Core Insights - Enova reported strong credit quality and resilience among non-prime consumers, indicating a shift towards nonbank lenders for small businesses seeking capital [1][4][8] Company Performance - Enova's second-quarter loan originations increased by 28% year-on-year and 4% sequentially, reaching $1.8 billion, with total loan and finance receivables at a record $4.3 billion [4] - Small and medium-sized business (SMB) revenue rose by 30% year-on-year and 7% sequentially to a record $326 million [5] - SMB loan originations hit a record $1.2 billion in Q2, with over 90% of small business owners expecting moderate to significant growth in the next year [6] Consumer Insights - The consolidated net charge-off ratio for the consumer portfolio decreased to 8.1% from 8.6% last quarter and 7.7% in Q2 of the previous year, reflecting solid credit quality [7] - Non-prime consumers are less affected by economic downturns due to their experience in managing financial variabilities, with a slight increase in defaults prompting tighter credit underwriting [8] Market Dynamics - The competitive landscape for small business lending is stabilizing, with fewer players in the market, which enhances brand importance [11] - Third-quarter revenue growth is projected at around 15%, although shares experienced a 3% decline at the start of trading following this announcement [9]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Enova International (ENVA) Analysis - Enova International (ENVA) has shown a price increase of 5.9% over the past four weeks, indicating growing investor interest [4] - The stock has gained 22% over the past 12 weeks, with a beta of 1.48, suggesting it moves 48% more than the market [5] - ENVA has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - ENVA has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is trading at a Price-to-Sales ratio of 0.97, suggesting it is undervalued as investors pay only 97 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides ENVA, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 strategies tailored to help investors find winning stock picks [9]

Company Performance - Enova International reported quarterly earnings of $3.23 per share, exceeding the Zacks Consensus Estimate of $2.97 per share, and up from $2.21 per share a year ago, representing an earnings surprise of +8.75% [1] - The company posted revenues of $764.04 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.73%, and compared to year-ago revenues of $628.44 million [2] - Enova International has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Stock Performance - Enova International shares have increased approximately 22.7% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the coming quarter is $2.99 on revenues of $796.49 million, and for the current fiscal year, it is $11.79 on revenues of $3.13 billion [7] Industry Outlook - The Financial - Consumer Loans industry, to which Enova International belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Enova International's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - In Q2 2025, total revenue increased by 22% year over year to $764 million, with originations rising 28% to $1.8 billion [10][22] - Adjusted EPS grew by 48% year over year to $3.23 per diluted share, reflecting efficient marketing and lower cost of funds [11][31] - The consolidated net charge-off ratio improved to 8.1%, down from 8.6% in the previous quarter and 7.7% a year ago [11][24] Business Line Data and Key Metrics Changes - Small business revenue increased by 30% year over year to a record $326 million, with originations for small businesses reaching $1.2 billion, a 35% increase [10][23] - Consumer revenue rose by 17% year over year to $428 million, with originations growing 15% to $564 million [23][31] - Small business products accounted for 65% of the loan and finance receivables portfolio, while consumer products made up 35% [10] Market Data and Key Metrics Changes - The U.S. economy added 147,000 jobs in June, with the unemployment rate falling to 4.1% and hourly wages continuing to rise, indicating a resilient labor market [12] - Small businesses are increasingly optimistic, with over 90% expecting moderate to significant growth over the next year, and 76% preferring non-bank lenders for their speed and convenience [16][17] Company Strategy and Development Direction - The company is committed to a focused growth strategy that emphasizes sustainable and profitable growth while managing risks [18][20] - The leadership transition is part of a long-term plan to ensure stability and continued success, with confidence in the new CEO and CFO to drive future growth [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic fluctuations, citing a diversified business model that mitigates risks associated with market downturns [12][15] - The company anticipates continued strong performance in the back half of 2025, with expectations for revenue growth of around 20% and adjusted EPS growth of approximately 30% for the full year [34] Other Important Information - The company has a strong liquidity position with $1.1 billion in liquidity, including $388 million in cash and marketable securities [31] - The cost of funds decreased to 8.8%, reflecting strong execution on financing transactions [31][32] Q&A Session Summary Question: Can you elaborate on the consumer portfolio and the confidence in future originations? - Management clarified that the issues observed were isolated to one of five consumer products and have since been addressed, leading to a return to normal credit performance [38][42] Question: What factors contributed to the strong performance in the small business segment? - Management noted that the small business segment has shown consistent strength, with stable credit and a favorable competitive position contributing to solid origination growth [44][46] Question: How do you view the competitive dynamics between consumer and small business segments? - Management indicated that the competitive landscape for small businesses is more stable with fewer players, while the consumer segment is more fragmented, leading to potential fluctuations [90][92] Question: How do you expect the macroeconomic environment to impact growth? - Management emphasized the importance of balancing growth and risk, noting that while macro trends are positive, the company will remain cautious in its approach to originations [78][80]

Financial Data and Key Metrics Changes - In Q2 2025, total revenue increased by 22% year over year to $764 million, with originations rising 28% to $1.8 billion [9][20][28] - Adjusted EPS grew by 48% year over year to $3.23 per diluted share, reflecting efficient marketing and lower cost of funds [10][28] - The consolidated net charge-off ratio improved to 8.1%, down from 8.6% in the previous quarter and 7.7% a year ago [10][22] Business Line Data and Key Metrics Changes - Small business revenue increased by 30% year over year to a record $326 million, with originations reaching $1.2 billion, marking a 35% year-over-year growth [9][20][21] - Consumer revenue rose by 17% year over year to $428 million, with originations growing 15% to $564 million [20][21] - Small business products accounted for 65% of the loan portfolio, while consumer products made up 35% [9] Market Data and Key Metrics Changes - The U.S. economy added 147,000 jobs in June, with the unemployment rate falling to 4.1%, indicating resilience in the labor market [11] - Small businesses are increasingly optimistic, with over 90% expecting moderate to significant growth over the next year [15] Company Strategy and Development Direction - The company is focused on sustainable and profitable growth through a diversified business model and advanced technology [17][19] - Leadership changes are part of a planned transition to ensure continued strategic direction and growth [5][6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic fluctuations, citing strong credit quality and operational adjustments [12][39] - The company anticipates revenue growth of around 20% for the full year 2025, with adjusted EPS growth of approximately 30% [32] Other Important Information - The company has a strong liquidity position with $1.1 billion in liquidity, including $388 million in cash and marketable securities [28] - The marketing expense was 19% of total revenue, slightly below expectations, indicating efficient marketing strategies [10][26] Q&A Session Summary Question: Can you elaborate on the consumer portfolio's credit issues? - Management clarified that the elevated defaults were isolated to one of five consumer products and have since been addressed through tightened credit models [34][36][39] Question: What factors contributed to the strong small business performance? - Management noted that the small business segment has shown consistent strength, with stable credit and a favorable competitive environment [40][42] Question: How do macro trends affect originations and revenue growth? - Management emphasized the importance of balancing growth and risk, stating that while macro trends are positive, the company remains cautious in its approach [78][80] Question: How stable are the fair value marks in light of delinquency fluctuations? - Management indicated that fair value marks have remained stable, reflecting the overall stability of the credit outlook [98][100] Question: What is the sensitivity of the company's debt to interest rates? - Approximately 50% of the company's debt is floating rate, primarily sensitive to SOFR [102]

Company Overview - Enova served over 13 million customers since 2004 and has made over $63.4 billion in loans since 2004[9] - Enova's 2024 revenue reached $2.7 billion[9] Financial Performance (Q2 2025) - Total company originations exceeded $1.8 billion, a 28% year-over-year increase[17] - Ending receivables totaled $4.3 billion, reflecting a 20% year-over-year growth[17] - Q2 2025 revenue was $764 million, a 22% year-over-year increase[17] - Adjusted EPS for Q2 was $3.23, a 46% year-over-year increase[17] Market and Products - Enova operates in the U.S consumer loan market which has a $256 billion total addressable market and the U.S. SMB loan market which has a $271 billion total addressable market[29] - Approximately 37% of Americans cannot cover a $400 emergency expense[25] - Enova's estimated CashNetUSA share of the Subprime market is ~1% and NetCredit share of the Near Prime market is ~2%[76] Portfolio and Risk - Enova's small business clients have a median annual revenue of $600,000 and have been in business for an average of 11.4 years[61] - Over 11% of U.S borrowers have subprime credit and over 18% have near prime credit[76]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Enova International reported strong Q2 2025 results, marking the fifth consecutive quarter of over 20% year-over-year growth in revenue, originations, and adjusted EPS [CEO and CFO Commentary](index=1&type=section&id=CEO%20and%20CFO%20Commentary) Leadership commentary highlights consistent strong growth across key financial metrics and prudent management for sustainable performance - CEO David Fisher reported over **20% year-over-year growth** in revenue, originations, and adjusted EPS for the fifth consecutive quarter, emphasizing prudent business management for sustainable and profitable growth[3](index=3&type=chunk) - CFO Steve Cunningham highlighted the strength of diversified product offerings and the team's ability to deliver strong originations growth, revenue, and profitability while maintaining solid credit performance[5](index=5&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Key financial metrics for Q2 2025 demonstrate robust growth in originations, revenue, and EPS, alongside stable credit performance | Metric | Q2 2025 Value | Q2 2024 Value | YoY Change | Source Chunks | | :-------------------------------- | :---------------- | :---------------- | :--------- | :------------ | | Originations | $1.8 billion | $1.408 billion | +28% | [6, 7, 25] | | Total Revenue | $764 million | $628 million | +22% | [6, 7] | | Diluted EPS | $2.86 | $1.93 | +48% | [6, 7] | | Adjusted EPS | $3.23 | $2.21 | +46% | [6, 7] | | Net Charge-Off Ratio | 8.1% | 7.7% | +0.4% | [6, 25] | | Net Revenue Margin | 58% | 59% | -1% | [6, 7, 25] | | 30+ Day Delinquency Ratio | 7.1% | 7.5% | -0.4% (Improvement) | [6, 25] | | Consolidated Portfolio Fair Value Premium | 115% | 115.1% | Stable | [6, 25] | | Liquidity (Cash & Marketable Securities + Available Capacity) | $1.1 billion | N/A | N/A | [6] | | Share Repurchases | $54 million | N/A | N/A | [6, 7] | | Total Combined Loans & Finance Receivables | $4.3 billion | $3.584 billion | +20% | [7, 25] | [Company Overview and Corporate Updates](index=2&type=section&id=Company%20Overview%20and%20Corporate%20Updates) This section provides an overview of Enova International's business, announces key senior leadership transitions, and details information for investor communications [About Enova](index=2&type=section&id=About%20Enova) Enova International is a leading online financial services company serving underserved small businesses and consumers with over $63 billion in financing - Enova International is a leading online financial services company serving small businesses and consumers underserved by traditional banks[10](index=10&type=chunk) - Over 20 years, Enova has provided more than **$63 billion in loans and financing** to over **13 million customers**[10](index=10&type=chunk) - The company's market-leading products are powered by world-class analytics, machine learning algorithms, and proprietary technology[10](index=10&type=chunk) [Planned Key Senior Leadership Changes](index=2&type=section&id=Planned%20Key%20Senior%20Leadership%20Changes) Enova announces key leadership changes, with David Fisher transitioning to Executive Chairman and Steve Cunningham succeeding as CEO - David Fisher, current Chairman and CEO, will transition to Executive Chairman of the Board, effective January 1, 2026, for at least two years[8](index=8&type=chunk) - Steve Cunningham, current CFO, will succeed David Fisher as CEO, effective January 1, 2026, and has immediately joined the Board of Directors[8](index=8&type=chunk) - Scott Cornelis, current Treasurer and Vice President of Finance, will succeed Steve Cunningham as CFO, effective January 1, 2026[8](index=8&type=chunk) [Conference Call and Contact Information](index=2&type=section&id=Conference%20Call%20and%20Contact%20Information) Details for the Q2 2025 earnings conference call, webcast access, and investor relations contact information are provided - Enova hosted a conference call to discuss Q2 2025 results on July 24, 2025, at 4 p.m. Central Time / 5 p.m. Eastern Time[9](index=9&type=chunk) - The live webcast and archived version are available on the Enova Investor Relations website (http://ir.enova.com)[9](index=9&type=chunk) - Investor Relations Contact: Lindsay Savarese, Office: 1-212-331-8417, Email: IR@enova.com[11](index=11&type=chunk) [GAAP Financial Statements](index=5&type=section&id=GAAP%20Financial%20Statements) This section presents Enova International's unaudited consolidated financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Presents Enova's consolidated balance sheets, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and prior periods | Assets (dollars in thousands) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------------------- | :-------------- | :---------------- | :-------------- | | Cash and cash equivalents | $55,560 | $73,910 | $60,138 | | Restricted cash | $323,883 | $248,758 | $211,167 | | Loans and finance receivables at fair value | $4,773,315 | $4,386,444 | $3,939,159 | | Total assets | $5,724,753 | $5,266,131 | $4,817,091 | | Liabilities and Stockholders' Equity (dollars in thousands) | | | | | Accounts payable and accrued expenses | $257,509 | $249,970 | $333,972 | | Long-term debt | $3,963,514 | $3,563,482 | $3,194,121 | | Total liabilities | $4,496,098 | $4,069,207 | $3,669,563 | | Total stockholders' equity | $1,228,655 | $1,196,924 | $1,147,528 | | Total liabilities and stockholders' equity | $5,724,753 | $5,266,131 | $4,817,091 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Presents Enova's consolidated statements of income, detailing revenue, expenses, and net income for the three and six months ended June 30, 2025 | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $764,043 | $628,436 | $1,509,584 | $1,238,325 | | Net Revenue | $441,458 | $370,191 | $867,640 | $716,057 | | Total Operating Expenses | $257,352 | $225,135 | $511,630 | $440,209 | | Income from Operations | $184,106 | $145,056 | $356,010 | $275,848 | | Net income | $76,149 | $53,911 | $149,094 | $102,339 | | Diluted Earnings per common share | $2.86 | $1.93 | $5.51 | $3.56 | [Condensed Consolidated Statements of Cash Flow](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Presents Enova's condensed consolidated statements of cash flow, detailing operating, investing, and financing activities for the six months ended June 30, 2025 | (dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Total cash flows provided by operating activities | $838,508 | $709,505 | | Total cash flows used in investing activities | $(1,037,826) | $(849,950) | | Cash flows provided by financing activities | $255,953 | $35,159 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $56,775 | $(106,134) | | Cash, cash equivalents and restricted cash at end of period | $379,443 | $271,305 | [Non-GAAP Financial Measures and Supplemental Data](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Supplemental%20Data) This section details Enova's non-GAAP financial measures, including explanations for their use and definitions, along with comprehensive financial and operating data and reconciliations [Explanation of Non-GAAP Financial Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) Explains the purpose and definitions of Enova's non-GAAP financial measures, including Combined Loans and Finance Receivables, Adjusted Earnings, and Adjusted EBITDA - Enova provides non-GAAP financial information to offer a more complete understanding of factors and trends affecting its business, as these measures are used by management for operational insights[13](index=13&type=chunk)[14](index=14&type=chunk) - Combined Loans and Finance Receivables is a non-GAAP measure that includes both company-owned and guaranteed loans, providing a comprehensive view of potential losses and revenue opportunities[15](index=15&type=chunk) - Adjusted Earnings Measures and Adjusted EBITDA Measures are non-GAAP metrics used to assess operating performance, facilitate comparisons, and evaluate the company's financial health by excluding certain non-core or non-cash items[16](index=16&type=chunk)[17](index=17&type=chunk) [Loans and Finance Receivables Financial and Operating Data](index=8&type=section&id=Loans%20and%20Finance%20Receivables%20Financial%20and%20Operating%20Data) Provides comprehensive financial and operating data for combined loans and finance receivables, including balances, originations, revenue, and credit performance metrics | Metric (dollars in thousands) | June 30, 2025 | June 30, 2024 | Change | | :-------------------------------------------------------------------------------- | :-------------- | :-------------- | :------- | | Ending combined loan and finance receivable principal balance | $4,157,875 | $3,436,139 | $721,736 | | Ending combined loan and finance receivable fair value balance | $4,797,092 | $3,956,443 | $840,649 | | Fair value as a % of principal | 115.4% | 115.1% | 0.3% | | Ending combined loan and finance receivable balance (incl. accrued fees/interest) | $4,318,689 | $3,584,667 | $734,022 | | Average combined loan and finance receivable balance (incl. accrued fees/interest) | $4,220,169 | $3,499,469 | $720,700 | | Installment loans as percentage of average combined loan and finance receivable balance | 44.2% | 47.7% | (3.5%) | | Line of credit accounts as percentage of average combined loan and finance receivable balance | 55.8% | 52.3% | 3.5% | | Revenue | $754,577 | $619,340 | $135,237 | | Net revenue | $434,021 | $363,360 | $70,661 | | Net revenue margin | 57.5% | 58.7% | (1.2%) | | Combined loan and finance receivable originations and purchases | $1,803,049 | $1,408,654 | $394,395 | | >30 days delinquent | $305,583 | $268,053 | $37,530 | | >30 days delinquent as a % of combined loan and finance receivable balance | 7.1% | 7.5% | (0.4%) | | Charge-offs (net of recoveries) | $342,880 | $268,386 | $74,494 | | Charge-offs (net of recoveries) as a % of average combined loan and finance receivable balance | 8.1% | 7.7% | 0.4% | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) Provides detailed reconciliations of GAAP net income and earnings per share to non-GAAP Adjusted Earnings and Adjusted EBITDA measures **Adjusted Earnings Measures (dollars in thousands, except per share data):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $76,149 | $53,911 | $149,094 | $102,339 | | Adjusted earnings | $86,052 | $61,638 | $166,791 | $117,944 | | Diluted earnings per share | $2.86 | $1.93 | $5.51 | $3.56 | | Adjusted earnings per share | $3.23 | $2.21 | $6.16 | $4.11 | **Adjusted EBITDA Measures (dollars in thousands):** | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $76,149 | $53,911 | $149,094 | $102,339 | | Adjusted EBITDA | $202,560 | $162,529 | $392,461 | $311,550 | | Total Revenue | $764,043 | $628,436 | $1,509,584 | $1,238,325 | | Adjusted EBITDA as a percentage of total revenue | 26.5% | 25.9% | 26.0% | 25.2% | [Legal Disclosures](index=3&type=section&id=Legal%20Disclosures) This section contains the standard cautionary statement regarding forward-looking statements, advising readers about inherent risks and uncertainties [Cautionary Statement Concerning Forward Looking Statements](index=3&type=section&id=Cautionary%20Statement%20Concerning%20Forward%20Looking%20Statements) Standard cautionary statement regarding forward-looking statements, highlighting risks and disclaiming obligation to update projections - The release contains forward-looking statements about Enova's business, financial condition, and prospects, reflecting management's current expectations and views[12](index=12&type=chunk) - Actual results could differ materially due to various risks and uncertainties, including those detailed in Enova's SEC filings (Form 10-K, 10-Q, 8-K)[12](index=12&type=chunk) - Enova cautions against undue reliance on these statements and disclaims any obligation to update or revise them after the release date[12](index=12&type=chunk)

Originations rose 28% and total company revenue increased 22% from the second quarter of 2024 Diluted earnings per share of $2.86 increased 48% and adjusted earnings per share1 of $3.23 rose 46% compared to the second quarter of 2024 Consolidated credit performance remained strong with a net charge-off ratio of 8.1% and net revenue margin of 58% Year-over-year improvement in the consolidated 30+ day delinquency ratio of 7.1% and stability in the consolidated portfolio fair value premium of 115% reflect a s ...

Leadership Changes - David Fisher will transition to the role of Executive Chairman effective January 1, 2026, continuing to lead the Board on company strategy [1] - Steve Cunningham, currently CFO, will become CEO effective January 1, 2026, and has joined the Board of Directors immediately [1] - Scott Cornelis, current Treasurer and VP of Finance, will succeed Cunningham as CFO effective January 1, 2026 [1] Management Insights - Fisher emphasized the leadership changes reflect strategic vision and careful planning, aiming to drive shareholder value and ensure continuity [2] - Cunningham expressed gratitude towards Fisher for his leadership and highlighted the importance of the team in executing the growth strategy [2] - Cunningham has been with Enova since 2016 and has extensive experience in financial services, having previously held significant roles at Discover Financial Services and Harley-Davidson Financial Services [2] Company Overview - Enova International is a leading online financial services company that has provided over $63 billion in loans and financing to more than 13 million customers over 20 years [4] - The company focuses on serving small businesses and consumers underserved by traditional banks, utilizing advanced analytics and machine learning [4]

Industry Overview - The Zacks Consumer Loans industry includes companies providing various loan products such as mortgages, credit card loans, and personal loans, which are crucial for generating net interest income (NII) [3] - The industry's performance is highly sensitive to the overall economic conditions and consumer sentiments, with many providers also engaging in commercial lending and asset recovery to diversify revenue sources [3] Key Influencing Factors - **Asset Quality**: Prolonged high interest rates are affecting borrowers' repayment capacity, leading to increased reserves by loan providers to mitigate rising defaults, which is deteriorating asset quality [4] - **Interest Rates & Loan Demand**: Steady interest rates have slightly improved loan demand, but consumer confidence remains low due to tariff-related uncertainties, limiting growth in net interest margin (NIM) and NII [5] - **Lending Standards**: Improved credit scores due to the removal of tax liens from credit reports have expanded the borrower pool, while relaxed lending standards are helping meet loan demand [6] Industry Performance - The Zacks Consumer Loans industry has a Zacks Industry Rank of 155, placing it in the bottom 37% of over 250 Zacks industries, indicating underperformance in the near term [7][8] - Analysts have revised the industry's earnings estimates for the current year down by 7.9%, reflecting a loss of confidence in earnings growth potential [9] Market Comparison - Over the past two years, the Zacks Consumer Loans industry has outperformed the Zacks S&P 500 composite and the Zacks Finance sector, with a collective stock increase of 68.3% compared to 39.5% and 42% respectively [11] Valuation Metrics - The industry has a trailing 12-month price-to-tangible book ratio (P/TBV) of 1.33X, above the five-year median of 1.03X, but significantly lower than the S&P 500's ratio of 13.33X [14][16] Investment Opportunities - **Capital One Financial Corporation (COF)**: Focused on consumer and commercial lending, COF is well-positioned for growth with a market cap of $141.3 billion and expected earnings growth of 10.7% and 20% for 2025 and 2026 respectively [21][20] - **Enova International, Inc. (ENVA)**: A financial technology company with a market cap of $2.94 billion, ENVA has seen a 20.7% increase in shares this year and is expected to grow earnings by 28.9% and 17.6% in 2025 and 2026 respectively [26][25]