Company: ATLCL
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001437749-25-033947
Chunk: 98

Company: Atlanticus Holdings Corp
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 98
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 associated with our acquisition of Mercury (and related severance costs) which totaled $6.8 million for the three and nine months ended September 30, 2025. 

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      During the nine months ended September 30, 2025, we used $1,027.3 million of cash from our investing activities, compared to the use of $571.0 million of cash from investing activities during the nine months ended September 30, 2024. This increase in cash used is primarily due to marginal increases in the level of net investments in private label credit and general purpose credit card receivables relative to the same period in 2024. For the nine months ended September 30, 2025, we purchased $2,678.8 million in private label and general purpose credit card receivables compared to $2,002.0 million for the nine months ended September 30, 2024. Adding to this use of cash was the acquisition of Mercury which used net, $72.9 million ($166.5 million cash purchase price less $93.6 million of cash acquired as part of the acquisition). Slightly offsetting this increase in cash used in operations were increased recoveries associated with the sale of charged off receivables due to increases in the contractual purchase rates we receive from third parties. As we continue to grow our receivables base, we would expect for purchases of new receivables to outpace payments thereon throughout 2025. 

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      During the nine months ended September 30, 2025, we generated $681.9 million of cash from financing activities, compared to our generating $225.3 million of cash from financing activities during the nine months ended September 30, 2024. The increase in cash provided by financing activities is primarily due to the issuance $400.0 million aggregate principal amount of 9.750% Senior Notes due 2030 as well as an increase in net borrowings (proceeds from borrowings less repayment of borrowings) of $161.3 million. Additionally, we received proceeds from the issuance of 200,000 shares of common stock for net proceeds of $11.6 million in the first nine months of 2025. This increase was offset by the redemption of the remaining 50.0 million of Class B preferred units at $1.00 per unit plus accrued but unpaid interest thereon during the nine months ended September