(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

~~30,109,569~~36,751,592 of the Registrant’s common shares, $.00001 par value, were outstanding as of ~~July 27, 2020.~~April 29, 2021.

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. These forward-looking statements give current expectations or forecasts of future events and reflect the views and assumptions of senior management with respect to the business, financial condition, operations and prospects of Enova International, Inc. and its subsidiaries (collectively, the “Company”). When used in this report, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecast,” “project” and similar expressions or variations as they relate to the Company or its management are intended to identify forward-looking statements. Forward-looking statements address matters that involve risks and uncertainties that are beyond the ability of the Company to control and, in some cases, predict. Accordingly, there are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these statements. Key factors that could cause the Company’s actual financial results, performance or condition to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, the following:

The foregoing list of factors is not exhaustive and new factors may emerge or changes to these factors may occur that would impact the Company’s business and cause actual results to differ materially from those expressed in any of our forward-looking statements. Additional information regarding these and other factors may be contained in the Company’s filings with the Securities and Exchange Commission (the “SEC”). Readers of this report are encouraged to review all of the Risk Factors contained in the Company’s filings

with the SEC to obtain more detail about the Company’s risks and uncertainties. All forward-looking statements involve risks, assumptions and uncertainties. The occurrence of the events described, and the achievement of the expected results, depends on many events, some or all of which are not predictable or within the Company’s control. If one or more events related to these or other risks or uncertainties materialize, or if management’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. The forward-looking statements in this report are made as of the date of this report, and the Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this report. All forward-looking statements in this report are expressly qualified in their entirety by the foregoing cautionary statements.

	June 30,						December 31,			March 31,						December 31,
	2020			2019			2019			2021			2020			2020
Assets
Cash and cash equivalents⁽¹⁾	$	321,472		$	33,849		$	35,895		$	324,328		$	161,076		$	297,273
Restricted cash⁽¹⁾		43,547			20,796			45,069			49,879			42,742			71,927
Loans and finance receivables at fair value⁽¹⁾		799,662			—			—			1,230,711			1,093,207			1,241,506
Loans and finance receivables at amortized cost, net⁽¹⁾		—			829,458			1,062,650
Income taxes receivable		10,510			9,101			32,859			—			35,487			—
Other receivables and prepaid expenses⁽¹⁾		28,541			33,355			31,643			41,630			33,530			40,301
Property and equipment, net		60,030			48,985			54,540			78,899			56,216			79,417
Operating lease right-of-use assets		20,302			20,490			19,586			39,159			19,981			40,123
Goodwill		267,868			267,013			267,013			279,275			267,868			267,974
Intangible assets, net		1,650			2,720			2,185			41,155			1,918			26,008
Other assets⁽¹⁾		25,391			11,761			22,912			48,606			21,276			43,546
Assets from discontinued operations		—			112,771			—
Total assets	$	1,578,973		$	1,390,299		$	1,574,352		$	2,133,642		$	1,733,301		$	2,108,075
Liabilities and Stockholders' Equity
Liabilities and Stockholders’ Equity
Accounts payable and accrued expenses⁽¹⁾	$	87,691		$	107,765		$	122,163		$	108,982		$	95,893		$	124,071
Operating lease liabilities		35,605			37,403			35,712			66,090			35,783			67,956
Income taxes currently payable											17,378			—			2,624
Deferred tax liabilities, net		72,869			42,451			48,683			61,070			71,679			48,129
Long-term debt⁽¹⁾		906,588			785,504			991,181			874,514			1,091,732			946,461
Liabilities from discontinued operations		—			10,723			—
Total liabilities		1,102,753			983,846			1,197,739			1,128,034			1,295,087			1,189,241
Commitments and contingencies (Note 7)
Stockholders' equity:
Common stock, $0.00001 par value, 250,000,000 shares authorized, 36,179,966, 35,671,114 and 35,764,943 shares issued and 30,101,689, 33,989,158 and 32,974,714 outstanding as of June 30, 2020 and 2019 and December 31, 2019, respectively		—			—			—
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.00001 par value, 250,000,000 shares authorized, 42,862,788, 36,112,268 and 41,936,784 shares issued and 36,598,693, 31,007,899 and 35,762,926 outstanding as of March 31, 2021 and 2020 and December 31, 2020, respectively											0			0			0
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, 0 shares issued and outstanding		—			—			—			—			—			—
Additional paid in capital		71,100			56,910			63,791			203,765			67,440			187,981
Retained earnings		525,108			396,149			372,681			925,386			477,082			849,466
Accumulated other comprehensive loss		(8,599	)		(14,774	)		(3,066	)		(8,498	)		(7,807	)		(6,898	)
Treasury stock, at cost (6,078,277, 1,681,956 and 2,790,229 shares as of June 30, 2020 and 2019 and December 31, 2019, respectively)		(111,389	)		(31,832	)		(56,793	)
Total stockholders' equity		476,220			406,453			376,613
Total liabilities and stockholders' equity	$	1,578,973		$	1,390,299		$	1,574,352
Treasury stock, at cost (6,264,095, 5,104,369 and 6,173,858 shares as of March 31, 2021 and 2020 and December 31, 2020, respectively)											(115,787	)		(98,501	)		(113,201	)
Total Enova International, Inc. stockholders’ equity											1,004,866			438,214			917,348
Noncontrolling interest											742			—			1,486
Total stockholders’ equity											1,005,608			438,214			918,834
Total liabilities and stockholders’ equity										$	2,133,642		$	1,733,301		$	2,108,075

The following table presents the aggregated assets and liabilities of consolidated VIEs, which are included in the Consolidated Balance Sheets above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. See Note 1 for additional information.

	June 30,				December 31,		March 31,				December 31,
	2020		2019		2019		2021		2020		2020
Assets of consolidated VIEs, included in total assets above
Cash and cash equivalents	$	525	$	420	$	420	$	1,484	$	525	$	420
Restricted cash		41,235		20,796		42,354		40,254		37,802		64,811
Loans and finance receivables at fair value		404,734		—		—		348,402		508,276		528,877
Loans and finance receivables at amortized cost, net (includes allowance for losses of $31,522 and $38,540 as of June 30, 2019 and December 31, 2019, respectively)		—		306,322		420,690
Other receivables and prepaid expenses		4,893		6,671		9		5,458		4,744		4,827
Other assets		2,102		2,530		2,161		1,062		2,333		1,639
Total assets	$	453,489	$	336,739	$	465,634	$	396,660	$	553,680	$	600,574
Liabilities of consolidated VIEs, included in total liabilities above
Accounts payable and accrued expenses	$	2,180	$	2,410	$	3,171	$	2,448	$	2,790	$	3,056
Affiliate note payable								3,708		—		4,065
Long-term debt		290,993		171,931		304,598		154,608		371,393		329,855
Total liabilities	$	293,173	$	174,341	$	307,769	$	160,764	$	374,183	$	336,976

	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2020			2019			2020			2019			2021			2020
Revenue	$	253,061		$	259,445		$	615,313		$	523,883		$	259,444		$	362,252
Change in Fair Value		(120,672	)		—			(356,391	)		—			(21,078	)		(235,719	)
Cost of Revenue		—			(123,433	)		—			(242,291	)
Net Revenue/Gross Profit		132,389			136,012			258,922			281,592
Net Revenue														238,366			126,533
Expenses
Marketing		2,988			25,861			37,546			44,922			28,568			34,558
Operations and technology		16,504			20,057			47,770			40,636			35,627			31,266
General and administrative		22,336			28,244			50,287			57,295			44,089			27,951
Depreciation and amortization		4,004			3,681			7,674			7,615			6,627			3,670
Total Expenses		45,832			77,843			143,277			150,468			114,911			97,445
Income from Operations		86,557			58,169			115,645			131,124			123,455			29,088
Interest expense, net		(20,372	)		(18,116	)		(40,753	)		(37,618	)		(19,914	)		(20,381	)
Foreign currency transaction (loss) gain		(18	)		(35	)		23			(178	)		(34	)		41
Loss on early extinguishment of debt		—			—			—			(2,321	)		(378	)		—
Equity method investment income														558			—
Income before Income Taxes		66,167			40,018			74,915			91,007			103,687			8,748
Provision for income taxes		18,141			9,392			21,141			21,402			27,716			3,000
Net income from continuing operations before noncontrolling interest														75,971			5,748
Less: Net income attributable to noncontrolling interest														51			—
Net income from continuing operations		48,026			30,626			53,774			69,605			75,920			5,748
Net loss from discontinued operations		—			(5,563	)		(288	)		(9,525	)		—			(288	)
Net Income	$	48,026		$	25,063		$	53,486		$	60,080
Earnings Per Share:
Earnings per common share – basic:
Net income attributable to Enova International, Inc.													$	75,920		$	5,460
Earnings (Loss) Per Share attributable to Enova International, Inc.:
Earnings (loss) per common share – basic:
Continuing operations	$	1.59		$	0.91		$	1.72		$	2.07		$	2.10		$	0.18
Discontinued operations		—			(0.17	)		(0.01	)		(0.29	)		—			(0.01	)
Earnings per common share – basic	$	1.59		$	0.74		$	1.71		$	1.78
Earnings per common share – diluted:
Earnings (loss) per common share – basic													$	2.10		$	0.17
Earnings (loss) per common share – diluted:
Continuing operations	$	1.58		$	0.89		$	1.70		$	2.02		$	2.03		$	0.18
Discontinued operations		—			(0.16	)		(0.01	)		(0.28	)		—			(0.01	)
Earnings per common share – diluted	$	1.58		$	0.73		$	1.69		$	1.74
Earnings (loss) per common share – diluted													$	2.03		$	0.17
Weighted average common shares outstanding:
Basic		30,203			33,826			31,270			33,660			36,109			32,337
Diluted		30,352			34,469			31,592			34,451			37,487			32,833

	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2020			2019			2020			2019			2021			2020
Net Income	$	48,026		$	25,063		$	53,486		$	60,080
Net income including noncontrolling interest													$	75,971		$	5,460
Other comprehensive loss, net of tax:
Foreign currency translation loss⁽¹⁾		(792	)		(2,523	)		(5,533	)		(969	)		(1,330	)		(4,741	)
Ownership change in noncontrolling interest														(270	)		—
Total other comprehensive loss, net of tax		(792	)		(2,523	)		(5,533	)		(969	)		(1,600	)		(4,741	)
Comprehensive Income	$	47,234		$	22,540		$	47,953		$	59,111			74,371			719
Net income attributable to noncontrolling interest														(51	)		—
Foreign currency translation loss attributable to noncontrolling interests														(7	)		—
Ownership change in noncontrolling interest														802			—
Comprehensive income attributable to the noncontrolling interest														744			—
Comprehensive income attributable to Enova International, Inc.													$	75,115		$	719

Accumulated

Additional

Other

Total

Common Stock

Paid in

Retained

Comprehensive

Treasury Stock, at cost

Stockholders'

Shares

Amount

Capital

Earnings

Loss

Shares

Amount

Equity

Balance at March 31, 2019

35,340

$
—

$
51,638

$
371,086

$
(12,251
)

(1,656
)

$
(31,259
)

$
379,214

Stock-based compensation expense

—

—

3,323

—

—

—

—

3,323

Shares issued for vested RSUs

97

—

—

—

—

—

—

—

Shares issued for stock option exercises

234

—

1,949

—

—

—

—

1,949

Net income from continuing operations

—

—

—

30,626

—

—

—

30,626

Net loss from discontinued operations

—

—

—

(5,563
)

—

—

—

(5,563
)
Foreign currency translation loss, net of tax

—

—

—

—

(2,523
)

—

—

(2,523
)
Purchases of treasury shares, at cost

—

—

—

—

—

(26
)

(573
)

(573
)
Balance at June 30, 2019

35,671

$
—

$
56,910

$
396,149

$
(14,774
)

(1,682
)

$
(31,832
)

$
406,453

Balance at March 31, 2020

36,112

$
—

$
67,440

$
477,082

$
(7,807
)

(5,104
)
��

$
(98,501
)

$
438,214

Stock-based compensation expense

—

—

3,660

—

—

—

—

3,660

Shares issued for vested RSUs

68

—

—

—

—

—

—

—

Net income from continuing operations

—

—

—

48,026

—

—

—

48,026

Foreign currency translation loss, net of tax

—

—

—

—

(792
)

—

—

(792
)
Purchases of treasury shares, at cost

—

—

—

—

—

(974
)

(12,888
)

(12,888
)
Balance at June 30, 2020

36,180

$
—

$
71,100

$
525,108

$
(8,599
)

(6,078
)

$
(111,389
)

$
476,220

										Accumulated																													Total Enova
					Additional					Other									Total											Accumulated									International,
	Common Stock				Paid in		Retained			Comprehensive			Treasury Stock, at cost						Stockholders'							Additional				Other									Inc.						Total
	Shares		Amount		Capital		Earnings			Loss			Shares			Amount			Equity			Common Stock				Paid in		Retained		Comprehensive			Treasury Stock, at cost						Stockholders’			Noncontrolling			Stockholders’
Balance at December 31, 2018		34,857	$	—	$	48,175	$	336,415		$	(13,805	)		(1,272	)	$	(23,017	)	$	347,768
Stock-based compensation expense		—		—		6,397		—			—			—			—			6,397
Shares issued for vested RSUs		524		—		—		—			—			—			—			—
Shares issued for stock option exercises		290		—		2,338		—			—			—			—			2,338
Net income from continuing operations		—		—		—		69,605			—			—			—			69,605
Net loss from discontinued operations		—		—		—		(9,525	)		—			—			—			(9,525	)
Foreign currency translation loss, net of tax		—		—		—		—			(969	)		—			—			(969	)
Purchases of treasury shares, at cost		—		—		—		—			—			(410	)		(8,815	)		(8,815	)
Cumulative effect of accounting change		—		—		—		(346	)		—			—			—			(346	)
Balance at June 30, 2019		35,671	$	—	$	56,910	$	396,149		$	(14,774	)		(1,682	)	$	(31,832	)	$	406,453
																						Shares		Amount		Capital		Earnings		Loss			Shares			Amount			Equity			Interest			Equity
Balance at December 31, 2019		35,765	$	—	$	63,791	$	372,681		$	(3,066	)		(2,790	)	$	(56,793	)	$	376,613			35,765	$	—	$	63,791	$	372,681	$	(3,066	)		(2,790	)	$	(56,793	)	$	376,613		$	—		$	376,613
Stock-based compensation expense		—		—		7,120		—			—			—			—			7,120			—		—		3,460		—		—			—			—			3,460			—			3,460
Shares issued for vested RSUs		399		—		—		—			—			—			—			—			331		—		—		—		—			—			—			—			—			—
Shares issued for stock option exercises		16		—		189		—			—			—			—			189			16		—		189		—		—			—			—			189			—			189
Net income from continuing operations		—		—		—		53,774			—			—			—			53,774
Net loss from discontinued operations		—		—		—		(288	)		—			—			—			(288	)
Net income attributable to Enova International, Inc.																							—		—		—		5,460		—			—			—			5,460			—			5,460
Foreign currency translation loss, net of tax		—		—		—		—			(5,533	)		—			—			(5,533	)		—		—		—		—		(4,741	)		—			—			(4,741	)		—			(4,741	)
Purchases of treasury shares, at cost		—		—		—		—			—			(3,288	)		(54,596	)		(54,596	)		—		—		—		—		—			(2,314	)		(41,708	)		(41,708	)		—			(41,708	)
Cumulative effect of accounting change (Note 1)		—		—		—		98,941			—			—			—			98,941
Balance at June 30, 2020		36,180	$	—	$	71,100	$	525,108		$	(8,599	)		(6,078	)	$	(111,389	)	$	476,220
Cumulative effect of accounting change																							—		—		—		98,941		—			—			—			98,941			—			98,941
Balance at March 31, 2020																							36,112	$	—	$	67,440	$	477,082	$	(7,807	)		(5,104	)	$	(98,501	)	$	438,214		$	—		$	438,214

Balance at December 31, 2020																							41,937	$	—	$	187,981	$	849,466	$	(6,898	)		(6,174	)	$	(113,201	)	$	917,348		$	1,486		$	918,834
Stock-based compensation expense																							—		—		5,804		—		—			—			—			5,804			—			5,804
Shares issued for vested RSUs																							534		—		—		—		—			—			—			—			—			—
Shares issued for stock option exercises																							392		—		8,908		—		—			—			—			8,908			—			8,908
Net income attributable to Enova International, Inc.																							—		—		—		75,920		—			—			—			75,920			—			75,920
Foreign currency translation (loss) gain, net of tax																							—		—		—		—		(1,330	)		—			—			(1,330	)		7			(1,323	)
Purchases of treasury shares, at cost																							—		—		—		—		—			(90	)		(2,586	)		(2,586	)		—			(2,586	)
Ownership change in noncontrolling interest																							—		—		1,072		—		(270	)		—			—			802			(802	)		—
Net income attributable to noncontrolling interest																							—		—		—		—		—			—		.				—			51			51
Balance at March 31, 2021																							42,863	$	—	$	203,765	$	925,386	$	(8,498	)		(6,264	)	$	(115,787	)	$	1,004,866		$	742		$	1,005,608

	Six Months Ended						Three Months Ended
	June 30,						March 31,
	2020			2019			2021			2020
Cash Flows from Operating Activities
Net Income	$	53,486		$	60,080
Net income before noncontrolling interest							$	75,971		$	5,460
Add: net loss from discontinued operations		288			9,525			—			288
Net income from continuing operations		53,774			69,605			75,971			5,748
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		7,674			7,615			6,627			3,670
Amortization of deferred loan costs and debt discount		3,173			3,135			1,914			1,643
Change in fair value		356,391			—			21,078			235,719
Cost of revenue		—			242,291
Stock-based compensation expense		7,120			6,397			5,804			3,460
Loss on early extinguishment of debt		—			2,321			378			—
Operating leases, net		(839	)		(761	)		(900	)		(340	)
Lease termination and cease-use costs		—			370
Deferred income taxes, net		(1,793	)		2,204			13,442			(3,212	)
Changes in operating assets and liabilities:
Finance and service charges on loans and finance receivables		65,826			(6,525	)		(255	)		31,686
Other receivables and prepaid expenses and other assets		(2,452	)		(3,136	)		550			(2,865	)
Accounts payable and accrued expenses		(27,970	)		(2,507	)		(21,929	)		(28,814	)
Current income taxes		22,830			65,052			14,348			6,107
Cash flows from operating activities - continuing operations		483,734			386,061			117,028			252,802
Cash flows from operating activities - discontinued operations		(288	)		28,698			—			(288	)
Net cash provided by operating activities		483,446			414,759			117,028			252,514
Cash Flows from Investing Activities
Loans and finance receivables originated or acquired		(467,468	)		(741,590	)		(444,947	)		(397,460	)
Loans and finance receivables repaid		426,376			454,675			435,932			219,275
Acquisitions, net of cash acquired		(3,597	)		—			(28,358	)		(3,597	)
Purchases of property and equipment		(12,716	)		(9,994	)		(7,106	)		(5,156	)
Other investing activities		57			2			25			57
Cash flows from investing activities - continuing operations		(57,348	)		(296,907	)		(44,454	)		(186,881	)
Cash flows from investing activities - discontinued operations		—			(22,229	)		—			—
Net cash used in investing activities		(57,348	)		(319,136	)		(44,454	)		(186,881	)
Cash Flows from Financing Activities
Borrowings under revolving line of credit		100,250			150,049			102,000			100,250
Repayments under revolving line of credit		(172,250	)		(172,049	)		—			(67,000	)
Borrowings under securitization facilities		119,200			47,800			5,161			119,200
Repayments under securitization facilities		(134,297	)		(101,418	)		(181,139	)		(53,224	)
Debt issuance costs paid		(388	)		(339	)		—			(372	)
Debt prepayment penalty paid		—			(1,392	)
Proceeds from exercise of stock options		189			2,338			8,908			189
Treasury shares purchased		(54,596	)		(8,815	)		(2,586	)		(41,708	)
Net cash used in financing activities		(141,892	)		(83,826	)
Net cash (used in) provided by financing activities								(67,656	)		57,335
Effect of exchange rates on cash, cash equivalents and restricted cash		(151	)		(591	)		89			(114	)
Net increase in cash, cash equivalents and restricted cash		284,055			11,206			5,007			122,854
Less: increase in cash, cash equivalents and restricted cash from discontinued operations		—			(6,844	)
Change in cash, cash equivalents and restricted cash from continuing operations		284,055			4,362
Cash, cash equivalents and restricted cash at beginning of year		80,964			50,283			369,200			80,964
Cash, cash equivalents and restricted cash at end of period	$	365,019		$	54,645		$	374,207		$	203,818

Supplemental Disclosures
Loans and finance receivables renewed	$	28,263		$	68,692		$	45,111		$	22,281

The Company operates an internet-based lending platform to serve customers in need of cash to fulfill their financial responsibilities. Through a network of direct and indirect marketing channels, the Company offers funds to its customers through a variety of unsecured loan and finance receivable products. The business is operated primarily through the internet to provide convenient, fully-automated financial solutions to its customers. The Company originates, arranges, guarantees or purchases consumer loans and provides financing to small businesses through a line of credit account, installment loan or receivables purchase agreement product (“RPAs”). Consumer loans include installment loans and line of credit accounts. RPAs represent a right to receive future receivables from a small business. The Company also provides services related to third-party lenders’ consumer loan products by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws (“CSO program”).

The consolidated financial statements of the Company reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated.

The Company consolidates any variable interest entity (“VIE”) where it has been determined it is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE.

On ~~October 25, 2019,~~July 28, 2020, the ~~Company’s U.K. businesses were placed~~Company and OnDeck Capital Inc. (“OnDeck”) entered into ~~administration, which resulted in treatment~~an Agreement and Plan of Merger (the “Merger Agreement”) among the Company, OnDeck and Energy Merger Sub, Inc., a wholly owned subsidiary of the ~~businesses~~Company (“Merger Sub”), pursuant to which, subject to the satisfaction or waiver of the conditions set forth therein, Merger Sub would merge with and into OnDeck, with OnDeck surviving as ~~discontinued~~an indirect wholly owned subsidiary of the Company. On October 13, 2020, the Company and OnDeck completed the transaction following the approval of OnDeck’s stockholders and the satisfaction of all other closing conditions. The accompanying unaudited consolidated results of operations for the three months ended March 31, 2021 include the results of operations for OnDeck, affecting comparability of 2021 and 2020 amounts. The Company has performed a valuation analysis of identifiable assets acquired and liabilities assumed and allocated the aggregate purchase consideration based on the fair values of those identifiable assets and liabilities. The purchase price allocation is subject to change as the Company finalizes the analysis of the fair value at the acquisition date. The final determination of the fair value of assets acquired and liabilities assumed will be completed within the twelve month measurement period from the acquisition date as required by applicable accounting guidance. Due to the significance of the transaction, the Company may use all ~~periods presented. Throughout these consolidated~~of this measurement period to adequately analyze and assess the fair values of assets acquired and liabilities assumed.

With the acquisition of OnDeck, the Company owns a controlling interest in On Deck Capital Australia PTY LTD (“OnDeck Australia”). The remaining interests are owned by an unrelated third party. We consolidate the financial ~~statements, unless otherwise noted, current~~position and ~~prior year financial information~~results of operations of this entity under the voting interest model. The noncontrolling interest, which is presented as ifa separate component of consolidated equity, represents the ~~U.K. businesses were excluded from continuing operations as required. For further information about the placement~~minority owners’ proportionate share of the ~~segment into administration, refer to “Discontinued Operations” below.~~equity of the entity and is adjusted for the minority owners’ share of the earnings, losses, investments and distributions.

The consolidated financial statements presented as of ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ and for the ~~three and six-month~~three-month periods ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ are unaudited but, in management’s opinion, include all adjustments necessary for a fair presentation of the results for such interim periods. Operating results for the ~~three and six-month periods~~three-month period are not necessarily indicative of the results that may be expected for the full fiscal year. Certain ~~reclassifications~~prior period amounts have been ~~made to prior periods~~reclassified to conform to the current ~~presentation, including~~year presentation. With the ~~incorporation~~acquisition of ~~short-term~~OnDeck, small business loans ~~into “Installment~~comprise a significantly larger portion of the Company’s overall loan portfolio. Where presented on a disaggregated basis, loans and ~~RPAs” in disclosures~~finance receivables that ~~include product groupings.~~were previously grouped as line of credit accounts and installment loans and RPAs, are now grouped at the consumer and small business levels as management has deemed these groupings to be more meaningful to users of the financial statements.

These consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, ~~2019~~2020 and ~~2018~~2019 and for the years ended December 31, 2020, 2019 ~~2018~~ and ~~2017~~2018 and related notes, which are included on Form 10-K filed with the SEC on February ~~27, 2020.~~26, 2021.

Beginning in 2007, the Company provided services in the United Kingdom under various brands, including QuickQuid, Pounds to Pocket and On Stride. Due in part to the level of claim and legal settlement costs incurred in conducting our U.K. business and unsuccessful discussions with U.K regulators, on October 24, 2019, the Company announced its intent to exit the U.K. market. On October 25, 2019, Grant Thornton LLP, a licensed U.K. insolvency practitioner, was appointed as administrators (“Administrators”) to take control of management of the U.K. businesses. The effect of the U.K. businesses’ entry into administration was to place their management, affairs, business and property under the direct control of the Administrators. Accordingly, the Company deconsolidated its U.K. businesses as of October 25, 2019 and is presenting them as discontinued operations for all periods presented in these consolidated financial statements. The Company recorded a one-time after-tax charge of $74.5 million, including one-time cash charges of $52.2 million, in the fourth quarter of 2019 as a result of placing the U.K. businesses into administration.During the ~~six~~three months ended ~~June 30,~~ March 31,2020 the Company recorded an impairment charge of $0.4 million ($0.3 million net of taxes) to write down a receivable on certain expenses incurred by the Company prior to administration that were deemed non-reimbursable by the Administrators.

The Company entered into a service agreement with the Administrators under which the Company provides certain administrative, technical and other services in exchange for compensation by the Administrators. The ~~initial term of the~~ agreement is ~~12 months~~scheduled to expire July 8, 2021 but with options to extend the term for three-month periods. During the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020, the Company recorded ~~$1.2~~

$0.7 million and ~~$3.1~~$1.9 million, respectively, in revenue related to these services. As of ~~June 30,~~March 31, 2021 and 2020 and December 31, 2020, the Administrators owed the Company $1.2 million, $1.0 million and $0.9 million, respectively, related to services provided.

~~The following table provides the aggregate carrying amounts of the assets and liabilities of the U.K. businesses included in the Company’s consolidated balance sheets (in thousands):~~

The following table provides the financial results of the U.K. businesses, which meet the criteria of discontinued operations and, therefore, are excluded from the Company's results of continuing operations (in thousands):

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands):

	June 30,				March 31,
	2020		2019		2021		2020
Cash and cash equivalents	$	321,472	$	33,849	$	324,328	$	161,076
Restricted cash		43,547		20,796		49,879		42,742
Total cash, cash equivalents and restricted cash	$	365,019	$	54,645	$	374,207	$	203,818

Prior to January 1, 2020, the Company carried its loans and finance receivables at amortized cost, less an allowance for estimated losses and unamortized net deferred origination costs. In determining the allowance, the Company applied a documented systematic methodology generally at a product level with charge-offs and recoveries, recorded as “Cost of revenue” in the consolidated statements of income. The allowance for single-pay installment loans classified as current was based on historical loss rates adjusted for recent default trends for current loans. For delinquent single-pay loans, the allowance was based on a six-month rolling average of loss rates by stage of collection. For other installment loans, RPAs and line of credit accounts, the Company generally used either a migration analysis or roll-rate based methodology to estimate losses inherent in the portfolio. The allowance under the migration analysis and roll-rate methodology was based on historical charge-off experience and the loss emergence period, which represented the average amount of time between the first occurrence of a loss event and the charge-off of a loan or RPA. The factors the Company considered to assess the adequacy of the allowance included past due performance, historical behavior of monthly vintages, underwriting changes, delinquency status, payment history and recency factors.

~~Beginning January 1, 2020, the~~ Company utilizes the fair value option on its entire loan and finance receivable portfolio. As such, loans and finance receivables are carried at fair value in the consolidated balance sheet with changes in fair value recorded in the consolidated income statement. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and ~~prepayments~~servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and ~~prepayment~~servicing cost assumptions are determined using historical loss data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Accrued and unpaid interest and fees are included in “Loans and finance receivables” in the consolidated balance sheets.

The Company classifies its loans and finance receivables as either current or delinquent. ~~When~~Excluding OnDeck loans and finance receivables, when a customer does not make a scheduled payment as of the due date, that payment is considered delinquent, and the remainder of the receivable balance is considered current. If the customer does not make two consecutive payments, the entire account or loan is classified as delinquent and placed on a non-accrual status. For the OnDeck portfolio, a loan is considered to be delinquent when the scheduled payments are one day past due. Loans are placed in nonaccrual status and the accrual of interest income is stopped on loans that are delinquent and non-paying. Loans are returned to accrual status if they are brought to non-delinquent status or have performed in accordance with the contractual terms for a reasonable period of time and, in the Company’s judgment, will continue to make periodic principal and interest payments as scheduled. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period.

Where permitted by law and as long as a loan is not considered delinquent, a customer may choose to renew or extend the due date on certain installment loans. In order to renew or extend a single-pay loan, a customer must agree to pay the current finance charge for the right to make a later payment of the outstanding principal balance plus an additional finance charge. In order to renew an installment loan, the customer enters into a new installment loan contract and agrees to pay the principal balance and finance charge in accordance with the terms of the new loan contract. If a single-pay loan is renewed, but the customer fails to pay that loan’s current finance charge as of the due date, the unpaid finance charge is classified as delinquent.

In response to the COVID-19 pandemic, the Company enhanced the forbearance options on its loan products, offering additional relief to impacted customers with features such as payment deferrals without the incurrence of additional finance ~~charge~~charges or late fees. If a loan is deemed to be current and the customer makes a deferral or payment modification, the loan is still deemed to be current until the next scheduled payment is missed.

The Company does not accrue interest on delinquent loans and does not resume accrual of interest on a delinquent loan unless it is returned to current status. In addition, delinquent loans generally may not be renewed, and if, during its attempt to collect on a delinquent loan, the Company allows additional time for payment through a payment plan or a promise to pay, it is still considered

~~delinquent. Generally, all payments received are first applied against accrued but unpaid interest and fees and then against the principal balance of the loan.~~

The Company generally charges off loans and finance receivables between 60 and 65 days delinquent. If a loan or finance receivable is deemed uncollectible prior to this, it is charged off at that point. For the OnDeck portfolio, the Company generally charges off a loan when it is probable that that it will be unable to collect all of the remaining principal payments, which is generally after 90 days of delinquency and 30 days of non-activity. Loans and finance receivables classified as delinquent generally have an age of one to 64 days from the date any portion of the receivable became delinquent, as defined above. Recoveries on loans and finance receivables that were previously charged off are generally recognized when ~~collected.~~collected or sold.

The Company recognizes revenue based on the financing products and services it offers and on loans it acquires. “Revenue” in the consolidated statements of income includes: interest income, finance charges, fees for services provided through the Company’s CSO programs (“CSO fees”), revenue on RPAs, service charges, draw fees, minimum billing fees, purchase fees, origination fees, late fees and non-sufficient funds fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest is generally recognized on an effective yield basis over the contractual term of the loan on installment loans, the estimated outstanding period of the draw on line of credit accounts, or the projected delivery term on RPAs. CSO fees are recognized over the term of the loan. Late and nonsufficient funds fees are recognized when assessed to the customer.

Prior to the adoption of the fair value option effective January 1, 2020, origination fees as well as certain direct costs associated with originating loans were deferred and amortized into or against revenue on an effective yield basis over the term of the loan or the projected delivery term of the finance receivable. Subsequent to the election of the fair value option, these fees and costs are no longer eligible for deferral. As such, origination fees on installment loans, purchase fees on RPAs, and draw fees on line of credit accounts are recognized when assessed to the customer.

Marketing expenses consist of digital costs, lead purchase costs and offline marketing costs such as television and direct mail advertising. ~~With the adoption of the fair value option on January 1, 2020, all~~All marketing expenses are expensed as incurred. ~~Prior~~

With the acquisition of OnDeck, as discussed in Note 2, the Company records its interest in On Deck Capital Canada Holdings, Inc. (“OnDeck Canada”)under the equity method of accounting. As of March 31, 2021 and December 31, 2020, the carrying value of the Company’s investment in OnDeck Canada was $11.4 and $10.5 million, respectively, which the Company has included in “Other assets” on the consolidated balance sheets.

On February 24, 2021 the Company contributed the platform-as-service business assumed in the OnDeck acquisition to ~~January 1, 2020, marketing costs directly related to loan and RPA originations were deferred and amortized against revenue, whereas marketing costs not directly resulting~~Linear Financial Technologies Holding LLC (“Linear”) in ~~loan and RPA originations were expensed as incurred.~~exchange for ownership units in that entity. The Company records its interest in Linear under the equity method of accounting. As of March 31, 2021, the carrying value of the Company’s investment in Linear was $6.8 million, which the Company has included in “Other assets” on the consolidated balance sheets.

Equity method income has been included in “Equity method investment income” in the consolidated income statements.

As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from varying sources, the Company has established a securitization program through several securitization facilities. The Company ~~transferred~~transfers certain ~~consumer~~ loan receivables to VIEs, which issue notes backed by the underlying ~~consumer~~ loan receivables and are serviced by another ~~wholly owned~~wholly-owned subsidiary of the Company. The cash flows from the loans held by the VIEs are used to repay obligations under the notes.

The Company is required to evaluate the VIEs for consolidation. The Company has the ability to direct the activities of the VIEs that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, the Company has the right to receive residual payments, which expose it to potentially significant losses and returns. Accordingly, the Company determined it is the primary beneficiary of the VIEs and is required to consolidate them. The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings.

~~In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13,~~ ~~Measurement of Credit Losses on Financial Instruments~~ (“ASU 2016‑13”). The amendments in ASU 2016‑13 replace the incurred loss impairment methodology in current GAAP with a methodology that reflects lifetime expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In April 2019 and November 2019, the FASB issued ASU 2019-04, ~~Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,~~ ~~and ASU 2019-04,~~ ~~Codification Improvements to Topic 326, Financial Instruments—Credit Losses,~~ ~~respectively, which provide subsequent amendments to the initial guidance in ASU 2016‑13. In May 2019, the FASB issued ASU 2019-05,~~ ~~Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief,~~ ~~which provides entities that have certain instruments within the scope of ASC 326-20,~~ ~~Financial Instruments—Credit Losses—Measured at Amortized Cost, with an option to irrevocably elect the fair value option in ASC 825-10,~~ ~~Financial Instruments—Overall, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of ASU 2016-13. In November 2019, the FASB issued ASU 2019-10,~~ ~~Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates,~~ ~~which sets the mandatory~~

Adoptedeffective date of ASU 2016‑13 for public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for annual periods beginning after December 15, 2019, and interim periods within those annual periods.

The Company adopted ASU 2016-13 and the related aforementioned ASUs under the modified-retrospective method effective January 1, 2020 and elected the fair value option to account for all loans and finance receivables. The Company believes that the fair value option better reflects the value of its portfolio and its future economic performance as well as more closely aligning with the Company’s marginal decision-making processes that rely on risk-based pricing and discounted cash flow methodologies. In accordance with the transition guidance, the Company (i) released the allowance for estimated losses on loans and finance receivables at that date; (ii) released the unamortized net deferred origination costs at that date; and (iii) measured the loans and finance receivables at fair value. As a result of the adoption of this ASU, the Company’s loans and finance receivables are carried at fair value with changes in fair value recognized directly in earnings and origination fees and costs are no longer eligible for deferral.

~~The following table summarizes the impact of adoption on the consolidated balance sheet as of January 1, 2020 (in thousands):~~

~~In August 2018, the FASB issued ASU 2018~~-~~15,~~ ~~Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract~~ ~~(“ASU 2018~~-~~15”). ASU 2018~~-15 requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the noncancelable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. The effective date of this pronouncement is for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. The standard can be adopted either using the prospective or retrospective transition approach. The adoption of ASU 2018-~~15 did not have a material effect on the Company’s consolidated financial statements.~~

~~In August 2018, the FASB issued ASU 2018-13,~~ ~~Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement~~ (“ASU 2018-13”), which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. As permitted in the transition guidance, the Company adopted ASU 2018-13 in the first quarter of 2020, which did not have a material effect on the Company’s consolidated financial statements.

~~In January 2017, the FASB issued ASU 2017~~-~~04,~~ ~~Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment~~ ~~(“ASU 2017~~-~~04”) to simplify the accounting for goodwill impairment. ASU 2017~~-04 removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and will not have an impact on the Company’s consolidated financial statements unless goodwill is deemed to be impaired.

In November 2019, the ~~FASB~~Financial Accounting Standards Board (“FASB”) issued ~~ASU~~Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). ASU 2019-12 is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also clarifying and amending existing guidance to improve consistent application. ASU 2019-12 is effective in fiscal years, and interim periods within those fiscal years, beginning after December 15, ~~2020, with early~~2020. The adoption ~~permitted. The Company is currently evaluating the impact~~of ASU 2019-12 ~~will~~as of January 1, 2021 did not have a material effect on ~~its~~the Company’s consolidated financial ~~statements.~~

On July 28, 2020, the Company and OnDeck entered into an Agreement and Plan of Merger among the Company, OnDeck and Energy Merger Sub, Inc., a wholly owned subsidiary of the Company, pursuant to which, subject to the satisfaction or waiver of the conditions set forth therein, Energy Merger Sub, Inc. would merge with and into OnDeck, with OnDeck surviving as an indirect wholly owned subsidiary of the Company. On October 13, 2020, the Company and OnDeck completed the transaction following the approval of OnDeck’s stockholders and the satisfaction of all other closing conditions. The acquisition increases the scale and portfolio diversification of the Company. OnDeck offers a range of term loans and lines of credit customized for the needs of small business owners.

Under the terms of the transaction, each holder of OnDeck common stock received $0.12 per share in cash and a fixed exchange ratio of 0.092 shares of the Company’s common stock for each OnDeck share they owned as of the acquisition date. As a result, the Company issued 5.6 million shares of common stock to OnDeck stockholders. Based on the closing share price of the Company as of October 12, 2020 of $18.74, the value of Company common stock and cash provided in exchange for OnDeck common stock was $111.5 million. In addition to the exchange of common stock, the consideration transferred also included the cancellation or replacement of certain equity awards of OnDeck employees in effect prior to the transaction valued at approximately $4.2 million. For additional information, see “Note 2. Acquisitions” of the Annual Report on Form 10-K for the year ended December 31, 2020.

On March 19, 2021, the Company completed the purchase of Pangea Universal Holdings, Inc. (“PUH”), a Chicago-based payments platform offering mobile international money transfer services. In accordance with the terms of the transaction, PUH was merged into Pangea Transfer Company, LLC (“Pangea”) with the separate corporate existence of PUH thereupon ceasing and Pangea continuing as the surviving, wholly-owned subsidiary of the Company. Pangea serves the international money transfer market with a focus on Latin America and Asia. Customers have the option to transfer funds directly into bank accounts or have cash picked up from partners in minutes. The total consideration of $32.9 million consists of $30.0 million in cash and $2.9 million in loan forgiveness. The preliminary allocation of the purchase consideration includes $19.8 million and $11.3 million of intangible assets and goodwill, respectively, with all other assets acquired and liabilities assumed being nominal. The Company has not yet completed the process of estimating the fair value of assets acquired and liabilities assumed, including, but not limited to, intangible assets, certain tax-related balances and certain other assets and liabilities. The purchase price allocation is subject to change as the Company finalizes the analysis of the fair value as of the acquisition date. The final determination of the fair value of assets acquired and liabilities assumed will be completed within the twelve-month measurement period from the acquisition date as required by applicable accounting guidance.

The operating results of Pangea are included in, but not material to, the Company’s consolidated financial statements from the date of acquisition.

Revenue generated from the Company’s loans and finance receivables for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ was as follows (dollars in thousands):

	Three Months Ended				Six Months Ended				Three Months Ended
	June 30,				June 30,				March 31,
	2020		2019		2020		2019		2021		2020
Installment loans and RPAs	$	126,224	$	148,531	$	300,258	$	308,173
Line of credit accounts		125,478		110,670		311,250		215,153
Consumer loans and finance receivables revenue									$	181,737	$	335,900
Small business loans and finance receivables revenue										75,560		23,906
Total loans and finance receivables revenue		251,702		259,201		611,508		523,326		257,297		359,806
Other		1,359		244		3,805		557		2,147		2,446
Total revenue	$	253,061	$	259,445	$	615,313	$	523,883	$	259,444	$	362,252

The components of Company-owned loans and finance receivables at ~~June 30,~~March 31, 2021 and 2020 and December 31, 2020 were as follows (dollars in thousands):

	As of June 30, 2020						As of March 31, 2021
	Installment Loans and		Line of Credit						Small
	RPAs		Accounts		Total		Consumer		Business			Total
Principal balance - accrual	$	536,245	$	180,703	$	716,948	$	493,553	$	668,955		$	1,162,508
Principal balance - non-accrual		34,245		16,411		50,656		29,617		27,723			57,340
Total principal balance		570,490		197,114		767,604		523,170		696,678			1,219,848

Loans and finance receivables at fair value - accrual		572,509		207,493		780,002		577,999		636,953			1,214,952
Loans and finance receivables at fair value - non-accrual		15,031		4,629		19,660		3,399		12,360			15,759
Loans and finance receivables at fair value		587,540		212,122		799,662		581,398		649,313			1,230,711
Difference between principal balance and fair value	$	17,050	$	15,008	$	32,058	$	58,228	$	(47,365	)	$	10,863

As of March 31, 2021 and December 31, 2020, the aggregate fair value of loans and finance receivables that were 90 days or more past due was $7.2 million and $14.3 million, respectively, of which, $7.0 million and $14.1 million, respectively, was in non-accrual status. The aggregate unpaid principal balance for loans and finance receivables that were 90 days or more past due was $13.7 million and $33.9 million, respectively. There were 0 loans and finance receivables that were 90 days or more past due as of March 31, 2020.

Changes in the fair value of Company-owned loans and finance receivables during the three ~~and six~~ months ended ~~June 30, 2020~~March 31, 2021 were as follows (dollars in thousands):

	Six Months Ended June 30, 2020									Three Months Ended March 31, 2021
	Installment Loans and			Line of Credit									Small
	RPAs			Accounts			Total			Consumer			Business			Total
Balance at beginning of period	$	848,818		$	338,765		$	1,187,583		$	625,219		$	616,287		$	1,241,506
Originations or acquisitions		284,567			211,164			495,731			167,947			322,111			490,058
Interest and fees⁽¹⁾		300,258			311,250			611,508			181,737			75,560			257,297
Repayments		(640,760	)		(494,353	)		(1,135,113	)		(367,075	)		(369,212	)		(736,287	)
Charge-offs, net⁽²⁾		(167,634	)		(191,565	)		(359,199	)		(36,408	)		(18,042	)		(54,450	)
Net change in fair value⁽²⁾		(34,053	)		36,861			2,808			10,335			23,037			33,372
Effect of foreign currency translation		(3,656	)		—			(3,656	)		(357	)		(428	)		(785	)
Balance at end of period	$	587,540		$	212,122		$	799,662		$	581,398		$	649,313		$	1,230,711

Prior to January 1, 2020, the Company carried its loans and finance receivables at amortized cost, including unamortized net deferred origination costs, less an allowance for estimated losses. The components of Company-owned loans and finance receivables at June 30, 2019 and December 31, 2019 were as follows (dollars in thousands):

Changes in the allowance for losses for the Company-owned loans and finance receivables and the liability for losses on the Company’s guarantees of third-party lender-owned loans during the three and six months ended June 30, 2019 were as follows (dollars in thousands):

In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for ~~installment~~consumer loans and is required to purchase any defaulted loans it has guaranteed. The guarantee represents an obligation to purchase specific loans that go into default. As of ~~June 30,~~March 31, 2021 and 2020 and December 31, 2020 the consumer loans guaranteed by the Company had an estimated fair value of ~~$6.6~~$7.2 million, $12.4 million and $10.3 million, respectively and an outstanding principal balance of ~~$5.2 million.~~$5.7 million, $10.3 million and $8.8 million, respectively. As of ~~June 30,~~March 31, 2021 and 2020 ~~June 30, 2019~~ and December 31, ~~2019,~~2020, the amount of consumer loans, including principal, fees and interest, guaranteed by the Company were ~~$6.1~~$6.8 million, ~~$21.5~~$11.8 million and ~~$27.6~~$10.2 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default.

The Company’s long-term debt instruments and balances outstanding as of ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ and December 31, ~~2019~~2020 were as follows (dollars in thousands):

June 30,

December 31,

2020

2019

2019

Securitization notes

$
292,794

$
173,675

$
307,885

Revolving line of credit

—

—

72,000

8.50% senior notes due 2024

250,000

250,000

250,000

8.50% senior notes due 2025

375,000

375,000

375,000

Subtotal

917,794

798,675

1,004,885

Less: Long-term debt issuance costs

(11,206
)

(13,171
)

(13,704
)
Total long-term debt

$
906,588

$
785,504

$
991,181

				Weighted					Outstanding
				average	Borrowing				March 31,						December 31,
	Maturity date			interest rate⁽⁸⁾	capacity				2021			2020			2020
Funding Debt:
2018-1 Securitization Facility	July 2023	⁽¹	⁾	5.00%	$	150,000			$	32,774		$	52,000		$	39,901
2018-2 Securitization Facility	October 2022	⁽²	⁾	3.87%		26,850				26,850			110,000			49,519
2019-1 Securitization Facility	February 2022	⁽³	⁾	—		—				—			50,000			30,000
2018-A Notes	May 2026			7.37%		13,138				13,138			34,078			18,140
2019-A Notes	June 2026			6.61%		55,252				55,252			127,798			68,782
OnDeck Account Receivables Trust 2013-1	May 2021	⁽⁴	⁾	—		—				—			—			29,728
Receivable Assets of OnDeck	December 2023	⁽⁵	⁾	2.62%		100,000				—			—			22,915
OnDeck Asset Funding II	August 2022	⁽⁶	⁾	3.12%		175,000				2,605			—			52,773
Other funding debt⁽⁹⁾	Various	⁽⁷	⁾	4.54%		61,218				24,682			—			19,885
Total funding debt				5.50%	$	581,458			$	155,301		$	373,876		$	331,643
Corporate Debt:
8.50% Senior Notes Due 2024	September 2024			8.50%	$	250,000			$	250,000		$	250,000		$	250,000
8.50% Senior Notes Due 2025	September 2025			8.50%		375,000				375,000			375,000			375,000
Revolving line of credit	June 2022			4.25%		125,000	⁽¹⁰	⁾		102,000			105,250			—
Other corporate debt	April 2022			1.00%		795				795			—			—
Total corporate debt				7.90%	$	750,795			$	727,795		$	730,250		$	625,000
Less: Long-term debt issuance costs									$	(8,316	)	$	(12,382	)	$	(9,171	)
Less: Debt discounts										(266	)		(12	)		(1,011	)
Total long-term debt									$	874,514		$	1,091,732		$	946,461

Weighted average interest rates on long-term debt were ~~8.06%~~8.61% and ~~8.85%~~8.15% during the ~~six~~three months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019,~~ respectively. As of ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ and December 31, ~~2019,~~2020, the Company was in compliance with all covenants and other requirements set forth in the prevailing long-term debt agreements.

On September 19, 2018, the Company issued and sold $375.0 million in aggregate principal amount of 8.50% Senior Notes due 2025 (the “2025 Senior Notes”). The 2025 Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States pursuant to Regulation S under the Securities Act. The 2025 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2019. The 2025 Senior Notes were sold at a price of 100%. The 2025 Senior Notes will mature on September 15, 2025. The 2025 Senior Notes are unsecured debt obligations of the Company, and are unconditionally guaranteed by certain of the Company’s domestic subsidiaries.

The 2025 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 15, 2021 at 100% of the aggregate principal amount of 2025 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2025 Notes (the “2025 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 15, 2021 at the premium, if any, specified in the 2025 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 15, 2021, at its option, the Company may redeem up to 40% of the aggregate principal amount of the 2025 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2025 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2025 Senior Notes Indenture.

The 2025 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

The Company used a portion of the net proceeds of the 2025 Senior Notes offering to retire $295.0 million of the remaining outstanding 9.75% senior notes due 2021 (the “2021 Senior Notes) and pay the related accrued interest, premiums, fees and expenses associated therewith. The remaining amount was used for general corporate purposes.

On September 1, 2017, the Company issued and sold $250.0 million in aggregate principal amount of 8.50% Senior Notes due 2024 (the “2024 Senior Notes”). The 2024 Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act. The 2024 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The 2024 Senior Notes were sold at a price of 100%. The 2024 Senior Notes will mature on September 1, 2024. The 2024 Senior Notes are unsecured debt obligations of the Company, and are unconditionally guaranteed by certain of its domestic subsidiaries.

The 2024 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100% of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2024 Notes (the “2024 Senior Notes Indenture”31, 2021, OnDeck Asset Funding II, LLC (“ODAF II”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 1, 2020, at its option, the Company may redeem up to 40% of the aggregate principal amount of the 2024 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2024 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2024 Senior Notes Indenture.

The 2024 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

The Company used the net proceeds of the 2024 Senior Notes offering to retire a portion of the 2021 Senior Notes, to pay the related accrued interest, premiums, fees and expenses associated therewith and for general corporate purposes.

On October 17, 2019 (the “2019-A Closing Date”), the Company issued $138,888,000 Class A Asset Backed Notes (the “2019-A Class A Notes”), $44,445,000 Class B Asset Backed Notes (the “2019-A Class B Notes”), and $16,667,000 Class C Asset Backed Notes (the “2019-A Class C Notes” and, collectively with the 2019-A Class A Notes and the 2019-A Class B Notes, the “2019-A Notes”), through an indirect subsidiary. The 2019-A Class A Notes bear interest at 3.96%, the 2019-A Class B Notes bear interest at 6.17%, and the 2019-A Class C Notes bear interest at 7.62%. The 2019-A Notes ~~are backed by a pool of~~ ~~unsecured consumer installment loans~~ ~~(“Securitization Receivables”)~~ ~~and represent obligations of the issuer only. The 2019-A Notes are not guaranteed by the Company. Under the 2019‑A Notes, Securitization Receivables are sold to~~ a wholly-owned subsidiary of the Company, ~~and serviced by another subsidiary of~~amended (the “ODAF II Amendment”) its asset-backed revolving debt facility (the “ODAF II Facility”) to modify the ~~Company. As of June 30, 2020, and December 31, 2019 the total outstanding amount of the 2019-A Notes was $101.4 million and $173.3 million, respectively.~~

The net proceeds of the offering of the 2019-A Notes on the 2019-A Closing Date were used to acquire the Securitization Receivables from the Company, fund a reserve account and pay fees and expenses incurred in connection with the transaction. The amount of Securitization Receivables sold to the issuer on the 2019-A Closing Date was approximately $200.0 million. Additional Securitization Receivables totaling approximately $22.2 million were sold to the issuer prior to December 31, 2019.

The 2019-A Notes were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act. The 2019-A Notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

~~On February 25, 2019 (the “2019‑1 Closing Date”), the Company and several of its subsidiaries entered into a receivables securitization (the “2019‑1 Facility”) with PCAM~~ Credit II, LLC, as lender (the “2019‑1 Lender”). The 2019‑1 Lender is an affiliate of Park Cities Asset Management, LLC. The 2019‑1 Facility finances Securitization Receivables that have been and will be originated or acquired under the Company’s NetCredit and CashNetUSA brands by several of the Company’s subsidiaries and that meet

specified eligibility criteria. Under the 2019‑1 Facility, eligible Securitization Receivables are sold to a wholly-owned subsidiary of the Company (the “2019‑1 Debtor”) and serviced by another subsidiary of the Company.

~~The~~ ~~2019‑1~~ Debtor has issued a delayed draw term note with an initial maximum principal balance of $30.0 million and a revolving note with an initial maximum principal balance of $20.0 million for an aggregate initial maximum principal balance of $50.0 million, which is required to be secured by eligible Securitization Receivables. The ~~2019‑1~~ ~~Facility has an accordion feature that, with the consent of the~~ ~~2019‑1~~ Lender, allows for the maximum principal balance of the delayed draw term note to increase to $50.0 million and the maximum principal balance of the revolving note to increase to $25.0 million, for an aggregate maximum principal balance of $75.0 million. The ~~2019‑1~~ ~~Facility is non-recourse to the Company and matures three years after the~~ ~~2019‑1~~ ~~Closing Date.~~ ~~As of June 30, 2020 and 2019 and December��31, 2019, the total outstanding amount of the 2019‑1 Facility was $30.0 million, $12.8 million and $12.8 million, respectively.~~

~~The~~ ~~2019‑1~~ ~~Facility is governed by a loan and security agreement,~~Agreement, dated as of August 8, 2018, by and among ODAF II, as Borrower, the ~~2019‑1~~ ~~Closing Date, between~~Lenders party thereto from time to time, Ares Agent Services, L.P., as Administrative Agent and Collateral Agent, and Wells Fargo Bank, N.A, as Paying Agent. The ODAF II Amendment extends the ~~2019‑1~~ ~~Lender and~~period during which an Enova Merger Change of Control (as defined in the ~~2019‑1~~ ~~Debtor. The~~ ~~2019‑1~~ ~~Facility bears interest at a rate per annum equal to LIBOR (subject to a floor) plus an applicable margin, which applicable margin is initially 9.75%. In addition, the~~ ~~2019‑1~~ ~~Debtor is required to pay certain customary upfront closing fees to the~~ ~~2019‑1~~ ~~Lender. Interest payments on the~~ ~~2019‑1~~ ~~Facility~~ODAF II Facility) will ~~be made monthly. Subject to certain exceptions, the~~ ~~2019‑1~~ ~~Debtor is~~ not ~~permitted to prepay the delayed draw term note prior to two years after the~~ ~~2019‑1~~ ~~Closing Date. Following such date, the~~ ~~2019‑1~~ ~~Debtor is permitted to voluntarily prepay the~~ ~~2019‑1~~ ~~Facility without penalty. The revolving note may be paid in whole or in part at~~trigger any ~~time after the delayed draw term note has been fully drawn.~~

~~All amounts due~~amortization event under the ~~2019‑1~~ ODAF II Facility ~~are secured by all of the~~ ~~2019‑1~~ ~~Debtor’s assets, which include the eligible Securitization Receivables transferred to the~~ ~~2019‑1~~ ~~Debtor, related rights under the eligible Securitization Receivables, a bank account~~through June 30, 2021, and makes certain ~~other related collateral. The Company has issued a limited indemnity to the~~ ~~2019‑1~~ ~~Lender for certain “bad acts,” and the Company has agreed for the benefit of the~~ ~~2019‑1~~ ~~Lender to meet certain ongoing financial performance covenants.~~

~~The~~ ~~2019‑1~~ ~~Facility documents contain customary provisions for securitizations, including representations and warranties as to the eligibility of the eligible Securitization Receivables~~technical, definitional, conforming and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters; and default and termination provisions which provide for the acceleration of the ~~2019‑1~~ Facility in circumstances including, but not limited to, failure to make payments when due, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the eligible Securitization Receivables, defaults under other material indebtedness of the ~~2019‑1~~ ~~Debtor and a default by the Company under its financial performance covenants.~~

On October 31, 2018 (the “2018‑A Closing Date”), the Company issued $95,000,000 Class A Asset Backed Notes (the “2018-A Class A Notes”) and $30,400,000 Class B Asset Backed Notes (the “2018-A Class B Notes” and, collectively with the 2018-A Class A Notes, the “2018‑A Notes”), through an indirect subsidiary. The 2018-A Class A Notes bear interest at 4.20% and the 2018-A Class B Notes bear interest at 7.37%. The 2018‑A Notes are backed by a pool of unsecured consumer installment loans (“Securitization Receivables”) and represent obligations of the issuer only. The 2018‑A Notes are not guaranteed by the Company. Under the 2018‑A Notes, Securitization Receivables are sold to a wholly-owned subsidiary of the Company and serviced by another subsidiary of the Company. As of June 30, 2020 and 2019 and December 31, 2019, the total outstanding amount of the 2018‑A Notes was $28.1 million, $63.1 million and $41.8 million, respectively.

The net proceeds of the offering of the 2018‑A Notes on the 2018‑A Closing Date were used to acquire the Securitization Receivables from the Company, fund a reserve account and pay fees and expenses incurred in connection with the transaction.

~~The 2018~~‑A Notes were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act. The 2018‑A Notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

~~On October 23, 2018, the Company and several of its subsidiaries entered into a receivables funding agreement (the “2018~~‑~~2 Facility”) with Credit Suisse AG, New York Branch, as agent (the “2018~~‑~~2 Agent”). The 2018~~‑~~2 Facility collateralizes Securitization Receivables that have been and will be originated or acquired under the Company’s NetCredit brand by several of its subsidiaries and~~

~~that meet specified eligibility criteria in exchange for a revolving note. Under the 2018~~‑~~2 Facility, Securitization Receivables are sold to a wholly-owned subsidiary of the Company (the “2018~~‑~~2 Debtor”) and serviced by another subsidiary of the Company.~~

~~The 2018~~‑2 Debtor has issued a revolving note with an initial maximum principal balance of $150.0 million, which is required to be secured by 1.25 times the drawn amount in eligible Securitization Receivables. The 2018‑~~2 Facility is non-recourse to the Company and matures on October 23, 2022.~~ ~~As of June 30, 2020 and 2019 and December 31, 2019, the total outstanding amount of the 2018‑2 Facility was $86.1 million, $50.0 million and $80.0 million, respectively~~.

~~The 2018~~‑~~2 Facility is governed by a loan and security agreement, dated as of October 23, 2018, between the 2018~~‑~~2 Agent, the 2018~~‑~~2 Debtor and certain other lenders and agent parties thereto. The 2018~~‑~~2 Facility bears interest at a rate per annum equal to one-month LIBOR (subject to a floor) plus an applicable margin, which rate per annum is 3.75%. In addition, the 2018~~‑~~2 Debtor paid certain customary upfront closing fees to the 2018~~‑~~2 Agent. Interest payments on the 2018~~‑~~2 Facility will be made monthly. The 2018~~‑~~2 Debtor shall be permitted to prepay the 2018~~‑~~2 Facility, subject to certain fees and conditions. Any remaining amounts outstanding will be payable no later than October 23, 2022, the final maturity date.~~

~~All amounts due under the 2018~~‑~~2 Facility are secured by all of the 2018~~‑~~2 Debtor’s assets, which include the Securitization Receivables transferred to the 2018~~‑~~2 Debtor, related rights under the Securitization Receivables, a bank account and certain other related collateral.~~

~~The 2018~~‑2 Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Securitization Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters; and default and termination provisions that provide for the acceleration of the 2018‑2 Facility in circumstances including, but not limited to, failure to make payments when due, servicer defaults, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the Securitization Receivables and defaults under other material indebtedness of the 2018‑~~2 Debtor.~~

On July 23, 2018, the Company and several of its subsidiaries entered into a receivables funding agreement (the “2018‑1 Facility”) with Pacific Western Bank, as lender (the “2018‑1 Lender”). The 2018‑1 Facility collateralizes Securitization Receivables that have been and will be originated or acquired under the Company’s NetCredit brand by several of its subsidiaries and that meet specified eligibility criteria in exchange for a revolving note. Under the 2018‑1 Facility, Securitization Receivables are sold to a wholly-owned subsidiary of the Company (the “2018‑1 Debtor”) and serviced by another subsidiary of the Company.

The 2018‑1 Debtor has issued a revolving note with an initial maximum principal balance of $150.0 million, which is required to be secured by 1.25 times the drawn amount in eligible Securitization Receivables. The 2018‑1 Facility is non-recourse to the Company and matures on July 22, 2023. As of June 30, 2020 and 2019, the total outstanding amount of the 2018‑1 Facility was $47.2 million, $46.0 million, respectively. There was 0 balance outstanding on the 2018-1 Facility as of December 31, 2019.

~~The 2018~~‑~~1 Facility is governed by a loan and security agreement, dated as of July 23, 2018, between the 2018~~‑~~1 Lender and the 2018~~‑~~1 Debtor. The 2018~~‑~~1 Facility bears interest at a rate per annum equal to LIBOR (subject to a floor) plus an applicable margin, which rate per annum is initially 4.00%. In addition, the 2018~~‑~~1 Debtor paid certain customary upfront closing fees to the 2018~~‑~~1 Lender. Interest payments on the 2018‑1 Facility will be made monthly. The 2018‑1 Debtor shall be permitted to prepay the 2018~~‑1 Facility, subject to certain fees and conditions. In the event of prepayment for the purposes of securitizations, no fees shall apply. Any remaining amounts outstanding will be payable no later than July 22, 2023, the final maturity date.

~~All amounts due under the 2018~~‑~~1 Facility are secured by all of the 2018~~‑~~1 Debtor’s assets, which include the Securitization Receivables transferred to the 2018~~‑~~1 Debtor, related rights under the Securitization Receivables, a bank account and certain other related collateral.~~

~~The 2018~~‑1 Facility documents contain customary provisions for securitizations, including: representations and warranties as to the eligibility of the Securitization Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters; and default and termination provisions which provide for the acceleration of the 2018‑1 Facility in circumstances including, but not limited to, failure to make payments when due, servicer defaults, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the receivables and defaults under other material indebtedness of the 2018‑~~1 Debtor.~~

On June 30, 2017, the Company and certain of its operating subsidiaries entered into a secured revolving credit agreement with a syndicate of banks including TBK Bank, SSB (“TBK”), as administrative agent and collateral agent, Jefferies Finance LLC and TBK as Joint Lead Arrangers and joint lead bookrunners, and Veritex Community Bank (as successor in interest to Green Bank, N.A.), as lender (as amended the “Credit Agreement”). On April 13, 2018 and October 5, 2018, the Credit Agreement was amended to include Pacific Western Bank and Axos Bank, respectively, as lenders in the syndicate of lenders. Additionally, on July 1, 2019 the Credit Agreement was amended to, amongst other changes, extend the maturity date to June 30, 2022 from May 1, 2020 and increase the advance rate to 65% from 53%.

The Credit Agreement is secured by domestic receivables. The borrowing limit in the Credit Agreement, as amended, is $125 million and its maturity date is June 30, 2022. The Company had 0 outstanding borrowings under the Credit Agreement as of June 30, 2020 and 2019. As of December 31, 2019 the Company had outstanding borrowings under the Credit Agreement of $72.0 million.

The Credit Agreement provides for a revolving credit line with interest on borrowings under the facility at prime rate plus 1.00%. In addition, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the line, and ranges from 0.30% per annum to 0.50% per annum depending on usage. A portion of the revolving credit facility, up to a maximum of $20 million, is available for the issuance of letters of credit. The Company had outstanding letters of credit under the Credit Agreement of $1.0 million, $1.2 million and $1.2 million as of June 30, 2020 and 2019 and December 31, 2019, respectively. The Credit Agreement provides for certain prepayment penalties if it is terminated on or before its first and second anniversary date, subject to certain exceptions.

The Credit Agreement contains certain limitations on the incurrence of additional indebtedness, investments, the attachment of liens to the Company’s property, the amount of dividends and other distributions, fundamental changes to the Company or its business and certain other activities of the Company. The Credit Agreement contains standard financial covenants for a facility of this type based on a leverage ratio and a fixed charge coverage ratio. The Credit Agreement also provides for customary affirmative covenants, including financial reporting requirements, and certain events of default, including payment defaults, covenant defaults and other customary defaults.changes.

The Company’s effective tax rate for the ~~six~~three months ended ~~June 30, 2020~~March 31, 2021 was ~~28.2%~~26.7%, compared to ~~23.5%~~34.3% for the ~~six~~three months ended ~~June 30, 2019.~~March 31, 2020. The ~~increase~~decrease is primarily attributable to the ~~loss of excess tax benefits on~~significant increase in book operating income as compared to the prior year quarter and a lesser rate impact attributable to nondeductible executive and stock ~~compensation.~~compensation and other nondeductible expenses.

As of ~~June 30, 2020,~~March 31, 2021, the balance of unrecognized tax benefits was $~~45.3~~38.6 million, which is included in “Accounts payable and accrued expenses” on the consolidated balance sheet, ~~$16.7~~$10.9 million of which, if recognized, would favorably affect the effective tax rate in the period of recognition. The Company had ~~$45.2~~$53.5 million and ~~$53.6~~$39.0 million of unrecognized tax benefits as of ~~June 30,~~March 31, ~~2019~~2020 and December 31, ~~2019,~~2020, respectively. ~~The Company~~ believes it is reasonably possible that, within the next twelve months, unrecognized domestic tax benefits could change by a significant amount. The principal uncertainties are related to the timing of recognition of income and losses related to the Company’s loan portfolio. The Company is currently under a Joint Committee on Taxation review of certain tax returns that were filed during 2018 in conjunction with the refunds claimed on those returns. Depending upon the outcome of the review and any related agreements or settlements with the relevant taxing authorities, the amount of the uncertainty, including amounts that would be recognized as a component of the effective tax rate, could change significantly. While the total amount of uncertainty to be resolved is not clear, it is reasonably possible that the uncertainties pertaining to this matter will be resolved in the next twelve months. The Company believes that it has adequately accounted for any material tax uncertainties in its existing reserves for all open tax years.

The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including ~~2015.~~2016. However, the ~~2015~~2014 tax year is still open to the extent of the net operating loss that was carried back from the ~~2017~~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.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. The ~~CARES~~

~~Act did not have a material tax impact on the Company's consolidated financial condition as of and for the six months ended June 30, 2020. The~~ Company ~~plans to defer~~deferred the timing of federal tax estimates and payroll taxes as permitted by the CARES Act and ~~will avail~~has availed itself of net operating loss carryback provisions ~~to the extent possible, which may include changes to the uncertain tax position reserves~~.

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time.

The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands, except per share amounts):

	Three Months Ended					Six Months Ended						Three Months Ended
	June 30,					June 30,						March 31,
	2020		2019			2020			2019			2021		2020
Numerator:
Net income from continuing operations	$	48,026	$	30,626		$	53,774		$	69,605		$	75,920	$	5,748
Net loss from discontinued operations		—		(5,563	)		(288	)		(9,525	)		—		(288	)
Net income	$	48,026	$	25,063		$	53,486		$	60,080		$	75,920	$	5,460
Denominator:
Total weighted average basic shares		30,203		33,826			31,270			33,660			36,109		32,337
Shares applicable to stock-based compensation		149		643			322			791			1,378		496
Total weighted average diluted shares		30,352		34,469			31,592			34,451			37,487		32,833
Earnings per common share – basic:
Continuing operations	$	1.59	$	0.91		$	1.72		$	2.07		$	2.10	$	0.18
Discontinued operations		—		(0.17	)		(0.01	)		(0.29	)		—		(0.01	)
Earnings per common share – basic	$	1.59	$	0.74		$	1.71		$	1.78		$	2.10	$	0.17
Earnings per common share – diluted:
Continuing operations	$	1.58	$	0.89		$	1.70		$	2.02		$	2.03	$	0.18
Discontinued operations		—		(0.16	)		(0.01	)		(0.28	)		—		(0.01	)
Earnings per common share – diluted	$	1.58	$	0.73		$	1.69		$	1.74		$	2.03	$	0.17

For the three months ended ~~June 30,~~March 31, 2021 and 2020, 20,945 and ~~2019, 2,422,512 and 884,640~~1,757,937 shares of common stock underlying stock options, respectively, and ~~1,183,934~~80,047 and ~~28,072~~351,368 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. For the six months ended June 30, 2020 and 2019, 2,090,225 and 802,535 shares of common stock underlying stock options, respectively, and 767,651 and 17,130 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive.

The Company provides online financial services to non-prime credit consumers and small businesses in the United States, Australia and Brazil and has 1 reportable segment. The Company has aggregated all components of its business into a single operating segment based on the similarities of the economic characteristics, the nature of the products and services, the nature of the production and distribution methods, the shared technology platforms, the type of customer and the nature of the regulatory environment.

The following table presents the Company’s revenue by geographic region for the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ (dollars in thousands):

	Three Months Ended				Six Months Ended				Three Months Ended
	June 30,				June 30,				March 31,
	2020		2019		2020		2019		2021		2020
Revenue
United States	$	250,483	$	254,205	$	608,199	$	512,193	$	254,866	$	357,716
Other international countries		2,578		5,240		7,114		11,690		4,578		4,536
Total revenue	$	253,061	$	259,445	$	615,313	$	523,883	$	259,444	$	362,252

The Company’s long-lived assets, which consist of the Company’s property and equipment, were ~~$60.0~~$78.9 million, ~~$49.0~~$56.2 million and ~~$54.5~~$79.4 million at ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ and December 31, ~~2019,~~2020, respectively. The operations for the Company’s businesses are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial.

On April 23, 2018, the Commonwealth of Virginia, through Attorney General Mark R. Herring, filed a lawsuit in the Circuit Court for the County of Fairfax, Virginia against NC Financial Solutions of Utah, LLC (“NC Utah”), a subsidiary of the Company. The lawsuit

alleges violations of the Virginia Consumer Protection Act (“VCPA”) relating to NC Utah’s communications with customers, collections of certain payments, its loan agreements, and the rates it charged to Virginia borrowers. The plaintiff ~~is seeking~~sought to enjoin NC Utah from continuing its ~~current~~then-existing lending practices in Virginia, and still seeks restitution, civil penalties, and costs and expenses in connection with the same. Due to a change in the law, NC Utah no longer lends to Virginia residents and the injunctive remedies sought against NC Utah’s lending practices are no longer applicable. Neither the likelihood of an unfavorable decision nor the ultimate liability, if any, with respect to this matter can be determined at this time, and the Company is currently unable to estimate a range of reasonably possible losses, as defined by ASC 450-20-20, Contingencies–Loss Contingencies–Glossary, for this litigation. The Company carefully considered applicable Virginia law before NC Utah began lending in Virginia and, as a result, believes that the Plaintiff’s claims in the complaint are without merit and intends to vigorously defend this lawsuit.

The Company is also involved in certain routine legal proceedings, claims and litigation matters encountered in the ordinary course of its business. Certain of these matters may be covered to an extent by insurance or by indemnification agreements with third parties. The Company has recorded accruals in its consolidated financial statements for those matters in which it is probable that it has incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position, results of operations or liquidity.

~~The~~With the acquisition of OnDeck, the Company ~~has an agreement for direct mail production and fulfillment services with~~records its interest in OnDeck Canada under the equity method of accounting; as such, OnDeck Canada is deemed a marketing services company where David Fisher, the Company’s Chief Executive Officer and Chairman of the Board, also serves as a member of the marketing services company’s board of directors. The Company incurred $0.8 million and $3.3 during the three months ended June 30, 2020 and 2019, respectively, and $4.8 million and $5.9 during the six months ended June 30, 2020 and 2019, respectively, in expenses related ~~to these services.~~party. As of ~~June 30, 2020 and 2019~~March 31, 2021 and December 31, ~~2019,~~2020, the Company ~~owed the agency $40 thousand, $2.8~~had a due from affiliate balance of $1.1 million and ~~$4.6~~$1.2 million, respectively, related to ~~services provided, which was included in “Accounts payable~~OnDeck Canada that is primarily the result of labor and ~~accrued expenses”~~software charges from people and technology assets at the OnDeck parent company.

On February 24, 2021 the Company contributed the platform-as-service business assumed in the ~~consolidated balance sheets.~~

OnDeck acquisition to Linear in exchange for ownership units in that entity. The Company ~~believes that~~records its interest in Linear under the ~~transaction described above has been provided on terms no less favorable to~~equity method of accounting. As of March 31, 2021 the Company ~~than could have been negotiated~~had a due to affiliate balance of $3.0 million to Linear that is primarily comprised of the remaining balances associated with ~~non-affiliated third parties.~~the contribution and exchange.

The Company uses a hierarchical framework that prioritizes and ranks the market observability of inputs used in its fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market

prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows:

Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable.

Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level of input that is significant to the entire measurement. Such determination requires significant management judgment.

During the three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019,~~ there were 0 transfers of assets or liabilities in or out of Level 1, Level 2 or Level 3 fair value measurements. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values.

~~Effective January 1, 2020, the Company elected the fair value option to account for all loans and finance receivables.~~16

The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ and December 31, ~~2019~~2020 are as follows (dollars in thousands):

	June 30,		Fair Value Measurements Using						March 31,		Fair Value Measurements Using
	2020		Level 1		Level 2		Level 3		2021		Level 1		Level 2		Level 3
Financial assets:
Installment loans and RPAs⁽¹⁾⁽²⁾	$	587,540	$	—	$	—	$	587,540
Line of credit accounts⁽¹⁾		212,122		—		—		212,122
Consumer loans and finance receivables⁽¹⁾⁽²⁾									$	581,398	$	—	$	—	$	581,398
Small business loans and finance receivables⁽¹⁾⁽²⁾										649,313		—		—		649,313
Non-qualified savings plan assets⁽³⁾		3,440		3,440		—		—		4,839		4,839		—		—
Investment in trading security⁽⁴⁾		14,171		14,171		—		—		17,634		17,634		—		—
Total	$	817,273	$	17,611	$	—	$	799,662	$	1,253,184	$	22,473	$	—	$	1,230,711

	June 30,		Fair Value Measurements Using						March 31,		Fair Value Measurements Using
	2019		Level 1		Level 2		Level 3		2020		Level 1		Level 2		Level 3
Financial assets:
Consumer loans and finance receivables⁽¹⁾⁽²⁾									$	917,222	$	—	$	—	$	917,222
Small business loans and finance receivables⁽¹⁾										175,985		—		—		175,985
Non-qualified savings plan assets⁽³⁾	$	2,804	$	2,804	$	—	$	—		2,989		2,989		—		—
Investment in trading security⁽⁴⁾										9,729		9,729		—		—
Total	$	2,804	$	2,804	$	—	$	—	$	1,105,925	$	12,718	$	—	$	1,093,207

	December 31,		Fair Value Measurements Using						December 31,		Fair Value Measurements Using
	2019		Level 1		Level 2		Level 3		2020		Level 1		Level 2		Level 3
Financial assets:
Consumer loans and finance receivables⁽¹⁾⁽²⁾									$	625,219	$	—	$	—	$	625,219
Small business loans and finance receivables⁽¹⁾⁽²⁾										616,287		—		—		616,287
Non-qualified savings plan assets⁽³⁾	$	2,867	$	2,867	$	—	$	—		3,972		3,972		—		—
Investment in trading security⁽⁴⁾		11,449		11,449		—		—		19,273		19,273		—		—
Total	$	14,316	$	14,316	$	—	$	—	$	1,264,751	$	23,245	$	—	$	1,241,506

The Company primarily estimates the fair value of its loan and finance receivables portfolio using discounted cash flow models that have been internally developed. The models use inputs, such as estimated losses, prepayments, utilization rates, servicing costs and discount rates, that are unobservable but reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. ~~The following table presents quantitative information about the significant unobservable inputs used for the Company’s loan and finance receivables fair value measurements as of June 30, 2020:~~

Certain unobservable inputs may, in isolation, have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. An increase to the net loss rate, prepayment rate, servicing cost, or discount rate would decrease the fair value of the Company’s loans and finance receivables. When multiple inputs are used within the valuation techniques for loans, a change in one input in a certain direction may be offset by an opposite change from another input.

The fair value of the nonqualified savings plan assets was deemed Level 1 as they are publicly traded equity securities for which market prices of identical assets are readily observable.

The fair value of the investment in trading security was deemed Level 1 as it is a publicly traded fund with active market pricing that is readily available.

The Company had no0 liabilities measured at fair value on a recurring basis as of ~~June 30,~~March 31, ~~2020~~2021 and ~~2019~~2020 and December 31, ~~2019.~~2020.

The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a non-recurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. At ~~June 30,~~March 31, ~~2020~~2021 and ~~2019~~2020 and December 31, ~~2019,~~2020, there were 0 assets or liabilities recorded at fair value on a non-recurring basis.

The Company’s financial assets and liabilities as of ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ and December 31, ~~2019~~2020 that are not measured at fair value in the consolidated balance sheets are as follows (dollars in thousands):

	Balance at								Balance at
	June 30,		Fair Value Measurements Using						March 31,		Fair Value Measurements Using
	2020		Level 1		Level 2		Level 3		2021		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	321,472	$	321,472	$	—	$	—	$	324,328	$	324,328	$	—	$	—
Restricted cash ⁽¹⁾		43,547		43,547		—		—		49,879		49,879		—		—
Investment in unconsolidated investee⁽²⁾		6,918		—		—		6,918		6,918		—		—		6,918
Total	$	371,937	$	365,019	$	—	$	6,918	$	381,125	$	374,207	$	—	$	6,918
Financial liabilities:
Revolving line of credit									$	102,000	$	—	$	—	$	102,000
Securitization notes		292,794		—		293,098		—		155,035		—		156,584		—
8.50% senior notes due 2024		250,000		—		223,475		—		250,000		—		256,655		—
8.50% senior notes due 2025		375,000		—		339,124		—		375,000		—		389,940		—
Other long-term debt										795		—		—		795
Total	$	917,794	$	—	$	855,697	$	—	$	882,830	$	—	$	803,179	$	102,795

	Balance at
	June 30,		Fair Value Measurements Using
	2019		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	33,849	$	33,849	$	—	$	—
Restricted cash ⁽¹⁾		20,796		20,796		—		—
Installment loans and RPAs, net ⁽³⁾⁽⁴⁾		617,052		—		—		653,078
Line of credit accounts, net ⁽³⁾		212,406		—		—		212,406
Investment in unconsolidated investee⁽²⁾		6,703		—		—		6,703
Total	$	890,806	$	54,645	$	—	$	872,187
Financial liabilities:
Liability for estimated losses on consumer loans guaranteed by the Company	$	1,726	$	—	$	—	$	1,726
Securitization notes		173,675		—		174,293		—
8.50% senior notes due 2024		250,000		—		239,308		—
8.50% senior notes due 2025		375,000		—		354,814		—
Total	$	800,401	$	—	$	768,415	$	1,726

Cash and cash equivalents and restricted cash bear interest at market rates and have maturities of less than 90 days. The carrying amount of restricted cash and cash equivalents approximates fair value.

Prior to January 1, 2020 short-term loans, line of credit accounts, installment loans and RPAs were carried in the consolidated balance sheet net of the allowance for estimated losses, which was calculated by applying historical loss rates combined with recent default trends to the gross receivable balance. Short-term loans and line of credit accounts have relatively short maturity periods that are generally 12 months or less. The unobservable inputs used to calculate the fair value of these receivables included historical loss rates, recent default trends and estimated remaining loan term; therefore, the carrying value approximated the fair value. The fair value of installment loans and RPAs was estimated using discounted cash flow analyses, which considered interest rates on loans and discounts offered for receivables with similar terms to customers with similar credit quality, the timing of expected payments, estimated customer default rates and/or valuations of comparable portfolios. Unsecured installment loans typically have terms between two and 60 months. RPAs typically have estimated delivery terms between six and 18 months.

The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date.

In connection with its CSO programs, the Company guarantees consumer loan payment obligations to unrelated third-party lenders for short-term and installment loans the Company arranges for consumers on the third-party lenders’ behalf and is required to purchase any defaulted loans it has guaranteed. Prior to January 1, 2020 the Company measured the fair value of its liability for third-party lender-owned consumer loans under Level 3 inputs. The fair value of these liabilities was calculated by applying historical loss rates combined with recent default trends to the gross consumer loan balance. The unobservable inputs used to calculate the fair value of these loans included historical loss rates, recent default trends and estimated remaining loan terms; therefore, the carrying value of these liabilities approximated the fair value.

The Company measures the fair value of its revolving line of credit using Level 3 inputs. The Company considered the fair value of its other long-term debt and the timing of expected payment(s).

The fair values of the Company’s Securitization Notes and senior notes are estimated based on quoted prices in markets that are not active, which are deemed Level 2 inputs.

Subsequent events have been reviewed through the date these financial statements were available to be issued.

On July 28, 2020, the Company entered into a definitive agreement with On Deck Capital, Inc. (“OnDeck”) under which it will acquire all outstanding shares of OnDeck in a cash and stock transaction. Under the terms of the agreement, OnDeck shareholders will receive $0.12 cents per share in cash and 0.092 shares of Company common stock for each share of OnDeck common stock held. The transaction has been unanimously approved by the boards of directors of both companies and is subject to OnDeck shareholder approval and Hart-Scott-Rodino Act approval, along with customary closing conditions. The transaction is expected to close this year.

OnDeck offers a wide range of term loans and lines of credit customized for the needs of small business owners. The company also offers bank clients a comprehensive technology and services platform that facilitates online lending to small business customers through ODX, a wholly owned subsidiary. OnDeck has provided over $13 billion in loans to customers in 700 different industries across the United States, Canada and Australia.

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, ~~2019.~~2020. 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.

We are a leading technology and analytics company focused on providing online financial services. In ~~2019,~~2020, we extended approximately ~~$2.2~~$1.2 billion in credit or financing to borrowers and for the ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, we extended approximately ~~$0.6~~$0.5 billion in credit or financing to borrowers. As of ~~June 30, 2020,~~March 31, 2021, we offered or arranged loans or draws on lines of credit to consumers in 4038 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, 2020,~~March 31, 2021, we have completed over ~~52.2~~53.6 million customer transactions and collected more than 3749 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 15more than 16 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 ~~the~~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 ~~2019,~~2020, we processed approximately ~~3.8~~2.0 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 ~~May 2017,~~January 2020, we ~~expanded products available~~acquired Cumulus Funding, Inc. (doing business as Align, “Align”), which offers income share agreements to U.S. consumers with repayment rates based on a percentage of customers’ income. 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 ~~by offering installment loans.~~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, 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 ~~partners~~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 ~~they~~ 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 ~~technology~~technological innovations differentiates our capabilities relative to ~~competitive~~competing platforms as evidenced by our history of strong growth and stable ~~portfolio~~credit quality.

Our online financing products and services provide customers with a deposit of funds ~~into~~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, ~~and RPAs and~~ line of credit ~~accounts.~~accounts, receivables purchase agreements (“RPAs”) and income share agreements to consumers and small businesses. We also offer an analytics-as-a-service solution for businesses. We have one reportable segment that includes all of our online financial services.

~~We have been investing and will continue to invest in the growth of our near-prime installment lending portfolio.~~

As of June 30, 2020 and 2019, the outstanding amount of active and current consumer loans originated by third-party lenders under the CSO programs was $6.1 million and $21.5 million, respectively, which were guaranteed by us.

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.

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.

On March 7, 2020, SB 421 passed through both houses of the Virginia Legislature. The bill amends laws governing open-end lines of credit to cap interest and fees at 36% annual interest plus a $50 annual participation fee. Further, the law would allow Virginia-licensed lenders to make installment loans at 36% APR plus a loan processing fee equal to the greater of $75 or 5% of the principal loan amount, but not exceeding $150. The law ~~is scheduled to go~~went into effect on January 1, 2021.

On March 23, 2021, the Economic Equity Act (“EEA”) became effective in Illinois. The EEA implements a 36% rate cap on all consumer lending, with the APR calculated consistent with the Military Lending Act’s Military Annual Percentage Rate. The EEA applies to consumer loans originated on or after the effective date. In addition, the EEA provides for the application of a predominant economic interest test for bank service arrangements. Pursuant to the economic interest test, a broker or service with a predominant economic interest in a loan is considered to be the “true lender” for purposes of applying the EEA and the 36% rate cap.

On August 14, 2018, Brazil adopted the General Data Privacy Law (Lei Geral de Proteção de Dados Pessoais or “LGPD”). The key provisions of LGPD are quite similar to the European Union’s General Data Protection Regulation (“GDPR”) in that it grants certain rights to data subjects, imposes obligations on companies with regard to the processing of data, and allows authorities to impose substantial fines on companies that violate the law. LGPD was originally anticipated to go into effect on February 15, 2020; however, several amendments to LGPD have been proposed, one of which could delay the effective date of the legislation to August 2020.

Compliance with LGPD may increase the cost of conducting business in Brazil, and we could see regulatory compliance costs and enforcement activity once the law goes into effect.

Prior to January 1, 2020, we carried our loans and finance receivables at amortized cost, net of an allowance for estimated losses inherent in the portfolio. Effective January 1, 2020, we elected the fair value option to account for all our loans and finance receivables in conjunction with the transition guidance specified in ASU 2019-05. We believe the fair value option better reflects the value of our portfolio and its future economic performance as well as more closely aligns with our marginal decision-making processes that rely on risk-based pricing and discounted cash flow methodologies. Refer to Note 1 for discussion of the election and its impact on our accounting policies. In comparing our current year results under the fair value option to prior periods, it may be helpful to consider the following:

Prior to 2020, origination fees as well as certain direct costs associated with originating loans were deferred and amortized into or against revenue on an effective yield basis over the term of the loan or the projected delivery term of the finance receivable. Subsequent to the election of the fair value option, these fees and costs are no longer eligible for deferral. As such, we expect revenue to be slightly higher due to origination fees being immediately recognized and the lack of amortization of deferred costs into revenue. As origination costs are no longer eligible for deferral, we expect marketing and operations and technology expenses to be higher, particularly in periods of growth.

Loans and finance receivables are carried at fair value with changes in fair value recorded in the consolidated income statement. The fair value takes into consideration expected lifetime losses of the loans and finance receivables, whereas the prior method incorporated only incurred losses. As such, changes in credit quality, amongst other significant assumptions, typically have a more significant impact on the carrying value of loans and finance receivables under the fair value option.

The COVID-19 pandemic has, and will likely continue to, severely impact 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 have implemented a number of procedures in response to the pandemic to support the safety and well-being of our employees, customers and ~~shareholders~~stockholders that continue through the date of this report:

From a loan valuation perspective, the COVID-19 pandemic significantly increases the potential variability of our expected cash flows. In the latter half of March 2020, we noted a slight worsening in certain credit metrics, such as delinquencies, that we attributed primarily to the impact of the COVID-19 pandemic. Consequently, the associated fair values of these loans were adjusted lower as part of the standard process in our internally-developed valuation models described in the Notes to the Consolidated Financial Statements as well as the “Critical Accounting Estimates” section of this Form 10-Q. In addition, the number of loans with payment deferrals or other modifications increased meaningfully in the latter half of March. While not considered delinquent, we expect these customers to present a higher default risk than typical non-delinquent customers that continue to pay on a timely basis; therefore, we adjusted the fair value of these loans lower to reflect the increased risk. We ~~also~~ deemed it appropriate to increase the discount rate to capture the increase in potential volatility in expected cash flows due to the unprecedented nature of this pandemic and governmental response. ~~After~~As of March 31, 2020, after adjusting the discount rate for the decrease in underling interest rates, we increased the rate by 500 basis points based on what we deemed a market participant would require to assume the additional risk. Consequently, the associated fair values of these loans were adjusted lower as part of the standard process in our internally-developed valuation models.These rates remained consistent for the remainder of 2020. During the current quarter, we noted a tightening of credit spreads in observable pricing in the market; as such, we reduced the discount rate used in our valuations as of March 31, 2021 by 100 basis points. Our discount rates are still higher than those used immediately prior to the

COVID-19 pandemic, which we believe is representative of what a market participant would use due to the continued high level of risk and potential volatility.

The number of loans with payment deferrals or other modifications increased meaningfully toward the end of the first quarter and into the second quarter of 2020. These requests for deferrals and modifications decreased meaningfully over the remainder of 2020 and into 2021. Since the beginning of the pandemic, we have assessed performance of borrowers that had elected to defer or modify loan payments during the pandemic. As of March 31, 2021, our collection data does not appear to indicate increased risk with these borrowers. As modifications and deferrals do not appear to be a strong indicator of future activity, we did not make an adjustment to the fair value of these loans at March 31, 2021 based on current or past modification or deferral.

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. Both delinquencies and charge-offs in the first quarter of 2021 are below the pre-COVID period.The U.S. government passed additional stimulus packages in December 2020 and March 2021, which included stimulus checks to consumers and additional funding into the Paycheck Protection Program (“PPP”) for businesses. Positive COVID-19 test counts generally decreased across the current quarter as vaccine distribution accelerated. However, the momentum slowed and reversed by the end of March, causing significant concern among public health officials and governmental bodies. Questions on the efficacy of the vaccines in use against new variants of COVID-19 were increasing. In evaluating inputs to our valuation models as of March 31, 2021, we noted that delinquencies and charge-off experience were low, both of which were likely to have been favorably impacted by governmental stimulus efforts. Future stimulus is uncertain and, if not provided at the same levels or at all, could cause future behavior to deviate from past performance. Similar to our loan valuations at December 31, 2020, 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, which reduced the fair value of our portfolio at March 31, 2021. We deemed the resulting fair value to be an appropriate market-based exit price that considers current market conditions at March 31, ~~2020.~~

Early in the second quarter of 2020, the trend from the first quarter of increasing requests for deferrals and other modifications continued. This trend reversed mid-quarter as requests for deferrals and modifications decreased meaningfully. Charge-offs in the quarter trended closer to pre-COVID-19 rates. Further, delinquency levels were also in line with pre-COVID historical averages. However, we continue to believe that customers with deferrals and modifications present a higher default risk than typical non-delinquent customers that continue to pay on a timely basis. As such, consistent with the valuation as of March 31, 2020, we have

adjusted the fair value of these loans lower as of June 30, 2020 to reflect the increased risk. In addition, as of June 30, 2020, we noted that certain governmental stimulus funds were nearing depletion and that the extension of enhanced unemployment benefits was uncertain. Moreover, COVID-positive test results were increasing in a majority of US states, with some governments reversing portions of their reopening plans. Management concluded that the probability of future charge-offs was higher than what we have experienced in the past and, therefore, increased anticipated charge-offs in our fair value models, which reduced the fair value of our portfolio at June 30, 2020. As the potential variability in expected cash flows is still high, we maintained the elevated discount rates utilized at March 31, 2020 in our valuation as of June 30, 2020.2021.

We continue to closely monitor this pandemic and expect to make future changes to respond to the situation as it continues to evolve.

Our financial results for the three-month period ended ~~June 30, 2020,~~March 31, 2021, or the current quarter, are summarized below.

The following tables reflect our results of operations for the periods indicated, both in dollars and as a percentage of total revenue (dollars in thousands, except per share data):

	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended March 31,
	2020			2019			2020			2019			2021			2020
Revenue
Loans and finance receivables revenue	$	251,702		$	259,201		$	611,508		$	523,326		$	257,297		$	359,806
Other		1,359			244			3,805			557			2,147			2,446
Total Revenue		253,061			259,445			615,313			523,883			259,444			362,252
Change in Fair Value		(120,672	)		—			(356,391	)		—			(21,078	)		(235,719	)
Cost of Revenue		—			(123,433	)		—			(242,291	)
Net Revenue/Gross Profit		132,389			136,012			258,922			281,592
Net Revenue														238,366			126,533
Expenses
Marketing		2,988			25,861			37,546			44,922			28,568			34,558
Operations and technology		16,504			20,057			47,770			40,636			35,627			31,266
General and administrative		22,336			28,244			50,287			57,295			44,089			27,951
Depreciation and amortization		4,004			3,681			7,674			7,615			6,627			3,670
Total Expenses		45,832			77,843			143,277			150,468			114,911			97,445
Income from Operations		86,557			58,169			115,645			131,124			123,455			29,088
Interest expense, net		(20,372	)		(18,116	)		(40,753	)		(37,618	)		(19,914	)		(20,381	)
Foreign currency transaction (loss) gain		(18	)		(35	)		23			(178	)		(34	)		41
Loss on early extinguishment of debt		—			—			—			(2,321	)		(378	)		—
Equity method investment income														558			—
Income before Income Taxes		66,167			40,018			74,915			91,007			103,687			8,748
Provision for income taxes		18,141			9,392			21,141			21,402			27,716			3,000
Net income from continuing operations before noncontrolling interest														75,971			5,748
Less: Net income attributable to noncontrolling interest														51			—
Net income from continuing operations		48,026			30,626			53,774			69,605			75,920			5,748
Net loss from discontinued operations		—			(5,563	)		(288	)		(9,525	)		—			(288	)
Net Income	$	48,026		$	25,063		$	53,486		$	60,080
Earnings Per Share:
Earnings per common share - diluted:
Net income attributable to Enova International, Inc.													$	75,920		$	5,460
Earnings (Loss) Per Share attributable to Enova International, Inc.:
Earnings (loss) per common share - diluted:
Continuing operations	$	1.58		$	0.89		$	1.70		$	2.02		$	2.03		$	0.18
Discontinued operations		—			(0.16	)		(0.01	)		(0.28	)		—			(0.01	)
Total earnings common share - diluted	$	1.58		$	0.73		$	1.69		$	1.74
Total earnings (loss) common share - diluted													$	2.03		$	0.17

Revenue
Loans and finance receivables revenue		99.5	%		99.9	%		99.4	%		99.9	%		99.2	%		99.3	%
Other		0.5			0.1			0.6			0.1			0.8			0.7
Total Revenue		100.0			100.0			100.0			100.0			100.0			100.0
Change in Fair Value		(47.7	)		—			(57.9	)		—			(8.1	)		(65.1	)
Cost of Revenue		—			(47.6	)		—			(46.2	)
Net Revenue/Gross Profit		52.3			52.4			42.1			53.8
Net Revenue														91.9			34.9
Expenses
Marketing		1.2			10.0			6.1			8.6			11.0			9.6
Operations and technology		6.5			7.7			7.8			7.8			13.7			8.6
General and administrative		8.8			10.9			8.2			10.9			17.0			7.7
Depreciation and amortization		1.6			1.4			1.2			1.5			2.6			1.0
Total Expenses		18.1			30.0			23.3			28.8			44.3			26.9
Income from Operations		34.2			22.4			18.8			25.0			47.6			8.0
Interest expense, net		(8.1	)		(7.0	)		(6.6	)		(7.2	)		(7.7	)		(5.6	)
Foreign currency transaction (loss) gain		—			—			—			—			—			—
Loss on early extinguishment of debt		—			—			—			(0.4	)		(0.1	)		—
Equity method investment income														0.2			—
Income before Income Taxes		26.1			15.4			12.2			17.4			40.0			2.4
Provision for income taxes		7.1			3.6			3.5			4.1			10.7			0.8
Net income from continuing operations before noncontrolling interest														29.3			1.6
Less: Net income attributable to noncontrolling interest														—			—
Net income from continuing operations		19.0			11.8			8.7			13.3			29.3			1.6
Net loss from discontinued operations		—			(2.1	)		—			(1.8	)		—			(0.1	)
Net Income		19.0	%		9.7	%		8.7	%		11.5	%
Net income attributable to Enova International, Inc.														29.3	%		1.5	%

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.

We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. 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.

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.

The following table provides reconciliations between net income and diluted earnings per share calculated in accordance with GAAP to the Adjusted Earnings Measures ~~which are shown net of tax~~ (in thousands, except per share data):

	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2020			2019			2020			2019			2021			2020
Net income from continuing operations	$	48,026		$	30,626		$	53,774		$	69,605		$	75,920		$	5,748
Adjustments:
Lease termination and cease-use costs		—			—			—			726
Transaction-related costs^(a)														1,412			—
Loss on early extinguishment of debt^(b)														378			—
Intangible asset amortization														1,151			267
Stock-based compensation expense														5,804			3,460
Foreign currency transaction loss (gain)														34			(41	)
Cumulative tax effect of adjustments														(2,209	)		(868	)
Adjusted earnings													$	82,490		$	8,566

Diluted earnings per share from continuing operations													$	2.03		$	0.18
Adjustments:
Transaction-related costs														0.04			—
Loss on early extinguishment of debt		—			—			—			2,321			0.01			—
Intangible asset amortization		268			267			535			535			0.03			0.01
Stock-based compensation expense		3,660			3,323			7,120			6,397			0.15			0.10
Foreign currency transaction loss (gain)		18			35			(23	)		178			—			—
Cumulative tax effect of adjustments		(929	)		(843	)		(1,797	)		(2,362	)		(0.06	)		(0.03	)
Discrete tax adjustments		—			—			—			(141	)
Adjusted earnings	$	51,043		$	33,408		$	59,609		$	77,259

Diluted earnings per share from continuing operations	$	1.58		$	0.89		$	1.70		$	2.02
Adjustments:
Lease termination and cease-use costs		—			—			—			0.02
Loss on early extinguishment of debt		—			—			—			0.07
Intangible asset amortization		0.01			0.01			0.02			0.02
Stock-based compensation expense		0.12			0.10			0.23			0.19
Foreign currency transaction loss (gain)		—			—			—			—
Cumulative tax effect of adjustments		(0.03	)		(0.03	)		(0.06	)		(0.08	)
Discrete tax adjustments		—			—			—			—
Adjusted earnings per share	$	1.68		$	0.97		$	1.89		$	2.24		$	2.20		$	0.26

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, loss on early extinguishment of debt and ~~lease termination and cease-use costs~~equity method investment income shown below are useful to investors in order to allow them to compare our financial results during the periods shown without the effect of the income or expense items. The computation of Adjusted EBITDA, as presented below, may differ from the computation of similarly-titled measures provided by other companies (in thousands):

	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2020			2019			2020			2019			2021			2020
Net income from continuing operations	$	48,026		$	30,626		$	53,774		$	69,605		$	75,920		$	5,748
Depreciation and amortization expenses		4,004			3,681			7,674			7,615			6,621			3,670
Interest expense, net		20,372			18,116			40,753			37,618			19,755			20,381
Foreign currency transaction loss (gain)		18			35			(23	)		178
Foreign currency transaction loss														34			(41	)
Provision for income taxes		18,141			9,392			21,141			21,402			27,716			3,000
Stock-based compensation expense		3,660			3,323			7,120			6,397			5,804			3,460
Adjustment:
Lease termination and cease-use costs		—			—			—			370
Transaction-related costs^(a)														1,412			—
Loss on early extinguishment of debt(b)		—			—			—			2,321			378			—
Equity method investment income														(558	)		—
Adjusted EBITDA	$	94,221		$	65,173		$	130,439		$	145,506		$	137,082		$	36,218

Adjusted EBITDA margin calculated as follows:
Total Revenue	$	253,061		$	259,445		$	615,313		$	523,883		$	259,444		$	362,252
Adjusted EBITDA		94,221			65,173			130,439			145,506			137,082			36,218
Adjusted EBITDA as a percentage of total revenue		37.2	%		25.1	%		21.2	%		27.8	%		52.8	%		10.0	%

In addition to reporting financial results in accordance with GAAP, we have provided certain other non-GAAP financial information on a constant currency basis. Outside of the United States, we currently operate in ~~Brazil.~~Brazil and, with the acquisition of OnDeck Australia. During the current quarter, ~~1.0%~~1.8% of our revenue originated in currencies other than the U.S. Dollar, principally the Brazilian ~~Real.~~Real and Australian Dollar. As a result, changes in our reported revenue and profits include the impacts of changes in foreign currency exchange rates. We provide constant currency assessments in the following discussion and analysis to isolate the impact of the fluctuation in foreign exchange rates and utilize constant currency results in our analysis of performance. Our constant currency assessment assumes foreign exchange rates in the current fiscal periods remained the same as in the prior fiscal year periods. All conversion rates below are based on the U.S. Dollar equivalent to the applicable foreign currency:

	Three Months Ended							Three Months Ended
	June 30,							March 31,
	2020		2019		% Change			2021		2020		% Change
Australian dollar									0.7726	N/A		N/A
Brazilian Real		0.1858		0.2553		(27.2	)%		0.1827		0.2517		(27.4	)%

	Six Months Ended
	June 30,
	2020		2019		% Change
Brazilian real		0.2054		0.2603		(21.1	)%

We believe that our non-GAAP constant currency assessments are a useful measure, as they indicate the actual growth and profitability of our operations.

In addition to reporting loans and finance receivables balance information in accordance with GAAP (see Note 2 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, ~~allowance and liability for losses, cost of revenue~~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 ENDED ~~JUNE 30, 2020~~MARCH 31, 2021 COMPARED TO THREE MONTHS ENDED ~~JUNE 30, 2019~~MARCH 31, 2020

Revenue decreased ~~$6.3~~$102.8 million, or ~~2.5%~~28.4%, to ~~$253.1~~$259.4 million for the current quarter as compared to ~~$259.4~~$362.2 million for the prior year quarter. On a constant currency basis, revenue decreased by ~~$5.4~~$102.8 million, or ~~2.1%~~28.4%, for the current quarter compared to the prior year quarter. The decrease was driven by a ~~14.5%~~50.2% decrease in revenue from our sub-prime consumer portfolio and a 35.0% decrease in revenue from our near-prime consumer portfolio due to lower loan originations ~~in the current quarter. The decrease was partially offset by a 23.8% increase in revenue from our near-prime~~ and ~~a 28.6% increase in revenue from our small business portfolio driven by higher~~lower average loan balances in the current quarter compared to the prior year ~~quarter.~~quarter, partially offset by a 216.1% increase in revenue from our small business portfolio, primarily due to the acquisition of OnDeck.

Net revenue for the current quarter was ~~$132.4~~$238.4 million ~~for the current quarter~~ compared to ~~gross profit of $136.0~~$126.5 million for the prior year quarter. Our consolidated net revenue margin was ~~52.3%~~91.9% for the current quarter compared to ~~gross profit of 52.4%~~34.9% for the prior year quarter. The increase in net revenue margin was driven by lower delinquency rates and lower than expected charge-offs as a result of portfolio seasoning and lower originations.

The following table sets forth the components of revenue and gross profit, separated by product for the current quarter and the prior year quarter (in thousands):

	Three Months Ended June 30,												Three Months Ended March 31,
	2020			2019			$ Change			% Change			2021			2020			$ Change			% Change
Revenue by product:
Installment loans and RPAs	$	126,224		$	148,531		$	(22,307	)		(15.0	)%
Line of credit accounts		125,478			110,670			14,808			13.4
Consumer loans and finance receivables revenue													$	181,737		$	335,900		$	(154,163	)		(45.9	)%
Small business loans and finance receivables revenue														75,560			23,906			51,654			216.1
Total loans and finance receivables revenue		251,702			259,201			(7,499	)		(2.9	)		257,297			359,806			(102,509	)		(28.5	)
Other		1,359			244			1,115			457.0			2,147			2,446			(299	)		(12.2	)
Total revenue		253,061			259,445			(6,384	)		(2.5	)		259,444			362,252			(102,808	)		(28.4	)
Change in fair value		(120,672	)		—			(120,672	)		100.0			(21,078	)		(235,719	)		214,641			(91.1	)
Cost of revenue		—			(123,433	)		123,433			(100.0	)
Net revenue/gross profit	$	132,389		$	136,012		$	(3,623	)		(2.7	)%
Net revenue													$	238,366		$	126,533		$	111,833			88.4	%

Revenue by product (% to total):
Installment loans and RPAs		49.9	%		57.2	%
Line of credit accounts		49.6			42.7
Consumer loans and finance receivables revenue														70.1	%		92.7	%
Small business loans and finance receivables revenue														29.1			6.6
Total loans and finance receivables revenue		99.5			99.9									99.2			99.3
Other		0.5			0.1									0.8			0.7
Total revenue		100.0			100.0									100.0			100.0
Change in fair value		(47.7	)		—									(8.1	)		(65.1	)
Cost of revenue		—			(47.6	)
Net revenue/gross profit		52.3	%		52.4	%
Net revenue														91.9	%		34.9	%

The fair value of our loan and finance receivable portfolio in our consolidated financial statements at ~~June 30,~~March 31, 2021 was $1,230.7 million and $1,093.2 million as of March 31, 2021 and 2020, ~~was $799.7 million with an~~respectively. The outstanding principal balance of ~~$767.6 million. Our~~our loan and finance ~~receivable balance in our consolidated financial statements~~receivables portfolio was $1,219.8 million and $1,061.4 million as of ~~June 30, 2019 was $966.7 million, before the allowance for losses of $137.3 million.~~March 31, 2021 and 2020, respectively. The fair value of the combined loan and finance receivables portfolio includes ~~$6.6~~$7.2 million and $12.4 million with an outstanding principal balance of ~~$5.2~~$5.7 million and $10.3 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, 2020. The combined loan~~March 31, 2021 and finance receivables portfolio includes $21.5 million as of June 30, 2019 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, 2019 before the liability for estimated losses of $1.7 million provided in “Accounts payable and accrued expenses” in our consolidated financial statements for June 30, 2019.

~~The near-prime consumer installment portfolio balance increased to 58.3% of our combined loan and finance receivable portfolio balance as of June 30,~~ 2020, ~~compared to 50.1% as of June 30, 2019. The outstanding loan balance for our consumer line of credit~~respectively.

~~product decreased slightly to 19.4%~~With the acquisition of OnDeck, our ~~combined loan and finance receivable portfolio balance as of June 30, 2020, compared to 20.1% as of June 30, 2019. Our~~ portfolio of loans and finance receivables serving the needs of small businesses increased significantly to ~~14.9%~~55.1% of our combined loan and finance receivable portfolio as of ~~June 30, 2020,~~March 31, 2021, compared to ~~13.1%~~16.1% as of ~~June 30, 2019.~~March 31, 2020. The consumer portfolio balance decreased to 44.9% of our combined loan and finance receivable portfolio balance as of March 31, 2021, compared to 83.9% as of March 31, 2020. See “—Non-GAAP Disclosure—Combined Loans and Finance ~~Receivables”~~Receivables Measures” above for additional information related to combined loans and finance receivables.

The following tables summarize loan and finance receivable balances outstanding as of ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ (in thousands):

As of June 30, 2019

Guaranteed

Company

by the

Owned^(a)

Company^(a)

Combined^(b)

Ending loans and finance receivables balances:

Installment loans and RPAs

$
702,898

$
21,463

$
724,361

Line of credit accounts

263,825

—

263,825

Total ending loans and finance receivables, gross

966,723

21,463

988,186

Less: Allowance and liabilities for losses^(a)

(137,265
)

(1,726
)

(138,991
)
Total ending loans and finance receivables, net

$
829,458

$
19,737

$
849,195

Allowance and liability for losses as a % of loans and finance receivables, gross

14.2
%

8.0
%

14.1
%

	As of March 31, 2021									As of March 31, 2020
				Guaranteed									Guaranteed
	Company			by the						Company			by the
	Owned^(a)			Company^(a)			Combined^(b)			Owned^(a)			Company^(a)			Combined^(b)
Consumer loans and finance receivables
Principal	$	523,170		$	5,691		$	528,861		$	877,503		$	10,287		$	887,790
Fair value		581,398			7,246			588,644			917,222			11,798			929,020
Fair value as a % of principal		111.1	%		127.3	%		111.3	%		104.5	%		114.7	%		104.6	%
Small business loans and finance receivables
Principal	$	696,678		$	—		$	696,678		$	183,905		$	—		$	183,905
Fair value		649,313			—			649,313			175,985			—			175,985
Fair value as a % of principal		93.2	%		—	%		93.2	%		95.7	%		—	%		95.7	%
Total loans and finance receivables
Principal	$	1,219,848		$	5,691		$	1,225,539		$	1,061,408		$	10,287		$	1,071,695
Fair value		1,230,711			7,246			1,237,957			1,093,207			11,798			1,105,005
Fair value as a % of principal		100.9	%		127.3	%		101.0	%		103.0	%		114.7	%		103.1	%

At ~~June 30,~~March 31, 2021 and 2020, the ratio of fair value as a percentage of principal was ~~104.2%~~100.9% and 103.0%, respectively, on company owned loans and finance receivables and ~~104.3%~~101.0% and 103.1%, respectively, on combined loans and finance receivables. These ratios ~~increased during~~decreased compared to the ~~quarter~~prior year due primarily to loans acquired in the OnDeck acquisition in October 2020, as these loans have a lower ratio of fair value as a percentage of principal compared to the legacy Enova portfolio. These decreases were partially offset by the seasoning of the portfolio ~~seasoned~~ with ~~the~~ reduced level of originations, particularly to new customers, which carry a higher risk of charge-off. The increases were partially offset by higher expected future charge-offs at June 30, 2020, as discussed in “Results of Operations | COVID-19” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

The average amount outstanding per loan and finance receivable is calculated as the total combined loans ~~including accrued interest~~ and ~~fees,~~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, 2020~~March 31, 2021 and ~~2019:~~2020:

The average amount outstanding per loan and finance receivable increased to ~~$2,151~~$3,809 from ~~$1,485~~$2,178 during the current quarter compared to the prior year quarter, due primarily to an increase in the mix of loans and finance receivables held by small businesses in our portfolio as a ~~mix shift toward near-prime installment loan products, which generally have higher average amounts outstanding compared to subprime installment loan and line~~result of ~~credit products.~~our acquisition of OnDeck in October 2020.

The average loan and finance receivable origination amount is calculated as the total ~~principal~~ amount of combined loans and finance receivables originated, renewed and ~~renewed~~purchased for the period divided by the total number of combined loans and finance receivables originated, renewed and ~~renewed~~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:

The average loan and finance receivable origination amount ~~decreased~~increased to ~~$287~~$1,273 from ~~$627~~$610 during the current quarter compared to the prior year quarter, due primarily to ~~our deliberate reduction~~an increase in ~~origination amounts to mitigate risks associated with~~ the ~~COVID-19 pandemic, and a greater~~ mix of ~~line~~higher dollar amount loans and finance receivables to small businesses as a result of ~~credit draws from existing customer accounts which are generally smaller than initial new customer draws.~~our acquisition of OnDeck in 2020.

We monitor the performance of our ~~loan~~loans and finance ~~receivable.~~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 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):

	2019									2020						2020												2021
	Second			Third			Fourth			First			Second			First			Second			Third			Fourth			First
	Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter			Quarter
Ending combined loans and finance receivables, including principal and accrued fees/interest outstanding:
Company owned	$	945,881		$	1,086,163		$	1,210,262		$	1,145,748		$	816,905		$	1,145,748		$	816,905		$	698,964		$	1,310,171		$	1,265,987
Guaranteed by the Company^(a)		21,463			23,648			27,560			11,798			6,054			11,798			6,054			8,100			10,163			6,792
Ending combined loan and finance receivables balance^(b)	$	967,344		$	1,109,811		$	1,237,822		$	1,157,546		$	822,959		$	1,157,546		$	822,959		$	707,064		$	1,320,334		$	1,272,779
> 30 days delinquent		49,974			77,772			83,315			86,294			36,797			86,294			36,797			25,841			122,666			96,228
> 30 days delinquency rate		5.2	%		7.0	%		6.7	%		7.5	%		4.5	%		7.5	%		4.5	%		3.7	%		9.3	%		7.6	%

~~The following table includes financial information for our installment loans and RPAs. Delinquency metrics include principal, interest, and fees, and only amounts that are past due (in thousands):~~

2019

2020

Second

Third

Fourth

First

Second

Quarter

Quarter

Quarter

Quarter

Quarter

Installment loans and RPAs:

Installment and RPA combined loan and finance receivable principal balance:

Company owned

$
655,031

$
720,721

$
792,397

$
748,422

$
570,490

Guaranteed by the Company^(a)

21,372

23,549

27,455

10,287

5,195

Total combined loan and finance receivable principal balance^(b)

$
676,403

$
744,270

$
819,852

$
758,709

$
575,685

Installment and RPA combined loan and finance receivable fair value balance:

Company owned

$
—

$
—

$
—

$
772,469

$
587,540

Guaranteed by the Company^(a)

—

—

—

12,445

6,614

Ending combined loan and finance receivable fair value balance^(b)

$
—

$
—

$
—

$
784,914

$
594,154

Fair value as a % of principal^(b)(c)

—
%

—
%

—
%

103.5
%

103.2
%
Installment and RPA combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:

Company owned

$
681,860

$
749,324

$
820,430

$
776,692

$
590,576

Guaranteed by the Company^(a)

21,463

23,648

27,560

11,798

6,054

Ending combined loan and finance receivable balance^(b)

$
703,323

$
772,972

$
847,990

$
788,490

$
596,630

Ending allowance and liability for losses (prior to FVO adoption)

$
87,572

$
86,027

$
87,448

$
—

$
—

Allowance for losses as a % of combined loan and finance receivable balance^(b)(c)

12.5
%

11.1
%

10.3
%

—
%

—
%
Average installment and RPA combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:

Company owned^(d)

$
655,360

$
718,307

$
783,362

$
803,018

$
680,674

Guaranteed by the Company^(a)(d)

21,486

23,031

24,723

17,846

7,553

Average combined loan and finance receivable balance^(b)(d)

$
676,846

$
741,338

$
808,085

$
820,864

$
688,227

Revenue

$
148,531

$
159,025

$
168,917

$
174,034

$
126,224

Cost of revenue/change in fair value

(74,884
)

(78,264
)

(90,477
)

(131,517
)

(70,170
)
Gross profit/net revenue

73,647

80,761

78,440

42,517

56,054

Gross profit margin/net revenue margin

49.6
%

50.8
%

46.4
%

24.4
%

44.4
%
Cost of revenue/change in fair value as a % of average combined loan and finance receivable balance^(b)(d)

11.1
%

10.6
%

11.2
%

16.0
%

10.2
%

Delinquencies:

> 30 days delinquent

$
32,889

$
44,904

$
46,783

$
47,502

$
22,256

> 30 days delinquent as a % of combined loan and finance receivable balance^(b)(c)

4.7
%

5.8
%

5.5
%

6.0
%

3.7
%

Charge-offs:

Charge-offs (net of recoveries)

$
69,761

$
79,577

$
89,114

$
96,272

$
71,362

Charge-offs (net of recoveries) as a % of average combined loan and finance receivable balance^(b)(d)

10.3
%

10.7
%

11.0
%

11.7
%

10.4
%

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):

	2020												2021
	First			Second			Third			Fourth			First
	Quarter			Quarter			Quarter			Quarter			Quarter
Consumer loans and finance receivables:
Consumer combined loan and finance receivable principal balance:
Company owned	$	877,503		$	646,534		$	569,556		$	576,404		$	523,170
Guaranteed by the Company^(a)		10,287			5,195			6,905			8,845			5,691
Total combined loan and finance receivable principal balance^(b)	$	887,790		$	651,729		$	576,461		$	585,249		$	528,861
Consumer combined loan and finance receivable fair value balance:
Company owned	$	917,222		$	690,957		$	617,921		$	625,219		$	581,398
Guaranteed by the Company^(a)		12,445			6,614			7,411			10,289			7,246
Ending combined loan and finance receivable fair value balance^(b)	$	929,667		$	697,571		$	625,332		$	635,508		$	588,644
Fair value as a % of principal^(b)(c)		104.7	%		107.0	%		108.5	%		108.6	%		111.3	%
Consumer combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:
Company owned	$	959,286		$	693,991		$	614,676		$	619,088		$	564,934
Guaranteed by the Company^(a)		11,798			6,054			8,100			10,163			6,792
Ending combined loan and finance receivable balance^(b)	$	971,084		$	700,045		$	622,776		$	629,251		$	571,726
Average consumer combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:
Company owned^(d)	$	1,007,336		$	813,497		$	646,137		$	613,683		$	598,900
Guaranteed by the Company^(a)(d)		17,846			7,553			6,855			8,861			8,670
Average combined loan and finance receivable balance^(b)(d)	$	1,025,182		$	821,050		$	652,992		$	622,544		$	607,570

Revenue	$	335,900		$	236,772		$	192,567		$	196,880		$	181,737
Change in fair value		(210,725	)		(102,159	)		(24,378	)		(31,167	)		(26,073	)
Net revenue		125,175			134,613			168,189			165,713			155,664
Net revenue margin		37.3	%		56.9	%		87.3	%		84.2	%		85.7	%
Change in fair value as a % of average combined loan and finance receivable balance^(b)(d)		20.6	%		12.4	%		3.7	%		5.0	%		4.3	%

Delinquencies:
> 30 days delinquent	$	81,654		$	31,149		$	21,559		$	24,793		$	24,589
> 30 days delinquent as a % of combined loan and finance receivable balance^(b)(c)		8.4	%		4.4	%		3.5	%		3.9	%		4.3	%

Charge-offs:
Charge-offs (net of recoveries)	$	191,306		$	141,193		$	30,670		$	34,035		$	36,408
Charge-offs (net of recoveries) as a % of average combined loan and finance receivable balance^(b)(d)		18.7	%		17.2	%		4.7	%		5.5	%		6.0	%

The ~~combined~~ ending ~~loan~~ balance, including principal and accrued fees/interest outstanding, of ~~installment~~combined consumer loans and ~~RPAs~~finance receivables at ~~June 30, 2020~~March 31, 2021 decreased ~~15.2%~~41.1% to ~~$596.6~~$571.7 million compared to ~~$703.3~~$971.1 million at ~~June 30, 2019,~~March 31, 2020, due primarily to lower originations ~~in the current quarter~~ driven by our strategic efforts to mitigate risks associated with the COVID-19 ~~pandemic.~~pandemic since March 2020.

The percentage of loans greater than 30 days delinquent decreased to ~~3.7%~~4.3% at ~~June 30, 2020,~~March 31, 2021, compared to ~~4.7%~~8.4% at ~~June 30, 2019.~~March 31, 2020. The decrease was driven primarily by having a more seasoned and lower risk portfolio remaining as originations ~~were low during~~have remained lower since the ~~current~~onset of the COVID-19 pandemic in the first quarter of 2020 and the majority of higher risk loans to new customers originated in prior quarters have been charged off.

Charge-offs (net of recoveries) as a percentage of average combined loan balance ~~was flat~~decreased to 6.0% for the current quarter, compared to 18.7% for the prior year quarter, driven primarily by having a more seasoned and lower risk portfolio remaining as ~~reduced opportunities for spend, governmental stimulus,~~originations have remained lower since the onset of the COVID-19 pandemic in the first quarter of 2020 and ~~hardships brought on by COVID-19 largely offset each other.~~the majority of higher risk loans to new customers originated in prior quarters have been charged off.

The ratio of fair value as a percentage of principal on ~~installment~~consumer loans and ~~RPAs~~finance receivables was ~~103.2%~~111.3% at ~~June 30, 2020,~~March 31, 2021, compared to ~~103.5%~~104.7% at March 31, 2020. The slight decrease during the quarter was primarily driven by higher expected future charge-offs at June 30, 2020, as discussed in “Results of Operations | COVID-19” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” partially offset by the seasoning of the portfolio with the reduced level of originations, particularly to new customers.

~~The following table includes financial information for our line of credit accounts. Delinquency metrics include principal, interest, and fees, and only amounts that are past due (in thousands):~~

2019

2020

Second

Third

Fourth

First

Second

Quarter

Quarter

Quarter

Quarter

Quarter

Line of credit accounts:

Total loan principal balance

$
223,545

$
282,556

$
329,011

$
312,986

$
197,114

Ending loan fair value balance

—

—

—

320,738

212,122

Fair value as a % of principal^(a)

—
%

—
%

—
%

102.5
%

107.6
%

Ending loan balance, including principal and accrued fees/interest outstanding

$
264,021

$
336,839

$
389,832

$
369,056

$
226,329

Ending allowance for losses (prior to FVO adoption)

51,419

75,413

91,002

—

—

Allowance for losses as a % of loan balance^(a)

19.5
%

22.4
%

23.3
%

—
%

—
%

Average loan balance^(b)

$
237,821

$
301,213

$
358,440

$
387,180

$
291,507

Revenue

$
110,670

$
146,362

$
174,227

$
185,772

$
125,478

Cost of revenue/change in fair value

(48,549
)

(83,922
)

(107,940
)

(104,202
)

(50,502
)
Gross profit/net revenue

62,121

62,440

66,287

81,570

74,976

Gross profit margin/net revenue margin

56.1
%

42.7
%

38.0
%

43.9
%

59.8
%
Cost of revenue/change in fair value as a % of average loan balance^(b)

20.4
%

27.9
%

30.1
%

26.9
%

17.3
%

Delinquencies:

> 30 days delinquent

$
17,085

$
32,868

$
36,532

$
38,792

$
14,541

> 30 days delinquent as a % of loan balance^(a)

6.5
%

9.8
%

9.4
%

10.5
%

6.4
%

Charge-offs:

Charge-offs (net of recoveries)

$
38,493

$
59,928

$
92,351

$
106,952

$
84,613

Charge-offs (net of recoveries) as a % of average loan balance^(b)

16.2
%

19.9
%

25.8
%

27.6
%

29.0
%

The combined ending loan balance, including principal and accrued fees/interest outstanding, of line of credit accounts at June 30, 2020 decreased 14.3% to $226.3 million compared to $264.0 million at June 30, 2019, due primarily to lower consumer line of credit account balances driven primarily by our strategic efforts to mitigate the risks associated with the COVID-19 pandemic.

~~The percentage of loans greater than 30 days delinquent was flat at 6.4% at June 30, 2020, compared to 6.5% at June 30, 2019.~~

Charge-offs (net of recoveries) as a percentage of average loan balance increased to 29.0% for the current quarter, compared to 16.2% in the prior year quarter, due primarily to higher new customer originations in the first quarter of 2020, which generally have a higher risk of charge-off compared to draws from existing customers.

~~The ratio of fair value as a percentage of principal on line of credit accounts was 107.6% at June 30, 2020, compared to 102.5% at March 31, 2020. The~~ increase ~~during the quarter~~ was primarily driven by the seasoning of the portfolio with reduced level of originations, particularly to new customers, partially offset by higher expected future charge-offs at ~~June 30, 2020,~~March 31, 2021, as discussed in “Results of ~~Operations |~~ Operations—COVID-19” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

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):

	2020												2021
	First			Second			Third			Fourth			First
	Quarter			Quarter			Quarter			Quarter			Quarter
Small business loans and finance receivables:
Total loan and finance receivable principal balance	$	183,905		$	121,070		$	81,733		$	686,730		$	696,678
Ending loan and finance receivable fair value balance		175,985			108,705			75,449			616,287			649,313
Fair value as a % of principal^(a)		95.7	%		89.8	%		92.3	%		89.7	%		93.2	%

Ending loan and finance receivable balance, including principal and accrued fees/interest outstanding	$	186,462		$	122,914		$	84,288		$	691,083		$	701,053

Average loan and finance receivable balance^(b)	$	182,862		$	158,684		$	101,819		$	539,675		$	700,348

Revenue	$	23,906		$	14,930		$	10,830		$	64,419		$	75,560
Change in fair value		(24,994	)		(18,513	)		1,601			10,818			4,995
Net revenue		(1,088	)		(3,583	)		12,431			75,237			80,555
Net revenue margin		(4.6	)%		(24.0	)%		114.8	%		116.8	%		106.6	%
Change in fair value as a % of average loan balance^(b)		13.7	%		11.7	%		(1.6	)%		(2.0	)%		(0.7	)%

Delinquencies:
> 30 days delinquent	$	4,640		$	5,648		$	4,282		$	97,873		$	71,639
> 30 days delinquent as a % of loan balance^(a)		2.5	%		4.6	%		5.1	%		14.2	%		10.2	%

Charge-offs:
Charge-offs (net of recoveries)	$	11,918		$	14,782		$	4,496		$	21,052		$	18,042
Charge-offs (net of recoveries) as a % of average loan and finance receivable balance^(b)		6.5	%		9.3	%		4.4	%		3.9	%		2.6	%

The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at March 31, 2021 increased 276.0% to $701.1 million compared to $186.5 million at March 31, 2020, due primarily to the acquisition of OnDeck in the fourth quarter of 2020. Excluding OnDeck, the ending balance, including principal and accrued fees/interest

outstanding, of small business loans and finance receivables at March 31, 2021 decreased due primarily to lower originations driven by our strategic efforts to mitigate risks associated with the COVID-19 pandemic since March 2020.

The percentage of loans greater than 30 days delinquent increased to 10.2% at March 31, 2021, compared to 2.5% at March 31, 2020. The increase was driven primarily by the impact of the COVID-19 pandemic on our small business customers, as we have actively worked with them to understand their financial situations, offering a variety of repayment options to increase flexibility and reducing or deferring payments for impacted customers. The increase was partially offset by having a more seasoned portfolio remaining as originations were lower since the COVID-19 pandemic and a significant number of higher risk customers in more heavily impacted industries have already been charged off.

Charge-offs (net of recoveries) as a percentage of average loan balance decreased to 2.6% for the current quarter, compared to 6.5% in the prior year quarter, due primarily having a more seasoned and lower risk portfolio remaining as originations have remained low since the onset of the COVID-19 pandemic in the first quarter of 2020 and the majority of higher risk loans to new customers originated in prior quarters have been charged off.

The ratio of fair value as a percentage of principal on small business loans and finance receivables was 93.2% at March 31, 2021, compared to 95.7% at March 31, 2020. The decrease was due primarily to the loans acquired in the OnDeck acquisition in October 2020, as these loans have a lower ratio of fair value as a percentage of principal compared to the legacy Enova portfolio. The decrease was partially offset by the seasoning of the portfolio with reduced level of originations, particularly to new customers. 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.

Total expenses ~~decreased $32.1~~increased $17.5 million, or ~~41.1%~~17.9%, to ~~$45.8~~$114.9 million in the current quarter, compared to ~~$77.9~~$97.4 million in the prior year quarter. On a constant currency basis, total expenses ~~decreased $31.5~~increased $17.4 million, or ~~40.4%~~17.9%, in the current quarter as compared to the prior year quarter.

Marketing expense decreased to ~~$3.0~~$28.6 million in the current quarter compared to ~~$25.9~~$34.5 million in the prior year quarter due primarily to our strategic actions to mitigate risks associated with the COVID-19 pandemic.

Operations and technology expense ~~decreased~~increased to ~~$16.5~~$35.6 million in the current quarter compared to ~~$20.1~~$31.3 million in the prior year quarter, due primarily to the acquisition of OnDeck in October 2020, partially offset by lower variable underwriting costs and various cost containment initiatives implemented to mitigate the impact of COVID-19.

General and administrative expense ~~decreased $5.9~~increased $16.2 million, or ~~20.9%~~57.7%, to ~~$22.3~~$44.1 million in the current quarter compared to ~~$28.2~~$27.9 million in the prior year quarter, due primarily to the acquisition of OnDeck in October 2020, partially offset by various cost containment initiatives implemented to mitigate the impact of ~~COVID-19. Corporate services personnel costs were lower, driven primarily by lower incentive accruals~~COVID-19 and ~~lower legal and compliance expenses.~~synergies achieved on the OnDeck acquisition.

Depreciation and amortization expense ~~was flat~~increased $2.9 million or 80.6% compared to the prior year ~~quarter.~~quarter driven primarily by fixed assets and intangible assets acquired with OnDeck and, to a lesser extent, additional internally-developed software placed into service.

Interest expense, net ~~increased $2.3~~decreased $0.5 million, or ~~12.5%~~2.3%, to ~~$20.4~~$19.9 million in the current quarter compared to ~~$18.1~~$20.4 million in the prior year quarter. The ~~increase~~decrease was due primarily to ~~an increase~~a decrease in the average amount of debt outstanding, which ~~increased $165.3~~decreased $61.9 million to ~~$1,037.4~~$946.4 million during the current quarter from ~~$872.1~~$1,008.3 million during the prior year quarter, partially offset by ~~a decrease~~an increase in the weighted average interest rate on our outstanding debt to ~~7.97%~~8.61% during the current quarter from ~~8.67%~~8.15% during the prior year quarter.

The effective tax rate from continuing operations of ~~27.4%~~26.7% in the current quarter was ~~higher~~lower than the ~~23.5%~~34.3% rate recorded in the prior year quarter due primarily to the significant increase in book operating income as compared to the prior year quarter and a lesser rate impact attributable to nondeductible executive and stock compensation and ~~the loss of excess tax benefits related to stock based compensation.~~other nondeductible expenses.

As of ~~June 30, 2020,~~March 31, 2021, the balance of unrecognized tax benefits was ~~$45.3~~$38.6 million which is included in “Accounts payable and accrued expenses” on the consolidated balance sheet, ~~$16.7~~$10.9 million of which, if recognized, would favorably affect the effective tax rate in the period of recognition. We had ~~$45.2~~$53.5 million and ~~$53.6~~$39.0 million of unrecognized tax benefits as of ~~June 30, 2019~~March 31, 2020 and December 31, ~~2019,~~2020, respectively. We believe ~~it is reasonably possible~~ that within the next twelve months, unrecognized domestic tax benefits could change by a significant amount. The principal uncertainties are related to the timing of recognition of income and losses related to our loan portfolio. We are currently under a Joint Committee on Taxation review of certain tax returns that were filed during 2018 in conjunction with the refunds claimed on those returns. Depending upon the outcome of the review and any related agreements or settlements with the relevant taxing authorities, the amount of the uncertainty, including amounts that would be recognized as a component of the effective tax rate, could change significantly. While the total amount of uncertainty to be resolved is not clear, it is reasonably possible that the uncertainties pertaining to this matter will be resolved in the next twelve months. The Company believes that it haswe have adequately accounted for any material tax uncertainties in ~~its~~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 ~~2015.~~2016. However, the ~~2015~~2014 tax year is still open to the extent of the net operating loss that was carried back from the ~~2017~~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.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security ~~(CARES)~~(“CARES”) Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. ~~The CARES Act did not have a material tax impact on our consolidated financial condition as of and for the three months ended June 30, 2020.~~ We ~~plan to defer~~deferred the timing of federal tax estimates and payroll taxes as permitted by the CARES Act and ~~will avail~~have availed ourselves of net operating loss carryback provisions ~~to the extent possible, which may include changes to the uncertain tax position reserves.~~.

~~Net income increased $22.9 million, or 91.6%, to $48.0 million during the current quarter compared to $25.1 million during the prior year quarter. The increase was due primarily to~~ ~~increased operating leverage driven primarily by lower marketing spend and, to a lesser extent, lower general and administrative and operating and technology expenses~~.

Revenue increased $91.4 million, or 17.5%, to $615.3 million for the six-month period ended June 30, 2020, or current six-month period, as compared to $523.9 million for the six-month period ended June 30, 2019, or prior year six-month period. On a constant currency basis, revenue increased by $93.3 million, or 17.8%, for the current six-month period compared to the prior year six-month period. The vast majority of this increase is due to organic growth, with a small portion due to the adoption of fair value accounting on our loan portfolio and the differing treatment of the origination fees and the costs previously described in the “Election of Fair Value Option” section. On the organic growth side, the increase was due to a 44.7% increase in line of credit account revenue in the current six-month period compared to the prior year six-month period driven by strong customer demand for these products through mid-March 2020. The growth in line of credit account revenue was partially offset by a 2.6% decrease in installment loan and RPA revenue in the current six-month period compared to the prior year six-month period.

Net revenue for the current six-month period was $258.9 million compared to gross profit of $281.6 million for the prior year six-month period. Our consolidated net revenue margin was 42.1% for the current six-month period compared to gross profit margin of 53.8% for the prior year six-month period.

~~The following table sets forth the components of revenue and gross profit, separated by product for the current six-month period and the prior year six-month period (in thousands):~~

Six Months Ended June 30,

2020

2019

$ Change

% Change

Revenue by product:

Installment loans and RPAs

$
300,258

$
308,173

$
(7,915
)

(2.6
)%
Line of credit accounts

311,250

215,153

96,097

44.7

Total loans and finance receivables revenue

611,508

523,326

88,182

16.9

Other

3,805

557

3,248

583.1

Total revenue

615,313

523,883

91,430

17.5

Change in fair value

(356,391
)

—

(356,391
)

100.0

Cost of revenue

—

(242,291
)

242,291

(100.0
)
Net revenue/gross profit

$
258,922

$
281,592

$
(22,670
)

(8.1
)%

Revenue by product (% to total):

Installment loans and RPAs

48.8
%

58.8
%

Line of credit accounts

50.6

41.1

Total loans and finance receivables revenue

99.4

99.9

Other

0.6

0.1

Total revenue

100.0

100.0

Change in fair value

(57.9
)

—

Cost of revenue

—

(46.2
)

Net revenue/gross profit

42.1
%

53.8
%

The average loan origination amount is calculated as the total principal amount of combined loans originated and renewed for the period divided by the total number of combined loans originated and renewed for the period. The following table shows the average loan origination amount by product for the current six-month period compared to the prior year six-month period:

The average loan origination amount decreased to $489 from $607 during the current six-month period compared to the prior year six-month period, due primarily to our deliberate reduction in origination amounts to mitigate risks associated with the COVID-19 pandemic, and a greater mix of line of credit draws from existing customer accounts which are generally smaller than initial new customer draws.

Total expenses decreased $7.2 million, or 4.8%, to $143.3 million in the current six-month period, compared to $150.5 million in the prior year six-month period. On a constant currency basis, total expenses decreased $6.2 million, or 4.1%, for the current six-month period compared to the prior year six-month period.

Marketing expense decreased to $37.5 million in the current six-month period compared to $44.9 million in the prior year six-month period. The decrease was due primarily to the strategic reduction of marketing spend beginning late first quarter and continuing throughout the current quarter to mitigate risks associated with the COVID-19 pandemic.

Operations and technology expense increased to $47.8 million in the current six-month period compared to $40.7 million in the prior year six-month period, due primarily to higher selling expenses related to direct ~~costs associated with originating loans that, prior to utilization of the fair value option on our loan portfolio, were deferred and amortized against revenue over the life of the underlying loans~~. ~~Subsequent to the election of the fair value option, these costs are no longer eligible for deferral.~~

~~General and administrative expense decreased $7.0 million, or 12.2%, to $50.3 million in the current six-month period compared to $57.3 million in the prior year six-month period, due primarily to various cost containment~~ ~~initiatives implemented to mitigate the impact of COVID-19. Corporate services personnel costs were lower, driven primarily by lower incentive accruals and lower legal and compliance expenses.~~

~~Depreciation and amortization expense was flat compared to compared to the prior year six-month period.~~

Interest expense, net increased $3.1 million, or 8.3%, to $40.7 million in the current six-month period compared to $37.6 million in the prior year six-month period. The increase was due primarily to an increase in the average amount of debt outstanding, which increased $148.3 million to $1,022.8 million during the current six-month period from $874.5 million during the prior year six-month period, partially offset by an decrease in the weighted average interest rate on our outstanding debt to 8.06% during the current six-month period from 8.85% during the prior year six-month period.

~~The effective tax rate of 28.2% in the current six-month period was higher than the effective tax rate of 23.5% in the prior year six-month period due primarily~~ ~~to the loss of excess tax benefits on stock compensation~~.

Net income ~~decreased $6.6~~increased $70.4 million, or ~~11.0%~~1,290.5%, to ~~$53.5~~$75.9 million during the current ~~six-month period~~quarter compared to ~~$60.1~~$5.5 million during the prior year ~~six-month period.~~quarter. The ~~decrease~~increase was due primarily to ~~a reduction~~favorable credit performance in ~~fair value on our~~the loan portfolio ~~due to~~in the current quarter and the negative impact of the COVID-19 ~~partially offset by increased operating leverage through expense management~~.pandemic on loan values in the prior year quarter.

Given the unprecedented economic circumstances resulting from the COVID-19 pandemic and high degree of uncertainty, we have taken several actions to create a stable and flexible balance sheet that ensures liquidity and funding available to meet our business obligations. We elected to access our committed funding lines inprior to March 31, 2020 to preserve optionality in the face of ~~uncertainty.~~uncertainty, and prior to June 30, 2020 we repaid the outstanding balance of our revolving credit agreement. Despite our higher than normal cash balances, we drew funds in January 2021 to meet the minimum utilization requirements of the revolving credit agreement. As of ~~June 30, 2020,~~March 31, 2021, we had cash, cash equivalents, and restricted cash of ~~$365.0~~$374.2 million, of which ~~$43.5~~$49.9 million was restricted, compared to ~~$81.0~~$369.2 million, of which ~~$45.1~~$71.9 million was restricted, as of December 31, ~~2019.~~2020. As of ~~June 30, 2020,~~March 31, 2021, we had committed and

undrawn funding capacity of ~~$310.7 million.~~$412 million for our domestic operations and an additional $36.5 million (AU$48.1 million) available to support our operations in Australia. Based on numerous stressed-case modeling scenarios, we believe we have sufficient liquidity to run our operations for the foreseeable future. Further, we have no recourse debt obligations due until June ~~2022 and no non-recourse secured lending facilities with maturities before February~~ 2022.

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, and to meet the continued growth in the demand for our ~~near-prime installment~~loan 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 and July 1, 2019, we and certain of our operating subsidiaries entered into amendments to our Credit ~~Agreement, as further described below.~~Agreement. As of ~~July 27, 2020,~~April 29, 2021, our available borrowings under the Credit Agreement were ~~$124.0~~$22.5 million. Since 2016, we have entered into several ~~consumer~~ loan securitization facilities and offered asset-backed notes to fund our growth, primarily in our near-prime consumer installment loan business.As a result of our acquisition of OnDeck in 2020, we added several additional securitization facilities and asset-backed notes supported by OnDeck’s small business loans, as ~~further described~~summarized below under ~~“Consumer Loan Securitization.~~“Current Debt Facilities.” As of ~~July 27, 2020, the outstanding balance under~~April 29, 2021, we had committed and undrawn funding capacity of $417 million for our ~~securitization facilities was $275.9 million.~~domestic operations and an additional $35.3 million (AU$45.5 million) available to support our operations in Australia. 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, 2020,~~March 31, 2021, 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.

Our Total stockholders’ equity increased by $86.8 million to $1,005.6 million at March 31, 2021 from $918.8 million at December 31, 2020. The increase of stockholders’ equity was driven primarily by net income for the three months ended March 31, 2021. Our book value per share outstanding increased to $27.48 at March 31, 2021 from $25.69 at December 31, 2020, which was primarily driven by our net income in the period.

On ~~September 19, 2018,~~November 5, 2020, we ~~issued and sold~~announced the ~~2025 Senior Notes.~~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”). The ~~2025 Senior Notes were sold to qualified institutional buyers~~2020 Authorization was an expansion of the 2019 Authorization. Repurchases under our repurchase programs will be made in accordance with ~~Rule 144A~~applicable securities laws from time to time in the open market, through privately negotiated transactions or otherwise. The share repurchase program does not obligate us to purchase any shares of our common stock. The authorization for the share repurchase programs may be terminated, increased or decreased by the Board of Directors in its discretion at any time. During the three months ended March 31, 2021, we had no repurchases of common stock under the ~~Securities Act~~share repurchase programs.

At March 31, 2021, we had $324.3 million of ~~1933, as amended (the “Securities Act”)~~available unrestricted cash to fund our future operations compared to approximately $297.3 million at December 31, 2020.

Our cash and ~~outside the United States pursuant~~cash equivalents at March 31, 2021 were held primarily for working capital purposes and were used to Regulation S under the Securities Act. The 2025 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2019. The 2025 Senior Notes were sold at a price of 100%. The 2025 Senior Notes will mature on September 15, 2025. The 2025 Senior Notes are unsecured ~~debt obligations of ours, and are unconditionally guaranteed by certain of our domestic subsidiaries.~~

The 2025 Senior Notes are redeemable at our option, in whole or in part, (i) at any time prior to September 15, 2021 at 100% of the aggregate principal amount of 2025 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs our 2025 Senior Notes (the “2025 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 15, 2021 at the premium, if any, specified in the 2025 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 15, 2021, at our option, we may redeem up to 40% of the aggregate principal amount of the 2025 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2025 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2025 Senior Notes Indenture.

~~We used a portion of the net proceeds of the 2025 Senior Notes offering to~~ retire the remaining outstanding 2021 Senior Notes balance of $295.0 million, to pay the related accrued interest, premiums, fees and expenses associated therewith. The remaining amount was used for general corporate purposes.

On September 1, 2017, we issued and sold the 2024 Senior Notes. The 2024 Senior Notes were sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act. The 2024 Senior Notes bear interest at a rate of 8.50% annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The 2024 Senior Notes were sold at a price of 100%. The 2024 Senior Notes will mature on September 1, 2024. The 2024 Senior Notes are unsecured debt obligations of ours, and are unconditionally guaranteed by certain of our domestic subsidiaries.

The 2024 Senior Notes are redeemable at our option, in whole or in part, (i) at any time prior to September 1, 2020 at 100% of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs our 2024 Senior Notes (the “2024 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date. In addition, prior to September 1, 2020, at our option, we may redeem up to 40% of the aggregate principal amount of the 2024 Senior Notes at a redemption price of 108.5% of the aggregate principal amount of 2024 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2024 Senior Notes Indenture.

~~We used the net proceeds of the 2024 Senior Notes offering to retire~~fund a portion of our ~~outstanding 2021 Senior Notes,~~lending activities. We may, from time to ~~pay the related accrued interest, premiums, fees~~time, use excess cash and ~~expenses associated therewith and~~cash equivalents to fund our lending activities. We do not enter into investments for ~~general corporate purposes~~.

~~We securitize consumer loan receivables originated by certain~~trading or speculative purposes. Our policy is to invest cash in excess of our ~~subsidiaries, which are sold~~immediate working capital requirements in short-term investments, deposit accounts or other arrangements designed to ~~bankruptcy remote special purpose subsidiaries. Each of these securitizations provides~~preserve the principal balance and maintain adequate liquidity. Our excess cash may be invested primarily in overnight sweep accounts, money market instruments or similar arrangements that ~~(i) the lenders to a securitization subsidiaries~~provide competitive returns consistent with our polices 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 ~~recourse~~ability to ~~seek repayment or recovery from our operating entities for credit losses~~draw on ~~the receivables; (ii) except for certain limited indemnities,~~ such ~~lenders have recourse only to assets of~~funds as long as they remain restricted under the applicable ~~securitization subsidiary to which they~~arrangements but have lent; (iii) such lenders maintain a security interest in all assets of the applicable securitization subsidiary; (iv) cash flows from the assets transferred to such securitization subsidiaries represent the sole source of payment to such securitization subsidiaries. The collections on assets sold to securitization subsidiaries are not available to satisfy the debts or other obligations of the Company unless such amounts have been released from the lien of the lenders.

On October 17, 2019 (the “2019-A Closing Date”), we issued $138,888,000 Class A Asset Backed Notes (the “2019-A Class A Notes”), $44,445,000 Class B Asset Backed Notes (the “2019-A Class B Notes”), and $16,667,000 Class C Asset Backed Notes (the “2019-A Class C Notes” and, collectively with the 2019-A Class A Notes and the 2019-A Class B Notes, the “2019-A Notes”) through an indirect subsidiary. The 2019-A Class A Notes bear interest at 3.96%, the 2019-A Class B Notes bear interest at 6.17%, and the 2019-A Class C Notes bear interest at 7.62%. The 2019-A Notes ~~are backed by a pool of~~ ~~unsecured consumer installment loans~~ ~~(“Securitization Receivables”) and represent obligations of the issuer only. The 2019-A Notes are not be guaranteed by us.~~

The net proceeds of the offering of the 2019-A Notes on the 2019-A Closing Date were used to acquire the Securitization Receivables from us, fund a reserve account and pay fees and expenses incurred in connection with the transaction. The amount of Securitization Receivables sold to the issuer on the 2019-A Closing Date was approximately $200.0 million. Additional Securitization Receivables totaling approximately $22.2 million were sold to the issuer prior to December 31, 2019.

On February 25, 2019 (the “2019-1 Closing Date”), we and several of our subsidiaries entered into a receivables securitization (the “2019-1 Facility”) with PCAM Credit II, LLC, as lender (the “2019-1 Lender”). The 2019-1 Lender is an affiliate of Park Cities Asset Management, LLC. The 2019-1 Facility finances Securitization Receivables that have been and will be originated or acquired under

our NetCredit and CashNetUSA brands by several of our subsidiaries and that meet specified eligibility criteria. Under the 2019-1 Facility, eligible Securitization Receivables are sold to a wholly-owned subsidiary of our (the “2019-1 Debtor”) and serviced by another subsidiary of us.

The 2019-1 Debtor has issued a delayed draw term note with an initial maximum principal balance of $30.0 million and a revolving note with an initial maximum principal balance of $20.0 million for an aggregate initial maximum principal balance of $50.0 million, which is required to be secured by eligible Securitization Receivables. The 2019-1 Facility has an accordion feature that, with the consent of the 2019-1 Lender, allows for the maximum principal balance of the delayed draw term note to increase to $50.0 million and the maximum principal balance of the revolving note to increase to $25.0 million, for an aggregate maximum principal balance of $75.0 million. The 2019-1 Facility is non-recourse to us and matures three years after the 2019-1 Closing Date.

The 2019-1 Facility is governed by a loan and security agreement, dated as of the 2019-1 Closing Date, between the 2019-1 Lender and the 2019-1 Debtor. The 2019-1 Facility bears interest at a rate per annum equal to LIBOR (subject to a floor) plus an applicable margin, which applicable margin is initially 9.75%. In addition, the 2019-1 Debtor is required to pay certain customary upfront closing fees to the 2019-1 Lender. Interest payments on the 2019-1 Facility will be made monthly. Subject to certain exceptions, the 2019-1 Debtor is not permitted to prepay the delayed draw term note prior to two years after the 2019-1 Closing Date. Following such date, the 2019-1 Debtor is permitted to voluntarily prepay the 2019-1 Facility without penalty. The revolving note may be paid in whole or in part at any time after the delayed draw term note has been fully drawn.

All amounts due under the 2019-1 Facility are secured by all of the 2019-1 Debtor’s assets, which include the eligible Securitization Receivables transferred to the 2019-1 Debtor, related rights under the eligible Securitization Receivables, a bank account and certain other related collateral. We have issued a limited indemnity to the 2019-1 Lender for certain “bad acts,” and we have agreed for the benefit of the 2019-1 Lender to meet certain ongoing financial performance covenants.

The 2019-1 Facility documents contain customary provisions for securitizations, including representations and warranties as to the eligibility of the eligible Securitization Receivables and other matters; indemnification for specified losses not including losses due to the inability of consumers to repay their loans; covenants regarding special purpose entity matters; and default and termination provisions which provide for the acceleration of the 2019-1 Facility in circumstances including, but not limited to, failure to make payments when due, certain insolvency events, breaches of representations, warranties or covenants, failure to maintain the security interest in the eligible Securitization Receivables, defaults under other material indebtedness of the 2019-1 Debtor and a default by us under our financial performance covenants.

On October 31, 2018 (the “2018-A Closing Date”), we issued $95,000,000 Class A Asset Backed Notes (the “2018-A Class A Notes”) and $30,400,000 Class B Asset Backed Notes (the “2018-A Class B Notes” and, collectively with the 2018-A Class A Notes, the “2018-A Notes”), through an indirect subsidiary. The 2018-A Class A Notes bear interest at 4.20%, and the 2018-A Class B Notes bear interest at 7.37%. The 2018-A Notes are backed by a pool of Securitization Receivables and represent obligations of the issuer only. The 2018-A Notes are not guaranteed by us. Under the 2018-A Notes, Securitization Receivables are sold to a wholly-owned subsidiary of ours and serviced by another subsidiary of ours.

The net proceeds of the offering of the 2018-A Notes on the 2018-A Closing Date were used to acquire the Securitization Receivables from us, fund a reserve account and pay fees and expenses incurred in connection with the transaction.

The 2018-A Notes were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act. The 2018-A Notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws.

~~On October 23, 2018, we and several of our subsidiaries entered into a receivables funding agreement (the “2018~~‑~~2 Facility”) with Credit Suisse AG, New York Branch, as agent (the “2018~~‑~~2 Agent”). The 2018~~‑2 Facility collateralizes Securitization Receivables that have been and will be originated or acquired under our NetCredit brand by several of our subsidiaries and that meet specified eligibility criteria in exchange for a revolving note. Under the 2018‑~~2 Facility, Securitization Receivables are sold to a wholly-owned subsidiary of ours (the “2018~~‑~~2 Debtor”) and serviced by another subsidiary of ours.~~

On July 23, 2018, we and several of our subsidiaries entered into a receivables funding agreement (the “2018‑1 Facility”) with Pacific Western Bank, as lender (the “2018‑1 Lender”). The 2018‑1 Facility collateralizes Securitization Receivables that have been and will be originated or acquired under our NetCredit brand by several of our subsidiaries and that meet specified eligibility criteria in exchange for a revolving note. Under the 2018‑1 Facility, Securitization Receivables are sold to a wholly-owned subsidiary of ours (the “2018‑1 Debtor”) and serviced by another subsidiary of ours.

The 2018‑1 Facility is governed by a loan and security agreement, dated as of July 23, 2018, between the 2018‑1 Lender and the 2018‑1 Debtor. The 2018‑1 Facility bears interest at a rate per annum equal to LIBOR (subject to a floor) plus an applicable margin, which rate per annum is initially 4.00%. In addition, the 2018‑1 Debtor paid certain customary upfront closing fees to the 2018‑1 Lender. Interest payments on the 2018‑1 Facility are made monthly. The 2018‑1 Debtor is permitted to prepay the 2018‑1 Facility, subject to certain fees and conditions. In the event of prepayment for the purposes of securitizations, no fees shall apply. Any remaining amounts outstanding will be payable no later than July 22, 2023, the final maturity date.

All amounts due under the 2018‑1 Facility are secured by all of the 2018‑1 Debtor’s assets, which include the Securitization Receivables transferred to the 2018‑1 Debtor, related rights under the Securitization Receivables, a bank account and certain other related collateral.

On January 15, 2016, we and certain of our subsidiaries entered into a receivables securitization (as amended, the “2016‑1 Securitization Facility”) with certain purchasers, Jefferies Funding LLC, as administrative agent (the “2016‑1 Agent”) and Bankers Trust Company, as indenture trustee and securities intermediary (the “Indenture Trustee”). The 2016‑1 Securitization Facility securitized Securitization Receivables that were originated or acquired under our NetCredit brand and that met specified eligibility criteria. Under the 2016‑1 Securitization Facility, Securitization Receivables were sold to a wholly-owned special purpose subsidiary of ours (the “2016‑1 Issuer”) and serviced by another subsidiary of ours. The 2016‑1 Securitization Facility, as amended on October 20, 2017, provided for a maximum principal amount of $275 million, ~~an initial term note with an with an initial principal amount of $181.1 million and~~ the ability to ~~subsequently issue term notes thereafter, variable funding notes~~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 ~~an aggregate committed availability~~our policies and market conditions.

The following table summarizes our debt facilities as of ~~$75 million per quarter with an option to increase the commitment to $90 million and a revolving period of the facility ending in April 2019.~~March 31, 2021.

Our ability to fully utilize the ~~2016~~‑1 Issuer resold a substantial portion of the Securitization Receivables it owned to Enova International, Inc., and used the proceeds to redeem all of the outstanding 2017 Quarterly Term Notes and to repay all amounts owed on the 2017 Variable Funding Notes.

~~Subject to certain exceptions, the 2016‑1 Issuer was not permitted to prepay or redeem any of the 2016-1 Facility prior to April 15, 2019, but the 2016-1 Agent, the Indenture Trustee, and the holders of the notes agreed to permit an early repayment. On March 29, 2019, the 2016-1 Facility was repaid in full~~.

~~On June 30, 2017, we and certain~~available capacity of our ~~operating subsidiaries entered into a secured revolving credit agreement with a syndicate of banks including TBK Bank, SSB (“TBK”), as administrative agent~~debt facilities may also be impacted by provisions that limit concentration risk and collateral agent, Jefferies Finance LLC and TBK as joint lead arrangers and joint lead bookrunners, and Veritex Community Bank (as successor in interest to Green Bank, N.A.), as lender. On April 13, 2018 and October 5, 2018, the Credit Agreement was amended to include Pacific Western Bank and Axos Bank, respectively, as lenders, in the syndicate of lenders. Additionally, on July 1, 2019, the Credit Agreement was amended to, amongst other changes, extend the maturity date to June 30, 2022 from May 1, 2020 and increase the advance rate to 65% from 53%.eligibility.

The Credit Agreement is secured by domestic receivables. The borrowing limit in the Credit Agreement, as amended, is $125 million and its maturity date is June 30, 2022. We had no outstanding amount under the Credit Agreement as of June 30, 2020.

The Credit Agreement contains certain limitations on the incurrence of additional indebtedness, investments, the attachment of liens to our property, the amount of dividends and other distributions, fundamental changes to us or our business and certain other of our activities. The Credit Agreement contains standard financial covenants for a facility of this type based on a leverage ratio and a fixed charge coverage ratio. The Credit Agreement also provides for customary affirmative covenants, including financial reporting requirements, and certain events of default, including payment defaults, covenant defaults and other customary defaults.

Our cash flows and other key indicators of liquidity are summarized as follows (dollars in thousands):

	Six Months Ended June 30,						Three Months Ended March 31,
	2020			2019			2021			2020
Cash flows provided by operating activities
Cash flows from operating activities - continuing operations	$	483,734		$	386,061		$	117,028		$	252,802
Cash flows from operating activities - discontinued operations		(288	)		28,698			—			(288	)
Total cash flows provided by operating activities		483,446			414,759			117,028			252,514
Cash flows used in investing activities
Loans and finance receivables		(41,092	)		(286,915	)		(9,015	)		(178,185	)
Acquisitions, net of cash acquired		(3,597	)		—			(28,358	)		(3,597	)
Purchases of property and equipment		(12,716	)		(9,994	)		(7,106	)		(5,156	)
Other investing activities		57			2			25			57
Cash flows from investing activities - continuing operations		(57,348	)		(296,907	)		(44,454	)		(186,881	)
Cash flows from investing activities - discontinued operations		—			(22,229	)		—			—
Total cash flows used in investing activities		(57,348	)		(319,136	)		(44,454	)		(186,881	)
Cash flows used in financing activities	$	(141,892	)	$	(83,826	)
Cash flows (used in) provided by financing activities							$	(67,656	)	$	57,335

Net cash provided by operating activities from continuing operations ~~increased $97.7~~decreased $135.8 million, or ~~25.3%~~53.7%, to ~~$483.7~~$117.0 million in the current ~~six-month period~~quarter from ~~$386.1~~$252.8 million for the prior year ~~six-month period.~~quarter. The ~~increase~~decrease was driven primarily by ~~overall growth in~~ the mix shift from consumer to small business ~~with interest~~loans and ~~fees paid by customers outpacing operating cash outflows.~~finance receivables, which generally yield less revenue.

We believe cash flows from operations and available cash balances and borrowings under our consumer loan securitization facilities and Credit Agreement, which may include increased borrowings under our Credit Agreement, any refinancing or replacement thereof,

and additional securitization of consumer loans, will be sufficient to fund our future operating liquidity needs, including to fund our working capital growth.

Net cash used in investing activities from continuing operations decreased ~~$239.6~~$142.4 million, or ~~80.7%~~76.2%, for the current ~~six-month period~~quarter compared to the prior year ~~six-month period.~~quarter. This decrease was due primarily to the strategic reduction in originations and acquisitions of loans and finance receivables to mitigate risks associated with the ~~COVID19~~COVID-19 pandemic.

Cash flows used in financing activities for the current ~~six-month period~~quarter were driven primarily by ~~$72.0 million in net payments made under the Credit Agreement, $54.6 million in treasury shares purchased and $15.1~~$176.0 million in net payments made under our securitization ~~facilities.~~facilities and $2.6 million in treasury shares purchased, partially offset by borrowings under our revolving line of credit of $102.0 million and proceeds from the exercise of stock options of $8.9 million. Cash flows ~~used in~~provided by financing activities for the prior year ~~six-month period~~quarter were driven primarily by ~~$53.6~~$66.0 million in net ~~repayments~~borrowings under our securitization facilities ~~$22.0~~and $33.3 million in net ~~repayments~~borrowings under the Credit Agreement, ~~and $8.8~~partially offset by $41.7 million in treasury shares purchased.

On September 15, 2017, we announced the Board of Directors had authorized a share repurchase program for the repurchase of up to $25.0 million of our common stock through December 31, 2019. The $25.0 million limit was reached in January 2019, with all share repurchases having been through open market transactions. On January 31,October 24, 2019, we announced the Board of Directors had authorized a share repurchase program ~~for the repurchase of up to $50.0~~totaling $75.0 million ~~of our common stock through~~that expired December 31, 2020. On ~~October 24, 2019,~~November 5, 2020, we announced the Board of Directors had authorized ~~a new share repurchase program totaling $75.0 million that expires December 31, 2020.~~the 2020 Authorization discussed above. The ~~new program replaced~~2020 Authorization was an expansion of the 2019 Authorization. During the prior ~~authorization of $50.0 million. During the current~~year ~~six-month period~~quarter, we ~~paid $53.5~~repurchased $40.8 million ~~to repurchase~~of common stock under the share repurchase ~~program.~~

~~In certain markets,~~programs; we ~~arrange for consumers to obtain consumer loan products from independent third-party lenders through our CSO programs. For consumer loan products originated by third-party lenders~~had no repurchases of common stock under the ~~CSO~~share repurchase programs ~~each lender is responsible for providing~~during the criteria by which the customer’s application is underwritten and, if approved, determining the amount of the consumer loan. We are responsible for assessing whether or not we will guarantee such loan. When a customer executes an agreement with us under our CSO programs, we agree, for a fee payable to us by the customer, to provide certain services to the customer, one of which is to guarantee the customer’s obligation to repay the loan received by the customer from the third-party lender if the customer fails to do so. The guarantee represents an obligation to purchase specific loans if they go into default, which generally occurs after one payment is missed. As of June 30, 2020 and 2019, the outstanding amount of active consumer loans originated by third-party lenders under the CSO programs was $6.1 million and $21.5 million, respectively, which were guaranteed by us. These loans are not included in our consolidated balance sheets as we do not own the loans prior to default. Our CSO programs are further described under the caption “Products and Services” above.current year quarter.

~~With the exception of the following, t~~There have been no material changes to the information on critical accounting estimates described in our Annual Report on Form 10‑K for the year ended December 31, ~~2019~~2020.

Beginning January 1, 2020, we have elected the fair value option for our loans and finance receivables. We estimate the fair value of our loans and finance receivables primarily using discounted cash flow analyses that utilize machine-learning technology at an individual loan level to more accurately predict future payments. We adjust contractual cash flows for estimated losses, prepayments and servicing costs over the estimated duration of the underlying assets and discount the future cash flows using a rate of return that we believe a market participant would require. Model results may be adjusted by management if we do not believe the output reflects the fair value of the instrument, as defined under U.S. GAAP. The models are re-trained and re-scored at each measurement date to capture any changes in internal factors such as nature, term, volume, payment trends, remaining time to maturity, and portfolio mix, as well as changes in underwriting or observed trends expected to impact future performance. We have validated model performance by comparing past valuations with actual performance noted after each valuation.

~~The following describes the primary inputs to the discounted cash flow analyses that require significant judgment:~~

Management continuously monitors factors that may impact the fair values of its products. Internal factors such as portfolio composition (for example, 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, including product and vintage. The Company also weighs the impact of relevant, internal business decisions on estimated fair value. External factors such as macroeconomic trends, financial market liquidity expectations, competitive landscape and legal or regulatory requirements are also reviewed on a regular basis. Management also reviews the results of its fair value model output compared to prior periods for unusual trends, potential model over- or under-reaction, outlier results and other distorting factors. Based on these analyses, management may deem it appropriate to adjust model output to derive management’s best estimate of fair value.

See Note 1 in the Notes to Consolidated Financial Statements included in this report for a discussion of recent accounting pronouncements.

Market risk is a broad term related to economic losses due to adverse changes in the fair value of a financial instrument. While market risk may embody several elements, including liquidity and basis risk, the SEC’s market risk rules focus on pricing risk, which relates to changes in the level of prices due to changes in interest rates, foreign currency exchange rates, commodity prices, equity prices, and other market changes that affect market risk-sensitive instruments.

~~Prior to January 1, 2020, market risks relating to our operations resulted primarily from changes in foreign currency exchange rates and interest rates related to our long-term debt.As disclosed in Note 1 to the Consolidated Financial Statements, we elected the fair value option as of January 1, 2020 and, as a result going forward,~~We carry our loans and finance receivables at fair value with changes in fair value recognized directly in earnings. As of ~~June 30, 2020,~~March 31, 2021, we were exposed to interest rate risk on our loans and finance receivables, which have fixed interest rates. The fair values of loans are estimated using a discounted cash flow methodology, where the discount rate represents an estimate of the required rate of return by market participants. The pricing on many fixed income securities is highly dependent upon interest rates and credit spreads that change on a daily basis. The discount rates utilized in the valuation of our products are not as reactive to minor shifts in underlying interest rates as i.) the interest component is relatively minor in size compared with the non-interest rate component of the discount rate and ii.) a market participant’s basis for adjusting the required rate of return is less likely to be impacted by minor shifts in the underlying interest rates.

Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and

15d-15(e) under the Securities Exchange Act of 1934, or the “Exchange Act”) as of ~~June 30, 2020~~March 31, 2021 (the “Evaluation Date”). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective and provide reasonable assurance (i) to ensure that information required to be disclosed in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods

specified in the Securities and Exchange Commission rules and forms; and (ii) to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

There was no change in our internal control over financial reporting during the quarter ended ~~June 30, 2020~~March 31, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or internal controls will prevent or detect all possible misstatements due to error or fraud. Our disclosure controls and procedures and internal controls are, however, designed to provide reasonable assurance of achieving their objectives, and our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective at that reasonable assurance level.

See the “Litigation” section of Note 8 of the notes to our consolidated financial statements (unaudited) of Part I, “Item 1 Financial Statements.”

~~The following include~~There have been no material changes tofrom the ~~risk factors associated with the Company’s business previously disclosed~~Risk Factors described in ~~Part I,~~ Item 1A1A. “Risk Factors” of ~~the Annual Report on Form 10 K for the year ended December 31, 2019~~.

Our business and future results may be affected by a number of risks and uncertainties that should be considered carefully in evaluating us. In addition, this report also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including the risks faced by us described below and in our Annual Report on Form ~~10 K~~10-K for the fiscal year ended December 31, 2019. The occurrence of one or more of the events listed below and in our Annual Report on Form 10 K for the year ended December 31, 2019 could also have a material adverse effect on our business, prospects, results of operations, financial condition and cash flows.

The COVID-19 pandemic has begun to negatively impact our operations and financial results. The ultimate extent of the impact on our business, financial position, results of operations, liquidity, and prospects is uncertain.

The COVID-19 pandemic has, and will likely continue to, severely impact global economic conditions, resulting in substantial volatility in the global financial markets, increased unemployment, and operational challenges resulting from measures that governments and other authorities have imposed to control its spread, such as travel bans, business and school limitations and closures, quarantines, and shelter-in-place orders. As our customers are located in the United States and Brazil, we began to see the initial impacts of the pandemic and governmental response on our business toward the end of the first quarter of 2020.

Various governmental bodies have reacted to the economic crisis caused by the pandemic by implementing stimulus and liquidity programs, and the Federal Reserve of the United States has reduced interest rates. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted March 27, 2020 to provide $2.2 trillion of economy-wide financial stimulus in the form of financial aid to individuals, business, nonprofits, states, and municipalities. Through the filing of this report, we believe that governmental stimulus has favorably impacted our customers, helping many to meet their loan obligations. However, it is uncertain whether these actions or future actions will continue to be successful in countering the economic disruptions and these actions could have a further negative impact on the economy in the long term. Many of our customers are experiencing layoffs, furloughs, and other changes in work and financial situations, which may negatively impact their ability to repay us. Higher delinquency or default rates would have an adverse impact on the fair value of our portfolio.

While we have seen the initial impact of the pandemic to our operations, the extent of its impact is highly dependent on variables that are difficult to predict, such as the scope and duration of the pandemic, and the success rate of measures taken by the governments to control its spread and stabilize the economy. If the pandemic is prolonged or the actions of government are unsuccessful, the adverse impact on the global economy will deepen. We could experience further reduced demand and availability of our products, higher credit losses in our portfolio, impairments of other financial assets, and other negative impacts to our financial position. We could have issues meeting our financial performance covenants, which would require waiver/amendment or could result in default on our financing agreements. We are highly reliant on our employees for our continued operations, and to the extent our employee population is impacted by the pandemic, or the actions by governmental bodies taken in reaction to the pandemic, this could adversely affect our ability to service our customers and to offer our products. Our access to capital markets could be hampered and could lead to a higher cost of capital.

The determination of the fair values of the Company’s loan and finance receivables portfolio involves unobservable inputs that can be highly subjective and may prove to be materially different than the actual economic outcome.

As disclosed in Note 1 to the Consolidated Financial Statements, we began utilizing the fair value option for our loan and finance receivables portfolio effective January 1, 2020. The fair values of our loans and finance receivables are determined using Level 3 inputs for which changes could significantly impact our fair value measurements. Valuations are highly dependent upon the reasonableness of our assumptions and the predictability of the relationships that drive the results of our valuation methodologies. A variety of factors including, but not limited to, estimated customer default rates, the timing of expected payments, estimated costs to service the portfolio, discount rates, and valuations of comparable portfolios may ultimately affect the fair values of our loans and finance receivables. Modifications to our assumptions due to the passage of time and more information becoming available could result in material changes to our fair value calculations. These changes to fair value could adversely affect our results of operations.

Additionally, under the fair value option, these changes are generally recorded directly to the income statement, which may make our financial statements less comparable to others in the industry that do not record their loan balances under the fair value option.

~~The CFPB recently finalized a new rule that may affect the consumer lending industry, and this rule could have a material adverse effect on our U.S. consumer lending business.~~

On October 6, 2017, the CFPB issued a rule on payday and certain high-cost installment loans, also known as the “Small Dollar Rule,” which would cover some of the loans we offer. The Small Dollar Rule initially required 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 introduced 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 payment attempts. On July 7, 2020, the CFPB issued the final Small Dollar Rule, rescinding the ability to repay (ATR) and 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 a Texas federal district court. The CFPB stated that it will work with the Texas federal district court and plaintiff in the Texas litigation to coordinate an effective date for the payment provisions of the Small Dollar Rule. We cannot currently assess when the payments provisions of the Small Dollar Rule will become effective. 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. If we are not able to execute these changes effectively because of unexpected complexities, costs or otherwise, we cannot guarantee that the Small Dollar Rule will not have a material adverse impact on our business, prospects, results of operations, financial condition and cash flows..

The following table provides the information with respect to purchases made by us of shares of our common stock.

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 thereunto duly authorized.

Delaware		45-3190813
(State or other jurisdiction of Incorporation or organization)		(I.R.S. Employer Identification No.)

175 West Jackson Blvd. Chicago, Illinois		60604
(Address of principal executive offices)		(Zip Code)

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $.00001 par value per share	ENVA	New York Stock Exchange

Large accelerated filer	☒☐	Accelerated filer	☐☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets – ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ and December 31, ~~201~~20920	1
	Consolidated Statements of Income – Three ~~and Six~~ Months Ended ~~June 30, 2020~~March 31, 2021 and ~~201~~20920	3
	Consolidated Statements of Comprehensive Income – Three ~~and Six~~ Months Ended ~~June 30, 2020~~March 31, 2021 and ~~201~~20920	4
	Consolidated Statements of Stockholders’ Equity – Three ~~and Six~~ Months Ended ~~June 30, 2020~~March 31, 2021 and ~~201~~20920	5
	Consolidated Statements of Cash Flows – ~~Six~~Three Months Ended ~~June 30, 2020~~March 31, 2021 and ~~201~~20920	6
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2720
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5137
Item 4.	Controls and Procedures	5137

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	5339
Item 1A.	Risk Factors	5339
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5439
Item 3.	Defaults upon Senior Securities	5439
Item 4.	Mine Safety Disclosures	5439
Item 5.	Other Information	5539
Item 6.	Exhibits	5540

SIGNATURES		5641

	As of December 31, 2020
			Small
	Consumer		Business			Total
Principal balance - accrual	$	547,015	$	634,476		$	1,181,491
Principal balance - non-accrual		29,389		52,254			81,643
Total principal balance		576,404		686,730			1,263,134

Loans and finance receivables at fair value - accrual		621,257		592,654			1,213,911
Loans and finance receivables at fair value - non-accrual		3,962		23,633			27,595
Loans and finance receivables at fair value	$	625,219	$	616,287		$	1,241,506
Difference between principal balance and fair value	$	48,815	$	(70,443	)	$	(21,628	)

	Increase
	(decrease)
Assets
Loans and finance receivables at fair value	$	124,933
Total assets	$	124,933
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses	$	(4,486	)
Deferred tax liabilities, net		30,478
Total liabilities		25,992
Stockholders' equity:
Retained earnings		98,941
Total stockholders' equity		98,941
Total liabilities and stockholders' equity	$	124,933

	Three Months Ended June 30, 2020
	Installment Loans and			Line of Credit
	RPAs			Accounts			Total
Balance at beginning of period	$	772,469		$	320,738		$	1,093,207
Originations or acquisitions		35,696			40,294			75,990
Interest and fees⁽¹⁾		126,224			125,478			251,702
Repayments		(276,245	)		(223,886	)		(500,131	)
Charge-offs, net⁽²⁾		(71,362	)		(84,613	)		(155,975	)
Net change in fair value⁽²⁾		1,192			34,111			35,303
Effect of foreign currency translation		(434	)		—			(434	)
Balance at end of period	$	587,540		$	212,122		$	799,662

	Three Months Ended March 31, 2020
				Small
	Consumer			Business			Total
Balance at beginning of period	$	1,015,798		$	171,785		$	1,187,583
Originations or acquisitions		343,306			76,435			419,741
Interest and fees⁽¹⁾		335,900			23,906			359,806
Repayments		(563,835	)		(71,147	)		(634,982	)
Charge-offs, net⁽²⁾		(191,306	)		(11,918	)		(203,224	)
Net change in fair value⁽²⁾		(19,419	)		(13,076	)		(32,495	)
Effect of foreign currency translation		(3,222	)		—			(3,222	)
Balance at end of period	$	917,222		$	175,985		$	1,093,207

	As of June 30, 2019
	Installment Loans and			Line of Credit
	RPAs			Accounts			Total
Current receivables	$	641,984		$	250,360		$	892,344
Delinquent receivables:
Delinquent payment amounts⁽¹⁾		2,098			11,160			13,258
Receivables on non-accrual status		58,816			2,305			61,121
Total delinquent receivables		60,914			13,465			74,379
Total loans and finance receivables, gross		702,898			263,825			966,723
Less: Allowance for losses		(85,846	)		(51,419	)		(137,265	)
Loans and finance receivables, net	$	617,052		$	212,406		$	829,458

	As of December 31, 2019
	Installment Loans and			Line of Credit
	RPAs			Accounts			Total
Current receivables	$	775,390		$	365,820		$	1,141,210
Delinquent receivables:
Delinquent payment amounts⁽¹⁾		1,924			22,441			24,365
Receivables on non-accrual status		69,438			4,576			74,014
Total delinquent receivables		71,362			27,017			98,379
Total loans and finance receivables, gross		846,752			392,837			1,239,589
Less: Allowance for losses		(85,937	)		(91,002	)		(176,939	)
Loans and finance receivables, net	$	760,815		$	301,835		$	1,062,650

	Three Months Ended June 30, 2019
	Installment Loans and			Line of Credit
	RPAs			Accounts			Total
Allowance for losses for Company-owned loans and finance receivables:
Balance at beginning of period	$	81,126		$	41,363		$	122,489
Cost of revenue		74,422			48,549			122,971
Charge-offs		(88,871	)		(42,089	)		(130,960	)
Recoveries		19,110			3,596			22,706
Effect of foreign currency translation		59			—			59
Balance at end of period	$	85,846		$	51,419		$	137,265
Liability for third-party lender-owned loans:
Balance at beginning of period	$	1,264		$	—		$	1,264
Decrease in liability		462			—			462
Balance at end of period	$	1,726		$	—		$	1,726

	Six Months Ended June 30, 2019
	Installment Loans and			Line of Credit
	RPAs			Accounts			Total
Allowance for losses for Company-owned loans and finance receivables:
Balance at beginning of period	$	93,205		$	51,009		$	144,214
Cost of revenue		156,282			86,449			242,731
Charge-offs		(202,863	)		(93,295	)		(296,158	)
Recoveries		39,189			7,256			46,445
Effect of foreign currency translation		33			—			33
Balance at end of period	$	85,846		$	51,419		$	137,265
Liability for third-party lender-owned loans:
Balance at beginning of period	$	2,166		$	—		$	2,166
Decrease in liability		(440	)		—			(440	)
Balance at end of period	$	1,726		$	—		$	1,726

	June 30, 2020
							Weighted
	Minimum			Maximum			Average⁽¹⁾
Consumer near-prime⁽²⁾
Net loss rates⁽⁴⁾		31.6	%		32.7	%		32.7	%
Prepayment rates⁽⁴⁾		7.2	%		27.6	%		27.1	%
Servicing costs⁽⁴⁾		3.0	%		3.0	%		3.0	%
Discount rates		18.5	%		18.5	%		18.5	%

Consumer sub-prime⁽²⁾
Net loss rates⁽⁴⁾		15.3	%		31.6	%		28.1	%
Prepayment rates⁽⁴⁾⁽⁵⁾		7.2	%		24.6	%		11.2	%
Servicing costs⁽⁴⁾		6.5	%		28.0	%		7.0	%
Discount rates		23.5	%		23.5	%		23.5	%

Small business⁽³⁾
Net loss rates⁽⁴⁾		5.4	%		32.1	%		27.0	%
Prepayment rates⁽⁴⁾		16.5	%		22.8	%		21.4	%
Servicing costs⁽⁴⁾		1.7	%		1.7	%		1.7	%
Discount rates		13.5	%		13.5	%		13.5	%

	As of June 30,
	2020		2019
Average amount outstanding per loan (in ones)^(a)
Installment loans^(b)(c)	$	2,382	$	1,406
Line of credit accounts		1,745		1,729
Total loans^(b)(c)	$	2,151	$	1,485

	As of March 31,
	2021		2020
Average amount outstanding per loan and finance receivable (in ones)^(a)
Consumer loans and finance receivables^(b)	$	1,843	$	1,854
Small business loans and finance receivables		29,433		23,603
Total loans and finance receivables^(b)	$	3,809	$	2,178

	Maturity date		Weighted average interest rate^(h)	Borrowing capacity			Principal outstanding
Funding Debt:
2018-1 Securitization Facility	July 2023	^(a)	5.00%		150,000			32,774
2018-2 Securitization Facility	October 2022	^(b)	3.87%		26,850			26,850
2019-1 Securitization Facility	February 2022	^(c)	—		—			—
2018-A Notes	May 2026		7.37%		13,138			13,138
2019-A Notes	June 2026		6.61%		55,252			55,252
OnDeck Account Receivables Trust 2013-1	May 2021	^(d)	—		—			—
Receivable Assets of OnDeck	December 2023	^(e)	2.62%		100,000			—
OnDeck Asset Funding II	August 2022	^(f)	3.12%		175,000			2,605
Other funding debt⁽ⁱ⁾	Various	^(g)	4.54%		61,218			24,682
Total funding debt			5.50%	$	581,458		$	155,301
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 2022		4.25%		125,000	^(j)		102,000
Other corporate debt	April 2022		1.00%		795			795
Total corporate debt			7.90%	$	750,795		$	727,795

Period	Total Number of Shares Purchased^(a)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan^(b)		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan^(b) (in thousands)
April 1 – April 30, 2020		968,699		13.23		968,699		2,397
May 1 – May 31, 2020		—		—		—		2,397
June 1 – June 30, 2020		5,209		14.49		—		2,397
Total		973,908	$	13.23		968,699	$	2,397

Exhibit No.		Exhibit Description

10.1		~~Form~~Consent and Amendment No. 5 to Credit Agreement, dated as of ~~Enova International, Inc. Second Amended~~March 31, 2021, by and ~~Restated 2014 Long-Term Incentive Plan Award Agreement~~among OnDeck Asset Funding II LLC, the Lenders party hereto and Ares Agent Services, L.P. as Administrative Agent for ~~Grant of Restricted Stock Units~~

~~10.2~~		~~Form of Enova International, Inc. Second Amended and Restated 2014 Long-Term Incentive Plan Award Agreement Special Grant of Nonqualified Stock Option with a Limited Stock Appreciation Right~~the Lenders

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Date: ~~July 29, 2020~~May 3, 2021	ENOVA INTERNATIONAL, INC.

	By:	/s/ Steven E. Cunningham
		Steven E. Cunningham
		Chief Financial Officer
		(On behalf of the Registrant and as Principal Financial Officer)