Enova(ENVA) - 2025 Q2 - Quarterly Results

Executive Summary Enova International reported strong Q2 2025 results, marking the fifth consecutive quarter of over 20% year-over-year growth in revenue, originations, and adjusted EPS CEO and CFO Commentary Leadership commentary highlights consistent strong growth across key financial metrics and prudent management for sustainable performance - CEO David Fisher reported over 20% year-over-year growth in revenue, originations, and adjusted EPS for the fifth consecutive quarter, emphasizing prudent business management for sustainable and profitable growth[3] - CFO Steve Cunningham highlighted the strength of diversified product offerings and the team's ability to deliver strong originations growth, revenue, and profitability while maintaining solid credit performance[5] Second Quarter 2025 Financial Highlights Key financial metrics for Q2 2025 demonstrate robust growth in originations, revenue, and EPS, alongside stable credit performance | Metric | Q2 2025 Value | Q2 2024 Value | YoY Change | Source Chunks | | :-------------------------------- | :---------------- | :---------------- | :--------- | :------------ | | Originations | $1.8 billion | $1.408 billion | +28% | [6, 7, 25] | | Total Revenue | $764 million | $628 million | +22% | [6, 7] | | Diluted EPS | $2.86 | $1.93 | +48% | [6, 7] | | Adjusted EPS | $3.23 | $2.21 | +46% | [6, 7] | | Net Charge-Off Ratio | 8.1% | 7.7% | +0.4% | [6, 25] | | Net Revenue Margin | 58% | 59% | -1% | [6, 7, 25] | | 30+ Day Delinquency Ratio | 7.1% | 7.5% | -0.4% (Improvement) | [6, 25] | | Consolidated Portfolio Fair Value Premium | 115% | 115.1% | Stable | [6, 25] | | Liquidity (Cash & Marketable Securities + Available Capacity) | $1.1 billion | N/A | N/A | [6] | | Share Repurchases | $54 million | N/A | N/A | [6, 7] | | Total Combined Loans & Finance Receivables | $4.3 billion | $3.584 billion | +20% | [7, 25] | Company Overview and Corporate Updates This section provides an overview of Enova International's business, announces key senior leadership transitions, and details information for investor communications About Enova Enova International is a leading online financial services company serving underserved small businesses and consumers with over $63 billion in financing - Enova International is a leading online financial services company serving small businesses and consumers underserved by traditional banks[10] - Over 20 years, Enova has provided more than $63 billion in loans and financing to over 13 million customers[10] - The company's market-leading products are powered by world-class analytics, machine learning algorithms, and proprietary technology[10] Planned Key Senior Leadership Changes Enova announces key leadership changes, with David Fisher transitioning to Executive Chairman and Steve Cunningham succeeding as CEO - David Fisher, current Chairman and CEO, will transition to Executive Chairman of the Board, effective January 1, 2026, for at least two years[8] - Steve Cunningham, current CFO, will succeed David Fisher as CEO, effective January 1, 2026, and has immediately joined the Board of Directors[8] - Scott Cornelis, current Treasurer and Vice President of Finance, will succeed Steve Cunningham as CFO, effective January 1, 2026[8] Conference Call and Contact Information Details for the Q2 2025 earnings conference call, webcast access, and investor relations contact information are provided - Enova hosted a conference call to discuss Q2 2025 results on July 24, 2025, at 4 p.m. Central Time / 5 p.m. Eastern Time[9] - The live webcast and archived version are available on the Enova Investor Relations website (http://ir.enova.com)[9](index=9&type=chunk) - Investor Relations Contact: Lindsay Savarese, Office: 1-212-331-8417, Email: IR@enova.com[11] GAAP Financial Statements This section presents Enova International's unaudited consolidated financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) Consolidated Balance Sheets Presents Enova's consolidated balance sheets, detailing assets, liabilities, and stockholders' equity as of June 30, 2025, and prior periods | Assets (dollars in thousands) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------------------- | :-------------- | :---------------- | :-------------- | | Cash and cash equivalents | $55,560 | $73,910 | $60,138 | | Restricted cash | $323,883 | $248,758 | $211,167 | | Loans and finance receivables at fair value | $4,773,315 | $4,386,444 | $3,939,159 | | Total assets | $5,724,753 | $5,266,131 | $4,817,091 | | Liabilities and Stockholders' Equity (dollars in thousands) | | | | | Accounts payable and accrued expenses | $257,509 | $249,970 | $333,972 | | Long-term debt | $3,963,514 | $3,563,482 | $3,194,121 | | Total liabilities | $4,496,098 | $4,069,207 | $3,669,563 | | Total stockholders' equity | $1,228,655 | $1,196,924 | $1,147,528 | | Total liabilities and stockholders' equity | $5,724,753 | $5,266,131 | $4,817,091 | Consolidated Statements of Income Presents Enova's consolidated statements of income, detailing revenue, expenses, and net income for the three and six months ended June 30, 2025 | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $764,043 | $628,436 | $1,509,584 | $1,238,325 | | Net Revenue | $441,458 | $370,191 | $867,640 | $716,057 | | Total Operating Expenses | $257,352 | $225,135 | $511,630 | $440,209 | | Income from Operations | $184,106 | $145,056 | $356,010 | $275,848 | | Net income | $76,149 | $53,911 | $149,094 | $102,339 | | Diluted Earnings per common share | $2.86 | $1.93 | $5.51 | $3.56 | Condensed Consolidated Statements of Cash Flow Presents Enova's condensed consolidated statements of cash flow, detailing operating, investing, and financing activities for the six months ended June 30, 2025 | (dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Total cash flows provided by operating activities | $838,508 | $709,505 | | Total cash flows used in investing activities | $(1,037,826) | $(849,950) | | Cash flows provided by financing activities | $255,953 | $35,159 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $56,775 | $(106,134) | | Cash, cash equivalents and restricted cash at end of period | $379,443 | $271,305 | Non-GAAP Financial Measures and Supplemental Data This section details Enova's non-GAAP financial measures, including explanations for their use and definitions, along with comprehensive financial and operating data and reconciliations Explanation of Non-GAAP Financial Measures Explains the purpose and definitions of Enova's non-GAAP financial measures, including Combined Loans and Finance Receivables, Adjusted Earnings, and Adjusted EBITDA - Enova provides non-GAAP financial information to offer a more complete understanding of factors and trends affecting its business, as these measures are used by management for operational insights[13][14] - Combined Loans and Finance Receivables is a non-GAAP measure that includes both company-owned and guaranteed loans, providing a comprehensive view of potential losses and revenue opportunities[15] - Adjusted Earnings Measures and Adjusted EBITDA Measures are non-GAAP metrics used to assess operating performance, facilitate comparisons, and evaluate the company's financial health by excluding certain non-core or non-cash items[16][17] Loans and Finance Receivables Financial and Operating Data Provides comprehensive financial and operating data for combined loans and finance receivables, including balances, originations, revenue, and credit performance metrics | Metric (dollars in thousands) | June 30, 2025 | June 30, 2024 | Change | | :-------------------------------------------------------------------------------- | :-------------- | :-------------- | :------- | | Ending combined loan and finance receivable principal balance | $4,157,875 | $3,436,139 | $721,736 | | Ending combined loan and finance receivable fair value balance | $4,797,092 | $3,956,443 | $840,649 | | Fair value as a % of principal | 115.4% | 115.1% | 0.3% | | Ending combined loan and finance receivable balance (incl. accrued fees/interest) | $4,318,689 | $3,584,667 | $734,022 | | Average combined loan and finance receivable balance (incl. accrued fees/interest) | $4,220,169 | $3,499,469 | $720,700 | | Installment loans as percentage of average combined loan and finance receivable balance | 44.2% | 47.7% | (3.5%) | | Line of credit accounts as percentage of average combined loan and finance receivable balance | 55.8% | 52.3% | 3.5% | | Revenue | $754,577 | $619,340 | $135,237 | | Net revenue | $434,021 | $363,360 | $70,661 | | Net revenue margin | 57.5% | 58.7% | (1.2%) | | Combined loan and finance receivable originations and purchases | $1,803,049 | $1,408,654 | $394,395 | | >30 days delinquent | $305,583 | $268,053 | $37,530 | | >30 days delinquent as a % of combined loan and finance receivable balance | 7.1% | 7.5% | (0.4%) | | Charge-offs (net of recoveries) | $342,880 | $268,386 | $74,494 | | Charge-offs (net of recoveries) as a % of average combined loan and finance receivable balance | 8.1% | 7.7% | 0.4% | Reconciliation of GAAP to Non-GAAP Financial Measures Provides detailed reconciliations of GAAP net income and earnings per share to non-GAAP Adjusted Earnings and Adjusted EBITDA measures Adjusted Earnings Measures (dollars in thousands, except per share data): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $76,149 | $53,911 | $149,094 | $102,339 | | Adjusted earnings | $86,052 | $61,638 | $166,791 | $117,944 | | Diluted earnings per share | $2.86 | $1.93 | $5.51 | $3.56 | | Adjusted earnings per share | $3.23 | $2.21 | $6.16 | $4.11 | Adjusted EBITDA Measures (dollars in thousands): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $76,149 | $53,911 | $149,094 | $102,339 | | Adjusted EBITDA | $202,560 | $162,529 | $392,461 | $311,550 | | Total Revenue | $764,043 | $628,436 | $1,509,584 | $1,238,325 | | Adjusted EBITDA as a percentage of total revenue | 26.5% | 25.9% | 26.0% | 25.2% | Legal Disclosures This section contains the standard cautionary statement regarding forward-looking statements, advising readers about inherent risks and uncertainties Cautionary Statement Concerning Forward Looking Statements Standard cautionary statement regarding forward-looking statements, highlighting risks and disclaiming obligation to update projections - The release contains forward-looking statements about Enova's business, financial condition, and prospects, reflecting management's current expectations and views[12] - Actual results could differ materially due to various risks and uncertainties, including those detailed in Enova's SEC filings (Form 10-K, 10-Q, 8-K)[12] - Enova cautions against undue reliance on these statements and disclaims any obligation to update or revise them after the release date[12]