CURO Group Holdings Corp.

Revenue was $168 million, slightly above the prior quarter. Net revenue post provision expense was $119 million versus $103 million in Q2 2023, and pretax loss post provision improved to $33 million from a $54 million loss. Operating expenses were $94 million, including $6.5 million of non-recurring charges; excluding those charges, the OpEx receivables ratio would have been 28.3%, down 210 basis points. Net charge-offs were $55 million, down $2 million sequentially, and the reported net charge-off rate improved to 17.7% from 18.8%. Net loss from continuing operations was $34 million, or $0.81 per diluted share. For Q4 2023, CURO expects receivables of $1.26 billion to $1.28 billion, revenue of about $165 million to $175 million, net charge-offs of 16.5% to 18.5%, operating expenses of $85 million to $95 million, and cost of funds of about $60 million. For 2024, it expects receivables growth of 8% to 12%, net interest margin post charge-offs excluding recourse interest of 26% to 28%, expense run rate in line with Q4 2023 annualized expenses, and unrestricted cash of $90 million to $140 million at each quarter-end.

Doug Clark framed the quarter as a successful execution period, emphasizing that CURO finished its business transformation and is now focused on core direct lending. He highlighted the branch network conversion to a single loan management system in the U.S. as a major operational milestone that should improve efficiency, servicing, and loan growth potential. His tone was optimistic but measured, with repeated emphasis on responsible growth, tighter credit actions, and expense discipline.

Izzy Dawood focused on the financial bridge from loss-making toward improved liquidity and profitability. He noted that interest expense rose to $56 million from $51 million in the prior quarter due to higher debt levels and rates, while net charge-offs improved to $55 million and the charge-off rate fell to 17.7%. He also laid out liquidity sources: expected year-end unrestricted cash of $90 million to $140 million, $45 million to $50 million of additional liquidity from Flexiti escrow/tax refund/Canadian facility changes, $65 million of added capacity from U.S. lending facility modifications in Q4 2023, and an expected approximately $38 million tax refund in the second half of 2024.

Analysts focused on whether improving credit was driven more by execution or by a better macro backdrop, and Doug Clark said it was a mix of underwriting/servicing changes and a more stable consumer environment. He pointed to tighter underwriting, centralized collections, payment solutions, and Canada servicing changes as key drivers, while also noting consumer performance remained consistent with recent quarters. A second question probed planned debt facility changes; Izzy Dawood said the near-term changes are aimed at creating capacity for the secured loan program, and next year CURO expects to move toward a more tailored U.S. direct-lending facility split by secured/unsecured loans and potentially loan sizes.