8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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) May 8, 2017

Elevate Credit, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-37680	46-4714474
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

4150 International Plaza, Suite 300

Fort Worth, Texas 76109

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code (817) 928-1500

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-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))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of 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 May 8, 2017, Elevate Credit, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2017. The full text of the press release, along with the slide presentation to be used during the earnings call on May 9, 2017, are furnished herewith as Exhibits 99.1 and 99.2, respectively.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.	Description
99.1	Press release dated May 8, 2017.
99.2	Presentation slides for earnings call on May 9, 2017.

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.

	Elevate Credit, Inc.
Dated: May 9, 2017
	By:	/s/ Christopher Lutes
		Christopher Lutes
		Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated May 8, 2017.
99.2	Presentation slides for earnings call on May 9, 2017.

EX-99.1

ELEVATE CREDIT ANNOUNCES FIRST QUARTER 2017 RESULTS

$1.7 Million in Net Income for the first quarter of 2017

and $24.9 Million in Quarterly Adjusted EBITDA¹

FORT WORTH, TX – May 8, 2017 – Elevate Credit, Inc. (NYSE: ELVT) (“Elevate” or the “Company”), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced results for the first quarter ended March 31, 2017.

“We are pleased with our first quarter performance, which saw the Company generate net income and strong quarterly Adjusted EBITDA,” said Ken Rees, Chief Executive Officer of Elevate. “We believe these results highlight Elevate’s unique growth opportunity in serving non-prime consumers with more responsible online credit products. Elevate has generated nearly 100% compound annual revenue growth rates since 2013, and we are particularly proud that between 2013 and 2016 we have simultaneously reduced the average customer APR by over 40% while expanding margins. With our proven advanced analytics and IQ technology platform, we are well positioned to continue to grow our innovative products and help our customers improve their financial health; ultimately delivering on our promise of a ‘good today, better tomorrow’.”

First Quarter 2017 Financial Highlights

• 20% year-over-year revenue growth: Revenues totaled $156.4 million, a 19.6% increase from $130.7 million for the prior-year period.

• Nearly 40% year-over-year growth in loans receivable: Combined loans receivable – principal, were $444.5 million, a 38.6% increase from $320.7 million for the prior-year period.

• Stable credit quality: Loan loss provision was 52.9% of revenues and within our targeted range of 45%-55%. The ending combined loan loss reserve, as a percentage of combined loans receivable, was 15.7%, slightly lower than the 16.3% we reported for the prior-year period.

• Record low customer acquisition costs: The total number of new customer loans for the first quarter of 2017 was approximately 53,000 with an average customer acquisition cost of $198, compared to approximately 41,000 customer loans and an average customer acquisition cost of $235 for the prior-year period.

• Positive net income: Net income of $1.7 million, or $0.06 per pro forma diluted share, which was based on a 2.5 to 1 stock split and all preferred stock converting into common stock upon the IPO but it excludes the 14.3 million common shares issued in the IPO since this happened after quarter end.

• Continued improvement in Adjusted EBITDA margin: Adjusted EBITDA was $24.9 million and the resulting Adjusted EBITDA margin was 15.9%.

¹  Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable – principal, combined loan loss reserve and combined loans receivable are non-GAAP measures. These terms are defined elsewhere in this release. Please see the schedules appearing later in this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures.

Liquidity and Capital Resources

The Company completed its initial public offering in April 2017 by selling 14.3 million shares of its common stock for total net proceeds of approximately $81 million after deducting related offering expenses. The Company used these proceeds to pay off $15 million of convertible term notes and $45 million of sub-debt term notes, with the remainder used to pay off a substantial portion of its UK term notes and for general corporate purposes. The reduction in this debt will save the Company approximately $14 million in annual pre-tax interest expense. After the debt pay-offs discussed above, the Company’s debt-to-equity ratio is approximately 4 to 1.

As announced in early May, Elastic SPV, Ltd., which purchases loan participations in the Elastic line of credit product originated by Republic Bank & Trust Company (“Republic Bank”), increased its debt facility with Victory Park Capital from $150 million to $250 million. This is the first step in a two-step process to provide additional funding, diversified funding sources and further lower the cost of funds. The second step will involve adding another special purpose vehicle, or “SPV,” during the second quarter of 2017.

First Quarter 2017 Business Highlights

• RISE Enters Mississippi. Elevate began offering additional responsible loan opportunities to non-prime consumers in Mississippi, adding a 15^th state to those served by our RISE installment loan product. Mississippi is already served by the Elastic line of credit.

• Lower Interest Rates. The Company improved interest rates for the newest RISE customers, lowering the top APR by 6600 basis points on the RISE installment loans.

• Customers Make Progress. Elevate announced that more than 55,000 RISE customers experienced an appreciable increase to their credit scores, while more than 20,000 customers are now eligible for interest rates that are 50 percent lower than their original rate. Already, two-thirds of RISE customers are qualified for some form of discounted rate.

• Great Place to Work. Elevate was named one of the Best Workplaces in Texas by consulting firm Great Place to Work^® and Fortune, adding this recognition to its previous award as one of the country’s Best Medium Workplaces.

Financial Outlook

For the full year 2017, the Company expects total revenue of $680 million to $720 million, net income of $13 million to $19 million and Adjusted EBITDA of $95 million to $105 million.

Conference Call

The Company will host a conference call to discuss its first quarter 2017 financial results on Tuesday, May 9^th at 7:30am Central Time / 8:30am Eastern Time. Interested parties may access the conference call live over the phone by dialing 1-877-407-0792 (domestic) or 1-201-689-8263 (international) and requesting the Elevate First Quarter 2017 Earnings Conference Call. Participants are asked to dial in a few minutes prior to the call to register for the event. The conference call will also be webcast live through Elevate’s website at http://www.elevate.com/investors.

An audio replay of the conference call will be available approximately three hours after the conference call until 11:59 pm ET on May 23, 2017, and can be accessed by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international), and providing the passcode 13660205, or by accessing Elevate’s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company’s expectations, goals or intentions regarding future performance. In addition, forward-looking statements in this press release include statements regarding: the Company’s expectations regarding fiscal year 2017 revenue, net income and Adjusted EBITDA; the Company’s belief that it is well positioned to continue to grow its products and help its customers improve their financial health; the Company’s targeted loan loss provision range of 45%--55%; the expectation that the reduction in debt from the use of the initial public offering proceeds will save the Company approximately $14 million in annual pre-tax interest expense; the intention to create an additional SPV during the second quarter of 2017 as another funding source for the Elastic line of credit product; and the expectation that this additional SPV for Elastic would provide additional funding, diversified funding sources and further lower the cost of funds. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: the Company’s limited operating history in an evolving industry; new laws and regulations in the consumer lending industry in many jurisdictions that could restrict the consumer lending products and services the Company offers, impose additional compliance costs on the Company, render the Company’s current operations unprofitable or even prohibit the Company’s current operations; scrutiny by regulators and payment processors of certain online lenders’ access to the Automated Clearing House system to disburse and collect loan proceeds and repayments; a lack of sufficient debt financing at acceptable prices or disruptions in the credit markets; and other risks related to litigation, compliance and regulation. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Prospectus related to the Company’s initial public offering of common stock filed pursuant to Rule 424(b) under the Securities Act of 1933, and in the Company’s current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

About Elevate

Elevate (NYSE: ELVT) has originated $4 billion in non-prime credit to more than 1.6 million non-prime consumers to date. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The Company is committed to rewarding borrowers’ good financial behavior with features like interest rates that can go down over time, free financial training and free credit monitoring. Elevate’s suite of groundbreaking credit products includes RISE, Elastic and Sunny. For more information, please visit http://www.elevate.com.

Investor Relations:

Solebury Communications

Sloan Bohlen, (817) 928-1646

investors@elevate.com

or

Media Inquiries:

Vested

Ishviene Arora, (917) 765-8720

elevate@fullyvested.com

Elevate Credit, Inc. and Subsidiaries

Condensed Consolidated Income Statements

(Unaudited)

	Three months ended March 31,
(dollars in thousands, except share and per share amounts)	2017			2016
Revenues	$	156,367		$	130,722
Cost of sales:
Provision for loan losses		82,793			59,089
Direct marketing costs		10,488			9,606
Other cost of sales		4,108			3,583
Gross profit		58,978			58,444
Operating expenses:
Compensation and benefits		20,528			16,100
Professional services		7,576			7,249
Selling and marketing		2,478			2,505
Occupancy and equipment		3,257			2,735
Depreciation and amortization		2,608			2,633
Other		915			706
Total operating expenses		37,362			31,928
Operating income		21,616			26,516
Other income (expense):
Net interest expense		(19,246	)		(13,500	)
Foreign currency transaction gain / (loss)		568			(1,358	)
Non-operating expense		(133	)		—
Total other expense		(18,811	)		(14,858	)
Income before taxes		2,805			11,658
Income tax expense		1,137			5,866
Net income	$	1,668		$	5,792
Basic earnings per share	$	0.13		$	0.45
Diluted earnings per share	$	0.06		$	0.20
Basic weighted average shares outstanding		13,138,951			12,797,458
Diluted weighted average shares outstanding		28,735,755			28,806,423
Pro forma basic earnings per share	$	0.06		$	0.22
Pro forma diluted earnings per share	$	0.06		$	0.20
Pro forma basic weighted average shares outstanding		27,237,476			26,895,983
Pro forma diluted weighted average shares outstanding		28,735,755			28,806,423

Elevate Credit, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(dollars in thousands)	March 31, 2017			December 31, 2016
	(unaudited)			(audited)
ASSETS
Cash and cash equivalents *	$	97,231		$	53,574
Restricted cash		1,686			1,785
Loans receivable, net of allowance for loan losses of $69,798 and $77,451, respectively *		367,312			392,663
Prepaid expenses and other assets *		11,716			11,314
Receivable from CSO lenders		22,993			26,053
Receivable from payment processors*		18,789			19,105
Deferred tax assets, net		33,874			31,197
Property and equipment, net		17,601			16,159
Goodwill		16,027			16,027
Intangible assets, net		2,259			2,304
Total assets	$	589,488		$	570,181
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities *	$	29,936		$	31,390
State and other taxes payable		953			1,026
Deferred revenue		23,640			28,970
Notes payable, net *		511,265			493,478
Derivative liability		4,400			1,750
Total liabilities		570,194			556,614
STOCKHOLDERS’ EQUITY
Common stock		5			5
Convertible preferred stock; Series A		3			3
Convertible preferred stock; Series B		3			3
Accumulated other comprehensive income		1,010			1,087
Additional paid-in capital		89,627			88,854
Accumulated deficit		(71,354	)		(76,385	)
Total stockholders’ equity		19,294			13,567
Total liabilities and stockholders’ equity	$	589,488		$	570,181

* These balances include certain assets and liabilities of a variable interest entity (“VIE”) that can only be used to settle the liabilities of that VIE. All assets of the Company are pledged as security for the Company’s outstanding debt, including debt held by the VIE.

Quarterly Revenue by Product

	Three Months Ended March 31, 2017
(dollars in thousands)	US Installment(1)			US Line of Credit(2)			Total Domestic			UK(3)			Total
Average combined loans receivable - principal(4)	$	245,629		$	175,617		$	421,246		$	43,967		$	465,213
Effective APR		147	%		96	%		126	%		229	%		136	%
Finance charges	$	89,235		$	41,771		$	131,006		$	24,846		$	155,852
Other	$	156		$	359		$	515		$	0		$	515
Total revenue	$	89,391		$	42,130		$	131,521		$	24,846		$	156,367
	Three Months Ended March 31, 2016
(dollars in thousands)	US Installment(1)			US Line of Credit(2)			Total Domestic			UK(3)			Total
Average combined loans receivable - principal(4)	$	229,133		$	74,991		$	304,124		$	39,408		$	343,532
Effective APR		160	%		85	%		142	%		239	%		153	%
Finance charges	$	91,265		$	15,838		$	107,103		$	23,449		$	130,552
Other	$	33		$	137		$	170		$	0		$	170
Total revenue	$	91,298		$	15,975		$	107,273		$	23,449		$	130,722

(1) Represents loans and revenue related to our Rise product. Includes loans originated by third-party lenders through the CSO programs, which are not included in our condensed consolidated financial statements.

(2) Represents loans and revenue related to our Elastic product.

(3) Represents loans and revenue related to our Sunny product.

(4) Average combined loans receivable - principal is calculated using daily principal balances. See the ‘Non-GAAP Financial Measures’ section for a reconciliation of this non-GAAP measure to the most comparable GAAP measure.

Loan Loss Reserve by Product

	Three months ended March 31, 2017
(dollars in thousands)	US Installment(1)			US Line of Credit(2)			Total Domestic			UK(3)			Total
Combined loan loss reserve(4):
Beginning balance	$	53,336		$	19,389		$	72,725		$	9,651		$	82,376
Net charge-offs		(59,630	)		(21,375	)		(81,005	)		(10,923	)		(91,928	)
Provision for loan losses		48,708			22,073			70,781			12,012			82,793
Effect of foreign currency		—			—			—			122			122
Ending balance	$	42,414		$	20,087		$	62,501		$	10,862		$	73,363
Total combined loans receivable(4)(5)	$	244,739		$	181,077		$	425,816		$	42,846		$	468,662
Combined loan loss reserve as a percentage of ending combined loans receivable		17	%		11	%		15	%		25	%		16	%
Net charge-offs as a percentage of revenues		67	%		51	%		62	%		44	%		59	%
Provision for loan losses as a percentage of revenues		54	%		52	%		54	%		48	%		53	%
	Three months ended March 31, 2016
(dollars in thousands)	US Installment(1)			US Line of Credit(2)			Total Domestic			UK(3)			Total
Combined loan loss reserve(4):
Beginning balance	$	46,635		$	10,016		$	56,651		$	9,133		$	65,784
Net charge-offs		(50,218	)		(8,100	)		(58,318	)		(10,692	)		(69,010	)
Provision for loan losses		42,504			7,145			49,649			9,440			59,089
Effect of foreign currency		—			—			—			(271	)		(271	)
Ending balance	$	38,921		$	9,061		$	47,982		$	7,610		$	55,592
Total combined loans receivable(4)(5)	$	224,785		$	77,224		$	302,009		$	39,259		$	341,268
Combined loan loss reserve as a percentage of ending combined loans receivable		17	%		12	%		16	%		19	%		16	%
Net charge-offs as a percentage of revenues		55	%		51	%		54	%		46	%		53	%
Provision for loan losses as a percentage of revenues		47	%		45	%		46	%		40	%		45	%

(1) Represents loan loss reserve attributable to Rise for the periods ended March 31, 2017 and 2016.

(2) Represents loan loss reserve attributable to Elastic for the periods ended March 31, 2017 and 2016.

(3) Represents loan loss reserve attributable to Sunny for the periods ended March 31, 2017 and 2016.

(4) Not a financial measure prepared in accordance with GAAP. See reconciliation table accompanying this release for a reconciliation of non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP.

(5) Includes loans originated by third-party lenders through the CSO programs, which are not included in our condensed consolidated financial statements.

Customer Loan Data by Product

	Three months ended March 31, 2017
	US Installment(1)			US Line of Credit(2)			Total Domestic			UK(3)			Total
Beginning number of combined loans outstanding		121,996			89,153			211,149			78,044			289,193
New customer loans originated		12,365			20,471			32,836			20,125			52,961
Former customer loans originated		14,403			—			14,403			—			14,403
Attrition		(48,879	)		(15,461	)		(64,340	)		(22,478	)		(86,818	)
Ending number of combined loans outstanding		99,885			94,163			194,048			75,691			269,739
Customer acquisition cost	$	306		$	150		$	209		$	181		$	198
Average customer loan balance	$	2,288		$	1,852		$	2,076		$	523		$	1,648
	Three months ended March 31, 2016
	US Installment(1)			US Line of Credit(2)			Total Domestic			UK(3)			Total
Beginning number of combined loans outstanding		118,222			36,487			154,709			68,014			222,723
New customer loans originated		16,757			7,792			24,549			16,168			40,717
Former customer loans originated		17,375			45			17,420			—			17,420
Attrition		(51,883	)		(5,816	)		(57,699	)		(22,085	)		(79,784	)
Ending number of combined loans outstanding		100,471			38,508			138,979			62,097			201,076
Customer acquisition cost	$	275		$	167		$	241		$	226		$	235
Average customer loan balance	$	2,087		$	1,968		$	2,054		$	581		$	1,595

(1) Represents loan activity attributable to Rise for the periods ended March 31, 2017 and 2016.

(2) Represents loan activity attributable to Elastic for the periods ended March 31, 2017 and 2016.

(3) Represents loan activity attributable to Sunny for the periods ended March 31, 2017 and 2016.

Non-GAAP Financial Measures

This press release and the attached financial tables contain certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, combined loans receivable and combined loan loss reserve.

Adjusted EBITDA and Adjusted EBITDA margin

In addition to net income determined in accordance with GAAP, Elevate uses certain non-GAAP measures such as “Adjusted EBITDA” in assessing its operating performance. Elevate believes this non-GAAP measure serves as an appropriate measure to be used in evaluating the performance of its business.

Elevate defines Adjusted EBITDA as net income excluding the impact of income tax benefit or expense, non-operating income or expense, foreign currency transaction gain or loss associated with our UK operations, net interest expense, stock-based compensation expense and depreciation and amortization expense. Elevate defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.

Management believes that Adjusted EBITDA is a useful supplemental measure in analyzing the operating performance of the business and provides greater transparency into the results of operations of our core business. Management uses this non-GAAP financial measure frequently in its decision-making because it provides supplemental information that facilitates internal comparisons to the historical operating performance of prior periods and gives an additional indication of Elevate’s core operating performance. Elevate includes this non-GAAP financial measure in its earnings announcement in order to provide transparency to its investors and enable investors to better compare its operating performance with the operating performance of its competitors.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect expected cash capital expenditure requirements for such replacements or for new capital assets;

• Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; and

• Adjusted EBITDA does not reflect interest associated with notes payable used for funding our customer loans, for other corporate purposes or tax payments that may represent a reduction in cash available to us.

Additionally, Elevate’s definition of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

The following table presents a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to Elevate’s net income for the three months ended March 31, 2017 and 2016:

	Three months ended March 31,
(dollars in thousands)	2017			2016
Net income	$	1,668			5,792
Adjustments:
Net interest expense		19,246			13,500
Stock-based compensation		702			166
Foreign currency transaction (gain) loss		(568	)		1,358
Depreciation and amortization		2,608			2,633
Income tax expense		1,137			5,866
Non-operating expense		133			—
Adjusted EBITDA	$	24,926			29,315
Adjusted EBITDA Margin		15.9	%		22.4	%

The Company’s Adjusted EBITDA guidance does not include certain charges and costs. The adjustments in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as the impact of income tax benefit or expense, non-operating income or expense, foreign currency transaction gain or loss associated with our UK operations, net interest expense, stock-based compensation expense and depreciation and amortization expense, among others. The Company is not able to provide a reconciliation of the Company’s non-GAAP financial guidance to the corresponding GAAP measure without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.

Combined Loan Information

Elevate defines combined loans receivable – principal as loans owned by the Company plus loans originated and owned by third-party lenders pursuant to our CSO programs. In Texas and Ohio, we do not make Rise loans directly, but rather act as a Credit Services Organization (which is also known as a Credit Access Business in Texas), or, collectively, “CSO,” and the loans are originated by an unaffiliated third party. Elevate defines combined loan loss reserve as the loan loss reserve for loans owned by the Company plus the loan loss reserve for loans originated and owned by third-party lenders and guaranteed by the Company. The information presented in the tables below on a combined basis are non-GAAP measures based on a combined portfolio of loans, which includes the total amount of outstanding loans receivable that we own and that are on our condensed consolidated balance sheets plus outstanding loans receivable originated and owned by third parties that we guarantee pursuant to CSO programs in which we participate.

We believe these non-GAAP measures provide investors with important information needed to evaluate the magnitude of potential loan losses and the opportunity for revenue performance of the combined loan portfolio on an aggregate basis. We also believe that the comparison of the combined amounts from period to period is more meaningful than comparing only the amounts reflected on our condensed consolidated balance sheets since both revenues and cost of sales as reflected in our condensed consolidated financial statements are impacted by the aggregate amount of loans we own and those CSO loans we guarantee.

Our use of total combined loans and fees receivable has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• Rise CSO loans are originated and owned by a third party lender; and

• Rise CSO loans are funded by a third party lender and are not part of the VPC Facility.

As of each of the period ends indicated, the following table presents a reconciliation of:

• Loans receivable, net, Company owned (which reconciles to our condensed consolidated balance sheets included elsewhere in this press release);

• Loans receivable, net, guaranteed by the Company;

• Combined loans receivable (which we use as a non-GAAP measure); and

• Combined loan loss reserve (which we use as a non-GAAP measure).

	March 31,
(dollars in thousands)	2017			2016
Company Owned Loans:
Loans receivable – principal, current, company owned		363,336			254,607
Loans receivable – principal, past due, company owned		52,415			35,407
Loans receivable – principal, total, company owned		415,751			290,014
Loans receivable – finance charges, company owned		21,359			19,045
Loans receivable – company owned		437,110			309,059
Allowance for loan losses on loans receivable, company owned		(69,798	)		(51,296	)
Loans receivable, net, company owned		367,312			257,763
Third Party Loans Guaranteed by the Company:
Loans receivable – principal, current, guaranteed by company		26,888			28,556
Loans receivable – principal, past due, guaranteed by company		1,910			2,112
Loans receivable – principal, total, guaranteed by company1		28,798			30,668
Loans receivable – finance charges, guaranteed by company2		2,754			1,541
Loans receivable – guaranteed by company		31,552			32,209
Liability for losses on loans receivable, guaranteed by company		(3,565	)		(4,296	)
Loans receivable, net, guaranteed by company3		27,987			27,913
Combined Loans Receivable3:
Combined loans receivable – principal, current		390,224			283,163
Combined loans receivable – principal, past due		54,325			37,519
Combined loans receivable – principal		444,549			320,682
Combined loans receivable – finance charges		24,113			20,586
Combined loans receivable		468,662			341,268
Combined Loan Loss Reserve3:
Allowance for loan losses on loans receivable, company owned		(69,798	)		(51,296	)
Liability for losses on loans receivable, guaranteed by company		(3,565	)		(4,296	)
Combined loan loss reserve		(73,363	)		(55,592	)

1 Represents loans originated by third-party lenders through the CSO programs, which are not included in our condensed consolidated financial statements.

2 Represents finance charges earned by third-party lenders through the CSO programs, which are not included in our condensed consolidated financial statements.

3 Non-GAAP measure.

# # #

EX-99.2

First Quarter 2017 Earnings Call May 2017 Exhibit 99.2

Forward-Looking Statements This presentation and responses to various questions contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements present our current expectations and projections relating to our business, financial condition and results of operations, and do not refer to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “likely” and other words and terms of similar meaning. The forward-looking statements include statements regarding: our future financial performance including our outlook for full fiscal year 2017 and our perspectives on the second quarter of 2017 and our expectations regarding revenue, cost of revenue, growth rate of revenue, cost of borrowing, credit losses, marketing costs, net charge-offs, gross profit or gross margin, operating expenses, operating margins, ability to generate cash flow and ability to achieve and maintain future profitability; the availability of debt financing, funding sources and disruptions in credit markets; expectations related to our debt funding, including our expectation that we will extend the maturity of the RISE and ESPV facility to 2021 and that one RISE facility and the related lender will be replaced before the end of the second quarter of 2017, related to our RISE CSO relationships in Texas and Ohio; anticipated trends, growth rates, seasonal fluctuations and challenges in our business and in the markets in which we operate; our growth strategies and our ability to effectively manage that growth; customer demand for the our products; the cost of customer acquisition; the ability of customers to repay loans; interest rates and origination fees on loans; the impact of competition in our industry and innovation by our competitors; the efficacy and cost of our marketing efforts and relationships with marketing affiliates; continued innovation of our analytics platform and our ability to prevent security breaches, disruption in service and comparable events that could compromise the personal and confidential information held in our data systems, reduce the attractiveness of our platform or adversely impact our ability to service loans. Forward‐looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: the Company’s limited operating history in an evolving industry; new laws and regulations in the consumer lending industry in many jurisdictions that could restrict the consumer lending products and services the Company offers, impose additional compliance costs on the Company, render the Company’s current operations unprofitable or even prohibit the Company’s current operations; scrutiny by regulators and payment processors of certain online lenders’ access to the Automated Clearing House system to disburse and collect loan proceeds and repayments; a lack of sufficient debt financing at acceptable prices or disruptions in the credit markets; and other risks related to litigation, compliance and regulation. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Prospectus related to the Company’s initial public offering of common stock filed pursuant to Rule 424(b) under the Securities Act of 1933, and in the Company's current and periodic reports filed from time to time with the SEC. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements regarding risks and uncertainties that are included in our public communications. You should evaluate all forward-looking statements made in this presentation in the context of these risks and uncertainties. Neither we nor any of our respective agents, employees or advisors intend or have any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained in this presentation. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Neither we nor any other person makes any representation as to the accuracy or completeness of such data or undertakes any obligation to update such data after the date of this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. The information and opinions contained in this presentation are provided as of the date of this presentation and are subject to change without notice. This presentation has not been approved by any regulatory or supervisory agency.  

CONFIDENTIAL-DO NOT COPY Elevate is reinventing non-prime credit with online products that provide financial relief today, and help people build a brighter financial future.

109MM US non-prime1 53MM US credit invisible2 10MM UK non-prime3 US non-prime population larger than prime US and UK non-prime population >170MM people Elevate customer profile4 Prime1 34% Non-prime1 44% Credit invisible2 22% Banks not serving non-prime $142B Total reduction in non-prime credit since 20086 1 1 2 US UK Average income Attended college Own home $48K ~ 79% ~ 39% £20K ~ 58% ~ 12% Typical FICO range5 560-600 N/A Non-prime consumers need better options See Appendix for additional information and definitions.

Approval in seconds Rates that go down over time Financial wellness features Credit building features Flexible payment terms Good Today, Better Tomorrow The next generation of responsible online credit

Strong Growth 34% revenue growth YOY1 35% loans receivable growth YOY2 Stable Credit Quality In line with targets – all products Improving Margins Adjusted EBITDA margins increased from 4% to 10%3 Managed CAC Below stated targets Outsized Customer Impact 1.6 mm customers served to date ($4.0B originated) $1 billion saved over payday loans4 Elevate is a unique success story in fintech lending Elevate Goals 2016 Performance Review Adjusted EBITDA margin and combined loans receivable – principal are non-GAAP financial measures. See Appendix for a reconciliation to GAAP measures. See Appendix for additional information and definitions.

Strong Growth 20% revenue growth YOY1 39% loans receivable growth YOY2 Stable Credit Quality Continued performance in target range Improving Margins 16% Adjusted EBITDA margin ($25mm Adjusted EBITDA) 3 Net income of $1.7mm Managed CAC Record low level at $198 Outsized Customer Impact 6600 basis point reduction in top rate on Rise 55,000 Rise customers saw credit scores increase Q1 2017 continues strong performance Elevate Goals Q1 2017 Performance Highlights Adjusted EBITDA margin and combined loans receivable – principal are non-GAAP financial measures. See Appendix for a reconciliation to GAAP measures. See Appendix for additional information and definitions.

Growth in revenue and combined loans receivable-principal1 Combined loans receivable – principal is a non-GAAP financial measure. See appendix for a reconciliation to the GAAP measure. See Appendix for additional information and definitions.

Q1 2017 Performance Adjusted EBITDA margin and combined loans receivable – principal are non-GAAP financial measures. See Appendix for a reconciliation to GAAP measures. See Appendix for additional information and definitions.

Consistent and improving credit quality Cumulative loss rates as a % of originations by loan vintage Months since origination

Revenue Adjusted EBITDA1 +281% +58% +34% +20% +223% +66% Net Income / (Loss) Growth in key financial measures ($mm) Adjusted EBITDA margin is a non-GAAP financial measure. See Appendix for a reconciliation to GAAP measure. See Appendix for additional information and definitions.

Rapidly expanding margins % of Gross Revenues 2015 2016 Q1 2017 LT Target Gross Revenue 100% 100% 100% 100% Loan Loss Provision 54% 55% 53% 50% Direct Marketing and Other Cost of Sales 18% 14% 9% 10% Gross Margin 29% 31% 38% 40% Operating Expenses 25% 21% 22% 20% Adjusted EBITDA Margin1 4% 10% 16% 20% ➡ Adjusted EBITDA margin is a non-GAAP financial measure. See Appendix for a reconciliation to GAAP measure. See Appendix for additional information and definitions.

Improvements in funding Used IPO proceeds to pay down or pay off $60mm1 sub debt at ~18% COF $25mm UK facility at ~16% COF (also reduces FX risk) 1 Elastic Utilizes SPV structure $250mm facility Matures 20214 3 Rise Over $400mm in three facilities2 Six different lenders Matures 20213 2

2017 Outlook Revenue = $680MM - $720MM Net Income = $13MM-$19MM Adjusted EBITDA1 = $95MM - $105MM Exiting seasonal slow period Customer acquisition cost will increase based on growth and TV spend Net charge-offs as percent of revenue will decrease Perspective on Q2 Annual guidance Adjusted EBITDA margin is a non-GAAP financial measure. See Appendix for a reconciliation to GAAP measure. See Appendix for additional information and definitions.

CONFIDENTIAL-DO NOT COPY We believe everyone deserves a lift.

Appendix

Footnotes Page 4: 1According to an analysis of TransUnion data through the third quarter of 2014 by the Corporation for Enterprise Development 2 FICO, Expanding Credit Opportunities, July 2015 3 House of Commons Welsh Affairs Committee, The Impact of Changes Benefit in Wales, October 2013 4 Elevate analysis 2015-2016; US income and home ownership data from Elevate internal database for customers acquired in 2016; other data from self-reported customer research. Range of middle quintile of Elevate US customers (2016) According to our analysis of master pool trust data of securitizations for the five major credit card issuers, we estimate that from 2008 to 2016, revolving credit to US borrowers with FICO scores of less than 660 was reduced by approximately $142 billion Page 6: 1 2015 revenue of $434 million and 2016 revenue of $580 million. Combined loans receivable – principal at December 31, 2015 of $356 million and December 31, 2016 of $481 million. Combined loans receivable-principal is a not a financial measure prepared in accordance with GAAP. Combined loans receivable – principal represents loans owned by the company plus loans originated and owned by third-party lenders pursuant to our CSO programs. Adjusted EBITDA is not a financial measure prepared in accordance with GAAP. Adjusted EBITDA represents our net loss, adjusted to exclude: net interest expense primarily associated with notes payable under the VPC Facility and ESPV facility used to fund or purchase loans; foreign currency gains and losses associated with our UK operations; depreciation and amortization expense on fixed assets and intangible assets; adjustments to contingent consideration payable related to companies previously acquired prior to the spin-off; stock compensation expense and income taxes. See the Appendix for a reconciliation to GAAP net loss. Our products have saved our customers more than $1 billion since 2013 over what they would have paid for payday loans, which have an average APR of approximately 400% or more according to the findings by the CFPB, based on a comparison of revenues at the average effective APR of our combined loan portfolio for the years ended December 31, 2013 through 2016 compared to revenues at an APR of approximately 400%. Page 7: 1Q1 2016 revenue of $131 million and Q1 2017 revenue of $156 million. Combined loans receivable – principal at March 31, 2016 of $321 million and at March 31, 2017 of $445 million. Combined loans receivable-principal is a not a financial measure prepared in accordance with GAAP. Combined loans receivable – principal represents loans owned by the company plus loans originated and owned by third-party lenders pursuant to our CSO programs. Adjusted EBITDA is not a financial measure prepared in accordance with GAAP. Adjusted EBITDA represents our net loss, adjusted to exclude: net interest expense primarily associated with notes payable under the VPC Facility and ESPV facility used to fund or purchase loans; foreign currency gains and losses associated with our UK operations; depreciation and amortization expense on fixed assets and intangible assets; adjustments to contingent consideration payable related to companies previously acquired prior to the spin-off; stock compensation expense and income taxes. See the Appendix for a reconciliation to GAAP net loss. Page 8 Combined loans receivable-principal is a not a financial measure prepared in accordance with GAAP. Combined loans receivable – principal represents loans owned by the company plus loans originated and owned by third-party lenders pursuant to our CSO programs. For additional reconciliations, see the Prospectus related to the Company’s initial public offering, filed pursuant to Rule 424(b) under the Securities Act of 1933 on April 7, 2017. Page 9 Adjusted EBITDA is not a financial measure prepared in accordance with GAAP. Adjusted EBITDA represents our net loss, adjusted to exclude: net interest expense primarily associated with notes payable under the VPC Facility and ESPV facility used to fund or purchase loans; foreign currency gains and losses associated with our UK operations; depreciation and amortization expense on fixed assets and intangible assets; adjustments to contingent consideration payable related to companies previously acquired prior to the spin-off; stock compensation expense and income taxes. See the Appendix for a reconciliation to GAAP net loss. Combined loans receivable-principal is a not a financial measure prepared in accordance with GAAP. Combined loans receivable – principal represents loans owned by the company plus loans originated and owned by third-party lenders pursuant to our CSO programs. Page 11 Adjusted EBITDA is not a financial measure prepared in accordance with GAAP. Adjusted EBITDA represents our net loss, adjusted to exclude: net interest expense primarily associated with notes payable under the VPC Facility and ESPV facility used to fund or purchase loans; foreign currency gains and losses associated with our UK operations; depreciation and amortization expense on fixed assets and intangible assets; adjustments to contingent consideration payable related to companies previously acquired prior to the spin-off; stock compensation expense and income taxes. See the Appendix for a reconciliation to GAAP net loss.

Footnotes (continued) Page 12 Adjusted EBITDA is not a financial measure prepared in accordance with GAAP. Adjusted EBITDA represents our net loss, adjusted to exclude: net interest expense primarily associated with notes payable under the VPC Facility and ESPV facility used to fund or purchase loans; foreign currency gains and losses associated with our UK operations; depreciation and amortization expense on fixed assets and intangible assets; adjustments to contingent consideration payable related to companies previously acquired prior to the spin-off; stock compensation expense and income taxes. See the Appendix for a reconciliation to GAAP net loss. Page 13 1Includes $25mm 4th tranche term note. Includes two facilities, and two lenders, of which one facility and the related lender are expected to be replaced before the end of the second quarter 2017, related to our RISE CSO relationships in Texas and Ohio. $75mm currently outstanding, matures August 2018 but is expected to be extended to 2021. $49 million currently outstanding, matures in August 2018 but is expected to be extended to 2021. Page 14 1Adjusted EBITDA is not a financial measure prepared in accordance with GAAP. Adjusted EBITDA represents our net loss, adjusted to exclude: net interest expense primarily associated with notes payable under the VPC Facility and ESPV facility used to fund or purchase loans; foreign currency gains and losses associated with our UK operations; depreciation and amortization expense on fixed assets and intangible assets; adjustments to contingent consideration payable related to companies previously acquired prior to the spin-off; stock compensation expense and income taxes. See the Appendix for a reconciliation to GAAP net loss.

Non-GAAP financials reconciliation Adjusted EBITDA Reconciliation The Company’s Adjusted EBITDA guidance does not include certain charges and costs. The adjustments in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as the impact of income tax benefit or expense, non-operating income or expense, foreign currency transaction gain or loss associated with our UK operations, net interest expense, stock-based compensation expense and depreciation and amortization expense, among others. The Company is not able to provide a reconciliation of the Company’s non-GAAP financial guidance to the corresponding GAAP measure without unreasonable effort because of the uncertainty and variability of the nature and amount of these future charges and costs.

Combined loans reconciliation