Enova(US:ENVA)2025-07-25 20:15PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) The unaudited consolidated financial statements for the period ended June 30, 2025, show significant growth in assets, primarily driven by an increase in loans and finance receivables Consolidated Balance Sheets As of June 30, 2025, total assets were $5.72 billion, a significant increase from $4.82 billion on June 30, 2024, primarily driven by growth in 'Loans and finance receivables at fair value' to $4.77 billion Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | June 30, 2024 | December 31, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $5,724,753 | $4,817,091 | $5,266,131 | | Loans and finance receivables at fair value | $4,773,315 | $3,939,159 | $4,386,444 | | Total Liabilities | $4,496,098 | $3,669,563 | $4,069,207 | | Long-term debt | $3,963,514 | $3,194,121 | $3,563,482 | | Total Stockholders' Equity | $1,228,655 | $1,147,528 | $1,196,924 | - A significant portion of the company's assets and liabilities are held within consolidated Variable Interest Entities (VIEs), primarily for securitization purposes, with these VIEs holding $3.79 billion in assets and $2.61 billion in liabilities as of June 30, 20251718 Consolidated Statements of Income For the three months ended June 30, 2025, total revenue increased 21.6% year-over-year to $764.0 million, with net income growing 41.2% to $76.1 million Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $764,043 | $628,436 | +21.6% | $1,509,584 | $1,238,325 | +21.9% | | Net Revenue | $441,458 | $370,191 | +19.3% | $867,640 | $716,057 | +21.2% | | Income from Operations | $184,106 | $145,056 | +26.9% | $356,010 | $275,848 | +29.1% | | Net Income | $76,149 | $53,911 | +41.2% | $149,094 | $102,339 | +45.7% | | Diluted EPS | $2.86 | $1.93 | +48.2% | $5.51 | $3.56 | +54.8% | Consolidated Statements of Comprehensive Income Comprehensive income for Q2 2025 was $78.1 million, an increase from $50.4 million in Q2 2024, driven by higher net income and a positive foreign currency translation gain Comprehensive Income (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $76,149 | $53,911 | $149,094 | $102,339 | | Foreign currency translation gain (loss) | $1,929 | $(3,515) | $4,838 | $(4,485) | | Comprehensive Income | $78,078 | $50,396 | $153,932 | $97,854 | Consolidated Statements of Stockholders' Equity Stockholders' equity increased from $1.20 billion at the end of 2024 to $1.23 billion at June 30, 2025, primarily due to net income partially offset by treasury stock purchases - For the six months ended June 30, 2025, the company repurchased 1,394 thousand shares of treasury stock for a total cost of $140.9 million28 Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash provided by operating activities was strong at $838.5 million, while net cash used in investing activities was $1.04 billion Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $838,508 | $709,505 | | Net cash used in investing activities | $(1,037,826) | $(849,950) | | Net cash provided by financing activities | $255,953 | $35,159 | | Net increase (decrease) in cash | $56,775 | $(106,134) | Notes to Consolidated Financial Statements The notes detail the company's accounting policies, loan portfolio composition, debt structure, and other key financial information, including a new securitization facility established subsequent to the quarter's end - The company operates an internet-based lending platform offering unsecured loan and finance receivable products to consumers and small businesses, also acting as a Credit Services Organization (CSO) in some markets33 - The entire loan and finance receivable portfolio is carried at fair value, determined using discounted cash flow analyses that factor in estimated losses, prepayments, and servicing costs41 - On July 17, 2025, a wholly-owned subsidiary entered into a new receivables securitization facility (NCLOCR 2025) with a total revolving commitment of $150.0 million100101 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes strong Q2 2025 results to growth in both consumer and small business loan portfolios, leading to a 21.6% YoY increase in total revenue to $764.1 million Business Overview and Strategy Enova is a technology and analytics company providing online financial services to consumers and small businesses with limited access to traditional credit, leveraging proprietary underwriting systems and machine learning - The company extended approximately $3.5 billion in credit or financing to borrowers in the first six months of 2025105 - Enova utilizes advanced risk analytics, including machine learning and artificial intelligence, with approximately 90% of models in its analytical environment being machine learning-enabled107 - The company operates in the United States under brands like CashNetUSA, NetCredit, and OnDeck, and in Brazil under the name Simplic117 Recent Regulatory Developments The company is navigating several key regulatory issues, including a November 2023 CFPB Consent Order and the compliance date for the CFPB's Small Dollar Rule's payment provisions - In November 2023, the company consented to a CFPB Consent Order and paid a $15 million civil money penalty for issues, many of which were self-disclosed115 - The compliance date for the CFPB's Small Dollar Rule has been set for March 30, 2025, with the CFPB stating it will not prioritize enforcement actions initially116 - The company is assessing the impact of the "One Big Beautiful Bill Act" (OBBBA), enacted July 4, 2025, which includes accelerated tax deductions for certain expenditures121 Results of Operations For Q2 2025, revenue grew 21.6% YoY to $764.1 million, driven by a 29.6% increase in small business revenue and a 16.5% increase in consumer revenue Q2 2025 vs Q2 2024 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $764.1 | $628.4 | +21.6% | | Net Revenue | $441.5 | $370.2 | +19.3% | | Income from Operations | $184.1 | $145.1 | +26.9% | | Net Income | $76.1 | $53.9 | +41.2% | | Diluted EPS | $2.86 | $1.93 | +48.2% | H1 2025 vs H1 2024 Performance (in millions) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,509.6 | $1,238.3 | +21.9% | | Net Revenue | $867.6 | $716.0 | +21.2% | | Net Income | $149.1 | $102.3 | +45.7% | - The fair value of the combined loan and finance receivables portfolio grew to $4.80 billion as of June 30, 2025, from $3.96 billion a year prior138140 Liquidity and Capital Resources The company maintains a flexible balance sheet with $379.4 million in cash, cash equivalents, and restricted cash as of June 30, 2025, supported by strong operating cash flow and various debt facilities - As of June 30, 2025, the company had total funding capacity of $712.0 million and no recourse debt obligations maturing until June 2026187 - The company's revolving credit facility was increased to $665.0 million in September 2024, with $204.6 million in available borrowings as of July 23, 2025189 - Under a new share repurchase program authorized in August 2024 for $300.0 million, the company repurchased $117.0 million of common stock during the six months ended June 30, 2025193 Item 3. Quantitative and Qualitative Disclosures About Market Risk The company states that there have been no material changes in its exposure to market risk since the fiscal year ended December 31, 2024 - There have been no material changes in the company's market risk exposure since the end of the last fiscal year207 Item 4. Controls and Procedures Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, and concluded they were effective - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective208 - No material changes to the internal control over financial reporting occurred during the quarter ended June 30, 2025209 PART II. OTHER INFORMATION Item 1. Legal Proceedings The company refers to Note 7 of the financial statements for information on legal proceedings, including a lawsuit filed by the Commonwealth of Virginia in 2018 against a subsidiary - Information regarding legal proceedings is detailed in Note 7 to the consolidated financial statements210 - The company is involved in a lawsuit with the Commonwealth of Virginia filed in 2018, alleging violations of the Virginia Consumer Protection Act, which the company believes are without merit81 Item 1A. Risk Factors The company reports that there have been no material changes from the risk factors described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes to the risk factors disclosed in the 2024 Form 10-K have occurred210 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds During the second quarter of 2025, the company repurchased a total of 580,168 shares of its common stock at an average price of $94.55 per share Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share (in dollars) | Value Remaining Under Plan (end of period, in dollars) | | :--- | :--- | :--- | :--- | | April 2025 | 223,034 | $92.90 | $151,178,000 | | May 2025 | 197,981 | $94.70 | $133,037,000 | | June 2025 | 159,153 | $96.69 | $117,650,000 | | Total | 580,168 | $94.55 | $117,650,000 | - A new share repurchase program for $300.0 million was authorized on August 12, 2024, effective through December 31, 2025217 Item 5. Other Information The company reports that during the quarter ended June 30, 2025, none of its directors or Section 16 officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or Section 16 officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025216 Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and XBRL data files - Exhibits filed with the report include an Indenture dated May 30, 2025, CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL interactive data files218 Signatures Signature The Form 10-Q report was duly authorized and signed on July 25, 2025, by Steven E. Cunningham, the Chief Financial Officer of Enova International, Inc - The report is signed by Steven E. Cunningham, Chief Financial Officer, on behalf of the registrant221