Atlanticus Holdings Corp Leases Disclosure

10.

Leases

 

We have operating leases primarily associated with our corporate offices, ancillary office locations associated with our recent acquisition of Mercury and regional service centers. Additionally, we have operating leases for certain equipment. Our leases have remaining lease terms of 1 to 10 years, some of which include options, at our discretion, to extend the leases for additional periods generally on one-year revolving periods. Other leases allow for us to terminate the lease based on appropriate notification periods. For certain of our leased offices, we sublease a portion of the unoccupied space. The components of lease expense associated with our lease liabilities and supplemental cash flow information related to those leases were as follows (dollar amounts in thousands):

 

		For the Year Ended December 31,
		2025				2024
Operating lease cost, gross		$	3,555			$	2,541
Sublease income			(99	)			(98	)
Net Operating lease cost		$	3,456			$	2,443
Cash paid under operating leases, gross		$	3,497			$	3,014
Weighted average remaining lease term - months			95				112
Weighted average discount rate			6.8	%			7.1	%

 

As of December 31, 2025, scheduled payments of lease liabilities were as follows (in thousands):

 

		Gross Lease Payment				Payments received from Sublease				Net Lease Payment
2026		$	5,112			$	(42	)		$	5,070
2027			4,377				—				4,377
2028			3,751				—				3,751
2029			3,555				—				3,555
2030			3,567				—				3,567
Thereafter			13,187				—				13,187
Total lease payments			33,549				(42	)			33,507
Less imputed interest			(8,266	)
Operating lease liabilities		$	25,283

 

As part of our recent acquisition of Mercury, we assumed two separate operating leases for offices in Wilmington, Delaware and Austin, Texas. The leases cover approximately 30,000 square feet combined and have remaining terms of approximately 2 and 1 years, respectively. Obligations under these leases are included in the tables above. A right-of-use asset and liability was recorded associated with these leases.

 

In August 2021, we entered into an operating lease agreement for our corporate headquarters in Atlanta, Georgia (the "Headquarters lease") with an unaffiliated third party. This Headquarters lease initially covered approximately 73,000 square feet and commenced in June 2022 for a 146 month term. In connection with the commencement of this lease, we discontinued most of the subleasing arrangements with third parties for space at our corporate headquarters. A right-of-use asset and liability was recorded at the commencement date of this lease.

 

We exercised an expansion right under the Headquarters lease to add an additional 26,133 square feet (the "Expansion space") at our corporate headquarters. The Expansion space term commenced on December 23, 2024. The Expansion space co-terminates with the Headquarters lease. The other lease terms for the Expansion space are the same as those for the initial space leased under the Headquarters lease. The total remaining commitment under the Headquarters lease and Expansion space lease is approximately $30.1 million and is included in the table above.

 

In addition, we occasionally lease certain equipment under cancelable and non-cancelable leases, which are accounted for as capital leases in our consolidated financial statements. As of December 31, 2025, we had no material non-cancelable capital leases with initial or remaining terms of more than one year.