ENOVA INTERNATIONAL, INC. DISCUSSION AND ANALYSIS OF MANAGEMENT’S FINANCIAL POSITION AND RESULTS (Form 10-Q)


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, 2021. 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 2021, we extended approximately $3.1 billion in credit or
financing to borrowers and for the three months ended March 31, 2022, we
extended approximately $1.0 billion in credit or financing to borrowers. As of
March 31, 2022, we offered or arranged loans or draws on lines of credit to
consumers in 38 states in the United States and Brazil. We also offered
financing to small businesses in all 50 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 March 31, 2022, we have completed approximately 56.0 million customer
transactions and collected more than 61 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 receivables purchase agreements ("RPAs") 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 more than 17 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 platform allows us to process and complete
customers' transactions quickly and efficiently. In 2021, we processed
approximately 2.2 million transactions, and we continue to grow our loans and
finance receivable portfolios and increase the number of customers we serve
through desktop, tablet and mobile platforms. Our highly customizable technology
platform allows us to efficiently develop and deploy new products to adapt to
evolving regulatory requirements and consumer preference, and to enter new
markets quickly. In 2012, we launched a new product in the United States
designed to serve near-prime customers. In June 2014, we launched our business
in Brazil, where we arrange financing for borrowers through a third-party
lender. In addition, in July 2014, we introduced a new line of credit product in
the United States to serve the needs of small businesses. In June 2015, we
further expanded our product offering by acquiring certain assets of a company
that provides financing and installment loans to small businesses by offering
RPAs. 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,
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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, interest and/or revenue on the receivables purchased. We
originate, arrange, guarantee or purchase installment loans, line of credit
accounts and receivables purchase agreements ("RPAs") to consumers and small
businesses. We have one reportable segment that includes all of our online
financial services.

Installment loans. Installment loans include longer-term loans that require the
outstanding principal balance to be paid down in multiple installments and
shorter-term single payment loans. Our installment loans are either written
directly by us, purchased as part of our Banking Programs as discussed below, or
are those that we arrange and guarantee as part of our credit services
organization and credit access business programs, which we refer to as our CSO
programs. We offer, or arrange through CSO programs, multi- or single-payment
unsecured consumer loan products in 38 states in the United States and small
business installment loans in 47 states and in Washington D.C. Internationally,
we also offer or arrange multi-payment unsecured consumer installment loan
products in Brazil and small business installment loan products through
affiliates in Australia and Canada. Terms for our installment loan products
range between two and 60 months, and single-pay consumer loans generally have
terms of seven to 90 days. Loans may be repaid early at any time with no
additional prepayment charges.

Line of credit accounts. We directly offer, or purchase a participation interest
in receivables through our Bank Programs, new consumer line of credit accounts
in 30 states (and continue to service existing line of credit accounts in two
additional states) in the United States and business line of credit accounts in
47 states and in Washington D.C. in the United States, which allow customers to
draw on their unsecured line of credit in increments of their choosing up to
their credit limit. 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. We also offer small business line of credit accounts in
Canada. As long as the customer's account is in good standing and has credit
available, customers may continue to borrow on their line of credit.

Receivables purchase agreements. Under RPAs, small businesses receive funds in
exchange for a portion of the business's future receivables at an agreed upon
discount. In contrast, lending is a commitment to repay principal and interest
and/or fees. A small business customer who enters into an RPA commits to
delivering a percentage of its receivables through ACH or wire debits or by
splitting credit card receipts until all purchased receivables are delivered. We
offer RPAs in all 50 states and in Washington D.C. in the United States.

CSO programs. We currently operate a CSO program in Texas. Through CSO programs,
we provide services related to third-party lenders' multi- and single-pay
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 independent third-party lenders 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, each 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
specific single-payment loans, which for our CSO program, have terms of less
than 90 days, and specific installment loans, which have terms of up to six
months, if they go into default.

Bank program. We operate a program with a bank to provide marketing services and
loan servicing for near-prime unsecured consumer installment loans and,
beginning in January 2021, line of credit accounts. Under the program, we
receive marketing and servicing fees while the bank receives an origination fee.
The bank has the ability to sell and we have the option, but not the
requirement, to purchase the loans the bank originates and, in the case of line
of credit accounts, a participation interest in the receivables from draws on
those accounts. We do not guarantee the performance of the loans and line of
credit accounts originated by the bank. As part of the OnDeck business both
prior and subsequent to Enova's acquisition, OnDeck operates a program with
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a separate bank to provide marketing services and loan servicing for small
business installment loans and line of credit accounts. Under the OnDeck
program, 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 offer our services in the following countries:

United States. We began our online business in the United States in May 2004. As
of March 31, 2022, 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, The Business Backer at www.businessbacker.com, and
Pangea at www.pangeamoneytransfer.com.

Brazil. In June 2014we started our business in Brazil under the name Simplic at www.simplic.com.br, where we arrange installment loans for a third-party lender. We plan to continue investing in and growing our financial services program Brazil.

Australia. As part of our acquisition of OnDeck in October 2020, we offer
installment loans to small businesses in Australia through an entity that was a
majority-owned subsidiary until we sold a portion of our interest in December
2021. Subsequent to the partial divestiture, we classify the affiliate as an
equity method investment.

Canada. As part of our acquisition of OnDeck in October 2020we offer installment loans and framework credit accounts to small companies in Germany Canada
through an affiliate that we classify as an equity method investment.

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

Consumer Financial Protection Agency (“CFPB”)

We received a Civil Investigative Demand ("CID") from the CFPB concerning
certain loan processing issues. We have been cooperating fully with the CFPB by
providing data and information in response to the CID. We anticipate being able
to expeditiously complete the investigation as several of the issues were
self­disclosed and we have provided, and will continue to provide, restitution
to customers who may have been negatively impacted.

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 loans that we offer. The Small Dollar Rule requires that lenders
who make short-term loans and longer-term loans with balloon payments reasonably
determine consumers' ability to repay the loans according to their terms before
issuing the loans. The Small Dollar Rule also introduces 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 June 7, 2019, the CFPB
issued a final rule to set the compliance date for the mandatory underwriting
provisions of the Small Dollar Rule to November 19, 2020. On July 7, 2020, the
CFPB issued a final rule rescinding the ability to repay ("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, but remain
stayed indefinitely by the United States Court of Appeals for the Fifth Circuit,
which is hearing an appeal from the plaintiff on a constitutional challenge to
the Small Dollar Rule. On October 14, 2021, the Fifth Circuit ruled that the
Small Dollar Rule will not take effect until 286 days after the Fifth Circuit
rules on the appeal. 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.
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New Mexico HB 132

On February 15, 2022, the New Mexico Legislature passed HB 132. The bill imposes
a 36% rate cap on loans up to $10,000. Additionally, HB 132 provides for the
application of 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 36%
rate cap. The New Mexico Governor signed the bill into law on March 1, 2022. The
law will take effect on January 1, 2023.

RESULTS

COVID-19

The COVID-19 pandemic has severely impacted global economic conditions,
resulting in substantial volatility in the financial markets, increased
unemployment, and operational challenges resulting from measures that
governments have imposed to control its spread. We have implemented a number of
procedures in response to the pandemic to support the safety and well-being of
our employees, customers and stockholders that continue through the date of this
report:

As shelter-in-place orders and general distancing guidelines were released, we
moved quickly to transition virtually all of our employees to a remote work
environment. As COVID-19 cases declined, we reopened our offices to allow
eligible employees to return to work in an office environment on a voluntary
basis. We plan to transition to a hybrid work model where employees work a
portion of the week in the office and have the option to work remotely for the
remaining days. Certain eligible positions may work partially or fully remote.
Appropriate safety measures continue to be followed to protect employees working
on site. We will continue to follow government mandates and adjust when
appropriate to prioritize employee safety.

We have actively worked with our customers to understand their financial situation, waive late fees, offer a variety of repayment options to increase flexibility, and reduce or defer payments for impacted customers.

We took measures to adjust our underwriting procedures, which reduced exposure
to more heavily impacted consumers and businesses. We adjusted loan and draw
sizes as well as shortened duration in an effort to reduce risk in this volatile
environment. Certain of these measures have eased since the height of the
pandemic, with improvement of economic conditions and our outlook.

From a loan valuation perspective, at the onset of the COVID-19 pandemic, we
deemed it appropriate to increase the discount rates used in our
internally-developed valuation models, thereby lowering loan fair values, to
capture the increase in potential volatility in expected cash flows due to the
unprecedented nature of the pandemic and governmental response. These rates
remained consistent for the remainder of 2020. Over the course of 2021, we noted
a tightening of credit spreads in observable pricing in the market; as such, we
reduced the discount rates used in our valuations. As of December 31, 2021, our
discount rates had generally returned to the levels utilized immediately prior
to the pandemic. As of March 31, 2022, we increased our discount rates based
primarily on movements in the market during the quarter. We believe the
adjustments to our discount rates to be responsive to changes in the market and
representative of what a market participant would use.

After seeing increases in delinquency and charge-offs early in the pandemic, we
experienced significant improvements to these metrics over the remainder of 2020
and into 2021. The U.S. government provided multiple rounds of stimulus
assistance to taxpayers and businesses. Positive COVID-19 test counts in the
U.S. generally decreased across the first half of 2021 although rose again in
the second half of 2021 with the spread of the Delta and Omicron variants. In
certain situations, management concluded that the probability of future
charge-offs was higher than what we had experienced in the past and, therefore,
increased anticipated charge-offs in our fair value models. As of March 31,
2022, we continue to utilize this approach and have adjusted charge-off
expectations where appropriate. We deemed the resulting fair value to be an
appropriate market-based exit price that considers current market conditions at
March 31, 2022.

We continue to monitor this pandemic closely and expect to make changes in the future to respond to the evolving situation.

HIGHLIGHTS

Our financial results for the past three months March 31, 2022or the current quarter, are summarized below.

Consolidated total revenue increased $126.3 million, or 48.7%, to $385.7 million
in the current quarter compared to $259.4 million for the three months ended
March 31, 2021, or the prior year quarter.

The consolidated net sales were $268.7 million compared to $238.4 million in the prior-year quarter.

Consolidated income from operations decreased $32.7 million, or 26.5%, to $90.8
million in the current quarter, compared to $123.5 million in the prior year
quarter.

Consolidated net income was $52.4 million in the current quarter compared to
$75.9 million in the prior year quarter. Consolidated diluted income per share
was $1.50 in the current quarter compared to $2.03 in the prior year quarter.
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OVERVIEW

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

                                                               Three Months Ended March 31,
                                                                2022                  2021
Revenue
Loans and finance receivables revenue                      $       381,141       $      257,297
Other                                                                4,590                2,147
Total Revenue                                                      385,731              259,444
Change in Fair Value                                              (117,042 )            (21,078 )
Net Revenue                                                        268,689              238,366
Operating Expenses
Marketing                                                           93,171               28,568
Operations and technology                                           40,730               35,627
General and administrative                                          34,528               44,089
Depreciation and amortization                                        9,514                6,627
Total Operating Expenses                                           177,943              114,911
Income from Operations                                              90,746              123,455
Interest expense, net                                              (22,483 )            (19,914 )
Foreign currency transaction loss                                     (314 )                (34 )
Equity method investment income                                        328                  558
Other nonoperating expenses                                              -                 (378 )
Income before Income Taxes                                          68,277              103,687
Provision for income taxes                                          15,834               27,716
Net income before noncontrolling interest                           52,443               75,971
Less: Net income attributable to noncontrolling interest                 -                   51

Net Income Attributable Enova International, Inc. $52,443

      $       75,920
Earnings per common share - diluted                        $          1.50  

$2.03

revenue

Loans and finance receivables revenue                                 98.8 %               99.2 %
Other                                                                  1.2                  0.8
Total Revenue                                                        100.0                100.0
Change in Fair Value                                                 (30.3 )               (8.1 )
Net Revenue                                                           69.7                 91.9
Expenses
Marketing                                                             24.2                 11.0
Operations and technology                                             10.6                 13.7
General and administrative                                             8.9                 17.0
Depreciation and amortization                                          2.5                  2.6
Total Expenses                                                        46.2                 44.3
Income from Operations                                                23.5                 47.6
Interest expense, net                                                 (5.8 )               (7.7 )
Foreign currency transaction loss                                     (0.1 )                  -
Equity method investment income                                        0.1                  0.2
Other nonoperating expenses                                              -                 (0.1 )
Income before Income Taxes                                            17.7                 40.0
Provision for income taxes                                             4.1                 10.7
Net income before noncontrolling interest                             13.6                 29.3
Less: Net income attributable to noncontrolling interest                 -                    -
Net income attributable to Enova International, Inc.                  13.6 %               29.3 %


NON-GAAP FINANCIAL MEASURES

In addition to the financial information prepared in conformity with generally
accepted accounting principles ("GAAP"), we provide historical non-GAAP
financial information. We believe that presentation of non-GAAP financial
information is meaningful and useful 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.
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Adjusted earnings figures

In addition to reporting financial results in accordance with GAAP, we have
provided 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 provides a more complete understanding of our
financial performance, competitive position and prospects for the future. We
also believe that investors regularly rely on non-GAAP financial measures, such
as the Adjusted Earnings Measures, to assess operating performance and 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 adjustments shown below are useful to investors in
order to allow them to compare our financial results during the periods shown
without the effect of each of these income or expense items.

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

                                         Three Months Ended
                                              March 31,
                                          2022          2021
Net income                             $   52,443     $ 75,920
Adjustments:
Transaction-related costs(a)                    -        1,412
Other nonoperating expenses(b)                  -          378
Intangible asset amortization               2,013        1,151
Stock-based compensation expense            5,367        5,804
Foreign currency transaction loss             314           34
Cumulative tax effect of adjustments       (1,927 )     (2,209 )
Adjusted earnings                      $   58,210     $ 82,490

Diluted earnings per share             $     1.50     $   2.03
Adjustments:
Transaction-related costs                       -         0.04
Other nonoperating expenses                     -         0.01
Intangible asset amortization                0.06         0.03
Stock-based compensation expense             0.15         0.15
Foreign currency transaction loss            0.01            -

Cumulative tax effect of adjustments (0.05 ) (0.06 ) Adjusted earnings per share

            $     1.67     $   2.20




(a) In the first quarter of 2021, we incurred expenses totaling $1.4 million
($1.1 million net of tax) related to acquisitions and a divestiture of a
subsidiary.
(b) In the first quarter of 2021, we recorded other nonoperating expenses of
$0.4 million ($0.3 million net of tax) related to early extinguishment of debt.

Adjusted EBITDA

The table below shows Adjusted EBITDA, which is a non-GAAP measure that we
define as earnings excluding depreciation, amortization, interest, foreign
currency transaction gains or losses, taxes and stock-based compensation
expense. We believe Adjusted EBITDA is used by investors to analyze operating
performance and evaluate our ability to incur and service debt and our capacity
for making capital expenditures. Adjusted EBITDA is also useful to investors to
help assess our estimated enterprise value. In addition, we believe that the
adjustments for transaction-related costs, lease termination and cease-use loss
(gain), other nonoperating expenses and equity method investment income shown
below are useful to investors in order to allow them to compare our financial
results during
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the periods shown without the effect of the income or expense items. 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
                                                          March 31,
                                                     2022          2021
Net income                                         $  52,443     $  75,920
Depreciation and amortization expenses(c)              9,514         6,621
Interest expense, net(c)                              22,483        19,755
Foreign currency transaction loss                        314            34
Provision for income taxes                            15,834        27,716
Stock-based compensation expense                       5,367         5,804

Setting:

Transaction-related costs(a)                               -         1,412
Other nonoperating expenses(b)                             -           378
Equity method investment income                         (328 )        (558 )
Adjusted EBITDA                                    $ 105,627     $ 137,082

Adjusted EBITDA margin calculated as follows:
Total Revenue                                      $ 385,731     $ 259,444
Adjusted EBITDA                                      105,627       137,082

Adjusted EBITDA as a percentage of total revenue 27.4% 52.8%




(a) In the first quarter of 2021, we incurred expenses totaling $1.4 million
related to acquisitions and a divestiture of a subsidiary.
(b) In the first quarter of 2021, we recorded other nonoperating expenses of
$0.4 million related to early extinguishment of debt.
(c) Excludes amounts attributable to noncontrolling interests.

Combined credit and receivables financing measures

In addition to reporting loans and finance receivables balance information in
accordance with GAAP (see Note 3 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 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 OVER MARCH 31, 2022 COMPARED TO THREE MONTHS ENDED MARCH 31, 2021

Sales and Net Sales

Revenue increased $126.3 million, or 48.7%, to $385.7 million for the current
quarter as compared to $259.4 million for the prior year quarter. The increase
was driven by a 75.5% increase in revenue from our small business portfolio and
a 36.8% increase in revenue from our consumer portfolio as higher levels of
originations in 2021 and into 2022 have led to higher loan balances for both
portfolios.

Net revenue for the current quarter was $268.7 million compared to $238.4
million for the prior year quarter. Our consolidated net revenue margin was
69.7% for the current quarter compared to 91.9% for the prior year quarter. The
net revenue margin in the prior year quarter was elevated due primarily to lower
delinquency rates and lower than expected charge-offs as a result of portfolio
seasoning and lower originations. With originations having increased across the
second half of 2021 and through March 31, 2022, the net revenue margin in the
current quarter was in a more normalized range.
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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):

                                              Three Months Ended March 31,
                                               2022                  2021          $ Change       % Change
Revenue by product:
Consumer loans and finance receivables
revenue                                   $       248,547       $      181,737     $  66,810           36.8 %
Small business loans and finance
receivables revenue                               132,594               75,560        57,034           75.5
Total loans and finance receivables
revenue                                           381,141              257,297       123,844           48.1
Other                                               4,590                2,147         2,443          113.8
Total revenue                                     385,731              259,444       126,287           48.7
Change in fair value                             (117,042 )            (21,078 )     (95,964 )        455.3
Net revenue                               $       268,689       $      238,366     $  30,323           12.7 %

Revenue by product (% to total):
Consumer loans and finance receivables
revenue                                              64.4 %               70.1 %
Small business loans and finance
receivables revenue                                  34.4                 

29.1

Total loans and finance receivables
revenue                                              98.8                 99.2
Other                                                 1.2                  0.8
Total revenue                                       100.0                100.0
Change in fair value                                (30.3 )               (8.1 )
Net revenue                                          69.7 %               91.9 %

Loan and Financial Receivable Balances

The fair value of our loan and finance receivable portfolio in our consolidated
financial statements was $2,231.9 million and $1,230.7 million as of March 31,
2022 and 2021, respectively. The outstanding principal balance of our loan and
finance receivables portfolio was $2,099.0 million and $1,219.8 million as of
March 31, 2022 and 2021, respectively. The fair value of the combined loan and
finance receivables portfolio includes $14.4 million and $7.2 million with an
outstanding principal balance of $10.0 million and $5.7 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 March 31, 2022 and 2021,
respectively.

Our small business portfolio of loans and finance receivables increased to 57.8%
of our combined loan and finance receivable portfolio at fair value as of March
31, 2022, compared to 52.5% as of March 31, 2021 due primarily to more
accelerated growth in the small business portfolio. The consumer portfolio
balance decreased to 42.2% of our combined loan and finance receivable portfolio
balance at fair value as of March 31, 2022, compared to 47.5% as of March 31,
2021. 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 the outstanding loan and finance receivables March 31, 2022 and 2021 (in thousands):

                                                 As of March 31, 2022                             As of March 31, 2021
                                                      Guaranteed                                       Guaranteed
                                       Company          by the                          Company          by the
                                      Owned(a)        Company(a)       Combined        Owned(a)        Company(a)      Combined(b)
Consumer loans and finance
receivables
Principal                            $   888,657     $     10,027     $   898,684     $   523,170     $      5,691     $    528,861
Fair value                               934,351           14,433         948,784         581,398            7,246          588,644
Fair value as a % of principal             105.1 %          143.9 %         105.6 %         111.1 %          127.3 %          111.3 %
Small business loans and finance
receivables
Principal                            $ 1,210,389     $          -     $ 1,210,389     $   696,678     $          -     $    696,678
Fair value                             1,297,533                -       1,297,533         649,313                -          649,313
Fair value as a % of principal             107.2 %              - %         107.2 %          93.2 %              - %           93.2 %
Total loans and finance
receivables
Principal                            $ 2,099,046     $     10,027     $ 2,109,073     $ 1,219,848     $      5,691     $  1,225,539
Fair value                             2,231,884           14,433       2,246,317       1,230,711            7,246        1,237,957
Fair value as a % of principal             106.3 %          143.9 %         106.5 %         100.9 %          127.3 %          101.0 %




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

At March 31, 2022 and 2021, the ratio of fair value as a percentage of principal
was 106.3% and 100.9%, respectively, on company owned loans and finance
receivables and 106.5% and 101.0%, respectively, on combined loans and finance
receivables. These ratios increased compared to the prior year due primarily to
lower delinquency rates and lower than expected charge-offs in the small
business
                                       26
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portfolio, partially offset by the impact of the acceleration of originations in
the consumer portfolio, particularly to new customers, which carry a higher risk
of charge-off.

Average outstanding amount per loan and financial 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 March 31, 2022
and 2021:

                                                                   As of March 31,
                                                                  2022         2021

Average Amount Outstanding per Loan and Financial Receivable(a) Consumer Loan and Financial Receivable(b)

                       $  2,037     $  1,843
Small business loans and finance receivables                      37,411    

29,433

Total loans and finance receivables(b)                          $  4,315     $  3,809




(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
third-party lenders through the CSO programs that we have not yet purchased and,
therefore, are not included in our consolidated financial statements.

The average outstanding amount per loan and financial receivable increased
$4,315 out of $3,809 during the current quarter compared to the same quarter last year, primarily due to an increase in the mix of loans and financial assets held by small companies in our portfolio, which are larger on average than our consumer portfolio.

Average credit and financial receivables 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:

                                                              Three Months Ended
                                                                   March 31,
                                                               2022          2021

Average Loan and Financial Receivable Amount (a) Consumer Loan and Financial Receivables(b)(c)

                $      660     $    491
Small business loans and finance receivables(c)                 17,257      

14,186

Total loans and finance receivables(b)                      $    1,686     $  1,273




(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 programs 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 increased to $1,686
from $1,273 during the current quarter compared to the prior year quarter, due
primarily to an increase in the mix of higher dollar amount loans and finance
receivables to small businesses.

creditworthiness of loans and financial 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):

                                       27
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                                                                 2021                                    2022
                                         First          Second           Third          Fourth           First
                                        Quarter         Quarter         Quarter         Quarter         Quarter
Ending combined loans and finance
receivables, including principal
and accrued fees/interest
outstanding:
Company owned                         $ 1,265,987     $ 1,416,533     $ 1,650,771     $ 1,944,263     $ 2,169,140
Guaranteed by the Company(a)                6,792           9,655          13,239          13,750          11,858
Ending combined loan and finance
receivables balance(b)                $ 1,272,779     $ 1,426,188     $ 1,664,010     $ 1,958,013     $ 2,180,998
> 30 days delinquent                       96,228          81,883          90,782         103,213         113,798
> 30 days delinquency rate                    7.6 %           5.7 %           5.5 %           5.3 %           5.2 %




(a) Represents loans originated by third-party lenders through the CSO programs
that we have not yet purchased, which are not included in our consolidated
balance sheets.
(b) Non-GAAP measure.

Consumer Loans and Financial 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):

                                                              2021                                2022
                                        First        Second         Third         Fourth         First
                                       Quarter       Quarter       Quarter       Quarter        Quarter
Consumer loans and finance
receivables:
Consumer combined loan and finance
receivable principal balance:
Company owned                         $ 523,170     $ 585,087     $ 709,781     $  867,751     $  888,657
Guaranteed by the Company(a)              5,691         8,284        11,354         11,790         10,027
Total combined loan and finance
receivable principal balance(b)       $ 528,861     $ 593,371     $ 721,135     $  879,541     $  898,684
Consumer combined loan and finance
receivable fair value balance:
Company owned                         $ 581,398     $ 623,975     $ 723,553     $  890,144     $  934,351
Guaranteed by the Company(a)              7,246        10,824        16,921         18,813         14,433
Ending combined loan and finance
receivable fair value balance(b)      $ 588,644     $ 634,799     $ 740,474     $  908,957     $  948,784
Fair value as a % of
principal(b)(c)                           111.3 %       107.0 %       102.7 %        103.3 %        105.6 %
Consumer combined loan and finance
receivable balance, including
principal and accrued fees/interest
outstanding:
Company owned                         $ 564,934     $ 630,203     $ 768,964     $  927,673     $  951,560
Guaranteed by the Company(a)              6,792         9,655        13,239         13,750         11,858
Ending combined loan and finance
receivable balance(b)                 $ 571,726     $ 639,858     $ 782,203     $  941,423     $  963,418
Average consumer combined loan and
finance receivable balance,
including principal and accrued
fees/interest outstanding:
Company owned(d)                      $ 598,900     $ 580,704     $ 702,818     $  836,147     $  953,108
Guaranteed by the Company(a)(d)           8,670         7,585        11,366         13,212         12,960
Average combined loan and finance
receivable balance(b)(d)              $ 607,570     $ 588,289     $ 714,184 

$849,359 $966,068

Revenue                               $ 181,737     $ 174,512     $ 215,432     $  243,570     $  248,547
Change in fair value                    (26,073 )     (49,708 )     (97,061 )     (104,715 )     (116,767 )
Net revenue                             155,664       124,804       118,371        138,855        131,780
Net revenue margin                         85.7 %        71.5 %        54.9 %         57.0 %         53.0 %

Delinquencies:
> 30 days delinquent                  $  24,589     $  26,201     $  45,804     $   59,312     $   70,480
> 30 days delinquent as a % of
combined loan and finance
receivable balance(b)(c)                    4.3 %         4.1 %         5.9 

% 6.3% 7.3%

Withdrawals:

Write-offs (less recoveries) $36,408 $27,050 $57,836

     $  112,582     $  137,224
Charge-offs (net of recoveries) as
a % of average combined loan and
finance receivable balance(b)(d)            6.0 %         4.6 %         8.1 %         13.3 %         14.2 %




(a) Represents loans originated by third-party lenders through the CSO programs
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 March 31, 2022 increased
68.5% to $963.4 million compared to $571.7 million at March 31, 2021, due
primarily to increased originations in 2021 and continuing into 2022 following
the strategic reduction in originations at the onset of the COVID-19 pandemic to
mitigate risks associated with the pandemic.
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The percentage of loans greater than 30 days delinquent increased to 7.3% at
March 31, 2022, compared to 4.3% at March 31, 2021. The increase was driven
primarily by growth in originations in the current year, particularly to new
customers, which typically default at a higher percentage than returning
customers.

Charge-offs (net of recoveries) as a percentage of average combined loan balance
increased to 14.2% for the current quarter, compared to 6.0% for the prior year
quarter, driven primarily by growth in originations, particularly to new
customers, which typically default at a higher percentage than returning
customers. In the prior year quarter, this charge-off rate was lower due
primarily to our having a more seasoned and lower risk portfolio remaining as
originations since the onset of the COVID-19 pandemic had been significantly
lower and the majority of higher risk loans to new customers originated in prior
quarters had been charged off.

The ratio of fair value as a percentage of principal on consumer loans and
finance receivables was 105.6% at March 31, 2022, compared to 111.3% at March
31, 2021 and 103.3% at December 31, 2021. The increase from December 31, 2021
was primarily driven by normal seasonality of the consumer portfolio, as loan
demand typically declines in the first quarter, which leads to a more seasoned
portfolio that carries a higher fair value as a percentage of principal. Refer
also to "Results of Operations-COVID-19" in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" for additional
discussion on loan valuation.

Small business loans and 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):

                                                              2021                                 2022
                                        First        Second         Third         Fourth           First
                                       Quarter       Quarter       Quarter        Quarter         Quarter
Small business loans and finance
receivables:
Total loan and finance receivable
principal balance                     $ 696,678     $ 781,793     $ 876,668     $ 1,010,675     $ 1,210,389
Ending loan and finance receivable
fair value balance                      649,313       784,728       911,729 

1,074,546 1,297,533 Fair Value % of Capital(a) 93.2% 100.4% 104.0% 106.3% 107.2%

Ending loan and finance receivable
balance, including principal and
accrued fees/interest outstanding     $ 701,053     $ 786,330     $ 881,807 

$1,016,590 $1,217,580

Average loan and finance receivable
balance(b)                            $ 700,348     $ 739,378     $ 837,606     $   956,110     $ 1,122,609

Revenue                               $  75,560     $  85,561     $ 100,610     $   115,063     $   132,594
Change in fair value                      4,995        45,078        24,515          22,804           1,138
Net revenue                              80,555       130,639       125,125         137,867         133,732
Net revenue margin                        106.6 %       152.7 %       124.4 %         119.8 %         100.9 %

Delinquencies:
> 30 days delinquent                  $  71,639     $  55,682     $  44,978     $    43,901     $    43,318
> 30 days delinquent as a % of loan
balance(a)                                 10.2 %         7.1 %         5.1 %           4.3 %           3.6 %

Withdrawals:

Write-offs (less recoveries) $18,042 $5,102 $7,060

     $     7,677     $    20,860
Charge-offs (net of recoveries) as
a % of average loan and finance
receivable balance(b)                       2.6 %         0.7 %         0.8 %           0.8 %           1.9 %



(a) Determined using period-end balances. (b) Average Loan and Financial Receivables 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 March 31, 2022 increased
73.7% to $1,218 million compared to $701.1 million at March 31, 2021, due
primarily to an acceleration in originations as credit risks stemming from the
COVID-19 pandemic decreased over the period.

The percentage of loans greater than 30 days delinquent was 3.6% at March 31,
2022, compared to 10.2% at March 31, 2021. Delinquency has improved in all of
our small business portfolios, as we have actively worked with our customers to
understand their financial situations, offering a variety of repayment options
to increase flexibility and reducing or deferring payments for impacted
customers.

Charge-offs (net of recoveries) as a percentage of average loan balance
decreased to 1.9% for the current quarter, compared to 2.6% in the prior year
quarter, due primarily to the recovery of the broader economy along with our
efforts to assist customers.

The ratio of fair value as a percentage of principal on small business loans and
finance receivables was 107.2% at March 31, 2022, compared to 93.2% at March 31,
2021 and 106.3% at December 31, 2021. The increase from December 31, 2021 was
due primarily to strong cash collections and improvements in anticipated cash
flow in our valuation models due to reduced risk. The ratio of fair value
                                       29
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as a percentage of capital has improved for the legacy Enova portfolio since the second quarter of 2020 and the OnDeck portfolio since the acquisition.

business expenses

Total spending has increased $63.0 millionor 54.9%, too $177.9 million in the current quarter, compared to $114.9 million in the prior-year quarter.

Marketing expense increased to $93.2 million in the current quarter compared to
$28.6 million in the prior year quarter due primarily to our efforts to capture
increasing market demand for loan products in the current quarter. The prior
year quarter was abnormally low due to our strategic actions to mitigate risks
associated with the COVID-19 pandemic.

Operating and technology expenses increased $40.7 million in the current quarter compared to $35.6 million in the prior-year quarter, primarily due to higher variable underwriting costs due to increased lending.

General and administrative expense decreased to $34.5 million in the current
quarter compared to $44.1 million in the prior year quarter, due primarily to
synergies achieved following the October 2020 acquisition of OnDeck.

Depreciation and amortization expense increased $2.9 million or 43.6% compared
to the prior year quarter driven primarily by additional internally-developed
software placed into service as well as intangible assets acquired with Pangea.

Interest expense, net

Interest expense, net increased $2.6 million, or 12.9%, to $22.5 million in the
current quarter compared to $19.9 million in the prior year quarter. The
increase was due primarily to an increase in the average amount of debt
outstanding, which increased $617.6 million to $1,564.0 million during the
current quarter from $946.4 million during the prior year quarter, partially
offset by a decrease in the weighted average interest rate on our outstanding
debt to 5.92% during the current quarter from 8.61% during the prior year
quarter.

Provision for income taxes

The effective tax rate of 23.2% for the current quarter was lower than the rate of 26.7% for the same quarter last year, primarily due to stock-based compensation deductions that were made at favorable market values.

As of March 31, 2022, the balance of unrecognized tax benefits was $57.1 million
which is included in "Accounts payable and accrued expenses" on the consolidated
balance sheet, $10.9 million of which, if recognized, would favorably affect the
effective tax rate in the period of recognition. We had $38.6 million and $44.1
million of unrecognized tax benefits as of March 31, 2021 and December 31, 2021,
respectively. We believe that we have adequately accounted for any material tax
uncertainties in our existing reserves for all open tax years.

Our U.S. tax returns are subject to examination by federal and state taxing
authorities. The statute of limitations related to our consolidated Federal
income tax returns is closed for all tax years up to and including 2017.
However, the 2014 tax year is still open to the extent of the net operating loss
that was carried back from the 2019 tax return. The years open to examination by
state, local and foreign government authorities vary by jurisdiction, but the
statute of limitation is generally three years from the date the tax return is
filed. For jurisdictions that have generated net operating losses, carryovers
may be subject to the statute of limitations applicable for the year those
carryovers are utilized. In these cases, the period for which the losses may be
adjusted will extend to conform with the statute of limitations for the year in
which the losses are utilized. In most circumstances, this is expected to
increase the length of time that the applicable taxing authority may examine the
carryovers by one year or longer, in limited cases.

net income

Net income decreased $23.5 million, or 30.9%, to $52.4 million during the
current quarter compared to $75.9 million during the prior year quarter. The
decrease was due primarily to increased marketing efforts in the current quarter
and improvements in the credit outlook of our loan portfolio in the prior year
quarter.

LIQUIDITY AND CAPITAL RESOURCES

Capital Funding Strategy

Through the COVID-19 pandemic, we have taken various actions to maintain a
stable and flexible balance sheet that ensures liquidity and funding available
to meet our business obligations. Despite higher than normal cash balances, we
have drawn funds on our revolving credit agreement at various times to meet the
minimum utilization requirements. As of March 31, 2022, we had cash, cash
equivalents, and restricted cash of $227.8 million, of which $96.2 million was
restricted, compared to $225.9 million, of which $60.4 million was
                                       30
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restricted, as of December 31, 2021. During the three months ended March 31,
2022, we increased the borrowing capacity on four of our loan securitization
facilities without having to increase any of the respective borrowing rates. As
of March 31, 2022, we had committed and undrawn funding capacity of $402.5
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 2024.

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 May 30, 2014, we issued and sold $500.0 million in
aggregate principal amount of 9.75% senior notes due 2021 (the "2021 Senior
Notes"). On September 1, 2017, we issued and sold $250.0 million in aggregate
principal amount of 8.50% Senior Notes due 2024 (the "2024 Senior Notes") and
used the net proceeds, in part, to retire $155.0 million in 2021 Senior Notes.
On January 21, 2018, we redeemed an additional $50.0 million in principal amount
of the outstanding 2021 Senior Notes. 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 the remaining
$295.0 million in principal amount of the outstanding 2021 Senior Notes.

On June 30, 2017, we entered into a secured revolving credit agreement (as
amended, the "Credit Agreement"). On April 13, 2018, October 5, 2018, July 1,
2019 and May 10, 2021, we and certain of our operating subsidiaries entered into
amendments to our Credit Agreement. As of April 29, 2022, our available
borrowings under the Credit Agreement were $80.3 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 April 29, 2022, we had committed and
undrawn funding capacity of $272.2 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 March 31, 2022, 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 city

Our Total stockholders' equity decreased by $15.1 million to $1,078.0 million at
March 31, 2022 from $1,093.1 million at December 31, 2021. The decrease of
stockholders' equity was driven primarily by repurchases of our outstanding
common stock during the current quarter, partially offset by net income for the
three months ended March 31, 2022. Our book value per share outstanding
increased to $32.83 at March 31, 2022 from $32.01 at December 31, 2021, which
was primarily driven by the decrease in shares outstanding as a result of share
repurchases, which is discussed in more detail below.

On November 5, 2020, we announced the Board of Directors had authorized a share
repurchase program for up to $50.0 million of our outstanding common stock
through December 31, 2021 (the "2020 Authorization"). On November 4, 2021, we
announced the Board of Directors authorized a new share repurchase program
totaling $150.0 million through December 31, 2022 (the "2021 Authorization").
The 2021 Authorization replaced the 2020 Authorization. On February 9, 2022, we
announced the Board of Directors authorized a new share repurchase program
totaling $100.0 million through June 30, 2023 (the "2022 Authorization"). The
2022 Authorization replaced the 2021 Authorization. Repurchases under our share
repurchase programs are made in accordance with applicable securities laws from
time to time in the open market, through privately negotiated transactions or
otherwise. Our share repurchase programs do not obligate us to purchase any
shares of our common stock. Similar to our previous share repurchase programs,
the 2022 Authorization may be terminated, increased or decreased by the Board of
Directors in its discretion at any time. During the three months ended March 31,
2022, we had $74.0 million repurchases of common stock under our share
repurchase programs.

Cash

Our cash and cash equivalents are held primarily for working capital purposes
and are used to fund a portion of 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.
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Our restricted cash represents 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.

Current Debt Facilities

The following table summarizes our debt facilities as of March 31, 2022 (dollars
in thousands).

                                                         Weighted
                                                         average
                                                         interest     Borrowing           Principal
                                     Maturity date       rate(a)       capacity          outstanding
Funding Debt:
2018-1 Securitization Facility         March 2027   (b)   4.34%           200,000   (g)        150,000
2018-2 Securitization Facility         July 2025    (c)   4.35%           225,000   (h)        175,000
2019-A Securitization Notes            June 2026          7.62%            11,534               11,534
ODR 2021-1 Securitization Facility   November 2024  (d)   2.35%           200,000   (i)         62,000
RAOD Securitization Facility         December 2023  (e)   2.63%           236,842   (j)        177,631
ODAST III Securitization Notes          May 2027    (f)   2.07%           300,000              300,000
Total funding debt                                        3.12%      $  1,173,376       $      876,165
Corporate Debt:
8.50% Senior Notes Due 2024          September 2024       8.50%           250,000              250,000
8.50% Senior Notes Due 2025          September 2025       8.50%           375,000              375,000
Revolving line of credit               June 2025          4.25%           310,000   (k)        204,000
Total corporate debt                                      7.45%      $    935,000       $      829,000



(a) The weighted average interest rate is determined based on the rates and
principal balances on March 31, 2022. It does not include the impact of the
amortization of deferred loan origination costs or debt discounts.
(b) The period during which new borrowings may be made under this facility
expires in March 2025.
(c) The period during which new borrowings may be made under this facility
expires in July 2023.
(d) The period during which new borrowings may be made under this facility
expires in November 2023.
(e) The period during which new borrowings may be made under this facility
expires in December 2022.
(f) The period during which new borrowings may be made under this facility
expires in April 2024.
(g) During the current quarter we amended this facility to increase the maximum
borrowing capacity from $150.0 million to $200.0 million.
(h) During the current quarter we amended this facility to increase the maximum
borrowing capacity from $150.0 million to $225.0 million.
(i) During the current quarter we amended this facility to increase the maximum
borrowing capacity from $150.0 million to $200.0 million.
(j) During the current quarter we amended this facility to increase the maximum
borrowing capacity from $177.6 million to $236.8 million.
(k) We had an outstanding letter of credit under the Revolving line of credit of
$0.8 million as of March 31, 2022.

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

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