Direct Answer
4 SEC filers are classified under the Standard Industrial Classification code that describes the personal lending industry, and their latest annual reports show $6.8 billion of combined revenue and a median net margin of 6.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Personal lenders make unsecured and installment loans to consumers, often online, and fund them with deposits, capital markets or investors. Credit performance, funding cost and loan growth decide profit. The first numbers to compare across companies here are originations and loan balances, net charge-off rate and yield and net interest margin.
Key Industry Metrics
- Originations and loan balances: New unsecured and installment loans written and balances outstanding. Growth lifts income, and should be read against credit results.
- Net charge-off rate: Share of balances written off after recoveries. It is the main cost for this lending, and signals the quality of underwriting models.
- Yield and net interest margin: Interest earned on loans and the spread over funding cost. High yields compensate for expected losses, so compare yield with charge-offs.
- Funding cost: Rate paid to borrow the money lent, from deposits, capital markets or investors. It sets margins and varies with market conditions.
- Customer acquisition cost: Marketing and sales spending per new borrower. Online lenders pay for traffic, so compare it with lifetime profit per loan.
Primary Macro Drivers
- Consumer credit demand: Borrowing for debt consolidation and large purchases follows income and confidence, so credit demand moves originations and balances.
- Funding markets and securitization: Securitization and credit lines fund loans, so funding availability sets growth and margin.
- Interest rates: Rates affect what borrowers pay and the lender's funding cost, shown in yield and net interest margin.
- Underwriting models: Lenders' models decide who gets loans and at what price, so model accuracy drives loan growth and charge-offs.
Major Risks
- Credit losses: Unsecured loans are the first to suffer in downturns. Watch net charge-off rate, delinquency and provisions.
- Funding disruption: If investors or banks pull back, lenders must cut lending or pay more. Watch funding cost, facility terms and securitization spreads.
- Regulation of rates and fees: Limits on rates, fees or lending practices can reduce yield and the borrower base. Watch regulatory proposals and compliance spending.
- Competition: Banks, card issuers and other fintechs compete for the same borrowers, raising marketing cost and lowering yield. Watch customer acquisition cost.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Growth |
| Geographic Importance | U.S. |
Personal Lending Filers in the SEC Record
4 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6141. Their latest fiscal years end in 2025, and together they reported $6.8 billion of revenue. Median revenue growth over the prior year was 32.9%. Median net margin was 6.5%. Median total liabilities were 85% of total assets, and 4 of 4 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Affirm Holdings, Inc. | $3.2 billion | 38.8% | -2.7% | 1.6% | FY 2025 |
| Atlanticus Holdings Corp | $2.0 billion | 50.1% | n/a | 6.1% | FY 2025 |
| Happen, Inc. | $999 million | 26.9% | n/a | 13.6% | FY 2025 |
| Regional Management Corp. | $646 million | 9.7% | n/a | 6.9% | FY 2025 |
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 Personal Lending 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.
More in Financials
- Financials sector overview
- Personal Lines Insurance
- Payments Infrastructure
- Pet Insurance
- Payments
- Point-of-Sale Finance
- Payment Processors
- Private Banking & Trust
- Nonbank Mortgage Lenders
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Frequently Asked Questions
What are the main KPIs for the Personal Lending industry?
Key performance indicators for the Personal Lending industry include: Originations and loan balances, Net charge-off rate, Yield and net interest margin, Funding cost, Customer acquisition cost. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Personal Lending industry?
The Personal Lending 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 Personal Lending industry?
The primary risks for Personal Lending companies include: Credit losses, Funding disruption, Regulation of rates and fees, Competition. Investors should assess each company's exposure to these factors and its track record of navigating them.