Enova(US:ENVA)2026-01-27 23:00Financial Data and Key Metrics Changes - For the full year of 2025, originations grew 27%, leading to revenue growth of nearly 20%, and Adjusted EPS growth of 42% [10][22] - Fourth quarter revenue increased 15% year-over-year to $839 million, with adjusted EPS rising 33% to $3.46 per diluted share [12][34] - The consolidated net charge-off ratio for the fourth quarter was 8.3%, down from the previous year [13][26] Business Line Data and Key Metrics Changes - Small business revenue grew 34% year-over-year to $383 million, while consumer revenue increased 3% to $446 million [12][23] - Fourth quarter originations for small business increased 48% year-over-year to $1.6 billion, marking the eighth consecutive quarter of year-over-year growth of 20% or more [14][23] - Consumer originations grew 2% year-over-year to $613 million, with a notable acceleration in December [25][40] Market Data and Key Metrics Changes - The unemployment rate in the U.S. decreased to 4.4% in December, indicating a stable labor market [13] - The NFIB Small Business Optimism Index rose to 99.5 in December, reflecting positive sentiment among small business owners [16] Company Strategy and Development Direction - The company plans to close the acquisition of Grasshopper Bank, which is expected to enhance its operational model and expand market access [19][20] - The focus for 2026 includes generating sustainable and profitable growth while driving long-term shareholder value [18][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate varying operating environments, citing strong credit performance and a resilient business model [18][37] - The outlook for 2026 anticipates a 15% increase in originations, with adjusted EPS growth of at least 20% [36] Other Important Information - The company ended the fourth quarter with approximately $1.1 billion of liquidity, providing financial flexibility [32] - Marketing expenses for the fourth quarter were 23% of total revenue, reflecting a strategic investment to capture demand [12][28] Q&A Session Summary Question: Can you discuss the consumer business growth and impacts from the upcoming tax season? - Management noted that consumer growth accelerated in December, with expectations for larger tax refunds potentially benefiting credit performance [40][42] Question: What changes are anticipated in the mix between consumer and small business originations? - Management expects a balanced growth approach, with small business continuing to grow at strong rates while consumer growth stabilizes [50][51] Question: How will the regulatory capital ratios change post-acquisition of Grasshopper Bank? - Management indicated that they expect to maintain a Tangible Capital Ratio around 17%-18% and will focus on investing in new opportunities post-acquisition [62][63] Question: What is the outlook for small business health and growth sustainability? - Management highlighted the stability of the small business credit profile and positive sentiment among small business owners, expecting continued strong growth [84]