Economic Environment and Consumer Health - The company focuses on nonprime consumers and characterizes its borrower base as healthy, with an average income of approximately $70,000 per year [1] - The consumer demographic targeted includes individuals earning between $40,000 and $150,000, indicating a stable employment environment [1] - Employment rates are strong, with a reported unemployment rate of 4.2%, suggesting that most individuals seeking jobs are able to find employment [2] Lending Criteria and Variables - The company utilizes over 1,000 variables to assess borrowers, including income, expenses, geography, and employment type, ensuring a comprehensive evaluation of potential borrowers [1] - The current consumer base is described as being in good financial shape, which supports the company's lending strategy [1]

Summary of OneMain Holdings Inc. Conference Call Company Overview - **Company**: OneMain Holdings Inc. - **Industry**: Consumer Finance Economic Environment and Consumer Health - The health of the non-prime consumer is stable, with average customer income around $70,000 per year [3][4] - Employment rates are strong, with a 4.2% unemployment rate indicating good job availability [3] - Wages have caught up with inflation, contributing to consumer stability [4][6] - Internal surveys from 1,400 branches show steady customer sentiment, with no increase in unemployment claims [6][7] Credit Metrics and Guidance - The company has revised its net charge-off guidance to the lower half of the initial range, indicating positive credit trends [10][15] - Key credit metrics: - 30-plus delinquency rates down 29 basis points year-over-year [15] - Overall losses down 88 basis points year-over-year [15] - Consumer loan losses down 110 basis points year-over-year [15] - Confidence in maintaining a target underwriting loss range of 6% to 7% as the portfolio improves [18][19] Underwriting and Risk Management - Over 60% of originations are in the top two risk grades, indicating a focus on better credit quality [20] - A 30% stress buffer has been applied to underwriting to manage risk amid economic uncertainty [21][22] - The company is monitoring borrower performance closely, especially regarding student loans, with no significant impact observed from recent federal collection resumption [8][9] Branch Network and Competitive Advantage - OneMain has the seventh largest branch network in the U.S. with nearly 1,400 branches, which is seen as a competitive advantage [24][25] - Branch managers have an average tenure of 14 years, contributing to strong community ties and customer relationships [25][26] - The branch network is complemented by digital capabilities and new product offerings [24][25] Strategic Initiatives - OneMain has applied for an Industrial Loan Company (ILC) charter to enhance its banking capabilities without becoming a bank holding company [29][30] - The company is focusing on enhancing its debt consolidation product, which has seen increased originations due to improved marketing and technology [33][34] - Automation in income verification and collateral checks has streamlined processes, improving customer experience [36][37] Growth Opportunities - The card and auto loan segments are identified as growth areas, with significant market potential [40][46] - The company has a $750 million card portfolio in a $500 billion market and a $2.5 billion auto loan portfolio in a $600 billion market [46] - Growth will be measured and dependent on macroeconomic conditions, with a focus on maintaining credit quality [46] Competitive Landscape - The competitive environment is described as constructive, with a mix of established players and new entrants [48][49] - OneMain's strong balance sheet and credit history position it well against competitors [49] Capital Generation and Allocation - The company aims to reach $1,250 per share in capital generation, supported by strong credit performance and product innovation [50][51] - Capital allocation strategy includes reinvestment in the business, maintaining a healthy dividend, and opportunistic buybacks [52][53] Conclusion - OneMain Holdings Inc. is positioned well in the consumer finance industry, with a stable non-prime consumer base, improving credit metrics, and strategic growth initiatives that leverage its extensive branch network and digital capabilities [3][4][10][24][50]

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] Value Score - The Value Score identifies attractive and discounted stocks using various financial ratios, appealing to value investors [4] Growth Score - The Growth Score assesses a company's financial health and future outlook, focusing on projected and historical earnings, sales, and cash flow for long-term growth [5] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like recent price changes and earnings estimate shifts [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [7] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, outperforming the S&P 500 [8] - There are typically over 800 top-rated stocks available, making it essential for investors to use Style Scores to narrow down their choices [9] Stock to Watch: OneMain Holdings - OneMain Holdings Inc. is a financial services company with a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating moderate potential [12] - The company has a Value Style Score of A, supported by a forward P/E ratio of 9.76, making it attractive to value investors [13] - Recent upward revisions in earnings estimates by eight analysts for fiscal 2025 have increased the Zacks Consensus Estimate by $0.16 to $6.34 per share, with an average earnings surprise of +9.3% [13]

Core Insights - OneMain Financial is expanding its financial education program, Credit Worthy, to reach an additional 500 high schools annually, aiming for a total of 2,000 schools each year through 2029 [1][3] - The program has already benefited over 500,000 students across more than 4,700 high schools, focusing on essential skills like understanding credit scores and managing debt [1][4] - Research indicates that only 30% of high school students understand credit scores, highlighting the need for effective financial education [2] Program Effectiveness - The Credit Worthy curriculum, developed in partnership with EVERFI, teaches practical financial skills, including banking and budgeting [2] - Students participating in the Build: Credit Fundamentals course experienced significant improvements in their understanding of credit, with a 43% increase in acquiring credit knowledge and a 126% increase in managing credit [4] Educational Impact - The program is active in 17% of public high schools across all 50 states, Washington, D.C., and Puerto Rico, addressing the growing requirement for personal finance education in schools [3] - OneMain Financial has committed nearly $300,000 in scholarships for students completing the curriculum, with an additional $300,000 planned through 2029, totaling $600,000 [5]

Company Overview - OneMain Holdings Inc. is a financial services company engaged in consumer finance and insurance businesses, headquartered in Evansville, IN [11] - The company was formerly known as Springleaf Holdings, Inc. and changed its name after acquiring OneMain Financial from Citigroup in 2015 [11] Zacks Rank and Style Scores - OneMain Holdings has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [11] - The company also has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 9.23, which is appealing to value investors [12] Earnings Estimates and Performance - In the last 60 days, eight analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.16 to $6.34 per share [12] - OneMain Holdings has demonstrated an average earnings surprise of +9.3%, indicating a positive trend in earnings performance [12] Investment Consideration - With a solid Zacks Rank and top-tier Value and VGM Style Scores, OneMain Holdings is recommended to be on investors' short lists for potential investment opportunities [12]

Group 1 - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, with a focus on banks, telecommunications, logistics, and hotels [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings in banks and properties [1] - The investment approach has evolved from initially focusing on blue-chip companies to a more diversified portfolio across various industries and market capitalizations [1] Group 2 - The entry into the US market occurred in 2020, following a period of learning and analysis through platforms like Seeking Alpha [1] - The investor has holdings in US banks, hotels, shipping, and logistics companies, indicating a broad interest in these sectors [1] - The comparative analysis between the US and Philippine markets has been a key aspect of the investment strategy, enhancing market understanding [1]

Core Insights - Pagaya Technologies Ltd. (PGY) and OneMain Holdings, Inc. (OMF) are consumer finance companies targeting subprime and non-prime borrowers, with Pagaya leveraging AI for credit underwriting and securitization, while OneMain operates through physical and digital lending channels [1][2] Group 1: Pagaya Technologies Ltd. (PGY) - Pagaya has a flexible business model that initially focused on personal loans but has since diversified into auto lending and point-of-sale financing, enhancing resilience across economic cycles [3] - The company has established a network of over 135 institutional partners and utilizes forward flow agreements to ensure funding stability during market disruptions [4] - Pagaya's proprietary technology allows lenders to present pre-approved offers to customers without formal applications, enhancing credit access with minimal marketing costs [5] - The company operates with minimal on-balance-sheet exposure, acquiring loans through asset-backed securities (ABS) or forward flow agreements, which limits credit and market risk [6] - Pagaya's model has proven effective from 2021 to 2023, maintaining liquidity and minimizing loan write-downs amid rising rates and tighter markets [7] - The Zacks Consensus Estimate for PGY's revenues indicates year-over-year growth of 23.6% in 2025 and 18.3% in 2026, with earnings expected to jump 202.4% and 26.7% in the same years [18] Group 2: OneMain Holdings, Inc. (OMF) - OneMain operates 1,300 locations across 47 states, providing unsecured and secured personal installment loans for various personal needs, along with optional insurance products [8] - The company has demonstrated strong revenue growth, with a loan mix designed for sustainability and upside potential, frequently securitizing portions of its loan book to manage funding costs [9] - OneMain's rigorous underwriting and servicing, supported by centralized data analytics, help manage credit performance, even during economic downturns [10] - The Zacks Consensus Estimate for OMF's revenues implies a modest year-over-year increase of 7.4% in 2025 and 7.5% in 2026, with earnings growth projected at 26.4% for 2025 and 29.4% for 2026 [20] Group 3: Comparative Analysis - Year-to-date, Pagaya's stock has surged 234.7%, while OneMain's has gained 13.5%, indicating stronger investor sentiment towards Pagaya [12] - In terms of valuation, Pagaya trades at a trailing 12-month price-to-book (P/B) ratio of 5.34X, compared to OneMain's 2.15X, suggesting Pagaya is more expensive [13][14] - Pagaya's return on equity (ROE) stands at 20.88%, slightly above OneMain's 20.77%, indicating marginally better efficiency in generating profits [14] - Pagaya's compelling growth trajectory and strong revenue and earnings prospects position it as a high-upside investment opportunity compared to OneMain's established marketplace model [22][23]

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, 2025 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 001-36129 (OneMain Holdings, Inc.) 001-06155 (OneMain Finance Corporation) ONEMAIN HOLDINGS, INC. ONEMAIN FINANCE CORPORATION (Exact ...

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2][3] - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, and Price/Sales [3] - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to facilitate portfolio building [7] - Stocks rated 1 (Strong Buy) have produced an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock to Watch: OneMain Holdings - OneMain Holdings Inc. is a financial services company with a Zacks Rank of 3 (Hold) and a VGM Score of A [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 9.6, making it appealing to value investors [12] - Recent earnings estimates for fiscal 2025 have been revised higher, with the Zacks Consensus Estimate increasing to $6.18 per share, and an average earnings surprise of +9.3% [12]

Core Insights - OneMain Holdings (OMF) reported a strong second-quarter 2025 performance with adjusted earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.25, and reflecting a 42.2% increase year-over-year [1][8] - The company's net interest income (NII) rose by 10.8% to $1.02 billion, driven by higher net finance receivables and improved yield, while total other revenues increased by 1.1% to $176 million [3][8] - Despite the positive earnings and revenue growth, total other expenses rose by 10.3% year-over-year to $473 million, primarily due to higher operating expenses and insurance policy claims [3][8] Financial Performance - Net income available to common shareholders on a GAAP basis was $167 million, significantly up from $71 million in the prior-year quarter [2] - The provision for finance receivable losses decreased by 11.1% to $511 million, with net charge-offs also down by 10.3% to $445 million [4][8] - As of June 30, 2025, net finance receivables were $23.9 billion, a 2.3% increase from the previous quarter, while long-term debt rose by 2.6% to $22.1 billion [5][8] Credit Quality - The company reported 30-89-day delinquencies of $706 million, which is a 2.8% increase from the prior-year quarter, indicating some deterioration in asset quality [4] - The allowance ratio increased to 11.54% from 11.46% in the prior-year quarter, reflecting a cautious approach to credit risk [4] Shareholder Actions - In the reported quarter, OneMain Holdings repurchased 460 thousand shares for $21 million, indicating a commitment to returning value to shareholders [6] Strategic Outlook - The company's focus on growing credit card and auto finance loans, along with strategic acquisitions, is expected to bolster its financial performance, although rising expenses and asset quality concerns remain challenges [7]