Direct Answer
68 SEC filers are classified under the Standard Industrial Classification codes that describe the consumer finance industry, and their latest annual reports show $77.4 billion of combined revenue and a median operating margin of -110.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Consumer finance companies make personal loans, installment loans and credit cards to households, often those with limited access to bank credit. They earn higher yields but take higher credit losses and rely on market funding. The first numbers to compare across companies here are loan growth and yield, net charge-off rate and delinquency.
Key Industry Metrics
- Loan growth and yield: Increase in loans outstanding and the rate earned on them. High yields compensate for higher losses, so read both with credit results.
- Net charge-off rate: Loans written off after recoveries, as a share of average loans. Because borrowers are higher risk, it is a major driver of profit.
- Delinquency: Share of balances overdue by set periods. It leads charge-offs and signals changes in borrower stress.
- Funding cost: Rate paid for borrowed money, mostly from capital markets. It sets the margin, and market disruption can raise it quickly.
- Return on assets: Net income as a share of average assets. It shows profitability after credit costs and funding, and is compared across lenders.
Primary Macro Drivers
- Consumer income and employment: Borrowing depends on income and jobs, so employment and wages drive loan growth and repayment, shown in net charge-off rate and delinquency.
- Funding markets: These lenders rely on securitization and credit lines, so market conditions set funding cost and loan growth.
- Interest rates: Rates set funding cost and what customers can afford, affecting loan yield, margin and return on assets.
- Regulation of lending: Caps on rates, fees and collections practices can limit pricing and add costs. Watch regulatory actions and yield disclosures.
Major Risks
- Credit losses in downturns: When borrowers lose jobs, losses on unsecured loans rise quickly. Watch net charge-off rate, delinquency and reserve builds.
- Regulatory caps on rates and fees: Limits on interest or fees reduce what can be earned on riskier borrowers, narrowing products. Watch regulatory proposals and loan yield.
- Funding market access: Lenders that depend on capital markets must cut lending or pay more when markets close. Watch funding cost and facility terms.
- Fraud: Identity theft and synthetic accounts cause losses and compliance cost. Watch fraud-related charge-offs and disclosures.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Consumer Finance Filers in the SEC Record
68 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 6141, 6153, 6199. Their latest fiscal years end between 2022 and 2026, and together they reported $77.4 billion of revenue. Median revenue growth over the prior year was 10.4%. Median operating margin was -110.5% and median net margin -88.5%. Median total liabilities were 52% of total assets, and 18 of 68 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| American Express Co | $41.3 billion | 6.4% | n/a | 26.2% | FY 2025 |
| Coinbase Global, Inc. | $7.2 billion | 9.4% | 20.0% | 18.1% | FY 2025 |
| Affirm Holdings, Inc. | $3.2 billion | 38.8% | -2.7% | 1.6% | FY 2025 |
| Circle Internet Group, Inc. | $2.7 billion | 63.9% | -3.5% | -2.5% | FY 2025 |
| Bakkt, Inc. | $2.3 billion | -32.1% | -6.3% | -4.6% | FY 2025 |
| Chime Financial, Inc. | $2.2 billion | 30.7% | -47.6% | -46.2% | FY 2025 |
| Green Dot Corp | $2.1 billion | 20.7% | 0.7% | -4.8% | FY 2025 |
| Atlanticus Holdings Corp | $2.0 billion | 50.1% | n/a | 6.1% | FY 2025 |
The 8 largest of 68 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Consumer Finance guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Consumer Finance industry?
Key performance indicators for the Consumer Finance industry include: Loan growth and yield, Net charge-off rate, Delinquency, Funding cost, Return on assets. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Consumer Finance industry?
The Consumer Finance industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Consumer Finance industry?
The primary risks for Consumer Finance companies include: Credit losses in downturns, Regulatory caps on rates and fees, Funding market access, Fraud. Investors should assess each company's exposure to these factors and its track record of navigating them.