OneMain (US:OMF)2025-10-31 20:29Financial Performance - For the three months ended September 30, 2025, interest income was $1,392 million, up from $1,282 million in the same period of 2024, while net income increased to $199 million from $157 million[141]. - The company reported a diluted earnings per share of $1.67 for the three months ended September 30, 2025, compared to $1.31 for the same period in 2024[141]. - Adjusted pretax income (non-GAAP) for the three months ended September 30, 2025, was $303 million, an increase from $202 million in 2024[161]. - OMH generated net income of $579 million for the nine months ended September 30, 2025, with a net cash outflow from operating and investing activities totaling $87 million[184]. Receivables and Loan Performance - As of September 30, 2025, the company reported managed receivables of $25.9 billion from approximately 3.7 million customer accounts, an increase from $24.7 billion and 3.4 million accounts at December 31, 2024[124]. - Net finance receivables for personal loans reached $21,225 million for the three months ended September 30, 2025, up from $20,569 million in 2024, with origination volume increasing to $3,520 million from $3,402 million[143]. - Total net finance receivables reached $24.5 billion as of September 30, 2025, up from $23.6 billion at December 31, 2024[173]. - The allowance for finance receivable losses was $2,815 million at the end of Q3 2025, with an allowance ratio of 11.51%[180]. Charge-Off and Delinquency Ratios - The gross charge-off ratio improved to 8.45% for the three months ended September 30, 2025, compared to 8.89% for the same period in 2024[141]. - The net charge-off ratio decreased to 6.67% for the three months ended September 30, 2025, compared to 7.33% in 2024, reflecting improved credit quality[149]. - The delinquency ratio for consumer loans at 30-89 days past due was 3.20% as of September 30, 2025, slightly up from 3.24% at December 31, 2024[177]. Debt and Financing Activities - The company issued a total of $600 million in Senior Notes due 2032 on March 13, 2025, and subsequently issued $800 million in Senior Notes due 2032 on June 11, 2025[127][128]. - Long-term debt balance increased to $22,338 million for the three months ended September 30, 2025, compared to $21,137 million in 2024[143]. - The average daily debt balance increased to $22,152 million for the three months ended September 30, 2025, from $20,906 million in 2024[143]. - As of September 30, 2025, total securitized borrowings amounted to $15.53 billion, with a current collateral balance of $16.77 billion[212]. Stock and Dividend Activities - The company has authorized a stock repurchase program allowing for the repurchase of up to $1.0 billion of its outstanding common stock, which will expire on December 31, 2028[135]. - OMH declared a total dividend of $3.12 per share for the year, amounting to $372 million, with an additional dividend of $1.05 per share declared on October 31, 2025[199][200]. - During the nine months ended September 30, 2025, OMH repurchased 1,322,347 shares of its common stock for an aggregate total of $69 million[197]. Operational Insights - The company aims to expand its product offerings and grow receivables while maintaining a disciplined underwriting model[137]. - Consumer loan volume typically experiences seasonality, being lowest in Q1 and increasing through the end of the year, which affects operating results and cash needs[221]. - The company reported no material off-balance sheet arrangements or exposure to losses associated with unconsolidated VIEs as of September 30, 2025[217]. Compliance and Controls - The company’s disclosure controls and procedures were evaluated as effective as of September 30, 2025, ensuring compliance with SEC rules[225]. - No changes in internal control over financial reporting were reported during the third quarter of 2025 that materially affected the company[226]. - There have been no material changes to critical accounting policies or methodologies for deriving critical accounting estimates during the nine months ended September 30, 2025[219].