Form 8-K - Current report

Share Name	Share Symbol	Market	Type
CURO Group Holdings Corp	NYSE:CURO	NYSE	Common Stock

	Price Change	% Change	Share Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	0.095				0	01:00:00

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_______________________________________________________________________

FORM 8-K

__________________________________________________________________________

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): August 3, 2023

________________________________________________________________________

CURO GROUP HOLDINGS CORP

(Exact Name of Registrant as Specified in Its Charter)

________________________________________________________________________


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

200 West Hubbard Street, 8th Floor, Chicago, Illinois		60654
(Address of Principal Executive Offices)		(Zip Code)

(312) 470-2000

(Registrant’s Telephone Number, Including Area Code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

________________________________________________________________________

Check the appropriate box below if the Form8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock	CURO	NYSE

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

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02 Results of Operations and Financial Condition

On August 3, 2023, CURO Group Holdings Corp. (the “Company”) issued a press release announcing its financial results for the three months ended June 30, 2023. A copy of the press release and a supplemental presentation that will be used in conjunction with its earnings call with investors on August 3, 2023 is attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and is incorporated herein by reference.

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

ITEM 9.01 Financial Statements and Exhibits

(d). Exhibits


Exhibit Number			Description
99.1			Press Release, dated August 3 , 2023
99.2			Supplemental Earnings Presentation
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 3rd day of August, 2023.

CURO Group Holdings Corp.

By: /s/ Ismail Dawood______

Ismail Dawood

Chief Financial Officer

CURO Group Holdings Corp. Reports

Second Quarter 2023 Financial Results

-Gross loans receivables increased 3.7% sequentially to $2.1 billion-

-Total revenue of $209.2 million-

-Operating expenses declined 8.5% sequentially to $108.1 million-

-Net charge-off normalizes at 13%-

Chicago, Illinois--August 3, 2023 - CURO Group Holdings Corp. (NYSE: CURO) (“CURO” or the “Company”), a tech-enabled, omni-channel consumer finance company serving consumers in the U.S. and Canada, today announced financial results for its second quarter ended June 30, 2023.

“We delivered solid results in the second quarter as we continued to execute on all facets of our core business,” said Doug Clark, Chief Executive Officer. “Our fundamentals continued to gradually improve, with revenue, net charge-offs, gross loans receivable and expenses all matching or exceeding our expectations. As we look ahead, despite ongoing macro challenges, we are encouraged by opportunities present in both the U.S. and Canada while remaining mindful to balance future growth with further improving our bottom line. Our extensive industry experience, investments in automation and strong consumer demand for our products position us well for long term growth and shareholder value creation.”

Second Quarter 2023 Consolidated Summary Results

•Gross loans receivable increased 3.7% sequentially to $2.1 billion, primarily driven by sequential increases in Canada POS Lending and Direct Lending Revolving LOC Loans of 6.9% and 2.5%, respectively.

•Net revenue of $129.6 million, down 11.5% sequentially, primarily driven by a higher provision for loan loss expense related to the increase in charge offs and Allowance for loan loss build due to loans receivable growth and change in macroeconomic conditions.

•Total operating expenses declined 8.5% sequentially, to $108.1 million, primarily related to one-time restructuring charges of $10.0 million recognized in the first quarter of 2023.

•Net loss of $59.3 million ($1.45 per share) compared with Net loss of $59.5 million ($1.46 per share) for the first quarter of 2023. The $0.2 million improvement was primarily driven by favorable decreases of $18.4 million in provision for income taxes and $10.1 million in total operating expenses, partially offset by lower net revenue and a $7.2 million increase in Interest expense due to the new term loan secured in May 2023 as well as increased utilization of non-recourse revolving credit facilities and $8.9 million of extinguishment and modification costs arising from the second quarter's debt transactions.

•Net charge-off rate increased 150 bps, sequentially to 13.0%, returning to normalized rates from the temporary lower rates we saw in our Direct Lending brands in Canada after the policy change we made in the first quarter of 2023. The Company's 91+ days delinquency ratio remained flat sequentially at 3.2%.


	As of or for the Quarter Ended
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
Delinquency and Loss Ratios	2023		2023		2022		2022		2022
31-60 days delinquency ratio	1.9	%	1.8	%	1.9	%	2.5	%	2.4	%
61-90 days delinquency ratio	1.3	%	1.5	%	1.3	%	1.5	%	1.8	%
91+ days delinquency ratio	3.2	%	3.2	%	2.6	%	2.6	%	2.0	%
Net charge-offs	13.0	%	11.5	%	14.8	%	13.2	%	24.0	%

Funding and Liquidity

As of June 30, 2023, principal debt balances outstanding were $2.8 billion, consisting of 69.2% of fixed rate or hedged variable rate debt and 30.8% of non-hedged variable rate debt.

As of June 30, 2023, available capital resources were approximately $361.9 million, comprised of $111.3 million in unrestricted Cash and cash equivalents, $176.7 million in unused borrowing capacity and $74.0 million of unencumbered Gross loans receivable.

About CURO

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

Conference Call

CURO will host a conference call to discuss these results at 8:30 a.m. Eastern Time on Thursday, August 3, 2023. The live webcast of the call can be accessed at the CURO Investor Relations website at http://ir.curo.com/.

You may access the call at 1-416-764-8658 (Toll free: 1-888-396-8049; Conference ID: 82661841). Please ask to join the CURO Group Holdings call. An archived version of the webcast will be available on the CURO Investors website for 90 days.

Final Results

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

Table 1 - Consolidated Statements of Operations


(in thousands, except per share data, unaudited)	Three Months Ended,
	Jun 30,		Mar 31,		Dec 31,		Sept 30,		Jun 30,
	2023		2023		2022		2022		2022

Revenue
Interest and fees revenue	$	178,986	$	179,437	$	181,605	$	180,515	$	278,331
Insurance and other income	30,257		30,036		35,593		33,605		26,073
Total revenue	209,243		209,473		217,198		214,120		304,404
Provision for losses	79,598		62,932		94,849		78,399		129,546
Net revenue	129,645		146,541		122,349		135,721		174,858
Operating Expenses
Salaries and benefits	61,346		64,805		66,067		53,413		82,427
Occupancy	11,267		11,672		12,114		12,827		17,507
Advertising	2,131		2,175		3,692		5,244		12,707
Direct operations	15,466		13,092		11,832		11,729		20,293
Depreciation and amortization	9,141		9,021		8,337		9,499		8,672
Other operating expense	8,796		17,433		24,002		23,645		18,787
Total operating expenses	108,147		118,198		126,044		116,357		160,393
Other expense (income)
Interest expense	66,101		58,943		54,978		50,149		42,193
Loss from equity method investment	2,134		3,413		1,932		2,309		1,328
Goodwill impairment	—		—		145,241		—		—
Extinguishment or modification of debt costs	8,864		—		689		3,702		—
Loss on change in fair value of contingent consideration	—		2,728		—		(11,354)		4,014
Gain on sale of business	—		2,027		—		(68,443)		—
Miscellaneous expenses	1,435		—		—		—		—
Total other expense (income)	78,534		67,111		202,840		(23,637)		47,535
Income (loss) before income taxes	(57,036)		(38,768)		(206,535)		43,001		(33,070)
Provision (benefit) for income taxes	2,291		20,703		(20,142)		17,348		(6,990)
Net (loss) income	$	(59,327)	$	(59,471)	$	(186,393)	$	25,653	$	(26,080)




Basic (loss) earnings per share	$	(1.45)	$	(1.46)	$	(4.60)	$	0.63	$	(0.65)



Diluted (loss) earnings per share	$	(1.45)	$	(1.46)	$	(4.60)	$	0.63	$	(0.65)

Weighted average common shares outstanding:
Basic	41,002		40,783		40,488		40,479		40,376
Diluted	41,002		40,783		40,488		40,835		40,376

Table 2 - Consolidated Balance Sheets


	As of
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
(in thousands, unaudited)	2023		2023		2022		2022		2022
ASSETS
Cash and cash equivalents	$	112,531	$	54,935	$	73,932	$	45,683	$	37,394
Restricted cash	109,484		123,282		91,745		144,020		97,465
Gross loans receivable	2,139,865		2,062,829		2,087,833		1,894,427		1,592,815
Less: Allowance for loan losses	(272,615)		(259,959)		(122,028)		(102,743)		(90,286)
Loans receivable, net	1,867,250		1,802,870		1,965,805		1,791,684		1,502,529
Income taxes receivable	20,854		20,100		21,918		13,469		46,450
Prepaid expenses and other	44,518		47,295		53,057		65,167		25,370
Property and equipment, net	28,418		29,867		31,957		37,402		38,752
Investment in Katapult	18,368		20,502		23,915		25,848		28,157
Right of use asset - operating leases	56,021		54,597		61,197		64,683		64,602
Deferred tax assets	54,102		53,474		49,893		31,986		23,993
Goodwill	277,069		276,487		276,269		424,292		352,990
Intangibles, net	133,947		127,387		123,677		120,345		113,130
Other assets	22,275		10,991		15,828		12,774		8,558
Assets held for sale (1)	—		—		—		—		338,779
Total Assets	$	2,744,837	$	2,621,787	$	2,789,193	$	2,777,353	$	2,678,169
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable and accrued liabilities	$	78,343	$	85,875	$	73,827	$	66,723	$	81,423
Deferred revenue	36,793		33,227		32,259		25,111		23,425
Lease liability - operating leases	56,585		55,468		62,847		66,370		67,339
Contingent consideration related to acquisition	18,499		18,128		16,884		15,770		30,354
Income taxes payable	788		—		—		—		4
Accrued interest	39,306		20,090		38,460		18,048		34,970
Debt	2,772,872		2,627,263		2,607,314		2,449,316		2,189,431
Other long-term liabilities	10,016		10,552		11,736		11,563		12,146
Deferred tax liabilities	8		—		—		—		12,360
Liabilities held for sale (1)	—		—		—		—		111,137
Total Liabilities	$	3,013,210	$	2,850,603	$	2,843,327	$	2,652,901	$	2,562,589
Total Stockholders' (Deficit) Equity	(268,373)		(228,816)		(54,134)		124,452		115,580
Total Liabilities and Stockholders' (Deficit) Equity	$	2,744,837	$	2,621,787	$	2,789,193	$	2,777,353	$	2,678,169

(1) Assets held for sale and Liabilities held for sale represent the balance, as of June 30, 2022, for assets and liabilities, respectively, associated with the sale of the Legacy U.S. Direct Lending Business, which closed in July 2022.

Table 3 - Consolidated Portfolio Performance


(in thousands, except percentages, unaudited)	Q2 2023		Q1 2023		Q4 2022		Q3 2022		Q2 2022(1)
Gross loans receivable
Revolving LOC	$	1,385,152	$	1,314,695	$	1,284,515	$	1,129,387	$	1,128,372
Installment loans	754,713		748,134		803,318		765,040		652,468
Total gross loans receivable	$	2,139,865	$	2,062,829	$	2,087,833	$	1,894,427	$	1,780,840

Lending Revenue
Revolving LOC	$	86,703	$	84,225	$	81,170	$	77,037	$	96,582
Installment loans	92,283		95,212		100,435		103,478		181,749
Total lending revenue	$	178,986	$	179,437	$	181,605	$	180,515	$	278,331

Lending Provision
Revolving LOC	$	42,932	$	30,106	$	46,745	$	41,787	$	40,435
Installment loans	35,171		31,139		46,442		33,510		86,484
Total lending provision	$	78,103	$	61,245	$	93,187	$	75,297	$	126,919

NCOs (2)
Revolving LOC	$	32,786	$	17,953	$	35,387	$	30,907	$	33,945
Installment loans	35,483		41,078		38,168		31,372		71,056
Total NCOs	$	68,269	$	59,031	$	73,555	$	62,279	$	105,001

NCO rate (annualized) (2) (3)
Revolving LOC	9.7%		5.6%		11.6%		10.8%		12.8%
Installment loans	18.9%		21.5%		19.6%		17.6%		44.8%
Total NCO rate	13.0%		11.5%		14.8%		13.2%		24.0%

ACL rate (4) (5)
Revolving LOC	13.6%		13.3%		6.1%		6.0%		6.7%
Installment loans	11.2%		11.3%		5.4%		4.6%		8.1%
Total ACL rate	12.7%		12.6%		5.8%		5.4%		6.7%

31+ days past-due rate (4)
Revolving LOC	5.6%		5.5%		3.3%		4.1%		4.1%
Installment loans	8.1%		8.2%		9.6%		10.2%		9.2%
Total past-due rate	6.5%		6.5%		5.8%		6.6%		6.1%

(1) Includes loan balances and activity classified as Held for Sale.
(2) NCOs include $0.5 million and $10.3 million, for the three months ended September 30, 2022 and June 30, 2022, respectively, related to the purchase accounting fair value discount, which are excluded from provision.
(3) We calculate NCO rate as total quarterly NCOs divided by Average gross loans receivable; then we annualize the rate. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.
(4) We calculate (i) Allowance for credit losses ("ACL") rate and (ii) 31+ days past-due rate as the respective totals divided by gross loans receivable at each quarter end.
(5) We adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" on January 1, 2023, which requires us to estimate the lifetime expected credit loss on financial instruments. Our previous model required the recognition of credit losses when it was probable that a loss had been incurred.

Table 4 - Direct Lending Segment - Operating Income / (Loss)


(in thousands, unaudited)	Three Months Ended,
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,
	2023		2023		2022		2022		2022

Total revenue	$	167,016	$	169,368	$	181,925	$	186,409	$	281,251
Provision for losses	63,755		48,364		77,724		65,020		123,584
Net revenue	103,261		121,004		104,201		121,389		157,667
Total operating expenses	91,285		103,151		111,632		102,840		143,965
Segment operating income (loss)	$	11,976	$	17,853	$	(7,431)	$	18,549	$	13,702

Table 5 - Direct Lending Segment - Portfolio Performance


(in thousands, except percentages, unaudited)	Q2 2023		Q1 2023		Q4 2022			Q3 2022			Q2 2022(1)
Gross loans receivable
Revolving LOC	$	472,902	$	461,443	$	451,077		$	439,117		$	501,209
Installment loans	754,713		748,133		803,318			765,041			652,467
Total gross loans receivable	$	1,227,615	$	1,209,576	$	1,254,395		$	1,204,158		$	1,153,676

Lending Revenue
Revolving LOC	$	49,483	$	49,092	$	49,915		$	52,461		$	75,736
Installment loans	92,283		95,212		100,435			103,478			181,748
Total lending revenue	$	141,766	$	144,304	$	150,350		$	155,939		$	257,484

Lending Provision
Revolving LOC	$	27,089	$	15,539	$	29,620		$	28,408		$	34,472
Installment loans	35,171		31,139		46,442			33,511			86,485
Total lending provision	$	62,260	$	46,678	$	76,062		$	61,919		$	120,957

NCOs (2)
Revolving LOC	$	21,780	$	6,234	$	26,715		$	24,793		$	30,408
Installment loans	35,483		41,078		38,168			29,783			43,661
Total NCOs	$	57,263	$	47,312	$	64,883		$	54,576		$	74,069

NCO rate (annualized) (2) (3)
Revolving LOC	18.7%		5.5%		23.8%			20.9%			25.0%
Installment loans	18.9%		21.5%		19.3%			16.7%			27.7%
Total NCO rate	18.8%		15.6%		20.9%			18.4%			26.5%

ACL rate (4) (5)
Revolving LOC	26.6%		25.6%		8.4		%	7.9		%	9.3		%
Installment loans	11.2%		11.3%		5.4		%	4.6		%	6.9		%
Total ACL rate	17.1%		16.8%		6.5		%	5.8		%	7.9		%

31+ days past-due rate (4)
Revolving LOC	8.5%		8.4%		4.1		%	5.1		%	5.8		%
Installment loans	8.1%		8.2%		9.6		%	10.2		%	9.7		%
Total past-due rate	8.3%		8.3%		7.6		%	8.3		%	8.0		%

(1) Includes loan balances and activity classified as Held for Sale.
(2) NCOs include $0.5 million and $10.3 million, for the three months ended September 30, 2022 and June 30, 2022, respectively, related to the purchase accounting fair value discount, which are excluded from provision.
(3) We calculate NCO rate as total quarterly NCOs divided by Average gross loans receivable, then we annualize the rate. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.
(4) We calculate (i) ACL rate and (ii) 31+ days past-due rate as the respective totals divided by gross loans receivable at each quarter end.
(5) We adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" on January 1, 2023, which requires us to estimate the lifetime expected credit loss on financial instruments. Our previous model required the recognition of credit losses when it was probable that a loss had been incurred.

Table 6 - Canada POS Lending Segment - Operating Income


(in thousands, unaudited)	Three Months Ended,
	Jun 30,		Mar 31,		Dec 31,		Sept 30,		Jun 30,
	2023		2023		2022		2022		2022

Total revenue	$	42,227	$	40,105	$	35,273	$	27,711	$	23,153
Provision for losses	15,843		14,568		17,125		13,379		5,962
Net revenue	26,384		25,537		18,148		14,332		17,191
Total operating expenses	16,862		15,047		14,412		13,518		16,428
Segment operating income	$	9,522	$	10,490	$	3,736	$	814	$	763

Table 7 - Canada POS Lending Segment - Portfolio Performance


(in thousands, except percentages, unaudited)	Q2 2023			Q1 2023			Q4 2022			Q3 2022			Q2 2022
Revolving LOC
Gross loans receivable	$	912,250		$	853,253		$	833,438		$	690,270		$	627,163
Lending revenue	$	37,220		$	35,133		$	31,255		$	24,575		$	20,847
Lending provision	$	15,843		$	14,568		$	17,125		$	13,379		$	5,963
NCOs	$	11,006		$	11,719		$	8,672		$	6,114		$	3,537
NCO rate (annualized) (1)	5.0		%	5.6		%	4.4		%	3.6		%	2.4		%
ACL rate (2) (3)	6.8		%	6.7		%	4.9		%	4.8		%	4.5		%
31+ days past-due rate (2)	4.0		%	3.9		%	2.9		%	3.6		%	2.8		%
(1) We calculate NCO rate as total quarterly NCOs divided by Average gross loans receivable and then annualize the rate. The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications and the periodic sale of charged off loans.
(2) We calculate (i) ACL rate and (ii) 31+ days past-due rate as the respective totals divided by gross loans receivable at each respective quarter end.
(3) We adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" on January 1, 2023, which requires us to estimate the lifetime expected credit loss on financial instruments. Our previous model required the recognition of credit losses when it was probable that a loss had been incurred.

Forward-Looking Statements

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

Investor Relations:

Email: IR@curo.com

(CURO-NWS)

Q2 2023 Earnings Presentation August 3, 2023

Disclaimer 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 our future financial and operational performance, including our third quarter outlook, various target ranges and growth strategy framework. In addition, words such as “estimate,” “believe,” “forecast,” “predict,” “project,” “intend,” “should” and variations of such words and similar expressions are intended to identify forward-looking statements. Our ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of our control, that could cause actual results to differ materially from those in the forward-looking statements, including, risks relating to the uncertainty of projected financial information and forecasts, our level of indebtedness; our dependence on third-party lenders to provide the cash we need to fund our indebtedness and our ability to affordably access third-party financing; the impact of regulations on our business; the effects of competition on our business; our ability to attract and retain customers; global economic, market, financial, political or public health conditions or events; our ability to integrate acquired businesses; our ability to protect our proprietary technology and analytics; disruption of our information technology systems; improper disclosure of customer personal data, as well as other factors discussed in our filings with the Securities and Exchange Commission. The foregoing factors, as well as other existing risk factors and new risk factors that emerge from time to time, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. Furthermore, the Company undertakes no obligation to update, amend or clarify forward-looking statements. Non-Gaap Financial Measures In addition to the financial information prepared in conformity with U.S. GAAP, we provide certain “non-GAAP financial measures.” Such measures are intended as a supplemental measure of our performance that are not required by, or presented in accordance with, GAAP. We present these non-GAAP financial measures because we believe that, when viewed with our GAAP results and the accompanying reconciliation, such measures provide useful information for comparing our performance over various reporting periods as they remove from our operating results the impact of items that we believe do not reflect our core operating performance. These non-GAAP financial measures are not substitutes for any GAAP financial measure and there are limitations to using them. Although the Company believes that these non-GAAP financial measures can make an evaluation of our operating performance more consistent because they remove items that do not reflect our core operations, other companies in the Company’s industry may define their own non- GAAP financial measures differently or use different measures. As a result, it may be difficult to use any non-GAAP financial measure to compare the performance of other companies to our performance. The non-GAAP financial measures presented in these slides should not be considered as measures of the income generated by our business or discretionary cash available to us to invest in the growth of our business. Our management compensates for these limitations by reference to GAAP results and using these non- GAAP financial measures as supplemental measures. Reconciliation of non-GAAP metrics to the closest comparable GAAP metrics are included in the Appendix. NOTE: All dollar amounts for Canada in this presentation are in U.S. Dollars, unless otherwise noted. 2

2Q23 Highlights - Steady progress across our three pillars Strengthen our Foundation Execute with ExcellenceGrow Responsibly 3 • Responsible loan growth of $77M, or 4.0% Q/Q amid seasonally slower quarter ◦ $18M in Direct Lending ◦ $59M in Canada POS • Increased secured originations in U.S. should drive lower credit risk • Integrated First Heritage into Heights platform • Improving expense ratios • Introduced improved credit underwriting capabilities to support growth and overall credit performance in CDL • Liquidity and capacity of $399M at the end of Q2 • Stabilized credit and delinquencies

Gross Loans Receivable $1,781 $1,894 $2,088 $2,063 $2,140 1,154 1,204 1,254 1,210 1,228 627 690 833 853 912 Direct Lending Canada POS 2Q22 3Q22 4Q22 1Q23 2Q23 Disciplined and gradual receivables growth 4 ($ Millions) * Legacy U.S. Direct Lending business was sold and First Heritage Credit was acquired. *

Total Direct Lending NCOs $74 $55 $65 $65 $57 26.5% 18.4% 20.9% 21.5% 18.8% 2Q22 3Q22 4Q22 1Q23 2Q23 Canada $23 $28 $30 $28 $27 20.0% 23.6% 25.6% 24.1% 21.5% 2Q22 3Q22 4Q22 1Q23 2Q23 U.S. $78 $28 $35 $38 $3044.0% 15.6% 18.4% 20.2% 16.9% 2Q22 3Q22 4Q22 1Q23 2Q23 Credit quality improving Highlights: • In the U.S., Direct Lending net charge-offs ("NCOs") declined sequentially • In Canada, 2Q23 NCOs reflect a full period of the change in charge-off policy, while 1Q23 NCOs were artificially low due to this change in policy. Excluding the change in policy during 1Q23, NCOs in Canada decreased on a sequential basis ($ Millions) * Direct Lending NCOs by Geography 5 * Legacy U.S. Direct Lending business was sold and First Heritage Credit was acquired 1 1Q23 NCOs excluding policy change. Reported 1Q23 Direct Lending NCOs and NCO % were $47M and 15.6%, respectively in the U.S. and $10M and 8.0%, respectively in Canada, including the change in charge-off policy 1 1* 1

Delinquency rates remain relatively stable ($ Millions) 6 Canada U.S. Total Direct Lending $75 $78 $77 $60 $59 10.1% 10.5% 9.9% 8.4% 8.2% 2Q22 3Q22 4Q22 1Q23 2Q23 $19 $22 $19 $40 $42 4.0% 4.8% 4.0% 8.1% 8.3% 2Q22 3Q22 4Q22 1Q23 2Q23 $92 $100 $96 $100 $101 8.0% 8.3% 7.6% 8.3% 8.3% 2Q22 3Q22 4Q22 1Q23 2Q23 1 1 Implemented change in charge-off policy in Canada during 1Q23

Canada POS NCOs remain stable as portfolio continues to season and mature NCOs DQs ($ Millions) 7* NCOs = Net charge-offs; DQs = Delinquencies Canada POS $4 $6 $9 $12 $11 2.4% 3.6% 4.4% 5.6% 5.0% NCO NCO % (annualized) 2Q22 3Q22 4Q22 1Q23 2Q23 $18 $25 $25 $33 $37 2.8% 3.6% 2.9% 3.9% 4.0% 31+ Days Past Due 31+ Days Past Due % 2Q22 3Q22 4Q22 1Q23 2Q23

% Change ($Millions) 2Q23 1Q23 2Q22 Q/Q Y/Y Revenue $209 $209 $304 — % (31) % Interest Expense 66 59 42 12 % (31) % Net Interest Income $143 $151 $262 (5) % (45) % Operating Expenses 108 118 160 (8) % (33) % Other Expense 12 8 5 50 % 140 % Pre-provision Loss Income $23 $24 $97 (4) % (76) % Net Charge-offs 68 59 105 15 % (35) % Credit Changes1 11 4 25 175 % (56) % Pre-tax Loss, Post-provison $(57) $(39) $(33) 46 % 73 % Provision (Benefit) for Income Taxes 2 21 (7) (90) % (129) % Net Loss $(59) $(59) $(26) — % 127 % Diluted EPS (actuals) $(1.45) $(1.46) $(0.65) Key Performance Metrics Pre-tax Loss, Post-provision (57) Net Revenue, Post-provision expense2 130 146 174 Exclude: Debt modification fees 9 NCO % 13.0 % 11.5 % 24.0 % Net Interest Margin, Post-Charge-offs3 14 % 14 % 36 % Modified Pre-tax Loss, Post- provision (48) OpEx Ratio4 21 % 23 % 37 % Average Gross Receivables $2,101 $2,075 $1,753 Summary 2Q23 Results Highlights: • Growth of receivables amid a typically seasonally slower quarter • Continued improvement in operating efficiency • One-time charge of $9M included in Other Expense related to debt modification fees • New Money Term Loan and Canadian SPV raised as of May 15th, 2023, which contributed to the interest expense increase during 2Q23 • 2Q23 NCOs reflect a full period of the change in charge-off policy in our Direct Lending business in Canada, while 1Q23 NCOs were artificially low due to this change in policy. Excluding the change in policy during 1Q23, NCOs in Canada decreased on a sequential basis Note: The above table may not sum due to rounding 1 Includes changes in allowance for credit losses, see Appendix for Reconciliation of Non-GAAP Metrics 2 Net Revenue, Post-provision expense = (Revenue) - (Net Charge-offs) - (Credit Changes) 3Net Interest Margin, Post Charge-offs = ((Net Interest Income) – (Net Charge-offs)) / (Average Receivables); annualized; 1Q23 excludes change in charge-off policy 4 Operating Expense Ratio = (Operating Expenses / Average Receivables); annualized 8

2Q23 Segment Results 9 Note: The above table may not sum due to rounding 1 Includes corporate expenses 2 Includes changes in allowance for credit losses, see Appendix for Reconciliation of Non-GAAP Metrics 3 Net Interest Margin, post-charge-offs = ((Net Interest Income) – (Net Charge-offs)) / (Average Receivables), annualized 4 Operating Expense Ratio = (Operating Expenses / Average Receivables); annualized ($Millions) Direct Lending1 Canada Point of Sale Total Revenue $167 $42 $209 Interest Expense $50 $16 $66 Net Interest Income $117 $27 $143 Operating Expenses $91 $17 $108 Other Expense $12 $0 $12 Pre-provision Income $13 $10 $23 Net Charge-offs $57 $11 $68 Credit Changes2 $7 $5 $11 Pre-tax Loss, Post-provision $(51) $(6) $(57) Gross Loans Receivables $1,228 $912 $2,140 Key Performance Metrics NCO % 18.8 % 5.0 % 13.0 % Net Interest Margin, post-charge-offs3 19 % 7 % 14 % OpEx Ratio4 30 % 8 % 21 % Average Gross Receivables $1,219 $883 $2,101

10 Increased allowance due to loan growth and conservative macro outlook Highlights: • No significant changes in allowance as a percentage of gross loans since last quarter • The $13M increase in allowance is primarily due to Canada POS loan growth and our conservative macro outlook $120 $103 $122 $260 $273 6.7% 5.4% 5.8% 12.6% 12.7% Allowance for Credit Losses Allowance, as a % of Gross Loans Receivable 2Q22 3Q22 4Q22 1Q23 2Q23 ($ Millions) * Legacy U.S. Direct Lending business was sold and First Heritage Credit was acquired *

11 Net Interest Income increased sequentially $157 $102 $89 $73 $7536% 22% 18% 14% 14% Net Interest Income, Post charge-offs Net Interest Margin, Post Charge-offs 2Q22 3Q22 4Q22 1Q23 2Q23 ($ Millions) Highlights: • Excluding the change in charge-off policy in 1Q23, net interest income increased slightly Q/Q and net interest margin, post charge-offs, remained stable, even as interest expense increased sequentially. * * Legacy U.S. Direct Lending business was sold and First Heritage Credit was acquired 1 1Q23 excluding policy change. Reported 1Q23 Net Interest Income, Post-charge offs and Net Interest Margin, Post charge-offs were $91M and 18% respectively 1

Continued progress in managing expenses Highlights: • Operating expenses were relatively flat vs prior quarter, when excluding the $10 million of restructuring expenses in prior quarter OpEx Ratio1($ Millions) 12 Consolidated Operating Expenses $160 $116 $126 $118 $108 2Q22 3Q22 4Q22 1Q23 2Q23 Direct Lending 51.4% 34.9% 36.3% 33.5% 30.0% 2Q22 3Q22 4Q22 1Q23 2Q23 Canada POS 11.2% 8.2% 7.6% 7.1% 7.6% 2Q22 3Q22 4Q22 1Q23 2Q23 * * Legacy U.S. Direct Lending business was sold and First Heritage Credit was acquired 1 OpEx Ratio = (Operating Expenses) / (Average Receivables); annualized 2 Includes corporate expenses * 2

Net Leverage & Interest Coverage 8.6x 11.1x 14.6x 12.2x 15.4x 1.5x 1.1x 0.8x 0.9x 0.7x Net Leverage Interest Coverage Ratio 2Q22 3Q22 4Q22 1Q23 2Q23 Liquidity and Capacity $598 $496 $291 $288 $399 445 306 126 110 177 105 144 92 123 109 48 46 74 55 113 Unused Capacity Restricted Cash Unrestricted Cash 2Q22 3Q22 4Q22 1Q23 2Q23 Liquidity and Capacity * Legacy U.S. Direct Lending business was sold and First Heritage Credit was acquired 1 See Appendix for definition of Net Leverage and Interest Coverage, which are Non-GAAP financial measures 2 Represents facility commitments to support growth, less funded amounts * ($ Millions) 2 Highlights: Total liquidity increased $111M sequentially due to an increase in unrestricted cash of $58M and additional capacity of $53M 13 1 *

3Q 2023 Outlook Strengthen our Foundation • Optimize lending facilities Execute with Excellence • Improve operating leverage • Complete U.S. branch conversion to a single platform Grow Responsibly • Quality asset growth • Stabilize NIM Receivables: $XX-$XX OpEx Ratio: $XX-$XX Continue to maintain adequate liquidity and capacity for growth 3Q23 Targets: EOP Receivables: $2.15-2.25B Revenue: $210-$220M Net Charge-off: 12.5-15.5% Operating Expenses: $108-$118M 14

15 Appendix

Growth framework through-the-cycle Strengthen our Foundation Execute with Excellence Grow Responsibly Receivables Growth: 8-10% • Direct Lending: 8-10% • Canada POS: 8-10% NIM, Post Charge-offs2: 17-20% • Direct Lending: 26-31% • Canada POS: 7-8% 1 Target ranges do not account for changes in Canadian rate caps and will be updated for any final legislation. Ranges are based on assumptions about historical cyclical economic stability and are subject to factors that could cause actual ranges to differ from target ranges 2 Net Interest Margin, Post Charge-offs = ((Net Interest Income) – (Net Charge-offs)) / (Average Receivables); annualized 3 Net Leverage on Recourse debt, see Appendix Adjusted Earnings Before Provision, Interest and Taxes Target Ranges 1 Strategic Actions • Enhance liquidity position and manage to a minimum run-rate level • Continue to create highly scalable, reliable and innovative technology • Continued expense efficiencies • Further centralize and automate operations • New procurement programs • Right customer, right product capabilities • Continued credit risk improvements • Expand customer acquisition capabilities • Expand branch footprint OpEx Ratio: 15-17% • Direct Lending: 23-26% • Canada POS: 6-7% Net Leverage3: 5.0x-6.0x 1616

17 Reconciliation of Non-GAAP Metrics: Credit Changes 1 NCOs presented above include $0.5 million and $10.3 million, for the three months ended September 30, 2022 and June 30, 2022, respectively, related to the purchase accounting fair value discount, which are excluded from provision. Net Charge-offs and Credit Changes ($Millions) 2Q22 3Q22 4Q22 1Q23 2Q23 Provision for Losses $130 $78 $95 $63 $80 Net Chargeoffs (adjusted for purchase accounting1) (105) (62) (74) (59) (68) Credit Changes $25 $16 $21 $4 $11

18 Direct Lending Revenue and Receivables by Geography Note: The above table may not sum due to rounding 2Q23 Direct Lending by Geography ($Millions) U.S. Canada Direct Lending Revenue $89 $78 $167 Net Charge-offs 30 27 57 Credit Changes 0 6 7 Net Revenue $59 $44 $104 Gross Loans Receivable $719 $509 $1,228

19 Reconciliation of Non-GAAP Metrics: Net Leverage and Interest Coverage Ratio 1 Includes changes in allowance for loan losses 2 Goodwill impairment charge recorded on the U.S Direct Lending and Canada POS reporting units during the fourth quarter of 2022 3 Estimated fair value of share-based awards was recognized as non-cash compensation expense on a straight-line basis over the vesting period 4 Share of Katapult's U.S. GAAP net loss (income), recognized on a one quarter lag 5 Gain on the divestiture of the Legacy U.S. Direct Lending business in July 2022 6 Adjustments related to the fair value of the contingent consideration related to the acquisition of Flexiti 7 Restructuring costs resulted from U.S. and CDL store closures and related costs and certain severance payments to eliminate duplicate roles 8 Transaction costs relate to the sale of the Legacy U.S. Direct Lending business and acquisition of First Heritage in July 2022 9 Total Debt includes debt issuance costs (USD, $Millions) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Net Income Before Tax $2 $(33) $43 $(207) $(39) $(57) Exclude Credit Changes1 8 35 17 21 4 11 Exclude Interest Expense 38 42 50 55 59 66 Exclude non-recurring/non-cash items: Extinguishment or modification of debt costs — — — — — 9 Goodwill Impairment2 — — — 145 — — Amortization and Depreciation 10 9 10 8 9 9 Share-based compensation3 4 4 1 4 2 3 Loss (income) from equity method investment4 (2) 1 2 2 3 2 Gain on sale of business5 — — (68) — 2 — Change in fair value of contingent consideration6 — 4 (11) — 3 — Restructuring Costs7 1 1 1 13 10 — Transaction Costs8 — — 10 1 — — Adjusted Earnings Before Provision, Interest and Taxes (a) $62 $63 $54 $43 $53 $43 Total Debt9 $2,090 $2,236 $2,449 $2,607 $2,627 $2,773 Unrestricted Cash $60 $48 $46 $74 $55 $113 Net Debt (b) $2,030 $2,188 $2,404 $2,533 $2,572 $2,660 Net Leverage (b)/(a), annualized 8.2x 8.6x 11.1x 14.6x 12x 15.4x Interest Expense (c) $38 $42 $50 $55 $59 $66 Interest Coverage Ratio (a)/(c) 1.6x 1.5x 1.1x 0.8x 0.9x 0.7x

20 Debt Summary ($Millions, rounded) Fixed / Variable Maturity Date Effective Interest Rate Borrowing Capacity Outstanding as of 06/30/23 Corporate Debt: 1.0L Term Loan Fixed Aug-27 18.0% n/a $167 1.5L Senior Notes Fixed Aug-28 7.5% n/a $682 2.0L Senior Notes Fixed Aug-28 7.5% n/a $318 Funding Debt: Heights SPV Variable Jul-25 1-Mo SOFR + 4.71% $425.0 $387.2 First Heritage SPV Variable Jul-25 1-Mo SOFR + 4.25% $225.0 $159.5 Flexiti SPV(2,3,4) Fixed Sep-25 WA rate of 8.41% $405.2 $394.0 Flexiti Securitization(3,4) Fixed Dec-25 1-Mo CDOR + 3.59% $398.7 $398.7 Canada SPV(4) Variable Aug-26 3-Mo CDOR + 6.00% $302.9 $251.9 Canada SPV II(4) Variable Nov-25 3-Mo CDOR + 8.00% $83.3 $72.2 1 As of June 30, 2023, comprised of senior fixed rate notes and hedged variable rate debt 2 The weighted average interest rate does not include the impact of the amortization of deferred loan origination costs or debt discounts 3 Each of these facilities has interest-rate swap agreements 4 Borrowing Capacity amounts are denominated in CAD, but were converted to USD using a 06/30/23 exchange rate of 0.7573. Debt Summary Fixed vs Variable Funded Debt 69% 31% Fixed Variable

Cover Page	Aug. 03, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 03, 2023
Entity Registrant Name	CURO GROUP HOLDINGS CORP
Entity Incorporation, State or Country Code	DE
Entity File Number	001-38315
Entity Tax Identification Number	90-0934597
Entity Address, Address Line One	200 West Hubbard Street
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60654
City Area Code	312
Local Phone Number	470-2000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	CURO
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001711291
Entity Address, Address Line Two	8th Floor

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CURO CURO Group Holdings Corp