OneMain Holdings Inc.

05/01/2026 | Press release | Distributed by Public on 05/01/2026 14:42

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.
An index to our management's discussion and analysis follows:
Topic Page
Forward-Looking Statements
41
Overview
42
Recent Developments and Outlook
43
Results of Operations
44
Segment Results
48
Credit Quality
51
Liquidity and Capital Resources
53
Critical Accounting Policies and Estimates
58
Recent Accounting Pronouncements
58
Seasonality
58
Forward-Looking Statements
This report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead represent only management's current beliefs regarding future events. By their nature, forward-looking statements are subject to risks, uncertainties, assumptions, and other important factors that may cause actual results, performance, or achievements to differ materially from those expressed in or implied by such forward-looking statements. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. We do not undertake any obligation to update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Forward-looking statements include, without limitation, statements concerning future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Statements preceded by, followed by or that otherwise include the words "anticipates," "appears," "assumes," "believes," "can," "continues," "could," "estimates," "expects," "forecasts," "foresees," "goals," "intends," "likely," "objective," "plans," "projects," "target," "trend," "remains," and similar expressions or future or conditional verbs such as "could," "may," "might," "should," "will," or "would" are intended to identify forward-looking statements, but these words are not the exclusive means of identifying forward-looking statements. Important factors that could cause actual results, performance, or achievements to differ materially from those expressed in or implied by forward-looking statements include, without limitation, the following:
•adverse changes and volatility in general economic conditions, including the interest rate environment and the financial markets;
•the sufficiency of our allowance for finance receivable losses;
•increased levels of unemployment and personal bankruptcies;
•the current inflationary environment and related trends affecting our customers;
•natural or accidental events such as earthquakes, hurricanes, pandemics, floods, or wildfires affecting our customers, collateral, or our facilities;
•a failure in or breach of our information, operational or security systems, or infrastructure or those of third parties, including as a result of cyber incidents, war, or other disruptions;
•the adequacy of our credit risk scoring models;
•geopolitical risks, including recent geopolitical actions;
•adverse changes in our ability to attract and retain employees or key executives;
•increased competition or adverse changes in customer responsiveness to our distribution channels or products;
•changes in federal, state, or local laws, regulations, or regulatory policies and practices or increased regulatory scrutiny of our business or industry;
•risks associated with our insurance operations;
•the costs and effects of any actual or alleged violations of any federal, state, or local laws, rules or regulations;
•the costs and effects of any fines, penalties, judgments, decrees, orders, inquiries, investigations, subpoenas, or enforcement or other proceedings of any governmental or quasi-governmental agency or authority;
•our substantial indebtedness and our continued ability to access the capital markets and maintain adequate current sources of funds to satisfy our cash flow requirements;
•our ability to comply with all of our covenants; and
•the effects of any downgrade of our debt ratings by credit rating agencies.
We also direct readers to the other risks and uncertainties discussed in Part I - Item 1A. "Risk Factors" included in our Annual Report and in other documents we file with the SEC.
If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. You should specifically consider the factors identified in this report and in the documents we file with the SEC that could cause actual results to differ before making an investment decision to purchase our securities and should not place undue reliance on any of our forward-looking statements. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.
Overview
We offer consumer loans, which consist of personal loans and auto finance, credit cards, and other products to help customers meet everyday needs and take steps to improve their financial well-being. We service the loans that we retain on our balance sheet, as well as loans owned by third parties. Additionally, our insurance subsidiaries offer optional credit and non-credit insurance and other optional products. We also offer credit cards under our BrightWay brand which are designed to offer a highly digital customer experience while also rewarding customers for responsible credit activity. Our resources allow us to operate in 48 states and provide a seamless experience through our customers' preferred channels, including in person, online or over the phone, using our digital platforms, distribution partnerships, or working with our expert team members at more than 1,300 locations.
OUR PRODUCTS
Our product offerings include:
•Personal Loans - We offer personal loans through our branch network, central operations, direct mail, digital affiliates, and our website, www.onemainfinancial.com, to customers who need timely access to cash. Our personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles, other collateral, or are unsecured. At March 31, 2026, we had approximately 2.3 million personal loans totaling $20.9 billion of net finance receivables, of which 55% were secured by titled property, compared to approximately 2.4 million personal loans totaling $21.4 billion of net finance receivables, of which 53% were secured by titled property at December 31, 2025. We also service personal loans for our whole loan sale partners.
•Auto Finance - We offer secured auto financing originated at the point of purchase through a growing network of franchise and independent dealerships. The loans are non-revolving, with a fixed rate, and have fixed terms generally between three and six years. At March 31, 2026, we had approximately 152 thousand auto finance loans totaling $2.5 billion of net finance receivables, compared to approximately 148 thousand auto finance loans totaling $2.5 billion of net finance receivables at December 31, 2025. We also service auto finance loans for our whole loan sale partners and loans originated by third parties.
•Credit Cards - BrightWay credit cards are originated through a third-party bank partner from which we purchase the receivable balances. The credit cards are offered across our branch network, as well as through direct mail, our digital affiliates, and our website. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured. At March 31, 2026, we had approximately 1.2 million open credit card customer accounts, totaling $983 million of net finance receivables, compared to approximately 1.1 million open credit card customer accounts, totaling $936 million of net finance receivables at December 31, 2025.
•Optional Products - We offer our customers optional credit insurance products (life, disability, and involuntary unemployment insurance) and optional non-credit insurance products through both our branch network and our central operations. Credit insurance and non-credit insurance products are provided by our affiliated insurance companies. We offer Guaranteed Asset Protection ("GAP") coverage as a waiver product or insurance. We also offer optional membership plans from an unaffiliated company.
OUR SEGMENT
At March 31, 2026, Consumer and Insurance ("C&I") is our only reportable segment, which includes consumer loans, credit cards, and optional products. At March 31, 2026, we had $26.1 billion of managed receivables due from approximately 3.8 million customer accounts, compared to $26.3 billion of managed receivables due from approximately 3.8 million customer accounts at December 31, 2025.
The remaining components (which we refer to as "Other") consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans held for sale and reported in Other assets in our condensed consolidated balance sheets. See Note 13 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information about our segment.
Recent Developments and Outlook
RECENT DEVELOPMENTS
Issuances and Redemptions of Unsecured Debt
On January 15, 2026, OMFC paid a net aggregate amount of $436 million, inclusive of accrued interest and premium, to complete the redemption of its 7.125% Senior Notes due 2026.
For information about the issuances and redemptions of our unsecured debt, see "Liquidity and Capital Resources" under Management's Discussion and Analysis of Financial Condition and Results of Operations in this report.
Securitization Transactions Completed - ODART 2026-1
For information regarding the issuances of our secured debt, see "Liquidity and Capital Resources" under Management's
Discussion and Analysis of Financial Condition and Results of Operations in this report.
Cash Dividends to OMH's Common Stockholders
For information regarding the quarterly dividends declared by OMH, see "Liquidity and Capital Resources" under Management's Discussion and Analysis of Financial Condition and Results of Operations in this report.
OUTLOOK
We actively monitor the current macroeconomic environment and remain prepared for any developments that may impact our business. Our financial condition and results of operations could be affected by macroeconomic conditions, including changes in unemployment, inflation, interest rates, consumer confidence, and geopolitical actions. We incorporate updates to our macroeconomic assumptions, as necessary, which could lead to adjustments in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.
Our experienced management team remains focused on maintaining a strong balance sheet with a long liquidity runway and adequate capital while maintaining a conservative and disciplined underwriting model. We believe we are well positioned to serve our customers and execute on our strategic priorities, including:
•striving to be the lender of choice for nonprime consumers and improve their financial well-being;
•continuing to expand our product offerings and grow our receivables;
•maintaining a rigorous focus on maximizing returns while minimizing credit risk;
•leveraging our scale and cost discipline across the Company to deliver improved operating leverage; and
•maintaining a strong liquidity level with diversified funding sources.
We believe our commitment to closely monitor the macroeconomic environment, retain disciplined underwriting, drive strategic growth initiatives, and attract and retain top talent strengthens our ability to navigate challenges and seize opportunities. With a robust balance sheet and a focus on our key initiatives, we are confident in our ability to increase shareholder value and remain resilient and adaptable to navigate an ever-evolving economic, social, political, and regulatory landscape.
Results of Operations
The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this section relates only to OMH. See Note 1 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information.
OMH'S CONSOLIDATED RESULTS
The following table below presents OMH's consolidated operating results and selected financial statistics. A further discussion of OMH's operating results for our operating segment is provided under "Segment Results" below.
At or for the
Three Months Ended March 31,
(dollars in millions, except per share amounts) 2026 2025
Interest income $ 1,387 $ 1,308
Interest expense 322 312
Provision for finance receivable losses 465 456
Net interest income after provision for finance receivable losses
600 540
Other revenues 197 188
Other expenses 501 453
Income before income taxes
296 275
Income taxes 70 62
Net income $ 226 $ 213
Share Data:
Earnings per share:
Diluted $ 1.93 $ 1.78
Selected Financial Statistics *
Total finance receivables:
Net finance receivables $ 24,447 $ 23,328
Average net receivables $ 24,626 $ 23,453
Gross charge-off ratio 10.13 % 9.69 %
Recovery ratio (1.72) % (1.53) %
Net charge-off ratio 8.41 % 8.16 %
At or for the
Three Months Ended March 31,
(dollars in millions, except per share amounts) 2026 2025
Selected Financial Statistics, continued *
Personal loans:
Net finance receivables $ 20,918 $ 20,469
Origination volume $ 2,728 $ 2,680
Number of accounts 2,345,154 2,327,426
Number of accounts originated 258,055 248,085
Auto finance:
Net finance receivables $ 2,546 $ 2,183
Origination volume $ 376 $ 342
Number of accounts 152,036 132,276
Number of accounts originated 17,088 15,757
Consumer loans:
Net finance receivables $ 23,464 $ 22,652
Yield 22.60 % 22.54 %
Origination volume $ 3,104 $ 3,022
Number of accounts 2,497,190 2,459,702
Number of accounts originated 275,143 263,842
Net charge-off ratio 8.02 % 7.82 %
30-89 Delinquency ratio 2.83 % 2.77 %
Credit cards:
Net finance receivables $ 983 $ 676
Purchase volume $ 334 $ 249
Number of open accounts 1,170,377 836,421
Debt balances:
Long-term debt balance $ 22,396 $ 21,494
Average daily debt balance $ 22,157 $ 21,675
* See "Glossary" at the beginning of this report for formulas and definitions of our key performance ratios.
Comparison of Consolidated Results for Three Months Ended March 31, 2026 and 2025
Interest income increased $79 million or 6% in the three months ended March 31, 2026 when compared to the same period in 2025 due to growth in average net receivables.
Interest expense increased $10 million or 3% in the three months ended March 31, 2026 when compared to the same period in 2025 due to an increase in average debt to support our receivables growth.
Provision for finance receivable losses increased $9 million or 2% in the three months ended March 31, 2026 when compared to the same period in 2025 due to growth in receivables and higher net charge-offs.
Other revenues increased $9 million or 5% in the three months ended March 31, 2026 when compared to the same period in 2025 driven by increases in servicing revenue on loans serviced for others and credit card revenue from growth in new accounts.
Other expenses increased $48 million or 11% in the three months ended March 31, 2026 when compared to the same period in 2025 driven by increases in salaries and benefits expense and general operating expenses due to growth in receivables and our strategic investments in the business, as well as restructuring charges in the current period not present in the prior period.
Income taxes increased $8 million or 13% in the three months ended March 31, 2026 when compared to the same period in 2025 due to higher pretax income.
NON-GAAP FINANCIAL MEASURES
Management uses C&I adjusted pretax income (loss), a non-GAAP financial measure, as a key performance measure of our segment. C&I adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes net gain or loss resulting from repurchases and repayments of debt, restructuring charges, and other items and strategic activities. Management believes C&I adjusted pretax income (loss) is useful in assessing the profitability of our segment.
Management also uses pretax capital generation, a non-GAAP financial measure, as a key performance measure of our segment. This measure represents C&I adjusted pretax income as discussed above and excludes the change in our C&I allowance for finance receivable losses in the period while still considering the C&I net charge-offs incurred during the period. Management believes that pretax capital generation is useful in assessing the capital created in the period impacting the overall capital adequacy of the Company. Management believes that the Company's reserves, combined with its equity, represent the Company's loss absorption capacity.
Management utilizes both C&I Adjusted pretax income (loss) and Pretax capital generation in evaluating our performance. Additionally, both of these non-GAAP measures are consistent with the performance goals established in OMH's executive compensation program. C&I adjusted pretax income (loss) and pretax capital generation are non-GAAP financial measures and should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP.
OMH's reconciliations of Income before income tax expense on a Segment Accounting Basis to C&I Adjusted pretax income (non-GAAP) and Pretax capital generation (non-GAAP) were as follows:
Three Months Ended
March 31,
(dollars in millions) 2026 2025
Consumer and Insurance
Income before income taxes - Segment Accounting Basis
$ 293 $ 270
Adjustments:
Net loss on repurchases and repayments of debt
3 5
Restructuring charges 7 -
Other
2 -
Adjusted pretax income (non-GAAP)
305 275
Provision for finance receivable losses 465 456
Net charge-offs (512) (473)
Pretax capital generation (non-GAAP) $ 258 $ 258
Segment Results
The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this section relates only to OMH. See Note 1 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information.
See Note 13 of the Notes to the Condensed Consolidated Financial Statements included in this report for a description of our segment and methodologies used to allocate revenues and expenses to our C&I segment and for reconciliations of segment total to condensed consolidated financial statement amounts.
CONSUMER AND INSURANCE
The following table below presents OMH's adjusted pretax income and selected financial statistics for C&I on an adjusted Segment Accounting Basis.
At or for the
Three Months Ended March 31,
(dollars in millions) 2026 2025
Interest income $ 1,383 $ 1,301
Interest expense 322 311
Provision for finance receivable losses 465 456
Net interest income after provision for finance receivable losses
596 534
Other revenues 198 191
Other expenses 489 450
Adjusted pretax income (non-GAAP) $ 305 $ 275
Selected Financial Statistics *
Total finance receivables:
Net finance receivables $ 24,463 $ 23,365
Average net receivables $ 24,645 $ 23,494
Gross charge-off ratio 10.13 % 9.70 %
Recovery ratio (1.72) % (1.53) %
Net charge-off ratio 8.41 % 8.17 %
At or for the
Three Months Ended March 31,
(dollars in millions) 2026 2025
Selected Financial Statistics, continued *
Personal loans:
Net finance receivables $ 20,918 $ 20,469
Origination volume $ 2,728 $ 2,680
Number of accounts 2,345,154 2,327,426
Number of accounts originated 258,055 248,085
Auto finance:
Net finance receivables $ 2,562 $ 2,220
Origination volume $ 376 $ 342
Number of accounts 152,036 132,276
Number of accounts originated 17,088 15,757
Consumer loans:
Net finance receivables $ 23,480 $ 22,689
Yield 22.52 % 22.39 %
Origination volume $ 3,104 $ 3,022
Number of accounts 2,497,190 2,459,702
Number of accounts originated 275,143 263,842
Net charge-off ratio 8.02 % 7.83 %
30-89 Delinquency ratio 2.84 % 2.77 %
Credit cards:
Net finance receivables $ 983 $ 676
Purchase volume $ 334 $ 249
Number of open accounts 1,170,377 836,421
* See "Glossary" at the beginning of this report for formulas and definitions of our key performance ratios.
Comparison of Adjusted Pretax Income for Three Months Ended March 31, 2026 and 2025
Interest income increased $82 million or 6% in the three months ended March 31, 2026 when compared to the same period in 2025 due to growth in average net receivables.
Interest expense increased $11 million or 4% in the three months ended March 31, 2026 when compared to the same period in 2025 due to an increase in average debt to support our receivables growth.
Provision for finance receivable losses increased $9 million or 2% in the three months ended March 31, 2026 when compared to the same period in 2025 due to growth in receivables and higher net charge-offs.
Other revenues increased $7 million or 4% in the three months ended March 31, 2026 when compared to the same period in 2025 driven by increases in servicing revenue on loans serviced for others and credit card revenue from growth in new accounts.
Other expenses increased $39 million or 9% in the three months ended March 31, 2026 when compared to the same period in 2025 driven by increases in salaries and benefits expense and general operating expenses due to growth in receivables and our strategic investments in the business.
Credit Quality
FINANCE RECEIVABLES
Our net finance receivables, consisting of consumer loans and credit cards, were $24.4 billion at March 31, 2026 and $24.8 billion at December 31, 2025. We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. Our branch and central operation team members work closely with customers as necessary and offer a variety of borrower assistance programs to help support our customers.
DELINQUENCY
We monitor delinquency trends to evaluate the risk of future credit losses and employ advanced analytical tools to manage performance. Team members are actively engaged in collection activities throughout the early stages of delinquency. We closely track and report the percentage of receivables that are contractually 30-89 days past due as a benchmark of portfolio quality, collections effectiveness, and as a strong indicator of losses in coming quarters.
When consumer loans are contractually 60 days past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. Use of our central operations teams for managing late-stage delinquency allows us to apply more advanced collection techniques and tools to drive credit performance and operational efficiencies.
We consider our consumer loans to be nonperforming at 90 days contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For credit cards, we accrue finance charges and fees until charge-off at 180 days contractually past due, at which point we reverse finance charges and fees previously accrued.
The delinquency information for net finance receivables on a Segment Accounting Basis was as follows:
Consumer and Insurance
(dollars in millions)
Consumer Loans
Credit Cards
March 31, 2026
Current
$ 22,220 $ 868
30-89 days past due
666 47
90+ days past due
594 68
Total net finance receivables
$ 23,480 $ 983
Delinquency ratio
30-89 days past due
2.84 % 4.74 %
30+ days past due 5.37 % 11.69 %
90+ days past due 2.53 % 6.95 %
December 31, 2025
Current
$ 22,518 $ 820
30-89 days past due 803 50
90+ days past due
596 66
Total net finance receivables
$ 23,917 $ 936
Delinquency ratio
30-89 days past due
3.36 % 5.38 %
30+ days past due 5.85 % 12.43 %
90+ days past due 2.49 % 7.05 %
ALLOWANCE FOR FINANCE RECEIVABLE LOSSES
We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions.
Our methodology to estimate expected credit losses uses recent macroeconomic forecasts, which include forecasts for unemployment. We leverage projections from various industry leading providers. We also consider inflationary pressures, consumer confidence levels, and elevated interest rates that may continue to impact the economic outlook. At March 31, 2026, our economic forecast used a reasonable and supportable period of 12 months. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.
Changes in our allowance for finance receivable losses were as follows:
(dollars in millions) Consumer and Insurance Segment to
GAAP
Adjustment 		Consolidated
Total
Consumer Loans
Credit Cards
Three Months Ended March 31, 2026
Balance at beginning of period
$ 2,659 $ 209 $ (3) $ 2,865
Provision for finance receivable losses
419 46 - 465
Charge-offs
(567) (49) 1 (615)
Recoveries
98 6 - 104
Balance at end of period
$ 2,609 $ 212 $ (2) $ 2,819
Net finance receivables
$ 23,480 $ 983 $ (16) $ 24,447
Allowance ratio
11.11 % 21.54 % N/A 11.53 %
Three Months Ended March 31, 2025
Balance at beginning of period
$ 2,572 $ 138 $ (5) $ 2,705
Provision for finance receivable losses
409 47 - 456
Charge-offs
(525) (36) - (561)
Recoveries
85 3 - 88
Balance at end of period
$ 2,541 $ 152 $ (5) $ 2,688
Net finance receivables
$ 22,689 $ 676 $ (37) $ 23,328
Allowance ratio
11.20 % 22.50 % N/A 11.52 %
The current delinquency status of our finance receivable portfolio, inclusive of recent borrower performance and loss performance, volume of our modified finance receivable activity, level and recoverability of collateral securing our finance receivable portfolio, portfolio mix, and the reasonable and supportable forecast of economic conditions are the primary drivers that can cause fluctuations in our allowance ratio from period to period. We monitor the allowance ratio to ensure we have a sufficient level of allowance for finance receivable losses based on the estimated lifetime expected credit losses in our finance receivable portfolio. The allowance for finance receivable losses as a percentage of net finance receivables remained consistent compared to the prior year period. See Note 4 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information about the changes in the allowance for finance receivable losses.
Liquidity and Capital Resources
SOURCES AND USES OF FUNDS
We finance the majority of our operating liquidity and capital needs through a combination of cash flows from operations, secured debt, unsecured debt, borrowings from revolving conduit facilities, credit card revolving VFN facilities, the unsecured corporate revolver, whole loan sales, and equity. We may also utilize other sources in the future. As a holding company, all of the funds generated from our operations are earned by our operating subsidiaries. Our operating subsidiaries' primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses, payment of insurance claims, and supporting strategic initiatives.
We have previously purchased portions of our unsecured indebtedness, and we may elect to purchase additional portions of our unsecured indebtedness or securitized borrowings in the future. Future purchases may be made through the open market, privately negotiated transactions with third parties, or pursuant to one or more tender or exchange offers, all of which are subject to terms, prices, and consideration we may determine at our discretion.
During the three months ended March 31, 2026, OMH generated net income of $226 million. OMH's net cash inflow from operating and investing activities totaled $512 million for the three months ended March 31, 2026. At March 31, 2026, our scheduled interest payments for the remainder of 2026 totaled $472 million and there were no scheduled principal payments for 2026 on our existing unsecured debt. As of March 31, 2026, we had $11.4 billion of unencumbered receivables.
Based on our estimates and considering the risks and uncertainties of our plans, we believe that we will have adequate liquidity to finance and operate our businesses and repay our obligations as they become due.
OMFC's Issuances, Redemptions, and Repurchases of Unsecured Debt
On January 15, 2026, OMFC paid a net aggregate amount of $436 million, inclusive of accrued interest and premium, to complete the redemption of its 7.125% Senior Notes due 2026.
OMFC's Unsecured Corporate Revolver
At March 31, 2026, the borrowing capacity of our corporate revolver was $1.1 billion.
Securitizations, Revolving Conduit Facilities, and Credit Card Revolving VFN Facilities
During the three months ended March 31, 2026, we completed one new consumer loan securitization (ODART 2026-1, see "Securitized Borrowings" below) and redeemed one consumer loan securitization (ODART 2021-1). At March 31, 2026, the borrowing capacity of our revolving conduit facilities was $5.9 billion. At March 31, 2026, we had $12.7 billion of consumer loan gross finance receivables pledged as collateral for our securitizations, revolving conduit facilities, and private secured term funding facility.
At March 31, 2026, the borrowing capacity of our credit card revolving VFN facilities was $500 million. At March 31, 2026, we had $643 million of credit card principal balances held in OneMain Financial Credit Card Trust ("OMFCT") for our credit card revolving VFN facilities.
Private Secured Term Funding
At March 31, 2026, the maximum borrowing capacity of $350 million was outstanding under the remaining private secured term funding facility. Principal payments on any outstanding balances are not required until after October 2027 followed by a subsequent amortization period, which upon expiration the outstanding principal is due and payable.
See Notes 6 and 7 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information on our long-term debt, securitization transactions, private secured term funding facility, revolving conduit facilities, and credit card revolving VFN facilities.
Credit Ratings
Our credit ratings impact our ability to access capital markets and our borrowing costs. Rating agencies base their ratings on numerous factors, including liquidity, capital adequacy, asset quality, quality of earnings, and the probability of systemic support. Significant changes in these factors could result in different ratings.
The table below outlines OMFC's long-term corporate debt ratings and outlook by rating agencies:
As of March 31, 2026
Rating Outlook
S&P BB Stable
Moody's Ba2 Stable
KBRA BB+ Stable
Currently, no other entity has a corporate debt rating, though they may be rated in the future.
Stock Repurchased
During the three months ended March 31, 2026, OMH repurchased 1,901,698 shares of its common stock through its stock repurchase program for an aggregate total of $107 million, including commissions, fees and excise taxes. As of March 31, 2026, OMH held a total of 20,397,289 shares of treasury stock. To provide funding for the OMH stock repurchases, the OMFC Board of Directors authorized dividend payments in the amount of $130 million.
For additional information regarding the shares repurchased, see Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of Part II included in this report.
Cash Dividend to OMH's Common Stockholders
As of March 31, 2026, the dividend declarations for the current year by the Board were as follows:
Declaration Date Record Date Payment Date Dividend Per Share Amount Paid
(in millions)
February 5, 2026 February 17, 2026 February 23, 2026 $ 1.05 $ 123
Total $ 1.05 $ 123
To provide funding for the dividend, OMFC paid dividends of $121 million to OMH during the three months ended March 31, 2026.
On May 1, 2026, OMH declared a dividend of $1.05 per share payable on May 15, 2026 to record holders of OMH's common stock as of the close of business on May 11, 2026. To provide funding for the OMH dividend, the OMFC Board of Directors authorized a dividend in the amount of up to $125 million payable on or after May 12, 2026.
While OMH intends to pay its minimum quarterly dividend, currently $1.05 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant. OMH's dividend payments may change from time to time, and the Board may choose not to continue to declare dividends in the future. See our "Dividend Policy" in Part II - Item 5 included in our Annual Report for further information.
Whole Loan Sale Transactions
We have whole loan sale flow agreements with third parties. The Company is committed to sell a remaining total of $2.1 billion gross receivables of newly originated unsecured personal loans along with any associated accrued interest with a current term of less than three years.
During the three months ended March 31, 2026, we sold a total of $341 million of gross finance receivables compared to $255 million during the three months ended March 31, 2025. See Note 3 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information on the whole loan sale transactions.
LIQUIDITY
OMH's Operating Activities
Net cash provided by operations of $739 million for the three months ended March 31, 2026 reflected net income of $226 million, the impact of non-cash items including provision for finance receivable losses of $465 million, and an unfavorable change in working capital of $50 million. Net cash provided by operations of $665 million for the three months ended March 31, 2025 reflected net income of $213 million, the impact of non-cash items including provision for finance receivable losses of $456 million, and an unfavorable change in working capital of $87 million.
OMH's Investing Activities
Net cash used for investing activities of $227 million for the three months ended March 31, 2026 was due to net principal originations and purchases of finance receivables and purchases of available-for-sale securities, offset by the proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale securities. Net cash used for investing activities of $331 million for the three months ended March 31, 2025 was due to net principal originations and purchases of finance receivables and purchases of available-for-sale and other securities, offset by the proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale and other securities.
OMH's Financing Activities
Net cash used for financing activities of $563 million and $113 million for the three months ended March 31, 2026 and 2025, respectively, was due to repayments and repurchases of long-term debt, cash dividends paid, and common stock repurchased, partially offset by the issuances and borrowings of long-term debt.
OMH's Cash and Investments
At March 31, 2026, we had $834 million of cash and cash equivalents, which included $155 million of cash and cash equivalents held at our regulated insurance subsidiaries or for other operating activities that is unavailable for general corporate purposes.
At March 31, 2026, we had $1.6 billion of investment securities, which are all held as part of our insurance operations and are unavailable for general corporate purposes.
Liquidity Risks and Strategies
OMFC's credit ratings are non-investment grade, which may have a significant impact on our cost and could potentially impact our access to capital. This, in turn, can negatively affect our ability to manage our liquidity and our ability or cost to refinance our indebtedness. There are numerous risks to our financial results, liquidity, capital raising, and debt refinancing plans, some of which may not be quantified in our current liquidity forecasts. These risks are further described in our "Liquidity and Capital Resources" of Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II - Item 7 included in our Annual Report.
The principal factors that could decrease our liquidity are customer delinquencies and defaults, a decline in customer prepayments, rising interest rates, or a prolonged inability to adequately access capital market funding. We intend to support our liquidity position by utilizing strategies that are further described in our "Liquidity and Capital Resources" of Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II - Item 7 included in our Annual Report. However, it is possible that the actual outcome of one or more of our plans could be materially different than expected or that one or more of our significant judgments or estimates could prove to be materially incorrect.
OUR INSURANCE SUBSIDIARIES
Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends. AHL and Triton did not pay dividends during the three months ended March 31, 2026 and 2025. See Note 11 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for further information on these state restrictions and the dividends paid by our insurance subsidiaries.
OUR DEBT AGREEMENTS
The debt agreements which OMFC and its subsidiaries are a party to include customary terms and conditions, including covenants and representations and warranties. See Note 9 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for more information on the restrictive covenants under OMFC's debt agreements, as well as the guarantees of OMFC's long-term debt.
Securitized Borrowings
We execute private securitizations under Rule 144A of the Securities Act of 1933, as amended. As of March 31, 2026, our structured financings consisted of the following:
(dollars in millions) Issue Amount (a) Initial Collateral Balance Current
Note Amounts
Outstanding (a)
Current Collateral Balance (b)
Current
Weighted Average
Interest Rate 		Original
Revolving
Period
OMFIT 2019-2 $ 900 $ 947 $ 900 $ 995 3.30 % 7 years
OMFIT 2019-A 789 892 750 892 3.78 % 7 years
OMFIT 2020-2 1,000 1,053 702 712 2.15 % 5 years
OMFIT 2021-1 850 904 850 904 2.43 % 5 years
OMFIT 2022-S1 600 652 298 328 4.49 % 3 years
OMFIT 2022-2 1,000 1,099 291 402 5.86 % 2 years
OMFIT 2022-3 979 1,090 176 484 6.22 % 2 years
OMFIT 2023-1 825 920 825 920 5.82 % 5 years
OMFIT 2023-2 1,400 1,566 1,400 1,566 5.90 % 3 years
OMFIT 2024-1 1,100 1,222 1,100 1,222 5.99 % 7 years
OMFIT 2025-1 1,000 1,124 1,000 1,124 4.97 % 3 years
ODART 2019-1 737 750 156 180 4.28 % 5 years
ODART 2022-1 600 632 180 183 5.26 % 2 years
ODART 2023-1 750 792 712 720 5.64 % 3 years
ODART 2025-1 900 926 900 926 5.48 % 5 years
ODART 2026-1 850 869 850 869 4.63 % 3 years
FCRT 2022-2 215 233 16 36 7.09 % N/A
FCRT 2023-1 182 199 32 49 6.60 % N/A
FCRT 2023-2 200 208 60 63 6.90 % N/A
FCRT 2024-1 210 214 76 78 6.59 % N/A
Total securitizations $ 15,087 $ 16,292 $ 11,274 $ 12,653
(a) Issue Amount includes the retained interest amounts as applicable and the Current Note Amounts Outstanding balances reflect pay-downs subsequent to note issuance and exclude retained interest amounts.
(b) Inclusive of in-process replenishments of collateral for securitized borrowings in a revolving status as of March 31, 2026.
Revolving Conduit Facilities
We had access to 17 revolving conduit facilities with a total borrowing capacity of $5.9 billion as of March 31, 2026:
(dollars in millions) Advance Maximum Balance Amount
Drawn
OneMain Financial Funding VII, LLC $ 600 $ -
OneMain Financial Auto Funding I, LLC 550 -
Hudson River Funding, LLC 500 -
River Thames Funding, LLC 400 -
OneMain Financial Funding X, LLC 400 -
OneMain Financial Funding XII, LLC 400 -
OneMain Financial Funding XIII, LLC 400 -
Mystic River Funding, LLC 350 -
Thayer Brook Funding, LLC 350 1
Columbia River Funding, LLC 350 -
Hubbard River Funding, LLC 350 -
New River Funding Trust 300 -
St. Lawrence River Funding, LLC 250 -
OneMain Foursight Auto I, LLC 175 -
OneMain Foursight Auto II, LLC 175 -
OneMain Foursight Auto III, LLC 175 -
OneMain Financial Funding XI, LLC 150 -
Total $ 5,875 $ 1
Credit Card Revolving VFN Facilities
We also had access to two credit card revolving VFN facilities with a total borrowing capacity of $500 million as of March 31, 2026:
(dollars in millions) Advance Maximum Balance Amount
Drawn
OneMain Financial Credit Card Trust - Series 2024-VFN1 $ 150 $ -
OneMain Financial Credit Card Trust - Series 2024-VFN2 350 -
Total
$ 500 $ -
OFF-BALANCE SHEET ARRANGEMENTS
We have no material off-balance sheet arrangements as defined by SEC rules, and we had no material off-balance sheet exposure to losses associated with unconsolidated VIEs at March 31, 2026 or December 31, 2025.
Critical Accounting Policies and Estimates
We describe our significant accounting policies used in the preparation of our condensed consolidated financial statements in Note 2 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report. We consider the allowance for finance receivable losses to be a critical accounting policy because it involves critical accounting estimates and a significant degree of management judgment.
There have been no material changes to our critical accounting policies or to our methodologies for deriving critical accounting estimates during the three months ended March 31, 2026.
Recent Accounting Pronouncements
See Note 2 of the Notes to the Condensed Consolidated Financial Statements included in this report for discussion of recently issued accounting pronouncements.
Seasonality
Our consumer loan and credit card volume and demand are generally lowest during the first quarter of the year following the holiday season and as a result of tax refunds, and then increases through the end of the year. Delinquencies follow similar trends, being generally lower during the first quarter of the year and rising throughout the remainder of the year. These seasonal trends contribute to fluctuations in our operating results and cash needs throughout the year.
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