curo-20231102
false000171129100017112912023-11-022023-11-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_______________________________________________________________________
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): November 2, 2023
________________________________________________________________________
CURO GROUP HOLDINGS CORP
(Exact Name of Registrant as Specified in Its Charter)
________________________________________________________________________
Delaware001-3831590-0934597
(State or other Jurisdiction of Incorporation)(Commission File Number)(IRS Employer Identification No.)
200 W Hubbard Street, 8th Floor, Chicago, IL
60654
(Address of Principal Executive Offices)(Zip Code)

(312) 470-2000
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
________________________________________________________________________
Check the appropriate box below if the Form8-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 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common stockCURONYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule12b-2of the Securities Exchange Act of 1934(§240.12b-2of 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.  ☐




ITEM 2.02     Results of Operations and Financial Condition

On November 2, 2023, CURO Group Holdings Corp. (the “Company”) issued a press release announcing its financial results for the three month and nine months ended September 30, 2023. A copy of the press release and a supplemental presentation that will be used in conjunction with its earnings call with investors on November 2, 2023 is attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and is incorporated herein by reference.

The information in this item, including Exhibit 99.1 and Exhibit 99.2, is being furnished, not filed. Accordingly, the information in this item will not be incorporated by reference into any registration statement unless specifically identified therein as being incorporated by reference therein.
ITEM 9.01     Financial Statements and Exhibits

(d). Exhibits
Exhibit NumberDescription
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

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 on this 2nd day of November, 2023.

                        CURO Group Holdings Corp.
                        By: /s/ Ismail Dawood______
                        Ismail Dawood
                        Chief Financial Officer

Document

CURO Group Holdings Corp. Reports
Third Quarter 2023 Financial Results

-Gross loans receivables increased 2% sequentially to $1.25 billion-
-Total revenue of $167.9 million-
-Net charge-off improvement of 110 bps to 17.7%-



Chicago, Illinois--November 2, 2023 - CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), an omni-channel consumer finance company serving consumers in the U.S. and Canada, today announced financial results for its third quarter ended September 30, 2023.

“The third quarter marked another significant milestone with the sale of the Flexiti business which allows us to focus on being an industry leader in Direct Lending in the U.S. and Canada,” said Doug Clark, Chief Executive Officer at CURO. “We completed our conversion to a single loan management system across our U.S. footprint and continue to invest in our technology infrastructure which we believe will accelerate our path to profitability. We continue to execute on our plan outlined at the beginning of the year, which resulted in meeting our expectations for the third consecutive quarter. Our disciplined underwriting, prudent originations and enhanced servicing have resulted in improved credit quality metrics while at the same time allowing us to grow our loan portfolio. We diligently monitor challenges presented by the macro environment and will remain vigilant on executing our long-term strategy which has exciting opportunities in both the U.S and Canada.”

Third Quarter 2023 Consolidated Summary Results
Current and prior period financial information is presented on a continuing operations basis, which excludes the results and positions of the Canada POS Lending segment due to the sale of the Flexiti business effective on August 31, 2023.
•Gross loans receivable increased $26.8 million, or 2%, sequentially, to $1.25 billion.
◦Gross loans receivable in the U.S. increased by 5%, driven by growth in the Company's larger dollar, longer term products.
◦Gross loans receivable in Canada decreased by 1%, due to fluctuations in foreign currency. On a constant currency basis, gross loans receivable in Canada increased by 2%.

•Net charge-off rate improved 110 bps sequentially, to 17.7%, and 70 bps year-over-year.
◦The improvement was primarily driven by increased credit quality as a result of credit tightening and servicing optimization, as well as the Company's continued product mix shift toward better credit quality, larger balance and longer duration loans.

•31+ Days past due delinquencies as of September 30, 2023 remained stable vs prior quarter.

•Revenue for the quarter of $167.9 million increased slightly vs the prior quarter.

•Provision for credit losses for the quarter was $49.0 million, a decrease of $14.7 million, or 23%, compared to the prior quarter.
◦The reduction in provision for credit losses was driven by a reduction in allowance for credit losses of $10.6 million primarily due to improving late-stage roll rates and estimated future macroeconomic impacts on credit losses, partially offset by portfolio growth during the quarter and lower net charge-offs.

•Total operating expenses for the quarter were $94.2 million, an increase of $2.9 million, or 3%, sequentially, and the operating expense to receivables ratio was 30.4% for the quarter, a slight increase from prior quarter.
◦The increase includes non-recurring charges of $6.5 million recognized during the third quarter of 2023.

•Interest expense for the quarter was $55.8 million, an increase of $5.3 million, or 10.6%, compared to the prior quarter.
◦The increase was primarily related to higher interest rates as well as an increased level of average debt due to the May 2023 capital raise.


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As of or for the Quarter Ended
Sep 30,Jun 30,Mar 31,Dec 31,Sep 30,
Delinquency and Loss Ratios
20232023202320222022
31-60 days delinquency ratio2.4 %2.5 %2.1 %2.4 %2.8 %
61-90 days delinquency ratio1.7 %1.7 %1.8 %1.8 %2.0 %
91+ days delinquency ratio4.4 %4.1 %4.4 %3.4 %3.5 %
Net charge-offs17.7 %18.8 %15.6 %20.9 %18.4 %

Funding and Liquidity

As of September 30, 2023, principal debt balances outstanding were $2.0 billion, consisting of 57% of fixed rate debt and 43% of variable rate debt.

As of September 30, 2023, available capital resources were approximately $285.3 million, comprised of $82.6 million in unrestricted Cash and cash equivalents, $127.9 million in unused borrowing capacity for growth and $74.8 million of unencumbered Gross loans receivable.

About CURO
CURO Group Holdings Corp. (NYSE: CURO) is a leading consumer credit lender serving U.S. and Canadian customers for over 25 years. Our roots in the consumer finance market run deep. We’ve worked diligently to provide customers a variety of convenient, easily accessible financial services. Our decades of diversified data power a hard-to-replicate underwriting and scoring engine, mitigating risk across the full spectrum of credit products. We operate under a number of brands including Cash Money®, LendDirect®, Heights Finance, Southern Finance, Covington Credit, Quick Credit and First Heritage Credit.
Conference Call
CURO will host a conference call to discuss these results at 8:30 a.m. Eastern Time on Thursday, November 2, 2023. The live webcast of the call can be accessed at the CURO Investor Relations website at http://ir.curo.com/.
You may access the call at 1-416-764-8624 (Toll free: 1-888-259-6580). Please ask to join the CURO Group Holdings call. An archived version of the webcast will be available on the CURO Investors website for 90 days.

Final Results
The financial results presented and discussed herein are on a preliminary and unaudited basis; final unaudited data will be included in the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2023.

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Table 1 - Consolidated Statements of Operations
(in thousands, except per share data, unaudited)Three Months Ended,
Sep 30,Jun 30,Mar 31,Dec 31,Sep 30,
20232023202320222022
Revenue
Interest and fees revenue$143,493 $141,766 $144,304 $150,350 $155,940 
Insurance and other income24,370 25,250 25,064 31,575 30,469 
Total revenue167,863 167,016 169,368 181,925 186,409 
Provision for losses49,009 63,755 48,364 77,724 65,020 
Net revenue118,854 103,261 121,004 104,201 121,389 
Operating Expenses— 
Salaries and benefits52,148 53,144 56,619 60,149 49,179 
Occupancy10,454 10,885 11,344 11,785 12,419 
Advertising2,819 1,967 1,999 3,383 4,676 
Direct operations12,176 12,032 9,745 7,921 8,288 
Depreciation and amortization5,390 5,339 5,390 5,329 5,683 
Other operating expense11,207 7,918 18,054 23,065 22,595 
Total operating expenses94,194 91,285 103,151 111,632 102,840 
Other expense (income)
Interest expense55,798 50,460 44,045 41,180 38,155 
Loss from equity method investment1,453 2,134 3,413 1,932 2,309 
Goodwill impairment— — — 107,827 — 
Extinguishment or modification of debt costs— 8,864 — 24 3,702 
Gain on sale of business— — 2,027 — (68,443)
Miscellaneous expenses— 1,435 — — — 
Total other expense (income)57,251 62,893 49,485 150,963 (24,277)
(Loss) income from continuing operations before income taxes(32,591)(50,917)(31,632)(158,394)42,826 
Provision for income taxes from continuing operations1,021 3,147 23,277 (15,970)21,709 
Net (loss) income from continuing operations$ (33,612)$ (54,064)$ (54,909)$ (142,424)$ 21,117 
Net (loss) income from discontinued operations(70,830)(5,263)(4,562)(43,969)4,536 
Net (loss) income$ (104,442)$ (59,327)$ (59,471)$ (186,393)$ 25,653 
Basic (loss) earnings per share:
Continuing operations$ (0.81)$(1.32)$(1.35)$(3.52)$0.52 
Discontinued operations$ (1.72)$(0.13)$(0.11)$(1.09)$0.11 
Diluted (loss) earnings per share:
Continuing operations$(0.81)$(1.32)$(1.35)$(3.52)$0.52 
Discontinued operations$(1.72)$(0.13)$(0.11)$(1.09)$0.11 
Weighted average common shares outstanding:
Basic41,267 41,002 40,783 40,428 40,479 
Diluted41,267 41,002 40,783 40,428 40,835 

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Table 2 - Consolidated Balance Sheets
As of
Sep 30,Jun 30,Mar 31,Dec 31,Sep 30,
(in thousands, unaudited)20232023202320222022
ASSETS
Cash and cash equivalents$ 82,550 $ 101,033 $ 40,449 $ 50,856 $ 40,068 
Restricted cash53,818 76,375 90,211 59,645 66,962 
Gross loans receivable 1,254,401 1,227,615 1,209,576 1,254,395 1,204,157 
Less: Allowance for loan losses(199,739)(210,292)(202,757)(81,185)(69,535)
Loans receivable, net1,054,662 1,017,323 1,006,819 1,173,210 1,134,622 
Income taxes receivable58,064 20,854 22,737 23,984 13,561 
Prepaid expenses and other61,441 42,131 45,592 51,081 62,685 
Property and equipment, net23,903 25,826 27,244 29,232 34,715 
Investment in Katapult16,915 18,368 20,502 23,915 25,848 
Right of use asset - operating leases51,413 53,042 51,615 58,177 61,642 
Deferred tax assets14,194 15,304 13,623 18,138 4,817 
Goodwill276,269 277,069 276,487 276,269 387,298 
Intangibles, net74,336 74,007 71,798 70,913 69,989 
Other assets9,387 6,673 6,785 8,370 8,207 
Assets, discontinued operations— 1,016,832 947,925 945,403 866,939 
Total Assets$ 1,776,952 $ 2,744,837 $ 2,621,787 $ 2,789,193 $ 2,777,353 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable and accrued liabilities $62,992 $54,169 $60,890 $45,595 $46,666 
Deferred revenue2,358 3,370 3,493 3,467 3,256 
Lease liability - operating leases51,579 53,182 52,061 59,396 62,893 
Income taxes payable2,537 (1,242)— — — 
Accrued interest 20,953 39,306 20,090 38,460 18,048 
Debt2,024,934 1,988,173 1,888,407 1,882,608 1,804,946 
Other long-term liabilities9,620 10,017 10,045 11,736 11,563 
Liabilities, discontinued operations — 866,235 815,617 802,065 705,529 
Total Liabilities$ 2,174,973 $ 3,013,210 $ 2,850,603 $ 2,843,327 $ 2,652,901 
Total Stockholders' (Deficit) Equity(398,021)(268,373)(228,816)(54,134)124,452 
Total Liabilities and Stockholders' (Deficit) Equity$ 1,776,952 $ 2,744,837 $ 2,621,787 $ 2,789,193 $ 2,777,353 

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Table 3 - Consolidated Portfolio Performance
(in thousands, except percentages, unaudited)Q3 2023Q2 2023Q1 2023Q4 2022Q3 2022
Gross loans receivable
Revolving LOC$ 469,041$ 472,902$ 461,443$ 451,077$ 439,117
Installment loans 785,360754,713748,133803,318765,041
Total gross loans receivable$ 1,254,401$ 1,227,615$ 1,209,576$ 1,254,395$ 1,204,158
Lending Revenue
Revolving LOC$ 51,039$ 49,483$ 49,092$ 49,915$ 52,461
Installment loans92,45492,28395,212100,435103,478
Total lending revenue$ 143,493$ 141,766$ 144,304$ 150,350$ 155,939
Lending Provision
Revolving LOC$ 19,031$ 27,089$ 15,539$ 29,620$ 28,408
Installment loans28,46435,17131,13946,44233,511
Total lending provision$ 47,495$ 62,260$ 46,678$ 76,062$ 61,919
NCOs
Revolving LOC$ 22,023$ 21,780$ 6,234$ 26,715$ 24,793
Installment loans 33,34235,48341,07838,16829,783
Total NCOs$ 55,365$ 57,263$ 47,312$ 64,883$ 54,576
NCO rate (annualized) (1)
Revolving LOC18.6%18.7%5.5%23.8%20.9%
Installment loans 17.2%18.9%21.5%19.3%16.7%
Total NCO rate17.7%18.8%15.6%20.9%18.4%
ACL rate (2) (3)
Revolving LOC25.4%26.6%25.6 %8.4 %7.9 %
Installment loans 10.3%11.2%11.3 %5.4 %4.6 %
Total ACL rate15.9%17.1%16.8 %6.5 %5.8 %
31+ days past-due rate (2)
Revolving LOC8.6%8.5%8.4 %4.1 %5.1 %
Installment loans 8.5%8.1%8.2 %9.6 %10.2 %
Total past-due rate8.5%8.3%8.3 %7.6 %8.3 %
(1) We calculate NCO rate as total quarterly NCOs divided by Average gross loans receivable, then we annualize the rate. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.
(2) We calculate (i) ACL rate and (ii) 31+ days past-due rate as the respective totals divided by gross loans receivable at each quarter end.
(3) We adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" on January 1, 2023, which requires us to estimate the lifetime expected credit loss on financial instruments. Our previous model required the recognition of credit losses when it was probable that a loss had been incurred.

Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements include projections, estimates and assumptions about various matters, such as future financial and operational performance, including our belief in the drivers of accelerating our path to profitability and executing on our long-term strategy. In addition, words such as “guidance,” “estimate,” “anticipate,” “believe,” “forecast,” “step,” “plan,” “predict,” “focused,” “project,” “is likely,” “expect,” "anticipate," “intend,” “should,” “will,” “confident,” variations of such words and similar expressions are intended to identify forward-looking statements. Our ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of our control, that could cause actual results to differ materially from those in the forward-looking statements, including: risks relating to the uncertainty of projected financial and operational information and forecasts, including errors in our internal forecasts; our ability to manage growth; our dependence on third-party lenders to provide the cash we need to fund our loans and our ability to affordably access third-party financing; our level of indebtedness; the effects of competition on our business; our ability to attract and retain customers; global economic, market, financial, political or health conditions or events; actions of regulators and the impact of those actions on our business; our ability to successfully integrate acquired businesses; our ability to protect our proprietary technology and analytics and keep up with that of our competitors; disruption of our information technology systems that
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adversely affect our business operations; ineffective pricing of the credit risk of our prospective or existing customers; inaccurate information supplied by customers or third parties that could lead to errors in judging customers’ qualifications to receive loans; improper disclosure of customer personal data; failure of third parties who provide products, services or support to us; disruption to our relationships with banks and other third-party electronic payment solutions providers as well as other factors discussed in our filings with the Securities and Exchange Commission. These projections, estimates and assumptions may prove to be inaccurate in the future. These forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. There may be additional risks that we presently do not know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. We undertake no obligation to update, amend or clarify any forward-looking statement for any reason.

Investor Relations:
Email: IR@curo.com
(CURO-NWS)
6

q3-23earningspresentatio
Q3 2023 Earnings Presentation November 2, 2023

 
IMPORTANT: You must read the following information before continuing to the rest of the presentation, which is being provided to you for informational purposes only. Note: Current and prior period financial information is presented on a continuing operations basis, which excludes the results and positions of the Canada POS Lending segment due to the sale of Flexiti on August 31, 2023. Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements include projections, estimates and assumptions about various matters such as our future financial and operational performance, including our fourth quarter 2023 and full year 2024 outlook, liquidity and capacity, various target ranges, NIM inflection points and the drivers of our long-term path to profitability. In addition, words such as “estimate,” “believe,” “forecast,” “predict,” “project,” “intend,” “should,” "expect" and variations of such words and similar expressions are intended to identify forward-looking statements. Our ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of our control, that could cause actual results to differ materially from those in the forward-looking statements, including, risks relating to the uncertainty of projected financial information and forecasts, our level of indebtedness; our dependence on third-party lenders to provide the cash we need to fund our indebtedness and our ability to affordably access third-party financing; the impact of regulations on our business; the effects of competition on our business; our ability to attract and retain customers; global economic, market, financial, political or public health conditions or events; our ability to integrate acquired businesses; our ability to protect our proprietary technology and analytics; disruption of our information technology systems; improper disclosure of customer personal data, as well as other factors discussed in our filings with the Securities and Exchange Commission. The foregoing factors, as well as other existing risk factors and new risk factors that emerge from time to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. Furthermore, the Company undertakes no obligation to update, amend or clarify forward-looking statements. Non-GAAP Financial Measures In addition to the financial information prepared in conformity with U.S. GAAP, we provide certain “non-GAAP financial measures.” Such measures are intended as a supplemental measure of our performance that are not required by or presented in accordance with GAAP. We present these non-GAAP financial measures because we believe that, when viewed with our GAAP results and the accompanying reconciliation, such measures provide useful information for comparing our performance over various reporting periods as they remove from our operating results the impact of items that we believe do not reflect our core operating performance. These non-GAAP financial measures are not substitutes for any GAAP financial measure and there are limitations to using them. Although the Company believes that these non-GAAP financial measures can make an evaluation of our operating performance more consistent because they remove items that do not reflect our core operations, other companies in the Company’s industry may define their own non- GAAP financial measures differently or use different measures. As a result, it may be difficult to use any non-GAAP financial measure to compare the performance of other companies to our performance. The non-GAAP financial measures presented in these slides should not be considered as measures of the income generated by our business or discretionary cash available to us to invest in the growth of our business. Our management compensates for these limitations by reference to GAAP results and using these non- GAAP financial measures as supplemental measures. Reconciliation of non-GAAP metrics to the closest comparable GAAP metrics are included in the Appendix. NOTE: All dollar amounts for Canada in this presentation are in U.S. Dollars. Unless otherwise noted tables and charts may not sum due to rounding. Disclaimer 2

 
3Q23 Highlights Strengthen our Foundation Execute with ExcellenceGrow Responsibly 3 • Receivables growth of 2% sequentially ◦ 5% growth in the U.S. ◦ 2% growth in Canada on a constant currency basis • Converted U.S. operations to a single loan management system • Recurring operating expenses declined sequentially • Exclusively focused on our Direct Lending business following the sale of Flexiti • Liquidity and capacity of $264 million at the end of Q3

 
Direct Lending Gross Loans Receivable $1,204 $1,254 $1,210 $1,228 $1,254 739 773 715 719 752 465 481 495 509 503 U.S. Canada 3Q22 4Q22 1Q23 2Q23 3Q23 Continued responsible receivables growth 4 ($ Millions) Note: In 3Q23, Loans receivable in Canada grew 2% vs prior quarter on a constant currency basis

 
Total Direct Lending NCOs $55 $65 $65 $57 $55 18.4% 20.9% 21.5% 18.8% 17.7% 3Q22 4Q22 1Q23 2Q23 3Q23 Canada $28 $30 $28 $27 $27 23.6% 25.6% 24.1% 21.5% 21.3% 3Q22 4Q22 1Q23 2Q23 3Q23 U.S. $28 $35 $38 $30 $28 15.6% 18.4% 20.2% 16.9% 15.2% 3Q22 4Q22 1Q23 2Q23 3Q23 Credit quality improves year-over-year Highlights: • Net charge-offs improved sequentially and YTD primarily driven by credit tightening, servicing optimization and continued strategic mix shift to larger dollar, longer duration loans ($ Millions) Direct Lending NCOs by Geography 5 1 1Q23 NCOs excluding policy change. Including the change in charge-off policy, reported 1Q23 Direct Lending NCOs and NCO % were $47M and 15.6%, respectively, and $10M and 8.0%, respectively, in Canada 1 1

 
Canada $22 $19 $40 $42 $44 4.8% 4.0% 8.1% 8.3% 8.8% 3Q22 4Q22 1Q23 2Q23 3Q23 U.S. $78 $77 $60 $59 $63 10.5% 9.9% 8.4% 8.2% 8.3% 3Q22 4Q22 1Q23 2Q23 3Q23 Core delinquencies remain stable Highlights: • U.S. delinquency rates remained stable • Canadian increase primarily driven by installment and single pay loan products. Canadian open-end product remains stable on a sequential basis ($ Millions) Direct Lending 31+ DQs by Geography 6 1 Implemented change in charge-off policy in Canada during 1Q23 1 Total Direct Lending 31+ Days Past Due $100 $96 $100 $101 $107 8.3% 7.6% 8.3% 8.3% 8.5% 3Q22 4Q22 1Q23 2Q23 3Q23

 
% Change ($Millions, except per share data) 3Q23 2Q23 3Q22 Q/Q Y/Y Revenue $168 $167 $186 1 % (10) % Recourse (Unsecured) Interest Expense1 28 25 20 12 % 40 % Non-recourse (Secured) Interest Expense 28 26 18 8 % 56 % Net Interest Income $112 $117 $148 (4) % (24) % Operating Expenses 94 91 103 3 % (9) % Other Expense 1 12 (62) (92) % (102) % Pre-provision Income $16 $13 $108 23 % (85) % Net Charge-offs 55 57 55 (4) % — % Credit Changes2 (6) 7 10 (186) % (160) % Pre-tax Loss, Post-provison $(33) $(51) $43 (35) % (177) % Provision (Benefit) for Income Taxes 1 3 22 (67) % (95) % Net Loss from Continuing Operations $(34) $(54) $21 (37) % # Net Loss from Discontinued Operations $(71) $(5) $5 # # Net Loss $(104) $(59) $26 76 % # Diluted EPS Continuing Operations $(0.81) $(1.32) $0.52 Diluted EPS Discontinued Operations $(1.72) $(0.13) $0.11 Key Performance Metrics Net Revenue, Post-provision expense3 $119 $103 $121 NCO % 17.7 % 18.8 % 18.4 % NIM, Post Charge-offs, excl. recourse interest4 27.1 % 27.6 % 38.2 % OpEx Ratio5 30.4 % 30.0 % 34.9 % Average Gross Receivables $1,241 $1,219 $1,179 Summary 3Q23 Results Highlights: • Sequential and year-over-year growth in Average Gross Receivables • Sequential OpEx ratio improvement (excluding $6.5M of non-recurring charges during 3Q23) • Net charge-offs improved sequentially primarily driven by credit tightening, servicing optimization and continued strategic mix shift to larger dollar, longer duration loans # Greater than 200% or not meaningful Note: The above table may not sum due to rounding 1 Includes $5.0M paid-in-kind interest 2 Includes changes in allowance for credit losses. See Appendix for Reconciliation of Non-GAAP Metrics 3 Net Revenue, Post-provision expense = (Revenue) - (Net Charge-offs) - (Credit Changes) 4Net Interest Margin, Post Charge-offs = ((Net Interest Income) – (Net Charge-offs)) / (Average Receivables); excluding recourse debt annualized 5 Operating Expense Ratio = (Operating Expenses / Average Receivables); annualized on a reported basis 7

 
8 Decline in allowance rate driven improving late-stage roll rates Highlights: • Allowance for credit losses decreased primarily due to improving late-stage roll rates and estimated future macroeconomic impacts on credit losses, partially offset by portfolio growth during the quarter $70 $81 $203 $210 $200 5.8% 6.5% 16.8% 17.1% 15.9% Allowance for Credit Losses Allowance, as a % of Gross Loans Receivable 3Q22 4Q22 1Q23 2Q23 3Q23 ($ Millions) 1 CECL was adopted effective January 1, 2023 which resulted in a one-time increase in the allowance for credit losses 1

 
9 Net Interest Margin decreased slightly due to increased debt levels and higher rates $113 $96 $80 $84 $85 38.2% 30.9% 26.5% 27.6% 27.1% Net Interest Income, Post charge-offs, excluding Recourse Interest Expense Net Interest Margin, Post Charge-offs, excluding Recourse Interest Expense 3Q22 4Q22 1Q23 2Q23 3Q23 ($ Millions) Highlights: • Net interest margin, Post charge-offs, excluding Recourse Interest Expense decreased sequentially due to: ◦ Increased non-recourse debt levels and interest rates ◦ Decrease in yields due to continuing product mix shift to larger balance, longer duration loans ◦ All of which were partially offset by a decrease in net charge-offs Note: Net Interest Income, Post charge-offs, excl Recourse Interest Expense = (Revenue) - (Non-recourse Interest Expense)- (Net charge-offs) Net Interest Margin, Post Charge-offs, excl. Recourse Interest Expense = (Net Interest Income, Post charge-offs, excluding Recourse Interest Expense) / (Average Receivables); annualized 1 1Q23 excluding NCO policy change in Canada 1

 
Continued focus on expense management Highlights: • Operating expenses decreased vs prior quarter, when excluding $6.5M of non-recurring charges included in 3Q23 reported results • Includes $13M and $10M of non-recurring charges during 4Q22 and 1Q23, respectively ($ Millions) 10 Operating Expenses $103 $112 $103 $91 $94 3Q22 4Q22 1Q23 2Q23 3Q23 OpEx Ratio 34.9% 36.3% 33.5% 30.0% 30.4% 3Q22 4Q22 1Q23 2Q23 3Q23 1 OpEx Ratio = (Operating Expenses) / (Average Receivables); annualized 1 Highlights: • OpEx ratio declined 210bps to 28.3% in 3Q23, when adjusted for non-recurring expenses

 
Net Leverage & Interest Coverage 9.2x 16.1x 13.5x 19.5x 15.7x 1.3x 0.7x 0.8x 0.5x 0.6x Net Leverage Interest Coverage Ratio 3Q22 4Q22 1Q23 2Q23 3Q23 Liquidity and Capacity 1 See Appendix for definition of Net Leverage and Interest Coverage, which are Non-GAAP financial measures 2 Represents facility commitments to support growth, less funded amounts Liquidity and Capacity $257 $187 $200 $343 $264 150 76 69 166 128 67 60 90 76 54 40 51 40 101 83 Unused Capacity for Growth Restricted Cash Unrestricted Cash 3Q22 4Q22 1Q23 2Q23 3Q23 2 11 1 ($ Millions) Highlights: • Year-end 2023 unrestricted cash is expected to be $90-$140M • $90-$140M quarterly unrestricted cash balance expected during 2024

 
Outlook Strengthen our Foundation Execute with ExcellenceGrow Responsibly Cost of funds: ~$60M $90-$140M of unrestricted cash 4Q23 Targets: EOP Receivables: $1.26-$1.28B Revenue: $165-$175M Net Charge-off %: 16.5-18.5% Operating Expenses: $85-$95M 12 $90-$140M quarterly unrestricted cash balance Full Year 20241 8-12% EOP receivables growth NIM, post charge-offs, excl. recourse interest2: 26-28% Maintain 4Q23 operating expense run rate 1 Based on management's expectations for business performance and current macro conditions; subject to change if macro conditions change 2Net Interest Margin, Post Charge-offs, excl. Recourse Interest Expense = (Net Interest Income, Post charge-offs, excluding Recourse Interest Expense) / (Average Receivables); annualized

 
13 Performance KPIs 3Q23 Annualized Inflection point1 Long-term Target Range NIM, post charge-offs (excl. recourse interest)1 27% 28-30% 28-31% OpEx Ratio 30% 20-24% 20-22% Pre-tax ROA3 (3)% 4-10% 6-11% Net Leverage n/a n/a 5.0x-6.0x Average Receivables $1.25B ~$1.5B Pro-forma Pre-tax Income (excl. recourse interest) $(41) ~$100M Long-Term Path to Profitability • Increased margin due to higher secured loan mix • Lower NCOs Continue to scale while managing expenses Continue to build additional liquidity Key Drivers 1 Estimate of when CURO's NIM, post-charge offs excluding recourse interest expense, is able to cover 100% of our operating and interest expenses 2 Net Interest Margin, Post Charge-offs, excl. Recourse Interest Expense = (Net Interest Income, Post charge-offs, excluding Recourse Interest Expense) / (Average Receivables); annualized 3 Pre-tax ROA = (NIM post charge-offs excl. recourse interest) - (OpEx Ratio)

 
14 Appendix

 
15 Reconciliation of Non-GAAP Metrics: Credit Changes Net Charge-offs and Credit Changes ($Millions) 3Q22 4Q22 1Q23 2Q23 3Q23 Provision for Losses $65 $78 $48 $64 $49 Net Charge-offs $(55) $(65) $(47) $(57) $(55) Credit Changes $10 $13 $1 $7 $(6)

 
16 Reconciliation of Non-GAAP Metrics: OpEx Ratio, excluding non-recurring items ($Millions) 3Q23 Operating Expenses $94.2 Non-recurring expenses $(6.5) Operating expenses, excluding non-recurring expenses $87.7 Average Gross Receivables $1,241 OpEx Ratio, excluding non-recurring expenses; annualized 28.3 %

 
17 Direct Lending Revenue and Receivables by Geography Note: The above table may not sum due to rounding 3Q23 Direct Lending by Geography ($Millions) U.S. Canada Total Revenue $88 $80 $168 Less: Net Charge-offs 28 27 55 Less: Credit Changes (4) (2) (6) Net Revenue $64 $55 $119 Gross Loans Receivable $752 $503 $1,254

 
18 Reconciliation of Non-GAAP Metrics: Net Leverage and Interest Coverage Ratio 1 Includes changes in allowance for loan losses 2 Goodwill impairment charge recorded on the U.S Direct Lending reporting unit during Q422 3 Estimated fair value of share-based awards was recognized as non-cash compensation expense on a straight-line basis over the vesting period 4 Share of Katapult's U.S. GAAP net loss (income), recognized on a one quarter lag 5 Gain on the divestiture of the Legacy U.S. Direct Lending business in July 2022 6 Non-recurring costs include items such as restructuring and other one-time items not associated with our continuing operations 7 Transaction costs relate to the sale of the Legacy U.S. Direct Lending business and acquisition of First Heritage in July 2022 (USD, $Millions) 3Q22 4Q22 1Q23 2Q23 3Q23 Income (loss) from continuing operations before income taxes $43 $(158) $(32) $(51) $(33) Exclude Credit Changes1 10 13 1 7 (6) Exclude Interest Expense 38 41 44 50 56 Exclude non-recurring/non-cash items: Extinguishment or modification of debt costs 4 — — 9 — Goodwill Impairment2 — 108 — — — Amortization and Depreciation 6 5 5 5 5 Share-based compensation3 2 3 1 2 2 Loss (income) from equity method investment4 2 2 3 2 1 Loss (gain) on sale of business5 (68) — 2 — — Non-recurring6 1 13 10 — 6 Transaction Costs7 10 1 — — — Adjusted Earnings Before Credit Changes, Recourse (Unsecured) Interest and Taxes (a) $48 $28 $34 $24 $31 Total Debt $1,805 $1,883 $1,888 $1,988 $2,025 Unrestricted Cash $46 $74 $55 $113 $83 Net Debt (b) $1,759 $1,809 $1,833 $1,876 $1,942 Net Leverage (b)/(a), annualized 9.2x 16.1x 13.5x 19.5x 15.7x Interest Expense (c) $38 $41 $44 $50 $56 Interest Coverage Ratio (a)/(c) 1.3x 0.7x 0.8x 0.5x 0.6x

 
19 Debt Summary ($Millions, rounded) Fixed / Variable Final Maturity Date2 Effective Interest Rate Borrowing Capacity Outstanding as of 09/30/23 Corporate Debt: 1.0L Term Loan Fixed Aug-27 18.0% n/a $173 1.5L Senior Notes Fixed Aug-28 7.5% n/a $682 2.0L Senior Notes Fixed Aug-28 7.5% n/a $318 Funding Debt: Heights SPV Variable Jul-25 1-Mo SOFR + 4.71% $425 $425 First Heritage SPV Variable Jul-25 1-Mo SOFR + 4.25% $225 $153 Canada SPV(3) Variable Aug-26 3-Mo CDOR + 6.00% $295 $245 Canada SPV II(3) Variable Nov-25 3-Mo CDOR + 8.00% $81 $75 1 As of September 30, 2023, comprised of senior fixed rate notes 2 Refer to 10-Q, FN 6 Debt for additional maturity date information 3 Borrowing Capacity amounts are denominated in CAD, but were converted to USD using a 09/30/23 exchange rate of 0.7365 Debt Summary Fixed vs Variable Funded Debt 57% 43% Fixed Variable 1