# Enova International, Inc.: Form 10-Q for the period ended Jun 30, 2024

- Company: [Enova International, Inc.](/companies/enva.md) (CIK 1529864)
- Form: 10-Q
- Filed: 2024-07-24
- Accepted by EDGAR: Jul 24, 2024, 16:15 ET
- Period: 2024-06-30
- Accession: 0000950170-24-086053
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1529864/000095017024086053/enva-20240630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1529864/000095017024086053/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2024-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2024-04-01 to 2024-06-30 | $628.4m | us-gaap:Revenues |
| Revenue | 6 months, 2024-01-01 to 2024-06-30 | $1.24bn | us-gaap:Revenues |
| Gross profit | 3 months, 2024-04-01 to 2024-06-30 | $370.2m | us-gaap:GrossProfit |
| Gross profit | 6 months, 2024-01-01 to 2024-06-30 | $716.1m | us-gaap:GrossProfit |
| Operating income | 3 months, 2024-04-01 to 2024-06-30 | $145.1m | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2024-01-01 to 2024-06-30 | $275.8m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2024-04-01 to 2024-06-30 | $71.0m | us-gaap:InterestExpense |
| Interest expense | 6 months, 2024-01-01 to 2024-06-30 | $136.6m | us-gaap:InterestExpense |
| Income tax | 3 months, 2024-04-01 to 2024-06-30 | $19.7m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2024-01-01 to 2024-06-30 | $35.9m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2024-04-01 to 2024-06-30 | $53.9m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2024-01-01 to 2024-06-30 | $102.3m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2024-04-01 to 2024-06-30 | $1.93 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2024-01-01 to 2024-06-30 | $3.56 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2024-04-01 to 2024-06-30 | $2.00 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2024-01-01 to 2024-06-30 | $3.71 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2024-04-01 to 2024-06-30 | 27,941,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2024-01-01 to 2024-06-30 | 28,722,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2024-01-01 to 2024-06-30 | $709.5m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2024-01-01 to 2024-06-30 | $22.3m | us-gaap:PaymentsToAcquireProductiveAssets |
| Share repurchases | 6 months, 2024-01-01 to 2024-06-30 | $214.7m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2024-06-30 | $60.1m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | at 2024-06-30 | $4.82bn | us-gaap:Assets |
| Total liabilities | at 2024-06-30 | $3.67bn | us-gaap:Liabilities |
| Long-term debt | at 2024-06-30 | $3.19bn | us-gaap:LongTermDebt |
| Shareholders' equity | at 2024-06-30 | $1.15bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 83,640 characters.

*The following discussion of financial condition, results of operations, liquidity and capital resources and certain factors that may affect future results, including economic and industry-wide factors, of Enova International, Inc. and its subsidiaries should be read in conjunction with our consolidated financial statements and accompanying notes included under Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2023. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risk, uncertainties, and other factors that could cause actual results to differ materially from those made, projected or implied in the forward-looking statements. Please see “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with these statements.*

### BUSINESS OVERVIEW

We are a leading technology and analytics company focused on providing online financial services. In 2023, we extended approximately $4.9 billion in credit or financing to borrowers and for the six months ended June 30, 2024, we extended approximately $2.8 billion in credit or financing to borrowers. As of June 30, 2024, we offered or arranged loans or draws on lines of credit to consumers in 37 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 who and small businesses which 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, 2024, we have completed approximately 62.9 million customer transactions and collected more than 65 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.

We believe our customers highly value our products and services as an important component of their personal or business finances because our products are convenient, quick and often less expensive than other available alternatives. We attribute the success of our business to our advanced and innovative technology systems, the proprietary analytical models we use to predict the performance of loans and finance receivables, our sophisticated customer acquisition programs, our dedication to customer service and our talented employees.

We have developed proprietary underwriting systems based on data we have collected over our 20 years of experience. These systems employ advanced risk analytics, including machine learning and artificial intelligence, to decide whether to approve financing transactions, to structure the amount and terms of the financings we offer pursuant to jurisdiction-specific regulations and to provide customers with their funds quickly and efficiently. Our systems closely monitor collection and portfolio performance data that we use to continually refine machine learning-enabled analytical models and statistical measures used in making our credit, purchase, marketing and collection decisions. Approximately 90% of models used in our analytical environment are machine learning-enabled.

Our flexible and scalable technology platforms allow us to process and complete customers’ transactions quickly and efficiently. In 2023, we processed approximately 3.0 million transactions, and we continue to grow our loan and finance receivable portfolios and increase the number of customers we serve through desktop, tablet and mobile platforms. Our highly customizable technology platforms allow us to efficiently develop and deploy new products to adapt to evolving regulatory requirements and consumer preference, and to enter new markets quickly. In October 2020, we acquired, through a merger, On Deck Capital Inc. (“OnDeck”), a small business lending company offering lending and funding solutions to small businesses in the U.S., Australia and Canada, to expand our small business offerings. In March 2021, we acquired Pangea Universal Holdings (“Pangea”), which provides mobile international money transfer services to customers in the U.S with a focus on Latin America and Asia. These new products have allowed us to further diversify our product offerings and customer base.

We have been able to consistently acquire new customers and successfully generate repeat business from returning customers when they need financing. We believe our customers are loyal to us because they are satisfied with our products and services. We acquire new customers from a variety of sources, including visits to our own websites, mobile sites or applications, and through direct marketing, affiliate marketing, lead providers and relationships with other lenders. We believe that the online convenience of our products and our 24/7 availability to accept applications with quick approval decisions are important to our customers.

Once a potential customer submits an application, we quickly provide a credit or purchase decision. If a loan or financing is approved, we or our lending partner typically fund the loan or financing the next business day or, in some cases, the same day. During the entire process, from application through payment, we provide access to our well-trained customer service team. All of our operations, from customer acquisition through collections, are structured to build customer satisfaction and loyalty, in the event that a customer has a need for our products in the future. We have developed a series of sophisticated proprietary scoring models to support our various products. We believe that these models are an integral component of our operations and allow us to complete a high volume of customer transactions while actively managing risk and the related credit quality of our loan and finance receivable portfolios. We believe our successful application of these technological innovations differentiates our capabilities relative to competing platforms as evidenced by our history of strong growth and stable credit quality.

### PRODUCTS AND SERVICES

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.

- ***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 37 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. Our 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 79% for the year ended December 31, 2023. Loans may be repaid early at any time with no additional prepayment charges.
- ***Small business installment loans.*** Certain subsidiaries offer, or arrange through our Bank Programs, small business installment loans in 49 states and in Washington D.C. Terms for these products range between 3 and 24 months with an average contractual term of 16 months. Our loans have regular payments that amortize principal. Loan sizes for these products range between $5,000 and $250,000. There is generally a fee paid upon origination, and total interest is typically calculated at a fixed rate for the life of the loan. A portion of the interest is forgivable if prepaid early, although we also offer a full prepayment forgiveness option at a higher interest rate. The average annualized yield for these products was 42% for the year ended December 31, 2023.
- ***Consumer line of credit accounts.*** Certain subsidiaries directly offer, or purchase participation interests in receivables through our Bank Programs, new consumer line of credit accounts in 31 states (and continue to service existing line of credit accounts in two additional states) in the United States. Line of credit accounts allow customers to draw on their unsecured line of credit in increments of their choosing up to their credit limit, which ranges between $100 and $7,000. Customers may pay off their account balance in full at any time or make required minimum payments in accordance with the terms of the line of credit account. The repayment period varies depending upon certain factors, which may include outstanding principal and differences in minimum payment calculations by product. Customers are typically charged a fee when funds are drawn and subsequently incur fee- or interest-based charges at a fixed rate, depending upon the product and the state in which the customer resides. The average annualized yield for these products was 182% for the year ended December 31, 2023.
- ***Small business line of credit accounts.*** Certain subsidiaries offer, or arrange through our Bank Programs, small business line of credit accounts in 49 states and in Washington D.C. in the United States. Terms for these products range between 12 and 24 months with regular payments that amortize principal. Loan sizes for these products range between $5,000 and $100,000. Interest is calculated at a fixed rate based on the outstanding balance. There is generally no fee paid upon origination with the exception of one of our small business line of credit products, which has an origination fee when allowed by state law. The average annualized yield for these products was 46% for the year ended December 31, 2023.
- ***CSO program.*** We currently operate a credit services organization or credit access business (“CSO”) program in Texas. Through our CSO program, we provide services related to a third-party lender’s installment consumer loan products by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws. Services offered under our CSO program include credit-related services such as arranging loans with an independent third-party lender and assisting in the preparation of loan applications and loan documents (“CSO loans”). When a consumer executes an agreement with us under our CSO program, we agree, for a fee payable to us by the consumer, to provide certain services, one of which is to guarantee the consumer’s obligation to repay the loan received by the consumer from the third-party lender if the consumer fails to do so. For CSO loans, the lender is responsible for providing the criteria by which the consumer’s application is underwritten and, if approved, determining the amount of the consumer loan. We, in turn, are responsible for assessing whether or not we will guarantee such loan. The guarantee represents an obligation to purchase the loan, which has terms of up to six months, if it goes into default.
- ***Bank programs***. Certain subsidiaries operate programs with certain banks (“Bank Programs”) to provide marketing services and loan servicing for certain installment loans and line of credit accounts. The Bank Programs that relate to the consumer portfolio include near-prime unsecured installment loans and line of credit accounts for which our subsidiaries receive marketing and servicing fees. The bank has the ability to sell, and the participating subsidiaries have the option, but not the requirement, to purchase the loans or a participating interest in receivables the bank originates. We do not guarantee the performance of the loans and line of credit accounts originated by the bank. The Bank Program that relates to the small business portfolio is with a separate bank and includes installment loans and line of credit accounts. We receive marketing fees while the bank receives origination fees and certain program fees. The bank has the ability to sell and we have the option, but not the requirement, to purchase the installment loans the bank originates and, in the case of line of credit accounts, extensions under those line of credit accounts. We do not guarantee the performance of the loans or line of credit accounts originated by the bank.
- ***Money transfer business.*** Through the acquisition of Pangea, we operate a money transfer platform that allows customers to send money from the United States to Mexico, other Latin American countries and Asia. The customer pays us in U.S. dollars, and we then make local currency available to the intended recipient of the transfer in one of many termination countries. Our revenue model includes a fee per transfer and an exchange rate spread. Our customers can access our proprietary platform via the website, Android app, or iOS (Apple) app.

### OUR MARKETS

We currently provide our services in the following countries:

- ***United States.*** We began our online business in the United States in May 2004. As of June 30, 2024, we provided services in all 50 states and Washington D.C. We market our financing products under the names CashNetUSA at www.cashnetusa.com, NetCredit at www.netcredit.com, OnDeck at www.ondeck.com, Headway Capital at www.headwaycapital.com and Pangea at www.pangeamoneytransfer.com.
- ***Brazil.*** In June 2014, we launched our business in Brazil under the name Simplic at www.simplic.com.br, where we arrange unsecured consumer installment loans for a third-party lender. We plan to continue to invest in and expand our financial services program in Brazil.

Our internet websites and the information contained therein or connected thereto are not intended to be incorporated by reference into this Quarterly Report on Form 10-Q.

### RECENT REGULATORY DEVELOPMENTS

### State of Washington SSB 6025

In March 2024, the Governor of the State of Washington signed into law a bill that amends the Consumer Loan Act (“CLA”) to add anti-evasion language and a predominant economic interest test for closed-end and open-end loans. In addition, the bill would prohibit engaging in “any activity subject to” the CLA without a license as required by the CLA. The law expands the CLA’s coverage to include any loan made to a “person physically located” in Washington, in addition to the existing coverage of any loan made to a “resident” of Washington, “by a licensee, or persons subject to this chapter”. The current rate cap under the CLA is 25%. The law took effect on June 6, 2024, and applies to loans or advances originated on or after that date. We do not expect the changes brought about by this law to have a material impact on our consolidated financial statements.

### Consumer Financial Protection Bureau

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.

On October 6, 2017, the CFPB issued its final rule entitled “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the “Small Dollar Rule”), which covers certain consumer loans that we offer. The Small Dollar Rule initially required that lenders who make short-term loans and longer-term loans with balloon payments reasonably determine consumers’ ability to repay (“ATR”) the loans according to their terms before issuing the loans. The Small Dollar Rule also introduced new limitations on repayment processes for those lenders as well as lenders of other longer-term loans with an annual percentage rate greater than 36 percent that include an ACH authorization or similar payment provision. If a consumer has two consecutive failed payment attempts, the lender must obtain the consumer’s new and specific authorization to make further withdrawals from the consumer’s bank account. For loans covered by the Small Dollar Rule, lenders must provide certain notices to consumers before attempting a first payment withdrawal or an unusual withdrawal and after two consecutive failed withdrawal attempts. On July 7, 2020, the CFPB issued a final rule rescinding the ATR provisions of the Small Dollar Rule along with related provisions, such as the establishment of registered information systems for checking ATR and reporting loan activity. The payment provisions of the Small Dollar Rule remain in place. In April 2018, an action was filed against the CFPB making a constitutional challenge to the Small Dollar Rule. On October 19, 2022, a three-judge panel of the Fifth Circuit U.S. Circuit Court of Appeals ruled that the funding structure of the CFPB is unconstitutional and vacated the Small Dollar Rule. The CFPB filed a petition for a writ of certiorari to the Supreme Court. The Supreme Court granted the petition on February 27, 2023. The Supreme Court heard oral arguments on October 3, 2023 and, on May 16, 2024, upheld the constitutionality of the funding structure of the CFPB and remanded the case back to the Fifth Circuit. On June 19, 2024, the Fifth Circuit rendered judgment in favor of the CFPB declaring that the CFPB’s funding structure and the Small Dollar Rule are constitutional, and reinstated its judgment in favor of the CFPB for the Community Financial Services Association of America’s (“CFSA”) alternative arguments. On July 3, 2024, the CFSA filed a petition for rehearing en banc. The Small Dollar Rule will not take effect until 286 days after resolution of the appeal as ordered by the Fifth Circuit when it extended the district court’s stay of the compliance date in 2021. If the Small Dollar Rule does become effective in its current proposed form, we will need to make certain changes to our payment processes and customer notifications in our U.S. consumer lending business.

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. The implementation date for Section 1071 has been stayed for all covered financial institutions until after the resolution of the Supreme Court’s decision in Community Financial Services Association of America Ltd v. Consumer Financial Protection Bureau.

### Minnesota Commerce Omnibus Bill

In May 2023, the Governor of Minnesota signed into law a bill that caps the APR on consumer small loans and consumer short-term loans at a 50% all-in APR and expressly provides for predominant economic interest and totality of the circumstance tests for true lender purposes. The bill defines "consumer small loan" as a consumer-purpose unsecured loan equal to or less than $350 that must be repaid in a single installment. The bill defines a "consumer short-term loan" as a loan to a borrower which has a principal amount, or an advance on a credit limit, of $1,300 or less and requires a minimum payment of more than 25% of the principal balance or credit advance within 60 days. The bill requires the lender to perform an ability to pay analysis if the all-in APR on a consumer small loan or consumer short-term loan exceeds 36%. The bill also codifies a predominant economic interest test for bank service arrangements whereby a broker or servicer with a predominant economic interest in a loan is considered to be the “true lender” for purposes of applying the rate cap. The law took effect on January 1, 2024 and applies to loans or advances originated on or after that date. We do not expect the changes brought about by this law to have a material impact on our consolidated financial statements.

### European Union Pillar Two Directive

On December 15, 2022, the European Union (“EU”) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (“OECD”) Pillar Two Framework that was supported by over 130 countries worldwide. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation. As of June 30, 2024, among the jurisdictions where the Company operates, only the U.K. has enacted legislation adopting the Pillar Two Rules, effective in fiscal 2025. We do not expect the changes brought about by this directive to have a material impact on our consolidated financial statements.

### RESULTS OF OPERATIONS

### Highlights

Our financial results for the three-month period ended June 30, 2024, or the current quarter, are summarized below.

- Consolidated total revenue increased $129.0 million, or 25.8%, to $628.4 million in the current quarter compared to $499.4 million for the three months ended June 30, 2023, or the prior year quarter.
- Consolidated net revenue was $370.2 million in the current quarter compared to $299.4 million in the prior year quarter.
- Consolidated income from operations increased $33.5 million, or 30.0%, to $145.1 million in the current quarter compared to $111.6 million in the prior year quarter.
- Consolidated net income was $53.9 million in the current quarter compared to $48.1 million in the prior year quarter. Consolidated diluted income per share was $1.93 in the current quarter compared to $1.50 in the prior year quarter.

### Overview

The following tables reflect our results of operations for the periods indicated, both in dollars and as a percentage of total revenue (dollars in thousands, except per share data):

| Revenue | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Loans and finance receivables revenue | $619,340 | $492,723 | $1,220,548 | $968,190 |
| Other | 9,096 | 6,708 | 17,777 | 14,497 |
| **Total Revenue** | 628,436 | 499,431 | 1,238,325 | 982,687 |
| **Change in Fair Value** | (258,245) | (200,046) | (522,268) | (397,412) |
| **Net Revenue** | 370,191 | 299,385 | 716,057 | 585,275 |
| **Operating Expenses** |  |  |  |  |
| Marketing | 120,765 | 95,971 | 231,332 | 175,726 |
| Operations and technology | 54,953 | 46,961 | 109,332 | 96,130 |
| General and administrative | 39,708 | 36,228 | 79,573 | 73,386 |
| Depreciation and amortization | 9,709 | 8,629 | 19,972 | 19,169 |
| **Total Operating Expenses** | 225,135 | 187,789 | 440,209 | 364,411 |
| **Income from Operations** | 145,056 | 111,596 | 275,848 | 220,864 |
| Interest expense, net | (70,954) | (45,584) | (136,551) | (88,905) |
| Foreign currency transaction loss | (19) | — | (67) | (171) |
| Equity method investment loss | — | (1,119) | — | (1,125) |
| Other nonoperating expenses | (521) | (121) | (1,013) | (254) |
| **Income before Income Taxes** | 73,562 | 64,772 | 138,217 | 130,409 |
| Provision for income taxes | 19,651 | 16,627 | 35,878 | 31,341 |
| **Net income** | $53,911 | $48,145 | $102,339 | $99,068 |
| **Earnings per common share - diluted** | $1.93 | $1.50 | $3.56 | $3.05 |
| **Revenue** |  |  |  |  |
| Loans and finance receivables revenue | 98.6% | 98.7% | 98.6% | 98.5% |
| Other | 1.4 | 1.3 | 1.4 | 1.5 |
| **Total Revenue** | 100.0 | 100.0 | 100.0 | 100.0 |
| **Change in Fair Value** | (41.1) | (40.1) | (42.2) | (40.4) |
| **Net Revenue** | 58.9 | 59.9 | 57.8 | 59.6 |
| **Operating Expenses** |  |  |  |  |
| Marketing | 19.2 | 19.2 | 18.7 | 17.9 |
| Operations and technology | 8.7 | 9.4 | 8.8 | 9.8 |
| General and administrative | 6.3 | 7.3 | 6.4 | 7.5 |
| Depreciation and amortization | 1.6 | 1.7 | 1.6 | 1.9 |
| **Total Operating Expenses** | 35.8 | 37.6 | 35.5 | 37.1 |
| **Income from Operations** | 23.1 | 22.3 | 22.3 | 22.5 |
| Interest expense, net | (11.3) | (9.1) | (11.0) | (9.1) |
| Foreign currency transaction loss | — | — | — | — |
| Equity method investment loss | — | (0.2) | — | (0.1) |
| Other nonoperating expenses | (0.1) | — | (0.1) | — |
| **Income before Income Taxes** | 11.7 | 13.0 | 11.2 | 13.3 |
| Provision for income taxes | 3.1 | 3.3 | 2.9 | 3.2 |
| **Net income** | 8.6% | 9.6% | 8.3% | 10.1% |

### Valuation of Loans and Finance Receivables

We carry our loans and finance receivables at fair value with changes in fair value recognized directly in earnings. We estimate the fair value of our loans and finance receivables primarily using internally-developed, discounted cash flow analyses to more accurately predict future payments. We adjust contractual cash flows for estimated losses, prepayments and servicing costs over the estimated duration of the underlying assets and discount the future cash flows using a rate of return that we believe a market participant would require. Model results may be adjusted by management if we do not believe the output reflects the fair value of the portfolio, as defined under GAAP.

The models are updated at each measurement date to capture any changes in internal factors such as nature, term, volume, payment trends, remaining time to maturity, and portfolio mix, as well as changes in underwriting or observed trends expected to impact future performance. We have validated model performance by comparing past valuations with actual performance noted after each valuation.

During 2023 and continuing into the first half of 2024, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, 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, 2024, 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.

### NON-GAAP FINANCIAL MEASURES

In addition to the financial information prepared in conformity with GAAP, we provide historical non-GAAP financial information. We present non-GAAP financial information because such measures are used by management in understanding the activities and business metrics of our operations. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our business that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Readers should consider the information in addition to, but not instead of or superior to, our consolidated financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

### Adjusted Earnings Measures

We provide adjusted earnings and adjusted earnings per share, or, collectively, the Adjusted Earnings Measures, which are non-GAAP measures. We believe that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which can provide a more complete understanding of our financial performance, competitive position and prospects for the future. We utilize, and also believe that investors utilize, the Adjusted Earnings Measures to assess operating performance, recognizing that such measures may highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, we believe that the Adjusted Earnings Measures are useful to management and investors in comparing our financial results during the periods shown without the effect of certain items that are not indicative of our core operating performance or results of operations.

The following table provides reconciliations between net income and diluted earnings per share calculated in accordance with GAAP to the Adjusted Earnings Measures (in thousands, except per share data):

|  | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Net income | $53,911 | $48,145 | $102,339 | $99,068 |
| Adjustments: |  |  |  |  |
| Transaction-related costs(a) | — | — | 327 | — |
| Lease termination and cease-use costs(b) | — | — | — | 1,698 |
| Equity method investment loss | — | 1,119 | — | 1,125 |
| Other nonoperating expenses(c) | 521 | 121 | 1,013 | 254 |
| Intangible asset amortization | 2,013 | 2,013 | 4,027 | 4,357 |
| Stock-based compensation expense | 7,764 | 6,236 | 15,403 | 12,205 |
| Foreign currency transaction loss | 19 | — | 67 | 171 |
| Cumulative tax effect of adjustments | (2,590) | (2,364) | (5,232) | (4,935) |
| Adjusted earnings | $61,638 | $55,270 | $117,944 | $113,943 |
| Diluted earnings per share | $1.93 | $1.50 | $3.56 | $3.05 |
| Adjustments: |  |  |  |  |
| Transaction-related costs | — | — | 0.01 | — |
| Lease termination and cease-use costs | — | — | — | 0.05 |
| Equity method investment loss | — | 0.04 | — | 0.03 |
| Other nonoperating expenses | 0.02 | — | 0.04 | 0.01 |
| Intangible asset amortization | 0.07 | 0.06 | 0.14 | 0.13 |
| Stock-based compensation expense | 0.28 | 0.19 | 0.54 | 0.38 |
| Foreign currency transaction loss | — | — | — | 0.01 |
| Cumulative tax effect of adjustments | (0.09) | (0.07) | (0.18) | (0.15) |
| Adjusted earnings per share | $2.21 | $1.72 | $4.11 | $3.51 |

*(a) In the first quarter of 2024, we recorded costs totaling $0.3 million ($0.2 million net of related tax) related to a consent solicitation for the Senior Notes due 2025.*

*(b) In the first quarter of 2023, we incurred expenses totaling $1.7 million ($1.3 million net of tax) related to the exit of leased office space.*

*(c) In the first and second quarters of 2024 and 2023, we recorded other nonoperating expenses of $0.5 million ($0.4 million net of tax) in each quarter and $0.1 million ($0.1 million net of tax) in each quarter, respectively, related to early extinguishment of debt.*

### Adjusted EBITDA

We provide Adjusted EBITDA, which is a non-GAAP measure that we define as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes, stock-based compensation expense and certain other items, as appropriate, that are not indicative of our core operating performance. We utilize, and also believe that investors utilize, Adjusted EBITDA to analyze operating performance and evaluate our ability to incur and service debt and our capacity for making capital expenditures. We believe Adjusted EBITDA is useful to management and investors in comparing our financial results during the periods shown without the effect of certain non-cash items and certain items that are not indicative of our core operating performance or results of operations. Adjusted

EBITDA is also useful to investors to help assess our estimated enterprise value. The computation of Adjusted EBITDA, as presented below, may differ from the computation of similarly-titled measures provided by other companies (in thousands):

|  | Three Months Ended June 30, 2024 | 2023 | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: | ---: | ---: |
| Net income | $53,911 | $48,145 | $102,339 | $99,068 |
| Depreciation and amortization expenses | 9,709 | 8,629 | 19,972 | 19,169 |
| Interest expense, net | 70,954 | 45,584 | 136,551 | 88,905 |
| Foreign currency transaction loss | 19 | — | 67 | 171 |
| Provision for income taxes | 19,651 | 16,627 | 35,878 | 31,341 |
| Stock-based compensation expense | 7,764 | 6,236 | 15,403 | 12,205 |
| Adjustments: |  |  |  |  |
| Transaction-related costs(a) | — | — | 327 | — |
| Equity method investment loss | — | 1,119 | — | 1,125 |
| Other nonoperating expenses(b) | 521 | 121 | 1,013 | 254 |
| Adjusted EBITDA | $162,529 | $126,461 | $311,550 | $252,238 |
| Adjusted EBITDA margin calculated as follows: |  |  |  |  |
| Total Revenue | $628,436 | $499,431 | $1,238,325 | $982,687 |
| Adjusted EBITDA | 162,529 | 126,461 | 311,550 | 252,238 |
| Adjusted EBITDA as a percentage of total revenue | 25.9% | 25.3% | 25.2% | 25.7% |

*(a) In the first quarter of 2024, we recorded costs totaling $0.3 million ($0.2 million net of related tax) related to a consent solicitation for the Senior Notes due 2025.*

*(b) In the first quarters of 2024 and 2023, we recorded other nonoperating expenses of $0.5 million ($0.4 million net of tax) in each quarter and $0.1 million ($0.1 million net of tax) in each quarter, respectively, related to early extinguishment of debt.*

### Combined Loans and Finance Receivables Measures

In addition to reporting loans and finance receivables balance information in accordance with GAAP (see Note 2 in the Notes to Consolidated Financial Statements included in this report), we have provided metrics on a combined basis. The Combined Loans and Finance Receivables Measures are non-GAAP measures that include both loans and RPAs we own or have purchased and loans we guarantee, which are either GAAP items or disclosures required by GAAP. See “—Loan and Finance Receivable Balances” and “—Credit Performance of Loans and Finance Receivables” below for reconciliations between Company owned and purchased loans and finance receivables, gross, change in fair value and charge-offs (net of recoveries) calculated in accordance with GAAP to the Combined Loans and Finance Receivables Measures.

We believe these non-GAAP measures provide management and investors with important information needed to evaluate the magnitude of potential receivable losses and the opportunity for revenue performance of the loans and finance receivable portfolio on an aggregate basis. We also believe that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on our consolidated balance sheet since both revenue and cost of revenue are impacted by the aggregate amount of receivables we own and those we guarantee as reflected in our consolidated financial statements.

### THREE MONTHS ENDED JUNE 30, 2024 COMPARED TO THREE MONTHS ENDED JUNE 30, 2023

### Revenue and Net Revenue

Revenue increased $129.0 million, or 25.8%, to $628.4 million for the current quarter as compared to $499.4 million for the prior year quarter. The increase was driven by a 32.2% increase in revenue from our small business portfolio and a 21.6% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.

Net revenue for the current quarter was $370.2 million compared to $299.4 million for the prior year quarter. Our consolidated net revenue margin was 58.9% for the current quarter compared to 59.9% for the prior year quarter. The decrease in consolidated net revenue margin was driven primarily by lower net revenue margin in the consumer portfolio, partially offset by higher net revenue margin in the small business portfolio. 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.

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

| Revenue by product: | Three Months Ended June 30, 2024 | 2023 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Consumer loans and finance receivables revenue | $367,558 | $302,264 | $65,294 | 21.6% |
| Small business loans and finance receivables revenue | 251,782 | 190,459 | 61,323 | 32.2 |
| Total loans and finance receivables revenue | 619,340 | 492,723 | 126,617 | 25.7 |
| Other | 9,096 | 6,708 | 2,388 | 35.6 |
| Total revenue | 628,436 | 499,431 | 129,005 | 25.8 |
| Change in fair value | (258,245) | (200,046) | (58,199) | 29.1 |
| Net revenue | $370,191 | $299,385 | $70,806 | 23.7% |
| **Revenue by product (% to total):** |  |  |  |  |
| Consumer loans and finance receivables revenue | 58.5% | 60.5% |  |  |
| Small business loans and finance receivables revenue | 40.1 | 38.2 |  |  |
| Total loans and finance receivables revenue | 98.6 | 98.7 |  |  |
| Other | 1.4 | 1.3 |  |  |
| Total revenue | 100.0 | 100.0 |  |  |
| Change in fair value | (41.1) | (40.1) |  |  |
| Net revenue | 58.9% | 59.9% |  |  |

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

|  | Three Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Loan interest | $410,316 | $343,541 |
| Statement and draw fees on line of credit accounts | 182,486 | 116,892 |
| Other | 35,634 | 38,998 |
| Total Revenue | $628,436 | $499,431 |

### Loan and Finance Receivable Balances

The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $3,939.2 million and $3,092.4 million as of June 30, 2024 and 2023, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $3,423.7 million and $2,756.9 million as of June 30, 2024 and 2023, respectively. The fair value of the combined loan and finance receivables portfolio includes $17.3 million and $19.1 million with an outstanding principal balance of $12.5 million and $14.2 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, 2024 and 2023, respectively.

The consumer portfolio balance was 36.4% of our combined loan and finance receivable portfolio balance at fair value as of June 30, 2024, which decreased slightly compared to 38.2% as of June 30, 2023. Our small business portfolio of loans and finance receivables was 63.6% of our combined loan and finance receivable portfolio at fair value as of June 30, 2024, compared to 61.8% as of June 30, 2023. See “—Non-GAAP Disclosure—Combined Loans and Finance Receivables Measures” above for additional information related to combined loans and finance receivables.

The following tables summarize loan and finance receivable balances outstanding as of June 30, 2024 and 2023 (in thousands):

| Consumer loans and finance receivables | As of June 30, 2024 Company Owned(a) | Guaranteed by the Company(a) | Combined | As of June 30, 2023 Company Owned(a) | Guaranteed by the Company(a) | Combined |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Principal | $1,176,727 | $12,487 | $1,189,214 | $983,388 | $14,199 | $997,587 |
| Fair value | 1,421,814 | 17,284 | 1,439,098 | 1,168,044 | 19,115 | 1,187,159 |
| Fair value as a % of principal | 120.8% | 138.4% | 121.0% | 118.8% | 134.6% | 119.0% |
| **Small business loans and finance receivables** |  |  |  |  |  |  |
| Principal | $2,246,925 | $— | $2,246,925 | $1,773,554 | $— | $1,773,554 |
| Fair value | 2,517,345 | — | 2,517,345 | 1,924,401 | — | 1,924,401 |
| Fair value as a % of principal | 112.0% | —% | 112.0% | 108.5% | —% | 108.5% |
| **Total loans and finance receivables** |  |  |  |  |  |  |
| Principal | $3,423,652 | $12,487 | $3,436,139 | $2,756,942 | $14,199 | $2,771,141 |
| Fair value | 3,939,159 | 17,284 | 3,956,443 | 3,092,445 | 19,115 | 3,111,560 |
| Fair value as a % of principal | 115.1% | 138.4% | 115.1% | 112.2% | 134.6% | 112.3% |

*(a) GAAP measure. The loans and finance receivables balances guaranteed by us relate to loans originated by a third-party lender through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.*

At June 30, 2024 and 2023, the ratio of fair value as a percentage of principal was 115.1% and 112.2%, respectively, on company owned loans and finance receivables and 115.1% and 112.3%, respectively, on combined loans and finance receivables. These ratios 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.

### Average Amount Outstanding per Loan and Finance Receivable

The average amount outstanding per loan and finance receivable is calculated as the total combined loans and finance receivables, gross balance at the end of the period divided by the total number of combined loans and finance receivables outstanding at the end of the period. The following table shows the average amount outstanding per loan and finance receivable by product at June 30, 2024 and 2023:

| Average amount outstanding per loan and finance receivable(a) | As of June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Consumer loans and finance receivables(b) | $1,703 | $1,864 |
| Small business loans and finance receivables | 39,222 | 36,931 |
| Total loans and finance receivables(b) | 4,361 | 4,557 |

*(a) The disclosure regarding the average amount per loan and finance receivable is statistical data that is not included in our consolidated financial statements.*

*(b) Includes loans guaranteed by us, which represent loans originated by a third-party lender through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.*

The average amount outstanding per loan and finance receivable decreased slightly in the current quarter compared to the prior year quarter for our overall portfolio due primarily to a mix shift in our consumer portfolio to line of credit accounts, which generally have lower average outstanding balances compared to installment loans.

### Average Loan and Finance Receivable Origination

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 quarter compared to the prior year quarter:

| Average loan and finance receivable origination amount(a) | Three Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Consumer loans and finance receivables(b)(c) | $563 | $608 |
| Small business loans and finance receivables(c) | 15,583 | 16,217 |
| Total loans and finance receivables(b) | 1,515 | 1,580 |

*(a) The disclosure regarding the average loan origination amount is statistical data that is not included in our consolidated financial statements.*

*(b) Includes loans guaranteed by us, which represent loans originated by a third-party lender through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.*

*(c) For line of credit accounts, the average represents the average amount of each incremental draw.*

The average loan and finance receivable origination amount is smaller than the average amount outstanding per loan and finance receivable in the previous section as the former measure includes incremental draws on our line of credit accounts whereas the latter measure includes the entire outstanding receivable on our line of credit accounts.

The average loan and finance receivable origination amount decreased slightly to $1,515 during the current quarter from $1,580 during the prior year quarter, due primarily to a higher percentage of line of credit draws in comparison to installment loan originations, as the former are typically lower in average dollar amount.

### Credit Performance of Loans and Finance Receivables

We monitor the performance of our loans and finance receivables. Internal factors such as portfolio composition (e.g., interest rate, loan term, geography information, customer mix, credit quality) and performance (e.g., delinquency, loss trends, prepayment rates) are reviewed on a regular basis at various levels (e.g., product, vintage). We also weigh the impact of relevant, internal business decisions on the portfolio. External factors such as macroeconomic trends, financial market liquidity expectations, competitive landscape and legal/regulatory requirements are also reviewed on a regular basis.

The payment status of a customer, including the degree of any delinquency, is a significant factor in determining estimated charge-offs in the cash flow models that we use to determine fair value. The following table shows payment status on outstanding principal, interest and fees as of the end of each of the last five quarters (in thousands):

| Ending combined loans and finance receivables, including principal and accrued fees/interest outstanding: | 2023 Second Quarter | Third Quarter | Fourth Quarter | 2024 First Quarter | Second Quarter |
| --- | ---: | ---: | ---: | ---: | ---: |
| Company owned | $2,857,557 | $3,037,904 | $3,297,082 | $3,438,468 | $3,569,726 |
| Guaranteed by the Company(a) | 16,972 | 16,533 | 16,351 | 13,046 | 14,941 |
| **Ending combined loan and finance receivables balance(b)** | $2,874,529 | $3,054,437 | $3,313,433 | $3,451,514 | $3,584,667 |
| \> 30 days delinquent | 221,540 | 242,126 | 263,524 | 279,659 | 268,053 |
| \> 30 days delinquency rate | 7.7% | 7.9% | 8.0% | 8.1% | 7.5% |

*(a) Represents loans originated by a third-party lender through the CSO program that we have not yet purchased, which are not included in our consolidated balance sheets.*

*(b) Non-GAAP measure. See “—Non-GAAP Disclosure—Combined Loans and Finance Receivables Measures” above.*

### Consumer Loans and Finance Receivables

The following table includes financial information for our consumer loans and finance receivables. Delinquency metrics include principal, interest and fees, and only amounts that are past due (in thousands):

| Consumer loans and finance receivables: Consumer combined loan and finance receivable principal balance: | 2023 Second Quarter | Third Quarter | Fourth Quarter | 2024 First Quarter | Second Quarter |
| --- | ---: | ---: | ---: | ---: | ---: |
| Company owned | $983,388 | $1,078,228 | $1,138,928 | $1,106,364 | $1,176,727 |
| Guaranteed by the Company(a) | 14,199 | 13,684 | 13,537 | 10,780 | 12,487 |
| **Total combined loan and finance receivable principal balance(b)** | $997,587 | $1,091,912 | $1,152,465 | $1,117,144 | $1,189,214 |
| **Consumer combined loan and finance receivable fair value balance:** |  |  |  |  |  |
| Company owned | $1,168,044 | $1,286,330 | $1,380,784 | $1,347,165 | $1,421,814 |
| Guaranteed by the Company(a) | 19,115 | 18,661 | 18,534 | 14,773 | 17,284 |
| **Ending combined loan and finance receivable fair value balance(b)** | $1,187,159 | $1,304,991 | $1,399,318 | $1,361,938 | $1,439,098 |
| Fair value as a % of principal(b)(c) | 119.0% | 119.5% | 121.4% | 121.9% | 121.0% |
| **Consumer combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:** |  |  |  |  |  |
| Company owned | $1,068,742 | $1,182,769 | $1,246,675 | $1,208,551 | $1,285,755 |
| Guaranteed by the Company(a) | 16,972 | 16,533 | 16,351 | 13,046 | 14,941 |
| **Ending combined loan and finance receivable balance(b)** | $1,085,714 | $1,199,302 | $1,263,026 | $1,221,597 | $1,300,696 |
| **Average consumer combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:** |  |  |  |  |  |
| Company owned(d) | $1,017,061 | $1,133,499 | $1,218,622 | $1,242,677 | $1,244,846 |
| Guaranteed by the Company(a)(d) | 14,627 | 17,681 | 16,341 | 14,956 | 13,730 |
| **Average combined loan and finance receivable balance(b)(d)** | $1,031,688 | $1,151,180 | $1,234,963 | $1,257,633 | $1,258,576 |
| Installment loans as percentage of average combined loan and finance receivable balance | 53.5% | 46.4% | 42.3% | 40.4% | 39.0% |
| Line of credit accounts as percentage of average combined loan and finance receivable balance | 46.5% | 53.6% | 57.7% | 59.6% | 61.0% |
| Revenue | $302,264 | $347,898 | $364,058 | $364,731 | $367,558 |
| Change in fair value | (115,946) | (174,766) | (183,169) | (182,979) | (164,011) |
| Net revenue | 186,318 | 173,132 | 180,889 | 181,752 | 203,547 |
| Net revenue margin | 61.6% | 49.8% | 49.7% | 49.8% | 55.4% |
| Combined loan and finance receivable originations and purchases | $401,468 | $478,501 | $497,978 | $417,432 | $490,640 |
| **Delinquencies:** |  |  |  |  |  |
| \> 30 days delinquent | $73,829 | $93,542 | $90,596 | $84,137 | $82,169 |
| \> 30 days delinquent as a % of combined loan and finance receivable balance(b)(c) | 6.8% | 7.8% | 7.2% | 6.9% | 6.3% |
| **Charge-offs:** |  |  |  |  |  |
| Charge-offs (net of recoveries) | $131,198 | $178,902 | $213,813 | $187,419 | $161,171 |
| Charge-offs (net of recoveries) as a % of average combined loan and finance receivable balance(b)(d) | 12.7% | 15.5% | 17.3% | 14.9% | 12.8% |

*(a) Represents loans originated by a third-party lender through the CSO program that we have not yet purchased, which are not included in our consolidated balance sheets.*

#### (b) Non-GAAP measure.

#### (c) Determined using period-end balances.

*(d) The average combined loan and finance receivable balance is the average of the month-end balances during the period.*

The ending balance, including principal and accrued fees/interest outstanding, of combined consumer loans and finance receivables at June 30, 2024 increased 19.8% to $1,300.7 million compared to $1,085.7 million at June 30, 2023, due primarily to originations outpacing repayments.

The percentage of loans greater than 30 days delinquent of 6.3% was lower at June 30, 2024, compared to 6.8% at June 30, 2023, due primarily to stronger credit performance in most of our consumer products. Charge-offs (net of recoveries) as a percentage of average combined loan balance was flat at 12.8% for the current quarter, compared to 12.7% for the prior year quarter. 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. Lower originations, particularly to new customers, which typically default at a higher percentage than returning customers, generally result in lower delinquencies and charge-offs as the book is more seasoned. Charge-off performance in the current quarter follows this seasonal pattern.

Revenue related to our consumer loans and finance receivables was $367.6 million for the current quarter, compared to $302.3 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 of 55.4% was lower in the current quarter compared to 61.6% for the prior year quarter, but higher compared to the past three sequential quarters.

The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 121.0% at June 30, 2024, compared to 119.0% at June 30, 2023 and 121.9% at March 31, 2024. The increase from the prior year quarter was due primarily to a mix shift towards line of credit products, which generally have a higher fair value as a percentage of principal compared to installment loans. 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.

### Small Business Loans and Finance Receivables

The following table includes financial information for our small business loans and finance receivables. Delinquency metrics include principal, interest, and fees, and only amounts that are past due (in thousands):

| Small business loans and finance receivables: | 2023 Second Quarter | Third Quarter | Fourth Quarter | 2024 First Quarter | Second Quarter |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total loan and finance receivable principal balance | $1,773,554 | $1,826,458 | $2,015,807 | $2,192,066 | $2,246,925 |
| Ending loan and finance receivable fair value balance | 1,924,401 | 2,034,732 | 2,248,383 | 2,448,045 | 2,517,345 |
| Fair value as a % of principal(a) | 108.5% | 111.4% | 111.5% | 111.7% | 112.0% |
| Ending loan and finance receivable balance, including principal and accrued fees/interest outstanding | $1,788,815 | $1,855,135 | $2,050,407 | $2,229,917 | $2,283,971 |
| Average loan and finance receivable balance(b) | $1,800,700 | $1,813,995 | $1,922,857 | $2,133,422 | $2,240,893 |
| Installment loans as percentage of average combined loan and finance receivable balance | 59.1% | 57.2% | 55.3% | 54.0% | 52.6% |
| Line of credit accounts as percentage of average combined loan and finance receivable balance | 40.9% | 42.8% | 44.7% | 46.0% | 47.4% |
| Revenue | $190,459 | $195,226 | $210,663 | $236,477 | $251,782 |
| Change in fair value | (82,180) | (54,992) | (73,243) | (79,127) | (91,969) |
| Net revenue | 108,279 | 140,234 | 137,420 | 157,350 | 159,813 |
| Net revenue margin | 56.9% | 71.8% | 65.2% | 66.5% | 63.5% |
| Combined loan and finance receivable originations and purchases | $711,659 | $782,685 | $927,807 | $959,935 | $918,014 |
| **Delinquencies:** |  |  |  |  |  |
| \> 30 days delinquent | $147,711 | $148,584 | $172,928 | $195,522 | $185,884 |
| \> 30 days delinquent as a % of loan balance(a) | 8.3% | 8.0% | 8.4% | 8.8% | 8.1% |
| **Charge-offs:** |  |  |  |  |  |
| Charge-offs (net of recoveries) | $83,772 | $99,001 | $91,623 | $99,279 | $107,215 |
| Charge-offs (net of recoveries) as a % of average loan and finance receivable balance(b) | 4.7% | 5.5% | 4.8% | 4.7% | 4.8% |

#### (a) Determined using period-end balances.

*(b) The average loan and finance receivable balance is the average of the month-end balances during the period.*

The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at June 30, 2024 increased 27.7% to $2,284.0 million compared to $1,788.8 million at June 30, 2023, due primarily to originations outpacing repayments.

The percentage of loans greater than 30 days delinquent of 8.1% was slightly lower at June 30, 2024, compared to 8.3% at June 30, 2023. Charge-offs (net of recoveries) as a percentage of average loan balance were flat at 4.8% for the current quarter, compared to 4.7% in the prior year quarter. These metrics evidence stability in credit performance of our small business portfolio.

Revenue related to our small business loans and finance receivables was $251.8 million for the current quarter, compared to $190.5 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 small business loans and finance receivables was 63.5% for the current quarter, compared to 56.9% for the prior year quarter, due to improved performance of more recent vintages.

The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.0% at June 30, 2024, compared to 108.5% at June 30, 2023 and 111.7% at March 31, 2024. The increase from June 30, 2023 was due primarily to recent vintages, which have exhibited improved performance, being a higher percentage of the portfolio.

### Total Operating Expenses

Total operating expenses increased $37.3 million, or 19.9%, to $225.1 million in the current quarter, compared to $187.8 million in the prior year quarter.

Marketing expense increased to $120.8 million in the current quarter compared to $96.0 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.

Operations and technology expense increased to $54.9 million in the current quarter compared to $47.0 million in the prior year quarter, due primarily to higher variable costs, particularly personnel costs, underwriting, and other selling expenses, due to the increase in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased to 8.7% in the current year quarter from 9.4% in the prior year quarter, as increased originations and revenues outpaced fixed costs.

General and administrative expense increased to $39.7 million in the current quarter compared to $36.2 million in the prior year quarter, due largely to higher personnel costs, partially offset by lower legal and consulting costs. As a percentage of revenue, general and administrative expense decreased to 6.3% in the current year quarter from 7.3% in the prior year quarter, as increased originations and revenues outpaced fixed costs.

Depreciation and amortization expense increased $1.1 million or 12.5% compared to the prior year quarter driven primarily by general growth in the business and additional internally-developed software placed into service.

### Nonoperating Items

Interest expense, net increased $25.4 million, or 55.7%, to $71.0 million in the current quarter compared to $45.6 million in the prior year quarter. The increase was due primarily to an increase in the average amount of debt outstanding, which increased $813.2 million to $3,081.6 million during the current quarter from $2,268.4 million during the prior year quarter, and an increase in the weighted average interest rate on our outstanding debt to 9.33% during the current quarter from 8.16% during the prior year quarter resulting primarily from year-over-year increases in benchmark rates.

### Provision for Income Taxes

The effective tax rate of 26.7% in the current quarter was higher than the 25.7% rate recorded in the prior year quarter due primarily to additional interest expense on unrecognized tax benefits.

### Net Income

Net income increased $5.8 million, or 12.0%, to $53.9 million during the current quarter compared to $48.1 million during the prior year quarter. The increase was due primarily to an increase in income from operations due primarily to increased net revenue and lower operating expenses as a percentage of revenue, partially offset by higher interest expense as a result of an increase in the average amount of debt outstanding and an increase in the weighted average interest rate on our outstanding debt.

### SIX MONTHS ENDED JUNE 30, 2024 COMPARED TO SIX MONTHS ENDED JUNE 30, 2023

### Revenue and Net Revenue

Revenue increased $255.6 million, or 26.0%, to $1,238.3 million for the six-month period ended June 30, 2024, or current six-month period, as compared to $982.7 million for the six-month period ended June 30, 2023, or prior year six-month period. The increase was driven by a 26.8% increase in revenue from our small business portfolio and a 25.5% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.

Net revenue for the current six-month period was $716.0 million compared to $585.3 million for the prior year six-month period. Our consolidated net revenue margin was 57.8% for the current six-month period compared to 59.6% for the prior year six-month period.

The decrease in net revenue margin was driven primarily by lower net revenue margin in the consumer portfolio, partially offset by higher net revenue margin in the small business portfolio.

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):

| Revenue by product: | Six Months Ended June 30, 2024 | 2023 | $ Change | % Change |
| --- | ---: | ---: | ---: | ---: |
| Consumer loans and finance receivables revenue | $732,289 | $583,275 | $149,014 | 25.5% |
| Small business loans and finance receivables revenue | 488,259 | 384,915 | 103,344 | 26.8 |
| Total loans and finance receivables revenue | 1,220,548 | 968,190 | 252,358 | 26.1 |
| Other | 17,777 | 14,497 | 3,280 | 22.6 |
| Total revenue | 1,238,325 | 982,687 | 255,638 | 26.0 |
| Change in fair value | (522,268) | (397,412) | (124,856) | 31.4 |
| Net revenue | $716,057 | $585,275 | $130,782 | 22.3% |
| **Revenue by product (% to total):** |  |  |  |  |
| Consumer loans and finance receivables revenue | 59.1% | 59.3% |  |  |
| Small business loans and finance receivables revenue | 39.5 | 39.2 |  |  |
| Total loans and finance receivables revenue | 98.6 | 98.5 |  |  |
| Other | 1.4 | 1.5 |  |  |
| Total revenue | 100.0 | 100.0 |  |  |
| Change in fair value | (42.2) | (40.4) |  |  |
| Net revenue | 57.8% | 59.6% |  |  |

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):

|  | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Loan interest | $805,255 | $693,488 |
| Statement and draw fees on line of credit accounts | 360,427 | 211,057 |
| Other | 72,643 | 78,142 |
| Total Revenue | $1,238,325 | $982,687 |

### Average Loan and Finance Receivable Origination

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:

| Average loan and finance receivable origination amount(a) | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Consumer loans and finance receivables(b)(c) | $556 | $591 |
| Small business loans and finance receivables(c) | 15,823 | 16,310 |
| Total loans and finance receivables(b) | 1,590 | 1,722 |

*(a) The disclosure regarding the average loan origination amount is statistical data that is not included in our consolidated financial statements.*

*(b) Includes loans guaranteed by us, which represent loans originated by third-party lenders through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.*

*(c) Represents the average amount of each incremental draw on line of credit accounts.*

The average loan and finance receivable origination amount decreased to $1,590 from $1,722 during the current six-month period compared to the prior year six-month period, due primarily to a mix shift to line of credit accounts, which generally have lower average draw amounts compared to installment loan originations.

### Total Operating Expenses

Total operating expenses increased $75.8 million, or 20.8%, to $440.2 million in the current six-month period, compared to $364.4 million in the prior year six-month period.

Marketing expense increased to $231.3 million in the current six-month period compared to $175.7 million in the prior year six-month period. The increase was due primarily to growth in the overall business with higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products and higher commissionable originations in our small business portfolio.

Operations and technology expense increased to $109.3 million in the current six-month period compared to $96.1 million in the prior year six-month period, due primarily to higher variable costs, particularly personnel, collection, and underwriting costs, due to the increase in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased to 8.8% in the current six-month period from 9.8% in the prior year six-month period, as increased originations and revenues outpaced fixed costs.

General and administrative expense increased $6.2 million, or 8.4%, to $79.6 million in the current six-month period compared to $73.4 million in the prior year six-month period, due primarily to higher personnel costs, partially offset by lower legal and consulting costs. As a percentage of revenue, general and administrative expense decreased to 6.4% in the current six-month period from 7.5% in the prior year six-month period, as increased originations and revenues outpaced fixed costs.

Depreciation and amortization expense increased $0.8 million or 4.2% compared to the prior year six-month period driven primarily by general growth in the business and additional internal-use software placed in service.

### Nonoperating Items

Interest expense, net increased $47.6 million, or 53.6%, to $136.5 million in the current six-month period compared to $88.9 million in the prior year six-month period. The increase was due primarily to an increase of $726.6 million in the average amount of debt outstanding to $3,000.7 million during the current six-month period from $2,274.1 million during the prior year six-month period, and an increase in the weighted average interest rate on our outstanding debt to 9.26% during the current six-month period from 8.00% during the prior year six-month period.

### Provision for Income Taxes

The effective tax rate of 26.0% in the current six-month period was higher compared to the effective tax rate of 24.0% in the prior year six-month period. The increase is primarily attributable to additional interest expense on unrecognized tax benefits and a remeasurement of the net deferred tax liability due to state rate adjustments.

### Net Income

Net income increased $3.2 million, or 3.3%, to $102.3 million during the current six-month period compared to $99.1 million during the prior year six-month period. The increase was due primarily to an increase in income from operations due primarily to overall growth in the business driving an increase in net revenue and lower operating expenses as a percentage of revenue, partially offset by higher interest expense as a result of an increase in the average amount of debt outstanding and an increase in the weighted average interest rate on our outstanding debt.

### LIQUIDITY AND CAPITAL RESOURCES

### Capital Funding Strategy

We seek to maintain a stable and flexible balance sheet to ensure that liquidity and funding are available to meet our business obligations. As of June 30, 2024, we had cash, cash equivalents, and restricted cash of $271.3 million, of which $211.2 million was restricted, compared to $377.4 million, of which $323.1 million was restricted, as of December 31, 2023. During the six months ended June 30, 2024, we issued $217.2 million of asset-backed notes and entered into a $150.0 million consumer loan securitization facility to fund our growth in our near-prime consumer loan business and issued $399.6 million of asset-backed notes to fund our growth in our small business loan business. As of June 30, 2024, we had funding capacity of $610.8 million. Based on numerous stressed-case modeling scenarios, we believe we have sufficient liquidity to run our operations for the foreseeable future. Further, we have no recourse debt obligations due until September 2025. As part of our capital and liquidity management, we may from time to time acquire our outstanding debt securities, including through redemptions, tender offers, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws and in compliance with the indentures governing our outstanding debt securities, upon such terms and at such prices as we may determine.

Historically, we have generated significant cash flow through normal operating activities for funding both long-term and short-term needs. Our near-term liquidity is managed to ensure that adequate resources are available to fund our seasonal working capital growth, which is driven by demand for our loan and financing products. On September 19, 2018, we issued and sold $375.0 million in aggregate principal amount of 8.50% senior notes due 2025 (the “2025 Senior Notes”) and used the net proceeds, in part, to retire existing indebtedness. On December 6, 2023, we issued and sold $400.0 million in aggregate principal amount of 11.25% Senior Notes due 2028 (the “2028 Senior Notes”) and used the net proceeds, in part, to retire existing indebtedness, including the remaining principal amount outstanding under our 8.50% senior notes due 2024 (the “2024 Senior Notes”).

On June 23, 2022, we entered into an amendment and restatement of our existing secured revolving credit agreement (as amended, the “Credit Agreement”) that, among other changes, increased the borrowing capacity to $440.0 million, with a $20.0 million letter of credit sublimit and $10.0 million swingline loan sublimit. On October 19, 2023, we amended the Credit Agreement to, among other changes, increase the total commitment amount from $440.0 million to $515.0 million. The Credit Agreement bears interest, at our option, at the base rate plus 0.75% or the Secured Overnight Financing Rate plus 3.50%. In addition to customary fees for a credit facility of this size and type, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the commitment, and ranges from 0.15% per annum to 0.50% per annum depending on usage. The Credit Agreement contains certain prepayment penalties if it is terminated on or before the first and second anniversary dates, subject to certain exceptions. The Credit Agreement matures on June 30, 2026. As of July 22, 2024, our available borrowings under the Credit Agreement were $81.4 million. Since 2016, we have entered into several loan securitization facilities and offered asset-backed notes to fund our growth, primarily in our near-prime consumer installment loan and small business loan businesses. As of July 22, 2024, we had funding capacity of $482.4 million. We expect that our operating needs, including satisfying our obligations under our debt agreements and funding our working capital growth, will be satisfied by a combination of cash flows from operations, borrowings under the Credit Agreement, or any refinancing, replacement thereof or increase in borrowings thereunder, and securitization or sale of loans and finance receivables under our consumer and small business loan securitization facilities.

As of June 30, 2024, we were in compliance with all financial ratios, covenants and other requirements set forth in our debt agreements. Unexpected changes in our financial condition or other unforeseen factors may result in our inability to obtain third-party financing or could increase our borrowing costs in the future. To the extent we experience short-term or long-term funding disruptions, we have the ability to adjust our volume of lending and financing to consumers and small businesses that would reduce cash outflow requirements while increasing cash inflows through repayments. Additional alternatives may include the securitization or sale of assets, increased borrowings under the Credit Agreement, or any refinancing or replacement thereof, and reductions in capital spending, which could be expected to generate additional liquidity.

### Capital

Total stockholders’ equity decreased by $92.7 million to $1,147.5 million at June 30, 2024 from $1,240.2 million at December 31, 2023. The decrease of stockholders’ equity was driven primarily by repurchases of our outstanding common stock, which is discussed in more detail below, partially offset by net income for the six months ended June 30, 2024 and, to a lesser extent, stock-based compensation expense. Our book value per share outstanding increased to $43.31 at June 30, 2024 from $42.63 at December 31, 2023, which was primarily driven by net income, partially offset by share repurchases.

On November 7, 2022, we announced the Board of Directors authorized an increase to our share repurchase program of up to $150.0 million through December 31, 2023 (the “November 2022 Authorization”). The November 2022 Authorization went into effect in March 2023 upon exhaustion of our previous authorization. On October 24, 2023, we announced the Board of Directors authorized a new share repurchase program totaling $300.0 million through December 31, 2024. The new program replaced the November 2022 Authorization. The Company repurchased $91.5 million of common stock under the November 2022 Authorization before it was terminated. Repurchases under our repurchase program will be made in accordance with applicable securities laws from time to time in the open market, through privately negotiated transactions or otherwise. The share repurchase program does not obligate us to purchase any shares of our common stock. The authorization for the share repurchase program may be terminated, increased or decreased by the Board of Directors in its discretion at any time. During the six months ended June 30, 2024, we had $200.8 million in repurchases of common stock under our share repurchase program.

### Cash

Our cash and cash equivalents are held primarily for working capital purposes and are used to fund a portion of our lending activities. From time to time, we use excess cash and cash equivalents to fund our lending activities. We do not enter into investments for trading or speculative purposes. Our policy is to invest cash in excess of our immediate working capital requirements in short-term investments, deposit accounts or other arrangements designed to preserve the principal balance and maintain adequate liquidity. Our excess cash may be invested primarily in overnight sweep accounts, money market instruments or similar arrangements that provide competitive returns consistent with our polices and market conditions.

Our restricted cash typically consists of funds held in accounts as reserves on certain debt facilities and as collateral for issuing bank partner transactions. We have no ability to draw on such funds as long as they remain restricted under the applicable arrangements but have the ability to use these funds to finance loan originations, subject to meeting borrowing base requirements. Our policy is to invest restricted cash held in debt facility related accounts, to the extent permitted by such debt facility, in investments designed to preserve the principal balance and provide liquidity. Accordingly, such cash is invested primarily in money market instruments that offer daily purchase and redemption and provide competitive returns consistent with our policies and market conditions. As of December 31, 2023, restricted cash also included $173.6 million in escrow related to the redemption of our 2024 Senior Notes on January 3, 2024.

### Current Debt Facilities

The following table summarizes our debt facilities as of June 30, 2024 (dollars in thousands).

| Funding Debt: | Revolving period end date | Maturity date | Weighted average interest rate(a) | Borrowing capacity |  | Principal outstanding |
| --- | --- | --- | ---: | ---: | --- | ---: |
| 2018-1 Securitization Facility | March 2025 | March 2026 | 9.58% | $200,000 |  | $— |
| NCR 2022 Securitization Facility | October 2024 | October 2026 | 10.09% | 125,000 |  | 84,927 |
| NCLOCR 2024 Securitization Facility | February 2027 | February 2028 | 10.84% | 150,000 |  | 75,000 |
| ODR 2021-1 Securitization Facility | November 2025 | November 2026 | 8.91% | 233,333 |  | 194,330 |
| ODR 2022-1 Securitization Facility | June 2026 | June 2027 | 9.04% | 420,000 |  | 258,668 |
| RAOD Securitization Facility | November 2024 | November 2025 | 8.13% | 230,263 |  | 230,263 |
| HWCR 2023 Securitization Facility | May 2025 | May 2026 | 9.66% | 287,214 |  | 287,214 |
| 2023-A Securitization Notes | — | December 2027 | 7.78% | 50,989 |  | 50,989 |
| 2024-A Securitization Notes | — | October 2030 | 7.61% | 217,181 |  | 217,181 |
| ODAS IV 2023-1 Securitization Notes | July 2026 | August 2030 | 7.66% | 227,051 |  | 227,051 |
| ODAS IV 2024-1 Securitization Notes | May 2027 | June 2031 | 6.84% | 399,574 |  | 399,574 |
| Total funding debt |  |  | 8.35% | $2,540,605 |  | $2,025,197 |
| **Corporate Debt:** |  |  |  |  |  |  |
| 11.25% senior notes due 2028 | — | December 2028 | 11.25% | $400,000 |  | $400,000 |
| 8.50% senior notes due 2025 | — | September 2025 | 8.50% | 375,000 |  | 375,000 |
| Revolving line of credit | June 2026 | June 2026 | 8.86% | 515,000 | (b) | 419,000 |
| Total corporate debt |  |  | 9.55% | $1,290,000 |  | $1,194,000 |

*(a) The weighted average interest rate is determined based on the rates and principal balances on June 30, 2024. It does not include the impact of the amortization of deferred loan origination costs or debt discounts.*

*(b) We had an outstanding letter of credit under the Revolving line of credit of $0.7 million as of June 30, 2024.*

Our ability to fully utilize the available capacity of our debt facilities may also be impacted by provisions that limit concentration risk and eligibility.

### Cash Flows

Our cash flows and other key indicators of liquidity are summarized as follows (dollars in thousands):

|  | Six Months Ended June 30, 2024 | 2023 |
| --- | ---: | ---: |
| Total cash flows provided by operating activities | $709,505 | $581,339 |
| Cash flows used in investing activities |  |  |
| Loans and finance receivables | (827,638) | (462,829) |
| Capitalization of software development costs and purchases of fixed assets | (22,312) | (20,648) |
| Total cash flows used in investing activities | (849,950) | (483,477) |
| Cash flows provided by (used in) financing activities | $35,159 | $(15,069) |

### Cash Flows from Operating Activities

Net cash provided by operating activities increased $128.2 million, or 22.0%, to $709.5 million in the current six-month period from $581.3 million for the prior year six-month period. The increase was driven primarily by additional interest and fee income from growth in the loan portfolio.

We believe cash flows from operations and available cash balances and borrowings under our loan securitization facilities and Credit Agreement, which may include increased borrowings under our Credit Agreement, any refinancing or replacement thereof, and additional securitization of loans, will be sufficient to fund our future operating liquidity needs, including to fund our working capital growth.

### Cash Flows from Investing Activities

Net cash used in investing activities was $850.0 million for the current six-month period compared to $483.5 million for the prior year six-month period. This change was due primarily to loan originations outpacing repayments by a wider margin in the current six-month period compared to the prior year six-month period.

### Cash Flows from Financing Activities

Cash flows provided by financing activities for the current six-month period were driven primarily by $357.9 million in net borrowings under our securitization facilities and $63.0 million in net borrowings under our revolving line of credit, partially offset by $214.7 million in share repurchases and $168.7 million in repayments to extinguish the remaining balance of our 2024 Senior Notes. Cash flows used in financing activities for the prior year six-month period were driven primarily by $69.5 million in repayments of our 2024 Senior Notes, $50.1 million in share repurchases and $43.0 million in net payments under our revolving line of credit, partially offset by $150.1 million in net borrowings under our securitization facilities.

### CRITICAL ACCOUNTING ESTIMATES

There have been no material changes to the information on critical accounting estimates described in our Annual Report on Form 10‑K for the year ended December 31, 2023.

### RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

See Note 1 in the Notes to Consolidated Financial Statements included in this report for a discussion of recent accounting pronouncements that may be significant to Enova.

## Market risk

As filed, 214 characters.

There have been no material changes in our exposure to market risk since the most recent fiscal year end. Refer to our market risk disclosures in our Annual Report on Form 10‑K for the year ended December 31, 2023.

## Controls and procedures

As filed, 1,482 characters.

### Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, or the “Exchange Act”) as of June 30, 2024 (the “Evaluation Date”). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective and provide reasonable assurance (i) to ensure that information required to be disclosed in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms; and (ii) to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

### Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting during the quarter ended June 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 173 characters.

There have been no material changes from the Risk Factors described in Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Filed Jul 24, 2024.
Source: SEC EDGAR, the filing index for accession 0000950170-24-086053. Last ingested by Listed: Nov 2, 2026, 18:27 ET. No prices; not investment advice.