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Atlanticus Holdings
(NASDAQ:ATLC)
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Rating:63Neutral
Price Target:
$119.00
▲(19.62% Upside)
Action:Reiterated
Date:08/07/26
ATLC scores as moderate: strong growth/cash generation and constructive price momentum support the rating, but very high balance-sheet leverage and weaker coverage/margin trends are the primary risks. Valuation is reasonable and the latest earnings call was broadly positive on guidance and integration progress, tempered by higher financing costs and fair-value volatility.
Positive Factors
Revenue & receivables scale
A near-doubling of operating revenue and a 35% ex-acquisition expansion in managed receivables indicate durable scale across private-label and general-purpose products. Sustained origination growth broadens interest and fee income bases and strengthens bargaining power with partners, supporting long-term revenue diversity.
Negative Factors
Very high balance-sheet leverage
Extremely elevated leverage means returns are materially driven by debt financing, reducing resilience to rising rates or funding stress. A thin equity cushion increases vulnerability to credit losses or mark-to-market swings, constraining strategic flexibility and raising refinancing and covenant risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & receivables scale
A near-doubling of operating revenue and a 35% ex-acquisition expansion in managed receivables indicate durable scale across private-label and general-purpose products. Sustained origination growth broadens interest and fee income bases and strengthens bargaining power with partners, supporting long-term revenue diversity.
Read all positive factors
Atlanticus Holdings (ATLC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.48B
Dividend YieldN/A
Average Volume (3M)189.85K
Price to Earnings (P/E)10.1
Beta (1Y)1.60
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. Volume178,112
30 Day Avg. Volume189,853
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$131.80Price Target Upside32.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)9.52
Revenue Forecast (FY)$2.96B
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 primarily makes money by extending consumer credit and earning finance-related income and fees from those credit programs, as well as by selling or securitizing receivables to fund lending and manage risk.
Key revenue streams typically...
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 | 307.53M | 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
Neutral
99.48
Price Trends
98.48
Negative
85.20
Positive
71.52
Positive
Market Momentum
0.20
Positive
45.04
Neutral
16.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATLC, the sentiment is Neutral. The current price of 99.48 is below the 20-day moving average (MA) of 101.76, above the 50-day MA of 98.48, and above the 200-day MA of 71.52, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 16.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $1.78B | 11.10 | 14.45% | ― | 28.61% | 47.06% | |
71 Outperform | $345.82M | 19.10 | 4.95% | ― | -2.34% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $884.37M | 21.80 | 11.00% | ― | 4.36% | -42.48% | |
63 Neutral | $1.48B | 10.11 | 23.09% | ― | 83.72% | 35.89% | |
63 Neutral | $296.79M | 6.56 | 12.49% | 2.88% | 9.63% | 40.75% | |
62 Neutral | $737.15M | -3.02 | -26.80% | ― | 12.25% | -388.78% |
* Financial Sector Average
ATLC
Atlanticus Holdings
97.04
35.69
58.17%
EZPW
EZCORP
28.65
12.58
78.28%
PRAA
Pra Group
20.25
4.05
25.00%
RM
Regional Management
32.68
-3.70
-10.17%
WRLD
World Acceptance
187.69
16.93
9.91%
OPRT
Oportun Financial
7.64
1.59
26.28%
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.