Elevate Credit, Inc. (Exact name of registrant as specified in its charter)

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) May 8, 2017 Elevate Credit, Inc. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 4150 International Plaza, Suite 300 Fort Worth, Texas (Address of principal executive offices, including zip code) Registrant s telephone number, including area code (817) Not Applicable (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c)) Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 ( of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

2 Item Results of Operations and Financial Condition. On May 8, 2017, Elevate Credit, Inc. (the Company ) issued a press release announcing its financial results for the quarter ended March 31, The full text of the press release, along with the slide presentation to be used during the earnings call on May 9, 2017, are furnished herewith as Exhibits 99.1 and 99.2, respectively. Item (d) Exhibits. Exhibit No. Description Financial Statements and Exhibits 99.1 Press release dated May 8, Presentation slides for earnings call on May 9, 2017.

3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: May 9, 2017 Elevate Credit, Inc. By: /s/ Christopher Lutes Christopher Lutes Chief Financial Officer

4 EXHIBIT INDEX Exhibit No. Description 99.1 Press release dated May 8, Presentation slides for earnings call on May 9, 2017.

5 ELEVATE CREDIT ANNOUNCES FIRST QUARTER 2017 RESULTS $1.7 Million in Net Income for the first quarter of 2017 and $24.9 Million in Quarterly Adjusted EBITDA 1 FORT WORTH, TX May 8, 2017 Elevate Credit, Inc. (NYSE: ELVT) ( Elevate or the Company ), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced results for the first quarter ended March 31, We are pleased with our first quarter performance, which saw the Company generate net income and strong quarterly Adjusted EBITDA, said Ken Rees, Chief Executive Officer of Elevate. We believe these results highlight Elevate s unique growth opportunity in serving non-prime consumers with more responsible online credit products. Elevate has generated nearly 100% compound annual revenue growth rates since 2013, and we are particularly proud that between 2013 and 2016 we have simultaneously reduced the average customer APR by over 40% while expanding margins. With our proven advanced analytics and IQ technology platform, we are well positioned to continue to grow our innovative products and help our customers improve their financial health; ultimately delivering on our promise of a good today, better tomorrow. First Quarter 2017 Financial Highlights 20% year-over-year revenue growth: Revenues totaled $156.4 million, a 19.6% increase from $130.7 million for the prior-year period. Nearly 40% year-over-year growth in loans receivable: Combined loans receivable principal, were $444.5 million, a 38.6% increase from $320.7 million for the prior-year period. Stable credit quality: Loan loss provision was 52.9% of revenues and within our targeted range of 45%-55%. The ending combined loan loss reserve, as a percentage of combined loans receivable, was 15.7%, slightly lower than the 16.3% we reported for the prior-year period. Record low customer acquisition costs: The total number of new customer loans for the first quarter of 2017 was approximately 53,000 with an average customer acquisition cost of $198, compared to approximately 41,000 customer loans and an average customer acquisition cost of $235 for the prior-year period. Positive net income: Net income of $1.7 million, or $0.06 per pro forma diluted share, which was based on a 2.5 to 1 stock split and all preferred stock converting into common stock upon the IPO but it excludes the 14.3 million common shares issued in the IPO since this happened after quarter end. Continued improvement in Adjusted EBITDA margin: Adjusted EBITDA was $24.9 million and the resulting Adjusted EBITDA margin was 15.9%. 1 Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable principal, combined loan loss reserve and combined loans receivable are non-gaap measures. These terms are defined elsewhere in this release. Please see the schedules appearing later in this release for reconciliations of these non-gaap measures to the most directly comparable GAAP measures.

6 Liquidity and Capital Resources The Company completed its initial public offering in April 2017 by selling 14.3 million shares of its common stock for total net proceeds of approximately $81 million after deducting related offering expenses. The Company used these proceeds to pay off $15 million of convertible term notes and $45 million of sub-debt term notes, with the remainder used to pay off a substantial portion of its UK term notes and for general corporate purposes. The reduction in this debt will save the Company approximately $14 million in annual pre-tax interest expense. After the debt pay-offs discussed above, the Company s debt-to-equity ratio is approximately 4 to 1. As announced in early May, Elastic SPV, Ltd., which purchases loan participations in the Elastic line of credit product originated by Republic Bank & Trust Company ( Republic Bank ), increased its debt facility with Victory Park Capital from $150 million to $250 million. This is the first step in a two-step process to provide additional funding, diversified funding sources and further lower the cost of funds. The second step will involve adding another special purpose vehicle, or SPV, during the second quarter of First Quarter 2017 Business Highlights RISE Enters Mississippi. Elevate began offering additional responsible loan opportunities to non-prime consumers in Mississippi, adding a 15 th state to those served by our RISE installment loan product. Mississippi is already served by the Elastic line of credit. Lower Interest Rates. The Company improved interest rates for the newest RISE customers, lowering the top APR by 6600 basis points on the RISE installment loans. Customers Make Progress. Elevate announced that more than 55,000 RISE customers experienced an appreciable increase to their credit scores, while more than 20,000 customers are now eligible for interest rates that are 50 percent lower than their original rate. Already, two-thirds of RISE customers are qualified for some form of discounted rate. Great Place to Work. Elevate was named one of the Best Workplaces in Texas by consulting firm Great Place to Work and Fortune, adding this recognition to its previous award as one of the country s Best Medium Workplaces. Financial Outlook For the full year 2017, the Company expects total revenue of $680 million to $720 million, net income of $13 million to $19 million and Adjusted EBITDA of $95 million to $105 million. Conference Call The Company will host a conference call to discuss its first quarter 2017 financial results on Tuesday, May 9 th at 7:30am Central Time / 8:30am Eastern Time. Interested parties may access the conference call live over the phone by dialing (domestic) or (international) and requesting the Elevate First Quarter 2017 Earnings Conference Call. Participants are asked to dial in a few minutes prior to the call to register for the event. The conference call will also be webcast live through Elevate s website at

7 An audio replay of the conference call will be available approximately three hours after the conference call until 11:59 pm ET on May 23, 2017, and can be accessed by dialing (domestic) or (international), and providing the passcode , or by accessing Elevate s website. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as may, will, might, expect, believe, anticipate, could, would, estimate, continue, pursue, or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company s expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding: the Company s expectations regarding fiscal year 2017 revenue, net income and Adjusted EBITDA; the Company s belief that it is well positioned to continue to grow its products and help its customers improve their financial health; the Company s targeted loan loss provision range of 45%--55%; the expectation that the reduction in debt from the use of the initial public offering proceeds will save the Company approximately $14 million in annual pre-tax interest expense; the intention to create an additional SPV during the second quarter of 2017 as another funding source for the Elastic line of credit product; and the expectation that this additional SPV for Elastic would provide additional funding, diversified funding sources and further lower the cost of funds. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: the Company s limited operating history in an evolving industry; new laws and regulations in the consumer lending industry in many jurisdictions that could restrict the consumer lending products and services the Company offers, impose additional compliance costs on the Company, render the Company s current operations unprofitable or even prohibit the Company s current operations; scrutiny by regulators and payment processors of certain online lenders access to the Automated Clearing House system to disburse and collect loan proceeds and repayments; a lack of sufficient debt financing at acceptable prices or disruptions in the credit markets; and other risks related to litigation, compliance and regulation. Additional factors that could cause actual results to differ are discussed under the heading Risk Factors and in other sections of the Prospectus related to the Company s initial public offering of common stock filed pursuant to Rule 424(b) under the Securities Act of 1933, and in the Company s current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

8 About Elevate Elevate (NYSE: ELVT) has originated $4 billion in non-prime credit to more than 1.6 million non-prime consumers to date. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The Company is committed to rewarding borrowers good financial behavior with features like interest rates that can go down over time, free financial training and free credit monitoring. Elevate s suite of groundbreaking credit products includes RISE, Elastic and Sunny. For more information, please visit Investor Relations: Solebury Communications Sloan Bohlen, (817) investors@elevate.com or Media Inquiries: Vested Ishviene Arora, (917) elevate@fullyvested.com

9 Elevate Credit, Inc. and Subsidiaries Condensed Consolidated Income Statements (Unaudited) Three months ended March 31, (dollars in thousands, except share and per share amounts) Revenues $ 156,367 $ 130,722 Cost of sales: Provision for loan losses 82,793 59,089 Direct marketing costs 10,488 9,606 Other cost of sales 4,108 3,583 Gross profit 58,978 58,444 Operating expenses: Compensation and benefits 20,528 16,100 Professional services 7,576 7,249 Selling and marketing 2,478 2,505 Occupancy and equipment 3,257 2,735 Depreciation and amortization 2,608 2,633 Other Total operating expenses 37,362 31,928 Operating income 21,616 26,516 Other income (expense): Net interest expense (19,246) (13,500) Foreign currency transaction gain / (loss) 568 (1,358) Non-operating expense (133) Total other expense (18,811) (14,858) Income before taxes 2,805 11,658 Income tax expense 1,137 5,866 Net income $ 1,668 $ 5,792 Basic earnings per share $ 0.13 $ 0.45 Diluted earnings per share $ 0.06 $ 0.20 Basic weighted average shares outstanding 13,138,951 12,797,458 Diluted weighted average shares outstanding 28,735,755 28,806,423 Pro forma basic earnings per share $ 0.06 $ 0.22 Pro forma diluted earnings per share $ 0.06 $ 0.20 Pro forma basic weighted average shares outstanding 27,237,476 26,895,983 Pro forma diluted weighted average shares outstanding 28,735,755 28,806,423

10 Elevate Credit, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (dollars in thousands) March 31, 2017 December 31, 2016 (unaudited) (audited) ASSETS Cash and cash equivalents * $ 97,231 $ 53,574 Restricted cash 1,686 1,785 Loans receivable, net of allowance for loan losses of $69,798 and $77,451, respectively * 367, ,663 Prepaid expenses and other assets * 11,716 11,314 Receivable from CSO lenders 22,993 26,053 Receivable from payment processors* 18,789 19,105 Deferred tax assets, net 33,874 31,197 Property and equipment, net 17,601 16,159 Goodwill 16,027 16,027 Intangible assets, net 2,259 2,304 Total assets $ 589,488 $ 570,181 LIABILITIES AND STOCKHOLDERS EQUITY Accounts payable and accrued liabilities * $ 29,936 $ 31,390 State and other taxes payable 953 1,026 Deferred revenue 23,640 28,970 Notes payable, net * 511, ,478 Derivative liability 4,400 1,750 Total liabilities 570, ,614 STOCKHOLDERS EQUITY Common stock 5 5 Convertible preferred stock; Series A 3 3 Convertible preferred stock; Series B 3 3 Accumulated other comprehensive income 1,010 1,087 Additional paid-in capital 89,627 88,854 Accumulated deficit (71,354) (76,385) Total stockholders equity 19,294 13,567 Total liabilities and stockholders equity $ 589,488 $ 570,181 * These balances include certain assets and liabilities of a variable interest entity ( VIE ) that can only be used to settle the liabilities of that VIE. All assets of the Company are pledged as security for the Company s outstanding debt, including debt held by the VIE.

11 Quarterly Revenue by Product Three Months Ended March 31, 2017 (dollars in thousands) US Installment(1) US Line of Credit(2) Total Domestic UK(3) Total Average combined loans receivable - principal(4) $ 245,629 $ 175,617 $ 421,246 $43,967 $465,213 Effective APR 147% 96% 126% 229% 136% Finance charges $ 89,235 $ 41,771 $ 131,006 $24,846 $155,852 Other $ 156 $ 359 $ 515 $ 0 $ 515 Total revenue $ 89,391 $ 42,130 $ 131,521 $24,846 $156,367 Three Months Ended March 31, 2016 (dollars in thousands) US Installment(1) US Line of Credit(2) Total Domestic UK(3) Total Average combined loans receivable - principal(4) $ 229,133 $ 74,991 $ 304,124 $39,408 $343,532 Effective APR 160% 85% 142% 239% 153% Finance charges $ 91,265 $ 15,838 $ 107,103 $23,449 $130,552 Other $ 33 $ 137 $ 170 $ 0 $ 170 Total revenue $ 91,298 $ 15,975 $ 107,273 $23,449 $130,722 (1) Represents loans and revenue related to our Rise product. Includes loans originated by third-party lenders through the CSO programs, which are not included in our condensed consolidated financial statements. (2) Represents loans and revenue related to our Elastic product. (3) Represents loans and revenue related to our Sunny product. (4) Average combined loans receivable - principal is calculated using daily principal balances. See the Non-GAAP Financial Measures section for a reconciliation of this non-gaap measure to the most comparable GAAP measure.

12 Loan Loss Reserve by Product Three months ended March 31, 2017 (dollars in thousands) US Installment(1) US Line of Credit(2) Total Domestic UK(3) Total Combined loan loss reserve(4): Beginning balance $ 53,336 $ 19,389 $ 72,725 $ 9,651 $ 82,376 Net charge-offs (59,630) (21,375) (81,005) (10,923) (91,928) Provision for loan losses 48,708 22,073 70,781 12,012 82,793 Effect of foreign currency Ending balance $ 42,414 $ 20,087 $ 62,501 $ 10,862 $ 73,363 Total combined loans receivable(4)(5) $ 244,739 $ 181,077 $ 425,816 $ 42,846 $468,662 Combined loan loss reserve as a percentage of ending combined loans receivable 17% 11% 15% 25% 16% Net charge-offs as a percentage of revenues 67% 51% 62% 44% 59% Provision for loan losses as a percentage of revenues 54% 52% 54% 48% 53% Three months ended March 31, 2016 (dollars in thousands) US Installment(1) US Line of Credit(2) Total Domestic UK(3) Total Combined loan loss reserve(4): Beginning balance $ 46,635 $ 10,016 $ 56,651 $ 9,133 $ 65,784 Net charge-offs (50,218) (8,100) (58,318) (10,692) (69,010) Provision for loan losses 42,504 7,145 49,649 9,440 59,089 Effect of foreign currency (271) (271) Ending balance $ 38,921 $ 9,061 $ 47,982 $ 7,610 $ 55,592 Total combined loans receivable(4)(5) $ 224,785 $ 77,224 $ 302,009 $ 39,259 $341,268 Combined loan loss reserve as a percentage of ending combined loans receivable 17% 12% 16% 19% 16% Net charge-offs as a percentage of revenues 55% 51% 54% 46% 53% Provision for loan losses as a percentage of revenues 47% 45% 46% 40% 45% (1) Represents loan loss reserve attributable to Rise for the periods ended March 31, 2017 and (2) Represents loan loss reserve attributable to Elastic for the periods ended March 31, 2017 and (3) Represents loan loss reserve attributable to Sunny for the periods ended March 31, 2017 and (4) Not a financial measure prepared in accordance with GAAP. See reconciliation table accompanying this release for a reconciliation of non-gaap financial measures to the most directly comparable financial measure calculated in accordance with GAAP. (5) Includes loans originated by third-party lenders through the CSO programs, which are not included in our condensed consolidated financial statements.

13 Customer Loan Data by Product Three months ended March 31, 2017 US Installment(1) US Line of Credit(2) Total Domestic UK(3) Total Beginning number of combined loans outstanding 121,996 89, ,149 78, ,193 New customer loans originated 12,365 20,471 32,836 20,125 52,961 Former customer loans originated 14,403 14,403 14,403 Attrition (48,879) (15,461) (64,340) (22,478) (86,818) Ending number of combined loans outstanding 99,885 94, ,048 75, ,739 Customer acquisition cost $ 306 $ 150 $ 209 $ 181 $ 198 Average customer loan balance $ 2,288 $ 1,852 $ 2,076 $ 523 $ 1,648 Three months ended March 31, 2016 US Installment(1) US Line of Credit(2) Total Domestic UK(3) Total Beginning number of combined loans outstanding 118,222 36, ,709 68, ,723 New customer loans originated 16,757 7,792 24,549 16,168 40,717 Former customer loans originated 17, ,420 17,420 Attrition (51,883) (5,816) (57,699) (22,085) (79,784) Ending number of combined loans outstanding 100,471 38, ,979 62, ,076 Customer acquisition cost $ 275 $ 167 $ 241 $ 226 $ 235 Average customer loan balance $ 2,087 $ 1,968 $ 2,054 $ 581 $ 1,595 (1) Represents loan activity attributable to Rise for the periods ended March 31, 2017 and (2) Represents loan activity attributable to Elastic for the periods ended March 31, 2017 and (3) Represents loan activity attributable to Sunny for the periods ended March 31, 2017 and 2016.

14 Non-GAAP Financial Measures This press release and the attached financial tables contain certain non-gaap financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable and combined loan loss reserve. Adjusted EBITDA and Adjusted EBITDA margin In addition to net income determined in accordance with GAAP, Elevate uses certain non-gaap measures such as Adjusted EBITDA in assessing its operating performance. Elevate believes this non-gaap measure serves as an appropriate measure to be used in evaluating the performance of its business. Elevate defines Adjusted EBITDA as net income excluding the impact of income tax benefit or expense, non-operating income or expense, foreign currency transaction gain or loss associated with our UK operations, net interest expense, stock-based compensation expense and depreciation and amortization expense. Elevate defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. Management believes that Adjusted EBITDA is a useful supplemental measure in analyzing the operating performance of the business and provides greater transparency into the results of operations of our core business. Management uses this non-gaap financial measure frequently in its decision-making because it provides supplemental information that facilitates internal comparisons to the historical operating performance of prior periods and gives an additional indication of Elevate s core operating performance. Elevate includes this non-gaap financial measure in its earnings announcement in order to provide transparency to its investors and enable investors to better compare its operating performance with the operating performance of its competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect expected cash capital expenditure requirements for such replacements or for new capital assets; Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; and Adjusted EBITDA does not reflect interest associated with notes payable used for funding our customer loans, for other corporate purposes or tax payments that may represent a reduction in cash available to us. Additionally, Elevate s definition of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

15 The following table presents a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to Elevate s net income for the three months ended March 31, 2017 and 2016: Three months ended March 31, (dollars in thousands) Net income $ 1,668 5,792 Adjustments: Net interest expense 19,246 13,500 Stock-based compensation Foreign currency transaction (gain) loss (568) 1,358 Depreciation and amortization 2,608 2,633 Income tax expense 1,137 5,866 Non-operating expense 133 Adjusted EBITDA $ 24,926 29,315 Adjusted EBITDA Margin 15.9% 22.4% The Company s Adjusted EBITDA guidance does not include certain charges and costs. The adjustments in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as the impact of income tax benefit or expense, non-operating income or expense, foreign currency transaction gain or loss associated with our UK operations, net interest expense, stock-based compensation expense and depreciation and amortization expense, among others. The Company is not able to provide a reconciliation of the Company s non-gaap financial guidance to the corresponding GAAP measure without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.

16 Combined Loan Information Elevate defines combined loans receivable principal as loans owned by the Company plus loans originated and owned by third-party lenders pursuant to our CSO programs. In Texas and Ohio, we do not make Rise loans directly, but rather act as a Credit Services Organization (which is also known as a Credit Access Business in Texas), or, collectively, CSO, and the loans are originated by an unaffiliated third party. Elevate defines combined loan loss reserve as the loan loss reserve for loans owned by the Company plus the loan loss reserve for loans originated and owned by third-party lenders and guaranteed by the Company. The information presented in the tables below on a combined basis are non-gaap measures based on a combined portfolio of loans, which includes the total amount of outstanding loans receivable that we own and that are on our condensed consolidated balance sheets plus outstanding loans receivable originated and owned by third parties that we guarantee pursuant to CSO programs in which we participate. We believe these non-gaap measures provide investors with important information needed to evaluate the magnitude of potential loan losses and the opportunity for revenue performance of the combined loan portfolio on an aggregate basis. We also believe that the comparison of the combined amounts from period to period is more meaningful than comparing only the amounts reflected on our condensed consolidated balance sheets since both revenues and cost of sales as reflected in our condensed consolidated financial statements are impacted by the aggregate amount of loans we own and those CSO loans we guarantee. Our use of total combined loans and fees receivable has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: Rise CSO loans are originated and owned by a third party lender; and Rise CSO loans are funded by a third party lender and are not part of the VPC Facility. As of each of the period ends indicated, the following table presents a reconciliation of: Loans receivable, net, Company owned (which reconciles to our condensed consolidated balance sheets included elsewhere in this press release); Loans receivable, net, guaranteed by the Company; Combined loans receivable (which we use as a non-gaap measure); and Combined loan loss reserve (which we use as a non-gaap measure).

17 March 31, (dollars in thousands) Company Owned Loans: Loans receivable principal, current, company owned 363, ,607 Loans receivable principal, past due, company owned 52,415 35,407 Loans receivable principal, total, company owned 415, ,014 Loans receivable finance charges, company owned 21,359 19,045 Loans receivable company owned 437, ,059 Allowance for loan losses on loans receivable, company owned (69,798) (51,296) Loans receivable, net, company owned 367, ,763 Third Party Loans Guaranteed by the Company: Loans receivable principal, current, guaranteed by company 26,888 28,556 Loans receivable principal, past due, guaranteed by company 1,910 2,112 Loans receivable principal, total, guaranteed by company 1 28,798 30,668 Loans receivable finance charges, guaranteed by company 2 2,754 1,541 Loans receivable guaranteed by company 31,552 32,209 Liability for losses on loans receivable, guaranteed by company (3,565) (4,296) Loans receivable, net, guaranteed by company 3 27,987 27,913 Combined Loans Receivable 3 : Combined loans receivable principal, current 390, ,163 Combined loans receivable principal, past due 54,325 37,519 Combined loans receivable principal 444, ,682 Combined loans receivable finance charges 24,113 20,586 Combined loans receivable 468, ,268 Combined Loan Loss Reserve 3 : Allowance for loan losses on loans receivable, company owned (69,798) (51,296) Liability for losses on loans receivable, guaranteed by company (3,565) (4,296) Combined loan loss reserve (73,363) (55,592) 1 Represents loans originated by third-party lenders through the CSO programs, which are not included in our condensed consolidated financial statements. 2 Represents finance charges earned by third-party lenders through the CSO programs, which are not included in our condensed consolidated financial statements. 3 Non-GAAP measure. # # #

18 First Quarter 2017 Earnings Call May 2017 Exhibit 99.2

19 Forward-Looking service and comparable Statements events This that presentation could compromise and responses the personal to various and confidential questions contain information forward-looking held our statements data systems, within reduce the the meaning attractiveness of Section of 27A our platform of the Securities or adversely Act of impact 1933, our as ability amended, to service and Section loans. 21E Forward looking of the Securities statements Exchange involve Act of certain 1934, as risks amended. and uncertainties, The forward-looking and actual statements results may present differ materially our current from expectations those discussed and projections in any such relating statement. to our These business, risks financial and uncertainties condition include, and results but are of operations, not limited and to: the do not Company s refer to historical limited operating or current history facts. in These an evolving statements industry; may include new laws words and such regulations as anticipate, in the consumer estimate, lending expect, industry project, in many plan, jurisdictions intend, that could believe, restrict may, the consumer will, should, lending products likely and services other words the Company and terms offers, similar impose meaning. additional The forward-looking compliance costs statements on the Company, include statements render the Company s regarding: our current future operations financial unprofitable performance or including even prohibit our outlook the Company s for full fiscal current year operations; 2017 and our scrutiny perspectives by regulators on the and second payment quarter processors of 2017 of and certain our expectations online lenders regarding access revenue, to the Automated cost of revenue, Clearing growth House rate system of revenue, to disburse cost and of borrowing, collect loan credit proceeds losses, and marketing repayments; costs, a lack net charge-offs, sufficient gross debt profit financing or gross at acceptable margin, operating prices or expenses, disruptions operating the credit margins, markets; ability and to other generate risks cash related flow to and litigation, ability compliance to achieve and maintain regulation. future Additional profitability; factors the that availability could cause of debt actual financing, results to funding differ are sources discussed and disruptions under the heading credit "Risk markets; Factors" expectations and in other related sections to our of debt the Prospectus funding, including related to our the expectation Company s that initial we will public extend offering the maturity of common of the stock RISE filed and pursuant ESPV to facility Rule to 424(b) 2021 under and that the one Securities RISE facility Act of 1933, and the and related in the lender Company's will be current replaced and before periodic the reports end of filed the second from time quarter to time of 2017, with related the SEC. to All our written RISE CSO and oral relationships forward-looking Texas statements and Ohio; attributable anticipated to trends, us, or growth persons rates, acting seasonal our fluctuations behalf, are expressly and challenges qualified in our in their business entirety and in by the markets cautionary in which statements we operate; regarding our risks growth and strategies uncertainties and our that ability are included to effectively in our public manage communications. that growth; customer You should demand evaluate for the all our forward-looking products; the cost statements of customer made acquisition; in this presentation the ability in the of customers context of to these repay risks loans; and interest uncertainties. rates and Neither origination we nor fees any on of loans; our respective the impact agents, of competition employees in or our advisors industry intend and or innovation have any by duty our or competitors; obligation to the supplement, efficacy and amend, cost of update our marketing or revise efforts any of and the forward-looking relationships with statements marketing contained affiliates; in continued this presentation. innovation This of presentation our analytics also platform contains and estimates our ability and to other prevent statistical security data breaches, made by disruption independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. The information and opinions contained in this presentation are provided as of the date of this presentation and are subject to change without notice. This presentation has not been approved by any regulatory or supervisory agency.

20 CONFIDENTIAL-DO NOT COPY Elevate is reinventing non-prime credit with online products that provide financial relief today, and help people build a brighter financial future.

21 109MM US non-prime1 53MM US credit invisible2 10MM UK non-prime3 US non-prime population larger than prime US and UK non-prime population >170MM people Elevate customer profile4 Prime1 34% Non-prime1 44% Credit invisible2 22% Banks not serving non-prime $142B Total reduction in non-prime credit since US UK Average income Attended college Own home $48K ~ 79% ~ 39% 20K ~ 58% ~ 12% Typical FICO range N/A Non-prime consumers need better options See Appendix for additional information and definitions.

22 Approval in seconds Rates that go down over time Financial wellness features Credit building features Flexible payment terms Good Today, Better Tomorrow The next generation of responsible online credit

23 Strong Growth 34% revenue growth YOY1 35% loans receivable growth YOY2 Stable Credit Quality In line with targets all products Improving Margins Adjusted EBITDA margins increased from 4% to 10%3 Managed CAC Below stated targets Outsized Customer Impact 1.6 mm customers served to date ($4.0B originated) $1 billion saved over payday loans4 Elevate is a unique success story in fintech lending Elevate Goals 2016 Performance Review Adjusted EBITDA margin and combined loans receivable principal are non-gaap financial measures. See Appendix for a reconciliation to GAAP measures. See Appendix for additional information and definitions.

24 Strong Growth 20% revenue growth YOY1 39% loans receivable growth YOY2 Stable Credit Quality Continued performance in target range Improving Margins 16% Adjusted EBITDA margin ($25mm Adjusted EBITDA) 3 Net income of $1.7mm Managed CAC Record low level at $198 Outsized Customer Impact 6600 basis point reduction in top rate on Rise 55,000 Rise customers saw credit scores increase Q continues strong performance Elevate Goals Q Performance Highlights Adjusted EBITDA margin and combined loans receivable principal are non-gaap financial measures. See Appendix for a reconciliation to GAAP measures. See Appendix for additional information and definitions.

25 Growth in revenue and combined loans receivable-principal1 Combined loans receivable principal is a non-gaap financial measure. See appendix for a reconciliation to the GAAP measure. See Appendix for additional information and definitions.

26 Q Performance Adjusted EBITDA margin and combined loans receivable principal are non-gaap financial measures. See Appendix for a reconciliation to GAAP measures. See Appendix for additional information and definitions.

27 Consistent and improving credit quality Cumulative loss rates as a % of originations by loan vintage Months since origination

28 Revenue Adjusted EBITDA1 +281% +58% +34% +20% +223% +66% Net Income / (Loss) Growth in key financial measures ($mm) Adjusted EBITDA margin is a non-gaap financial measure. See Appendix for a reconciliation to GAAP measure. See Appendix for additional information and definitions.

29 Rapidly expanding margins % of Gross Revenues Q LT Target Gross Revenue 100% 100% 100% 100% Loan Loss Provision 54% 55% 53% 50% Direct Marketing and Other Cost of Sales 18% 14% 9% 10% Gross Margin 29% 31% 38% 40% Operating Expenses 25% 21% 22% 20% Adjusted EBITDA Margin1 4% 10% 16% 20% Adjusted EBITDA margin is a non-gaap financial measure. See Appendix for a reconciliation to GAAP measure. See Appendix for additional information and definitions.

30 Improvements in funding Used IPO proceeds to pay down or pay off $60mm1 sub debt at ~18% COF $25mm UK facility at ~16% COF (also reduces FX risk) 1 Elastic Utilizes SPV structure $250mm facility Matures Rise Over $400mm in three facilities2 Six different lenders Matures

31 2017 Outlook Revenue = $680MM - $720MM Net Income = $13MM-$19MM Adjusted EBITDA1 = $95MM - $105MM Exiting seasonal slow period Customer acquisition cost will increase based on growth and TV spend Net charge-offs as percent of revenue will decrease Perspective on Q2 Annual guidance Adjusted EBITDA margin is a non-gaap financial measure. See Appendix for a reconciliation to GAAP measure. See Appendix for additional information and definitions.

32 CONFIDENTIAL-DO NOT COPY We believe everyone deserves a lift.

33 Appendix

34 Footnotes average contingent effective Page consideration 4: APR 1According of payable our combined to related an analysis loan to companies of portfolio TransUnion for previously the data years through acquired ended the December prior third to quarter the 31, spin-off; through stock by the compensation 2016 Corporation compared expense for to Enterprise revenues and income at Development an APR taxes. of See approximately 2 the FICO, Appendix Expanding 400%. for a Credit reconciliation Page 7: Opportunities, 1Q to GAAP revenue July net 2015 of loss. $131 3 Combined House million of and Commons loans Q1 receivable-principal 2017 Welsh revenue Affairs of $156 Committee, is a million. not a financial The Combined Impact measure of loans Changes prepared receivable Benefit in accordance principal Wales, at with October March GAAP. 31, Combined 4 Elevate of $321 loans analysis million receivable ; and at March principal US 31, income represents 2017 and of $445 home loans million. ownership owned Combined by data the company from loans Elevate receivable-principal plus loans internal originated database is and for a not owned customers a financial by third-party acquired measure in lenders prepared 2016; other pursuant in accordance data to from our self-reported CSO with programs. GAAP. customer Combined Page 11 research. Adjusted loans receivable Range EBITDA of middle principal is not quintile a financial represents of Elevate measure loans US owned prepared customers by in the accordance (2016) company According plus with loans GAAP. to originated our Adjusted analysis and EBITDA of owned master by represents pool third-party trust data our lenders net of securitizations loss, pursuant adjusted to to for our exclude: the CSO five programs. net major interest credit Adjusted expense card issuers, EBITDA primarily we is estimate associated not a financial that with from notes measure 2008 payable to prepared 2016, under revolving the accordance VPC credit Facility with to US and GAAP. borrowers ESPV Adjusted facility with EBITDA FICO used to scores fund represents of or less purchase than our net 660 loans; loss, was foreign adjusted reduced currency to by exclude: approximately gains net and interest losses $142 expense associated billion Page primarily with 6: our associated UK revenue operations; with of notes $434 depreciation payable million under and 2016 amortization the VPC revenue Facility expense of $580 and million. ESPV fixed facility Combined assets and used intangible loans to fund receivable or assets; purchase adjustments principal loans; foreign at to December contingent currency 31, consideration gains 2015 and of $356 losses payable million associated related and December with to companies our UK 31, operations; 2016 previously of $481 depreciation acquired million. prior Combined and to amortization the spin-off; loans receivable-principal expense stock compensation on fixed assets is expense a not and a intangible financial and income measure assets; taxes. adjustments prepared See the Appendix in to accordance contingent for a with consideration reconciliation GAAP. Combined payable to GAAP related loans net loss. receivable to companies principal previously represents acquired loans prior owned to the by spin-off; the company stock compensation plus loans originated expense and owned income by taxes. third-party See the lenders Appendix pursuant for a reconciliation to our CSO programs. to GAAP Adjusted net loss. EBITDA Page 8 Combined is not a financial loans receivable-principal measure prepared in is accordance not a financial with measure GAAP. Adjusted prepared EBITDA in accordance represents with GAAP. our net Combined loss, adjusted loans to receivable exclude: net interest principal expense represents primarily loans owned associated by the with company notes payable plus loans under originated the VPC and Facility owned and by ESPV third-party facility lenders used to pursuant fund or to purchase our CSO loans; programs. foreign For currency additional gains reconciliations, and losses associated see the with Prospectus our UK related operations; to the depreciation Company s initial and amortization public offering, expense filed on pursuant fixed assets to Rule and 424(b) intangible under assets; the Securities adjustments Act to of contingent 1933 April consideration 7, payable Page 9 Adjusted related to EBITDA companies is not previously a financial acquired measure prior prepared to the spin-off; accordance stock with compensation GAAP. Adjusted expense EBITDA and income represents taxes. See our the net Appendix loss, adjusted for a to reconciliation exclude: net to interest GAAP expense net loss. primarily Our products associated have saved with notes our customers payable under more the than VPC $1 billion Facility since and ESPV 2013 over facility what used they to would fund or have purchase paid for loans; payday foreign loans, currency which have gains and average losses APR associated of approximately with our UK 400% operations; or more depreciation according to and the amortization findings by expense the CFPB, on based fixed assets on a comparison and intangible of revenues assets; adjustments at the to

35 Footnotes (continued) Page 12 Adjusted EBITDA is not a financial measure prepared in accordance with GAAP. Adjusted EBITDA represents our net loss, adjusted to exclude: net interest expense primarily associated with notes payable under the VPC Facility and ESPV facility used to fund or purchase loans; foreign currency gains and losses associated with our UK operations; depreciation and amortization expense on fixed assets and intangible assets; adjustments to contingent consideration payable related to companies previously acquired prior to the spin-off; stock compensation expense and income taxes. See the Appendix for a reconciliation to GAAP net loss. Page 13 1Includes $25mm 4th tranche term note. Includes two facilities, and two lenders, of which one facility and the related lender are expected to be replaced before the end of the second quarter 2017, related to our RISE CSO relationships in Texas and Ohio. $75mm currently outstanding, matures August 2018 but is expected to be extended to $49 million currently outstanding, matures in August 2018 but is expected to be extended to Page 14 1Adjusted EBITDA is not a financial measure prepared in accordance with GAAP. Adjusted EBITDA represents our net loss, adjusted to exclude: net interest expense primarily associated with notes payable under the VPC Facility and ESPV facility used to fund or purchase loans; foreign currency gains and losses associated with our UK operations; depreciation and amortization expense on fixed assets and intangible assets; adjustments to contingent consideration payable related to companies previously acquired prior to the spin-off; stock compensation expense and income taxes. See the Appendix for a reconciliation to GAAP net loss.

36 Non-GAAP financials reconciliation Adjusted EBITDA Reconciliation The Company s Adjusted EBITDA guidance does not include certain charges and costs. The adjustments in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as the impact of income tax benefit or expense, non-operating income or expense, foreign currency transaction gain or loss associated with our UK operations, net interest expense, stock-based compensation expense and depreciation and amortization expense, among others. The Company is not able to provide a reconciliation of the Company s non-gaap financial guidance to the corresponding GAAP measure without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.

37 Combined loans reconciliation

38