Enova International Q4 Earnings Call Highlights

Core Insights - Enova delivered a record year in 2025 with 27% origination growth leading to nearly 20% revenue growth and 42% adjusted EPS growth, attributed to diversified products and strong risk management [1][6][4] Financial Performance - For 2025, Enova's portfolio reached $4.9 billion, a 23% year-over-year increase, with small business products making up 68% of the portfolio [6] - In Q4 2025, originations were $2.3 billion, up 32% year-over-year, and total revenue increased 15% to $839 million [7] - Adjusted EPS rose 33% year-over-year in Q4 to $3.46 per diluted share, with adjusted EBITDA increasing 21% to $211 million [15] Segment Performance - Small business revenue rose 34% year-over-year to $383 million, while consumer revenue increased about 3% to $446 million [9] - Consumer originations showed strong growth in December, with early January maintaining similar strength [8] Cost and Expenses - Marketing expenses were 23% of total revenue in Q4, with expectations to revert to typical levels while remaining opportunistic [12] - Total operating expenses were 36% of revenue, up from 34% in the previous year [18] Future Outlook - For 2026, Enova targets approximately 15% origination growth and at least 20% adjusted EPS growth, excluding contributions from the Grasshopper acquisition [5][19] - The company expects revenue growth to align with origination growth, assuming a stable macroeconomic environment [19] Acquisition Strategy - Enova's pending acquisition of Grasshopper Bank aims to simplify regulatory structures, expand consumer markets, and provide low-cost funding sources, expected to close in H2 2026 [3][5]