Executive Summary

Revenue of $209.5M landed within guidance and net revenue rose 19.8% sequentially to $146.5M as credit costs fell; diluted EPS was $(1.46) and net loss improved to $(59.5)M from $(186.4)M in Q4 2022 .
Operating expenses declined 6.2% q/q to $118.2M, better than prior guidance to be “flat vs Q4,” reflecting restructuring and store closures; net charge-off rate improved to 11.5% vs 14.8% in Q4 .
Management highlighted progress on transformation and raised >$230M gross capital post-quarter ($150M term loan; C$110M Canada SPV), strengthening liquidity and funding for growth .
2Q23 outlook guides revenue to $200–$210M, NCOs 13–16%, and OpEx $112–$120M; beats/misses versus 1Q guidance include lower-than-guided OpEx and NCOs, with revenue in-range .
Narrative catalysts: capital raise, sequential credit improvement and cost actions; regulatory watch includes Canada’s proposed APR cap (Budget 2023) .

What Went Well and What Went Wrong

What Went Well

Credit metrics improved: consolidated NCO rate fell 326 bps q/q to 11.5% (direct lending policy alignment in Canada and better recoveries), while 31–60 and 61–90 delinquency ratios were stable-to-lower q/q .
Cost discipline: operating expenses dropped 6.2% q/q to $118.2M, aided by restructuring and closures (Q1 restructuring $10.0M vs $13.1M in Q4), outperforming guidance for “flat vs Q4” OpEx .
Liquidity/funding: finalized $150M term loan and C$110M non‑recourse warehouse facility on May 9, enhancing available resources and flexibility to execute the plan .
Management quote: “We successfully raised over $230 million in gross capital… delivered results that were favorable relative to our guidance expectations, including solid revenue, well‑managed operating expenses and stable credit quality” — Doug Clark, CEO .

What Went Wrong

Revenue pressure from mix shift: total revenue decreased 4% q/q to $209.5M and 28% y/y as CURO shifted to longer-term, lower-yield credit products and exited legacy U.S. business in 2022 .
Higher interest expense: rose 7% q/q to $58.9M, reflecting rising benchmark rates and non-recourse debt funding needs; q/q increase offset some net revenue gains .
Canada POS credit normalization: NCOs and delinquencies increased with portfolio maturation (NCO annualized 5.6%; 31+ DPD 3.9%), indicating ongoing normalization in that line .

Financial Results

Metric	Q1 2022	Q4 2022	Q1 2023
Total Revenue ($USD Millions)	$290.2	$217.2	$209.5
Net Revenue ($USD Millions)	$192.7	$122.3	$146.5
Net (Loss) Income ($USD Millions)	$1.3	$(186.4)	$(59.5)
Diluted EPS ($USD)	$0.03	$(4.60)	$(1.46)
Operating Expenses ($USD Millions)	$153.7	$126.0	$118.2
Interest Expense ($USD Millions)	$38.3	$55.0	$58.9
Provision for Losses ($USD Millions)	$97.5	$94.8	$62.9
Gross Loans Receivable ($USD Millions)	$1,628.6	$2,087.8	$2,062.8
Net Charge-off Rate (%)	23.2%	14.8%	11.5%

Segment breakdown

Segment Metric	Q1 2022	Q4 2022	Q1 2023
Direct Lending – Revenue ($USD Millions)	$269.9	$181.9	$169.4
Direct Lending – Segment Operating Income ($USD Millions)	$43.1	$(7.4)	$17.9
Canada POS – Revenue ($USD Millions)	$20.3	$35.3	$40.1
Canada POS – Segment Operating Income ($USD Millions)	$(4.2)	$3.7	$10.5

KPIs

KPI	Q1 2022	Q4 2022	Q1 2023
31–60 Days Delinquency Ratio (%)	2.1%	1.9%	1.8%
61–90 Days Delinquency Ratio (%)	1.9%	1.3%	1.5%
91+ Days Delinquency Ratio (%)	2.2%	2.6%	3.2%
Net Charge-offs (Annualized %)	23.2%	14.8%	11.5%

Notes:

CECL adoption on Jan 1, 2023 increased allowance by $135.2M (opening accumulated deficit), lifting ACL to 12.6% of gross loans in Q1 2023 .
Q1 restructuring charges were $10.0M vs $13.1M in Q4, aiding sequential OpEx decline .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Receivables ($USD Billions)	1Q23 vs 2Q23	$2.00–$2.05B	$2.0–$2.1B	Raised upper bound
Revenue ($USD Millions)	1Q23 vs 2Q23	$195–$215M	$200–$210M	Maintained; tightened range (lower top end)
Net Charge-offs (%)	1Q23 vs 2Q23	15%–17%	13%–16%	Lowered
Operating Expenses ($USD Millions)	1Q23 vs 2Q23	“Flat vs Q4” (Q4 OpEx $126M)	$112–$120M	Lowered vs Q4 baseline

Earnings Call Themes & Trends

Note: The Q1 2023 earnings call transcript was listed (Document ID 1) but could not be retrieved due to a database inconsistency. Themes below draw from the press release and earnings deck.

Topic	Previous Mentions (Q3 and Q4 2022)	Current Period (Q1 2023)	Trend
Product mix and margins	Shift to longer‑duration, lower‑yield products; net interest margin post charge-offs fell y/y; impairment charges in Q4	Net interest income post charge-offs improved q/q; margin steady at ~18%	Stabilizing
Credit performance	Consolidated NCO rate improved y/y in Q3; elevated sequentially in Q4 with normalization	NCO rate fell to 11.5% q/q; policy alignment and better recoveries	Improving
Operating leverage	Cost actions (store closures, headcount) outlined in Q3; Q4 restructuring $13M	OpEx down 6.2% q/q; restructuring $10M	Improving
Liquidity/funding	Facility upsizes; debt mix ~two‑thirds fixed	Raised $150M term loan and C$110M SPV; available capital ~$303.6M	Strengthened
Technology initiatives	Centralized late-stage collections (U.S.)	Centralized collections fully operational; cloud migration targeted in Q2	Execution progressing
Regulatory/legal	Canada Budget 2023 proposes APR cap to 35% (monitoring)	Ongoing monitoring; no Q1 impact cited; CECL adoption completed	Watch/monitor

Management Commentary

Strategic focus: Management emphasized “emerging benefits of our business transformation,” execution of the plan to profitability, supportive capital markets access, and results “favorable relative to our guidance” in revenue, OpEx, and credit quality .
Important quote (Doug Clark, CEO): “We successfully raised over $230 million in gross capital… We also delivered results that were favorable relative to our guidance expectations, including solid revenue, well‑managed operating expenses and stable credit quality… we will continue to execute on our business plan… generating long‑term sustainable returns” .

Q&A Highlights

The Q1 2023 earnings call transcript could not be accessed due to a retrieval error (database inconsistency). Guidance clarifications are reflected in the 2Q23 outlook slide: revenue $200–$210M, NCOs 13–16%, OpEx $112–$120M, and continued liquidity optimization .

Estimates Context

S&P Global consensus estimates for CURO Q1 2023 were unavailable due to missing mapping in the SPGI dataset, so we cannot provide a direct compare to Street EPS and revenue forecasts (consensus unavailable).
Relative to company guidance: revenue was within 1Q guidance ($195–$215M), while NCOs and OpEx improved versus guided ranges, implying better-than-expected credit costs and operating efficiency for the quarter .

Key Takeaways for Investors

Revenue in-range at $209.5M; net revenue rose ~20% q/q as provision fell and credit performance improved; EPS loss narrowed materially vs Q4 .
Cost execution is a positive: OpEx down 6.2% q/q to $118.2M, with restructuring tapering (Q1 $10.0M vs Q4 $13.1M) and centralization initiatives in place .
Credit normalization is trending favorable: consolidated NCOs improved to 11.5%; note Canada POS delinquencies rose with maturation, requiring ongoing monitoring .
Liquidity strengthened: $150M term loan and C$110M SPV secured; available capital resources approximated $303.6M at March 31, 2023 .
Accounting shift (CECL) increased ACL to 12.6% of gross loans; expect allowance and credit metrics to reflect lifetime‑loss expectations going forward .
2Q23 guide implies stable revenue, lower NCOs, and reduced OpEx versus Q4 baseline — near‑term setup favors continued operating improvement if credit holds .
Regulatory watch: Canada’s proposed APR cap (to 35%) could impact product economics; management is engaging policymakers and monitoring developments .

Additional context from prior quarters:

Q4 2022 included goodwill impairments ($145.2M total) and restructuring, which depressed results; Q1 benefited from absence of impairment and lower restructuring .
Q3 2022 marked completion of strategic portfolio repositioning (sale of legacy U.S. direct lending; First Heritage acquisition), setting the mix shift to longer-term, lower‑loss products .

Sources: CURO Q1 2023 8‑K press release and earnings deck, and Q4/Q3 2022 earnings materials .

CURO Group Holdings Corp. (CURO)·Q1 2023 Earnings Summary