Good day, and welcome to the CURO Holdings Q2 2022 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Tamara Schulz, CURO's Chief Accounting Officer. Please go ahead. Thank you and good afternoon, everyone. After the market closed today, CURO released its results for the Q2 2022, which are available on the investor section of our website at ir.curo.com. With me on today's call are CURO's Chief Executive Officer, Don Gayhardt, and Chief Financial Officer, Roger Dean. Before I turn the call over to Don, I'd like to note that today's discussion will contain forward-looking statements based on the business environment as we currently see it. As such, it does include certain risks and uncertainties. Please refer to our press release issued this afternoon and on our Forms 10-K and 10-Q for more information on the specific risk factors that could cause our actual results to differ materially from the projections described in today's discussion. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update or revise these statements as a result of new information or future events. In addition to U.S. GAAP reporting, we report certain financial measures that do not conform to generally accepted accounting principles. We believe these non-GAAP measures enhance the understanding of our performance. Reconciliation between these GAAP and non-GAAP measures are included in the tables found in today's press release. Before we begin, I'd like to remind you that we have provided a supplemental investor presentation that we will reference in our remarks and that you can find in the events and presentation section of our IR website. With that, I'd like to turn the call over to Don. Great. Thanks, Tamara. Good afternoon, everyone, and thank you for joining us today. The past few months have obviously been an eventful and incredibly exciting period for us as we successfully close on the M&A transactions that we announced in May. That being the sale of our legacy U.S. lending business to Community Choice Financial for $345 million and our acquisition of First Heritage Credit for $140 million. The latter was our third acquisition in slightly over a year following Heights Finance last December and Flexiti earlier in 2021. Going back to 2018, we had set strategic goals to first transition our business into longer-term, higher balance and lower rate credit products. Second, to diversify our channel offerings to point of sale and credit cards. The closings of the recent transactions, coupled with the related financing that locked in a lower cost of funding and more capacity to fund future U.S. business growth, achieved those twin strategic goals. We were especially pleased to complete the transactions given the turbulent market environment of the H1 of 2022. These transactions generated over $100 million of net excess proceeds. Thus, we currently have more than $180 million of excess liquidity to fund our business lines. U.S. direct lending, Canada direct lending, and Flexiti. Take a minute to describe each one of these business lines briefly. U.S. direct lending, which is comprised of our Heights Finance and First Heritage businesses, operates in 523 locations in 13 states and makes small, mostly sub-$2,500 and larger $2,500 or $30,000 installment loans, as well as insurance and other ancillary products. As of June 30th, on a pro forma basis, without purchase accounting adjustments, U.S. direct lending had $730 million in receivables with a gross interest yield of 47%. Including insurance and ancillary income, an annualized yield of approximately 54%. Smaller loan customers have average FICO scores of 604, and larger loan customers average 621 for the overall portfolio. I'll point out that our more recent large loan customers have average FICO scores approaching 640. Canada Direct Lending, which is comprised of our Cash Money and LendDirect brands, has 209 locations in 8 provinces, plus a very high performing internet lending channel. This business had $468 million of gross receivables as of June 30, with blended yield of approximately 52%. Just over 20% of the loan book was originated online, which is up from just over 12% pre-pandemic. Interest plus insurance and ancillary revenues produce an annualized implied yield of approximately 66%. Flexiti, our Canadian point-of-sale finance business, had $627 million of gross receivables at June 30th. About 95% were prime customers with an average FICO score of 740 and average household incomes of approximately CAD 100,000. We're working with our team at Flexiti to add more non-prime options while we continue to onboard and optimize our largest merchant partner, LFL Group, the largest home furnishings retailer in Canada. As a prime business, the Flexiti book currently yields 14.3%, comprised of interest and fees from consumers and a discount from merchant partners as it continues to rapidly grow in size. We expect this yield to become closer to 18%-19% as the pace of growth normalizes in 2023 and a larger percentage of the book is higher yielding non-prime earning assets. Taken as a whole, pro forma at June 30th, we had combined gross loans of $1.8 billion with a weighted average interest yield of approximately 46%. Approximately 53% of our U.S. portfolio had a weighted average interest rate of less than 36%, and all of our line of credit portfolios in Canada have APRs below the federal rate cap. In terms of geographic distribution, our portfolio is split 60-40 Canada-U.S., while the revenue base is roughly evenly split between the 2 countries. Setting aside all the transactions for a minute, and Roger will cover more of our numbers later, we had a very good quarter from an underlying growth perspective across all of our businesses. In Canada, our direct lending and point-of-sale lending portfolios grew 29% and 183% respectively year-over-year. Sequential loan growth was 6% for Heights, 4% for Canada direct lending, and 16% for Flexiti. From a credit perspective, our trends continue to normalize to pre-pandemic levels, and the quarter saw largely flat, and in some cases improved NCO rates and benign delinquency trends in line with what we're seeing across the industry. Where we have seen vintages or channels evidence credit performance that's not in line with our expectations, we've addressed this by selectively tightening credit, particularly in our lower credit tiers, and by increasing pricing on certain products and tiers. We've also increased loan servicing and collection capacity in both the U.S. and Canada. Our Q3 is off to a very good start, both in terms of originations and credit. We're being very disciplined on marketing and credit decisioning and are not chasing volume for volume's sake. Demand remains very good, and we are in many cases having success attracting increasingly better credit quality customers. As we noted earlier, Heights, for instance, has seen average FICO scores for new customers increase by over 20 points versus pre-pandemic levels. I'm going to broadly speak about the macroeconomic environment and external factors that are impacting our business. In both the U.S. and Canada, we are seeing overall economic conditions deteriorate from the period of COVID recovery that we saw in 2021 and early 2022. We think it's important to differentiate between the 2 countries. By and large, we've seen better overall conditions in Canada, we think mostly for 2 reasons. The first is the Canadian economy has not seen the whiplash effect from the ending of COVID-related stimulus, which was more muted there. In the U.S., our government spent in the range of 25%-28% of GDP on stimulus for individuals and businesses, whereas in Canada, the ratio is closer to 8%-10%. While many Canadian businesses benefited from increased demand from stimulus payments in 2021 and 2022, the return to normal or the COVID hangover, as some have termed it, is not nearly as impactful as it is for U.S. businesses. In many areas, we see Flexiti's merchant partners reporting sales flat to down 5% year-over-year, while in the U.S., particularly in bigger ticket items, volumes are in some cases off more than 15% year-over-year. Secondly, in Canada, the economy there benefits from about 17% of GDP from natural resources, which is about 4x the figure in the U.S. The run-up in commodities prices in the H1 of 2022 certainly contributed to better growth in the H1 of the year north of the border. We think one other factor worth mentioning is what we see in credit quality generally in Canada, which is to say like for like, it's just better. I've been lucky to have run consumer finance businesses in Canada for more than 25 years now, and I have deep experience seeing Canadian consumers who are similarly situated to U.S. consumers in terms of income and other key demographics simply demonstrate a higher propensity to pay off their obligations. Of course, Canada is not without its issues, most notably inflation and what looks to be a housing bubble, particularly in the Greater Toronto Area. The ratio of home values to household incomes has been spiking back to pre-COVID periods, and a related reduction in housing starts does have a direct impact on Flexiti's financing volumes for bigger ticket furniture and appliance merchant partners. While it's not without some concerns, we do like having Canada to help balance out some of the economic issues we're seeing in the U.S. In the U.S., we are continuing to see our customers' take-home pay increase, although negative real wages have been impacting consumers across the board in the U.S., and this has led to a fairly rapid dissipation of higher savings balances that had been accumulated during COVID. Based on our data as well as publicly available information, it does appear that this phenomenon is having a greater impact on lower-income consumers, which makes sense given the fixed nature of much of the COVID stimulus. However, overall employment data continues to look favorable. Friday's jobs report in the U.S. provided a great upside there, as well as initial jobless claims, while ticking up from COVID recovery levels, are still suggesting a relatively tight labor market, as does the number of job openings. Looking at our businesses at this point in the cycle, we certainly were happy to have traded our legacy businesses for the better credit quality Heights and First Heritage customers. Competitively, we think we're in a great spot. Both in the U.S. and in Canada, our market positions are very good, and we have a lot of durable competitive advantages relative to our peers. While we use financial technology, our direct lending businesses have been around for over 25 years and been through many cycles. We have great discipline in operating credit models, and we're going to stick to that. As I said earlier, we're not going to chase volume or growth. We've tightened some areas, and I suspect we'll do more given current trends. As we look at our businesses now, we love the 3 businesses that we have. Our new U.S. direct lending, comprised of Heights and First Heritage. Canada direct lending with our Cash Money and LendDirect brands, and Flexiti, our Canada point-of-sale business. These businesses are all very well positioned in the markets in which they operate. They have significant untapped growth and profitability opportunities and exceptional leadership. As we said when we announced the transactions in May, we put a lot of time and energy into M&A and the related financing activity. That's now in the rearview mirror, and we're excited about 100% of our efforts into running these businesses and maximizing the potential and the value of these businesses. To that end, and to ensure the best allocation of our time and capital, we've decided to close our Opt+ and Revolve Finance brand debit card and DDA products which mostly appeal to the customer base that we sold to Community Choice Financial. We also plan to refine our First Phase credit card marketing and origination plans, as that card offering was also targeted to the legacy U.S. customer base. In the near term, we plan to increase marketing of First Phase to Heights Finance small loan customers with good credit histories, as well as introduce a larger balanced card product for near-prime Heights Finance and First Heritage Credit customers likely in 2024. We're gonna focus very hard on originations and what we spend per customer and acquisition costs. We're focused on funding, we're focused on credit, and we're gonna continue to be very focused on operating expenses. There's no question in this current environment with recession fears, rising interest rates, high inflation, and potential job losses trending up, we continue to evaluate the ongoing right-sizing of our cost base, and we're being more selective on new projects and new opportunities. As I said, there's a lot of confidence in the business and leadership team. We're gonna keep investing in people and processes and technology to help our businesses continue to grow while seeing our operating expenses as a percentage of our earning asset base decline meaningfully. I'll close by commenting on the financial outlook for 2022 and 2023 that we provided on May 19th. The forward interest rate curves for CDOR and SOFR steepened dramatically during the Q2 before moderating a bit. While there are a lot of outcomes that would result in those curves being overly aggressive, some of which we're already seeing, moves of that magnitude would increase interest expense on our variable rate ABL facilities and likely steer our earnings to the lower end of the 2022 and 2023 ranges. I'll now turn the call over to Roger to review the details of our Q2 2022 results. Thanks, Don, and good afternoon. Adjusted net loss for the quarter was $11.3 million or $0.28 adjusted loss per share, compared to $0.40 adjusted diluted earnings per share in the Q2 of 2021. The primary drivers of the year-over-year decline in earnings were the loan loss provision dynamics of strong sequential loan growth and normalizing credit performance this Q2 compared to the lingering COVID-19 impacts on demand and loss rates in the Q2 of last year. Our U.S. business also returned to normal tax refund seasonality and the related traditional impact on Q1 and Q2 earnings. Interest expense also rose year over year on higher non-recourse ABL borrowings to support loan growth and additional senior note issuance to fund in part the Heights acquisition in the Q4 of 2021. Total revenues in the Q2 increased $117 million or 62% year-over-year. Heights added $74 million of revenue, and Canada point-of-sale lending contributed $24 million or 230% growth compared to the Q2 of 2021. Canada direct lending revenue rose 22.1% year-over-year. Consolidated operating expenses for the quarter increased $47 million compared to the prior year, driven primarily by the expense base that we acquired with Heights and Flexiti, along with post-pandemic normalized advertising spend. Gross loans receivable grew year-over-year by just over $1 billion or 127%, primarily driven by our acquisition of Heights in December and its strong year-to-date 2022 loan growth, which contributed $492 million of balances. Continued growth in Flexiti added $406 million in loan balances year-over-year. Canada and U.S. direct lending, excluding Heights Finance, combined gross loans receivable grew 29% and 10% respectively versus the Q2 of 2021. Since the end of last quarter, gross loans receivable grew $152 million or 9%, primarily due to growth in Canada point-of-sale lending of $85 million or 16% sequentially, and U.S. direct lending of $54 million or 8% sequentially. On the credit quality side, our credit metric trends in Q2 were consistent with what many of our peers have reported overall, with continuing trends towards orderly normalization that's still favorable to pre-pandemic run rates. Our consolidated quarterly net charge-off rates for the Q2 improved year-over-year by 60 basis points as our portfolio mix continues to shift to lower loss rate products. The loans originated by Heights and Flexiti are a bigger percentage of our overall loan portfolio. Obviously, the acquisitions have distorted the year-over-year comparisons. If we look at the year-to-date performance metrics for our continuing businesses, that is Flexiti, Canadian direct lending, and Heights combined, Q2 of 2022 net charge-off rates improved 10 basis points, and past due rates increased 100 basis points sequentially compared to Q1. Both metrics remain below comparable 2019 levels. Looking at it by business, U.S. net charge-off rates improved 617 basis points year-over-year, while past due rates increased 102 basis points to a year ago. Sequentially, U.S. net charge-offs improved by 374 basis points, while past due rates increased by 141 basis points. Both comparisons are affected by our Heights acquisition at the end of December. If we take Heights out of the numbers, U.S. net charge-off rates were 630 basis points higher year-over-year, while past due rates were 200 basis points higher. Sequentially, U.S. net charge-off rates were up 290 basis points, and the past due rate was up 90 basis points. Heights net charge-off and past due rates were up 30 basis points and 160 basis points, respectively, versus Q1. Canada Direct Lending net charge-off rates increased 150 basis points, and the past due rate was up 276 basis points compared to Q2 of last year. Sequentially, Canadian Direct Lending net charge-off rates improved 50 basis points, while past due rates increased 60 basis points. For Canada Point of Sale, we've had a very stable and consistent net charge-off and past due rates trends over the past year. You'll see in our balance sheet that the assets and liabilities of the businesses sold on July 7, 2022 were reclassified for accounting purposes as held for sale as of June 30th. The disposition and related reporting will be included in our financials next quarter. As we previously announced in July, we refinanced and expanded the existing Heights Finance non-recourse asset-backed warehouse facility, and we entered into a new non-recourse asset-backed warehouse facility to support our First Heritage Credit business, in total providing $650 million of funding capacity. Each was priced at 425 basis points over a 1-month SOFR, with a 91% advance rate on new originations and 2-year revolving periods. Additionally, the maturity of our U.S. senior revolver is extended to August 31, 2022 in order to process the impacts of the sale of the U.S. legacy business. 2 of the banks in the syndicate have processing relationships with the sold business and have elected to drop out of the facility, which is what we expected. Therefore, we expect the facility to renew a capacity of at least $40 million compared to $50 million previously. As of July 31, 2022, as Don mentioned, we had over $180 million of available liquidity, including unrestricted cash and undrawn capacity on the various ABL facilities. That $180 million includes the impact of the change to the senior revolver, by the way. In our recent meetings, our board authorized our quarterly dividend at $0.11 per share. In closing, I'd like to echo Don's comments about the transformational nature of the past 6 quarters transactions, which we're now focused on executing to their full potential. It's an exciting time at CURO as we're well-financed and positioned, thanks to our historical strengths in credit, marketing, and technology across a diversified and growing portfolio of businesses. This concludes our prepared remarks, and I'll ask the operator to begin the Q&A. We will now begin the Q&A session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Our first question will come from Moshe Orenbuch of Credit Suisse. Please go ahead. Great. Thanks. Congratulations, Don and Roger, for getting all the moving parts in sequence there. Thank you, Moshe. Sure. I guess, you know, to some degree, you know, I'm not sure we really care that much about how the legacy U.S. business ex Heights was performing, right? I mean, I think the real question is, you know, the expected performance, you know, of Heights and First Heritage as we go forward. Given, you know, given your commentary about the customer base and about the acquisitions, is there, like, you know, and the commentary that you made about, you know, kind of generally being able to, you know, choose to a slightly better customer. Can you just discuss, you know, kind of the outlook into the back half of the year? Yeah, Moshe. I'll give you some comments and what Roger can obviously fill in any details on the notes. You know, I think that just to give you a quick, you know, Heights Finance and First Heritage Credit together ended the quarter, you know, sort of about $730 million in receivables. We expect that if we kind of look at sort of the June 30 to December 31 period, so to the end of the year, we'll see growth somewhere in the across the 2 quarters. We'll see growth overall somewhere in the mid-teens. I guess it's safe, you know, on a sequential basis, it's you know, 7% a quarter somewhere in that range, right in that range. You know, decent growth. We've, as I mentioned, definitely certainly at the bottom end of the sort of the credit box there and in Canada as well. We have you know just trimmed a little bit there, raised minimum credit scores, incomes, reduced kind of credit offers, et cetera. I mean, it's not, you know, as people say, it's not a one-size-fits-all approach. We're very sort of granular about how we do it by product and by, you know, by state, by channel, et cetera. There's We feel, you know, we feel like we've got we've had good luck, as I mentioned, in attracting whether you look at sort of the smaller loan side of the Heights and First Heritage business or the larger loan side. In both cases, we're seeing kind of the credit quality of the inbound customers getting better. It gives us an opportunity to be so not only the overall originations, we're taking a little bit out of that, but we're also the balance that we're approving is better. You know, we feel like that sort of lines us up pretty good for the back half of the year. I'd say looking, you know, into 2023. I suppose for that, you know, we have opened a number of new branches and some that Heights sort of had in the pipeline when we bought them. We're slowing that down a little bit. But that's somewhat contributing to some of the growth that we're talking about there. If you look into 2023, we'd expect that those numbers, that 15, you know, mid-teens, 14, 15% growth rate would probably come off by maybe 300 basis points. Probably in 2023, you're looking at a kind of low double-digit growth in portfolio. I'm sorry. You're looking at a high single-digit growth in that portfolio. I think that, you know, we feel from a credit quality standpoint the moves we've made both on the credit box and also we've added some servicing and collection capabilities there. We're building out some late-stage capabilities. Both of those businesses have a centralized late-stage capability, which neither of them really had and are helping on the recovery side. We, you know, I think the 3.2% charge-offs are gonna improve on a like-for-like basis there, probably by 200 basis points as a result of both of those issues. You, Roger, do you have any other sort of thoughts about that? You know, I think, again, you know, I said, that's one of the things where just I shut up here. You know, I think that it's always important, I think, to look at the growth rates that are in, you know, when you're kind of comparing not just our business lines to one another, but also sort of externally. Some of the growth rates that, you know, that are out there that are being posted by some of the peers and, you know, and kind of a more broadly defined peer group are so far in excess of the numbers that I'm talking about. I think, you know, it's just a general rule with a lender that grows the fastest, has the highest credit losses, you know, as something of a rule I've always kind of lived by. I think, you know, we feel good about where we're sort of, you know, the kind of growth we're getting and the quality and kind of the disciplined growth we're getting in that business. So. I would say in general, you know, both of those businesses, Heights and First Heritage, are performing to the earnings targets that we gave out when we bought those businesses, so. Well, Roger, do you have anything else to add there? I think just a couple quick thoughts to add on. You know, I think we said, you know, when we set our outlook when we announced the transactions back in May. Don mentioned in the prepared remarks that the variable rate interest curve headwinds are probably driving those results across the board, driving us towards the lower end of the range of the outlook that we gave. If you also recall when we announced the deals, you know, we said that, look, if you break down that outlook, we said Q3 we expected to be around breakeven or a little better. Q4, I believe we said $0.26-$0.32 a share. That headwind that we're talking about if you look at the curves doesn't really hit till the Q4. I think we still feel good about that former outlook for Q3 that says that you know in fact probably maybe a little better. We feel a little better about it. I think that if you kind of break out the exit at that point you know Q3 still stands as we issued it back in May. Q4 is probably at the low end because of interest cost headwinds. As we move through next year you know again there's a lot of puts and takes but you know. I don't know if that's helpful, but that's. Yes, Roger, that's very helpful, and thanks, Don, also. Maybe just a quick follow-up. Flexiti's been, you know, had strong growth but basically, you know, probably a little soft relative to what your original expectations were. Is that more a question about the integration of the partner, or is it more about pushing, you know, pushing the non-prime through there? Like, what do you see as the, you know, the way that that gets, you know, closer to your original expectations? Yeah, I think, Masha, I think one of it is the big issue is just going to be the sales and approvals we're seeing across, you know, from our merchant partners. Again, as a reminder, we're working hard to expand and diversify the merchant base, but it's largely concentrated in furniture, appliance, electronics. It's a larger ticket, $2,500 kind of ticket items. While our biggest partner is a company called LFL Group, largest home furnishings retailer in Canada. They reported their March quarter in June. Their March quarter was off on a comp store basis, about 5%. While our numbers are going up as we're integrating them into our platform, and we'll continue to see really good growth. It was a little below our original expectations, largely just because of lower sales there. That's somewhat tied to stimulus and the removal of stimulus. They're also very levered to housing starts. I think I mentioned in the prepared remarks that housing starts are off in Canada as they are in the U.S. You know, people buying, you know, furniture, appliance, electronics for a new house or even and even rental new rentals are off as well. That'll have an impact there. The other sort of macro issue is just and this is normalizing, but credit there. You know, we expect credit over time there to be charge-offs to be 4%-5%. You know, they're running, you know, 60 basis points a quarter now. Still kind of well below where we think. Some of that's a book. You'll see the book seasoning, those will go up a little bit. I still think we're seeing customers. While it is normalizing, customers are still continuing to pay off in the promotional period, so they're not rolling into earning revolving balances. We still get the merchant discount rate, and we get some fees on that, but we aren't getting the interest earnings. That continues to be a challenge. You know, I think we're still really happy with the progress we're making. Again, onboarding a merchant like LFL, which tripled the origination base of the company, is not something that, you know, just, you know, that just doesn't fall out of the trees. Peter and his team have done a really terrific job. You know, we were just up there for our board meeting. They think really highly of the team he's assembled and what the prospects are there. It's happening a little slower than we'd like, but you know, it's still happening, and the progress is still there. I think you know, the long term there, so it's really promising. As I said, a lot of work being done to try to add some new merchants that'll diversify outside of some of the larger ticket categories. Great. Thanks. Congrats again. The next question comes from John Rowan of Janney. Please go ahead. Good afternoon, guys. Hey, John. Hey, Don, if I'm not mistaken, did you just give guidance on the charge-off rate for the Heights Finance and First Heritage Credit business combined? I just want to make sure I got it, if you did in fact say it. Yeah, yeah, we did. We said that we thought it would be. Well, we said for the back half of this year, actually I don't know if we said this earlier. The back half of this year, we would expect it to be in high single digits, low double digits, for the combined businesses. Then, in 2023, we would expect it to be in total loan growth calling the 12%-13% number for 2023. Okay. Just so I understand, because it looks like the U.S. NCO rate here for 2Q is 11%. Is that exclusive of the loans held for sale? I'm just trying to get an idea if that's based, that number, that 11% number is just Heights. John, you're looking at the chart? I was just looking at the press release. It has, you know, net charge-off rate by segment, and it shows total U.S. NCO rate of 11%. I just want to make sure, I just want to know if that number excludes the loans held for sale. No, it would include. That would be for the whole segment, including the business that was sold. Okay. By the way. All right. We only owned it for a few days, right? Yeah. Yeah. No. No. For Q2, it's the entire U.S.- For Q2, right. Yep. Okay. John, it's 11. Which makes sense because it's a quarterly rate. It's 11%. You know, the business we sold runs 80% annualized. Was running, you know, normally. That's a blend. Okay. All right. That's it for me. Thank you. The next question comes from John Hecht of Jefferies. Please go ahead. Hey, guys. Afternoon. Thanks for taking my questions. I mean, you've really diversified the business. You've got multiple channels and different geographies and then different products. I get, I guess the question would be that just given kind of where you may be focused on in terms of the credit exposure as well as the consumer usage of the product, what would you guys expect to kind of mix shift over the next few quarters in the current environment? Yeah, John, I'll take a swing at it. I think that clearly the fastest growing part of the business will be the Flexiti business, which you know, we expect to see sequentially you know, 15% growth there in the Q3 and 25% growth in the Q4. Because you know, you have seasonality. That's a sequential number, so you have seasonality. Kind of holiday shopping there. We would expect that it would be you know, still over 50% growth there in 2023. That's a full year of LFL onboarding, plus some other newer merchant partners as well as some growth in non-prime. If you look at our estimate, we would likely see an earning asset base that is in U.S. dollars potentially gets close to $3 billion by the end of 2023. Flexiti should be in the neighborhood of 60% of that number. If you kind of back it, that implies our Canadian direct lending business, we would expect that business would grow somewhere in the low double digits in 2023. Call it 10%-12%. As I mentioned earlier, the U.S. direct lending business, we would expect that business to grow high single digits, so 8-9%. If you sort of, you know, roll all those together, you can see the mix shift is, it's gonna be, you know. It kind of rank ordered. Flexiti would be the fastest growing business by a pretty wide margin. Canada direct lending is next fastest. U.S.. Direct lending is kind of the third. That will certainly shift the mix. I think we said it's, you know, we're 60/40 now Canada earning assets. We'll get to 60/40, but it's about the other. I'm just giving you a sense. The other, obviously higher yielding stuff in the U.S. From a revenue standpoint, it'll feel closer to 50/50. Yep. Okay. That's super helpful. You know, across the sectors, are you seeing, like, competitive opportunities develop just given kind of the changing backdrop and/or is it affecting customer acquisition costs in any of your markets or products? I actually think it's been. We feel like certainly in if you look at the U.S. direct lending business, I mentioned we're seeing even though we're tightening some at the bottom of a credit box, we're seeing better opportunities, the stuff we're approving is coming in at, you know, with higher FICOs and higher average incomes. Just, it's just better credit quality stuff that we're approving now. That feels better. I suspect that some of that may just be coming from some of the competitive issues. Certainly some of the really the super high growth fintech businesses out there. I think there has to be some spill-over just given how much volume that they were writing. I think, obviously we're probably seeing a little bit less of that in Canada. It seems like a little bit more of a static credit environment. But I would just you know, our market position is great there. I mean, we think that together, you know, we're probably the number one or 2 in our sector on the direct lending side. We you know, feel like that Flexiti is getting to that. We'll be in that kind of a position by the end of 2023 from a you know, from a market position and market share standpoint. You know, good share and we'll continue I think to get you know, the volumes just given the. I think our products are well positioned there, both on the direct lending side of what Flexiti has to offer since they've been adding some non-prime options to help their retailer or merchant partners drive more sales. Okay, that's very helpful. Thanks, guys. The next question comes from Bob Napoli of William Blair. Please go ahead. Hi. Good afternoon. Thank you. Hi, Bob. I've asked this question before, but I mean, it's super high growth of Flexiti. I mean, you know, it's relatively young business. You know, the profitability of that business is gonna be a big driver of where CURO's stock price goes. How confident are you in the financial model for Flexiti? I mean, you've owned it for, you know, I guess, you know, a bit over a year now, a year and a half or so. How confident are you in the profit model for Flexiti? Yeah. Bob, I mean, like I said earlier when I think Moshe asked the question, I said it's not, you know, it's not happening as quickly as we envisioned a year ago. I think there's a lot of macro there. I think from an execution standpoint, we feel great about what we're doing there. You know, we've insourced a bunch of the customer service collection operations. We're building out a much more robust kind of credit function there. Roger has been working hard with the team up there on the treasury side, and the funding side. I think the pieces are in place, I think, for that business to be very successful and very profitable over the long haul. I think, you know, between the rate pressures on one hand and the macro with just sort of overall retail, particularly bigger ticket retail being softer, it's certainly. You know, sort of, it's taking us longer to get to where we wanna be there. But I have absolute confidence that that business is. It's got the right partners. I think we're a good partner for them and a good parent for them. I think the tech side of things continues to get better. You know, I feel great about where that business is going. It's got really good leadership, not just at the top, but I think they're really built out. You know, it's not easy to sort of scale a business up and have it triple in origination volume. I think that to do that, and again, it's been. They've been doing it the right way. Credit's been good. It's a prime, you know, 740 customer, but there are plenty of examples of people that have been trying, you know, to blow out prime credit portfolios and they've, you know, performed from a credit standpoint. We feel good about where it's going. I wish we could push the accelerator a little bit faster on it, but I'm not, you know, at all disappointed about what the work that they've done and where it's gonna get to. Thank you. Then just, I mean, you've talked about tightening credit, and it's been discussed, but can you be a little more specific about where you're tightening credit? Yeah. I think that, in general. I would say it's, as I mentioned, it's probably other than I think the Flexiti prime stuff, there's been some of it in every area. I think the U.S. if I look at the U.S. direct lending business, it's been more on the. There's the historical core of that business are called Southern Finance, and they do sort of the, you know, $700-$1,200 installment loans, that are, you know, 8-15 months in duration. I think we tighten more in that business because that's a lower credit quality customer. In particular, the stuff that's over. We've also cut on the durations there, the credit offers that extend over 12 months. We've moved to reduce those. We have, you know, our U.S. card business, we've cut back there. We'll probably end up with a loan book that's 20-25% lower at the end of 2023 than we had anticipated. That's really just from a competitive standpoint. I think I've said to John Hecht, we have seen some competitive pressures in that business, and not, you know, that just the economics aren't as attractive as we thought in the beginning of the year. We're being a little more cautious about how we roll that business out. Canada direct lending, you know, new credit offers, again, lower tier, credit quality customers, or lower credit, lower offers or just hard denials. We've also moved to where we have some risk-based pricing to take, you know, to increase some pricing. A lot of that is really just more to reflect sort of cost of funds, in addition to sort of the credit stuff. Again, I don't wanna divulge, you know, a lot of competitive stuff. I'd rather not give too much detail, but it's. I think it's been. Well, it's been across the board, but done in a very sort of granular, and sort of targeted way, except for the, I'd say, the prime end of the consumer originations for now. Consumer demand for loans. I mean, with the tightening still had some pretty good growth broadly, but, you know, I mean, what are you seeing as far as consumer demand for credit? You know, it's certainly we looked at the, you know, I think the New York Fed put out their data over the weekend, and you saw a lot of, you know, kind of increases other than sort of mortgage stuff. Auto slowing down some more. Particularly on the consumer side, the unsecured side, you know, continued good growth. I think the demand continues to be good, and I think that's mostly tied to the employment markets. Obviously we saw a lot of the jobs numbers on Friday. I think it's at a point where we, you know, we feel like demand's good enough that we can still grow the business in a thoughtful, kind of disciplined way and not, you know, and while still being a little bit more selective on credit. I think, so far, that, you know, we've seen that continue this quarter. Both demand being pretty good, the quality of demand being pretty good, and, you know, credit being pretty good. Thanks. Thank you. Appreciate it. Yeah. Good. Thanks, Bob. This concludes our Q&A session. I would like to turn the conference back over to Don Gayhardt for any closing remarks. Yes, thank you, everybody, for joining. We look forward to talking to you again after our Q3 concludes. Thanks very much. The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.