Enova(US:ENVA)2025-10-24 20:15Financial Performance - Consolidated total revenue increased by $112.8 million, or 16.3%, to $802.7 million for the three months ended September 30, 2025, compared to $689.9 million for the same period in 2024 [124]. - Consolidated net income rose to $80.3 million in the current quarter, up from $43.4 million in the prior year quarter, reflecting a significant increase [124]. - Consolidated diluted income per share increased to $3.03 in the current quarter, compared to $1.57 in the prior year quarter [124]. - Net income for Q3 2025 was $80.3 million, a 85.0% increase from $43.4 million in Q3 2024 [131]. - Adjusted earnings for Q3 2025 reached $88.8 million, compared to $67.9 million in Q3 2024, reflecting a 30.7% increase [131]. - Total revenue for Q3 2025 increased by $112.8 million, or 16.3%, to $802.7 million from $689.9 million in Q3 2024 [138]. - Revenue from the small business portfolio grew by 29.3% in Q3 2025, while revenue from the consumer portfolio increased by 7.9% [138]. - Adjusted EBITDA for Q3 2025 was $217.7 million, representing a margin of 27.1% of total revenue, up from 24.9% in Q3 2024 [135]. - Total revenue for the nine-month period ended September 30, 2025, increased by $384.1 million, or 19.9%, to $2,312.3 million compared to the same period in 2024 [177]. Loan and Finance Receivables - In 2024, the company extended approximately $6.1 billion in credit or financing to borrowers, and for the nine months ended September 30, 2025, it extended approximately $5.5 billion [108]. - The company processed approximately 3.9 million transactions in 2024, indicating growth in its loan and finance receivable portfolios [111]. - Loans and finance receivables revenue accounted for 98.6% of total revenue in the current quarter, consistent with the prior year [125]. - The fair value of loans and finance receivables is estimated using discounted cash flow analyses, adjusted for estimated losses and prepayments [126]. - The fair value of the loan and finance receivable portfolio was $5,012.9 million as of September 30, 2025, compared to $4,134.4 million in 2024 [141]. - The outstanding principal balance of the loan and finance receivables portfolio increased to $4,344.9 million in Q3 2025 from $3,593.4 million in Q3 2024 [141]. - As of September 30, 2025, total loans and finance receivables amounted to $4,362,202, an increase from $3,611,658 in 2024, reflecting a growth of approximately 20.8% [144]. - The average amount outstanding per loan and finance receivable increased to $4,551 in 2025 from $4,204 in 2024, driven by growth in the small business portfolio [147]. - The average loan and finance receivable origination amount rose to $1,779 in the current quarter from $1,572 in the prior year quarter, primarily due to a higher proportion of small business loans [153]. - The company-owned loans and finance receivables balance reached $4,500,360 by the end of Q3 2025, compared to $3,742,767 in Q3 2024, marking a year-over-year increase of approximately 20.3% [155]. Operating Expenses and Income - Total operating expenses increased to $263.9 million in the current quarter, up from $246.6 million in the prior year quarter [125]. - Income from operations increased by $43.1 million, or 28.0%, to $196.8 million in the current quarter compared to $153.7 million in the prior year quarter [124]. - The effective tax rate for the current quarter was approximately 27.1%, with a provision for income taxes of $29.9 million [125]. - The effective tax rate rose to 27.1% in Q3 2025 from 21.8% in Q3 2024, primarily due to changes in interest expense and state tax expenses [175]. - Total operating expenses rose by $17.3 million, or 7.0%, to $263.9 million in Q3 2025 compared to $246.6 million in Q3 2024 [169]. Credit Performance - The delinquency rate for loans over 30 days was 7.2% in Q3 2025, slightly improved from 7.5% in Q3 2024, indicating better credit performance [155]. - The percentage of loans greater than 30 days delinquent rose to 9.2% at September 30, 2025, up from 8.7% at September 30, 2024, while charge-offs (net of recoveries) increased to 16.1% of the average combined loan and finance receivable balance, compared to 14.9% in the prior year quarter [160]. - The percentage of loans greater than 30 days delinquent improved to 6.2% in Q3 2025 from 7.2% in Q3 2024, indicating better credit performance [166]. - Charge-offs (net of recoveries) totaled $249.5 million for the current quarter, compared to $215.0 million in the prior year quarter [160]. - Charge-offs (net of recoveries) as a percentage of average loan and finance receivable balance remained stable at 4.4% in Q3 2025, consistent with the previous four quarters [166]. Market and Regulatory Environment - The company agreed to pay a civil money penalty of $15 million to the Consumer Financial Protection Bureau (CFPB) related to payment processing and debiting errors [118]. - The Company continues to monitor litigation and rulemaking related to the CFPB's Section 1071, which may impact small business loan processes [121]. - The Company does not expect the EU's Pillar Two Directive to have a material impact on its consolidated financial statements [122]. - There have been no material changes in exposure to market risk since the most recent fiscal year end [212]. Investment and Funding - The company issued $163.9 million of asset-backed notes and entered into a $150.0 million consumer loan securitization facility to fund growth in its consumer loan portfolio [191]. - As of September 30, 2025, the company had funding capacity of $816.1 million and no recourse debt obligations maturing until December 2028 [191]. - Cash flows provided by operating activities increased by $212.2 million, or 19.2%, to $1,320.3 million, primarily due to growth in the loan portfolio [206]. - Net cash flows used in investing activities for the current nine-month period were $1,643.0 million, an increase from $1,332.2 million in the prior year [208]. - Net cash provided by financing activities for the current nine-month period was primarily driven by $451.8 million in net borrowings under securitization facilities and $89.0 million under the revolving line of credit, offset by $179.3 million in share repurchases [209]. Stockholder Equity - Total stockholders' equity increased to $1,283.7 million from $1,196.9 million, with book value per share rising to $51.59 from $46.38 [197]. - The company repurchased $155.1 million of common stock under its share repurchase program during the nine months ended September 30, 2025 [198].