| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 85 | 11.4x | 17.3x | Top tier | |
Growth | 91 | 83.7% | 7.1% | Top tier | |
Quality | 95 | — | — | Top tier | |
Safety | 15 | — | — | Bottom tier | |
Capital Return | 49 | 0.70% | 0.06% | Around median | |
Momentum | 78 | 70.9% | -1.6% | Top tier | |
Sentiment | 64 | 3 | 3 | Around median |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Atlanticus Holdings Corporation operates in consumer finance through general-purpose credit card programs and private-label retail credit programs, with smaller activities in healthcare and automotive financing. The company generates revenue from its receivables portfolio and associated finance charges, and uses its proprietary analytics and mail and digital acquisition channels to price risk and serve consumers whose needs may not be met by traditional credit products. Over its 30-year history through August 2026, it financed more than $53 billion in receivables and served more than 23 million consumers.
In Q2 fiscal 2026, Atlanticus reported record revenue of $744.3 million, up 89% year over year, and gross profit of $686.5 million, equivalent to approximately 92.2% of revenue. Net income according to EDGAR filings was approximately $49.7 million, while net income attributable to common shareholders was $47.4 million, up 67%, and diluted earnings per share reached $2.50. Return on average equity was also 28.1%, exceeding the company's long-term target of 20%.
Managed receivables totaled $6.9 billion at the end of Q2 fiscal 2026, up 126% year over year and 2.5% sequentially. The business excluding Mercury accounted for approximately $3.8 billion of that amount, growing nearly 26% year over year, meaning Mercury added approximately $3.1 billion to the portfolio mix. Core growth depends on general-purpose cards and private-label credit, while the healthcare and automotive businesses remained small relative to the total portfolio and net income.
The average analyst price target is $136.4, with a Buy consensus and a wide range between $100 and $179; the average is approximately 19% above the 52-week range high of $114.34, while the lowest target is below that high. The breadth of the target range reflects a meaningful difference in estimates of the sustainability of Mercury's growth and credit quality, particularly with return on equity expected to gradually return from 28.1% toward the 20% target and with higher funding costs and charge-offs.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Revenue increased 89% year over year to $744.3 million due to Mercury's contribution and the expansion of the general-purpose card and private-label credit portfolios. The company added a record 790 thousand new customers, and the number of active accounts increased by more than one million year over year excluding Mercury. Managed receivables excluding Mercury also grew approximately 26% to $3.8 billion.
Mercury increased total managed receivables to $6.9 billion at the end of Q2 fiscal 2026, compared with approximately $3.8 billion for the business excluding it. Management said on August 6, 2026 that the integration, repricing, and realization of savings were at or better than plan. The company had completed approximately 90% of the portfolio segmentation exercise, with yield realization and consumer acceptance better than the acquisition model.
Delinquency rates improved sequentially and year over year in Q2 fiscal 2026, which the company attributed to stable payment behavior and the addition of the lower-loss Mercury portfolio. In contrast, the combined net principal charge-off rate was 17.7%, and principal and finance charge charge-offs totaled $433 million. Management expects a slight increase in delinquency as new receivables mature and the portfolio mix changes.
Automated analysis for informational purposes only — not investment advice.
Management reaffirmed that it continues to target earnings growth and a return on equity of 20% or higher. However, it explained on the August 6, 2026 call that the 28.1% rate recorded in Q2 fiscal 2026 is likely to return toward 20% as leverage is reduced. A positive adjustment of $5.5 million related to contingent consideration and Mercury purchase-price adjustments also contributed to the quarter's results, while underlying operating performance remained the larger driver of the above-target result.
Management said direct-mail offers in the general-purpose card industry increased by more than 50% year over year, pressuring response rates and increasing account acquisition costs. Direct-mail acquisitions were below the company's expectations for the second half of fiscal 2026, despite continued year-over-year growth. In contrast, digital originations exceeded management's expectations due to the development of underwriting models and offers tailored to that channel.
The company ended Q2 fiscal 2026 with total assets of $7.5 billion and equity of approximately $700 million. Cash and restricted cash totaled $645 million, alongside liquidity available from financing facilities and cash flows generated by the portfolio. Atlanticus also issued asset-backed securities at tighter spreads and better terms and received its first AAA rating for these securities.