Enova International, Inc.

Previous wording

We are a leading technology and analytics company focused on providing online financial services. In 2024, we extended approximately $6.1 billion in credit or financing to borrowers and for the six months ended June 30, 2025, we extended approximately $3.5 billion in credit or financing to borrowers. As of June 30, 2025, we offered or arranged loans or draws on lines of credit to consumers in 36 states in the United States and Brazil. We also offered financing to small businesses in 49 states and Washington D.C. in the United States. We use our proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing us to offer consumers and small businesses credit or financing when and how they want it. Our customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. We were an early entrant into online lending, launching our online business in 2004, and through June 30, 2025, we have completed approximately 67.1 million customer transactions and collected more than 85 terabytes of currently accessible customer behavior data since launch, allowing us to better analyze and underwrite our specific customer base. We have significantly diversified our business over the past several years, having expanded the markets we serve and the financing products we offer. These financing products include installment loans and line of credit accounts.

Current wording

We are a leading technology and analytics company focused on providing online financial services. In 2024, we extended approximately $6.1 billion in credit or financing to borrowers and for the nine months ended September 30, 2025, we extended approximately $5.5 billion in credit or financing to borrowers. As of September 30, 2025, we offered or arranged loans or draws on lines of credit to consumers in 36 states in the United States and Brazil. We also offered or arranged financing to small businesses in 49 states and Washington D.C. in the United States. We use our proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing us to offer consumers and small businesses credit or financing when and how they want it. Our customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. We were an early entrant into online lending, launching our online business in 2004, and through September 30, 2025, we have completed approximately 68.2 million customer transactions and collected more than 85 terabytes of currently accessible customer behavior data since launch, allowing us to better analyze and underwrite our specific customer base. We have significantly diversified our business over the past several years, having expanded the markets we serve and the financing products we offer. These financing products include installment loans and line of credit accounts.

Previous wording

Our online financing products and services provide customers with a deposit of funds to their bank account in exchange for a commitment to repay the amount deposited plus fees and/or interest. We originate, arrange, guarantee or purchase installment loans and line of credit accounts to consumers and small businesses. We have one reportable segment that includes all of our online financial services. Our loans and finance receivables generally have regular payments that amortize principal. Interest income is generally recognized on an effective, non-accelerated yield basis over the contractual term of the installment loan or estimated outstanding period of the draw on line of credit accounts.

Current wording

Our online financing products and services provide customers with a deposit of funds to their bank account in exchange for a commitment to repay the amount deposited plus fees and/or interest. We originate, arrange, guarantee, purchase or purchase a participating interest in installment loans and line of credit accounts to consumers and small businesses. We have one reportable segment that includes all of our online financial services. Our loans and finance receivables generally have regular payments that amortize principal. Interest income is generally recognized on an effective, non-accelerated yield basis over the contractual term of the installment loan or estimated outstanding period of the draw on line of credit accounts.

Previous wording

Consumer installment loans. Certain subsidiaries (i) directly offer installment loans, (ii) as part of our Bank Programs, as discussed below, purchase or purchase a participating interest in, installment loans or (iii) as part of our CSO program, arrange and guarantee installment loans, as discussed below, to consumers. Certain subsidiaries offer, or arrange through our Bank Programs and CSO program, unsecured consumer installment loan products in 36 states in the United States. Internationally, we also offer or arrange unsecured consumer installment loan products in Brazil. Terms for our consumer installment loan products range between 3 and 60 months with an average contractual term of 39 months. These loans have regular payments that amortize principal. Loan sizes for these products range between $300 and $10,000. The majority of these loans accrue interest daily at a fixed rate for the life of the loan and have no fees. The average annualized yield for these loans was 86% for the year ended December 31, 2024. Loans may be repaid early at any time with no additional prepayment charges.

Current wording

Consumer installment loans. Certain subsidiaries (i) directly offer installment loans, (ii) as part of our Bank Programs, as discussed below, purchase or purchase a participating interest in installment loans or (iii) as part of our CSO program, arrange and guarantee installment loans, as discussed below, to consumers in 36 states in the United States. Internationally, we also offer or arrange unsecured consumer installment loan products in Brazil. Terms for our consumer installment loan products range between 3 and 60 months with an average contractual term of 39 months. These loans have regular payments that amortize principal. Loan sizes for these products range between $300 and $10,000. The majority of these loans accrue interest daily at a fixed rate for the life of the loan and have no fees. The average annualized yield for these loans was 86% for the year ended December 31, 2024. Loans may be repaid early at any time with no additional prepayment charges.

Previous wording

On November 15, 2023, we consented to the issuance of a Consent Order by the CFPB pursuant to which we agreed, without admitting or denying any of the facts or conclusions, to pay a civil money penalty of $15 million. The Consent Order relates to issues, the majority of which were self-disclosed, including payment processing and debiting errors. We remain subject to the restrictions and obligations of the Consent Order, including prohibitions from engaging in certain conduct for a period of seven years from the date of the Consent Order. Any noncompliance with the Consent Order or similar orders or agreements from other regulators could lead to further regulatory penalties and could have a material adverse impact on our business, prospects, results of operations, financial condition and cash flows and could prohibit or directly or indirectly impair our ability to continue current operations.

Current wording

On November 15, 2023, we consented to the issuance of a Consent Order by the Consumer Financial Protection Bureau (“CFPB”) pursuant to which we agreed, without admitting or denying any of the facts or conclusions, to pay a civil money penalty of $15 million. The Consent Order related to issues, the majority of which were self-disclosed, including payment processing and debiting errors. Effective August 29, 2025, the CFPB terminated the Consent Order in full and waived any alleged non-compliance therewith.

Previous wording

On March 30, 2023, the CFPB issued its final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses, and applies to small business loans that we offer. For loans covered by the small business lending rule, a “covered lender” will be required to collect and report on certain information pursuant to an application for credit. Section 1071 requires covered lenders to collect and report information the financial institution generates and information obtained from the applicant, including the applicant’s minority-owned business status, women-owned business status and LGBTQI+-owned status and the applicant’s principal owners’ ethnicity, race and sex, and expressly prohibits a financial institution from discouraging an applicant from responding to requests for applicant-provided data. On April 26, 2023, the Texas Bankers Association filed an action challenging the rule. The district court entered judgment in favor of the CFPB on the Administrative Procedure Act challenges and the ruling was appealed to the Fifth Circuit. The Fifth Circuit ordered the tolling of the compliance deadlines but only to the plaintiffs and intervenors in the case, including trade associations in which the Company’s small business loan business participates. Separately, on April 2, 2025, the House Financial Services Committee approved H.R. 976, which would repeal Section 1071 if passed. On June 18, 2025, the CFPB issued an interim final rule to extend the compliance deadlines by approximately one year. It further indicated its intent to initiate a new Section 1071 rulemaking and anticipates issuing a notice of proposed rulemaking as expeditiously as reasonably possible. Absent further court action, legislative action or action by the CFPB, the Company’s small business loan business will need to update its application process to appropriately collect, store and report data required by Section 1071’s implementing regulation. The Company will continue to monitor litigation, rulemaking and bills related to the rule.

Current wording

On March 30, 2023, the CFPB issued its final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses, and applies to small business loans that we offer. For loans covered by the small business lending rule, a “covered lender” will be required to collect and report on certain information pursuant to an application for credit. Section 1071 requires covered lenders to collect and report information the financial institution generates and information obtained from the applicant, including the applicant’s minority-owned business status, women-owned business status and LGBTQI+-owned status and the applicant’s principal owners’ ethnicity, race and sex, and expressly prohibits a financial institution from discouraging an applicant from responding to requests for applicant-provided data. On April 26, 2023, the Texas Bankers Association filed an action challenging the rule. The district court entered judgment in favor of the CFPB on the Administrative Procedure Act challenges and the ruling was appealed to the Fifth Circuit. The Fifth Circuit ordered the tolling of the compliance deadlines but only to the plaintiffs and intervenors in the case, including trade associations in which the Company’s small business loan business participates. Separately, on April 2, 2025, the House Financial Services Committee approved H.R. 976, which would repeal Section 1071 if passed. On June 18, 2025, the CFPB issued an interim final rule to extend the compliance deadlines by approximately one year. It further indicated its intent to initiate a new Section 1071 rulemaking and anticipates issuing a notice of proposed rulemaking as expeditiously as reasonably possible. On October 2, 2025, the CFPB published a final rule with the same extended compliance dates provided for in the June interim rule. Absent further court action, legislative action or action by the CFPB, the Company’s small business loan business will need to update its application process to appropriately collect, store and report data required by Section 1071’s implementing regulation. The Company will continue to monitor litigation, rulemaking and bills related to the rule.

Previous wording

On July 4, 2025, the “One Big Beautiful Bill Act” (the “OBBBA”) was enacted into law. The OBBBA’s various provisions include, among other things, accelerated tax deductions for qualified property and research expenditures. The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. We are currently assessing the OBBBA’s impact on our consolidated financial statements.

Current wording

On July 4, 2025, the “One Big Beautiful Bill Act” (the “OBBBA”) was enacted into law. The OBBBA’s various provisions include, among other things, accelerated tax deductions for qualified property and research expenditures. The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. We have evaluated the OBBBA provisions enacted during the current quarter and estimated their impact on the consolidated financial statements to be immaterial. We will continue to evaluate the full impact of these legislative changes as additional guidance becomes available.

Previous wording

Consolidated total revenue increased $135.7 million, or 21.6%, to $764.1 million in the current quarter compared to $628.4 million for the three months ended June 30, 2024, or the prior year quarter.

Current wording

Consolidated total revenue increased $112.8 million, or 16.3%, to $802.7 million in the current quarter compared to $689.9 million for the three months ended September 30, 2024, or the prior year quarter.

Previous wording

Consolidated income from operations increased $39.0 million, or 26.9%, to $184.1 million in the current quarter compared to $145.1 million in the prior year quarter.

Current wording

Consolidated income from operations increased $43.1 million, or 28.0%, to $196.8 million in the current quarter compared to $153.7 million in the prior year quarter.

Previous wording

Consolidated net income was $76.1 million in the current quarter compared to $53.9 million in the prior year quarter. Consolidated diluted income per share was $2.86 in the current quarter compared to $1.93 in the prior year quarter.

Current wording

Consolidated net income was $80.3 million in the current quarter compared to $43.4 million in the prior year quarter. Consolidated diluted income per share was $3.03 in the current quarter compared to $1.57 in the prior year quarter.

Previous wording

In 2024 and the first six months of 2025, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, tariffs and other macroeconomic trends. In certain situations, management concluded that the probability of future charge-offs or prepayments was different than what we had experienced in the past and, therefore, altered those assumptions in our fair value models. We continue to utilize this approach and have adjusted these assumptions where appropriate. We also evaluate the discount rates used in our models on a quarterly basis and adjust when appropriate to be responsive to changes in the market and representative of what a market participant would use. As of June 30, 2025, we deemed the resulting fair value of our loans and finance receivables to be an appropriate market-based exit price that considers current market conditions.

Current wording

In 2024 and the first nine months of 2025, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, tariffs and other macroeconomic trends. In certain situations, management concluded that the probability of future charge-offs or prepayments was different than what we had experienced in the past and, therefore, altered those assumptions in our fair value models. We continue to utilize this approach and have adjusted these assumptions where appropriate. We also evaluate the discount rates used in our models on a quarterly basis and adjust when appropriate to be responsive to changes in the market and representative of what a market participant would use. As of September 30, 2025, we deemed the resulting fair value of our loans and finance receivables to be an appropriate market-based exit price that considers current market conditions.

Previous wording

(b) In the second quarter of 2025, the second quarter of 2024 and the first quarter of 2024, we recorded other nonoperating expenses of $1.0 million ($0.8 million net of tax), $0.5 million ($0.4 million net of tax) and $0.5 million ($0.4 million net of tax), respectively, related to early extinguishment of debt.

Current wording

(c) In the second quarter of 2025, the third quarter of 2024, the second quarter of 2024 and the first quarter of 2024, we recorded other nonoperating expenses of $1.0 million ($0.8 million net of tax), $4.7 million ($3.5 million net of tax), $0.5 million ($0.4 million net of tax) and $0.5 million ($0.4 million net of tax), respectively, related to early extinguishment of debt.

Previous wording

Refer to footnotes in previous table for explanation of (a) and (b).

Current wording

Refer to footnotes in previous table for explanation of (a), (b) and (c).

Previous wording

Revenue increased $135.7 million, or 21.6%, to $764.1 million for the current quarter as compared to $628.4 million for the prior year quarter. The increase was driven by a 29.6% increase in revenue from our small business portfolio and a 16.5% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.

Current wording

Revenue increased $112.8 million, or 16.3%, to $802.7 million for the current quarter as compared to $689.9 million for the prior year quarter. The increase was driven by a 29.3% increase in revenue from our small business portfolio and a 7.9% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.

Previous wording

Net revenue for the current quarter was $441.5 million compared to $370.2 million for the prior year quarter. Our consolidated net revenue margin was 57.8% for the current quarter compared to 58.9% for the prior year quarter with stability in both the consumer and small business portfolios. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of net revenue for the current quarter.

Current wording

Net revenue for the current quarter was $460.7 million compared to $400.3 million for the prior year quarter. Our consolidated net revenue margin was 57.4% for the current quarter compared to 58.0% for the prior year quarter. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of net revenue for the current quarter.

Previous wording

The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $4,773.3 million and $3,939.2 million as of June 30, 2025 and 2024, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $4,141.1 million and $3,423.7 million as of June 30, 2025 and 2024, respectively. The fair value of the combined loan and finance receivables portfolio includes $23.8 million and $17.3 million with an outstanding principal balance of $16.8 million and $12.5 million of consumer loan balances that are guaranteed by us but not owned by us, which are not included in our consolidated financial statements as of June 30, 2025 and 2024, respectively.

Current wording

The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $5,012.9 million and $4,134.4 million as of September 30, 2025 and 2024, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $4,344.9 million and $3,593.4 million as of September 30, 2025 and 2024, respectively. The fair value of the combined loan and finance receivables portfolio includes $24.4 million and $25.4 million with an outstanding principal balance of $17.3 million and $18.3 million of consumer loan balances that are guaranteed by us but not owned by us, which are not included in our consolidated financial statements as of September 30, 2025 and 2024, respectively.

Previous wording

The consumer portfolio balance was 35.3% of our combined loan and finance receivable portfolio balance at fair value as of June 30, 2025 compared to 36.4% as of June 30, 2024. Our small business portfolio of loans and finance receivables was 64.7% of our combined loan and finance receivable portfolio at fair value as of June 30, 2025 compared to 63.6% as of June 30, 2024. See “Non-GAAP Financial Measures—Combined Loans and Finance Receivables Measures” above for additional information related to combined loans and finance receivables.

Current wording

The consumer portfolio balance was 34.1% of our combined loan and finance receivable portfolio balance at fair value as of September 30, 2025 compared to 37.3% as of September 30, 2024. Our small business portfolio of loans and finance receivables was 65.9% of our combined loan and finance receivable portfolio at fair value as of September 30, 2025 compared to 62.7% as of September 30, 2024. See “Non-GAAP Financial Measures—Combined Loans and Finance Receivables Measures” above for additional information related to combined loans and finance receivables.

Previous wording

At June 30, 2025 and 2024, the ratio of fair value as a percentage of principal was 115.3% and 115.1%, respectively, on company owned loans and finance receivables and 115.4% and 115.1%, respectively, on combined loans and finance receivables. These ratios slightly increased compared to the prior year due to improvement in both the consumer and small business portfolios. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of fair value ratios for the current quarter.

Current wording

At September 30, 2025 and 2024, the ratio of fair value as a percentage of principal was 115.4% and 115.1%, respectively, on company owned loans and finance receivables and 115.5% and 115.2%, respectively, on combined loans and finance receivables. These ratios slightly increased compared to the prior year due to improvement in both the consumer and small business portfolios. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of fair value ratios for the current quarter.

Previous wording

The average amount outstanding per loan and finance receivable increased slightly in the current quarter compared to the prior year quarter for our overall portfolio due to an increase in our small business portfolio, partially offset by a decrease in our consumer portfolio.

Current wording

The average amount outstanding per loan and finance receivable increased slightly in the current quarter compared to the prior year quarter for our overall portfolio due to an increase in our small business portfolio, partially offset by a minor decrease in our consumer portfolio.

Previous wording

The average loan and finance receivable origination amount increased to $1,691 during the current quarter from $1,515 during the prior year quarter, due primarily to an increase in the average loan origination amount for our small business loans.

Current wording

The average loan and finance receivable origination amount increased to $1,779 during the current quarter from $1,572 during the prior year quarter, due primarily to a higher proportion of loans originated in the small business portfolio, the average size of which greatly exceeds the average size of loans in the consumer portfolio.

Previous wording

Demand for our consumer loan products and services in the United States has historically been highest in the third and fourth quarters of each year, corresponding to the holiday season, and lowest in the first quarter of each year, corresponding to our customers’ receipt of income tax refunds. The ending balance, including principal and accrued fees/interest outstanding, of combined consumer loans and finance receivables at June 30, 2025 increased 17.0% to $1,522.2 million compared to $1,300.7 million at June 30, 2024, due primarily to originations outpacing repayments.

Current wording

Demand for our consumer loan products and services in the United States has historically been highest in the third and fourth quarters of each year, corresponding to the holiday season, and lowest in the first quarter of each year, corresponding to our customers’ receipt of income tax refunds. The ending balance, including principal and accrued fees/interest outstanding, of combined consumer loans and finance receivables at September 30, 2025 increased 9.5% to $1,546.7 million compared to $1,412.7 million at September 30, 2024, due primarily to originations outpacing repayments.

Previous wording

The percentage of loans greater than 30 days delinquent of 8.0% was higher at June 30, 2025 compared to 6.3% at June 30, 2024, and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance increased to 14.5% in the current quarter compared to 12.8% for the prior year quarter. These increases were due primarily to a higher percentage of originations to new customers, which typically default at a higher rate compared to returning customers, and a mix shift reflecting a greater percentage of line of credit products, which have higher yields and default rates than installment loans, as compared to the prior year quarter. Compared to the prior sequential quarter ending March 31, 2025, the percentage of loans greater than 30 days delinquent and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance both decreased, which is consistent with our normal seasonal pattern.

Current wording

The percentage of loans greater than 30 days delinquent of 9.2% was slightly higher at September 30, 2025 compared to 8.7% at September 30, 2024, and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance increased to 16.1% in the current quarter compared to 14.9% for the prior year quarter. While slightly higher than the prior year quarter, these results are still in a reasonable range for the consumer portfolio and consistent with other quarters in the past four years. Compared to the prior sequential quarter ending June 30, 2025, the percentage of loans greater than 30 days delinquent and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance both increased, which is consistent with our normal seasonal pattern.

Previous wording

Revenue related to our consumer loans and finance receivables was $428.3 million for the current quarter compared to $367.6 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio, particularly our line of credit products. The net revenue margin related to our consumer loans and finance receivables was 49.7% in the current quarter, which was fairly consistent with the net revenue margin in three of the prior four sequential quarters.

Current wording

Revenue related to our consumer loans and finance receivables was $443.4 million for the current quarter compared to $410.9 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio. The net revenue margin related to our consumer loans and finance receivables was 44.3% in the current quarter, which was lower than the net revenue margin in three of the prior four sequential quarters due primarily to slightly higher charge-offs (net of recoveries) and delinquencies.

Previous wording

The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 121.6% at June 30, 2025, which is fairly consistent compared to 121.0% at June 30, 2024 and 122.1% at March 31, 2025. Refer also to “Results of Operations—Valuation of Loans and Finance Receivables” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on loan valuation.

Current wording

The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 121.6% at September 30, 2025, which is fairly consistent compared to 120.9% at September 30, 2024 and 121.6% at June 30, 2025. Refer also to “Results of Operations—Valuation of Loans and Finance Receivables” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on loan valuation.

Previous wording

The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at June 30, 2025 increased 22.4% to $2,796.5 million compared to $2,284.0 million at June 30, 2024, due primarily to originations outpacing repayments.

Current wording

The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at September 30, 2025 increased 26.5% to $2,974.4 million compared to $2,351.9 million at September 30, 2024, due primarily to originations outpacing repayments.

Previous wording

The percentage of loans greater than 30 days delinquent of 6.6% was lower at June 30, 2025 compared to 8.1% at June 30, 2024 due to improvement in credit performance. Charge-offs (net of recoveries) as a percentage of average loan balance were fairly consistent at 4.7% for the current quarter compared to 4.8% in the prior year quarter.

Current wording

The percentage of loans greater than 30 days delinquent of 6.2% was lower at September 30, 2025 compared to 7.2% at September 30, 2024 due to improvement in credit performance. Charge-offs (net of recoveries) as a percentage of average loan balance of 4.4% during the current quarter were consistent with the prior four sequential quarters.

Previous wording

Revenue related to our small business loans and finance receivables was $326.3 million for the current quarter compared to $251.8 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio and, to a lesser extent, slightly higher average yields. The net revenue margin related to our small business loans and finance receivables was 67.8% for the current quarter, which is fairly consistent with the prior four sequential quarters, which had an average net revenue margin of 66.0%.

Current wording

Revenue related to our small business loans and finance receivables was $348.3 million for the current quarter compared to $269.5 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio and, to a lesser extent, slightly higher average yields. The net revenue margin related to our small business loans and finance receivables was 73.3% for the current quarter, which is higher than the prior four sequential quarters, which had an average net revenue margin of 67.1%, due primarily to improved credit performance and slightly higher average yields.

Previous wording

The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.3% at June 30, 2025 compared to 112.0% at June 30, 2024 and 112.0% at March 31, 2025. The slight increase from June 30, 2024 was due primarily to improved credit performance and slightly higher average yields.

Current wording

The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.5% at September 30, 2025 compared to 112.0% at September 30, 2024 and 112.3% at June 30, 2025. The slight increase from September 30, 2024 was due primarily to improved credit performance and slightly higher average yields.

Previous wording

Marketing expense increased to $142.8 million in the current quarter compared to $120.8 million in the prior year quarter due primarily to growth in the overall business with higher commissionable originations in our small business portfolio and higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products, partially offset by lower spend in certain channels and media as we optimize marketing efficiency.

Current wording

Marketing expense increased to $147.4 million in the current quarter compared to $141.1 million in the prior year quarter due primarily to growth in the overall business with higher commissionable originations in our small business portfolio, partially offset by lower spend in certain channels and media as we optimize marketing efficiency.

Previous wording

Operations and technology expense increased to $63.7 million in the current quarter compared to $54.9 million in the prior year quarter, due primarily to higher variable costs, particularly personnel costs, other selling expenses and bank charges as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased to 8.3% in the current year quarter from 8.7% in the prior year quarter as increased originations and revenues outpaced fixed costs.

Current wording

Operations and technology expense increased to $64.5 million in the current quarter compared to $56.6 million in the prior year quarter, due primarily to higher variable costs, particularly underwriting, personnel costs and other selling expenses as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased slightly to 8.1% in the current year quarter from 8.2% in the prior year quarter as increased originations and revenues outpaced fixed costs.

Previous wording

General and administrative expense increased to $40.5 million in the current quarter compared to $39.7 million in the prior year quarter, due largely to higher personnel costs. As a percentage of revenue, general and administrative expense decreased to 5.3% in the current year quarter from 6.3% in the prior year quarter, as increased originations and revenues outpaced fixed costs.

Current wording

General and administrative expense increased slightly to $39.6 million in the current quarter compared to $38.9 million in the prior year quarter. As a percentage of revenue, general and administrative expense decreased to 4.9% in the current year quarter from 5.6% in the prior year quarter, as increased originations and revenues outpaced fixed costs.

Previous wording

Depreciation and amortization expense increased $0.7 million or 6.6% compared to the prior year quarter driven primarily by general growth in the business and additional internally-developed software placed into service.

Current wording

Depreciation and amortization expense increased $2.4 million or 23.1% compared to the prior year quarter driven primarily by general growth in the business and additional internally-developed software placed into service.

Previous wording

Interest expense, net increased $11.8 million, or 16.7%, to $82.8 million in the current quarter compared to $71.0 million in the prior year quarter. The increase was due primarily to an increase in the average amount of debt outstanding, which increased $738.4 million to $3,820.0 million during the current quarter from $3,081.6 million during the prior year quarter, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.76% during the current quarter from 9.33% during the prior year quarter resulting primarily from year-over-year decreases in benchmark rates.

Current wording

Interest expense, net increased $10.1 million, or 13.1%, to $87.0 million in the current quarter compared to $76.9 million in the prior year quarter. The increase was due primarily to an increase of $802.1 million, or 24.9%, in the average amount of debt outstanding to $4,028.7 million during the current quarter from $3,226.6 million during the prior year quarter, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.61% during the current quarter from 9.57% during the prior year quarter resulting primarily from year-over-year decreases in benchmark rates.

Previous wording

Net income increased $22.2 million, or 41.2%, to $76.1 million during the current quarter compared to $53.9 million during the prior year quarter. The increase was due primarily to an increase in income from operations due to higher net revenue and lower operating expenses as a percentage of revenue, partially offset by higher interest expense, which was the result of an increase in the average amount of debt outstanding.

Current wording

Net income increased $36.9 million, or 85.0%, to $80.3 million during the current quarter compared to $43.4 million during the prior year quarter. The increase was due primarily to an increase in income from operations due to higher net revenue and lower operating expenses as a percentage of revenue, partially offset by higher interest expense, which was the result of an increase in the average amount of debt outstanding. The prior year quarter also included a write-down of our investment in Linear of $16.6 million.

Previous wording

Revenue increased $271.3 million, or 21.9%, to $1,509.6 million for the six-month period ended June 30, 2025, or current six-month period, as compared to $1,238.3 million for the six-month period ended June 30, 2024, or prior year six-month period. The increase was driven by a 29.2% increase in revenue from our small business portfolio and a 17.3% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.

Current wording

Revenue increased $384.1 million, or 19.9%, to $2,312.3 million for the nine-month period ended September 30, 2025, or current nine-month period, as compared to $1,928.2 million for the nine-month period ended September 30, 2024, or prior year nine-month period. The increase was driven by a 29.2% increase in revenue from our small business portfolio and a 13.9% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.

Previous wording

Net revenue for the current six-month period was $867.6 million compared to $716.0 million for the prior year six-month period. Our consolidated net revenue margin was 57.5% for the current six-month period, which is fairly consistent with 57.8% for the prior year six-month period.

Current wording

Net revenue for the current nine-month period was $1,328.4 million compared to $1,116.4 million for the prior year nine-month period. Our consolidated net revenue margin was 57.4% for the current nine-month period, which is fairly consistent with 57.9% for the prior year nine-month period.

Previous wording

The following table sets forth the components of revenue and net revenue, separated by product for the current six-month period and the prior year six-month period (in thousands):

Current wording

The following table sets forth the components of revenue and net revenue, separated by product for the current nine-month period and the prior year nine-month period (in thousands):

Previous wording

Revenue generated from the Company’s operations for the current six-month period and the prior year six-month period was as follows (in thousands):

Current wording

Revenue generated from the Company’s operations for the current nine-month period and the prior year nine-month period was as follows (in thousands):

Previous wording

The average loan and finance receivable origination amount is calculated as the total amount of combined loans and finance receivables originated, renewed and purchased for the period divided by the total number of combined loans and finance receivables originated, renewed and purchased for the period. The following table shows the average loan and finance receivable origination amount by product for the current six-month period compared to the prior year six-month period:

Current wording

The average loan and finance receivable origination amount is calculated as the total amount of combined loans and finance receivables originated, renewed and purchased for the period divided by the total number of combined loans and finance receivables originated, renewed and purchased for the period. The following table shows the average loan and finance receivable origination amount by product for the current nine-month period compared to the prior year nine-month period:

Previous wording

The average loan and finance receivable origination amount increased to $1,706 from $1,590 during the current six-month period compared to the prior year six-month period, due primarily to an increase in the average loan origination amount for our small business loans.

Current wording

The average loan and finance receivable origination amount increased to $1,731 from $1,583 during the current nine-month period compared to the prior year nine-month period, due primarily to a higher proportion of loans originated in the small business portfolio, the average size of which greatly exceeds the average size of loans in the consumer portfolio, and, to a lesser extent, an increase in the average loan origination amount for our small business loans.

Previous wording

Marketing expense increased to $282.1 million in the current six-month period compared to $231.3 million in the prior year six-month period. The increase was due primarily to growth in the overall business with higher commissionable originations in our small business portfolio and higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products.

Current wording

Marketing expense increased to $429.5 million in the current nine-month period compared to $372.4 million in the prior year nine-month period. The increase was due primarily to growth in the overall business with the most significant driver being higher commissionable originations and strategic partnerships in our small business portfolio.