Net loss was $59 million compared to net income of $9.3 million in the prior quarter and $5.7 million in the year-ago period.
Adjusted net loss was $57.6 million compared to adjusted net income of $3.3 million in the prior quarter and $8.1 million in the year-ago period.
Loans and finance receivables grew $26 million, or 2%, sequentially and $89 million, or 7%, from a year ago to $1.3 billion reflecting growth in lines of credit and, for the comparison to 2019, the closing of the Canadian business combination in April 2019.
Gross revenue of $110.6 million was essentially flat with the prior and year-ago quarters.
Interest expense increased from the prior and year-ago quarter to $11.6 million reflecting higher debt balances to fund portfolio growth, share repurchase and increased cash-on-hand.
Net interest margin was 27.6%, down from 29.1% the prior quarter and 29.5% in the year-ago quarter primarily reflecting a lower yield on the portfolio, increased leverage due in part to growth and share repurchase, and a higher proportion of cash in earnings assets.
“In the span of several weeks, the spread of COVID-19 led to government-mandated lock downs for small businesses both in the US and globally, placing our customers under unprecedented economic stress,” said Noah Breslow, chief executive officer. “After a successful and rapid transition to remote work, we effected immediate changes to our business to preserve liquidity, support our customer base, manage our loan portfolio and reduce costs. With an uncertain timetable for the reopening of the economy, and the effectiveness of government stimulus for small businesses unclear, we will be reducing debt balances in the second quarter and focusing on managing our portfolio, delivering government stimulus to our customer base and ensuring the company has the runway to scale operations again when the economy reopens.”
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