Atlanticus Holdings Corp (ATLC)
NASDAQ:ATLC
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Atlanticus Holdings
(NASDAQ:ATLC)
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Rating:66Neutral
Price Target:
$84.00
▲(18.38% Upside)
Action:Reiterated
Date:05/20/26
ATLC scores as moderately attractive: valuation is compelling (low P/E) and technicals show a positive trend, supported by earnings-call commentary reaffirming guidance and integration progress. The main constraint on the score is financial risk—high leverage and sharply weaker cash-flow-to-debt coverage—alongside margin compression despite strong revenue growth.
Positive Factors
Revenue Growth & Scale
Sustained double‑digit top-line expansion and broad-based managed receivables growth (35% ex‑Mercury) indicate durable scale across private‑label and general‑purpose products. Larger receivables and transaction volumes should support recurring interest/fee income and platform leverage over time.
Negative Factors
High Leverage
Very high leverage materially reduces financial flexibility and increases sensitivity to funding‑cost increases or capital markets stress. Even with solid ROE, elevated debt ratios constrain balance‑sheet resilience and raise refinancing and covenant risk over multi‑quarter horizons.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Scale
Sustained double‑digit top-line expansion and broad-based managed receivables growth (35% ex‑Mercury) indicate durable scale across private‑label and general‑purpose products. Larger receivables and transaction volumes should support recurring interest/fee income and platform leverage over time.
Read all positive factors
Atlanticus Holdings (ATLC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.30B
Dividend YieldN/A
Average Volume (3M)85.46K
Price to Earnings (P/E)9.7
Beta (1Y)1.83
Revenue Growth68.59%
EPS Growth30.27%
CountryUS
Employees417
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)8.34
Shares Outstanding15,117,997
10 Day Avg. Volume113,988
30 Day Avg. Volume85,460
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.66
Price to Sales (P/S)1.44
P/FCF Ratio1.60
Enterprise Value/Market Cap5.26
Enterprise Value/Revenue5.49
Enterprise Value/Gross Profit7.31
Enterprise Value/Ebitda21.94
Forecast
1Y Price Target
$106.00Price Target Upside49.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)9.49
Revenue Forecast (FY)$3.08B
Atlanticus Holdings Business Overview & Revenue Model
Company Description
Atlanticus Holdings Corporation provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of c...
How the Company Makes Money
Atlanticus primarily makes money by originating and managing consumer credit accounts and earning economics tied to those balances and transactions. Key revenue streams include: (1) Finance charges and interest income: the company earns interest a...
Atlanticus Holdings Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call conveys a predominantly positive outlook driven by very strong top-line growth (97% revenue increase), materially higher net income (+50% EPS), robust managed receivable expansion (35% ex-Mercury), and an integration of the Mercury acquisition that is ahead of plan. Offsetting items include a large negative fair value adjustment of $366 million, substantially higher interest expense (+158%) and rising operating expenses (+69%) tied to the acquisition and expanded receivables. Despite these pressures, management emphasized stable asset performance, healthy liquidity, and better-than-modeled origination economics, leading to confidence in the company’s positioning.Positive Updates
Strong Revenue Growth
Total operating revenue increased 97% year-over-year to $680 million for Q1 2026, driven in part by $224 million from the Mercury acquisition.
Negative Updates
Large Negative Change in Fair Value of Loans
Changes in fair value of loans were negative $366 million, reflecting a larger receivables base and corresponding charge-offs, partially offset by favorable assumption changes.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Total operating revenue increased 97% year-over-year to $680 million for Q1 2026, driven in part by $224 million from the Mercury acquisition.
Read all positive updates
Company Guidance
Atlanticus said it is reaffirming the multi-year guidance it provided with the Mercury acquisition and expects to remain within the previously disclosed range for 2026 and 2027, while completing integration sooner than the 18‑month timeline originally outlined; management said originations, unit economics and portfolio-management actions are “ahead of plan,” supporting disciplined, profitable growth. For context, Q1 results that underpin that guidance included managed receivables growth (ex‑Mercury) of 35%, net income attributable to common shareholders of $41.9 million ($2.23 diluted EPS), return on average equity of 26.8%, total operating revenue of $680 million (up 97% YoY), net margin of $190 million (up >60% YoY), a -$366 million fair‑value loans charge, a ~$13 million contingent consideration reduction, interest expense of $123 million (up 158% YoY), operating expenses of $131 million (up 69% YoY), total assets of $7.5 billion, total equity of $644 million, and $650 million of unrestricted cash, with management noting stable delinquency/charge‑off trends and no material change in underlying consumer behavior.Atlanticus Holdings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25B | 704.50M | 459.57M | 365.68M | 374.42M | 453.93M |
| Gross Profit | 937.79M | 396.36M | 283.03M | 254.19M | 291.31M | 363.34M |
| EBITDA | 312.34M | 169.61M | 143.76M | 132.60M | 154.12M | 222.07M |
| Net Income | 134.86M | 122.20M | 111.30M | 102.84M | 135.60M | 177.90M |
Balance Sheet | ||||||
| Total Assets | 7.47B | 7.62B | 3.27B | 2.71B | 2.39B | 1.94B |
| Cash, Cash Equivalents and Short-Term Investments | 804.06M | 621.09M | 375.42M | 339.34M | 384.98M | 409.66M |
| Total Debt | 6.35B | 6.54B | 2.51B | 2.03B | 1.82B | 1.43B |
| Total Liabilities | 6.78B | 7.02B | 2.78B | 2.31B | 2.06B | 1.66B |
| Stockholders Equity | 688.43M | 608.70M | 492.91M | 394.68M | 326.41M | 288.00M |
Cash Flow | ||||||
| Free Cash Flow | 790.14M | 632.94M | 467.62M | 455.32M | 341.28M | 205.28M |
| Operating Cash Flow | 792.74M | 637.96M | 469.40M | 459.32M | 346.13M | 212.37M |
| Investing Cash Flow | -1.45B | -1.51B | -747.03M | -672.20M | -680.78M | -475.02M |
| Financing Cash Flow | 998.06M | 1.14B | 393.61M | 163.34M | 261.25M | 510.33M |
Atlanticus Holdings Technical Analysis
Positive
70.96
Price Trends
70.78
Positive
63.33
Positive
62.46
Positive
Market Momentum
4.08
Negative
61.76
Neutral
63.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLC, the sentiment is Positive. The current price of 70.96 is below the 20-day moving average (MA) of 80.86, above the 50-day MA of 70.78, and above the 200-day MA of 62.46, indicating a bullish trend. The MACD of 4.08 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 63.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.92B | 13.14 | 13.94% | ― | 22.81% | 47.41% | |
69 Neutral | $338.49M | 6.90 | 13.16% | 2.99% | 10.51% | 53.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.30B | 9.67 | 21.67% | ― | 68.59% | 30.27% | |
59 Neutral | $815.03M | 22.37 | 6.37% | ― | 3.70% | ― | |
59 Neutral | $247.90M | 14.70 | 4.63% | ― | -3.81% | ― | |
51 Neutral | $582.03M | -2.09 | -26.42% | ― | 12.38% | -498.81% |
* Financial Sector Average
ATLC
Atlanticus Holdings
86.22
37.53
77.08%
EZPW
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135.77%
PRAA
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15.26
1.21
8.61%
RM
Regional Management
36.76
11.29
44.32%
WRLD
World Acceptance
165.09
9.55
6.14%
OPRT
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5.42
-0.87
-13.83%
Atlanticus Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Atlanticus Shareholders Reelect Full Board at 2026 Meeting
Positive
May 13, 2026
Atlanticus Holdings Corporation held its Annual Meeting of Shareholders on May 7, 2026, where proxies were solicited under Section 14(a) of the Securities Exchange Act of 1934 without any opposing solicitation. At the meeting, shareholders voted o...
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.