Total Revenue

21.6% YoY increase from $628.44M to $764.04M " "

The increased total revenue in Q2 2025 is driven by consistent strength in originations and receivables—as seen in Q1 2024 (26% increase) and Q1 2025 (22% increase)—and sustained credit discipline, which together have supported revenue growth. " " " " " "

United States Revenue

21% YoY increase from $615.16M to $744.93M " "

The boost in U.S. revenue mirrors trends in earlier periods where robust performance in both small business and consumer segments, including higher loan originations and receivables, drove revenue; efficient marketing coupled with stable risk management helped maintain this momentum. " " " "

Other International Revenue

44% YoY increase from $13.28M to $19.12M " "

The strong growth in Other International revenue—though from a smaller base—is consistent with earlier surges (180% in Q1 2024 and 51% in Q1 2025), suggesting that international expansion is beginning to stabilize after an initial spike, as market penetration and scaling continue. " "

Consolidated Revenue Growth

Q3 2025

flat to slightly higher with ≈20% growth " "

more than 15% higher than Q3 2024 "

lowered

Net Revenue Margin

Q3 2025

55% to 60% " "

55% to 60% "

no change

Marketing Expenses

Q3 2025

around 20% of revenue " "

around 20% of revenue "

no change

O&T Costs

Q3 2025

around 8.5% of revenue " "

around 8.5% of revenue "

no change

G&A Costs

Q3 2025

around 6% of revenue " "

around 5.5% of revenue "

lowered

Adjusted EPS

Q3 2025

over 35% higher than Q2 2024 "

20% to 25% higher than Q3 2024 "

lowered

Revenue Growth

FY 2025

expected to be slightly faster than originations growth "

around 20% higher compared to FY 2024 "

raised

Adjusted EPS Growth

FY 2025

at least 25% "

around 30% higher compared to FY 2024 "

raised

Credit Risk Management and Rapid Credit Model Adjustments

Q1 2025 emphasized advanced algorithms and nimble model adjustments. " " " Q4 2024 stressed disciplined risk management with moderate adjustments and algorithm tweaks. " " " Q3 2024 highlighted strong credit monitoring using machine learning to quickly adapt to conditions. " " " "

Q2 2025 reiterated a robust risk management approach, with rapid credit model adjustments in response to minor cyclical fluctuations and slightly elevated defaults from new customers. " "

Consistent use of sophisticated, real‐time risk management techniques with continued rapid adjustments; sentiment remains positive.

Consumer and Small Business Segment Performance

Q1 2025 reported strong revenue and originations growth. " " Q4 2024 delivered record revenue and balanced portfolio performance with optimism from small business owners. " " " " Q3 2024 emphasized record small business originations and stable consumer credit quality. " " " "

Q2 2025 continued to show significant revenue and originations growth in both segments, though a slight moderation in consumer originations occurred due to quicker credit tightening. " " "

Ongoing strength across both segments with minor adjustments in consumer lending; overall sentiment is consistently positive.

Operational Efficiency and Leadership Transition

Q1 2025 and Q3 2024 focused on scalable operating models and efficient expense management, with no mention of leadership changes. " " " " Q4 2024 reiterated cost efficiency without transition details. " "

Q2 2025 maintained efficient operations (e.g., reduced O&T costs and managed G&A expenses) and introduced a leadership transition with new CEO and CFO announcements. " " " " " "

Continued operational efficiency with the new emergence of leadership transition signals a proactive evolution in management; sentiment is positive regarding the future outlook.

Competitive Landscape Dynamics and Emerging Threats

Q1 2025 described a favorable competitive environment with no new entrants. " Q4 2024 and Q3 2024 downplayed sustained competitive pushes, noting only modest, fleeting impacts. " " " "

Q2 2025 acknowledged a stable SMB market and a more fragmented consumer segment that may experience short-term competitive headwinds, offset by eventual tailwinds. " " "

The competitive landscape remains steady with nuanced challenges in consumer lending; sentiment is cautiously optimistic.

Margin Management, Interest Rate Sensitivity, and Share Repurchase Strategies

Q1 2025 reported stable net revenue margins and an active repurchase program. " " " " Q4 2024 maintained margins with opportunistic buybacks and effective control over operating expenses. " " " Q3 2024 showed strong margin levels and effective use of repurchase capacity. " "

Q2 2025 delivered a consolidated net revenue margin in the expected 55–60% range, improved cost of funds, and continued an opportunistic share repurchase program to address valuation disconnects. " " " "

Steady margin management and cost control with proactive share buybacks remain a key strength; sentiment is strongly positive for shareholder value.

Regulatory Challenges and Macroeconomic Risks

Q1 2025 focused mainly on macroeconomic resilience with implicit regulatory navigation. " " " Q4 2024 detailed items like the small business disclosure and small dollar rules, while Q3 2024 provided limited regulatory discussion. "

Q2 2025 emphasized a robust macroeconomic environment with strong labor market indicators and consistent credit performance, while regulatory challenges were not a primary focus. " "

Macroeconomic conditions continue to be favorable with reduced regulatory emphasis, reflecting a stable risk outlook; sentiment is positive.

New Customer Acquisition and Associated Credit Risks

Q1 2025 highlighted that new customers initially exhibit higher charge‐off rates offset by long‐term value. " " Q4 2024 stressed a stable mix of new customer originations. " Q3 2024 confirmed a consistent new versus returning customer ratio with stable overall credit risk. " " "

Q2 2025 observed slightly elevated default metrics among new customers, prompting rapid credit model tightening, yet overall diversified originations and growth mitigated the impact. " " " "

A modest increase in initial credit risks from new customers is being swiftly managed; the long-term acquisition strategy remains sound with a cautiously positive outlook.

Adoption of Advanced Risk Management Technologies (Machine Learning)

Q1 2025 underscored machine learning-powered credit risk management to drive risk-adjusted decisions. " " Q4 2024 emphasized proprietary machine learning and analytics as central to a 20-year profitable track record. " " Q3 2024 highlighted world-class machine learning algorithms in maintaining consistent credit performance. " " "

Q2 2025 incorporated advanced analytics and real-time risk assessment as part of its unit economics framework, though without an explicit focus on machine learning details. " " "

The strategic reliance on advanced analytics continues, with slightly less explicit emphasis on machine learning in Q2 2025; overall approach and sentiment remain stable and positive.