Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill this potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Enova International (ENVA) is recommended as a cutting-edge growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 13.2%, with projected EPS growth of 27.2% this year, significantly outperforming the industry average of 10.4% [5] Group 2: Financial Metrics - Enova International has an asset utilization ratio (sales-to-total-assets ratio) of 0.52, indicating it generates $0.52 in sales for every dollar in assets, compared to the industry average of 0.26 [7] - The company's sales are expected to grow by 23.2% this year, far exceeding the industry average growth of 0.9% [7] Group 3: Earnings Estimates - The current-year earnings estimates for Enova International have been revised upward, with the Zacks Consensus Estimate increasing by 7.6% over the past month [9] - The combination of a Growth Score of A and a Zacks Rank 2 positions Enova International favorably for potential outperformance [9][10]

Core Viewpoint - Enova International, Inc. successfully issued $500 million in Senior Notes due 2029, reflecting strong investor confidence in its growth strategy and financial performance [1][3]. Group 1: Financial Details - The Senior Notes were offered at a price of 100.000% of the principal amount and will bear interest at 9.125% per annum [1]. - The net proceeds from the offering will be used for multiple purposes, including repurchasing outstanding senior notes due 2025, funding the redemption of remaining 2025 Notes, paying related fees and expenses, repaying outstanding indebtedness under the revolving credit facility, and for general corporate purposes [2]. Group 2: Company Overview - Enova is a leading financial services company that provides online lending to small businesses and consumers underserved by traditional banks, utilizing advanced analytics and machine learning [4]. - The company has served over 10.5 million customers, providing more than $56 billion in loans and financing [4].

Core Viewpoint - Enova International, Inc. has announced a new share repurchase program totaling $300 million, which will replace the existing program and is set to expire on December 31, 2025 [1][2]. Group 1: Share Repurchase Program - The new share repurchase program is authorized by the Board of Directors and aims to enhance long-term shareholder value through portfolio growth and capital returns [2]. - The existing $300 million repurchase program, which was set to expire on December 31, 2024, will be terminated and replaced by the new program [1]. - Repurchases will be conducted in accordance with applicable securities laws and may occur in the open market or through privately negotiated transactions [3]. Group 2: Company Overview - Enova is a leading financial services company that utilizes machine learning and analytics to provide online lending services to small businesses and underserved consumers [4]. - The company has served over 10.5 million customers, providing more than $56 billion in loans and financing [4].

Core Viewpoint - Enova International, Inc. has announced the early tender results for its cash tender offer for $375 million of its 8.500% Senior Notes due 2025, indicating strong participation from noteholders with approximately 92.26% of the notes tendered by the early deadline [1][3]. Tender Offer Details - The total principal amount of the notes being offered is $375 million, with $345.985 million validly tendered by the early tender payment deadline [3]. - The total consideration for each $1,000 principal amount of notes validly tendered will be $1,002.00, which includes an early tender payment of $50.00 [4]. - The early settlement date for the notes validly tendered is expected to be August 12, 2024 [3]. Consent Solicitation - Enova has received the requisite consents from noteholders for proposed amendments to the indenture governing the notes, which will eliminate most restrictive covenants and reduce the minimum notice period for redemption [5]. - The company intends to execute a supplemental indenture to effectuate these proposed amendments [5]. Timeline and Conditions - Holders have until August 26, 2024, to tender their notes, with the possibility of an extension by the company [6]. - The company's obligation to accept tenders is conditioned upon the satisfaction of certain conditions, including a financing condition [7]. Company Overview - Enova is a leading financial services company that provides online lending to underserved small businesses and consumers, having issued over $56 billion in loans to more than 10.5 million customers [12].

This combination positions Enova International well for outperformance, so growth investors may want to bet on it. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. Enova International (ENVA) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank. Here are three of the most i ...

Earnings Outlook A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area. Below, we take a look at Enova International (ENVA) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, tw ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth p ...

Core Viewpoint - Enova International, Inc. plans to offer $400 million in senior notes due 2029 to refinance existing debt and for general corporate purposes [1][2]. Group 1: Offering Details - The company intends to issue $400 million in aggregate principal amount of senior notes due 2029, which will be guaranteed by its existing and future domestic subsidiaries [1]. - The proceeds from the offering will be used for a tender offer for all outstanding 8.500% Senior Notes due 2025, including related fees and expenses [2]. Group 2: Regulatory Compliance - The notes will be offered only to "qualified institutional buyers" under Rule 144A and to certain persons outside the U.S. in compliance with Regulation S [3]. - The notes and related guarantees have not been registered under the Securities Act and cannot be sold in the U.S. without registration or an exemption [3][4].

In conjunction with the Tender Offer, the Company is also soliciting consents (the "Consent Solicitation") from the holders of the Notes for the adoption of proposed amendments (the "Proposed Amendments"), which would, among other things, (i) eliminate substantially all of the restrictive covenants and certain events of default and related provisions contained in the indenture governing the Notes and (ii) reduce the minimum required notice period for the redemption of Notes from at least 30 days to at least ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Enova International, Inc.'s unaudited consolidated financial statements as of and for the periods ended June 30, 2024, showing total assets increased to **$4.82 billion** and six-month total revenue to **$1.24 billion** [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Total assets reached **$4.82 billion** as of June 30, 2024, up from **$3.91 billion** in 2023, driven by increased loans and finance receivables, while total stockholders' equity decreased to **$1.15 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | June 30, 2023 | December 31, 2023 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $60,138 | $100,042 | $54,357 | | Loans and finance receivables at fair value | $3,939,159 | $3,092,445 | $3,629,167 | | **Total Assets** | **$4,817,091** | **$3,907,907** | **$4,585,536** | | **Liabilities & Equity** | | | | | Long-term debt | $3,194,121 | $2,297,026 | $2,943,805 | | **Total Liabilities** | **$3,669,563** | **$2,658,577** | **$3,345,353** | | **Total Stockholders' Equity** | **$1,147,528** | **$1,249,330** | **$1,240,183** | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) Total revenue for Q2 2024 increased to **$628.4 million**, with net income rising to **$53.9 million** or **$1.93 per diluted share**, and six-month net income reaching **$102.3 million** Statement of Income Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $628,436 | $499,431 | $1,238,325 | $982,687 | | **Net Revenue** | $370,191 | $299,385 | $716,057 | $585,275 | | **Income from Operations** | $145,056 | $111,596 | $275,848 | $220,864 | | **Net Income** | $53,911 | $48,145 | $102,339 | $99,068 | | **Diluted EPS** | $1.93 | $1.50 | $3.56 | $3.05 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly increased to **$709.5 million** for the six months ended June 30, 2024, while investing activities used **$850.0 million**, and financing activities provided **$35.2 million** Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $709,505 | $581,339 | | Net cash used in investing activities | ($849,950) | ($483,477) | | Net cash provided by (used in) financing activities | $35,159 | ($15,069) | | **Net (decrease) increase in cash** | **($106,134)** | **$83,261** | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, business operations as an internet-based lender, fair value accounting for loans, debt facilities, and confirm the company operates as a single reportable segment primarily in the U.S. - The company operates an **internet-based lending platform** offering unsecured loans and financing to consumers and small businesses, primarily in the U.S. and Brazil[29](index=29&type=chunk) - The entire loan and finance receivable portfolio is carried at **fair value**, determined using discounted cash flow analyses, with changes recorded in the income statement[35](index=35&type=chunk) - The company operates as a **single reportable segment**, aggregating all business components due to similar economic characteristics, products, services, and customer types[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a **25.8% increase in Q2 2024 total revenue** driven by loan portfolio growth and emphasizing proprietary technology and analytics [Business Overview and Products](index=34&type=section&id=Business%20Overview%20and%20Products) Enova provides online financial services to consumers and small businesses, leveraging **proprietary analytics and machine learning** for underwriting, with diverse product offerings primarily in the U.S. and Brazil - Enova, a technology and analytics company, extended approximately **$2.8 billion in credit** in the first six months of 2024 through its online financial services[110](index=110&type=chunk) - The company utilizes **proprietary underwriting systems** with advanced risk analytics, including machine learning and AI, with approximately **90% of analytical models** being machine learning-enabled[112](index=112&type=chunk) - Product offerings include **consumer and small business installment loans** and **lines of credit**, primarily available in the U.S. and Brazil[118](index=118&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Enova's Q2 2024 total revenue grew **25.8% to $628.4 million**, with net income increasing to **$53.9 million**, driven by higher loan balances across consumer and small business segments Q2 2024 vs Q2 2023 Performance Highlights | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $628.4M | $499.4M | 25.8% | | Net Revenue | $370.2M | $299.4M | 23.7% | | Income from Operations | $145.1M | $111.6M | 30.0% | | Net Income | $53.9M | $48.1M | 12.0% | | Diluted EPS | $1.93 | $1.50 | 28.7% | - The fair value of the loan and finance receivable portfolio grew to **$3.94 billion** as of June 30, 2024, up from **$3.09 billion** a year prior[146](index=146&type=chunk) - The delinquency rate for loans over 30 days past due decreased to **7.5%** at the end of Q2 2024 from **7.7%** at the end of Q2 2023[159](index=159&type=chunk) [Non-GAAP Financial Measures](index=44&type=section&id=Non-GAAP%20Financial%20Measures) The company presents non-GAAP measures, with Q2 2024 **Adjusted Earnings at $61.6 million** ($2.21 per share) and **Adjusted EBITDA at $162.5 million**, providing additional insight into core operating performance Reconciliation to Adjusted Earnings (in thousands, except per share) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net income | $53,911 | $48,145 | | **Adjusted earnings** | **$61,638** | **$55,270** | | Diluted earnings per share | $1.93 | $1.50 | | **Adjusted earnings per share** | **$2.21** | **$1.72** | Reconciliation to Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net income | $53,911 | $48,145 | | **Adjusted EBITDA** | **$162,529** | **$126,461** | | Adjusted EBITDA as a % of total revenue | 25.9% | 25.3% | [Liquidity and Capital Resources](index=59&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2024, Enova held **$271.3 million in cash** and **$610.8 million in total funding capacity**, with no recourse debt due until September 2025, despite **$200.8 million in share repurchases** - The company has **no recourse debt obligations due until September 2025** and believes it has sufficient liquidity for the foreseeable future[195](index=195&type=chunk) - As of July 22, 2024, the company had **$482.4 million in funding capacity** from loan securitization facilities and **$81.4 million available** under its Credit Agreement[197](index=197&type=chunk) - The company repurchased **$200.8 million of common stock** in the first six months of 2024 under its share repurchase program[200](index=200&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were **effective as of June 30, 2024**, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2024, the company's **disclosure controls and procedures are effective**[215](index=215&type=chunk) - No changes occurred during the quarter ended June 30, 2024, that materially affected the company's **internal control over financial reporting**[216](index=216&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending a **2018 lawsuit** filed by the Commonwealth of Virginia against its subsidiary, alleging violations of the Virginia Consumer Protection Act, with claims believed to be without merit - The company is defending a **lawsuit from the Commonwealth of Virginia** filed in 2018 concerning lending practices, believing the claims are without merit[85](index=85&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes from the **Risk Factors described in the Annual Report on Form 10-K** for the fiscal year ended December 31, 2023[217](index=217&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2024, the company repurchased **1,032,159 shares** at an average price of **$60.89 per share**, with approximately **$52.5 million** remaining for future repurchases Share Repurchases - Q2 2024 | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Dollar Value Remaining Under Plan (in thousands) | | :--- | :--- | :--- | :--- | | April 2024 | 308,285 | $61.33 | $95,559 | | May 2024 | 411,470 | $61.44 | $71,126 | | June 2024 | 312,404 | $59.74 | $52,464 | | **Total Q2** | **1,032,159** | **$60.89** | **$52,464** | - The Board of Directors authorized a new **$300.0 million share repurchase program** on October 24, 2023, effective through December 31, 2024[223](index=223&type=chunk)