ONEMAIN HOLDINGS, INC. REPORTS SECOND QUARTER 2025 RESULTS

Core Insights - OneMain Holdings, Inc. reported strong financial results for Q2 2025, with pretax income of $214 million and net income of $167 million, significantly up from $92 million and $71 million in the same quarter last year [1][3] - The company declared a quarterly dividend of $1.04 per share, payable on August 13, 2025, and repurchased approximately 460 thousand shares for $21 million during the quarter [2][14] - The CEO highlighted the strength of the business model, disciplined underwriting, and strategic initiatives contributing to shareholder value [3] Financial Performance - Total revenue for Q2 2025 was $1.5 billion, a 10% increase from $1.4 billion in Q2 2024, driven by a 10% rise in interest income to $1.3 billion [7][8] - Operating expenses increased by 11% to $415 million, reflecting growth in receivables and strategic investments [9] - Managed receivables reached $25.2 billion, up 7% from $23.7 billion a year earlier, with consumer loan originations totaling $3.9 billion, a 9% increase [6][14] Segment Performance - The Consumer and Insurance Segment reported adjusted pretax income of $231 million and adjusted net income of $173 million for Q2 2025, compared to $163 million and $122 million in the prior year [4][5] - Capital generation for the segment was $222 million, up from $136 million in the previous year, driven by receivable growth and improved credit performance [5][16] - The adjusted earnings per diluted share for the Consumer and Insurance Segment was $1.45, compared to $1.02 in the prior year [4][32] Credit Quality Metrics - The 30+ days delinquency ratio for consumer loans was 5.17%, slightly improved from 5.45% a year ago, while the 90+ days delinquency ratio decreased to 2.12% from 2.33% [9][37] - Net charge-offs were reported at 7.19%, down from 8.29% in the previous year [9][37] Funding and Liquidity - As of June 30, 2025, the company had principal debt balances of $22.4 billion, with 57% secured, and $769 million in cash and cash equivalents [10][11] - The liquidity resources included $1.1 billion of undrawn committed capacity from an unsecured corporate revolver and $9.7 billion of unencumbered receivables [11][26]