Atlanticus Holdings (ATLC)
NASDAQ:ATLC
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Atlanticus Holdings
(NASDAQ:ATLC)
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Rating:49Neutral
Price Target:
$53.00
▲(0.57% Upside)
Action:DowngradedDate:03/13/26
The score is held back primarily by weakening 2025 fundamentals (compressed operating profitability and sharply higher leverage) and bearish price/momentum signals. These are partially offset by a positive earnings-call backdrop emphasizing scale-driven growth, liquidity, and expected Mercury-related accretion, while valuation cannot be assessed reliably from the provided P/E and dividend data.
Positive Factors
Scale via Mercury Acquisition
Doubling receivables and adding >1.3M customers materially enlarges Atlanticus’s originations base and fee/interest runway. The scale gain supports diversified funding, bargaining power with partners, and fixed-cost leverage that can sustainably boost revenue and operating leverage as integrations complete.
Negative Factors
Very High Leverage
Nearly 10x debt-to-equity materially increases vulnerability to higher funding costs or credit losses in a consumer credit business. Elevated leverage constrains strategic flexibility, magnifies downside earnings volatility, and raises refinancing and covenant risks if economic or portfolio performance weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale via Mercury Acquisition
Doubling receivables and adding >1.3M customers materially enlarges Atlanticus’s originations base and fee/interest runway. The scale gain supports diversified funding, bargaining power with partners, and fixed-cost leverage that can sustainably boost revenue and operating leverage as integrations complete.
Read all positive factors
Atlanticus Holdings (ATLC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$786.25M
Dividend YieldN/A
Average Volume (3M)67.83K
Price to Earnings (P/E)8.3
Beta (1Y)1.77
Revenue Growth25.29%
EPS Growth26.70%
CountryUS
Employees417
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.75
Shares Outstanding14,919,417
10 Day Avg. Volume75,885
30 Day Avg. Volume67,832
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)1.56
Price to Sales (P/S)0.51
P/FCF Ratio1.60
Enterprise Value/Market Cap8.36
Enterprise Value/Revenue5.52
Enterprise Value/Gross Profit3.46
Enterprise Value/Ebitda14.06
Forecast
1Y Price Target
$101.67Price Target Upside92.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)8.84
Revenue Forecast (FY)$3.13B
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:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call highlighted strong, transformational growth driven by the Mercury acquisition and robust organic origination, with double-digit EPS and revenue growth, high ROE and ample liquidity. Management reported integration progress, sizable long-term accretion ($2–$4 per share target for 2027) and multi-year historic growth rates. Near-term headwinds include higher operating and interest expenses, an initial fair value mark decline (~60 bps), softer marketing efficiency amid competition, and a multi-quarter timeline to fully realize synergies and repricing benefits as legacy protected balances season out. On balance, the positives around scale, earnings growth, capital position, and integration execution materially outweigh the manageable short-term challenges.Positive Updates
Transformative Mercury Acquisition and Scale Expansion
Completed acquisition of Mercury Financial, doubling the balance sheet to $7.0 billion, adding >1.3 million customers and a $3.0 billion portfolio to optimize; integration ahead of plan with anticipated full realization of synergies through 2027–2028.
Negative Updates
Higher Operating Expenses
Total operating expenses increased 67% YoY in 4Q25, driven by higher servicing costs from portfolio growth, Mercury personnel and infrastructure, and elevated marketing spend.
Read all updates
Q4-2025 Updates
Positive
Negative
Transformative Mercury Acquisition and Scale Expansion
Completed acquisition of Mercury Financial, doubling the balance sheet to $7.0 billion, adding >1.3 million customers and a $3.0 billion portfolio to optimize; integration ahead of plan with anticipated full realization of synergies through 2027–2028.
Read all positive updates
Company Guidance
The company reiterated multi-year guidance and near-term expectations, targeting long‑term earnings growth of 20%+ annually and returns on average equity of 20% or greater, with integration of Mercury on an ~18‑month timeline and anticipated $2–$4 per‑share accretion in 2027 as revenue and cost synergies ramp (benefits expected to contribute increasingly in 2027–2028); management noted the balance sheet doubled to $7.0 billion with a $3.0 billion Mercury portfolio and +1.3 million customers added, maintained >$600 million of unrestricted cash and ~ $1.0 billion of committed undrawn warehouse capacity, and expects fair‑value marks (currently ~60 bps lower QoQ) to improve as portfolios season and tax‑season paydowns reduce delinquencies.Atlanticus Holdings Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
33
Negative
Cash Flow
57
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.97B | 459.57M | 365.68M | 374.42M | 453.93M |
| Gross Profit | 1.80B | 283.03M | 254.19M | 291.31M | 363.34M |
| EBITDA | 467.42M | 143.76M | 132.60M | 154.12M | 222.07M |
| Net Income | 122.20M | 111.30M | 102.84M | 135.60M | 177.90M |
Balance Sheet | |||||
| Total Assets | 7.62B | 3.27B | 2.71B | 2.39B | 1.94B |
| Cash, Cash Equivalents and Short-Term Investments | 767.41M | 375.42M | 339.34M | 384.98M | 409.66M |
| Total Debt | 6.54B | 2.51B | 2.03B | 1.82B | 1.43B |
| Total Liabilities | 6.98B | 2.78B | 2.31B | 2.06B | 1.66B |
| Stockholders Equity | 648.70M | 492.91M | 394.68M | 326.41M | 288.00M |
Cash Flow | |||||
| Free Cash Flow | 632.94M | 467.62M | 455.32M | 341.28M | 205.28M |
| Operating Cash Flow | 637.96M | 469.40M | 459.32M | 346.13M | 212.37M |
| Investing Cash Flow | -1.51B | -747.03M | -672.20M | -680.78M | -475.02M |
| Financing Cash Flow | 1.14B | 393.61M | 163.34M | 261.25M | 510.33M |
Atlanticus Holdings Technical Analysis
Negative
52.70
Price Trends
54.53
Negative
57.72
Negative
58.06
Negative
Market Momentum
-0.34
Negative
46.13
Neutral
49.37
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 52.7 is below the 20-day moving average (MA) of 54.10, below the 50-day MA of 54.53, and below the 200-day MA of 58.06, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 46.13 is Neutral, neither overbought nor oversold. The STOCH value of 49.37 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.56B | 6.71 | 12.48% | ― | 9.70% | 26.63% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $199.36M | 10.05 | 6.66% | ― | -5.29% | ― | |
63 Neutral | $294.69M | 8.66 | 12.12% | 2.99% | 9.63% | 77.14% | |
60 Neutral | $644.26M | -193.38 | 10.79% | ― | 2.31% | -27.81% | |
53 Neutral | $647.94M | -2.27 | -27.34% | ― | 13.89% | -899.50% | |
49 Neutral | $786.25M | 8.29 | 20.59% | ― | 25.29% | 26.70% |
* Financial Sector Average
ATLC
Atlanticus Holdings
52.70
1.55
3.03%
EZPW
EZCORP
25.21
10.49
71.26%
PRAA
Pra Group
16.85
-3.77
-18.28%
RM
Regional Management
31.36
2.05
6.98%
WRLD
World Acceptance
130.50
3.95
3.12%
OPRT
Oportun Financial
4.48
-1.01
-18.40%
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.