Enova(ENVA) - 2025 Q1 - Quarterly Results

Financial Highlights 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] 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] - 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][7] Financial Statements This section presents Enova's unaudited consolidated financial statements for Q1 2025, encompassing Balance Sheets, Statements of Income, and Cash Flow Consolidated Balance Sheets 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 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 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 This section details Enova's financial and operating data for loans and finance receivables, key drivers of company performance Loans and Finance Receivables Data 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 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 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] - Adjusted Earnings Measures are employed to assess operating performance by excluding the effects of varying capital structures, compensation strategies, and amortization methods[15] - 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][17] Reconciliation of GAAP to Non-GAAP Measures 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 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] - 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]