UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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 March 31, 2021 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 jurisdi ...

Financial Data and Key Metrics Changes - Revenue in Q1 2021 decreased 2% sequentially and 28% year-over-year, totaling $259 million [8][23] - Adjusted EBITDA rose 278% year-over-year to $137 million, marking a first-quarter record [8] - Adjusted EPS increased more than 8 times to $2.20, also a first-quarter record [8][43] - Total company originations were $506 million, a 7% increase from Q1 2020 [24] Business Line Data and Key Metrics Changes - Small business products represented 55% of the portfolio, with SMB originations increasing 11% sequentially to $322 million [15][25] - Revenue from SMB products increased 17% sequentially and more than tripled year-over-year to $76 million [15][23] - Consumer receivables decreased 9% sequentially and 41% year-over-year, totaling $572 million [25][26] - Consumer originations totaled $184 million, down 25% sequentially and 53% year-over-year [27] Market Data and Key Metrics Changes - U.S. retail sales jumped 9.8% in March 2021, indicating positive economic recovery [14] - Jobless claims dropped sharply to 576,000, a new low since the pandemic began [14] Company Strategy and Development Direction - The company is focusing on increasing its presence in SMB lending, anticipating a surge in demand as the economy reopens [13][15] - The integration of OnDeck is largely complete, with expected annual cost synergies of over $50 million [16][17] - The acquisition of Pangea Universal Holdings aims to enhance the company's offerings in the mobile international money transfer market [18][19] Management's Comments on Operating Environment and Future Outlook - Management expects growth in originations to continue as economic recovery accelerates [14][21] - The company remains committed to helping consumers access credit, with a strong credit quality outlook [22][40] - Management anticipates that consumer spending will increase as the economy reopens, benefiting small businesses [12][13] Other Important Information - The effective tax rate for Q1 2021 was 27%, down from 34% in Q1 2020 [42] - The company ended the quarter with $392 million in cash and marketable securities [43] - The cost of funds for the quarter was 8.6%, reflecting a slight increase from the previous quarter [44] Q&A Session Summary Question: What is the impact of PPP loans on small business demand? - Management noted that demand for small business loans rebounded quickly after the previous round of PPP, but emphasized that PPP primarily supports payroll, not inventory or rent [50] Question: Will marketing spend increase as demand rises? - Management indicated a willingness to spend more on marketing to capture demand, while maintaining discipline in spending [53][54] Question: How does the company view competition in the current environment? - Management observed that competition has decreased, particularly among storefront lenders, which have been significantly impacted by the pandemic [68][69] Question: What is the expected trend for G&A expenses in 2021? - Management expects G&A expenses to decline in absolute dollars and as a percentage of revenue throughout 2021 due to synergies from the OnDeck acquisition [62][63]

Financial Performance - Revenue increased at a compound annual growth rate of 14.0%, from $642.1 million in 2016 to $1,083.7 million in 2020[44]. - Adjusted EBITDA grew at a compound annual growth rate of 37.1%, from $117.7 million in 2016 to $415.3 million in 2020, with an adjusted EBITDA margin increase from 18.3% to 38.3%[44]. - Net income attributable to Enova International, Inc. was $377,844 thousand for 2020, compared to $36,612 thousand in 2019, indicating a significant increase[470]. - Earnings per share (EPS) for continuing operations was $11.86 for 2020, compared to $3.80 in 2019, reflecting a substantial increase of approximately 212.6%[470]. - Income from operations rose to $357,797 thousand in 2020, up from $248,210 thousand in 2019, representing a growth of approximately 44%[470]. - Net income for the year ended December 31, 2020, was $377,929 thousand, a significant increase from $36,612 thousand in 2019[475]. - Comprehensive income attributable to Enova International, Inc. for 2020 was $373,932 thousand, compared to $47,351 thousand in 2019[475]. - The company reported a gain on bargain purchase of $163,999 thousand in 2020, contributing positively to net income[470]. Market Opportunities - The U.S. consumer lending opportunity market is estimated at $69 billion, while Brazil's consumer loans market is estimated at $80 billion[41]. - The total U.S. small business loan market is estimated at $82 billion, with loans under $100,000 accounting for 60% of all small business loan growth[41]. - Approximately 22% of the population is unbanked or underbanked, with over 85% of those consumers using alternative financial service products[36]. Customer Acquisition and Marketing - Direct marketing generated approximately 52% of new consumer transactions in 2020, up from 32% in 2009[45]. - The company’s marketing strategy includes a multi-channel approach, utilizing television, digital, direct mail, and partner marketing to acquire new customers at low cost[60]. - The percentage of consumer loans sourced through direct marketing increased from approximately 32% in 2009 to 52% in 2020, indicating improved customer brand loyalty[61]. Technology and Data Analytics - The company has accumulated approximately 49 terabytes of consumer behavior data from over 53 million transactions in more than 16 years of operation[42]. - The decision engine utilizes more than 100 algorithms and over 1,000 variables, with a team of over 80 data and analytics professionals dedicated to its ongoing improvement as of December 31, 2020[53]. - The technology platforms are designed for scalability and flexibility, allowing the company to enter new markets and launch new products typically within three to six months from conception to launch[49]. Regulatory Compliance and Legal Matters - Enova's consumer loan business is subject to the federal Truth in Lending Act and Fair Credit Reporting Act, which mandate specific disclosures[88]. - The company has a commitment to compliance with various federal and state laws regarding consumer privacy and data security[96]. - The company faced a civil money penalty of $5 million from the CFPB due to issues related to loans made to active-duty military members[101]. - Enova agreed to pay a civil money penalty of $3.2 million in 2019 for failing to provide loan extensions to 308 consumers[104]. - The CFPB's Small Dollar Rule requires lenders to determine consumers' ability to repay loans before issuing them[103]. Operational Changes and Challenges - The company has altered or ceased making consumer loans in certain states due to newly introduced legislation that restricts its products and services[112]. - The company monitors proposed legislation that could impact its business operations regularly[112]. - The company faced challenges in the short-term loan industry due to increasing local regulations and restrictions[115]. Acquisition and Integration - The acquisition of On Deck Capital, Inc. was completed for a total purchase consideration of $115.7 million, with acquired loans and finance receivables recorded at a fair value of $528.6 million[456]. - The company has acquired OnDeck's proprietary data and analytics models, enhancing its ability to serve small businesses and manage risk of defaults[54]. - The acquisition of On Deck Capital, Inc. on October 13, 2020, expanded the company's financing offerings to small businesses in the U.S., Australia, and Canada[5]. Financial Position and Assets - Total assets increased to $2,108,075 thousand as of December 31, 2020, compared to $1,574,352 thousand in 2019, reflecting a growth of approximately 33.8%[463]. - Long-term debt decreased to $946,461 thousand as of December 31, 2020, down from $991,181 thousand in 2019, showing a reduction of about 4.5%[463]. - The company reported a net cash provided by operating activities of $740,871 in 2020, compared to $848,639 in 2019[1]. - Cash, cash equivalents, and restricted cash at the end of 2020 were $369,200, up from $80,964 at the end of 2019[1]. Employee and Leadership Insights - As of December 31, 2020, Enova had 1,549 employees, with 68 involved in servicing loans related to discontinued U.K. operations[82]. - Enova's leadership team has extensive experience from leading financial services companies and technology firms[84]. - The company maintains a culture of inclusion and provides resources for professional growth[83]. Accounting and Financial Reporting - The company’s internal control over financial reporting was deemed effective as of December 31, 2020, according to the independent auditor's report[448]. - The Company utilizes the fair value option for its entire loan and finance receivable portfolio starting January 1, 2020, impacting how loans are reported on the balance sheet[512]. - Marketing expenses are now fully expensed as incurred following the adoption of the fair value option on January 1, 2020, changing the accounting treatment from deferral and amortization[529].

Enova International, Inc. (NYSE:ENVA) Q4 2020 Earnings Conference Call February 4, 2021 5:00 PM ET Company Participants Monica Gould - Investor Relations David Fisher - Chief Executive Officer Steve Cunningham - Chief Financial Officer Conference Call Participants David Scharf - JMP Securities John Hecht - Jefferies John Rowan - Janney Operator Good afternoon and welcome to the Enova International Fourth Quarter and Full Year 2020 Earnings Conference Call. All participants will be listen-only mode. [Operato ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|---------------------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Third quarter revenue was $205 million, a decline of 33% year-over-year, but adjusted EBITDA rose 112% to a record $136 million, and adjusted EPS grew 223% to $2.97 [10][43] - The net revenue margin for the third quarter was 89%, driven by strong credit quality and low net charge-off rates [28][29] - Net income from continuing operations was $94 million or $3.09 per diluted share, compared to $29 million or $0.83 per diluted share in the same quarter last year [43] Business Line Data and Key Metrics Changes - Third quarter originations decreased 77% year-over-year but increased 56% sequentially, with new customer originations rising to approximately 11% of total originations [15] - The loan portfolio contracted 36% year-over-year but only 14% from the second quarter, with installment products representing 72% of the portfolio [16] - OnDeck's total originations for the quarter were $148 million, up from $66 million in the second quarter [47] Market Data and Key Metrics Changes - The company observed strong credit performance from new loans, with net charge-off rates at 4.7%, significantly improved from 15.9% in the previous quarter [29] - The percentage of total portfolio receivables past due 30 days or more declined to 3.7% from 4.5% in the previous quarter [30] Company Strategy and Development Direction - The acquisition of OnDeck is expected to enhance product differentiation and increase presence in small business lending, with a focus on providing capital to small businesses post-pandemic [17][18] - The company plans to finalize its strategy on the optimal number of products and brands to serve SMB borrowers, utilizing market tests to gauge customer needs [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of consumers and the economy, anticipating growth in originations despite ongoing COVID impacts [13][14] - The company noted that customer behavior has shifted, with subprime borrowers returning faster than near-prime borrowers [64] Other Important Information - The company ended the third quarter with $552 million in cash and marketable securities, including $490 million in unrestricted cash [44] - Total operating expenses for the third quarter were $56 million, down from $82 million in the same quarter last year [35] Q&A Session Summary Question: What is the consolidated loss rate embedded in the fair value calculation? - Management indicated that there is no specific charge-off rate provided, but delinquencies are a good indicator for future outlook [50][51] Question: How is the re-acceleration of originations for OnDeck and small business lending? - Management noted that re-acceleration is broad-based across states and marketing channels, with caution in industries heavily impacted by COVID [53][54] Question: What is the expected share count post-transaction? - The expected share count is just under 36 million shares following the transaction [57] Question: What is the outlook for revenue in Q4? - Management expects revenue to be flat to slightly lower than Q3 levels, depending on the timing and level of originations [26][60] Question: How much of the current portfolio has been underwritten post-COVID? - Approximately 25% to 30% of the portfolio has been underwritten since the onset of COVID [67]

Financial Data and Key Metrics Changes - Total second quarter revenue was $253 million, a decline of 2.5% year-over-year, while adjusted EBITDA rose 45% to $94 million and adjusted EPS increased 73% to $1.68 [17][29][40] - The loan portfolio contracted by 15% year-over-year and 29% sequentially, ending the quarter at $823 million [29][40] - The net revenue margin for the second quarter improved to 52%, driven by stabilized credit quality [30][35] Business Line Data and Key Metrics Changes - Second quarter originations declined 83% year-over-year, with new customer originations dropping to 7.4% of total, compared to an average of 37.5% over the prior four quarters [18][19] - Installment products represented 72% of the portfolio, while line of credit products accounted for 28% [19] - The U.S. near-prime product made up 59% of the portfolio, with small business representing 15% [19] Market Data and Key Metrics Changes - The percentage of total portfolio receivables past due 30 days or more declined to 4.5% from 7.5% at the end of the first quarter [33] - Customer payment rates have returned to pre-COVID levels, with 84% of CNU customers remaining in good standing after adjustments [17][36] Company Strategy and Development Direction - The company announced its intent to acquire OnDeck Capital, aiming to create a leading online financial services company with increased scale and diversified revenues [3][8] - The acquisition is expected to achieve $15 million in annual cost synergies by 2022 and be accretive to EPS in the first year post-closing [11][27] - The company plans to leverage its strong liquidity and operating capacity to expand lending as economic conditions stabilize [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business despite COVID-19 uncertainties, anticipating strong demand for loans as the economy recovers [23][24] - The company is prepared to reaccelerate originations, having built new tools and models to address the unique challenges of the current recession [25][42] - Management noted that the small business lending environment is less competitive and carries less regulatory risk compared to consumer lending [65] Other Important Information - The company ended the second quarter with $379 million in cash and marketable securities, providing a strong liquidity position [28] - Operating expenses were reduced to $42 million, or 17% of revenue, compared to $74 million, or 29% of revenue, in the same quarter of the previous year [37][38] Q&A Session Summary Question: Thoughts on the OnDeck acquisition and potential changes - Management highlighted the complementary nature of the businesses and the potential for increased profitability through scale and product offerings [45] Question: Impact of potential second stimulus on business - Management indicated that while a second stimulus could help, it is not essential for success, as credit behavior improved even after the first stimulus ended [46] Question: Profitability of the OnDeck acquisition in the first year - Management confirmed that the acquisition is expected to be accretive to adjusted EPS in the first year post-closing [48] Question: Characteristics of new customers in the current environment - New customer originations have significantly decreased, with a focus on existing customers, but management expects this to change as certainty increases [73] Question: Correlation between loan demand and geographic openings - Management acknowledged a correlation between loan demand and the stability of state economies, with demand increasing in more stable regions [74]

Announcing the Acquisition of OnDeck July 28, 2020 Use Of Forward-Looking Statements This Use of Forward-Looking Statements This document includes certain "forward-looking statements" within the meaning of, and subject to the safe harbor created by, Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical facts, including statements about Enova's managements' beliefs and expectations, are forward-looking statements. Words such as "believes", "anticipates", "estimate ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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 June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|------------------------------------------------------------------------------|-- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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 March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|------------------------------------------------------------------------------|- ...