Atlanticus Holdings (ATLC) risk factors, FY2025 10-K

Atlanticus Holdings's FY2025 10-K, filed Mar 12, 2026, lists 18 risk factors in 2 groups. Against the prior year's 15: 5 new, 2 dropped, 4 substantially reworded.

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Risk factors listed
182 groups
New this year
5vs 15 last year
Dropped
2since the prior 10-K
Substantially reworded
4of those kept
Section length
15k wordsItem 1A

What the changes say

  • Atlanticus Holdings added execution risks from the Mercury acquisition and rising inflation impacts on consumer credit.
  • Regulatory scrutiny on credit products and debtor relief laws expanded.
  • Cybersecurity and data privacy risk language shifted to model design and quantitative flaws.

What changed since the prior 10-K

New

  • New

    some credit products and services could be banned in certain states or at the federal level;

    Banned credit products, expanded debtor relief laws, or restrictions on military loans could hurt our operations.

  • New

    Failure to realize the expected benefits of our acquisition of Mercury could adversely affect our business and the value of our securities

    Integrating the Mercury acquisition is complex and we may fail to realize its expected benefits.

  • New

    integrating employees and related human resource systems and benefits, maintaining employee morale and retaining key employees

    Retaining key Mercury employees and maintaining morale during integration requires significant management attention.

  • NewRisks Related to Our Financial Reporting and Accounting

    increase our vulnerability to general adverse economic and industry conditions; and

    High debt levels increase vulnerability to economic downturns and place us at a disadvantage against less-leveraged competitors.

  • NewRisks Related to Our Financial Reporting and Accounting

    Any of the foregoing impacts of our level of indebtedness could have a material adverse effect on our business, financial condition and results of operations

    Inflation and Federal Reserve interest rate hikes reduce consumer spending power and increase defaults, delinquencies, and charge-offs.

Dropped

  • DroppedRisks Relating to an Investment in Our Securities

    global pandemics (such as the COVID-19 pandemic)

  • DroppedRisks Relating to an Investment in Our Securities

    it may make us more vulnerable to downturns in our business, our industry or the economy in general

Reworded

  • 70% rewrittenRisks Related to Our Financial Reporting and Accounting

    We operate in a highly competitive industry, and our inability to compete successfully would materially and adversely affect our business, results of operations, financial condition, and future prospects

    Minor punctuation and semicolon formatting changes with no substantive alterations to the competitive landscape description.

  • 48% rewritten

    We Operate in a Heavily Regulated Industry

    Added federal consumer protection laws alongside state and bankruptcy laws as potential regulatory exposures.

  • 40% rewrittenRisks Relating to an Investment in Our Securities

    Our obligations to the holders of Series A preferred stock and Series B preferred stock also could limit our ability to obtain additional financing or increase our borrowing costs, which could have an adverse effect on our financial condition and the value of our common stock

    No substantive changes were made to the text regarding Series A preferred stock anti-dilution provisions.

  • 27% rewrittenRisks Related to Our Financial Reporting and Accounting

    Also, a party that is able to circumvent our security measures could misappropriate proprietary information, cause interruption in our operations, damage our computers or those of our users, or otherwise damage our reputation and business

    Replaced the entire risk text about privacy regulations and the California Consumer Privacy Act with a new disclosure regarding risks from flawed quantitative models.

All 18 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Our Cash Flows and Net Income Are Dependent Upon Payments from Our Investments in Receivables
  2. 02We Are Substantially Dependent Upon Borrowed Funds to Fund Receivables We Purchase
  3. 03If additional financing facilities are not available in the future on terms we consider acceptable, we will not be able to purchase additional receivables and those receivables may contract in size
  4. 04Our Financial Performance Is, in Part, a Function of the Aggregate Amount of Receivables That Are Outstanding
  5. 05We Operate in a Heavily Regulated Industry48% rewritten
  6. 06some credit products and services could be banned in certain states or at the federal level;New
  7. 07Our Automobile Lending Activities Involve Risks in Addition to Others Described Herein
  8. 08We Routinely Explore Various Opportunities to Grow Our Business, to Make Investments and to Purchase and Sell Assets
  9. 09Failure to realize the expected benefits of our acquisition of Mercury could adversely affect our business and the value of our securitiesNew
  10. 10integrating employees and related human resource systems and benefits, maintaining employee morale and retaining key employeesNew

Risks Related to Our Financial Reporting and Accounting

  1. 11Other Risks of Our Business
  2. 12We operate in a highly competitive industry, and our inability to compete successfully would materially and adversely affect our business, results of operations, financial condition, and future prospects70% rewritten
  3. 13increase our vulnerability to general adverse economic and industry conditions; andNew
  4. 14Any of the foregoing impacts of our level of indebtedness could have a material adverse effect on our business, financial condition and results of operationsNew
  5. 15Also, a party that is able to circumvent our security measures could misappropriate proprietary information, cause interruption in our operations, damage our computers or those of our users, or otherwise damage our reputation and business27% rewritten

Risks Relating to an Investment in Our Securities

  1. 16In addition, the stock markets from time to time experience extreme price and volume fluctuations that may be unrelated or disproportionate to the operating performance of companies. These broad fluctuations may adversely affect the trading prices of our securities, regardless of our actual operating performance
  2. 17Our obligations to the holders of Series A preferred stock and Series B preferred stock also could limit our ability to obtain additional financing or increase our borrowing costs, which could have an adverse effect on our financial condition and the value of our common stock40% rewritten
  3. 18Note Regarding Risk Factors

Other Atlanticus Holdings 10-Ks

  • FY2024 10-K risk factors
    56 risks

    Collecting less-than-prime receivables and securing borrowed funding dominate the company’s financial risks.

    Filed Mar 13, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.