CURO Group Holdings Corp. Announces

Third Quarter 2022 Financial Results

Gross Loans Receivables Increased 115% year-over-year to $1.9 billion

Completed Divestiture of Legacy U.S. Business and Acquisition of First Heritage Credit

Completed $650 million of Non-recourse Warehouse Funding for U.S. Direct Lending

Upsized and Extended Flexiti Warehouse Funding

Wichita, Kansas--November 2, 2022-CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), a tech-enabled, omni-channel consumer finance company serving a full spectrum of non-prime and prime consumers in the U.S. and Canada, today announced financial results for its third quarter ended September 30, 2022.

"With our strategic transformations completed, we are very pleased to end the third quarter with close to $1.9 billion of gross loans receivable across our three lines of business. These loans, which are more than double the same period last year, are longer duration, better credit quality and more resilient than our legacy portfolios," said Don Gayhardt, CURO's Chief Executive Officer. "Excluding the loans associated with our purchase of First Heritage and the sale of our legacy business, we grew our gross loans receivables by 10% sequentially in constant currency."

"Macroeconomic headwinds have continued to pressure our results on three fonts — benchmark interest rate increases, Canadian to U.S. dollar weakening and credit trends normalizing to pre-pandemic levels. We have begun taking actions — primarily to reduce ongoing operating expenses — that we expect will yield meaningful results beginning in the fourth quarter of 2022 and throughout 2023 to counterbalance these macroeconomic factors."


Summarized Financial Information
(in thousands, unaudited)
Revenue	Q3 2022	Q3 2021		Change $	Change %
Legacy U.S. Direct Lending (Divested) (1)	$10,581	$126,990		$(116,409)	(92)%
US Direct Lending	96,849	4,684		92,165	1968%
Canada Direct Lending	78,979	66,190		12,789	19%
Canada POS	27,711	11,416		16,295	143%
Total Revenue	$214,120	$209,280		$4,840	2%

Loans Receivable	Q3 2022	Q2 2022	Q3 2021	Change $	Change %
Legacy U.S. Direct Lending (Divested) (1)	$—	$201,364	$217,053	$(201,364)	(100)%
US Direct Lending	739,100	527,998	11,539	211,102	40%
Canada Direct Lending	465,057	467,555	390,824	(2,498)	(1)%
Canada POS	690,270	627,163	302,349	63,107	10%
Total Loans Receivable	$1,894,427	$1,824,080	$921,765	$70,347	4%

NCO Rates	Q3 2022	Q2 2022	Q3 2021
Legacy U.S. Direct Lending (Divested) (1)	3.5%	23.8%	19.8%
US Direct Lending	3.9%	5.0%	**
Canada Direct Lending	5.9%	5.0%	3.3%
Canada POS	0.9%	0.6%	0.7%
Consolidated NCO Rates	3.3%	6.0%	7.3%

(1) Loans receivable and NCO rates for Legacy U.S. Direct Lending (Divested) represents gross combined loans receivable for the Legacy U.S. Direct Lending business. Gross combined loans receivable is a non-GAAP metric which represents gross loans receivable plus loans originated by third-party lenders which are Guaranteed by the Company. Legacy U.S. Direct Lending (Divested) revenue represents revenue related to gross combined loans receivable.
** Not meaningful

Consolidated Summary Results

We reported Net income of $25.7 million ($0.63 earnings per share) and Adjusted net loss of $11.9 million ($0.29 adjusted loss per share) on total revenue of $214.1 million for the three months ended September 30, 2022, compared with Net loss of $42.0 million ($1.02 per share) and Adjusted net income of $6.4 million ($0.15 adjusted diluted earnings per share) on total revenue of $209.3 million for the three months ended September 30, 2021.

On July 8, 2022, the Company completed the sale of our Legacy U.S. Direct Lending business to Community Choice Financial for $345.0 million, resulting in a gain on sale of business of $68.4 million recorded in the third quarter of 2022. On July 13, 2022, we completed the acquisition of First Heritage Credit, LLC (“First Heritage”), a consumer lender that provides near-prime installment loans along with customary opt-in insurance and other financial products, for $140.0 million in cash. On December 27, 2021, we closed the acquisition of Heights Finance, a consumer finance company that provides Installment loans and offers customary opt-in insurance and other financial products or a total purchase price of $360.0 million ($335.0 million in cash plus $25.0 million in stock). The completion of these transactions completed our strategic transition into longer term, higher balance and lower rate credit products.

The improvement in Net income in the third quarter of 2022 compared to the same period in 2021 was primarily driven by (i) the $68.4 million Gain on sale of business recorded in the third quarter resulting from the completion of the divestiture of our Legacy U.S. Direct Lending business in July 2022, (ii) a $11.4 million adjustment to the fair value of contingent consideration recorded in connection with our acquisition of Flexiti, and (iii) in the third quarter of 2021, a $40.2 million loss on the extinguishment and refinancing of our former senior notes ("8.25% Senior Secured Notes"), partially offset by a year-over-year $24.3 million increase in interest expense in the third quarter of 2022. The increase in interest expense in the third quarter of 2022 compared to the same period in 2021 was driven by (i) an increase in benchmark rates on variable rate debt, (ii) Senior Notes issued to fund in part our Heights Finance acquisition, and (iii) increased non-recourse asset-backed lending (ABL) borrowing to support organic loan growth and acquired portfolios.

Below are additional highlights of our performance this year:

•Revenue and Net Revenue

◦Revenue increased $4.8 million, or 2.3%, year over year, primarily driven by revenue growth in Canada POS Lending and Canada Direct Lending of 142.7% and 19.3%, respectively, and revenue related to the Heights Finance and First Heritage acquisitions. U.S. revenue declined 18.4% primarily as a result of the July 2022 divestiture of our Legacy U.S. Direct Lending business. The strategic mix shift from the divested Legacy U.S. Direct Lending business' high-cost, short-term lending to the longer-duration, lower risk consumer finance acquisitions, also affected the relationship between loan growth and revenue growth.

◦Sequentially, revenue decreased $90.3 million, or 29.7%, driven by the July 2022 divestiture of our Legacy U.S. Direct Lending business.

◦For the three months ended September 30, 2022, net revenue decreased $2.8 million, or 2.1%, year over year, and $39.1 million, or 22.4%, sequentially primarily driven by lower revenue attributable to our strategic change in product mix and the additional provision for loan losses driven by loan growth.

•Loans Receivable

◦Year-over-year growth in Gross loans receivable of $1,012.1 million, or 114.7%, was primarily driven by an increase of $549.9 million due to the acquisitions of Heights Finance and First Heritage offset by the sale of the Legacy U.S. Direct Lending business, as well as increases of $387.9 million for Canada POS Lending and $74.2 million for Canada Direct Lending.

◦Sequential loan growth in Gross loans receivable of $113.6 million, or 6.4% was primarily due to growth in Canada POS Lending of $63.1 million, or 10.1%, and growth in U.S. Lending of $53.0 million, or 7.7%, primarily due to the acquisition of First Heritage offset by the sale of the Legacy U.S. Direct Lending business.

•NCOs and Delinquency Metrics

◦Consolidated quarterly NCO rates improved by 396 bps, and consolidated 31+ past due rates decreased 332 bps year over year, respectively, primarily attributable to mix shift from (i) the relative growth of Canada POS Lending, (ii) the acquisition of Heights Finance and First Heritage, and (iii) the sale of the Legacy U.S. Direct Lending business, all of which shifts our loan portfolio mix to lower loss-rate products.

◦Sequentially, consolidated quarterly NCO rates improved by 266 bps, and consolidated 31+ past-due rates decreased by 592 bps, respectively, largely driven by loan growth in (i) U.S. Direct Lending and Canada POS Lending, which have lower NCO rates, in addition to the sale of Legacy U.S. Direct Lending business, which was a higher expected loss-rate product.

•Other Highlights

◦on July 13, 2022, concurrently with the closing of the First Heritage acquisition, we entered into a new $225.0 million non-recourse revolving warehouse facility to replace First Heritage's incumbent lender's facility and to finance future loans originated by First Heritage.

◦On July 15, 2022, we entered into a new $425.0 million non-recourse revolving warehouse facility to replace the incumbent lender's facility and finance future loans originated by Heights Finance.

◦On September 29, 2022, we amended the existing Flexiti credit facility to increase the borrowing capacity from C$500 million to C$535 million and extended its maturity to September 29, 2025.

Results of Consolidated Operations

Beginning January 1, 2022, we began reporting "Interest and fees revenue," "Insurance premiums and commissions" and "Other revenue" in place of our previously reported "Revenue" on our Statements of Operations. Prior period presentations have been revised to conform to the current period presentation.

Table 1 - Consolidated Statements of Operations


(in thousands, unaudited)	Three Months Ended September 30,								Nine Months Ended September 30,
	2022		2021		Change $		Change %		2022		2021		Change $		Change %
Revenue
Interest and fees revenue	$	180,515	$	190,629	$	(10,114)	(5.3)	%	723,802		539,155		184,647		34.2	%
Insurance premiums and commissions	24,746		12,599		12,147		96.4	%	61,659		36,021		25,638		71.2	%
Other revenue	8,859		6,052		2,807		46.4	%	23,259		18,348		4,911		26.8	%
Total revenue	214,120		209,280		4,840		2.3	%	808,720		593,524		215,196		36.3	%
Provision for losses	78,399		70,718		7,681		10.9	%	305,476		152,028		153,448		#
Net revenue	135,721		138,562		(2,841)		(2.1)	%	503,244		441,496		61,748		14.0	%
Operating Expenses
Salaries and benefits	53,413		62,110		(8,697)		(14.0)	%	215,569		175,347		40,222		22.9	%
Occupancy	12,827		13,732		(905)		(6.6)	%	47,371		41,862		5,509		13.2	%
Advertising	5,244		9,697		(4,453)		(45.9)	%	28,451		24,824		3,627		14.6	%
Direct operations	11,729		14,883		(3,154)		(21.2)	%	52,296		40,552		11,744		29.0	%
Depreciation and amortization	9,499		7,285		2,214		30.4	%	27,985		19,685		8,300		42.2	%
Other operating expense	23,646		14,851		8,795		59.2	%	58,809		45,020		13,789		30.6	%
Total operating expenses	116,358		122,558		(6,200)		(5.1)	%	430,481		347,290		83,191		24.0	%
Other expense (income)
Interest expense	50,149		25,805		24,344		94.3	%	130,683		68,784		61,899		90.0	%
Loss (income) from equity method investment	2,309		1,582		727		46.0	%	2,053		(676)		2,729		#
Gain from equity method investment	—		—		—		#		—		(135,387)		135,387		#
Loss on extinguishment of debt	3,702		40,206		(36,504)		(90.8)	%	3,702		40,206		(36,504)		(90.8)	%
(Gain) loss on change in fair value of contingent consideration	(11,355)		3,825		(15,180)		#		(7,605)		3,825		(11,430)		#
Gain on sale of business	(68,443)		—		(68,443)		#		(68,443)		—		(68,443)		#
Total other (income) expense	(23,638)		71,418		(95,056)		#		60,390		(23,248)		83,638		#
Income (loss) before income taxes	43,001		(55,414)		98,415		#		12,373		117,454		(105,081)		(89.5)	%
Provision (benefit) for income taxes	17,348		(13,375)		30,723		#		11,464		29,241		(17,777)		(60.8)	%
Net income (loss)	$	25,653	$	(42,039)	$	67,692	#		$	909	$	88,213	$	(87,304)	(99.0)	%
# - Variance greater than 100% or not meaningful

Table 2 - Consolidated Balance Sheets

(in thousands)


	September 30, 2022 (unaudited)		December 31, 2021
ASSETS
Cash and cash equivalents	$	45,683	$	63,179
Restricted cash	144,020		98,896
Gross loans receivable	1,894,427		1,548,318
Less: Allowance for loan losses	(102,743)		(87,560)
Loans receivable, net	1,791,684		1,460,758
Income taxes receivable	13,469		31,774
Prepaid expenses and other	65,167		42,038
Property and equipment, net	37,402		54,635
Investment in Katapult	25,848		27,900
Right of use asset - operating leases	64,683		116,300
Deferred tax assets	31,986		15,639
Goodwill	424,292		429,792
Intangibles, net	120,345		109,930
Other assets	12,774		9,755
Total Assets	$	2,777,353	$	2,460,596
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable and accrued liabilities	$	66,723	$	121,434
Deferred revenue	25,111		21,649
Lease liability - operating leases	66,370		122,431
Contingent consideration related to acquisition	15,770		26,508
Income taxes payable	—		680
Accrued interest	18,048		34,974
Liability for losses on CSO lender-owned consumer loans	—		6,908
Debt	2,449,316		1,945,793
Other long-term liabilities	11,563		13,845
Deferred tax liabilities	—		6,044
Total Liabilities	$	2,652,901	$	2,300,266
Total Stockholders' Equity	124,452		160,330
Total Liabilities and Stockholders' Equity	$	2,777,353	$	2,460,596

Table 3 - Consolidated Revenue by Product and Segment

The following table summarizes revenue by product related to our business lines.


	Three Months Ended
	September 30, 2022										September 30, 2021
(in thousands, unaudited)	U.S.		Canada Direct Lending		Canada POS Lending		Total		% of Total		U.S.		Canada Direct Lending		Canada POS Lending		Total		% of Total
Revolving LOC	$	2,210	$	50,251	$	24,575	$	77,036	36.0	%	$	27,377	$	40,239	$	10,646	$	78,262	37.4	%
Installment	90,834		12,645		—		103,479		48.3	%	101,036		11,331		—		112,367		53.7	%
Total interest and fees	93,044		62,896		24,575		180,515		84.3	%	128,413		51,570		10,646		190,629		91.1	%
Insurance premiums and commissions	9,986		14,045		715		24,746		11.6	%	—		12,506		93		12,599		6.0	%
Other revenue	4,400		2,038		2,421		8,859		4.1	%	3,261		2,114		677		6,052		2.9	%
Total revenue	$	107,430	$	78,979	$	27,711	$	214,120	100.0	%	$	131,674	$	66,190	$	11,416	$	209,280	100.0	%


	Nine Months Ended
	September 30, 2022						September 30, 2021
(in thousands, unaudited)	U.S.	Canada Direct Lending	Canada POS Lending	Total	% of Total		U.S.	Canada Direct Lending	Canada POS Lending	Total	% of Total
Revolving LOC	$ 57,269	$ 143,296	$ 64,077	$ 264,642	32.7	%	$ 78,391	$ 112,057	$ 18,585	$ 209,033	35.2	%
Installment	423,537	35,623	—	459,160	56.8	%	297,803	32,319	—	330,122	55.6	%
Total interest and fees	480,806	178,919	64,077	723,802	89.5	%	376,194	144,376	18,585	539,155	90.8	%
Insurance premiums and commissions	19,310	40,988	1,361	61,659	7.6	%	—	35,753	268	36,021	6.1	%
Other revenue	11,424	6,100	5,735	23,259	2.9	%	10,766	6,381	1,201	18,348	3.1	%
Total revenue	$ 511,540	$ 226,007	$ 71,173	$ 808,720	100.0	%	$ 386,960	$ 186,510	$ 20,054	$ 593,524	100.0	%

Table 4 - Consolidated Loans Receivable

The following table presents our gross loans receivables. With the sale of the Legacy U.S. Direct Lending business, we no longer guarantee loans originated by third-party lenders through CSO programs.


			As of
(in thousands, unaudited)	September 30, 2022		June 30, 2022		March 31, 2022		December 31, 2021		September 30, 2021
U.S.
Revolving LOC	$	—	$	58,471	$	49,077	$	52,532	$	51,196
Installment - Company Owned	739,100		627,651		589,652		609,413		137,987
Canada Direct Lending
Revolving LOC	439,117		442,738		424,485		402,405		366,509
Installment	25,940		24,817		23,578		24,792		24,315
Canada POS Lending
Revolving LOC	690,270		627,163		541,776		459,176		302,349
Company Owned gross loans receivable	$	1,894,427	$	1,780,840	$	1,628,568	$	1,548,318	$	882,356
Gross loans receivable Guaranteed by the Company	—		51,323		44,420		46,317		43,422
Gross combined loans receivable (1)	$	1,894,427	$	1,832,163	$	1,672,988	$	1,594,635	$	925,778
(1) See "Non-GAAP Financial Measures" at the end of this release for definition and more information.

Segment Analysis

The following tables provide a summary of segment operating (loss) income and portfolio performance for the segment and period indicated.

Table 5 - Summary of Segment Operating (Loss) Income


	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
(dollars in thousands, unaudited)	U.S.		Canada Direct Lending		Canada POS Lending		U.S.		Canada Direct Lending		Canada POS Lending
Total revenue	$	107,430	$	78,979	$	27,711	$	131,674	$	66,190	$	11,416
Provision for losses	32,073		32,947		13,379		48,430		14,003		8,285
Net revenue	75,357		46,032		14,332		83,244		52,187		3,131
Total operating expenses	76,067		26,773		13,518		84,074		26,003		12,481
Non-recourse interest expense	11,226		7,237		11,700		2,598		2,529		3,880
Recourse interest expense	19,739		(47)		294		16,883		(89)		4
Segment operating (loss) income	$	(31,675)	$	12,069	$	(11,180)	$	(20,311)	$	23,744	$	(13,234)


	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
(dollars in thousands, unaudited)	U.S.		Canada Direct Lending		Canada POS Lending		U.S.		Canada Direct Lending		Canada POS Lending
Total revenue	$	511,540	$	226,007	$	71,173	$	386,960	$	186,510	$	20,054
Provision for losses	196,461		80,960		28,055		108,108		31,793		12,127
Net revenue	315,079		145,047		43,118		278,852		154,717		7,927
Total operating expenses	302,641		82,126		45,714		245,623		76,090		25,577
Non-recourse interest expense	26,635		17,442		25,998		6,728		7,562		8,302
Recourse interest expense	59,838		(75)		845		46,449		(269)		12
Segment operating (loss) income	$	(74,035)	$	45,554	$	(29,439)	$	(19,948)	$	71,334	$	(25,964)

Table 6 - Summary of Adjusted Segment Operating (Loss) Income


	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
(dollars in thousands, unaudited)	U.S.		Canada Direct Lending		Canada POS Lending		U.S.		Canada Direct Lending		Canada POS Lending
Total revenue	$	107,430	$	78,979	$	27,711	$	131,674	$	66,190	$	11,416
Provision for losses	32,073		32,947		13,379		48,430		14,003		8,285
Net revenue	75,357		46,032		14,332		83,244		52,187		3,131
Adjusted operating expense (1)	66,796		26,621		13,528		74,109		25,909		8,206
Non-recourse interest expense	11,226		7,237		11,700		2,598		2,529		3,880
Recourse interest expense	19,739		(47)		294		16,883		(89)		4
Adjusted segment operating (loss) income (1)	$	(22,404)	$	12,221	$	(11,190)	$	(10,346)	$	23,838	$	(8,959)
(1) See "Non-GAAP Financial Measures" at the end of this release for definition and more information.


	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
(dollars in thousands, unaudited)	U.S.		Canada Direct Lending		Canada POS Lending		U.S.		Canada Direct Lending		Canada POS Lending
Total revenue	$	511,540	$	226,007	$	71,173	$	386,960	$	186,510	$	20,054
Provision for losses	196,461		80,960		28,055		108,108		31,793		12,127
Net revenue	315,079		145,047		43,118		278,852		154,717		7,927
Adjusted operating expense (1)	280,629		81,707		43,959		217,809		75,848		15,824
Non-recourse interest expense	26,635		17,442		25,998		6,728		7,562		8,302
Recourse interest expense	59,838		(75)		845		46,449		(269)		12
Adjusted segment operating (loss) income (1)	$	(52,023)	$	45,972	$	(27,684)	$	7,866	$	71,576	$	(16,211)
(1) See "Non-GAAP Financial Measures" at the end of this release for definition and more information.

Table 7 - U.S. Portfolio Performance


(in thousands, except percentages)	Q3 2022		Q2 2022(6)		Q1 2022		Q4 2021(1)		Q3 2021
Gross combined loans receivable (2)
Revolving LOC	$	—	$	58,471	$	49,077	$	52,532	$	51,196
Installment loans - Company Owned	739,100		627,651		589,652		137,782		137,987
Total U.S. Company Owned gross loans receivable	739,100		686,122		638,729		190,314		189,183
Installment loans - Guaranteed by the Company (3)	—		51,323		44,420		46,317		43,422
Total U.S. gross combined loans receivable (2)	$	739,100	$	737,445	$	683,149	$	236,631	$	232,605

Lending Revenue:
Revolving LOC	$	2,210	$	28,145	$	26,913	$	27,911	$	27,377
Installment loans - Company Owned	86,936		121,595		113,833		56,820		57,659
Installment loans - Guaranteed by the Company (3)	3,898		48,283		48,991		47,348		43,377
Total U.S. lending revenue	$	93,044	$	198,023	$	189,737	$	132,079	$	128,413

Lending Provision:
Revolving LOC	$	—	$	11,831	$	9,577	$	11,592	$	8,140
Installment loans - Company Owned	29,045		54,868		32,962		18,618		16,792
Installment loans - Guaranteed by the Company (3)	—		28,313		21,749		25,967		23,146
Total U.S. lending provision	$	29,045	$	95,012	$	64,288	$	56,177	$	48,078







NCOs (7)
Revolving LOC	$ 1,140		$ 10,248		$ 10,055		$ 11,481		$ 8,329
Installment loans - Company Owned	25,722		40,757		36,247		19,664		19,548
Installment loans - Guaranteed by the Company (3)	1,589		27,395		21,492		26,065		21,404
Total U.S. NCOs	$ 28,452		$ 78,400		$ 67,794		$ 57,210		$ 49,281

NCO rate (4) (7)
Revolving LOC	3.9%		19.1%		19.8%		22.1%		16.9%
Installment loans - Company Owned	3.8%		6.7%		6.0%		14.3%		14.1%
Total U.S. Company Owned NCO rate	3.8%		7.7%		7.1%		16.4%		14.8%
Installment loans - Guaranteed by the Company (3)	6.2%		57.2%		47.4%		58.1%		53.2%
Total U.S. NCO rate	3.9%		11.0%		14.7%		24.4%		21.6%


(in thousands, except percentages)	Q3 2022		Q2 2022(6)		Q1 2022	Q4 2021(1)	Q3 2021
ALL and CSO Liability for Losses rate (5)
Revolving LOC	—	%	25.1	%	26.7%	25.9%	26.3%
Installment loans - Company Owned	4.4	%	6.8	%	4.2%	12.7%	13.4%
Total U.S. Company Owned ALL rate	4.4	%	8.4	%	5.9%	16.3%	16.9%
Installment loans - Guaranteed by the Company (3)	—	%	15.7	%	16.1%	14.9%	16.1%
Total ALL and CSO Liability for Losses rate	4.4	%	8.9	%	6.6%	16.0%	16.8%

31+ days past-due rate (5)
Revolving LOC	—	%	17.4	%	19.1%	19.2%	18.3%
Installment loans - Company Owned	10.5	%	10.0	%	9.6%	9.4%	11.9%
Total U.S. Company Owned past-due rate(8)	10.5	%	10.7	%	10.4%	10.1%	13.6%

Installment loans - Guaranteed by the Company (3)	—	%	2.6	%	4.5%	3.1%	3.8%


(1) On December 27, 2021, we acquired Heights Finance, which accounted for approximately $472 million of U.S. Installment loans as of December 31, 2021. As the period between December 27, 2021 and December 31, 2021 did not result in material loan performance, we have excluded Heights Finance from the table for the fourth quarter of 2021.
(2) Non-GAAP measure. For a description of each non-GAAP metric, see "Non-GAAP Financial Measures."
(3) Includes loans originated by third-party lenders through CSO programs. Installment gross loans receivable Guaranteed by the Company are not included in the Consolidated Financial Statements. All balances in connection with the CSO programs were disposed of on July 8, 2022 upon the completion of the divestiture of the Legacy U.S. Direct Lending business.
(4) We calculate NCO rate as total NCOs divided by Average gross loans receivable. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.
(5) We calculate (i) Allowance for loan losses (ALL) and CSO Liability for losses rate and (ii) past-due rate as the respective totals divided by gross loans receivable at each respective quarter end.
(6) Includes loan balances and activity classified as Held for Sale.
(7) For the first, second and third quarters of 2022, NCOs presented above include $5.0 million, $10.3 million and $0.5 million, respectively, of NCO's related to the purchase accounting fair value discount, which are excluded from provision.
(8) The total past-due rate for U.S. Lending including loans 1-30 days past-due were 20.0%, 21.2%, 17.7%, 18.3% and 22.3% for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively.

Table 8 - Canada Direct Lending Portfolio Performance


(in thousands, except percentages)	Q3 2022		Q2 2022		Q1 2022			Q4 2021			Q3 2021
Gross loans receivable
Revolving LOC	$	439,117	$	442,738	$	424,485		$	402,405		$	366,509
Installment loans	25,941		24,817		23,578			24,792			24,315
Total gross loans receivable	$	465,058	$	467,555	$	448,063		$	427,197		$	390,824

Lending Revenue:
Revolving LOC	50,251		$	47,591	$	45,455		$	43,943		$	40,239
Installment loans	12,645		11,868		11,109			11,416			11,331
Total lending revenue	$	62,896	$	59,459	$	56,564		$	55,359		$	51,570

Lending Provision:
Revolving LOC	$	28,408	$	22,641	$	19,156		$	20,080		$	11,375
Installment loans	4,466		3,303		2,723			2,945			2,512
Total lending provision	$	32,874	$	25,944	$	21,879		$	23,025		$	13,887

NCOs
Revolving LOC	$ 23,652		$ 20,160		$ 21,590			$ 15,112			$ 9,887
Installment loans	4,061		2,904		2,647			2,758			2,444
Total NCOs	$ 27,713		$ 23,064		$ 24,237			$ 17,870			$ 12,331

NCO rate (1)
Revolving LOC	5.4%		4.6%		5.2%			3.9%			2.8%
Installment loans	16.0%		12.0%		10.9%			11.2%			10.2%
Total NCO rate	5.9%		5.0%		5.5%			4.4%			3.3%

ALL rate (2)
Revolving LOC	7.9%		7.2%		7.2		%	8.0		%	7.5		%
Installment loans	10.3%		9.7%		8.8		%	8.0		%	7.4		%
Total ALL rate	8.0%		7.4%		7.3		%	8.0		%	7.5		%

31+ days past-due rate (2)
Revolving LOC	5.1%		4.2%		4.3		%	3.2		%	2.5		%
Installment loans	1.0%		0.8%		1.0		%	0.9		%	0.7		%
Total past-due rate(3)	4.8%		4.0%		4.1		%	3.1		%	2.4		%

(1) We calculate NCO rate as total NCOs divided by Average gross loans receivable. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.
(2) We calculate ALL rate and past-due rate as the respective totals divided by gross loans receivable at each respective quarter end.
(3) The total past-due rate for Canada Direct Lending including loans 1-30 days past-due were 9.5%, 8.3%, 7.7%, 6.7% and 5.1% for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively.

Table 9 - Canada POS Lending Portfolio Performance


(in thousands, except percentages)	Q3 2022			Q2 2022			Q1 2022			Q4 2021			Q3 2021
Revolving LOC


Total gross loans receivable	$	690,270		$	627,163		$	541,776		$	459,176		$	302,349


Total lending revenue	$	24,575		$	20,846		$	18,655		$	13,704		$	10,646


Total lending provision	$	13,379		$	5,963		$	8,714		$	12,511		$	8,285





Canada POS Lending NCOs (1)	$	6,114		$	3,537		$	2,727		$	1,731		$	1,827


NCO rate (1)(2)	0.9		%	0.6		%	0.5		%	0.5		%	0.7		%





ALL rate (3)	4.8		%	4.5		%	5.1		%	4.8		%	3.8		%


31+ days past-due rate (3)(4)	3.6		%	2.8		%	2.2		%	1.9		%	2.1		%








(1) For the third and fourth quarters of 2021, NCOs presented above include $0.6 million and $0.8 million, respectively, of NCO's related to the fair value discount, which are excluded from provision.
(2) We calculate NCO rate as total NCOs divided by Average gross loans receivable.



(3) We calculate ALL rate and past-due rate as the respective totals divided by gross loans receivable at each respective quarter end.
(4) The total past-due rate for Canada POS Lending including loans 1-30 days past-due were 5.8%, 5.3%, 4.2%, 4.1% and 4.8% for the three months ended September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021 and September 30, 2021, respectively.

Non-GAAP Financial Measures

In addition to the financial information prepared in conformity with U.S. GAAP, we provide certain “non-GAAP financial measures,” including:

•Adjusted Net Income ("ANI") and Adjusted Earnings Per Share, or the Adjusted Earnings Measures (net income plus or minus certain legal and other costs, income or loss from equity method investment, goodwill and intangible asset impairments, transaction-related costs, restructuring costs, loss on extinguishment of debt, adjustments related to acquisition accounting, share-based compensation, intangible asset amortization, gain on sale of business, changes in fair value of contingent consideration, certain tax adjustments and cumulative tax effect of applicable adjustments, on a total and per share basis);

•EBITDA (earnings before interest, income taxes, depreciation and amortization);

•Adjusted EBITDA (EBITDA plus or minus certain non-cash and other adjusting items); and

•Gross Combined Loans Receivable (includes loans originated by third-party lenders through CSO programs which are not included in the Consolidated Financial Statements). As a result of the sale of the Legacy U.S. Direct Lending business, we no longer guarantee loans originated by third-party lenders through CSO programs.

We believe that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of the Company's operations. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of the business that, when viewed with the Company's U.S. GAAP results, provide a more complete understanding of factors and trends affecting the business.

We believe that investors regularly rely on non-GAAP financial measures to assess operating performance and that such measures may highlight trends in the business that may not otherwise be apparent when relying on financial measures calculated in accordance with U.S. GAAP. In addition, we believe that the adjustments shown above are useful to investors to allow them to compare our financial results during the periods shown without the effect of each of these income or expense items. In addition, we believe that these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of public companies in our industry, many of which present non-GAAP financial measures when reporting their results.

In addition to reporting loans receivable information in accordance with U.S. GAAP, we provide Gross Combined Loans Receivable consisting of owned loans receivable plus loans originated by third-party lenders through the CSO programs, which we guaranteed but do not include in the Consolidated Financial Statements. Management believes this analysis provides investors with important information needed to evaluate overall lending performance. As noted above, the Company no longer provides these guarantees to third-party lenders as a result of the sale of the Legacy U.S. Direct Lending business.

Non-GAAP financial measures should not be considered as alternatives to income, segment operating income, or any other performance measure derived in accordance with U.S. GAAP, or as an alternative to cash flows from operating activities or any other liquidity measure derived in accordance with U.S. GAAP. Readers should consider the information in addition to, but not instead of or superior to, the financial statements prepared in accordance with U.S. GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Description and Reconciliations of Non-GAAP Financial Measures

Non-GAAP financial measures have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our income or cash flows as reported under U.S. GAAP. Some of these limitations are:

•they do not include cash expenditures or future requirements for capital expenditures or contractual commitments;

•they do not include changes in, or cash requirements for, working capital needs;

•they do not include the interest expense, or the cash requirements necessary to service interest or principal payments on debt;

•depreciation and amortization are non-cash expense items reported in the statements of cash flows; and

•other companies in our industry may calculate these measures differently, limiting their usefulness as comparative measures.

We calculate Adjusted Earnings per Share utilizing diluted shares outstanding at quarter-end. If we record a loss under U.S. GAAP, shares outstanding utilized to calculate Diluted Loss per Share are equivalent to basic shares outstanding. Shares outstanding utilized to calculate Adjusted Earnings per Share reflect the number of diluted shares we would have reported if reporting net income under U.S. GAAP. If we record an Adjusted Loss per Share, shares outstanding utilized to calculate Diluted Loss per Share are equivalent to basic shares outstanding.

We believe investors use the non-GAAP measures we present to analyze operating performance and to evaluate our ability to incur and service debt and the capacity for making capital expenditures. Adjusted EBITDA is also useful to investors to help assess our estimated enterprise value.

Table 10 - Reconciliation of Net Income and Diluted Earnings per Share to Adjusted Net Income and Adjusted Diluted Earnings per Share, non-GAAP measures


(in thousands, except per share data, unaudited)	Three Months Ended September 30,								Nine Months Ended September 30,
	2022		2021		Change $		Change %		2022		2021		Change $		Change %
Net income (loss)	$	25,653	$	(42,039)	$	67,692	#		$ 909		$ 88,213		($ 87,304)		(99.0)	%
Adjustments:
Restructuring costs (1)	739		5,651						2,954		11,414
Legal and other costs (2)	46		370						1,083		370
Loss (income) from equity method investment (3)	2,309		1,582						2,053		(676)
Gain from equity method investment (11)	—		—						—		(135,387)
Transaction costs (4)	10,063		141						10,063		6,482
Acquisition-related adjustments (5)	(2,883)		4,292						709		9,787
Change in fair value of contingent consideration (6)	(11,355)		3,825						(7,605)		3,825
Loss on extinguishment of debt (12)	3,702		42,262						3,702		42,262
Share-based compensation (7)	1,448		3,998						9,958		10,148
Intangible asset amortization (8)	3,151		1,774						9,652		4,471
Gain on sale of business (13)	(68,443)		—						(68,443)		—
Cumulative tax effect of adjustments (9)	23,677		(15,411)						18,061		13,058
Adjusted net (loss) income	$	(11,893)	$	6,445	$	(18,338)	#		$	(16,904)	$ 53,967		$	(70,871)	#

Net income (loss)	$	25,653	$	(42,039)					$ 909		$ 88,213
Diluted weighted average shares outstanding	40,835		41,220						40,754		43,422
Adjusted diluted average shares outstanding	40,835		43,285						40,754		43,422
Diluted earnings (loss) per share	$	0.63	$	(1.02)	$	1.65	#		$	0.02	$	2.03	$	(2.01)	#
Per share impact of adjustments to net (loss) income	(0.92)		1.17						(0.43)		(0.79)
Adjusted diluted (loss) earnings per share	$	(0.29)	$	0.15	$	(0.44)	(293.3)	%	($ 0.41)		$ 1.24		$	(1.65)	(133.1)	%
Note: Footnotes follow Reconciliation of Net income table on the next page

Table 11 - Reconciliation of Net Income to EBITDA and Adjusted EBITDA, Non-GAAP Measures


	Three Months Ended September 30,										Nine Months Ended September 30,
(in thousands, unaudited)	2022			2021			Change $		Change %		2022			2021			Change $		Change %
Net income (loss)	$	25,653		$	(42,039)		$	67,692	#		$ 909			$ 88,213			$	(87,304)	(99.0)	%
Provision (benefit) for income taxes	17,348			(13,375)			30,723		#		11,464			29,241			(17,777)		(60.8)	%
Interest expense	50,149			25,805			24,344		94.3	%	130,683			68,784			61,899		90.0	%
Depreciation and amortization	9,499			7,285			2,214		30.4	%	27,985			19,685			8,300		42.2	%
EBITDA	102,649			(22,324)			124,973		#		171,041			205,923			(34,882)		(16.9)	%
Restructuring costs (1)	739			5,651							2,954			11,414
Legal and other costs (2)	46			370							1,083			370
Loss (income) from equity method investment (3)	2,309			1,582							2,053			(676)
Gain from equity method investment (11)	—			—							—			(135,387)
Transaction costs (4)	10,063			141							10,063			6,482
Acquisition-related adjustments (5)	(2,883)			4,292							709			9,787
Change in fair value of contingent consideration (6)	(11,355)			3,825							(7,605)			3,825
Loss on extinguishment of debt (12)	3,702			40,206							3,702			40,206
Gain on sale of business (13)	(68,443)			—							(68,443)			—
Share-based compensation (7)	1,448			3,998							9,958			10,148
Other adjustments (10)	—			(118)							(581)			(392)
Adjusted EBITDA	$	38,275		$	37,623		$	652	1.7	%	$	124,934		$	151,700		$	(26,766)	(17.6)	%
Adjusted EBITDA Margin	17.9		%	18.0		%					15.4		%	25.6		%
# - Change greater than 100% or not meaningful

Table 12 - Reconciliation of Total Operating Expense to Adjusted Operating Expense


	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
(dollars in thousands, unaudited)	U.S.		Canada Direct Lending		Canada POS Lending		U.S.		Canada Direct Lending		Canada POS Lending
Total operating expense	$	76,067	$	26,773	$	13,518	$	84,074	$	26,003	$	12,481
Less:
Restructuring costs (1)	739		—		—		5,651		—		—
Legal and other costs (2)	46		—		—		370		—		—
Transaction costs (4)	10,063		—		—		141		—		—
Acquisition-related adjustments (5)	(2,883)		—		—		—		—		4,292
Share-based compensation (7)	1,306		152		(10)		3,998		—		—
Other adjustments (10)	—		—		—		(195)		94		(17)
Adjusted operating expense	$	66,796	$	26,621	$	13,528	$	74,109	$	25,909	$	8,206


	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
(dollars in thousands, unaudited)	U.S.		Canada Direct Lending		Canada POS Lending		U.S.		Canada Direct Lending		Canada POS Lending
Total operating expense	$	302,641	$	82,126	$	45,714	245,623		76,090		25,577
Less:
Restructuring costs (1)	2,954		—		—		11,414		—		—
Legal and other costs (2)	1,076		7		—		370		—		—
Transaction costs (4)	10,063		—		—		6,482		—		—
Acquisition-related adjustments (5)	491		—		218		—		—		9,787
Share-based compensation (7)	8,068		396		1,494		10,148		—		—
Other adjustments (10)	(640)		16		43		(600)		242		(34)
Adjusted operating expense	$	280,629	$	81,707	$	43,959	$	217,809	$	75,848	$	15,824


(1)			Restructuring costs for the three and nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, respectively, resulted from U.S. store closures and related costs and certain severance payments to eliminate duplicate roles.
(2)			Legal and other costs for the three and nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, respectively, primarily related to settlement costs related to certain legal matters.
(3)			The amount reported is our share of Katapult's U.S. GAAP net income or loss, recognized on a one quarter lag.
(4)			Transaction costs for the three and nine months ended September 30, 2022 relate to, the sale of the Legacy U.S. Direct Lending business, and the acquisition of First Heritage, both of which closed in July 2022.
(5)			During the three months and nine months ended September 30, 2022, acquisition-related adjustments related to the acquired Heights Finance and First Heritage loan portfolios. During the three months and nine months ended September 30, 2021, acquisition-related adjustments related to the acquired Flexiti loan portfolio.
(6)			In connection with our acquisition of Flexiti, we recorded a $11.4 million and $7.61 million adjustment related to the fair value of the contingent consideration for the three and nine months ended September 30, 2022, respectively. We recorded a $3.8 million and $3.8 million adjustment related to the fair value of the contingent consideration for the three and nine months ended September 30, 2021, respectively.
(7)			The estimated fair value of share-based awards was recognized as non-cash compensation expense on a straight-line basis over the vesting period.
(8)			Intangible asset amortization in determining ANI for the three and nine months ended September 30, 2022 primarily included amortization of identifiable intangible assets established in connection with the acquisitions of Flexiti, Heights Finance and First Heritage.
(9)			Cumulative tax effect of adjustments included in Reconciliation of Net income to Adjusted Net Income table is calculated using the estimated incremental tax rate by country.
(10)			During the three and nine months ended 2021 and during the nine months ended 2022, other adjustments primarily reflect the intercompany foreign-currency exchange impact.
(11)			Gain on investment in Katapult of $135.4 million recorded during the three and nine months ended September 30, 2021 as a result of its reverse merger with FinServ.
(12)			On July 30, 2021, we entered into new 7.50% Senior Secured Notes due 2028, which were used on August 12, 2021 to extinguish the 8.25% Senior Secured Notes due 2025. During the three and nine months ended September 30, 2021, $40.2 million from the loss on the extinguishment of debt was due to the early redemption of the 8.25% Senior Secured Notes due 2025. An additional $2.1 million of interest was incurred for the three and nine months ended September 30, 2021, which represents interest on the 8.25% Senior Secured Notes due 2025 for the period between July 30, 2021 and August 12, 2021. This is the period during which the 8.25% Senior Secured Notes and 7.50% Senior Secured Notes were outstanding. During the three and nine months ended September 30, 2022, $3.1 million of the loss on extinguishment of debt was due to the early extinguishment of the U.S. SPV on July 8, 2022 upon the completion of the divestiture of our Legacy U.S.Direct Lending business to Community Choice Financial, and $0.6 million was due to the extinguishment of the Heights Finance SPV on July 15, 2022.
(13)			On July 8, 2022, the Company completed the divestiture of its Legacy U.S. Direct Lending business to Community Choice Financial, resulting in a gain of $68.4 million recorded to "Gain on sale of business" in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2022.

Forward-Looking Statements

This press release contains forward-looking statements. These forward-looking statements include projections, estimates and assumptions about various matters, such as future financial and operational performance, including reduction in operating expenses, and our belief in the usefulness of the various non-GAAP financial measures used in this release. In addition, words such as “guidance,” “estimate,” “anticipate,” “believe,” “forecast,” “step,” “plan,” “predict,” “focused,” “project,” “is likely,” “expect,” “intend,” “should,” “will,” “confident,” variations of such words and similar expressions are intended to identify forward-looking statements. Our ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of our control, that could cause actual results to differ materially from those in the forward-looking statements, including: errors in our internal forecasts or those of companies in which we invest; the effects of competition on our business or on those companies in which we invest; our ability to attract and retain customers; market, financial, political and legal conditions; actions of regulators and the negative impact of those actions on our business; the continuing impact of COVID-19 pandemic or any other similar wide-spread event on our business and the global economy; our dependence on third-party lenders to provide the cash we need to fund our loans and our ability to affordably access third-party financing; our level of indebtedness; our ability to successfully integrate acquired businesses; our ability to protect our proprietary technology and analytics and keep up with that of our competitors; disruption of our information technology systems that adversely affect our business operations;

ineffective pricing of the credit risk of our prospective or existing customers; inaccurate information supplied by customers or third parties that could lead to errors in judging customers’ qualifications to receive loans; improper disclosure of customer personal data; failure of third parties who provide products, services or support to us; any failure of third-party lenders upon whom we rely to conduct business in certain states; disruption to our relationships with banks and other third-party electronic payment solutions providers as well as other factors discussed in our filings with the Securities and Exchange Commission. These projections, estimates and assumptions may prove to be inaccurate in the future. These forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. There may be additional risks that CURO presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. We undertake no obligation to update, amend or clarify any forward-looking statement for any reason.

All product names, logos, brands, trademarks and registered trademarks are property of their respective owners.

About CURO

CURO Group Holdings Corp. (NYSE: CURO) is a full-spectrum consumer credit lender serving U.S. and Canadian customers for over 25 years. Our roots in the consumer finance market run deep. We’ve worked diligently to provide customers a variety of convenient, easily accessible financial services. Our decades of alternative data power a hard-to-replicate underwriting and scoring engine, mitigating risk across the full spectrum of credit products. We operate a number of brands including Cash Money®, LendDirect®, Flexiti®, Opt+®, Revolve Finance®, Heights Finance, Southern Finance, Covington Credit, Quick Credit, First Phase, and First Heritage Credit.

Conference Call

CURO will host a conference call to discuss these results at 5:00 p.m. Eastern Time on Wednesday, November 2, 2022. The live webcast of the call can be accessed at the CURO Investor Relations website at http://ir.curo.com/.

You may access the call at 1-833-953-2430 (1-412-317-5759 for international callers). Please ask to join the CURO Group Holdings call. A replay of the conference call will be available until November 9, 2022, at 5:00 p.m. Eastern Time. An archived version of the webcast will be available on the CURO Investors website for 90 days. You may access the conference call replay at 1-877-344-7529 (1-412-317-0088 for international callers). The replay access code is 3181575.

Final Results

The financial results presented and discussed herein are on a preliminary and unaudited basis; final unaudited data will be included in the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2022.

Investor Relations:

Roger Dean

Executive Vice President and Chief Financial Officer

Phone: 844-200-0342

Email: [email protected]

(CURO-NWS)

N O V E M B E R 2 , 2 0 2 2 Third Quarter 2022 Earnings Presentation

2 D I S C L A I M E R IMPORTANT: You must read the following information before continuing to the rest of the presentation, which is being provided to you for informational purposes only. FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. These forward-looking statements include projections, estimates and assumptions about various matters such as future financial and operational performance, including yields, cost saving initiatives and revenue enhancements and purchase accounting. In addition, words such as “estimate,” “believe,” “forecast,” “predict,” “project,” “intend,” “should,” variations of such words and similar expressions are intended to identify forward-looking statements. Our ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of our control, that could cause actual results to differ materially from those in the forward-looking statements, including, risks relating to the uncertainty of projected financial information and forecasts, the effects of competition on our business; our ability to attract and retain customers; global economic, market, financial, political or health conditions or events; our dependence on third-party lenders to provide the cash we need to fund our loans and our ability to affordably access third-party financing; our level of indebtedness; our ability to integrate acquired businesses; the impact of regulations on our business; our ability to protect our proprietary technology and analytics; disruption of our information technology systems; improper disclosure of customer personal data as well as other factors discussed in our filings with the Securities and Exchange Commission. The foregoing factors, as well as other existing risk factors and new risk factors that emerge from time to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. Furthermore, the Company undertakes no obligation to update, amend or clarify forward-looking statements. NON-GAAP FINANCIAL MEASURES In addition to the financial information prepared in conformity with U.S. GAAP, we provide certain “non-GAAP financial measures,” including: Adjusted Net Income (Net Income from continuing operations minus certain non-cash and other adjusting items); Adjusted Earnings Per Share (Adjusted net income divided by diluted weighted average shares outstanding); Adjusted Pre-Tax Income, (Income from continuing operations before income taxes minus certain non-cash and other adjusting items); Adjusted EBITDA (EBITDA plus or minus certain non-cash and other adjusting items); and Gross Combined Loans Receivable (includes loans originated by third-party lenders through CSO programs which are not included in our consolidated financial statements). Such measures are intended as a supplemental measure of our performance that are not required by, or presented in accordance with, GAAP. We present these non-GAAP financial measures because we believe that, when viewed with our GAAP results and the accompanying reconciliation, such measures provide useful information for comparing our performance over various reporting periods as they remove from our operating results the impact of items that we believe do not reflect our core operating performance. These non-GAAP financial measures are not substitutes for any GAAP financial measure and there are limitations to using them. Although the Company believes that these non-GAAP financial measures can make an evaluation of our operating performance more consistent because they remove items that do not reflect our core operations, other companies in the Company’s industry may define their own non-GAAP financial measures differently or use different measures. As a result, it may be difficult to use any non-GAAP financial measure to compare the performance of other companies to our performance. The non-GAAP financial measures presented in these slides should not be considered as measures of the income generated by our business or discretionary cash available to us to invest in the growth of our business. Our management compensates for these limitations by reference to GAAP results and using these non-GAAP financial measures as supplemental measures. Reconciliation of non-GAAP metrics to the closest comparable GAAP metrics are included on slides 14 to 18. All product names, logos, brands, trademarks and registered trademarks are property of their respective owners.

3 LOAN BALANCES1 ($Millions) $391 $427 $448 $468 $465 $302 $459 $542 $627 $690 $12 $471 $463 $491 $739 3Q21 4Q21 1Q22 2Q22 3Q22 Canada Direct Lending Canada POS Lending U.S. Direct $1,586 $705 $1,357 $1,453 $1,894 Loan Growth Trends Y-o-Y $ Change Y-o-Y % Change Sequential $ Change Sequential % Change Canada Direct Lending $74 19% ($3) (1%) Canada POS Lending $388 128% $63 10% U.S. Direct $727 ** $248 51% Q3 2022 CHANGE IN LOANS1 ($Millions) 2 1 All quarters exclude Company-Owned Loans and Loans Guaranteed by the Company under CSO programs. The CSO program was discontinued with the sale of the Legacy U.S. Direct Lending business in July 2022. Please see slide 18 for reconciliation for prior periods 2 U.S. Direct is comprised of (i) loans acquired through our acquisitions of Heights Finance (12/27/21) and First Heritage (7/13/22), (ii) loans retained after the sale of the Legacy U.S. Direct Lending business, and (iii) loans originated during the quarter. The balances reflect fair value adjustments recorded in the opening acquired balance sheets ** Not meaningful

4 Provision for loan losses by Segment ($Millions) $48 $56 $64 $95 $29 $14 $23 $22 $26 $33 $8 $13 $9 $6 $13 3Q21 4Q21 1Q22 2Q22 3Q22 U.S. Canada Direct Lending Canada POS Lending $8 $19 $5 -$2 $3 $5 $6 $11 $6 $2 $7$7 $15 $12 $24 $13 3Q21 4Q21 1Q22 2Q22 3Q22 U.S. Canada Direct Lending Canada POS Net Impact: Provision for loan losses minus net charge-offs by segment ($Millions) Quarterly Net Charge-Off Rate % by Segment CANADA DIRECT LENDING PAST DUE AR %1 0% 2% 4% 6% 8% 10% 3Q21 4Q21 1Q22 2Q22 3Q22 1-30 DPD 31-60 DPD 61+ DPD 0% 5% 10% 15% 20% 25% 30% 3Q21 4Q21 1Q22 2Q22 3Q22 1-30 DPD 31-60 DPD 61+ DPD U.S. DIRECT LENDING PAST DUE AR %1 2 1 Periods presented prior to 1Q22 exclude Single-Pay 2 Periods presented prior to 2Q22 include performance of the sold Legacy U.S. Direct lending business Credit Trends • Relative sequential loan balances, credit performance and product mix shift affect provision for loan losses comparisons • Delinquencies have returned to pre-COVID levels with recent increases driven by continued loan growth, customer and origination channel mix 21.6% 24.4% 14.7% 11.0% 3.9%3.3% 4.4% 5.5% 5.0% 5.9% 0.7% 0.5% 0.5% 0.6% 0.9% 3Q21 4Q21 1Q22 2Q22 3Q22 U.S. NCO rate Canada Direct Lending NCO rate Canada POS Lending NCO rate

5 Consolidated Financial Performance Recap REVENUE1 2 ($Millions) ADJUSTED EBITDA2 ($Millions) ADJUSTED EARNINGS PER SHARE2 $0 $50 $100 $150 $200 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue Net revenue $38 $17 $54 $32 $38 3Q21 4Q21 1Q22 2Q22 3Q22 $0.15 ($0.29) $0.15 ($0.28) ($0.29) 3Q21 4Q21 1Q22 2Q22 3Q221 Excludes revenue associated with the sold Legacy U.S. Direct lending business 2 Reconciliation of non-GAAP metrics to the closest comparable GAAP metrics included within slides 14 through 18 • Consolidated revenue was $214 million, up 2% from the same quarter last year; excluding the divested Legacy U.S. Direct Lending business, revenue was up 147% year over year • Net revenue was down $3 million, or (2%), year over year and decreased $39 million, or (22%), sequentially; excluding the divested Legacy U.S. Direct Lending business, net revenue was up $70 million, or 130% versus same quarter a year ago and up $36 million, or 40% sequentially • Adjusted net income declined $18 million1, year over year due to the strategic change in product mix shift, additional provision related to loan growth and provision for loan loss dynamics and higher interest expense • Interest expense – up $24 million, or 94%, year over year due to (i) increases in benchmark rates underlying our variable debt, (ii) Senior Notes issued to fund in part our Heights Finance acquisition, and (iii) increased non-recourse ABL borrowing to support organic loan growth and acquired portfolios

6 Financial Performance: Canada Direct Lending Loan Balances ($Millions) $391 $427 … $468 $465 3Q21 4Q21 1Q22 2Q22 3Q22 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue Net revenue $24 $18 $19 $15 $12 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue ($Millions) Adjusted Pre-tax Income1 ($Millions) 1 Consolidated reconciliation of non-GAAP metrics to the closest comparable GAAP metrics included within slides 14 through 18 $448 • Loans receivable up 19% year over year due to strong customer demand and flat sequentially. On a constant currency basis, loans were up 31% and 6%, respectively • Revenue up 19% year over year and 4% sequentially • Adjusted EBITDA down $6 million year over year and $1 million sequentially primarily due to higher loan loss provision on loan growth and continued credit normalization • Adjusted Pre-tax Income down versus a year ago and sequentially due to higher loan loss provision and interest expense on variable rate debt 3Q 2022 Highlights $27 $21 $24 $22 $21 3Q21 4Q21 1Q22 2Q22 3Q22 Adjusted EBITDA1 ($Millions)

$302 $459 $542 $627 $690 3Q21 4Q21 1Q22 2Q22 3Q22 7 Financial Performance: Canada POS Lending Loan Balances ($Millions) $0 $5 $10 $15 $20 $25 $30 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue Net revenue -$6 -$15 -$6 -$4 -$9 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue ($Millions) Adjusted Pre-tax Income1 ($Millions) 1 Consolidated reconciliation of non-GAAP metrics to the closest comparable GAAP metrics included within slides 14 through 18 • Loans receivable up 129% year over year and 10% sequentially due to continued strong growth with existing and new merchants • Originations for the nine months ended 9/30/22 were C$921 million or an increase of 137% over prior period • Average yield 14% which is expected to further increase as the loan book matures and customers exit promotional financing • Revenue up 160% year over year and 20% sequentially • Adjusted Pre-tax Income down versus a year ago and sequentially, largely driven by the rise in the cost of variable rate debt to support loan growth • NCO rate increased 30bps sequentially to 90bps 3Q 2022 Highlights -$2 -$9 $1 $5 $5 3Q21 4Q21 1Q22 2Q22 3Q22 Adjusted EBITDA1 ($Millions)

$12 $471 $463 $491 $739 3Q21 4Q21 1Q22 2Q22 3Q22 8 Financial Performance: U.S. Direct Lending Loan Balances1 ($Millions) 1 Loan balances are comprised of (i) loans acquired through our acquisitions of Heights Finance (12/27/21) and First Heritage (7/13/22), (ii) loans retained after the sale of the Legacy U.S. Direct Lending business, and (iii) loans originated during the quarter. The balances reflect fair value adjustments recorded in the opening acquired balance sheets 2 Excludes revenue associated with the sold Legacy U.S. Direct lending business $0 $20 $40 $60 $80 $100 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue Net revenue -$7 -$17 $0 -$26 -$21 3Q21 4Q21 1Q22 2Q22 3Q22 Revenue2 ($Millions) Adjusted Pre-tax Income3 ($Millions) 3 Consolidated reconciliation of non-GAAP metrics to the closest comparable GAAP metrics included within slides 14 through 18 • Loans receivables and Revenue increased sequentially primarily due to our acquisition of First Heritage • Adjusted EBITDA up $8 million sequentially primarily due to lower operating expenses from the sale of our Legacy U.S. Direct Lending business offset by lower net revenue • Sequentially, NCO rate decreased to 3.9% from 11.0% primarily due to the shift in our product mix from our acquisitions and sale 3Q 2022 Highlights $12 $4 $30 $5 $13 3Q21 4Q21 1Q22 2Q22 3Q22 Adjusted EBITDA3 ($Millions)

9 Diversified Funding Sources $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 HFC SPV FHC SPV CDL SPV FLX SPV FLX 2021-1 US Revolver CN Revolver Commitments ($Millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 Sr. Notes HFC SPV FHC SPV CDL SPV FLX SPV FLX 2021-1 US Revolver CN Revolver Debt Maturities 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 SO FR & CDO R W AC D (a nn ua liz ed ) Historical Weighted-average Cost of Revolving Debt (SPV) WACD SOFR CDOR

10 Appendix

11 Q3 2022 Cash Earnings Illustration $Millions Canada Direct Lending Canada Point of Sale US Direct Lending1 Total Centralized/ Shared Services2 Total CURO Adjusted Pre-tax income $12.2 ($9.4) $8.4 $11.2 ($29.4) ($18.2) Depreciation & amortization $1.1 $2.0 $0.7 $3.8 $2.5 $6.3 Change in allowance for loan losses $5.2 $7.3 $4.9 $17.4 ($4.3) $13.1 Merchant Discount Rate - $4.1 - $4.1 - $4.1 Cash Earnings $18.5 $4.0 $14.0 $36.5 ($31.2) $5.3 1 Includes results of Heights Finance and First Heritage 2 Includes (i) costs of Centralized Functions (i.e., IT, HR, Legal, Finance, etc.), (ii) recourse interest on Senior Notes not allocated to the operating business segments, (iii) results of our discontinued Card products (Opt+, Revolve) and suspended product First Phase, and (iv) results of the sold Legacy U.S. Direct Lending business from July 1 – July 8, 2022

12 Expected Cost Saving Initiatives and Revenue Enhancements $Millions APTI Canada Store Closures and Headcount Reduction $13-14 Canada POS Deferred Spend ~$5 US Store Closures and Headcount Reduction $10-12 FirstPhase Suspension ~$7 US Corporate Office Function Consolidation and Closures ~$5-7 Cost Savings Initiatives $40-45 Risk-Adjusted Revenue Enhancements ~100bps-125bps

13 First Heritage Purchase Accounting1 1 The values assigned to the assets acquired and liabilities assumed are based on preliminary estimates of fair value available as of the date of this presentation and may be adjusted during the measurement period of up to 12 months from the date of acquisition as further information becomes available • Current estimated fair value adjustment, which will represent the credit component of the acquired loans, is approximately $18 million. This fair value adjustment is recorded as a reduction to gross loans • The fair value discount is accreted into revenue over the expected life of the loan portfolio. We expect the amortization period to be 20 months • Trade name and customer relationship intangible assets will be amortized over 10 years and 3.5 years, respectively Select Acquired Assets 7/13/22 Purchase Accounting Adjustment Fair Value Adjusted Assets 7/13/22(in thousands, unaudited) Loans recevable, gross $ 236,094 $ (18,083) $ 218,011 Allowance for loan losses (14,278) 14,278 Loans receivable, net $ 221,816 $ (3,805) $ 218,011 Goodwill - $ 75,365 $ 75,365 Intangible Assets - Trade name - $ 3,790 $ 3,790 Intangible Assets - Customer Relationship - $ 6,880 $ 6,880

14 Historical Consolidated Adjusted EBITDA Reconciliation ($Millions) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net income (loss) from continuing operations $(42.0) $(28.9) $1.3 ($26.1) $25.7 Provision (benefit) for income taxes (13.4) (8.0) 1.1 (6.9) 17.3 Interest expense 25.8 28.5 38.3 42.2 50.1 Depreciation and amortization 7.3 7.3 9.8 8.7 9.5 EBITDA $(22.3) $(1.1) $50.6 $17.9 $102.6 Loss (income) from equity method investment3 1.6 (3.0) (1.6) 1.3 2.3 Share-based compensation7 4.0 3.8 4.1 4.4 1.4 Restructuring costs1 5.6 1.3 1.1 1.1 0.7 Legal and other costs2 0.4 1.7 0.1 1.0 0.1 Acquisition-related adjustments5 4.3 4.2 0.2 3.2 (2.9) Change in fair value of contingent consideration6 3.8 2.4 (0.3) 4.0 (11.4) Loss on extinguishment of debt12 40.2 - - - 3.7 Transaction costs4 0.1 7.3 0.2 (0.2) 10.1 Gain on sale of business13 - - - - (68.4) Other Adjustments10 (0.1) (0.1) (0.1) (0.5) - Adjusted EBITDA $37.6 $16.5 $54.3 $32.4 $38.3 Adjusted EBITDA Margin 18.0% 7.4% 18.7% 10.6% 17.9% For a description of each addback, refer to slide 17 Note: Subtotals may not sum due to rounding

15 Historical Consolidated Adjusted Net Income Reconciliation ($Millions, except per share data) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Net Income (Loss) from continuing operations $(42.0) $(28.9) $1.3 ($26.1) $25.7 Loss (income) from equity method investment3 1.6 (3.0) (1.6) 1.3 2.3 Share-based compensation7 4.0 3.8 4.1 4.4 1.4 Restructuring costs1 5.6 1.3 1.1 1.1 0.7 Legal and other costs2 0.4 1.7 0.1 1.0 0.1 Acquisition-related adjustments5 4.3 4.2 0.2 3.4 0.7 Change in fair value of contingent consideration6 3.8 2.4 (0.3) 4.0 (11.4) Loss on extinguishment of debt12 42.3 - - - 3.7 Transaction costs4 0.1 8.9 0.2 (0.2) 6.5 Intangible asset amortization8 1.8 1.8 3.0 3.5 3.2 Gain on sale of business13 - - - - (68.4) Cumulative tax effect of adjustments9 (15.4) (4.6) (1.8) (3.8) 23.7 Adjusted net income (loss) from continuing operations $6.4 $(12.3) $6.3 ($11.3) $(11.9) Net income (loss) from continuing operations $(40.2) $(28.9) $1.3 ($26.1) $25.70 Diluted Weighted Average Shares Outstanding 41.2 40.3 41.3 40.4 40.8 Adjusted Diluted Weighted Average Shares Outstanding16 43.3 42.4 41.3 40.4 40.8 Diluted (Loss) Earnings per Share from Continuing Operations $(1.02) $(0.72) $0.03 ($0.65) $0.63 Per share impact of adjustments to net income (loss) from Continuing Operations $1.17 $0.43 $0.12 $0.37 ($0.92) Adjusted Diluted Earnings per Share from Continuing Operations $0.15 $(0.29) $0.15 ($0.28) ($0.29) For a description of each addback, refer to slide 17 Note: Subtotals may not sum due to rounding

16 Historical Consolidated Adjusted Pre-Tax Income Reconciliation ($Millions, except per share data) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Pre-tax income (loss) from continuing operations $(55.4) $(36.9) $2.4 ($26.1) $43.0 Loss (income) from equity method investment3 1.6 (3.0) (1.6) 1.3 2.3 Share-based compensation7 4.0 3.8 4.1 4.4 1.4 Restructuring costs1 5.6 1.3 1.1 1.1 0.7 Legal and other costs2 0.4 1.7 0.1 1.0 0.1 Acquisition-related adjustments5 4.3 4.2 0.2 3.4 0.7 Change in fair value of contingent consideration6 3.8 2.4 (0.3) 4.0 (11.4) Loss on extinguishment of debt12 42.3 - - - 3.7 Transaction costs4 0.1 8.9 0.2 (0.2) 6.5 Intangible asset amortization8 1.8 1.8 3.0 3.5 3.2 Gain on sale of business13 - - - - (68.4) Adjusted pre-tax income (loss) from continuing operations $8.5 $(15.7) $9.2 ($7.6) ($18.2) For a description of each addback, refer to slide 17 Note: Subtotals may not sum due to rounding

17 # Description 1 Restructuring costs for the three and nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, respectively, resulted from U.S. store closures and related costs and certain severance payments to eliminate duplicate roles 2 Legal and other costs for the three and nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, respectively, primarily related to settlement costs related to certain legal matters 3 The amount reported is our share of Katapult's U.S. GAAP net income or loss, recognized on a one quarter lag 4 Transaction costs for the three and nine months ended September 30, 2022 relate to the sale of the Legacy U.S. Direct Lending business and the acquisition of First Heritage, both of which closed in July 2022 5 During the three months and nine months ended September 30, 2022, acquisition-related adjustments related to the acquired Heights Finance and First Heritage loan portfolios During the three months and nine months ended September 30, 2021, acquisition-related adjustments related to the acquired Flexiti loan portfolio as of March 10, 2021 6 In connection with our acquisition of Flexiti, we recorded a $11.4 million and $7.61 million adjustment related to the fair value of the contingent consideration for the three and nine months ended September 30, 2022, respectively. We recorded a $3.8 million and $3.8 million adjustment related to the fair value of the contingent consideration for the three and nine months ended September 30, 2021, respectively 7 The estimated fair value of share-based awards was recognized as non-cash compensation expense on a straight-line basis over the vesting period 8 Intangible asset amortization in determining Adjusted Net Income for the three and nine months ended September 30, 2022 primarily included amortization of identifiable intangible assets established in connection with the acquisitions of Flexiti, Heights Finance and First Heritage 9 Cumulative tax effect of adjustments included in Reconciliation of Net income to Adjusted Net Income table is calculated using the estimated incremental tax rate by country 10 During the three and nine months ended 2021 and during the nine months ended 2022, other adjustments primarily reflect the intercompany foreign-currency exchange impact 11 Gain on investment in Katapult of $135.4 million recorded during the three and nine months ended September 30, 2021 as a result of its reverse merger with FinServ. 12 On July 30, 2021, we entered into new 7.50% Senior Secured Notes due 2028, which were used on August 12, 2021 to extinguish the 8.25% Senior Secured Notes due 2025. During the three and nine months ended September 30, 2021, $40.2 million from the loss on the extinguishment of debt was due to the early redemption of the 8.25% Senior Secured Notes due 2025. An additional $2.1 million of interest was incurred for the three and nine months ended September 30, 2021, which represents interest on the 8.25% Senior Secured Notes due 2025 for the period between July 30, 2021 and August 12, 2021. This is the period during which the 8.25% Senior Secured Notes and 7.50% Senior Secured Notes were outstanding. During the three and nine months ended September 30, 2022, $3.1 million of the loss on extinguishment of debt was due to the early extinguishment of the U.S. SPV on July 8, 2022 upon the completion of the divestiture of our Legacy U.S.Direct Lending business, and $0.6 million was due to the extinguishment of the Heights Finance SPV on July 15, 2022 13 On July 8, 2022, we completed the divestiture of the Legacy U.S. Direct Lending business to Community Choice Financial, resulting in a gain of $68.4 million recorded to "Gain on sale of business" in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2022. Description of adjustments for Consolidated Adjusted EBITDA, Consolidated Adjusted Net Income, and Consolidated Adjustment Pre-Tax Income Reconciliations

18 Historical Gross Combined Loan Receivables ($Millions) 3Q21 4Q21 1Q22 2Q22 3Q22 Company-owned gross loans receivable $882.4 $1,548.3 $1,628.6 $1,780.8 $1,894.4 Gross loans receivable guaranteed by the Company $43.4 $46.3 $44.4 $51.3 - Gross combined loans receivable $925.8 $1,594.6 $1,673.0 $1,832.2 $1,894.4 Note: Subtotals may not sum due to rounding The above table summarizes Company-owned gross loans receivable, a GAAP balance sheet measure, and reconciles it to gross combined loans receivable, a non-GAAP measure including loans originated by third-party lenders through CSO programs, which are not included in our Condensed Consolidated Financial Statements but from which we earn revenue and for which we provide a guarantee to the lender


Delaware	001-38315	90-0934597
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3615 North Ridge Road, Wichita, Kansas		67205
(Address of Principal Executive Offices)		(Zip Code)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock	CURO	NYSE


Exhibit Number			Description

99.1			Press Release, dated November 2, 2022
99.2			Supplemental Earnings Presentation
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)