OneMain Holdings (OMF) came out with quarterly earnings of $1.72 per share, beating the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.97%. A quarter ago, it was expected that this consumer finance company would post earnings of $1.12 per share when it actually produced earnings of $1.16, delivering a surprise of 3.57%.Over the last four quarte ...

Financial Performance - OneMain reported pretax income of $275 million and net income of $213 million for Q1 2025, compared to $204 million and $155 million in the prior year quarter, representing increases of 35% and 37% respectively[1] - Earnings per diluted share were $1.78 in Q1 2025, up from $1.29 in the prior year quarter, reflecting a 38% increase[1] - Total revenue for Q1 2025 was $1.5 billion, up 10% from $1.4 billion in the prior year quarter[7] - Interest income in Q1 2025 was $1.3 billion, an 11% increase from $1.2 billion in the prior year quarter[7] - For Q1 2025, OneMain Holdings reported net income of $213 million, a significant increase from $126 million in Q4 2024, representing a 69% quarter-over-quarter growth[25] - The company achieved a diluted EPS of $1.78 in Q1 2025, compared to $1.05 in Q4 2024, reflecting a 69% increase[25] - Adjusted net income for Q1 2025 was $207 million, an increase from $139 million in Q4 2024, reflecting a growth of 48.18%[33] Loan and Receivables - Consumer loan originations totaled $3.0 billion in Q1 2025, a 20% increase from $2.5 billion in the prior year quarter[7] - Managed receivables reached $24.6 billion at March 31, 2025, up 12% from $22.0 billion at March 31, 2024[6] - The net finance receivables for personal loans stood at $20,469 million in Q1 2025, compared to $20,833 million in Q4 2024, indicating a decrease of 1.75%[35] - OneMain's net finance receivables totaled $23,365 million in Q1 2025, a decrease from $23,598 million in Q4 2024, representing a decline of 0.99%[35] - Average net receivables for Q1 2025 were $22,826 million, compared to $22,823 million in Q4 2024, showing stability in the loan portfolio[38] Expenses and Losses - The provision for finance receivable losses was $456 million in Q1 2025, an increase of $25 million compared to the prior year period[8] - Operating expenses for Q1 2025 were $401 million, up 11% from $362 million in the prior year quarter[10] - The company reported net charge-offs of $473 million in Q1 2025, compared to $463 million in Q4 2024, showing a slight increase of 2%[25] - The allowance for finance receivable losses stood at $2.688 billion as of March 31, 2025, slightly down from $2.705 billion at the end of 2024[27] - The company reported a net charge-off of $1,773 million for the fiscal year 2024, an increase from $1,510 million in 2023, highlighting rising credit losses[38] Capital and Equity - Capital generation for Q1 2025 was $194 million, compared to $155 million in the prior year quarter, driven by receivable growth and improved credit performance[5] - Total shareholders' equity rose to $3.280 billion as of March 31, 2025, up from $3.191 billion at the end of 2024, reflecting a 2.8% increase[27] - The net leverage ratio (net adjusted debt to adjusted capital) was 5.5x as of March 31, 2025, slightly improved from 5.6x in the previous quarter[28] - Capital generation return on receivables for Q1 2025 was 3.3%, up from 3.1% in Q4 2024, reflecting enhanced efficiency in capital generation[36] Dividend and Shareholder Returns - OneMain declared a quarterly dividend of $1.04 per share, payable on May 16, 2025[2] Other Financial Metrics - Total assets reached $26.029 billion as of March 31, 2025, compared to $25.910 billion at the end of 2024, indicating a 0.5% growth[27] - Cash and cash equivalents increased to $627 million in Q1 2025 from $458 million in Q4 2024, a rise of 37%[28] - The company’s total operating expenses for Q1 2025 were $401 million, down from $422 million in Q4 2024, indicating a reduction of 4.97%[33] - The gross charge-off ratio for Q1 2025 was 9.34%, an increase from 8.96% in Q4 2024, indicating a need for closer monitoring of loan performance[38] - 30+ delinquency ratio improved to 5.16% in Q1 2025 from 5.76% in Q4 2024, indicating better loan performance[38] Future Projections - Total revenue for the fiscal year 2024 is projected to be $782 million, compared to $874 million in 2023, indicating a potential decline[36]

On CNBC's “Mad Money Lightning Round,” Jim Cramer recommended buying Reddit, Inc. RDDT, calling it a “very good” stock.On the earnings front, Reddit will release its first-quarter financial results after market close on Thursday, May 1. Analysts expect the company to report quarterly earnings at 2 cents per share on revenue of $370.12 million.Cramer said he likes Brookfield Asset Management Ltd. BAM and added, “Those guys are real good.”Supporting his view, B of A Securities analyst Craig Siegenthaler upgra ...

OneMain Holdings (OMF) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on April 29, 2025, might help the stock move higher if these key numbers are better than ...

NEW YORK, April 8, 2025 /PRNewswire/ -- OneMain Holdings, Inc. (NYSE: OMF), the leader in offering nonprime consumers responsible access to credit, plans to report its first quarter 2025 results before the market opens on Tuesday, April 29, 2025. The earnings release will be available on OneMain's investor relations website at http://investor.onemainfinancial.com.A conference call to discuss the company's results, outlook and related matters will be held that morning at 9:00 a.m. Eastern. The general public ...

Core Insights - OneMain Financial has elected Andrew D. Macdonald to its Board of Directors, effective immediately, enhancing its leadership with his extensive experience in technology and business growth [1][2]. Company Overview - OneMain Financial is a leader in providing nonprime customers with responsible access to credit, aiming to improve the financial well-being of hardworking Americans through personalized solutions available in 47 states and online [4]. Leadership Background - Andrew D. Macdonald has been the CEO of Consilio LLC since 2012, and he has a strong track record in identifying revenue and growth opportunities through technology and data science [2]. - Prior to Consilio, Macdonald was a founding member and served as President and CEO of First Advantage Corporation from 2003 to 2011, and he held various leadership roles at First American Financial Corporation [2][3].

Summary of OneMain Financial Conference Call Company Overview - **Company**: OneMain Financial - **Industry**: Consumer Finance - **Focus**: Providing personal loans, auto loans, and credit cards primarily to non-prime customers [2][5] Key Points and Arguments Business Model and Differentiation - OneMain is the largest public company focused on non-prime lending, with an average FICO score of 630 [6][7] - The company has a strong branch network with 1,300 locations, which aids in customer relationships and credit performance [8][12] - Average unsecured loans are approximately $9,000, while auto loans average around $12,000 [6] - The company maintains a fortress balance sheet with $24 billion in assets and $7 billion in available bank lines [9] Credit Performance - OneMain's average losses over the past eight years have been just over 6%, with a standard deviation of 1.2, indicating lower volatility compared to competitors [11] - The company has a conservative underwriting posture, focusing on loans that meet strict performance criteria [25][36] - Two-thirds of loans booked in the last year were in the top two risk grades, reflecting a disciplined approach to lending [30][32] Market Conditions and Consumer Behavior - Inflation has increased the cost of living by approximately 25%, but incomes have caught up, leading to higher net disposable income for customers [27][28] - Despite improved financial metrics, consumer sentiment remains cautious due to visible price increases in essential goods [29][30] - The company has not loosened its credit standards, maintaining a focus on quality over quantity in loan origination [36][37] Competitive Landscape - The competitive environment has shifted, with online lenders ramping up originations, but OneMain remains confident in its ability to compete due to its strong analytics and credit discipline [42][44] - The company has seen steady competition but has not experienced a significant spike in competitive pressures [46] Growth Opportunities - OneMain has identified significant growth potential in the credit card market, which is five times larger than the personal loan market [52] - The company is building a digital-first credit card product that enhances customer engagement and reduces acquisition costs [56][59] - The auto lending segment is also expected to grow, especially following the acquisition of Foresight, which has improved distribution channels [63][66] Financial Outlook - The company projects 5% to 8% growth in receivables and 6% to 8% growth in revenue for the year, despite a tight underwriting posture [36][78] - OneMain aims to double its capital generation per share over the next four years, contingent on product mix and market conditions [78] Investor Perception - There is a perception issue among investors regarding the risks associated with non-prime lending, which may undervalue OneMain's resilient business model [80] - The company emphasizes its strong balance sheet and low volatility of losses compared to competitors, which is often overlooked by equity investors [81] Additional Important Insights - OneMain's approach to customer service includes personalized interactions, which enhances loan performance and collection efforts [15][19] - The company is cautious about growth, focusing on sustainable practices rather than aggressive expansion [68][69] - Regulatory changes under different administrations are viewed as manageable, with the company prepared to comply with existing regulations [72][74]

Employee Engagement and Support - As of December 31, 2024, the company had approximately 9,000 employees, emphasizing a commitment to community and team member support [58] - The company achieved a 90% participation rate in its annual Employee Engagement Survey in 2024, indicating strong employee engagement [60] - The company offers a comprehensive total rewards package, including competitive pay, healthcare, retirement benefits, and paid development time [63] - The company prioritizes talent development and an inclusive culture to remain competitive in attracting and retaining exceptional team members [62] Financial Education and Inclusion - The company has delivered financial education to over 4,100 schools and 440,000 students through its Credit Worthy program, focusing on financial literacy for high school students [69] - In August 2024, the company issued its second Social Bond, with at least 75% of the loans allocated to women or minority borrowers, reinforcing its commitment to financial inclusion [68] Economic and Market Risks - The company is exposed to risks related to economic conditions, which could adversely affect borrowers' ability to make payments on their loans [76] - Changes in market conditions could negatively impact the value of the company's finance receivables portfolio and increase financing costs [84] - Changes in market conditions may increase interest expenses, adversely affecting the company's financial condition and results of operations [86] - The company faces geographic customer concentration risk, which could materially affect its financial condition and results of operations during economic downturns [78] Financial Condition and Accounting Estimates - The company maintains an allowance for finance receivable losses, which is a critical accounting estimate that could impact its results of operations if actual losses exceed estimates [80] - The risk of loss on securitized finance receivables is recognized in the allowance for finance receivable losses, which could adversely affect financial condition if losses exceed recorded allowances [89] - The company may face indemnification obligations for finance receivables that do not meet certain criteria, potentially impacting liquidity and financial condition [87] - Impairment of goodwill and intangible assets could negatively impact profitability and financial condition [99] Regulatory and Compliance Risks - Regulatory compliance failures could lead to significant penalties and increased operational costs, adversely affecting financial results [105] - Changes in federal and state laws could limit interest income and other revenues, negatively impacting financial condition and results of operations [110] - The company entered into a consent order with the CFPB on May 31, 2023, to resolve an investigation regarding certain refunding practices for optional insurance and membership plan products [115] - The company is subject to increased regulatory scrutiny regarding the purchase and sale of finance receivables, particularly those in default or charged-off [121] - Compliance with current and future consumer privacy, data protection, and cybersecurity laws may result in higher operating costs for the company [118] - Regulatory actions against lenders regarding debt collection practices could impact the company's operations and reputation [116] - The company may face additional compliance costs due to changes in laws and regulatory developments related to securitizations [122] Capital and Liquidity Risks - The company's current corporate credit ratings are below investment grade, which may increase borrowing costs and limit access to capital [126] - The company’s ability to access capital markets is significantly affected by disruptions in the U.S. credit markets and potential credit rating downgrades [126] - The company’s significant indebtedness may adversely affect its ability to meet obligations under debt instruments and react to economic changes [129] - The company is dependent on its subsidiaries for funds to meet financial obligations, and restrictions on dividend payments could hinder liquidity [140] - OMH intends to maintain a minimum quarterly dividend of $1.04 per share, but future dividends will depend on various financial factors and Board discretion [141] Market Performance and Stock Risks - The market price of OMH's common stock has been volatile, influenced by operating results, management changes, and increased indebtedness [146] - Future issuances of debt or equity securities may dilute existing stockholders' rights and affect the market price of OMH's common stock [149] Interest Rate Sensitivity and Financial Performance - The company has transitioned to an earnings-based sensitivity analysis for net interest income, focusing on the impact of interest rate changes on financial performance [293] - The forecasted impact on net interest income from a +100 bps change in interest rates is a decrease of $35 million, while a -100 bps change would increase it by $32 million [296] - The revised methodology focuses on net interest income to provide better insight into earnings exposure to interest rate risk, enhancing transparency and aligning with industry practices [298] - The analysis indicates that the company has limited exposure to other market risks, including foreign exchange rates, equity prices, and commodity prices, which are not considered material to operations [300] - The earnings-based analysis assumes an immediate change in interest rates without considering potential business decisions to mitigate adverse effects [299] - The previous methodology did not adequately reflect the earnings exposure to interest rate risk, focusing instead on fair value changes of receivables, investments, and debt [297] Cybersecurity and Operational Risks - Cybersecurity risks, including data breaches and system failures, could impair the company's ability to operate and result in significant financial liabilities [90] - The company is exposed to risks related to the theft or misuse of confidential customer information, which could lead to reputational harm and regulatory scrutiny [91] - The insurance operations are subject to unpredictable claims and catastrophic events, which could adversely affect financial results [96] - The company may not keep pace with technological advancements, potentially harming its competitive position and financial condition [98]

Core Viewpoint - OneMain Holdings, Inc. is set to present at the Bank of America Securities 2025 Financial Services Conference, highlighting its leadership in providing responsible credit access to nonprime consumers [1]. Company Overview - OneMain Financial is recognized as the leader in offering responsible credit access to nonprime consumers, focusing on improving the financial well-being of hardworking Americans [3]. - The company operates across 47 states, providing personalized financial solutions both online and through 1,300 physical locations [3]. - OneMain is committed to making a positive impact on the communities it serves [3]. Event Information - Doug Shulman, Chairman and CEO of OneMain, will present at the conference on February 12, 2025, at 11:20 a.m. Eastern [1]. - The presentation will be accessible to the general public via a live audio webcast on OneMain's Investor Relations website [2].

Core Viewpoint - OneMain Holdings reported adjusted earnings of $1.16 per share for Q4 2024, exceeding the Zacks Consensus Estimate of $1.12, but reflecting a 16.5% decline year-over-year [1] Financial Performance - The company experienced a 10% increase in net interest income (NII) to $1.01 billion, driven by higher average net finance receivables, although this was partially offset by increased average debt and higher cost of funds [4] - Total other revenues decreased by 14% to $160 million, attributed to declines in nearly all components except for other income [4] - Total other expenses rose by 10.3% to $482 million due to higher operating expenses [5] - Net income available to common shareholders on a GAAP basis was $126 million, down from $165 million in the prior-year quarter, while for 2024, adjusted earnings per share was $4.89, surpassing the consensus estimate of $4.58 but down 9.9% year-over-year [3] Credit Quality - The provision for finance receivable losses increased by 17.3% to $523 million, primarily due to a $59 million rise in the allowance for finance receivables [6] - Net charge-offs were reported at $463 million, up 11.6% from the prior-year quarter, with 30-89 days delinquencies rising to $743 million, an increase of 7.8% [6] - The allowance ratio decreased to 11.48% from 11.62% in the prior-year quarter [7] Balance Sheet and Debt - As of December 31, 2024, total net finance receivables reached $23.6 billion, a 2.1% increase from the prior quarter, while long-term debt rose by 1.4% to $21.4 billion [8] Share Repurchase - In the reported quarter, OneMain Holdings repurchased 75 thousand shares for $3 million [9] Strategic Outlook - The company aims to grow credit card and auto finance loans, supported by relatively lower interest rates and strategic acquisitions, while maintaining a decent balance sheet and liquidity position [10]