Executive Summary

Record Q2 revenue of $3.12M (+35.1% YoY) with strong originations ($40.36M, +25% YoY) and accelerating profitability; basic EPS rose to $0.11 and ROE reached 23.9% .
Profit growth outpaced revenue as scale and mix drove operating leverage: net income up 86% YoY to $0.33M; diluted EPS $0.09 .
Rate backdrop turning supportive: management expects declining benchmark rates to be a tailwind for profitability while continuing geographic expansion; no formal numerical guidance provided .
Key catalysts: continued originations growth, improving cost of funds as rates normalize, and balance sheet capacity under the $45M revolving credit facility through Nov-2025 .

What Went Well and What Went Wrong

What Went Well

Revenue/Originations momentum: Q2 revenue up 35.1% YoY to $3.12M; originations up 25% to $40.36M, driven by additional marketing reps and broader state footprint .
Profitability inflection: Net income +86% YoY to $327k with basic EPS $0.11; Q2 ROE 23.87% and ROA 1.71% demonstrate scaling returns .
Management tone on rates/expansion: “Standard has delivered record quarterly revenues… As we anticipate decreasing rates in the coming months… opportunity for further increased profitability… growth trajectory expanding into new geographic territories.” — CEO William Koppelmann .

What Went Wrong

Funding costs still elevated: Cost of funds (gross) 8.02% in Q2 (vs 7.74% prior year), contributing to interest expense growth; line utilization rose with portfolio growth .
Higher credit provisioning with scale: Provision for credit losses increased to $304k in Q2 as portfolio expanded; reserve ratio rose to 2.43% (vs 1.90% prior year) .
Liquidity tight at quarter-end cash level: Cash was $1,044 at 6/30/24, with reliance on the revolver; working capital remains supported primarily by receivables and the facility .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($)	$2,308,439	$2,829,953	$3,119,300
Net Income ($)	$176,041	$118,802	$327,452
Basic EPS ($)	$0.05	$0.03	$0.11
Diluted EPS ($)	$0.05	$0.03	$0.09
Net Income Margin (%)	7.6% (calc from )	4.2% (calc from )	10.5% (calc from )
Consensus Revenue	n/a (unavailable via S&P Global)	n/a (unavailable via S&P Global)	n/a (unavailable via S&P Global)
Consensus EPS	n/a (unavailable via S&P Global)	n/a (unavailable via S&P Global)	n/a (unavailable via S&P Global)

KPIs and unit economics

KPI (Three-month period unless noted)	Q2 2023	Q1 2024	Q2 2024
Originations ($)	$32,191,554	$39,215,406	$40,355,061
Interest Earned Rate (%)	16.96%	17.2%	17.58%
Cost of Funds – Gross (%)	7.74%	7.92%	8.02%
Cost of Funds – Net (%)	6.05%	6.60%	6.53%
Provision Rate (%)	0.48%	0.57%	0.75%
Reserve Ratio (%)	1.90%	2.18%	2.43%
Return on Assets (%)	1.06%	0.55%	1.71%
Return on Equity (%)	13.31%	7.21%	23.87%

Balance sheet and funding snapshot (quarter-end)

Premium finance receivables (net): $70.28M at 6/30/24 vs $60.74M at 12/31/23 .
Revolving line of credit: $44.28M outstanding at 6/30/24; availability $0.72M; SOFR + 2.55–2.96% (8.08% at 6/30/24); matures 11/30/2025 .
Notes payable (others): $8.13M; related parties: $3.12M at 6/30/24 .

Segment breakdown

Not applicable; the company operates a single premium finance segment (commercial P&C premium financing) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	None provided	None provided	Maintained (no guidance)
EPS/Net Income	FY 2024	None provided	None provided	Maintained (no guidance)
Originations	FY 2024	None provided	None provided	Maintained (no guidance)
Funding/Cost of Funds	FY 2024	None provided	Qualitative: management anticipates rate declines could support increased profitability	Qualitative commentary
Capital return	2H 2024	n/a	Declared 7% APY preferred dividend (paid Aug-2024)	New action

Note: No formal numerical guidance disclosed; management framed macro tailwinds from potential rate declines and continued geographic expansion .

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in our document set.

Topic	Previous Mentions (Q4’23/Q1’24)	Current Period (Q2’24)	Trend
Rates/Macro	Expect elevated funding costs; ability to pass through partly; short-duration loans help mitigate spread compression .	Anticipates decreasing rates; sees opportunity for increased profitability as rates decline .	Improving backdrop for NIM/profitability
Growth/Originations	Origination growth via sales hires and new states; Q1 originations $39.2M (+27% YoY) .	Q2 originations $40.36M (+25% YoY), continued hiring and expansion .	Sustained volume growth
Credit Quality/Reserves	Reserve ratio 2.18%; provision rate 0.57% in Q1; portfolio scaling .	Reserve ratio 2.43%; provision rate 0.75% as portfolio grows .	Conservatism rises with scale
Funding/Capacity	$45M FHB revolver; compliance after amended covenants; availability $0.26M at 3/31 .	$45M capacity; availability $0.72M at 6/30; SOFR+2.55–2.96% .	Adequate capacity; modest headroom
Geographic expansion	Licenses/operations across 30+ states .	Plans to expand into new territories continue .	Ongoing expansion

Management Commentary

“Standard has delivered record quarterly revenues… As we anticipate decreasing rates in the coming months, Standard expects… opportunity for further increased profitability. Our current position supports Standard’s growth trajectory expanding into new geographic territories.” — CEO William Koppelmann .
Revenue drivers: “Revenue increased… primarily due to a 37.6% increase in finance charges… increase in loan originations driven by additional marketing representatives” .
Expense drivers: “$209,772 increase in interest expense… increased borrowings on the line of credit… $149,138 increase in provision for credit losses… $111,663 increase in salaries and wages… $74,209 increase in commissions” .
Capital/credit: Line utilization $44.28M; rate ~8.08% at quarter-end; maturity 11/30/2025; availability $722,781 .
Capital return: “Dividends of 7% APY on preferred stock were declared and paid in August 2024” and declared $29,050 in July (paid Aug) per subsequent events .

Q&A Highlights

No Q2 2024 earnings call transcript or Q&A was available; no additional call-based guidance or clarifications identified in filings.

Estimates Context

Street consensus (S&P Global) for Q2 2024 revenue/EPS was not available at the time of analysis; SPFX trades OTC with limited sell-side coverage. We therefore cannot provide vs-consensus comparisons and do not identify beats/misses for the quarter .
Where consensus is unavailable, investors should benchmark against internal targets and YoY/seq trends: revenue +35.1% YoY and EPS improved to $0.11 basic in Q2 2024 .

Key Takeaways for Investors

Growth + profitability: Revenue (+35% YoY) and net income (+86% YoY) demonstrate operating leverage as the portfolio scales; ROE of ~24% underscores improving returns .
Rate tailwind potential: With management expecting rate declines, funding costs (currently ~8.02% gross) could ease, supporting NIM and EPS in coming quarters .
Volume engine intact: Originations remain strong ($40.36M, +25% YoY) on expanded sales coverage and state licensing; late/fee income supports revenue mix .
Credit disciplined: Reserve ratio rose to 2.43% with growth; aging/cancelled balances are monitored, and collateral via unearned premiums helps mitigate loss severity .
Funding capacity: $45M revolver through Nov-2025 and subordinated notes provide growth capital; availability was ~$0.72M at Q2-end, implying continued need to balance growth with liquidity .
Capital return: Continued preferred dividend payments (7% APY) highlight willingness to return capital within constraints .
Near-term setup: Watch rate path, originations cadence into seasonally active periods, reserve/provision behavior, and borrowings/utilization versus availability for incremental capacity .

Sources: Q2 2024 8-K press release and Form 10-Q; Q1 2024 Form 10-Q. Press release: highlights and management quotes . Q2 2024 10-Q: financial statements, KPIs, funding and reserves . Q1 2024 10-Q: trend KPIs and drivers . Additional press release syndications corroborating Q2 highlights: GlobeNewswire/Nasdaq/Yahoo .

STANDARD PREMIUM FINANCE HOLDINGS, INC. (SPFX)·Q2 2024 Earnings Summary