges in attracting or retaining high-performing employees—may disrupt operations and negatively affect the Company’s business and financial results.
Our future success significantly depends on the continued service and performance of our key management personnel.
8 unchanged sentences
If costs to retain our skilled employees increase, then our business and financial results may be negatively affected.
−Removed: Changes in federal, state and local tax law, interpretations of existing tax law, or adverse determinations by tax authorities, could increase our tax burden or otherwise adversely affect our financial condition or results of operations.
+Added: Changes in tax laws or regulations—or adverse interpretations or rulings by tax authorities—may increase the Company’s tax burden or negatively impact financial condition and operating results.
We are subject to taxation at the federal, state and local levels.
1 unchanged sentence
While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our Consolidated Financial Statements, which could adversely impact our cash flows and financial results.
−Removed: Damage to our reputation could negatively impact our business.
+Added: Negative public perception, media coverage, or stakeholder sentiment may damage the Company’s reputation, leading to reduced customer trust, regulatory scrutiny, or business disruption.
Maintaining a strong reputation is critical to our ability to attract and retain customers, investors, and employees.
1 unchanged sentence
Negative publicity regarding our Company (or others engaged in a similar business or similar activities), whether or not accurate, may damage our reputation, which could have a material adverse effect on our business, results of operations, and financial condition.
−Removed: If we fail to maintain appropriate controls and procedures, we may not be able to accurately report our financial results, which could have a material adverse effect on our operations, financial condition, and the trading price of our common stock.
+Added: Failure to maintain effective controls and procedures may result in inaccurate financial reporting, regulatory consequences, or loss of investor confidence, potentially affecting operations, financial condition, and stock performance.
We are required to maintain disclosure controls and procedures and internal control over financial reporting.
8 unchanged sentences
Any such consequence or other negative effect could adversely affect our operations, financial condition, and the trading price of our common stock.
−Removed: Regular turnover among our managers and other employees at our branches makes it more difficult for us to operate our branches and increases our costs of operations, which could have an adverse effect on our business, results of operations and financial condition.
+Added: Frequent turnover among branch managers and staff may disrupt operations, increase staffing costs, and negatively impact customer experience, regulatory compliance, and the Company’s overall financial performance.
The annual turnover as of March 31, 2025 among our branch employees was approximately 47.4%.
1 unchanged sentence
If we are unable to keep our employee turnover rates consistent with historical levels or if unanticipated problems arise from our high employee turnover, our business, results of operations, and financial condition could be adversely affected.
−Removed: Absence of dividends could reduce our attractiveness to investors.
+Added: The absence or reduction of dividend payments may decrease the Company’s attractiveness to income-focused investors and impact shareholder sentiment.
Since 1989, we have not declared or paid cash dividends on our common stock and may not pay cash dividends in the foreseeable future.
5 unchanged sentences
Additional information regarding the similar effect of laws in certain states in which we operate is described in Part 1, Item 1, “Description of Business - Government Regulation.”
−Removed: Overall stock market volatility may materially and adversely affect the market price of our common stock.
+Added: Broad stock market fluctuations—driven by economic, geopolitical, or investor sentiment factors—may materially impact the trading price of the Company’s common stock, regardless of Company performance.
The Company’s common stock price has been and is likely to continue to be subject to significant volatility.
9 unchanged sentences
general conditions in the financial service industry;
−Removed: disruption to the domestic financial services industry, the domestic or global economy, including inflationary pressures, or the domestic or global credit or capital markets;
+Added: developments in domestic or international tariffs or trade agreements, disruption to the domestic financial services industry, the domestic or global economy, including inflationary pressures, or the domestic or global credit or capital markets;
changes in financial estimates by securities analysts;
4 unchanged sentences
or significant changes in our senior management team.
−Removed: Changes to accounting rules, regulations or interpretations could significantly affect our financial results.
+Added: Changes in accounting rules, regulations, or interpretations may materially affect the Company’s reported financial results and disclosures.
New accounting rules or regulations, changes to existing accounting rules or regulations, and changing interpretations of existing rules and regulations have been issued or occurred and may continue to be issued or occur in the future.
3 unchanged sentences
As a result of changes to financial accounting or reporting standards, whether promulgated or required by the FASB or other regulators, we could be required to change certain assumptions or estimates we previously used in preparing our financial statements, which could negatively impact how we record and report our results of operations and financial condition.
−Removed: If assumptions or estimates we use in preparing our financial statements are incorrect or are required to change, our reported results of operations and financial condition may be adversely affected.
−Removed: We are required to use certain assumptions and estimates in preparing our financial statements under GAAP, including determining allowances for credit losses, the fair value of financial instruments, asset impairment, reserves related to litigation and other legal matters, the fair value of share-based compensation, valuation of income, and other taxes and regulatory exposures.
+Added: Inaccurate or revised assumptions and estimates used in financial reporting may adversely impact the Company’s reported operating results and financial condition.
+Added: We are required to use certain assumptions and estimates in preparing our financial statements under GAAP, including determining allowances for credit losses, the fair value of financial instruments, asset impairment, reserves related to litigation
+Added: and other legal matters, the fair value of share-based compensation, valuation of income, and other taxes and regulatory exposures.
In addition, significant assumptions and estimates are involved in determining certain disclosures required under GAAP, including those involving the fair value of our financial instruments.
2 unchanged sentences
As a result of changes to financial accounting or reporting standards, whether promulgated or required by the FASB or other regulators, we could be required to change certain assumptions or estimates we previously used in preparing our financial statements, which could negatively impact how we record and report our results of operations and financial condition.
−Removed: The future issuance of additional shares of our common stock in connection with potential acquisitions or otherwise will dilute all other shareholders.
+Added: Future issuance of additional common stock—whether for acquisitions, capital raises, or other purposes—may dilute existing shareholders and impact earnings per share.
Except in certain circumstances, we are not restricted from issuing additional shares of common stock, including any securities that are convertible into or exchangeable for, or that represent the right to receive, common stock.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.