Executive Summary

Q2 2024 total operating revenue rose 8.6% year over year to $315.6M, with managed receivables up 11.1% to $2.415B and record quarterly purchase volume of $727.9M; diluted EPS was $0.99 and net income attributable to common shareholders was $18.0M .
Management highlighted a new partnership with Synchrony that expands access to “second look” applicants across thousands of merchants, citing record purchase volume and expectations for continued volume increases in 2H24 .
Interest expense increased 56.7% YoY to $37.9M, reflecting higher debt balances and borrowing costs; fair value changes also rose due to late fee rule assumptions (CFPB) and portfolio mix dynamics .
No formal numeric guidance was issued; management expects continued receivables growth, rising interest expense, and higher servicing/marketing costs in 2H24; they believe mitigation actions should fully offset potential late fee rule economics if implemented .
S&P Global Wall Street consensus estimates for Q2 2024 were unavailable due to request limits; estimate comparisons are not included (S&P Global data unavailable).

What Went Well and What Went Wrong

What Went Well

Partnership with Synchrony expands distribution and access to millions of declined prime applications; management expects “meaningful opportunities for continued long term growth.” Quote: “Through this deeper partnership and technology integration, our platform will be available to the thousands of merchant partners served by Synchrony…” .
Record purchase volume in retail credit drove top-line momentum; total operating revenue increased 8.6% YoY to $315.6M as accounts served reached 3.6M .
Managed receivables grew 11.1% to $2.415B, with both private label and general purpose credit card receivables contributing (+$121.1M and +$120.2M, respectively, in the 12 months ended June 30, 2024) .

What Went Wrong

Interest expense climbed 56.7% YoY to $37.9M due to higher outstanding debt and borrowing costs, pressuring earnings despite revenue growth .
Net income attributable to common shareholders declined 4.4% YoY to $18.0M; diluted EPS fell to $0.99 (from $1.02), reflecting funding costs and fair value dynamics .
Changes in fair value of loans increased to $186.3M (from $177.8M), influenced by CFPB late fee rule assumptions and asset performance considerations—an overhang for margin stability .

Financial Results

Core P&L vs Prior Year and Prior Quarter

Metric	Q2 2023	Q1 2024	Q2 2024
Total Operating Revenue ($USD Millions)	$290.8	$290.2	$315.6
Net Margin ($USD Millions)	$88.5	$93.5	$90.1
Total Operating Expenses ($USD Millions)	$56.5	$60.7	$61.5
Interest Expense ($USD Millions)	$24.2	$35.1	$37.9
Net Income Attributable to Common ($USD Millions)	$18.8	$19.9	$18.0
Diluted EPS ($USD)	$1.02	$1.09	$0.99

Notes: YoY growth in revenue +8.6%; QoQ revenue +8.8%; net income common down YoY and QoQ due to higher interest expense and fair value changes .

Revenue Composition

Revenue Component ($USD Millions)	Q2 2023	Q2 2024
Consumer loans, including past due fees	$220.0	$242.3
Fees and related income on earning assets	$62.9	$59.5
Other revenue	$7.8	$13.8
Total Operating Revenue	$290.8	$315.6

KPIs and Balance Sheet Highlights

KPI / Metric	Q1 2024	Q2 2024
Managed Receivables ($USD Billions)	$2.318	$2.415
Fair Value to Total Managed Receivables Ratio (%)	92.8%	94.3%
Accounts Served (Millions)	3.5	3.6
Purchase Volume ($USD Millions)	$594.9	$727.9
Return on Average Equity (%)	19.6%	17.0%
Share Repurchases (Shares / $USD Millions)	N/A	49,203 / $1.3
Notes Payable, net ($USD Millions)	$1,862 (Dec-23)	$1,879 (Jun-24)
Senior Notes, net ($USD Millions)	$144.5 (Dec-23)	$199.5 (Jun-24)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Receivables Growth	FY 2024	Qualitative: continued growth vs 2023	Qualitative: continued growth; mix shift toward higher-FICO private label; general purpose cards growing	Maintained (qualitative)
Interest Expense	FY 2024	“Do not expect interest expense to increase significantly in short term (absent raising additional capital)”	Expect quarterly interest expense to increase with growth and higher effective rates	Raised (outlook)
Operating Expenses (Servicing, Marketing, Salaries)	2H 2024	Marketing costs expected to increase in 2H24	Continued increases in servicing and salaries/benefits; higher marketing tied to growth	Raised (qualitative)
Managed Yield Ratios	FY 2024	N/A	Potential marginally lower managed yields due to mix shift to higher-FICO private label	New qualitative color
Late Fee Rule (CFPB) Impact	FY 2024	N/A	Mitigation actions across back book/new originations expected to fully offset economic impact if rule implemented	New qualitative color
Dividends	Q3 2024	N/A	Series B preferred dividend $0.476563/share payable Sept 15, 2024 (record Sept 1)	Announced

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call transcript was available after comprehensive search; themes below reflect press release commentary.

Topic	Previous Mentions (Q4’23 and Q1’24)	Current Period (Q2’24)	Trend
Funding costs / Interest expense	Q1: Over 90% of debt fixed; did not expect significant increase short term absent new capital	Interest expense up 56.7% YoY; expect further increases with growth and rates	Deteriorating cost trend
CFPB Late Fee Rule Mitigation	Limited prior detail	Actions across back book/new originations; expect full offset if implemented	Proactive mitigation
Receivables growth and mix	Q1: Continued growth; underwriting tightened since 2022; general purpose cards growing	Double-digit receivables growth; shift to higher-FICO private label; resiliency in consumer performance	Positive growth with mix shift
Strategic partnerships (Synchrony)	Not previously disclosed	New Synchrony partnership expanding “second look” access across thousands of merchants	Structural distribution tailwind
Purchase volume trajectory	Q1: Purchase volume $594.9M	Record $727.9M; expect continued substantial volume increases in remainder of year	Accelerating

Management Commentary

“We continue to be pleased with over fifty consecutive quarters of year over year growth in revenue, managed receivables and serviced accounts… record quarterly purchase volume, and attractive returns on our shareholders' capital.” — Jeff Howard, CEO .
“A highlight of the quarter was the announcement of our partnership with Synchrony… our platform will be available to the thousands of merchant partners served by Synchrony and access, over time, to millions of declined applications annually.” .
“We… have undertaken changes on the majority of our back book and new originations. We believe that these actions will fully offset the economic impact of the new late fee rule if implemented.” .
“Performance within our various product lines has shown resiliency as everyday Americans have benefited from increases in wages in excess of inflation for several quarters.” .

Q&A Highlights

No Q2 2024 earnings call transcript was found; therefore, Q&A themes and clarifications were not available despite targeted searches across investor site and financial transcript aggregators .

Estimates Context

S&P Global Wall Street consensus estimates for Q2 2024 EPS and revenue could not be retrieved due to rate limit errors; as a result, vs-estimate comparisons are not included (S&P Global data unavailable).

Additional Relevant Press Releases (Q2 timeframe context)

Add-on senior notes issuance: $55M priced (9.25% due 2029); subsequently closed with $60M total including underwriters’ option; net proceeds ~$56.5M; intended use to redeem a portion of Class B preferred units and/or general corporate purposes .
Series B preferred dividend declared: $0.476563 per share payable Sept 15, 2024 to holders of record Sept 1, 2024 .

Key Takeaways for Investors

Top-line resilience with double-digit receivables growth and record purchase volume; distribution tailwinds from Synchrony partnership support continued volume momentum in 2H24 .
Funding cost headwinds intensifying: interest expense growth outpacing revenue gains; expect further increases as receivables and effective rates rise—watch margin trajectory and liability mix (incremental senior notes) .
Regulatory mitigation: comprehensive fee/product/pricing changes position the portfolio to offset potential CFPB late fee economics; monitor timing/outcome of litigation and any implementation impacts on yields .
Mix shift dynamics: Higher-FICO private label growth can modestly compress managed yield ratios while improving charge-off expectations; track yield vs. loss trade-off and fair value marks .
No formal numeric guidance; qualitative outlook suggests higher OpEx (servicing/marketing/salaries) to support growth—keep an eye on operating leverage and acquisition efficiency .
Near-term trading setup: Revenue momentum and partnership news are positives, but rising interest expense and fair value sensitivity to regulation are the swing factors; estimate comparisons are unavailable, limiting a catalyst from “beat/miss” framing this quarter.

Atlanticus Holdings Corp (ATLC)·Q2 2024 Earnings Summary