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

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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 six months ended June 30, 2022, we extended
approximately $2.1 billion in credit or financing to borrowers. As of June 30,
2022, we offered or arranged loans or draws on lines of credit to consumers in
37 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 June 30, 2022, we have
completed approximately 56.6 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 18 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. 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. 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 programs with certain banks 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 programs, 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
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program with 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 June 30, 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 the 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.


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.

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.
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RESULTS OF OPERATIONS

Highlights

Our financial results for the past three months June 30, 2022or the current quarter, are summarized below.

Consolidated total revenue increased $143.3 million, or 54.1%, to $408.0 million
in the current quarter compared to $264.7 million for the three months ended
June 30, 2021, or the prior year quarter.

The consolidated net sales were $264.6 million compared to $259.1 million in the prior-year quarter.

Consolidated income from operations decreased $33.2 million, or 27.1%, to $89.5
million in the current quarter, compared to $122.7 million in the prior year
quarter.

Consolidated net income was $52.4 million in the current quarter compared to
$80.2 million in the prior year quarter. Consolidated diluted income per share
was $1.56 in the current quarter compared to $2.10 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 June 30,    

Six months ended June 30th,

                                                2022                2021             2022              2021

revenue

Income from loans and receivables $402,952 $260,073

    $      784,093       $ 517,370
Other                                                5,038            4,647              9,628           6,794
Total Revenue                                      407,990          264,720            793,721         524,164
Change in Fair Value                              (143,418 )         (5,587 )         (260,460 )       (26,665 )
Net Revenue                                        264,572          259,133            533,261         497,499
Operating Expenses
Marketing                                           91,551           55,254            184,722          83,822
Operations and technology                           42,262           35,035             82,992          70,662
General and administrative                          33,690           38,675             68,218          82,764
Depreciation and amortization                        7,584            7,460             17,098          14,087
Total Operating Expenses                           175,087          136,424            353,030         251,335
Income from Operations                              89,485          122,709            180,231         246,164
Interest expense, net                              (24,950 )        (19,416 )          (47,433 )       (39,330 )
Foreign currency transaction gain (loss)                21             (240 )             (293 )          (274 )
Equity method investment income                      6,323            1,471              6,651           2,029
Other nonoperating expenses                         (1,091 )           (750 )           (1,091 )        (1,128 )
Income before Income Taxes                          69,788          103,774            138,065         207,461
Provision for income taxes                          17,387           23,224             33,221          50,940
Net income before noncontrolling
interest                                            52,401           80,550            104,844         156,521
Less: Net income attributable to
noncontrolling interest                                  -              373                  -             424
Net income attributable to Enova
International, Inc.                        $        52,401       $   80,177     $      104,844       $ 156,097
Earnings per common share - diluted        $          1.56       $     2.10 

$3.07 $4.13

revenue

Loans and finance receivables revenue                 98.8 %           98.2 %             98.8 %          98.7 %
Other                                                  1.2              1.8                1.2             1.3
Total Revenue                                        100.0            100.0              100.0           100.0
Change in Fair Value                                 (35.2 )           (2.1 )            (32.8 )          (5.1 )
Net Revenue                                           64.8             97.9               67.2            94.9
Operating Expenses
Marketing                                             22.4             20.9               23.3            16.0
Operations and technology                             10.4             13.2               10.5            13.5
General and administrative                             8.2             14.6                8.6            15.8
Depreciation and amortization                          1.9              2.8                2.1             2.6
Total Operating Expenses                              42.9             51.5               44.5            47.9
Income from Operations                                21.9             46.4               22.7            47.0
Interest expense, net                                 (6.1 )           (7.3 )             (6.0 )          (7.5 )
Foreign currency transaction loss                        -             (0.1 )                -            (0.1 )
Equity method investment income                        1.6              0.5                0.8             0.4
Other nonoperating expenses                           (0.3 )           (0.3 )             (0.1 )          (0.2 )
Income before Income Taxes                            17.1             39.2               17.4            39.6
Provision for income taxes                             4.3              8.8                4.2             9.7
Net income before noncontrolling
interest                                              12.8             30.4               13.2            29.9
Less: Net income attributable to
noncontrolling interest                                  -              0.1                  -             0.1
Net income attributable to Enova
International, Inc.                                   12.8 %           30.3 %             13.2 %          29.8 %


Valuation of credits and financial receivables


The COVID-19 pandemic 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 actively worked with our customers to understand their
financial situations, 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. Certain of these measures have
eased since the height of the pandemic, with improvement of economic conditions
and our outlook.
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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 and June 30, 2022, we increased our
discount rates based primarily on movements in the market during each period. 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 have spiked at
numerous times in the past year as different variants escalate and abate. 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. We continue to
utilize this approach and have adjusted charge-off expectations where
appropriate. As of June 30, 2022, we deemed the resulting fair value to be an
appropriate market-based exit price that considers current market conditions.

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.

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.
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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             Six Months Ended
                                                   June 30,                      June 30,
                                              2022           2021          2022           2021
Net income                                 $   52,401     $   80,177     $ 104,844     $  156,097
Adjustments:
Transaction-related costs(a)                        -             12             -          1,424
Equity method investment income(b)             (6,323 )            -        (6,323 )            -
Other nonoperating expenses(c)                  1,091            750         1,091          1,128
Intangible asset amortization                   2,014          1,684         4,027          2,835
Stock-based compensation expense                5,133          5,250        10,500         11,054
Foreign currency transaction (gain) loss          (21 )          237           293            271
Cumulative tax effect of adjustments              624         (2,053 )      (1,303 )       (4,262 )
Adjusted earnings                          $   54,919     $   86,057     $ 113,129     $  168,547

Diluted earnings per share                 $     1.56     $     2.10     $    3.07     $     4.13
Adjustments:
Transaction-related costs                           -              -             -           0.04
Equity method investment income                 (0.19 )            -         (0.19 )            -
Other nonoperating expenses                      0.03           0.02          0.03           0.03
Intangible asset amortization                    0.06           0.04          0.12           0.07
Stock-based compensation expense                 0.16           0.14          0.31           0.29
Foreign currency transaction (gain) loss            -           0.01          0.01           0.01
Cumulative tax effect of adjustments             0.02          (0.05 )       (0.04 )        (0.11 )
Adjusted earnings per share                $     1.64     $     2.26     $    3.31     $     4.46




(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 second quarter of 2022, we recorded equity method investment income
of $6.3 million ($3.6 million net of tax) that was comprised primarily of an
$11.0 million gain generated on Linear's sale of its operating company,
partially offset by a $4.4 million loss on the sale of OnDeck Canada.
(c) In the second quarter of 2022 and 2021, we recorded other nonoperating
expenses of $1.1 million ($0.8 million net of tax) and $0.8 million ($0.6
million net of tax), respectively, related to incomplete transactions. In the
first quarter of 2021, we recorded other nonoperating expenses of $0.4 million
($0.3 million net of tax) related to the repurchase of securitization notes.

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), equity method investment income and other nonoperating expenses shown
below are useful to investors in order to allow them to compare our financial
results during the
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Periods presented without the effect of income or expense items. The Adjusted EBITDA calculation presented below may differ from other companies’ calculations of similarly titled measures (in thousands):

                                             Three Months Ended           Six Months Ended
                                                  June 30,                    June 30,
                                             2022          2021          2022          2021
Net income                                 $  52,401     $  80,177     $ 104,844     $ 156,097
Depreciation and amortization
expenses(d)                                    7,584         7,457        17,098        14,078
Interest expense, net(d)                      24,950        19,292        47,433        39,047
Foreign currency transaction (gain)
loss(d)                                          (21 )         237           293           271
Provision for income taxes                    17,387        23,224        33,221        50,940
Stock-based compensation expense               5,133         5,250        10,500        11,054
Adjustment:
Transaction-related costs(a)                       -            12             -         1,424
Equity method investment income(b)            (6,323 )      (1,471 )      (6,651 )      (2,029 )
Other nonoperating expenses(c)                 1,091           750         1,091         1,128
Adjusted EBITDA                            $ 102,202     $ 134,928     $ 

207,829 $272,010


Adjusted EBITDA margin calculated as
follows:
Total Revenue                              $ 407,990     $ 264,720     $ 793,721     $ 524,164
Adjusted EBITDA                              102,202       134,928       207,829       272,010
Adjusted EBITDA as a percentage of total
revenue                                         25.1 %        51.0 %        26.2 %        51.9 %




(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 second quarter of 2022, we recorded equity method investment income
of $6.3 million that was comprised primarily of an $11.0 million gain generated
on Linear's sale of its operating company, partially offset by a $4.4 million
loss on the sale of OnDeck Canada.
(c) In the second quarter of 2022 and 2021, we recorded other nonoperating
expenses of $1.1 million and $0.8 million, respectively, related to incomplete
transactions. In the first quarter of 2021, we recorded other nonoperating
expenses of $0.4 million related to the repurchase of securitization notes.
(d) 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 JUNE 30, 2022 COMPARED TO THREE MONTHS ENDED JUNE 30, 2021

Sales and Net Sales


Revenue increased $143.3 million, or 54.1%, to $408.0 million for the current
quarter as compared to $264.7 million for the prior year quarter. The increase
was driven by a 75.2% increase in revenue from our small business portfolio and
a 45.0% 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 $264.6 million compared to $259.1
million for the prior year quarter. Our consolidated net revenue margin was
64.8% for the current quarter compared to 97.9% 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 June 30, 2022, the net revenue margin in the
current quarter was in a more normalized range.
                                       28
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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 June 30,
                                               2022                2021         $ Change      % Change
Revenue by product:
Consumer loans and finance receivables
revenue                                   $       253,043       $  174,512     $   78,531          45.0 %
Small business loans and finance
receivables revenue                               149,909           85,561         64,348          75.2
Total loans and finance receivables
revenue                                           402,952          260,073        142,879          54.9
Other                                               5,038            4,647            391           8.4
Total revenue                                     407,990          264,720        143,270          54.1
Change in fair value                             (143,418 )         (5,587 )     (137,831 )     2,467.0
Net revenue                               $       264,572       $  259,133     $    5,439           2.1 %

Revenue by product (% to total):
Consumer loans and finance receivables
revenue                                              62.0 %           65.9 %
Small business loans and finance
receivables revenue                                  36.8             32.3
Total loans and finance receivables
revenue                                              98.8             98.2
Other                                                 1.2              1.8
Total revenue                                       100.0            100.0
Change in fair value                                (35.2 )           (2.1 )
Net revenue                                          64.8 %           97.9 %

Loan and Financial Receivable Balances


The fair value of our loan and finance receivable portfolio in our consolidated
financial statements was $2,460.9 million and $1,408.7 million as of June 30,
2022 and 2021, respectively. The outstanding principal balance of our loan and
finance receivables portfolio was $2,300.7 million and $1,366.9 million as of
June 30, 2022 and 2021, respectively. The fair value of the combined loan and
finance receivables portfolio includes $17.9 million and $10.8 million with an
outstanding principal balance of $11.9 million and $8.3 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 June 30, 2022 and 2021,
respectively.

Our small business portfolio of loans and finance receivables increased to 59.4%
of our combined loan and finance receivable portfolio at fair value as of June
30, 2022, compared to 55.3% as of June 30, 2021 due primarily to more
accelerated growth in the small business portfolio. The consumer portfolio
balance decreased to 40.6% of our combined loan and finance receivable portfolio
balance at fair value as of June 30, 2022, compared to 44.7% as of June 30,
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 June 30, 2022 and 2021 (in thousands):

                                               As of June 30, 2022                               As of June 30, 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                          $   936,601     $     11,873     $   

948,474 $585,087 $8,284 $593,371
fair value

                             989,128           17,860       1,006,988         623,975           10,824          634,799
Fair value as a % of principal           105.6 %          150.4 %         106.2 %         106.6 %          130.7 %          107.0 %
Small business loans and finance
receivables
Principal                          $ 1,364,055     $          -     $ 1,364,055     $   781,793     $          -     $    781,793
Fair value                           1,471,723                -       1,471,723         784,728                -          784,728
Fair value as a % of principal           107.9 %              - %         107.9 %         100.4 %              - %          100.4 %
Total loans and finance
receivables
Principal                          $ 2,300,656     $     11,873     $ 2,312,529     $ 1,366,880     $      8,284     $  1,375,164
Fair value                           2,460,851           17,860       2,478,711       1,408,703           10,824        1,419,527
Fair value as a % of principal           107.0 %          150.4 %         107.2 %         103.1 %          130.7 %          103.2 %




(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 June 30, 2022 and 2021, the ratio of fair value as a percentage of principal
was 107.0% and 103.1%, respectively, on company owned loans and finance
receivables and 107.2% and 103.2%, 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 portfolio,
                                       29
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partially offset by the impact of accelerated lending in the consumer portfolio, particularly to new customers who are at higher risk of being charged.

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 June 30, 2022
and 2021:

                                                                   As of June 30,
                                                                  2022         2021

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

                       $  2,085     $  1,774
Small business loans and finance receivables                      36,757    

31.126

Total loans and finance receivables(b)                          $  4,547     $  3,696




(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
$4,547 out $3,696 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
                                                                   June 30,
                                                               2022          2021

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

                $      659     $    612
Small business loans and finance receivables(c)                 15,828      

15,737

Total loans and finance receivables(b)                      $    1,638     $  1,409




(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 $1,638
from $1,409 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):

                                       30
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                                                        2021                                     2022
                                        Second           Third          Fourth           First          Second
                                        Quarter         Quarter         Quarter         Quarter         Quarter
Ending combined loans and finance
receivables, including principal
and accrued fees/interest
outstanding:
Company owned                         $ 1,416,533     $ 1,650,771     $ 1,944,263     $ 2,169,140     $ 2,377,514
Guaranteed by the Company(a)                9,655          13,239          13,750          11,858          13,997
Ending combined loan and finance
receivables balance(b)                $ 1,426,188     $ 1,664,010     $ 1,958,013     $ 2,180,998     $ 2,391,511
> 30 days delinquent                       81,883          90,782         103,213         113,798         121,459
> 30 days delinquency rate                    5.7 %           5.5 %           5.3 %           5.2 %           5.1 %




(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
                                       Second         Third         Fourth         First          Second
                                       Quarter       Quarter       Quarter        Quarter         Quarter
Consumer loans and finance
receivables:
Consumer combined loan and finance
receivable principal balance:
Company owned                         $ 585,087     $ 709,781     $  867,751     $  888,657     $   936,601
Guaranteed by the Company(a)              8,284        11,354         11,790         10,027          11,873
Total combined loan and finance
receivable principal balance(b)       $ 593,371     $ 721,135     $  879,541     $  898,684     $   948,474
Consumer combined loan and finance
receivable fair value balance:
Company owned                         $ 623,975     $ 723,553     $  890,144     $  934,351     $   989,128
Guaranteed by the Company(a)             10,824        16,921         18,813         14,433          17,860
Ending combined loan and finance
receivable fair value balance(b)      $ 634,799     $ 740,474     $  908,957     $  948,784     $ 1,006,988
Fair value as a % of
principal(b)(c)                           107.0 %       102.7 %        103.3 %        105.6 %         106.2 %
Consumer combined loan and finance
receivable balance, including
principal and accrued fees/interest
outstanding:
Company owned                         $ 630,203     $ 768,964     $  927,673     $  951,560     $ 1,004,847
Guaranteed by the Company(a)              9,655        13,239         13,750         11,858          13,997
Ending combined loan and finance
receivable balance(b)                 $ 639,858     $ 782,203     $  941,423     $  963,418     $ 1,018,844
Average consumer combined loan and
finance receivable balance,
including principal and accrued
fees/interest outstanding:
Company owned(d)                      $ 580,704     $ 702,818     $  836,147     $  953,108     $   966,816
Guaranteed by the Company(a)(d)           7,585        11,366         13,212         12,960          12,591
Average combined loan and finance
receivable balance(b)(d)              $ 588,289     $ 714,184     $  849,359     $  966,068     $   979,407

Revenue                               $ 174,512     $ 215,432     $  243,570     $  248,547     $   253,043
Change in fair value                    (49,708 )     (97,061 )     (104,715 )     (116,767 )      (133,078 )
Net revenue                             124,804       118,371        138,855        131,780         119,965
Net revenue margin                         71.5 %        54.9 %         57.0 %         53.0 %          47.4 %

Delinquencies:
> 30 days delinquent                  $  26,201     $  45,804     $   59,312     $   70,480     $    72,300
> 30 days delinquent as a % of
combined loan and finance
receivable balance(b)(c)                    4.1 %         5.9 %          6.3 %          7.3 %           7.1 %

Charge-offs:
Charge-offs (net of recoveries)       $  27,050     $  57,836     $  112,582     $  137,224     $   134,524
Charge-offs (net of recoveries) as
a % of average combined loan and
finance receivable balance(b)(d)            4.6 %         8.1 %         13.3 %         14.2 %          13.7 %




(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 June 30, 2022 increased
59.2% to $1,018.8 million compared to $639.9 million at June 30, 2021, due
primarily to increased originations
                                       31
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into 2021 and into 2022 after strategically reducing new issuance at the start of the COVID-19 pandemic to mitigate risks associated with the pandemic.


The percentage of loans greater than 30 days delinquent increased to 7.1% at
June 30, 2022, compared to 4.1% at June 30, 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 13.7% for the current quarter, compared to 4.6% 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 106.2% at June 30, 2022, compared to 107.0% at June 30,
2021 and 105.6% at March 31, 2022. The increase from March 31, 2022 was
primarily driven by a slight decrease in past due loans. 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
                                       Second         Third         Fourth           First          Second
                                       Quarter       Quarter        Quarter         Quarter         Quarter
Small business loans and finance
receivables:
Total loan and finance receivable
principal balance                     $ 781,793     $ 876,668     $ 1,010,675     $ 1,210,389     $ 1,364,055
Ending loan and finance receivable
fair value balance                      784,728       911,729       

1,074,546 1,297,533 1,471,723 Fair Value % of Capital(a) 100.4% 104.0% 106.3% 107.2% 107.9%


Ending loan and finance receivable
balance, including principal and
accrued fees/interest outstanding     $ 786,330     $ 881,807     $ 1,016,590     $ 1,217,580     $ 1,372,667

Average loan and finance receivable
balance(b)                            $ 739,378     $ 837,606     $   956,110     $ 1,122,609     $ 1,288,384

Revenue                               $  85,561     $ 100,610     $   115,063     $   132,594     $   149,909
Change in fair value                     45,078        24,515          22,804           1,138          (8,764 )
Net revenue                             130,639       125,125         137,867         133,732         141,145
Net revenue margin                        152.7 %       124.4 %         

119.8% 100.9% 94.2%

delay:

> 30 days delinquent                  $  55,682     $  44,978     $    43,901     $    43,318     $    49,159
> 30 days delinquent as a % of loan
balance(a)                                  7.1 %         5.1 %           4.3 %           3.6 %           3.6 %

Withdrawals:

Charge-offs (net of recoveries)       $   5,102     $   7,060     $     7,677     $    20,860     $    27,867
Charge-offs (net of recoveries) as
a % of average loan and finance
receivable balance(b)                       0.7 %         0.8 %           0.8 %           1.9 %           2.2 %



(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 June 30, 2022 increased 74.6%
to $1,372.7 million compared to $786.3 million at June 30, 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 June 30,
2022, compared to 7.1% at June 30, 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.
                                       32
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Charge-offs (net of recoveries) as a percentage of average loan balance
increased to 2.2% for the current quarter, compared to 0.7% in the prior year
quarter, due primarily to 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 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 small business loans and
finance receivables was 107.9% at June 30, 2022, compared to 100.4% at June 30,
2021 and 107.2% at March 31, 2022. The increase from March 31, 2022 was due
primarily to strong credit metrics, including low charge-offs. The ratio of fair
value as a percentage of principal has improved for the legacy Enova portfolio
since the second quarter of 2020 and the OnDeck portfolio since acquisition.

business expenses

Total spending has increased $38.7 millionor 28.3%, too $175.1 million in the current quarter, compared to $136.4 million in the prior-year quarter.


Marketing expense increased to $91.5 million in the current quarter compared to
$55.2 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 $42.3 million in the current quarter compared to $35.0 million in the prior-year quarter, primarily due to higher variable insurance costs due to increased lending.


General and administrative expense decreased to $33.7 million in the current
quarter compared to $38.7 million in the prior year quarter, due primarily to
synergies achieved following the October 2020 acquisition of OnDeck.

Depreciation and amortization expense was fairly flat compared to the prior year quarter.


Nonoperating Items

Interest expense, net increased $5.5 million, or 28.5%, to $24.9 million in the
current quarter compared to $19.4 million in the prior year quarter. The
increase was due primarily to an increase in the average amount of debt
outstanding, which increased $783.3 million to $1,769.4 million during the
current quarter from $986.1 million during the prior year quarter, partially
offset by a decrease in the weighted average interest rate on our outstanding
debt to 5.77% during the current quarter from 7.81% during the prior year
quarter.

Equity method investment income increased $4.8 million, or 329.8%, to $6.3
million in the current quarter compared to $1.5 million in the prior year
quarter. In the current quarter, Linear sold its operating company, resulting in
a gain of $11.0 million, which was partially offset by a $4.4 million loss on
the sale of OnDeck Canada.

Provision for Income Taxes

The effective tax rate of 24.9% in the current quarter was higher than the 22.4%
rate recorded in the prior year quarter due primarily to higher nondeductible
executive compensation, along with the nondeductible loss on the sale of OnDeck
Canada.

As of June 30, 2022, the balance of unrecognized tax benefits was $64.7 million
which is included in "Accounts payable and accrued expenses" on the consolidated
balance sheet, $10.4 million of which, if recognized, would favorably affect the
effective tax rate in the period of recognition. We had $39.1 million and $44.1
million of unrecognized tax benefits as of June 30, 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.
                                       33
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net income


Net income decreased $27.8 million, or 34.6%, to $52.4 million during the
current quarter compared to $80.2 million during the prior year quarter. The
decrease was due primarily to higher costs due to growth in the size of the
business coupled with a lower, but more normalized net revenue margin in the
current quarter.

SIX MONTHS OVER JUNE 30, 2022 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2021

Sales and Net Sales


Revenue increased $269.5 million, or 51.4%, to $793.7 million for the six-month
period ended June 30, 2022, or current six-month period, as compared to $524.2
million for the six-month period ended June 30, 2021, or prior year six-month
period. The increase was driven by a 75.3% increase in revenue from our small
business portfolio and a 40.8% 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 six-month period was $533.2 million compared to
$497.5 million for the prior year six-month period. Our consolidated net revenue
margin was 67.2% for the current six-month period compared to 94.9% for the
prior year six-month period. The net revenue margin in the prior year six-month
period 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
June 30, 2022, the net revenue margin in the current six-month period was in a
more normalized range.

The following table shows the sales and net sales components broken down by product for the current nine-month period and the nine-month period of the previous year (in thousands):


                                            Six Months Ended June 30,
                                               2022              2021         $ Change       % Change
Revenue by product:
Consumer loans and finance receivables
revenue                                   $      501,590       $ 356,249     $  145,341           40.8 %
Small business loans and finance
receivables revenue                              282,503         161,121        121,382           75.3
Total loans and finance receivables
revenue                                          784,093         517,370        266,723           51.6
Other                                              9,628           6,794          2,834           41.7
Total revenue                                    793,721         524,164        269,557           51.4
Change in fair value                            (260,460 )       (26,665 )     (233,795 )        876.8
Net revenue                               $      533,261       $ 497,499     $   35,762            7.2 %

Revenue by product (% to total):
Consumer loans and finance receivables
revenue                                             63.2 %          68.0 %
Small business loans and finance
receivables revenue                                 35.6            30.7
Total loans and finance receivables
revenue                                             98.8            98.7
Other                                                1.2             1.3
Total revenue                                      100.0           100.0
Change in fair value                               (32.8 )          (5.1 )
Net revenue                                         67.2 %          94.9 %


Average Loan 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 six-month period compared to the prior year six-month
period :

                                                              Six Months Ended
                                                                  June 30,
                                                              2022         2021

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

                $    659     $  

558

Small business loans and finance receivables(c)               16,500       

15.006

Total loans and finance receivables(b)                      $  1,661     $  1,348



(a) Average Lending Amount is statistical information not included in our consolidated financial statements.

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(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) Represents the average amount of each incremental draw on line of credit
accounts.

The average loan origination amount increased to $1,661 from $1,348 during the
current six-month period compared to the prior year six-month period, due
primarily to the gradual easing of restrictions on loan amounts as risks from
the COVID-19 pandemic abated as well as an increase in the mix of higher dollar
amount loans and finance receivables to small businesses.

total expenses

Total spending has increased $101.7 millionor 40.5%, too $353.0 million in the current half year, compared to $251.3 million six-month period in the previous year.


Marketing expense increased to $184.7 million in the current six-month period
compared to $83.8 million in the prior year six-month period. The increase was
due primarily to our efforts to capture increasing market demand for loan
products in the current six-month period. The prior year six-month period was
abnormally low due to our strategic actions to mitigate risks associated with
the COVID-19 pandemic.

Operating and technology expenses increased $83.0 million in the current half year compared to $70.6 million in the prior-year period primarily due to higher variable underwriting costs due to increased lending.


General and administrative expense decreased $14.6 million, or 17.6%, to $68.2
million in the current six-month period compared to $82.8 million in the prior
year six-month period, due primarily to synergies achieved following the October
2020 acquisition of OnDeck.

Depreciation expenses increased $3.0 million or 21.4% compared to the same period last year, driven primarily by additional internally developed software that went live and property, plant and equipment and intangible assets acquired with Pangea.

Non-operational items


Interest expense, net increased $8.1 million, or 20.6%, to $47.4 million in the
current six-month period compared to $39.3 million in the prior year six-month
period. The increase was due primarily to an increase of $700.4 million in the
average amount of debt outstanding to $1,666.7 million during the current
six-month period from $966.3 million during the prior year six-month period,
partially offset by a decrease in the weighted average interest rate on our
outstanding debt to 5.84% during the current six-month period from 8.20% during
the prior year six-month period.

Equity method investment income increased $4.7 million, or 227.8%, to $6.7
million in the current six-month period compared to $2.0 million in the prior
year six-month period. In the current six-month period, Linear sold its
operating company, resulting in a gain of $11.0 million, which was partially
offset by a $4.4 million loss on the sale of OnDeck Canada.

Provision for income taxes


The effective tax rate of 24.1% in the current six-month period was lower than
the effective tax rate of 24.6% in the prior year six-month period due primarily
to stock-based compensation deductions that occurred at favorable fair market
values.

Net Income

Net income went down $51.3 millionor 32.8%, too $104.8 million during the current half year compared to $156.1 million during the prior-year six-month period. The decrease was primarily due to higher expenses due to business size growth coupled with a lower but more normal net sales margin in the current six month period.

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. As of June 30, 2022, we had cash, cash
equivalents, and restricted cash of $213.8 million, of which $69.7 million was
restricted, compared to $225.9 million, of which $60.4 million was 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. In late June
2022, we entered into a new $420.0 million loan securitization facility and
increased the aggregate principal on its existing secured revolving credit
agreement while extending its term. As of June 30, 2022, we had committed and
undrawn funding capacity of $803.1 million. Based on numerous stressed-case
modeling
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scenarios, we assume that we will have sufficient liquidity to conduct our business for the foreseeable future. Additionally, we have no recourse obligations due until
Sep 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. On June 23, 2022 we entered into an
additional amendment to our Credit Agreement that, among other things, increased
the borrowing capacity to $440.0 million, with a $20.0 million letter of credit
sublimit and $10.0 million swingline loan sublimit. The Credit Agreement bears
interest, at our option, at the base rate plus 0.75% or the Secured Overnight
Financing Rate plus 3.50%. In addition to customary fees for a credit facility
of this size and type, the Credit Agreement provides for payment of a commitment
fee calculated with respect to the unused portion of the commitment, and ranges
from 0.15% per annum to 0.50% per annum depending on usage. The Credit Agreement
contains certain prepayment penalties if it is terminated on or before the first
and second anniversary dates, subject to certain exceptions. The Credit
Agreement matures on June 30, 2026. As of July 27, 2022, our available
borrowings under the Credit Agreement were $155.3 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 July 27, 2022, we had committed and
undrawn funding capacity of $598.7 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 June 30, 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 increased by $15.0 million to $1,108.1 million at
June 30, 2022 from $1,093.1 million at December 31, 2021. The increase of
stockholders' equity was driven primarily by net income for the six months ended
June 30, 2022 and, to a lesser extent, stock-based compensation expense,
partially offset by repurchases of our outstanding common stock. Our book value
per share outstanding increased to $34.43 at June 30, 2022 from $32.01 at
December 31, 2021, which was primarily driven primarily 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 six months ended June 30,
2022, we had $99.2 million in 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
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Capital requirements for short-term investments, deposit accounts or other arrangements aimed at preserving the capital balance and maintaining adequate liquidity. Our excess cash may be invested primarily in overnight sweep accounts, money market instruments or similar arrangements that offer competitive returns consistent with our policies and market conditions.


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 June 30, 2022 (dollars
in thousands).

                                                        Weighted
                                                         average
                                                        interest     Borrowing           Principal
                                     Maturity date       rate(a)      capacity          outstanding
Funding Debt:
2018-1 Securitization Facility         March 2027   (b)   4.91%          200,000   (h)        150,000
2018-2 Securitization Facility         July 2025    (c)   5.30%          225,000   (i)        189,327
2019-A Securitization Notes            June 2026          7.62%            5,343                5,343

ODR 2021-1 Securitization Facility Nov 2024 (d) 1.18% 200,000 (j) 107,000 ODR 2022-1 Securitization Facility June 2025 (e) 2.26% 420,000

                    -

RAOD Securitization Facility December 2023 (f) 3.63% 236,842 (k) 202,632 ODAST III Securitization Bonds May 2027 (g) 2.07% 300,000

              300,000
Total funding debt                                        3.42%     $  1,587,185       $      954,302
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 2026          5.50%          440,000   (l)        269,000
Total corporate debt                                      7.60%     $  1,065,000       $      894,000



(a) The weighted average interest rate is determined based on the rates and
principal balances on June 30, 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 June 2024.
(f) The period during which new borrowings may be made under this facility
expires in December 2022.
(g) The period during which new borrowings may be made under this facility
expires in April 2024.
(h) During the current six-month period we amended this facility to increase the
maximum borrowing capacity from $150.0 million to $200.0 million.
(i) During the current six-month period we amended this facility to increase the
maximum borrowing capacity from $150.0 million to $225.0 million.
(j) During the current six-month period we amended this facility to increase the
maximum borrowing capacity from $150.0 million to $200.0 million.
(k) During the current six-month period we amended this facility to increase the
maximum borrowing capacity from $177.6 million to $236.8 million.
(l) During the current quarter we amended the Revolving line of credit to
increase the borrowing capacity from $310.0 million to $440.0 million.
Additionally, we had an outstanding letter of credit under the Revolving line of
credit of $0.8 million as of June 30, 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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