Total revenue increased 20% from the fourth quarter of 2022 to $584 million Diluted earnings per share totaled $1.13 and adjusted earnings per share totaled $1.83 Total company combined loans and finance receivables increased 16% from the end of fourth quarter of 2022 to $3.3 billion as total company originations reached a quarterly record of $1.4 billion Continued solid credit performance and outlook with a fourth quarter net revenue margin of 56% and a sequential increase in the fair value of the consoli ...

WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-35503 Enova International, Inc. (Exact name of registrant as specified in its charter) Delaware 45-3190813 (State or other jur ...

Financial Performance - Consolidated total revenue increased by $91.4 million, or 22.4%, to $499.4 million for the three months ended June 30, 2023, compared to $408.0 million for the same period in 2022[140]. - Consolidated net revenue was $299.4 million in the current quarter, up from $264.6 million in the prior year quarter[140]. - Consolidated income from operations rose by $22.1 million, or 24.7%, to $111.6 million in the current quarter compared to $89.5 million in the prior year quarter[140]. - Consolidated net income was $48.1 million in the current quarter, down from $52.4 million in the prior year quarter[140]. - Consolidated diluted income per share was $1.50 in the current quarter, compared to $1.56 in the prior year quarter[140]. - Revenue increased by $189.0 million, or 23.8%, to $982.7 million for the six-month period ended June 30, 2023, compared to $793.7 million for the prior year[192]. - Net revenue for the current six-month period was $585.3 million, up from $533.2 million for the prior year, with a net revenue margin of 59.6% compared to 67.2%[193]. Loan and Finance Receivables - Enova International extended approximately $4.5 billion in credit to borrowers in 2022 and $2.2 billion in the first half of 2023[123]. - Loans and finance receivables revenue accounted for 98.7% of total revenue in the current quarter[141]. - The fair value of the loan and finance receivable portfolio was $3,092.4 million as of June 30, 2023, compared to $2,460.9 million as of June 30, 2022[156]. - The outstanding principal balance of the loan and finance receivables portfolio increased to $2,756.9 million as of June 30, 2023, from $2,300.7 million in the prior year[156]. - As of June 30, 2023, total loans and finance receivables amounted to $2,771,141, an increase from $2,312,529 in the previous year[158]. - The ending combined loans and finance receivables balance was $2,874,529 as of June 30, 2023, reflecting growth from $2,798,076 in the previous quarter[169]. - The ending balance of combined consumer loans and finance receivables increased by 6.6% to $1,085.7 million as of June 30, 2023, compared to $1,018.8 million at June 30, 2022, primarily due to originations outpacing repayments[172]. - The ending balance of small business loans and finance receivables increased by 30.3% to $1,788.8 million as of June 30, 2023, compared to $1,372.7 million at June 30, 2022, due to originations outpacing repayments[177]. Revenue by Segment - Revenue from the small business portfolio increased by 27.0% to $190.5 million for the three months ended June 30, 2023[153]. - The consumer portfolio revenue increased by 19.5% to $302.3 million for the same period[155]. - Revenue from consumer loans and finance receivables was $302.3 million for the current quarter, up from $253.0 million for the prior year quarter, driven by portfolio growth[174]. - Revenue from small business loans and finance receivables was $190.5 million for the current quarter, compared to $149.9 million for the prior year quarter, driven by overall portfolio growth[179]. Delinquency and Credit Performance - The delinquency rate for loans over 30 days increased to 7.7% as of June 30, 2023, up from 7.1% in the previous quarter[169]. - The percentage of loans greater than 30 days delinquent decreased to 6.8% at June 30, 2023, down from 7.1% at June 30, 2022, indicating improved credit performance[173]. - The percentage of loans greater than 30 days delinquent for small business loans rose to 8.3% at June 30, 2023, compared to 3.6% at June 30, 2022, reflecting increased delinquency rates[178]. Operating Expenses - Total operating expenses increased to $187.8 million in the current quarter from $175.1 million in the prior year quarter[141]. - Marketing expenses rose to $96.0 million in the current quarter from $91.5 million in the prior year quarter, primarily due to higher online advertising costs[181]. - Total expenses increased by $11.4 million, or 3.2%, to $364.4 million in the current six-month period compared to $353.0 million in the prior year[197]. Cash Flow and Liquidity - Net cash provided by operating activities increased by $189.2 million, or 48.2%, to $581.3 million for the six months ended June 30, 2023, compared to $392.2 million for the same period in 2022[217]. - Cash flows used in investing activities were $483.5 million for the current six-month period, a decrease from $751.3 million in the prior year[219]. - The company expects cash flows from operations and available cash balances to be sufficient to fund future operating liquidity needs[218]. Technology and Analytics - Approximately 90% of the analytical models used by Enova are machine learning-enabled, enhancing risk analytics and decision-making[125]. - The company has developed proprietary underwriting systems that utilize advanced risk analytics, including machine learning and artificial intelligence[125]. - Enova's technology platforms processed approximately 2.5 million transactions in 2022, indicating significant operational capacity[126]. Market Presence and Expansion - The company operates in 37 states in the U.S. and Brazil, providing loans and financing to consumers and small businesses[123]. - Enova's acquisition of On Deck Capital in October 2020 expanded its small business lending offerings across the U.S., Australia, and Canada[126]. - Enova's money transfer platform, acquired through Pangea, allows customers to send money from the U.S. to various countries, enhancing its service offerings[134].

Non-Prime consumers are frequently turned down by traditional banks and credit unions. Enova < 1% of Loan Balances Q2 2022 Q2 2023 12% 20% 26% 24% 18% 12% 21% 27% 24% 16% Super Prime © Enova International, Inc. 9 Compliance Customer Safety and Privacy Apply and manage account anytime and anywhere privately from desktop or mobile devices with secure systems to protect sensitive information © Enova International, Inc. © Enova International, Inc. 11 RealView™ Credit Modeling: Performance vs Standard Scoring En ...

Enova International, Inc. (NYSE:ENVA) Q2 2023 Earnings Conference Call July 25, 2023 5:00 PM ET Company Participants Lindsay Savarese – Investor Relations David Fisher – Chief Executive Officer Steve Cunningham – Chief Financial Officer Conference Call Participants David Scharf – JMP John Rowan – Janney Vincent Caintic – Stephens Alexander Villalobos – Jefferies Operator Good afternoon and welcome to the Enova International Second Quarter 2023 Earnings Conference Call. All participants will be in listen-onl ...

Revenue and Income - Consolidated total revenue increased by $97.6 million, or 25.3%, to $483.3 million for the three months ended March 31, 2023, compared to $385.7 million for the same period in 2022[132]. - Consolidated net revenue was $285.9 million, up from $268.7 million in the prior year quarter[132]. - Consolidated income from operations rose by $18.5 million, or 20.4%, to $109.3 million in the current quarter compared to $90.8 million in the prior year quarter[132]. - Consolidated net income was $50.9 million in the current quarter, slightly down from $52.4 million in the prior year quarter[132]. - Consolidated diluted income per share increased to $1.56 in the current quarter from $1.50 in the prior year quarter[132]. - Total revenue for Q1 2023 increased by $97.6 million, or 25.3%, to $483.3 million compared to $385.7 million in Q1 2022, driven by a 46.7% increase in small business portfolio revenue and a 13.1% increase in consumer portfolio revenue[144]. - Net revenue for Q1 2023 was $285.9 million, up from $268.7 million in Q1 2022, with a consolidated net revenue margin of 59.2% compared to 69.7% in the prior year quarter[145]. - Net income for Q1 2023 was $50.9 million, compared to $52.4 million in Q1 2022, with diluted earnings per share increasing to $1.56 from $1.50[139]. - Adjusted EBITDA for Q1 2023 was $125.8 million, compared to $105.6 million in Q1 2022, with an adjusted EBITDA margin of 26.0%[141]. Expenses and Financial Adjustments - Operating expenses decreased slightly to $176.6 million in Q1 2023 from $177.9 million in Q1 2022, with marketing expenses down to $79.8 million from $93.2 million[144]. - Interest expense increased to $43.3 million in Q1 2023 from $22.5 million in Q1 2022, reflecting higher borrowing costs[141]. - The company incurred $1.7 million in lease termination and cease-use costs in Q1 2023, impacting adjusted earnings[139]. - The fair value of loans and finance receivables was adjusted in response to market conditions, with management increasing discount rates in 2022 to lower loan fair values[136]. - The company continues to adjust charge-off expectations in its fair value models based on changing market conditions and internal factors[136]. - The company reported a change in fair value of $(197.4) million in Q1 2023, compared to $(117.0) million in Q1 2022[144]. - Total operating expenses decreased by $1.3 million, or 0.7%, to $176.6 million in the current quarter compared to $177.9 million in the prior year quarter[168]. - Interest expense, net increased by $20.8 million, or 92.7%, to $43.3 million in the current quarter due to an increase in the average amount of debt outstanding[171]. - The effective tax rate decreased to 22.4% in the current quarter from 23.2% in the prior year quarter due to larger excess tax benefits on stock compensation[172]. - Net income decreased by $1.5 million, or 2.9%, to $50.9 million compared to $52.4 million in the prior year quarter, primarily due to higher interest expenses[175]. Loan and Finance Receivables - Approximately $4.5 billion in credit was extended to borrowers in 2022, with about $1.1 billion extended in the first quarter of 2023[115]. - The company processed approximately 2.5 million transactions in 2022, continuing to grow its loan and finance receivable portfolios[118]. - The fair value of the loan and finance receivable portfolio was $3,003.4 million as of March 31, 2023, compared to $2,231.9 million in 2022[147]. - The outstanding principal balance of the loan and finance receivables portfolio increased to $2,700.1 million from $2,099.0 million year-over-year[147]. - The average amount outstanding per loan and finance receivable increased to $5,065 from $4,315, driven by a higher mix of small business loans[152]. - The ratio of fair value as a percentage of principal for company-owned loans was 111.2% as of March 31, 2023, up from 106.3% in the prior year[151]. - The delinquency rate for loans over 30 days increased to 7.1% in the first quarter of 2023, compared to 5.2% in the first quarter of 2022[157]. - The small business portfolio represented 64.3% of the combined loan and finance receivable portfolio at fair value as of March 31, 2023, up from 57.8% in the prior year[148]. - The ending balance of combined consumer loans and finance receivables increased 2.9% to $991.6 million as of March 31, 2023, compared to $963.4 million at the same date in 2022[160]. - The percentage of loans greater than 30 days delinquent remained flat at 7.3% as of March 31, 2023, consistent with the previous year[161]. - Charge-offs (net of recoveries) as a percentage of average combined loan balance increased to 15.2% for the current quarter, compared to 14.2% for the prior year quarter[162]. - The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 117.2% at March 31, 2023, up from 105.6% at March 31, 2022[163]. - The ending balance of small business loans and finance receivables increased 48.4% to $1,806.5 million as of March 31, 2023, compared to $1,217.6 million at the same date in 2022[165]. - The percentage of loans greater than 30 days delinquent for small business loans increased to 7.0% as of March 31, 2023, compared to 3.6% at the same date in 2022[166]. - Charge-offs (net of recoveries) as a percentage of average loan balance for small business loans increased to 4.2% for the current quarter, compared to 1.9% in the prior year quarter[166]. Cash Flow and Equity - Cash and cash equivalents increased to $288.4 million as of March 31, 2023, from $178.4 million as of December 31, 2022, with restricted cash accounting for $190.7 million[176]. - Net cash provided by operating activities increased by $128.5 million, or 83.7%, to $282.0 million in the current quarter from $153.5 million in the prior year quarter[189]. - Total stockholders' equity increased by $34.6 million to $1,220.8 million at March 31, 2023, driven primarily by net income[180]. - Cash flows used in investing activities decreased to $205.4 million from $386.5 million in the prior year quarter, due to a reduction in loan originations[192]. - Cash flows provided by financing activities were $33.6 million, driven by net borrowings under the revolving line of credit and securitization facilities[193]. - As of March 31, 2023, the company had funding capacity of $601.1 million and no recourse debt obligations due until September 2024[176]. - The weighted average interest rate on total funding debt was 6.63% as of March 31, 2023[185]. - The company had $16.7 million in common stock repurchases during the three months ended March 31, 2023[181]. - The company expects cash flows from operations and available cash balances to be sufficient to fund future operating liquidity needs[191].

Financial Data and Key Metrics Changes - Revenue for the first quarter was $483 million, a 25% increase year-over-year, while remaining flat sequentially due to typical first quarter seasonality [5][53] - Adjusted EBITDA rose 19% year-over-year and 5% sequentially to $126 million, with adjusted EPS increasing 7% year-over-year and 2% sequentially to $1.79 [5][33] - The total company ratio of net charge-offs was 8.2%, down from 8.8% in the previous quarter, indicating improved credit quality [27][48] Business Line Data and Key Metrics Changes - Consumer revenue increased 13% year-over-year to $281 million, while small business revenue surged 47% year-over-year to $194 million [25][54] - Small business originations grew 17% year-over-year to $770 million, while consumer originations were $291 million, reflecting a decrease due to tax return seasonality [24][25] - The consumer line of credit receivables and originations grew 57% and 53% year-over-year, respectively, indicating strong demand for these products [55] Market Data and Key Metrics Changes - The small business segment now represents 65% of the total portfolio, up from 56% a year ago, highlighting a strategic shift towards this market [46] - The fair value of the consumer portfolio increased to 117% of principal, reflecting a better-than-expected outlook for consumer lifetime credit losses [29] Company Strategy and Development Direction - The company is focusing on a balanced approach to growth, emphasizing shorter duration and smaller dollar line of credit products to manage credit risk effectively [7][11] - There is an ongoing effort to unlock shareholder value, with management exploring various strategic alternatives [51][96] - The company aims to grow originations by 10% to 15% for the full year 2023, maintaining a focus on balancing growth and risk [35][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the consumer market, citing strong credit metrics and solid demand despite a noisy macroeconomic environment [22][71] - The company anticipates stable credit performance and expects total company net revenue margin for Q2 2023 to be around 60% [30][64] - Management noted that the current economic environment presents opportunities for growth, particularly in the small business segment as traditional banks tighten lending [73][91] Other Important Information - The company ended the first quarter with $905 million in liquidity, including $304 million in cash and marketable securities [63] - Marketing expenses decreased as a percentage of revenue to 17% from 24% year-over-year, reflecting efficient marketing strategies [31][61] - The company repurchased 375,000 shares at a cost of approximately $17 million during the quarter, demonstrating confidence in its valuation [34] Q&A Session Summary Question: Insights into layoff trends and employment through SMB platform - Management indicated that the consumer market remains strong with healthy credit metrics, despite some fluctuations in jobless claims [38][71] Question: Attribution of improved credit performance - Management attributed improved credit metrics to effective credit management and a balanced approach to risk and growth [43][48] Question: Competitive landscape and opportunities in small business lending - Management noted that as traditional banks tighten lending, there may be opportunities for the company to attract small businesses that previously qualified for bank loans [91] Question: Funding availability and capital structure - Management confirmed strong access to funding markets and a solid liquidity position, allowing for continued growth and share repurchase activities [93][97]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-35503 Enova International, Inc. (Exact name of registrant as specified in its charter) Delaware 45-3190813 (State or other jurisdiction of incorpo ...

Enova International, Inc. (NYSE:ENVA) Q4 2022 Earnings Conference Call February 1, 2023 5:00 PM ET Company Participants Lindsay Savarese - Investor Relations David Fisher - Chief Executive Officer Steven Cunningham - Chief Financial Officer Conference Call Participants David Scharf - JMP John Hecht - Jefferies John Rowan - Janney Vincent Caintic - Stephens Operator Good day and welcome to the Enova International Fourth Quarter and Full Year 2022 Earnings Conference Call. [Operator Instructions] Please note, ...

Financial Data and Key Metrics - Revenue in Q3 2022 increased 42% YoY and 12% sequentially to $456 million [10] - Adjusted EBITDA was $115 million, and adjusted EPS was $1.74, both showing increases from Q3 2021 [10] - Net charge-offs were 8.4% in Q3, slightly higher than Q2 but well below pre-COVID levels of 13.4% in Q3 2019 [13] - Total company originations reached $1.2 billion, up 10% sequentially and 40% YoY [23] - The portfolio grew 59% YoY to just over $2.6 billion [24] Business Line Data and Key Metrics - Small business products represented 60% of the portfolio, while consumer products accounted for 40% [19] - Within consumer products, line of credit products increased to 33% of the portfolio, while installment products decreased to 67% [19] - Small business revenue increased 15% sequentially and 72% YoY to $173 million [34] - Consumer revenue increased 10% sequentially and 29% YoY to $277 million [35] Market Data and Key Metrics - Small business originations increased 75% YoY to $807 million [34] - Consumer originations were flat YoY at $396 million [35] - The company observed strong demand and low competition, with some competitors pulling back on originations [27] Company Strategy and Industry Competition - The company is focusing on shorter-term subprime line of credit products and SMB products, which have average effective terms of under a year [18] - The company is maintaining a balanced approach to growth and risk, increasing ROE targets across all products [22] - The company is leveraging its technology, analytics, and diversified product offerings to differentiate from competitors [15][16] - The company is seeing strong demand for SMB products as banks tighten credit, leading to high-quality borrowers coming to them [26] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strength of the company's technology, analytics, and team in navigating economic uncertainty [12] - The company expects strong originations in Q4, driven by strong demand and low competition [23] - Management is optimistic about the company's ability to manage credit risk, given historically high employment levels and strong wage growth [25] - The company expects total revenue for Q4 to grow sequentially but at a slower rate than Q3 [36] Other Important Information - The company ended Q3 with $769 million of liquidity, including $189 million in cash and marketable securities [51] - The company acquired 588,000 shares at a cost of approximately $20 million during Q3 [53] - The company expects marketing expenses to be in the low 20% range of revenue in the near term [48] Q&A Session Summary Question: Impact of Fed actions and inflation on credit risk [61] - Management stated that the company is not incorporating macroeconomic adjustments into its fair value calculations and is confident in its ability to manage credit risk even if unemployment rates rise [62] Question: Origination strategy and duration risk [64] - Management explained that the company is focusing on shorter-duration loans to reduce risk in an uncertain macroeconomic environment [66] Question: Yields and mix shift in consumer products [69] - Management noted that the mix shift towards higher APR loans is driving higher yields in the consumer portfolio [69] Question: Fourth-quarter margin guidance [71] - Management confirmed that the long-term margin range of 55% to 65% remains appropriate [71] Question: Competition and market dynamics [77] - Management attributed weaker competition to credit fears and liquidity crunches, with some competitors pulling back on originations [78] Question: Use cases for credit in an inflationary environment [82] - Management noted that use cases have shifted slightly towards smaller cash needs but remain consistent with historical trends [83] Question: Small business borrower health and leading indicators [89] - Management highlighted that the company segments small business lending by industry and size, avoiding sectors like construction and trucking that are currently struggling [90][91] Question: Funding needs and impact of rising rates [95] - Management stated that the company has been successful in raising new facilities with favorable terms and expects to continue accessing external financing as needed [96]