Atlanticus Sells CAR Auto Finance, Recasts Results
Net income attributable to common shareholders was $93.0 million for the three months ended September 30, 2026, versus $22.7 million a year earlier.
Atlanticus Holdings Corporation (ATLC), a financial technology company that buys consumer credit receivables from bank partners, completed the sale of its CAR Auto Finance operations on September 16, 2026, and recast the former Auto Finance segment as discontinued operations for all periods presented.
Net income from continuing operations was $78.4 million for the three months ended September 30, 2026, up $55.9 million from $22.5 million a year earlier. Net income attributable to common shareholders was $93.0 million, up $70.4 million from $22.7 million. Net income from discontinued operations was $17.0 million.
Total operating revenue and other income was $775.9 million, up $291.3 million from $484.6 million a year earlier. Sequential growth slowed: revenue rose $31.6 million from $744.3 million in the three months ended June 30, 2026, after a $64.8 million increase from $679.5 million in the three months ended March 31, 2026.
The company said period-over-period results primarily related to growth in private label credit and general purpose credit card products. Those receivables were $7,128.4 million as of September 30, 2026, up from $6,600.1 million a year earlier. Total active accounts increased by 847 thousand versus a year earlier. Mercury, acquired on September 11, 2025, contributed $205.3 million of growth in total operating revenue and other income versus the same period in 2025.
Net margin was $238.1 million, up $105.8 million from $132.2 million a year earlier. A $27.5 million gain on sale of a word mark appeared in the quarter, with no comparable gain a year earlier.
Interest expense was $118.0 million, up $43.0 million from $75.0 million a year earlier. Outstanding notes payable associated with the private label credit and general purpose credit card platform were $5,747.1 million as of September 30, 2026, up from $5,297.3 million a year earlier. The company said the majority of the interest-expense increase related to Mercury and its associated debt, growth in multiple credit facilities in 2025 associated with expansion of card and loan receivables, and the issuance of $400.0 million aggregate principal amount of 9.750% Senior Notes due 2030.
Changes in fair value of loans at fair value were a $418.3 million loss, versus a $276.9 million loss a year earlier. The company said the increase was largely due to higher charge-offs. Net positive fair-value impacts that offset charge-offs totaled $15.3 million, compared with a $45.0 million loss a year earlier.
Operating expenses were $161.9 million, up $59.2 million from $102.7 million a year earlier. Card and loan servicing rose $22.3 million to $58.1 million. Marketing and solicitation rose $22.2 million to $57.5 million. Salaries and benefits rose $8.8 million to $25.6 million.
The company said it expects general purpose credit card receivables growth to continue throughout 2026 and to outpace private label credit receivables. It expects the private label credit receivable balance to increase modestly in 2026 as acquisition volumes slow. Product, policy and pricing changes on the Mercury portfolio are expected to increase yield and add to total operating revenue and other income in 2026 and beyond, with certain changes taking several quarters to be fully realized. The company also said it expects quarterly interest expense to increase compared with prior periods throughout 2026.