Core Insights - OneMain Holdings (OMF) reported fourth-quarter 2025 adjusted earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.55, and reflecting a 37.1% increase year-over-year [1] - The company's net income on a GAAP basis was $204 million, a significant rise of 61.9% from the prior-year quarter, with adjusted earnings for 2025 at $6.66 per share, surpassing estimates and increasing 36.2% from the previous year [2] Financial Performance - Quarterly net interest income (NII) increased by 8.3% year-over-year to $1.09 billion, driven by higher net finance receivables and improved yield [3] - Total other revenues reached $193 million, up 20.6% from the prior-year quarter, attributed to an increase in nearly all fee income components [3] - Total other expenses rose by 2.7% year-over-year to $495 million, primarily due to higher operating expenses [4] Credit Quality - The provision for finance receivable losses was $542 million, up 3.6% from the prior-year quarter, with net charge-offs of $492 million, an increase of 6.3% year-over-year [5] - The company reported 30-89-day delinquencies of $803 million, up 8.1% from the prior-year quarter, with an allowance ratio of 11.54%, slightly up from 11.48% in the previous year [5] Balance Sheet and Share Repurchase - As of December 31, 2025, net finance receivables amounted to $24.8 billion, a 1.5% increase from the prior quarter, while long-term debt rose by 1.6% to $22.7 billion [6] - In the reported quarter, OneMain Holdings repurchased 1.2 million shares of common stock for $70 million [7] Strategic Outlook - Rising expenses due to higher compensation and operating costs are expected to impact profitability, alongside weakening asset quality as a near-term challenge [8] - The company is focusing on growing credit card and auto finance loans, along with strategic acquisitions, which are anticipated to support its financial performance [9]

Employee Engagement and Support - As of December 31, 2025, the company had approximately 9,300 employees, emphasizing a commitment to community and team member support [60] - The company achieved a 90% participation rate in its annual Employee Engagement Survey in 2025, indicating strong employee engagement [62] - The company offers a comprehensive benefits package, including competitive pay, healthcare, retirement benefits, and paid development time, to attract and retain talent [65] - The company’s approach to talent development and inclusivity is aimed at remaining competitive in attracting and retaining exceptional team members [64] Financial Performance and Risk Management - The company forecasts a net interest income sensitivity of -$35 million for a hypothetical 100 basis point increase in interest rates over the next 12 months [300] - The company has limited exposure to other market risks, including foreign exchange rates, equity prices, and commodity prices, which are not considered material to its operations [302] - The company’s finance receivables consist of fixed-rate consumer loans and credit cards, which are not viewed as interest rate sensitive [299] Social Responsibility and Community Engagement - The company is committed to social responsibility, focusing on building trust with stakeholders and providing responsible credit solutions [67] - The company’s Impact Executive Council, consisting of senior executives, monitors Impact issues and risks, reflecting its commitment to social responsibility [69] - The company has delivered financial education curriculum to over 4,900 schools and 600,000 students through its partnership with EVERFI, aiming to enhance financial literacy [70]

Financial Data and Key Metrics Changes - Full-year earnings per share increased by 36% year-over-year to $6.66, with capital generation rising by 33% to $913 million [5][18] - Fourth quarter GAAP net income was $204 million, or $1.72 per diluted share, up 64% from the previous year [18] - Managed receivables grew by 6% year-over-year to $26.3 billion, with revenue increasing by 8% in the fourth quarter [18][20] Business Line Data and Key Metrics Changes - Personal loans saw significant growth driven by targeted initiatives, with debt consolidation products reducing customer payments by about 25% [6][7] - Auto finance receivables grew to $2.8 billion, with a scalable platform established and partnerships expanded [9][14] - Credit card receivables increased to $936 million, with accounts rising to nearly 1.1 million customers [10][14] Market Data and Key Metrics Changes - The company maintained a conservative underwriting posture despite a slightly weaker labor market and persistent inflation [16][32] - The 30-plus delinquency rate for consumer loans was 5.65%, in line with expectations and better than pre-pandemic trends [14][23] - C&I net charge-offs were 7.9% in the fourth quarter, with consumer loan net charge-offs at 7.6%, showing significant improvement [14][25] Company Strategy and Development Direction - The company is focused on product innovation, enhancing customer experience, and expanding its auto finance and credit card businesses [34] - Plans to maintain a conservative underwriting posture while targeting a minimum 20% return on tangible equity [19][32] - The introduction of new products and the expansion of existing services are expected to drive growth in managed receivables by 6%-9% in 2026 [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of OneMain's customers and the strength of its portfolio, anticipating continued capital generation growth in 2026 [16][34] - The company expects to see some seasonal patterns in losses, with a potential improvement in the second half of 2026 [32] - Management highlighted the importance of maintaining a strong balance sheet and the ability to issue capital opportunistically [30][31] Other Important Information - The company was recognized as one of America's most loved workplaces for the fourth consecutive year, reflecting a strong corporate culture [13] - A $1 billion share repurchase program was approved through 2028, with a commitment to maintaining dividends [15][18] Q&A Session Questions and Answers Question: Outlook for credit performance - Management indicated that while credit should continue to improve, there are pressures from the backbook contributing to delinquency and losses, with expectations for a range of C&I net charge-offs in 2026 [37][39] Question: ILC application status and implications - The company is progressing through the ILC application process, which could enhance its ability to serve customers and diversify its balance sheet, but any positive effects are expected to materialize around 2027 [41][42] Question: Loan growth expectations - The company expects loan growth to be driven by innovation in personal loan products and improved team member effectiveness, with a target of 6%-9% growth in managed receivables for 2026 [53][54] Question: Impact of tax refunds on performance - Tax refunds are a significant focus, as they typically improve delinquencies and drive loan demand, but the company does not have specific expectations for the current tax season [60][62] Question: Interest yield trends - The consumer loan yield is currently at 22.5%, with expectations for stability in yields moving forward, influenced by product mix and pricing actions [63][64] Question: Whole loan sales strategy - The whole loan sale program is viewed as a funding diversification strategy, providing flexibility and attractive pricing, while also generating additional revenue streams [70][72]

Financial Data and Key Metrics Changes - Full-year earnings per share increased by 36% year-over-year to $6.66, with capital generation rising by 33% to $913 million [5][18] - Fourth quarter GAAP net income was $204 million, or $1.72 per diluted share, up 64% from $1.05 per diluted share in the fourth quarter of 2024 [18] - Total revenue for the fourth quarter was $1.6 billion, an 8% increase compared to the fourth quarter of 2024, with full-year revenue growth at 9% [20][21] Business Line Data and Key Metrics Changes - Receivables grew 6% year-over-year to $26.3 billion, with personal loans driving growth through targeted initiatives [5][18] - Auto finance receivables increased to $2.8 billion, with significant progress in building a scalable platform [9][14] - Credit card receivables grew to $936 million, with accounts increasing to nearly 1.1 million customers [10][14] Market Data and Key Metrics Changes - The company maintained a conservative underwriting posture despite a slightly weaker labor market in 2025, with net charge-offs improving significantly [16][24] - The 30-plus delinquency rate for consumer loans was 5.65%, in line with expectations and better than pre-pandemic trends [14][23] Company Strategy and Development Direction - The company is focused on product innovation, enhancing customer experience, and expanding its auto finance and credit card businesses [34] - A new secured lending product for homeowners is being introduced, which is expected to drive originations without loosening underwriting standards [7][9] - The company is committed to a share repurchase program, with a $1 billion authorization through 2028, reflecting confidence in capital generation [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of OneMain's customers and the portfolio, anticipating continued capital generation growth in 2026 [16][33] - The outlook for 2026 includes managed receivables growth of 6%-9%, with expectations for C&I net charge-offs in the range of 7.4%-7.9% [32][33] Other Important Information - The company was recognized as one of America's most loved workplaces for the fourth consecutive year, highlighting its strong workplace culture [13] - The financial wellness platform on the mobile app saw a 36% increase in customer adoption, indicating a commitment to customer financial education [11][12] Q&A Session Summary Question: Outlook for credit performance - Management indicated that while credit should continue to improve, there are pressures from the backbook contributing to delinquency and losses, with expectations for seasonal patterns in 2026 [37][39] Question: ILC application status and implications - The company is progressing through the ILC application process, which could enhance its ability to serve customers and diversify its balance sheet, but any positive effects are expected to materialize around 2027 [41][42] Question: New product rollout and pilot periods - New products, including the home merchandise-backed product, will undergo pilot testing to assess performance before full rollout [47] Question: Loan growth expectations - The company expects loan growth to be driven by innovation in personal loan products and improved team member effectiveness, with a target of 6%-9% growth in 2026 [53][54] Question: Impact of tax refunds on performance - Tax refunds are a significant focus, with expectations that higher refunds could improve delinquencies and drive loan demand, although no specific expectations were set for the current tax season [60][62] Question: Interest yield trends - The consumer loan yield is currently at 22.5%, with expectations for yields to remain stable, influenced by product mix and pricing actions taken in previous years [63][64] Question: Whole loan sales strategy - The whole loan sale program is viewed as a funding diversification strategy, providing flexibility and attractive pricing, while also contributing to revenue through gains on sale and servicing income [70][72]

Financial Data and Key Metrics Changes - Full-year earnings per share increased by 36% year-over-year to $6.66, with capital generation rising by 33% to $913 million [5][19] - Fourth quarter GAAP net income was $204 million, or $1.72 per diluted share, up 64% from the previous year [19] - Managed receivables grew by 6% year-over-year to $26.3 billion, with revenue increasing by 8% in the fourth quarter [19][22] Business Line Data and Key Metrics Changes - Personal loans saw significant growth, driven by targeted initiatives, with consumer loan originations for the full year up by 8% [6][19] - Auto finance receivables increased to $2.8 billion, with a scalable platform being built [10][15] - Credit card receivables grew to $936 million, with accounts increasing to nearly 1.1 million customers [11][19] Market Data and Key Metrics Changes - The company maintained a conservative underwriting posture despite a slightly weaker labor market and persistent inflation [17][33] - The 30-plus delinquency rate for consumer loans was 5.65%, in line with expectations and better than pre-pandemic trends [14][25] Company Strategy and Development Direction - The company is focused on product innovation, enhancing customer experience, and expanding its auto finance and credit card businesses [35] - A new secured lending product for homeowners is being introduced, which is expected to drive originations without loosening underwriting standards [8][10] - The company is committed to a share repurchase program, with a $1 billion authorization through 2028 [16][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of OneMain's customers and the portfolio, anticipating continued capital generation growth in 2026 [17][34] - The outlook for 2026 includes managed receivables growth of 6%-9% and C&I net charge-offs expected in the range of 7.4%-7.9% [33][34] Other Important Information - The company was recognized as one of America's most loved workplaces for the fourth consecutive year, reflecting a strong workplace culture [13] - The financial wellness platform on the mobile app saw a 36% increase in users, indicating a commitment to customer financial education [12] Q&A Session Questions and Answers Question: Can you tie together the outlook for credit and the expected losses for 2026? - Management noted that 2025 was a remarkable year with significant loss benefits, and while the front book is performing well, the backbook remains a headwind [38][40] Question: What are the implications of the ILC application? - The company believes that obtaining an ILC license would allow for a more standardized rate structure and operational structure, enhancing customer service [42][43] Question: How do you view the rollout of new products like the home merchandise-backed products? - New products will be piloted to assess performance before full rollout, ensuring they meet risk-adjusted return criteria [47][48] Question: What drives demand for personal loans? - Demand remains stable, with debt consolidation being a primary use case, alongside emergency needs and discretionary spending [49][50] Question: What is the expectation for loan growth in 2026? - The company expects loan growth to be driven by innovation in personal loan products and improved team member effectiveness [53][54] Question: How will share repurchase pace change in 2026? - The company plans to bias incremental capital returns towards share repurchases unless more attractive uses of capital arise [56][57] Question: How do you expect tax refunds to impact your customer base? - Tax refunds typically improve delinquencies and drive seasonal low losses, but the company does not have specific expectations for the upcoming tax season [59][60]

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4Q25 Financial Results NYSE: OMF | February 5, 2026 Important Information The following slides are part of a presentation by OneMain Holdings, Inc. (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these slides is complete. For additional financial, statistical, and business-related information, as well as information regarding business and segment trends, see the earnings rel ...

分组1 - OneMain Holdings reported quarterly earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.55 per share, and showing an increase from $1.16 per share a year ago, representing an earnings surprise of +2.47% [1] - The company achieved revenues of $1.09 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.56% and increasing from $1.01 billion year-over-year [2] - OneMain has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market, losing about 6.4% since the beginning of the year, while the S&P 500 has gained 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is $2.05 on revenues of $1.08 billion, and for the current fiscal year, it is $7.89 on revenues of $4.44 billion [7] - The Financial - Consumer Loans industry, to which OneMain belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - OneMain Holdings reported a pretax income of $249 million and a net income of $204 million for Q4 2025, an increase from $164 million and $126 million in the same quarter of the previous year [1][2] - For the full year 2025, net income reached $783 million, up from $509 million in 2024, with earnings per diluted share increasing to $6.56 from $4.24 [2][3] - The company declared a quarterly dividend of $1.05 per share, payable on February 23, 2026 [2] Consumer and Insurance Segment - The Consumer and Insurance segment reported an adjusted pretax income of $250 million and adjusted net income of $188 million for Q4 2025, compared to $185 million and $139 million in the prior year quarter [4][5] - For the full year 2025, adjusted net income for the segment was $795 million, up from $587 million in 2024 [5] Capital Generation - Capital generation for Q4 2025 was $225 million, an increase from $183 million in the prior year quarter, driven by receivable growth and yield improvement [6][7] - For the full year 2025, capital generation totaled $913 million, compared to $685 million in 2024 [7] Receivables and Loan Originations - Managed receivables reached $26.3 billion as of December 31, 2025, a 6% increase from $24.7 billion a year earlier [7][8] - Consumer loan originations totaled $3.6 billion in Q4 2025, up 3% from $3.5 billion in the prior year quarter [8] Revenue and Expenses - Total revenue for Q4 2025 was $1.6 billion, an 8% increase from $1.5 billion in the prior year quarter, with interest income also rising to $1.4 billion [8][10] - Operating expenses for Q4 2025 were $443 million, up 5% from $422 million in the prior year quarter, reflecting strategic investments and receivable growth [11] Funding and Liquidity - As of December 31, 2025, OneMain had principal debt balances of $23.0 billion, with $914 million in cash and cash equivalents [12][13] - The company has significant liquidity resources, including $1.1 billion of undrawn committed capacity from an unsecured corporate revolver and $11.8 billion of unencumbered receivables [13]

Financial Performance - OneMain reported pretax income of $249 million and net income of $204 million for Q4 2025, compared to $164 million and $126 million in the prior year quarter, representing increases of 52% and 62% respectively[1]. - For the full year 2025, net income was $783 million, up from $509 million in 2024, with earnings per diluted share increasing to $6.56 from $4.24[2]. - Total revenue for Q4 2025 was $1.6 billion, up 8% from $1.5 billion in the prior year quarter[8]. - Net income for Q4 2025 was $204 million, up from $126 million in Q4 2024, marking a significant year-over-year increase of 62%[26]. - Adjusted net income for the fiscal year 2025 was $795 million, a significant rise from $587 million in 2024, marking a 35.4% increase[33]. - The adjusted diluted EPS for the fiscal year 2025 was $6.66, compared to $4.89 in 2024, reflecting a 36.4% increase[33]. Shareholder Actions - The company repurchased approximately 1.2 million shares of common stock for $70 million during the quarter[3]. Segment Performance - Adjusted pretax income for the Consumer and Insurance segment was $250 million in Q4 2025, compared to $185 million in the prior year quarter, an increase of 35%[4]. - Consumer & Insurance segment adjusted pretax income for Q4 2025 was $250 million, up from $185 million in Q4 2024, representing a 35.1% increase[33]. Receivables and Loans - Managed receivables reached $26.3 billion at December 31, 2025, up 6% from $24.7 billion a year earlier[7]. - Consumer loan originations totaled $3.6 billion in Q4 2025, a 3% increase from $3.5 billion in the prior year quarter[8]. - Net finance receivables increased to $24,853 million in Q4 2025, up from $23,598 million in Q4 2024, indicating a growth of 5.3%[35]. - Average net receivables for Q4 2025 were $24,745 million, an increase from $24,238 million in Q3 2025, with a fiscal year average of $24,028 million, up from $22,440 million in 2024[36]. Expenses and Loss Provisions - Operating expenses for Q4 2025 were $443 million, reflecting a 5% increase from $422 million in the prior year quarter due to receivable growth and strategic investments[12]. - Interest expense increased to $323 million in Q4 2025, up 4% from $310 million in the prior year quarter[9]. - The provision for finance receivable losses was $542 million in Q4 2025, an increase of $19 million compared to the prior year period[11]. - The provision for finance receivable losses for Q4 2025 was $542 million, compared to $523 million in Q4 2024, indicating a slight increase of 3.6%[33]. Asset and Equity Growth - Total assets as of December 31, 2025, were $27,388 million, an increase from $25,910 million as of December 31, 2024, indicating a growth of 5.7%[28]. - Total shareholders' equity increased to $3,401 million as of December 31, 2025, up from $3,191 million in the previous year, representing a growth of 6.6%[28]. - Cash and cash equivalents rose to $914 million as of December 31, 2025, from $458 million a year prior, indicating a significant increase of 99.1%[29]. Debt and Leverage - Net adjusted debt was $21,783 million as of December 31, 2025, slightly up from $20,931 million in the previous year, reflecting a 4.1% increase[29]. - The net leverage ratio (net adjusted debt to adjusted capital) improved to 5.4x as of December 31, 2025, down from 5.6x a year earlier, indicating better capital management[29]. Charge-Offs and Delinquency - Net charge-offs for Q4 2025 were $492 million, compared to $428 million in Q3 2025, with a fiscal year total of $1,841 million, down from $1,849 million in 2024[36]. - Gross charge-offs for Q4 2025 were $540 million, compared to $480 million in Q3 2025, with a fiscal year total of $2,043 million, down from $2,080 million in 2024[38]. - 30+ delinquency ratio for Q4 2025 was 5.85%, compared to 5.55% in Q3 2025, with a fiscal year average of 5.85%, consistent with 5.76% in 2024[38].