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Atlanticus Holdings
(NASDAQ:ATLC)
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Rating:61Neutral
Price Target:
$98.00
▲(5.47% Upside)
Action:Reiterated
Date:10/07/26
ATLC scores as moderate: strong growth, cash generation, and constructive earnings-call momentum (including Mercury integration and funding achievements) are tempered by high balance-sheet leverage and elevated/expected-to-rise credit losses. Valuation is a relative positive with a low P/E, while technical signals are neutral-to-mixed and do not materially improve the outlook.
Positive Factors
Strong organic growth and customer expansion
Organic receivables and account growth shows that Atlanticus is expanding beyond the Mercury acquisition. Continued customer additions across multiple origination channels can broaden the platform, improve operating scale, and support recurring credit revenue over the next several quarters.
Negative Factors
Highly leveraged balance sheet
Very high leverage leaves Atlanticus with limited financial flexibility if credit performance or funding conditions deteriorate. Although leverage improved from 2025, the small equity base still amplifies losses and can constrain investment, capital allocation, and resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong organic growth and customer expansion
Organic receivables and account growth shows that Atlanticus is expanding beyond the Mercury acquisition. Continued customer additions across multiple origination channels can broaden the platform, improve operating scale, and support recurring credit revenue over the next several quarters.
Read all positive factors
Atlanticus Holdings (ATLC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.31B
Dividend Yield16.39%
Average Volume (3M)113.62K
Price to Earnings (P/E)9.0
Beta (1Y)1.58
Revenue Growth83.72%
EPS Growth35.89%
CountryUS
Employees576
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)9.60
Shares Outstanding15,170,038
10 Day Avg. Volume102,740
30 Day Avg. Volume113,616
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)1.66
Price to Sales (P/S)1.44
P/FCF Ratio1.60
Enterprise Value/Market Cap5.85
Enterprise Value/Revenue4.61
Enterprise Value/Gross Profit5.57
Enterprise Value/Ebitda24.62
Forecast
1Y Price Target
$132.67Price Target Upside42.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)9.94
Revenue Forecast (FY)$3.01B
Atlanticus Holdings Business Overview & Revenue Model
Company Description
Atlanticus Holdings Corporation, operating under the ticker ATLC, is a financial services enterprise providing a spectrum of credit and related financial solutions to consumers throughout the United States. The company's operations are structured ...
How the Company Makes Money
Atlanticus makes money primarily by extending and managing consumer credit and earning income from that activity. Key revenue sources generally include: (1) finance charges and interest income earned on outstanding credit card and other consumer r...
Atlanticus Holdings Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented strong operational and financial momentum: record revenue, record new customers, substantial receivable growth and a high ROE driven by both Mercury acquisition benefits and organic expansion. Management reported Mercury integration as ahead of plan, achieved favorable funding outcomes (including first AAA ABS rating), and reiterated disciplined credit management. Offsetting positives are material increases in charge-offs and a sizeable negative fair value impact driven by portfolio scale, higher interest expense and higher operating costs tied to growth, plus competitive pressure in direct mail acquisition leading to higher acquisition costs. On balance, the highlights — strong profitability, scalable receivable growth, ahead-of-plan acquisition integration, liquidity and funding achievements — meaningfully outweigh the lowlights, though the elevated charge-offs and rising funding/operating costs are key risks to monitor.Positive Updates
Record Financial Results and Profitability
Net income attributable to common shareholders of $47.4M, a 67% increase year-over-year, or $2.50 per diluted share; return on average equity of 28.1%, well above the 20% long-term target; company reported 'record profits' driven by record revenue and customer metrics.
Negative Updates
Large Charge-Offs and Negative Fair Value Impact
Changes in fair value were negative $396M versus negative $217M in the prior year; principal and finance charge-offs totaled $433M compared with $212M a year ago, reflecting the enlarged managed receivables base (grew to $6.9B from $3B).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Financial Results and Profitability
Net income attributable to common shareholders of $47.4M, a 67% increase year-over-year, or $2.50 per diluted share; return on average equity of 28.1%, well above the 20% long-term target; company reported 'record profits' driven by record revenue and customer metrics.
Read all positive updates
Company Guidance
Management reiterated guidance to continue to expect earnings growth and returns on equity at or above its long‑term 20% target (Q2 ROE was 28.1%), after reporting net income of $47.4 million ($2.50 per diluted share, +67% YoY) on operating revenue of $744.3 million (+89% YoY) and net margin of $224 million (+83% YoY). They advised delinquency and charge‑off rates may be slightly higher next quarter as newer receivables season and Mercury is included year‑over‑year, noting the current combined principal net charge‑off rate was 17.7% and changes in fair value were negative $396 million (including $433 million in principal and finance charge‑offs); nevertheless they will prioritize vintage‑level profitability and unit economics over volume. Mercury integration is ahead of plan with repricing and synergies outperforming models and tech integration expected to finish by mid‑Q1, while the company points to strong scale and liquidity (managed receivables $6.9 billion, up ~126% YoY; excluding Mercury ~$3.8 billion, +~26% YoY; added a record 790,000 new customers this quarter and >1 million active accounts YoY excluding Mercury; total assets $7.5 billion; cash and restricted cash $645 million; total equity ~ $700 million), continued access to capital markets (first AAA ABS ratings) and disciplined capital allocation.Atlanticus Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.66B | 704.50M | 459.57M | 365.68M | 374.42M | 453.93M |
| Gross Profit | 1.37B | 396.36M | 283.03M | 254.19M | 291.31M | 363.34M |
| EBITDA | 310.50M | 169.61M | 143.76M | 132.60M | 154.12M | 222.07M |
| Net Income | 154.00M | 122.20M | 111.30M | 102.84M | 135.60M | 177.90M |
Balance Sheet | ||||||
| Total Assets | 7.49B | 7.62B | 3.27B | 2.71B | 2.39B | 1.94B |
| Cash, Cash Equivalents and Short-Term Investments | 645.18M | 621.09M | 375.42M | 339.34M | 384.98M | 409.66M |
| Total Debt | 6.29B | 6.54B | 2.51B | 2.03B | 1.82B | 1.43B |
| Total Liabilities | 6.75B | 7.02B | 2.78B | 2.31B | 2.06B | 1.66B |
| Stockholders Equity | 741.88M | 608.70M | 492.91M | 394.68M | 326.41M | 288.00M |
Cash Flow | ||||||
| Free Cash Flow | 936.46M | 632.94M | 467.62M | 455.32M | 341.28M | 205.28M |
| Operating Cash Flow | 936.98M | 637.96M | 469.40M | 459.32M | 346.13M | 212.37M |
| Investing Cash Flow | -1.41B | -1.51B | -747.03M | -672.20M | -680.78M | -475.02M |
| Financing Cash Flow | 636.86M | 1.14B | 393.61M | 163.34M | 261.25M | 510.33M |
Atlanticus Holdings Technical Analysis
Negative
92.92
Price Trends
92.93
Negative
95.70
Negative
79.67
Positive
Market Momentum
-0.80
Positive
37.68
Neutral
29.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLC, the sentiment is Negative. The current price of 92.92 is above the 20-day moving average (MA) of 91.33, below the 50-day MA of 92.93, and above the 200-day MA of 79.67, indicating a neutral trend. The MACD of -0.80 indicates Positive momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 29.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATLC.
Atlanticus Holdings Risk Analysis
Atlanticus Holdings disclosed 54 risk factors in its most recent earnings report. Atlanticus Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Atlanticus Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $461.83M | 1.61 | 68.06% | 4.67% | 10.16% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.41B | 8.37 | 23.07% | 7.54% | 6.93% | 19.96% | |
65 Neutral | $4.04B | 10.73 | 26.36% | ― | 20.08% | 33.74% | |
63 Neutral | $302.05M | 6.57 | 12.49% | 3.67% | 9.63% | 40.75% | |
63 Neutral | $778.94M | 15.31 | 9.32% | ― | 4.63% | ― | |
61 Neutral | $1.31B | 8.98 | 23.09% | 16.39% | 83.72% | 35.89% |
* Financial Sector Average
ATLC
Atlanticus Holdings
86.19
27.37
46.53%
RM
Regional Management
32.74
-5.74
-14.91%
WRLD
World Acceptance
167.04
24.69
17.34%
OMF
OneMain Holdings
55.72
1.50
2.77%
ENVA
Enova International
165.07
43.87
36.20%
OPFI
OppFi
5.42
-4.63
-46.07%
Atlanticus Holdings Corporate Events
Business Operations and StrategyM&A Transactions
Atlanticus Monetizes Mercury Brand via IP Sale
Positive
Oct 6, 2026
On September 30, 2026, Atlanticus Holdings’ subsidiary Mercury Financial completed the sale and assignment of the MERCURY word mark and related intellectual property to an unaffiliated third party for $27.5 million in cash, while retaining t...
Business Operations and StrategyM&A Transactions
Atlanticus Holdings Divests Auto Finance, Refocuses on Core
Positive
Sep 17, 2026
On September 17, 2026, Atlanticus Holdings Corporation announced it had completed the sale of its CAR Auto Finance operations to an unaffiliated third party, divesting 100% of its Auto Finance segment. The transaction, valued at approximately $71....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.