Financial Performance - Consolidated total revenue increased by $135.6 million, or 22.2%, to $745.5 million for the three months ended March 31, 2025, compared to $609.9 million for the same period in 2024[119]. - Consolidated net income rose to $72.9 million in the current quarter, up from $48.4 million in the prior year quarter, reflecting a significant increase[119]. - Consolidated diluted income per share increased to $2.69 in the current quarter, compared to $1.64 in the prior year quarter[119]. - Adjusted EBITDA for the three months ended March 31, 2025, was $189.9 million, representing an increase from $149.0 million in the prior year, with an adjusted EBITDA margin of 25.5%[129]. - Revenue increased by $135.6 million, or 22.2%, to $745.5 million for the current quarter compared to $609.9 million for the prior year quarter[132]. - Net revenue for the current quarter was $426.2 million, up from $345.9 million in the prior year quarter, representing a 23.2% increase[133]. - Adjusted earnings for the three months ended March 31, 2025, were $80.7 million, compared to $56.3 million in the prior year, highlighting improved operational performance[126]. Loan and Finance Receivables - Loans and finance receivables revenue was $735.4 million, compared to $601.2 million in the prior year, indicating strong growth in this segment[120]. - The fair value of the loan and finance receivable portfolio was $4,569.8 million as of March 31, 2025, compared to $3,795.2 million as of March 31, 2024[135]. - The outstanding principal balance of the loan and finance receivables portfolio was $3,964.4 million as of March 31, 2025, up from $3,298.4 million as of March 31, 2024[135]. - The average loan and finance receivable origination amount increased to $1,721 during the current quarter from $1,675 during the prior year quarter[148]. - Total loan and finance receivable principal balance increased to $2,637.7 million in Q1 2025, up from $2,192.1 million in Q1 2024, representing a growth of 19.6%[160]. - Revenue from consumer loans and finance receivables was $430.8 million for the current quarter, an increase from $364.7 million in the prior year quarter, driven by growth in the overall portfolio, particularly line of credit products[157]. - Revenue from small business loans and finance receivables reached $304.6 million in Q1 2025, compared to $236.5 million in Q1 2024, marking an increase of 28.7%[162]. Delinquency and Charge-offs - The >30 days delinquency rate was 7.7% for the first quarter of 2025, compared to 7.5% in the fourth quarter of 2024[150]. - The percentage of loans greater than 30 days delinquent rose to 8.2% at March 31, 2025, up from 6.9% at March 31, 2024, primarily due to a higher percentage of originations to new customers[155]. - Charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance was 15.2% for the current quarter, compared to 14.9% for the prior year quarter, consistent with seasonal norms[156]. - Charge-offs (net of recoveries) remained stable at 4.7% of average loan and finance receivable balance for Q1 2025, consistent with the prior year quarter[161]. - The percentage of loans greater than 30 days delinquent improved to 7.4% in Q1 2025 from 8.8% in Q1 2024, indicating better credit performance[161]. - The fair value as a percentage of principal for small business loans was 112.0% at March 31, 2025, up from 111.7% at March 31, 2024, reflecting improved credit performance[163]. Operating Expenses and Cash Flow - Operating expenses totaled $254.3 million, up from $215.1 million in the prior year, with marketing expenses increasing to $139.3 million[120]. - Total operating expenses increased by $39.2 million, or 18.2%, to $254.3 million in Q1 2025 compared to $215.1 million in Q1 2024[164]. - Net cash provided by operating activities increased by $42.5 million, or 12.2%, to $391.1 million for the current quarter compared to $348.6 million for the prior year quarter[186]. - The increase in cash flows from operating activities was primarily driven by additional interest and fee income from growth in the loan portfolio[186]. - The company’s total cash flows provided by operating activities for the three months ended March 31, 2025, were $391.1 million, compared to $348.6 million for the same period in 2024[185]. Regulatory and Compliance - The company agreed to pay a civil money penalty of $15 million as part of a Consent Order with the Consumer Financial Protection Bureau (CFPB) related to payment processing errors[113]. - The company continues to monitor litigation and regulatory changes related to the CFPB's Section 1071 rule, which may impact small business loan processes[117]. - The EU's Pillar Two Directive, establishing a minimum effective tax rate of 15%, is set to take effect in 2024 and 2025, with potential implications for the company's tax strategy[118]. Technology and Analytics - Approximately 90% of the analytical models used by the company are machine learning-enabled, enhancing its underwriting systems[105]. - The company’s proprietary technology and analytics allow for quick evaluation and funding of loans, contributing to customer satisfaction and loyalty[104]. Geographic Expansion - The company operates in all 50 states and Washington D.C. in the United States, and has expanded its services to Brazil since 2014[115]. - The company plans to continue investing in and expanding its financial services program in Brazil[115].

Financial Data and Key Metrics Changes - The company reported a revenue of $746 million for Q1 2025, representing a 22% increase year over year and a 2% increase sequentially [9][18] - Adjusted EPS increased by 56% year over year to $2.98 per diluted share [28] - Total company originations rose 26% year over year to $1.7 billion [9][18] - Combined loan and finance receivables increased 20% year over year to a record $4.1 billion [9][18] Business Line Data and Key Metrics Changes - Small business revenue increased by 29% year over year to $305 million, while consumer revenue increased by 18% to $431 million [10][19] - Small business originations rose 27% year over year to $1.2 billion, and consumer originations grew by 22% to $578 million [19] - Small business products represented 65% of the total portfolio, while consumer products accounted for 35% [9] Market Data and Key Metrics Changes - The consolidated net charge-off ratio for the quarter declined to 8.6% from 8.9% in the previous quarter, indicating stable credit performance [11][20] - The U.S. added 228,000 jobs in March, reflecting a resilient labor market that benefits the company's customer base [12] Company Strategy and Development Direction - The company remains committed to a balanced approach that has led to predictable outcomes and a strong track record of consistency [8] - The focus is on helping hardworking individuals access fast, trustworthy credit while ensuring sustainable and profitable growth [8][16] - The company plans to continue investing in its business and share repurchases to drive long-term shareholder value [17][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate various operating environments despite potential impacts from government tariff policies [6][16] - The company expects revenue growth for the full year 2025 to be slightly faster than originations growth, with adjusted EPS growth of at least 25% [30] Other Important Information - The effective tax rate for Q1 was 20%, down from 25% in the previous year, driven by tax benefits on stock compensation [27] - The company ended Q1 with $1.1 billion in liquidity, providing financial flexibility [26] Q&A Session Summary Question: Impact of tariffs and inflation on small business loan demand - Management noted no significant changes in application volumes related to tariff discussions, indicating demand follows typical seasonal patterns [32][34] Question: Payment frequency for consumer and SMB loans - Most loans are structured with weekly or biweekly payment frequencies, allowing for quick performance assessments [35] Question: Outlook for second quarter interest expense - The CFO indicated that funding costs are expected to remain steady, with only slight changes anticipated [38] Question: Fair value premiums and credit performance - Fair value premiums are sensitive to lifetime credit performance, with stable expectations for the current environment [44] Question: Expectations for small business credit performance - Management expects small business credit performance to remain stable, similar to historical trends observed during past recessions [55][56]

[Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Summary) Enova reported strong Q1 2025 results, with **revenue increasing 22% to $746 million** and **diluted EPS growing 64% to $2.69**, reflecting solid demand and credit quality - CEO David Fisher emphasized that **solid demand and stable credit quality** reflect strong customer segments, expressing confidence in delivering profitable growth amid economic volatility[3](index=3&type=chunk) Q1 2025 Key Performance Indicators (YoY) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $746 million | $610 million | +22% | | Originations | $1.7 billion | $1.38 billion | +26% | | Net Income | $73 million | $48 million | +51% | | Diluted EPS | $2.69 | $1.64 | +64% | | Adjusted EPS¹ | $2.98 | $1.91 | +56% | | Adjusted EBITDA¹ | $190 million | $149 million | +27% | | Net Charge-off Ratio | 8.6% | 8.5% | Stable | - Credit performance remained strong, with a **stable net revenue margin of 57%** and a **stable consolidated portfolio fair value premium of 115%**, while the **30+ day delinquency ratio improved to 7.7%** year-over-year[6](index=6&type=chunk) - The company maintained **strong liquidity of $1.1 billion** as of March 31, 2025, and **repurchased $63 million of common stock** during the quarter[6](index=6&type=chunk)[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents Enova's unaudited consolidated financial statements for Q1 2025, encompassing Balance Sheets, Statements of Income, and Cash Flow [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Enova's **total assets grew to $5.46 billion**, with **total liabilities at $4.26 billion** and **total stockholders' equity at $1.20 billion** Selected Balance Sheet Data (in thousands USD) | Account | March 31, 2025 | March 31, 2024 | December 31, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $55,514 | $76,458 | $73,910 | | Loans and finance receivables at fair value | $4,569,819 | $3,795,210 | $4,386,444 | | Total assets | $5,457,258 | $4,636,527 | $5,266,131 | | Long-term debt | $3,757,351 | $3,040,867 | $3,563,482 | | Total liabilities | $4,260,608 | $3,486,316 | $4,069,207 | | Total stockholders' equity | $1,196,650 | $1,150,211 | $1,196,924 | [Consolidated Statements of Income](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Enova's Q1 2025 **total revenue increased 22% to $745.5 million**, with **net income up 51% to $72.9 million** and **diluted EPS at $2.69** Q1 Income Statement Highlights (in thousands USD, except per share data) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $745,541 | $609,889 | 22.2% | | Net Revenue | $426,182 | $345,866 | 23.2% | | Income from Operations | $171,904 | $130,792 | 31.4% | | Net Income | $72,945 | $48,428 | 50.6% | | Diluted EPS | $2.69 | $1.64 | 64.0% | [Condensed Consolidated Statements of Cash Flow](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOW) In Q1 2025, **operating cash flow was $391.1 million**, offset by **$509.6 million used in investing activities**, leading to a **net cash decrease of $10.8 million** Q1 Cash Flow Summary (in thousands USD) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total cash flows provided by operating activities | $391,144 | $348,563 | | Total cash flows used in investing activities | ($509,590) | ($443,184) | | Cash flows provided by (used in) financing activities | $107,327 | ($53,975) | | Net (decrease) increase in cash | ($10,812) | $148,512 | [Key Operating Metrics](index=8&type=section&id=Key%20Operating%20Metrics) This section details Enova's financial and operating data for loans and finance receivables, key drivers of company performance [Loans and Finance Receivables Data](index=8&type=section&id=LOANS%20AND%20FINANCE%20RECEIVABLES%20FINANCIAL%20AND%20OPERATING%20DATA) Enova's **total combined loan principal grew 20% to $4.0 billion**, with **originations at $1.7 billion**, and **credit quality remained stable** as **delinquency improved to 7.7%** Loan Portfolio Growth (YoY, in thousands USD) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total combined loan and finance receivable principal | $3,979,232 | $3,309,210 | +20.2% | | Ending combined loan and finance receivable fair value | $4,591,044 | $3,809,983 | +20.5% | | Combined loan and finance receivable originations | $1,729,479 | $1,377,367 | +25.6% | Credit Quality Metrics (YoY) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | >30 days delinquent % of balance | 7.7% | 8.1% | -0.4% | | Charge-offs (net) as % of avg. balance | 8.6% | 8.5% | +0.1% | | Fair value as a % of principal | 115.4% | 115.1% | +0.3% | [Non-GAAP Financial Measures and Reconciliations](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Enova provides non-GAAP measures, including Adjusted Earnings and EBITDA, to offer a clearer view of core operating performance, with this section explaining and reconciling them to GAAP [Explanation of Non-GAAP Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company explains its use of non-GAAP metrics, including 'Combined Loans and Finance Receivables', 'Adjusted Earnings', and 'Adjusted EBITDA', to provide a clearer view of core operations - Management utilizes non-GAAP measures to provide an additional perspective on business aspects, enhancing the understanding of factors and trends alongside GAAP results[12](index=12&type=chunk) - Adjusted Earnings Measures are employed to assess operating performance by excluding the effects of varying capital structures, compensation strategies, and amortization methods[15](index=15&type=chunk) - Adjusted EBITDA is utilized to analyze operating performance and debt servicing capability, excluding items such as depreciation, amortization, interest, taxes, and stock-based compensation[16](index=16&type=chunk)[17](index=17&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) This section reconciles GAAP Net Income to non-GAAP Adjusted Earnings and EBITDA, showing **Q1 2025 Adjusted Earnings of $80.7 million** and **Adjusted EBITDA of $190.0 million** Reconciliation to Adjusted Earnings (in thousands USD, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $72,945 | $48,428 | | Adjustments (net of tax) | $7,794 | $7,878 | | **Adjusted earnings (Non-GAAP)** | **$80,739** | **$56,306** | | Diluted EPS (GAAP) | $2.69 | $1.64 | | **Adjusted EPS (Non-GAAP)** | **$2.98** | **$1.91** | Reconciliation to Adjusted EBITDA (in thousands USD) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $72,945 | $48,428 | | D&A, Interest, Taxes, etc. | $116,976 | $100,006 | | **Adjusted EBITDA (Non-GAAP)** | **$189,901** | **$149,021** | | Adjusted EBITDA Margin | 25.5% | 24.4% | [About Enova & Forward-Looking Statements](index=2&type=section&id=About%20Enova%20%26%20Forward-Looking%20Statements) This section provides an overview of Enova's business as an online financial services company and includes cautionary statements regarding forward-looking information - Enova is an online financial services company serving underserved small businesses and consumers, having provided **over $61 billion in financing to more than 12 million customers** over 20 years[9](index=9&type=chunk) - The report includes forward-looking statements based on management's current expectations, which are not guarantees of future performance and are subject to risks outlined in SEC filings[10](index=10&type=chunk)

Core Insights - Enova International reported strong financial results for Q1 2025, with significant growth in revenue and earnings driven by solid demand and stable credit performance [2][4][8]. Financial Performance - Total revenue reached $746 million, a 22% increase from $610 million in Q1 2024 [8]. - Net income was $73 million, or $2.69 per diluted share, reflecting a 51% increase from $48 million, or $1.64 per diluted share, in the same quarter last year [8][17]. - Adjusted earnings per share rose 56% to $2.98 from $1.91 in Q1 2024 [8][25]. - Adjusted EBITDA increased by 27% to $190 million from $149 million in Q1 2024 [8][26]. Loan and Finance Receivables - Total combined loans and finance receivables reached a record $4.1 billion, up 20% from the end of Q1 2024 [8][21]. - Originations for the quarter were $1.7 billion, marking a 26% increase from the previous year [7][8]. - The net charge-off ratio remained stable at 8.6%, indicating strong credit performance [7][8]. Market Position and Strategy - Enova's diversified product offerings and flexible online-only model have positioned the company well to adapt to changing market conditions [2][4]. - The company has a liquidity position of $1.1 billion as of March 31, 2025, which supports its operational flexibility [7][8]. - Share repurchases during the quarter totaled $63 million, reflecting the company's commitment to returning value to shareholders [8][7]. Operational Metrics - The net revenue margin was consistent at 57%, indicating stable credit performance [8]. - The consolidated 30+ day delinquency ratio improved to 7.7%, down from 8.1% year-over-year, reflecting a stable credit outlook [7][8].

Shares of Enova International (ENVA) have gained 1.8% over the past four weeks to close the last trading session at $97.88, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $127.71 indicates a potential upside of 30.5%.The average comprises seven short-term price targets ranging from a low of $109 to a high of $138, with a standard deviation of $10.80. While the lowest estimate i ...

Core Viewpoint - Oportun Financial Corporation (OPRT) and Enova International Inc. (ENVA) are fintech companies focused on providing credit solutions to underserved consumers, leveraging advanced analytics and digital platforms to serve non-prime borrowers in the alternative lending sector [1][5]. Group 1: Company Performance - Oportun's shares have increased by 32.2% this year, while Enova's shares have risen by 2.1% [2]. - Oportun's total revenues are projected to be between $225 million and $230 million in Q1 2025, down from $250.5 million in the same quarter last year, with 2025 revenues expected to be in the range of $945 million to $970 million compared to $1 billion in 2024 [8]. - Enova's revenues have experienced a compound annual growth rate (CAGR) of 17.7% over the last five years [16]. Group 2: Revenue Growth and Strategies - Oportun has achieved a five-year CAGR of 10.8% in total revenues, with loans receivable at fair value and interest income growing at CAGRs of 8.1% and 10.8%, respectively [7][11]. - Enova's loans and finance receivables recorded a five-year CAGR of 48.6%, supported by its diverse lending programs and acquisition of OnDeck [21]. - Oportun's non-interest income has shown a CAGR of 6.4% over the past five years, indicating a growing revenue stream beyond interest [12]. Group 3: Financial Position - As of December 31, 2024, Oportun had cash and cash equivalents totaling $214.6 million and a debt of $69.1 million, indicating a strong liquidity position [14]. - Enova's cash and cash equivalents were $322.7 million, with a long-term debt of $3.6 billion and $944 million in available revolving credit facilities [22][23]. Group 4: Future Estimates - The Zacks Consensus Estimate for Oportun's 2025 revenues implies a year-over-year decline of 3.6%, while 2026 revenues are expected to rise by 8.4% [24]. - Enova's consensus estimates suggest a year-over-year revenue increase of 16.1% for 2025 and 15% for 2026, with earnings growth of 26% and 19% for the same years, respectively [28]. Group 5: Valuation Analysis - Oportun is currently trading at a price-to-tangible book (P/TB) ratio of 0.84X, which is higher than its three-year median, while Enova's P/TB ratio is 2.99X, lower than its three-year median [31]. - Oportun's stock is considered inexpensive compared to Enova, which may present a better investment opportunity [39]. Group 6: Investment Recommendation - Oportun's focus on community-based lending and expansion into new markets, despite near-term profitability challenges, positions it as a potentially better investment choice compared to Enova, which has a broader portfolio but may face risks from exposure to subprime borrowers [38][39]. - Oportun holds a Zacks Rank 1 (Strong Buy), while Enova has a Zacks Rank 2 (Buy), indicating a stronger recommendation for Oportun [40].

Core Insights - Enova International will release its first quarter 2025 financial results on April 29, 2025, after market close [1] - A conference call to discuss the results will be held at 4 p.m. Central Time on the same day [2] - Enova has provided $59 billion in loans and financing to nearly 12 million customers over its 20-year history [4] Financial Results Announcement - The financial results will be available after market close on April 29, 2025 [1] - The earnings press release and supplemental financial information will be accessible on the Enova International Investor Relations website [2] Conference Call Details - The U.S. dial-in number for the call is 1-855-560-2575, with a separate number for non-U.S. callers [3] - A replay of the conference call will be available until May 6, 2025 [3] - The archived version of the webcast will be accessible for 90 days on the Investor Relations website [3] Company Overview - Enova International is a leading online financial services company serving small businesses and consumers underserved by traditional banks [4] - The company utilizes machine learning algorithms and proprietary technology to offer market-leading financial products [4]

Wall Street expects a year-over-year increase in earnings on higher revenues when Enova International (ENVA) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the ...

Core Insights - Enova International (ENVA) has consistently beaten earnings estimates, particularly in the last two quarters, with an average surprise of 9.27% [1][2] - The company reported earnings of $2.61 per share for the most recent quarter, exceeding the expected $2.33 per share by 12.02% [2] - For the previous quarter, Enova reported $2.45 per share against an expectation of $2.30 per share, resulting in a surprise of 6.52% [2] Earnings Estimates and Predictions - Recent estimates for Enova International have been increasing, indicating positive sentiment among analysts [5] - The Zacks Earnings ESP for Enova is currently +2.41%, suggesting a bullish outlook on the company's earnings prospects [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] Earnings ESP and Zacks Rank - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - Enova's Zacks Rank is 2 (Buy), which, combined with its positive Earnings ESP, indicates a strong possibility of another earnings beat [8] - A negative Earnings ESP does not necessarily indicate an earnings miss, but it reduces predictive power [8]

Company Overview - Enova International (ENVA) shares increased by 11.7% to close at $96.24, supported by high trading volume, contrasting with a 2.9% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $2.77 per share, reflecting a year-over-year increase of 45%, with revenues projected at $727.3 million, up 19.3% from the previous year [3] Market Context - The sharp rally in Enova International shares was influenced by a broader market upturn following President Donald Trump's announcement of a 90-day suspension on tariffs for non-retaliating countries, which alleviated trade tensions and improved market sentiment [2] - The consensus EPS estimate for Enova has remained stable over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Comparison - Enova International operates within the Zacks Financial - Consumer Loans industry, where another company, Discover (DFS), saw a 15.3% increase in its stock price, closing at $170.85, despite a -6.1% return over the past month [4] - Discover's consensus EPS estimate has decreased by 1.2% to $3.33, representing a significant year-over-year change of +202.7% [5]