分组1 - OneMain Holdings reported quarterly earnings of $1.9 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and up from $1.26 per share a year ago, representing an earnings surprise of +20.25% [1] - The company posted revenues of $1.07 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.42%, and an increase from $981 million year-over-year [2] - OneMain has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has underperformed the market with a gain of about 6.9% since the beginning of the year, compared to the S&P 500's gain of 16% [3] - The current consensus EPS estimate for the upcoming quarter is $1.56 on revenues of $1.06 billion, and for the current fiscal year, it is $6.27 on revenues of $4.1 billion [7] - The Financial - Consumer Loans industry, to which OneMain belongs, is currently ranked in the top 39% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - OneMain reported pretax income of $263 million and net income of $199 million for Q3 2025, compared to $207 million and $157 million in the prior year quarter, respectively[1]. - Earnings per diluted share increased to $1.67 in Q3 2025 from $1.31 in the prior year quarter[1]. - Total revenue for Q3 2025 was $1.6 billion, up 9% from $1.5 billion in the prior year quarter[8]. - For Q3 2025, OneMain Holdings reported net income of $199 million, an increase from $167 million in Q2 2025, reflecting a 19.2% quarter-over-quarter growth[26]. - OneMain's diluted EPS for Q3 2025 was $1.67, compared to $1.40 in Q2 2025, reflecting a 19.3% increase[26]. - The company reported a return on assets of 3.0% for Q3 2025, an improvement from 2.5% in Q2 2025[26]. - The company reported a net loss on repurchases and repayments of debt amounting to $39 million for Q3 2025, compared to $20 million in Q2 2025[30]. - OneMain Holdings' total other revenues for Q3 2025 were $200 million, up from $195 million in Q2 2025[32]. Consumer and Insurance Segment - The Consumer and Insurance segment adjusted pretax income was $303 million, up from $202 million in the prior year quarter, with adjusted net income rising to $227 million from $151 million[5]. - The adjusted pretax income (non-GAAP) for the Consumer & Insurance segment was $303 million for Q3 2025, compared to $231 million in Q2 2025, reflecting a 31.1% increase[32]. - The adjusted net income (non-GAAP) for Q3 2025 was $227 million, compared to $173 million in Q2 2025, representing a 31.2% increase[32]. Loan and Receivables Performance - Managed receivables reached $25.9 billion, a 6% increase from $24.3 billion a year earlier[7]. - Consumer loan originations totaled $3.9 billion, reflecting a 5% increase from $3.7 billion in the prior year quarter[8]. - OneMain's net finance receivables reached $24.465 billion as of September 30, 2025, up from $23.870 billion in Q2 2025, representing a 2.5% increase[28]. - The total net finance receivables reached $24,490 million as of September 30, 2025, up from $23,901 million in the previous quarter, indicating a growth of 2.5%[34]. - Average net receivables for Q3 2025 increased to $24,238 million, compared to $23,634 million in Q2 2025, representing a growth of 2.6%[35]. - Origination volume for consumer loans in Q3 2025 was $3,889 million, slightly down from $3,907 million in Q2 2025, indicating stable lending activity[37]. Expenses and Loss Provisions - Operating expenses increased to $427 million, up 8% from $396 million in the prior year quarter, due to receivable growth and strategic investments[11]. - The provision for finance receivable losses was $488 million, down $24 million compared to the prior year period[9]. - The provision for finance receivable losses was $488 million for Q3 2025, slightly down from $511 million in Q2 2025[32]. - Net charge-offs for Q3 2025 were $427 million, a decrease from $445 million in Q2 2025, showing a 4.0% improvement[26]. - Net charge-offs for Q3 2025 totaled $428 million, a decrease from $446 million in Q2 2025, showing a reduction in loan defaults[35]. - Gross charge-offs for consumer loans in Q3 2025 were $480 million, down from $496 million in Q2 2025, indicating a positive trend in loan performance[37]. - Net charge-off ratio for consumer loans in Q3 2025 was 6.67%, a decrease from 7.19% in Q2 2025, reflecting improved loan quality[37]. Shareholder Returns and Equity - The company declared a quarterly dividend of $1.05 per share, a 1% increase from the previous dividend of $1.04[2]. - OneMain repurchased approximately 540 thousand shares for $32 million during the quarter, with a new $1.0 billion share repurchase program approved[3]. - Total shareholders' equity increased to $3.378 billion as of September 30, 2025, from $3.326 billion in Q2 2025, a rise of 1.6%[29]. Asset Management - The company’s total assets reached $26.985 billion as of September 30, 2025, compared to $26.628 billion at the end of Q2 2025, marking a 1.3% increase[28]. - The allowance for finance receivable losses stood at $2.815 billion as of September 30, 2025, up from $2.754 billion in Q2 2025, indicating a 2.2% increase[28]. - The allowance for finance receivable losses stood at $2,818 million, with an allowance ratio of 11.51% as of September 30, 2025[34]. - The company maintained undrawn conduit facilities of $5.999 billion as of September 30, 2025, unchanged from Q2 2025[29]. Future Outlook - Total revenue for the fiscal year 2024 is projected to be higher than the previous year, driven by strategic market expansions and new product offerings[35].

Financial Performance - OneMain Holdings reported pretax income of $263 million and net income of $199 million for Q3 2025, an increase from $207 million and $157 million in the same quarter last year [1] - Earnings per diluted share rose to $1.67 in Q3 2025, compared to $1.31 in the prior year quarter [1] - Total revenue for Q3 2025 was $1.6 billion, up 9% from $1.5 billion in the prior year quarter, driven by receivable growth and improved portfolio yield [8] Dividend and Share Repurchase - The company declared a quarterly dividend of $1.05 per share, a 1% increase from the previous dividend of $1.04 [2] - OneMain repurchased approximately 540 thousand shares of common stock for $32 million during the quarter and has approved a $1.0 billion share repurchase program expiring on December 31, 2028 [3] Consumer and Insurance Segment - The Consumer and Insurance segment reported adjusted pretax income of $303 million and adjusted net income of $227 million for Q3 2025, compared to $202 million and $151 million in the prior year quarter [5] - Adjusted earnings per diluted share for this segment were $1.90, up from $1.26 in the prior year quarter [5] Capital Generation and Receivables - Capital generation for Q3 2025 was $272 million, an increase from $211 million in the prior year quarter, driven by receivable growth and improved credit performance [6] - Managed receivables reached $25.9 billion as of September 30, 2025, a 6% increase from $24.3 billion a year earlier [7] Interest and Expenses - Interest income for Q3 2025 was $1.4 billion, up 9% from $1.3 billion in the prior year quarter, while interest expense increased to $320 million, a 7% rise from $299 million [8][9] - Operating expenses for Q3 2025 were $427 million, reflecting an 8% increase from $396 million in the prior year quarter [10] Delinquency and Loss Ratios - The 30+ days delinquency ratio for consumer loans was 5.55% as of September 30, 2025, compared to 5.63% a year earlier, indicating improved credit trends [10] - Net charge-offs were reported at 6.67%, down from 7.33% in the prior year [10] Funding and Liquidity - As of September 30, 2025, OneMain had principal debt balances of $22.6 billion, with 54% secured, and $658 million in cash and cash equivalents [11] - The company has significant liquidity resources, including $1.1 billion of undrawn committed capacity from an unsecured corporate revolver and $10.9 billion of unencumbered receivables [12]

Core Viewpoint - OneMain Holdings is considered a buyable company due to its 100-year history, transparent management, and a forward PE of 9, along with a 7% dividend yield [1] Group 1: Company Overview - OneMain Holdings has a long-standing history of 100 years, indicating stability and reliability [1] - The company is characterized by transparent management and reporting practices, which enhances investor confidence [1] - It trades at a forward price-to-earnings (PE) ratio of 9, suggesting a decent valuation compared to its earnings potential [1] - The company offers a 7% dividend, providing a stable income stream for investors [1] Group 2: Analyst Perspective - The analysis emphasizes the importance of value and growth trends, as well as the significance of corporate governance and accounting practices [1] - The analyst aims to provide insights that go beyond typical analyses, utilizing academic research and modeling secular trends [1]

Core Viewpoint - OneMain Holdings is considered a buyable company due to its 100-year history, transparent management, and a forward PE of 9, along with a 7% dividend yield [1] Group 1: Company Overview - OneMain Holdings has a long-standing history of 100 years, indicating stability and reliability in its operations [1] - The company is characterized by transparent management and reporting practices, which enhances investor confidence [1] Group 2: Financial Metrics - The forward price-to-earnings (PE) ratio is noted to be 9, which is considered tolerable and suggests decent valuation [1] - OneMain Holdings offers a dividend yield of 7%, providing a stable income stream for investors [1] Group 3: Analyst Perspective - The analysis emphasizes a focus on value, growth, secular trends, and accounting practices, indicating a comprehensive approach to evaluating investment opportunities [1]

Core Insights - Pagaya Technologies Ltd. (PGY) and OneMain Holdings, Inc. (OMF) are significant players in the consumer finance sector, focusing on underserved credit segments like subprime and non-prime borrowers, but they operate under different business models [1][3] Pagaya Technologies Ltd. (PGY) - Pagaya is a technology-driven fintech platform utilizing AI-powered machine learning algorithms for credit risk assessment, loan underwriting, and asset securitization in collaboration with banks and fintech lenders [2] - The company has diversified its offerings from personal loans to auto lending and point-of-sale financing, reducing reliance on any single loan type and enhancing resilience during economic fluctuations [4] - Pagaya has established a network of over 135 institutional partners and employs forward flow agreements to ensure funding stability, particularly during market disruptions [4][6] - The company has recorded two consecutive quarters of positive GAAP net income, marking a significant turnaround from previous losses, driven by strong network volume growth and improved operating leverage [8] - Pagaya's return on equity (ROE) stands at 31.69%, indicating higher efficiency in generating profits compared to OneMain's 20.65% [18] - The Zacks Consensus Estimate predicts revenue growth of 28.4% and 20.1% for 2025 and 2026, respectively, with earnings growth estimates of 219.3% and 28.3% for the same years [19] OneMain Holdings, Inc. (OMF) - OneMain operates as a traditional non-prime lender, providing personal loans through a nationwide branch network and digital channels, with a focus on unsecured and secured personal installment loans [11] - The company has a strong revenue growth trajectory, with a loan mix designed for sustainability and upside potential in a changing macroeconomic environment [12] - OneMain has a $1 billion buyback program extending through December 2026 and has raised dividends seven times since initiating them in 2019, reflecting a commitment to shareholder returns [14] - The Zacks Consensus Estimate indicates revenue growth of 7.8% and 7.4% for 2025 and 2026, respectively, with earnings growth estimates of 28.2% and 25.4% for the same years [23] Comparative Analysis - Pagaya's stock has surged 217.8% this year, significantly outperforming OneMain's 8.1% gain, indicating stronger investor sentiment towards Pagaya [15] - In terms of valuation, Pagaya trades at a trailing 12-month price-to-book (P/B) ratio of 4.83X, while OneMain's P/B ratio is 2.03X, suggesting that Pagaya is considered more expensive [16][18] - Pagaya's compelling growth trajectory positions it as a high-upside investment opportunity, while OneMain's established marketplace model offers a more attractive valuation [25][26]

Core Insights - Fiduciary Management Inc. (FMI) reported a strong performance in the third quarter of 2025, with major stock indices such as the Russell 2000, S&P 500, MSCI EAFE, and MSCI World gaining 12.39%, 8.12%, 5.38%/4.77%, and 7.27% respectively, driven by a Federal Reserve rate cut and enthusiasm for AI and technology stocks [1] - FMI's investment strategy focuses on idiosyncratic dislocations, emphasizing business quality, balance sheet strength, and valuation while maintaining downside protection [1] Company Analysis: OneMain Holdings, Inc. (NYSE:OMF) - OneMain Holdings, Inc. is recognized as a scale leader in nonprime personal lending, with a one-month return of -5.99% and a 52-week gain of 22.70%, closing at $56.53 per share with a market capitalization of $6.72 billion as of October 21, 2025 [2][3] - FMI believes that OneMain Holdings has the potential to be reframed as a high-quality financial institution, supported by organic growth opportunities in personal lending and new areas like credit cards and direct auto lending, projecting mid-single-digit growth with significant capital returns through dividends and buybacks [3] - Despite current macroeconomic pressures affecting OneMain's core consumers and net charge-offs, FMI asserts that the company's income statement and balance sheet provide sufficient protection against adverse outcomes [3] Hedge Fund Interest - OneMain Holdings, Inc. was held by 39 hedge fund portfolios at the end of the second quarter, a slight decrease from 40 in the previous quarter [4] - The company's second-quarter earnings were reported at $1.40 per diluted share, marking a 137% increase from $0.59 per diluted share in the same quarter of 2024 [4] - While FMI acknowledges OneMain's investment potential, it suggests that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Points - OneMain Holdings, Inc. plans to report its third quarter 2025 results on October 31, 2025, before market opens [1] - A conference call to discuss the results and outlook will take place at 9:00 a.m. Eastern on the same day, with public access via phone or webcast [2] - OneMain Financial is a leader in providing responsible credit access to nonprime consumers, operating in 47 states with 1,300 locations [3]

Core Viewpoint - Investors in the Financial - Consumer Loans sector should consider OneMain Holdings (OMF) and Sallie Mae (SLM) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - OneMain Holdings has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Sallie Mae has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting that OMF has an improving earnings outlook [3] Group 2: Valuation Metrics - OMF has a forward P/E ratio of 8.81, while SLM has a forward P/E of 8.84, indicating that both stocks are similarly valued in terms of earnings [5] - OMF's PEG ratio is 0.43, compared to SLM's PEG ratio of 0.77, suggesting OMF may offer better value considering expected earnings growth [5] - OMF's P/B ratio is 2.01, while SLM's P/B ratio is 2.69, further indicating that OMF is relatively undervalued compared to SLM [6] Group 3: Value Grades - OMF has a Value grade of A, while SLM has a Value grade of C, highlighting OMF's stronger position in terms of value metrics [6] - The combination of Zacks Rank and Style Scores suggests that OMF is the preferred choice for value investors over SLM [6]

Core Viewpoint - OneMain Holdings (OMF) has experienced significant selling pressure, resulting in a 10% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating a potential turnaround for the company [1]. Technical Analysis - The Relative Strength Index (RSI) for OMF is currently at 29.3, suggesting that the stock is in oversold territory and may be poised for a rebound as selling pressure exhausts [5]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating oversold conditions [2][3]. Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for OMF, leading to a 0% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - OMF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].