Enova International Inc.
10/22/2026 | Press release | Distributed by Public on 10/22/2026 15:21
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of financial condition, results of operations, liquidity and capital resources and certain factors that may affect future results, including economic and industry-wide factors, of Enova International, Inc. and its subsidiaries should be read in conjunction with our consolidated financial statements and accompanying notes included under Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as with Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025. This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risk, uncertainties, and other factors that could cause actual results to differ materially from those made, projected or implied in the forward-looking statements. Please see "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" for a discussion of the uncertainties, risks and assumptions associated with these statements.
BUSINESS OVERVIEW
We are a leading technology and analytics company focused on providing online financial services. In 2025, we extended approximately $7.8 billion in credit or financing to borrowers and for the nine months ended September 30, 2026, we extended approximately $7.2 billion in credit or financing to borrowers. As of September 30, 2026, we offered or arranged loans or draws on lines of credit to consumers in 38 states in the United States and Brazil. We also offered or arranged financing to small businesses in 49 states and Washington D.C. in the United States. We use our proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing us to offer consumers and small businesses credit or financing when and how they want it. Our customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. We were an early entrant into online lending, launching our online business in 2004, and through September 30, 2026, we have completed approximately 72.9 million customer transactions and collected more than 95 terabytes of currently accessible customer behavior data since launch, allowing us to better analyze and underwrite our specific customer base. We have significantly diversified our business over the past several years, having expanded the markets we serve and the financing products we offer. These financing products include installment loans and line of credit accounts.
We believe our customers highly value our products and services as an important component of their personal or business finances because our products are convenient, quick and often less expensive than other available alternatives. We attribute the success of our business to our advanced and innovative technology systems, the proprietary analytical models we use to predict the performance of loans and finance receivables, our sophisticated customer acquisition programs, our dedication to customer service and our talented employees.
We have developed proprietary underwriting systems based on data we have collected over our more than 21 years of experience. These systems employ advanced risk analytics, including machine learning and artificial intelligence, to decide whether to approve financing transactions, to structure the amount and terms of the financings we offer pursuant to jurisdiction-specific regulations and to provide customers with their funds quickly and efficiently. Our systems closely monitor collection and portfolio performance data that we use to continually refine machine learning-enabled analytical models and statistical measures used in making our credit, purchase, marketing and collection decisions. Approximately 90% of models used in our analytical environment are machine learning-enabled.
Our flexible and scalable technology platforms allow us to process and complete customers' transactions quickly and efficiently. In 2025, we processed approximately 4.3 million transactions, and we continue to grow our loan and finance receivable portfolios and increase the number of customers we serve through desktop, tablet and mobile platforms. Our highly customizable technology platforms allow us to efficiently develop and deploy new products to adapt to evolving regulatory requirements and consumer preference, and to enter new markets quickly.
We have been able to consistently acquire new customers and successfully generate repeat business from returning customers when they need financing. We believe our customers are loyal to us because they are satisfied with our products and services. We acquire new customers from a variety of sources, including visits to our own websites, mobile sites or applications, and through direct marketing, affiliate marketing, lead providers and relationships with other lenders. We believe that the online convenience of our products and our 24/7 availability to accept applications with quick approval decisions are important to our customers.
Once a potential customer submits an application, we quickly provide a credit or purchase decision. If a loan or financing is approved, we or our lending partner typically fund the loan or financing the next business day or, in some cases, the same day. During the entire process, from application through payment, we provide access to our well-trained customer service team. All of our operations, from customer acquisition through collections, are structured to build customer satisfaction and loyalty, in the event that a customer has a need for our products in the future. We have developed a series of sophisticated proprietary scoring models to support our various products. We believe that these models are an integral component of our operations and allow us to complete a high volume of customer
transactions while actively managing risk and the related credit quality of our loan and finance receivable portfolios. We believe our successful application of these technological innovations differentiates our capabilities relative to competing platforms as evidenced by our history of strong growth and stable credit quality.
PRODUCTS AND SERVICES
Our online financing products and services provide customers with a deposit of funds to their bank account in exchange for a commitment to repay the amount deposited plus fees and/or interest. We originate, arrange, guarantee, purchase or purchase a participating interest in installment loans and line of credit accounts to consumers and small businesses. We have one reportable segment that includes all of our online financial services. Our loans and finance receivables generally have regular payments that amortize principal. Interest income is generally recognized on an effective, non-accelerated yield basis over the contractual term of the installment loan or estimated outstanding period of the draw on line of credit accounts.
•
Consumer installment loans. Certain subsidiaries (i) directly offer installment loans, (ii) as part of our Bank Programs, as discussed below, purchase, or purchase a participating interest in, installment loans or (iii) as part of our CSO program, arrange and guarantee installment loans, as discussed below, to consumers in 36 states in the United States. Internationally, we also offer or arrange unsecured consumer installment loan products in Brazil. Terms for our consumer installment loan products range between 3 and 60 months with an average contractual term of 39 months. These loans have regular payments that amortize principal. Loan sizes for these products range between $300 and $10,000. The majority of these loans accrue interest daily at a fixed rate for the life of the loan and have no fees. The average annualized yield for these loans was 90% for the year ended December 31, 2025. Loans may be repaid early at any time with no additional prepayment charges.
•
Small business installment loans. Certain subsidiaries offer, or arrange through our Bank Programs, small business installment loans in 49 states and in Washington D.C. in the United States. Terms for these products range between 6 and 24 months with an average contractual term of 15 months. These loans have regular payments that amortize principal. Loan sizes for these products range between $5,000 and $400,000. There is generally a fee paid upon origination, and total interest is typically calculated at a fixed rate for the life of the loan. A portion of the interest is forgivable if prepaid early, although we also offer a full prepayment forgiveness option at a higher interest rate. The average annualized yield for these products was 48% for the year ended December 31, 2025.
•
Consumer line of credit accounts. Certain subsidiaries directly offer, or purchase participation interests in receivables through our Bank Programs, new consumer line of credit accounts in 33 states (and continue to service existing line of credit accounts in two additional states) in the United States. Line of credit accounts allow customers to draw on their unsecured line of credit in increments of their choosing up to their credit limit, which ranges between $100 and $7,000. Customers may pay off their account balance in full at any time or make required minimum payments in accordance with the terms of the line of credit account. The repayment period varies depending upon certain factors, which may include outstanding principal and differences in minimum payment calculations by product. Customers are typically charged a fee when funds are drawn and subsequently incur fee- or interest-based charges at a fixed rate, depending upon the product and the state in which the customer resides. The average annualized yield for these products was 147% for the year ended December 31, 2025.
•
Small business line of credit accounts. Certain subsidiaries offer, or arrange through our Bank Programs, small business line of credit accounts in 49 states and in Washington D.C. in the United States. Terms for these products range between 12 and 24 months with regular payments that amortize principal. Loan sizes for these products range between $5,000 and $200,000. Interest is calculated at a fixed rate based on the outstanding balance. There is generally no fee paid upon origination with the exception of one of our small business line of credit products, which has an origination fee when allowed by state law. The average annualized yield for these products was 49% for the year ended December 31, 2025.
•
CSO program. We currently operate a credit services organization or credit access business ("CSO") program in Texas. Through our CSO program, we provide services related to a third-party lender's installment consumer loan products by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws. Services offered under our CSO program include credit-related services such as arranging loans with an independent third-party lender and assisting in the preparation of loan applications and loan documents ("CSO loans"). When a consumer executes an agreement with us under our CSO program, we agree, for a fee payable to us by the consumer, to provide certain services, one of which is to guarantee the consumer's obligation to repay the loan received by the consumer from the third-party lender if the consumer fails to do so. For CSO loans, the lender is responsible for providing the criteria by which the consumer's application is underwritten and, if approved, determining the amount of the consumer loan. We, in turn, are responsible for assessing whether or not we will guarantee such loan. The guarantee represents an obligation to purchase the loan, which has terms of up to six months, if it goes into default.
•
Bank programs. Certain subsidiaries operate programs with certain banks ("Bank Programs") to provide marketing services and loan servicing for certain installment loans and line of credit accounts. The Bank Programs that relate to the consumer portfolio in the United States include near-prime unsecured installment loans and line of credit accounts for which our subsidiaries receive marketing and servicing fees. The bank has the ability to sell, and the participating subsidiaries have the option, but not the
requirement, to purchase the loans or a participating interest in receivables the bank originates. We do not guarantee the performance of the loans and line of credit accounts originated by the bank. In conjunction with our Brazilian business, we also have a Bank Program with a separate bank in Brazil whereby the bank has the authority to originate loans and collect a service fee. After origination, the loans are purchased by us. The Bank Program that relates to the small business portfolio is with a separate bank and includes installment loans and line of credit accounts. We receive marketing fees while the bank receives origination fees and certain program fees. The bank has the ability to sell and we have the option, but not the requirement, to purchase the installment loans the bank originates and, in the case of line of credit accounts, extensions under those line of credit accounts. We do not guarantee the performance of the loans or line of credit accounts originated by the bank.
•
Money transfer business. Under our Pangea brand, we operate a money transfer platform that allows customers to send money from the United States to Mexico, other Latin American countries and Asia. The customer pays us in U.S. dollars, and we then make local currency available to the intended recipient of the transfer in one of many termination countries. Our revenue model includes a fee per transfer and an exchange rate spread. Our customers can access our proprietary platform via the website, Android app, or iOS (Apple) app.
OUR MARKETS
We currently provide our services in the following countries:
•
United States. We began our online business in the United States in May 2004. As of September 30, 2026, we provided services in all 50 states and Washington D.C. We market our financing products under the names CashNetUSA at www.cashnetusa.com, NetCredit at www.netcredit.com, OnDeck at www.ondeck.com and Headway Capital at www.headwaycapital.com, and we market our money transfer platform under the name Pangea at www.pangeamoneytransfer.com.
•
Brazil. In June 2014, we launched our business in Brazil under the name Simplic at www.simplic.com.br, where we arrange unsecured consumer installment loans for a third-party lender. We plan to continue to invest in and expand our financial services program in Brazil.
Our internet websites and the information contained therein or connected thereto are not intended to be incorporated by reference into this Quarterly Report on Form 10-Q.
RECENT DEVELOPMENTS
As previously disclosed, on December 10, 2025, we entered into an agreement and plan of merger, as amended on December 18, 2025 (as amended the "Merger Agreement") with Grasshopper Bancorp, Inc. ("Grasshopper") a Delaware corporation and the parent holding company of Grasshopper Bank N.A. ("Grasshopper Bank"), a national bank and wholly-owned subsidiary of Grasshopper. Under the terms of the Merger Agreement, Grasshopper was to merge with and into us, with us continuing as the surviving corporation (the "Merger") and, immediately following the Merger, an interim national bank and wholly-owned subsidiary of ours would merge with and into Grasshopper Bank, with Grasshopper Bank continuing as the surviving bank.
On September 14, 2026, we announced that we withdrew our applications with the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System related to the proposed acquisition of Grasshopper. On October 16, 2026, we and Grasshopper entered into the Mutual Termination Agreement and Release (the "Termination Agreement") pursuant to which we and Grasshopper agreed to mutually terminate the Merger Agreement effective as of such date. Under the terms of the Termination Agreement, we made a $4.0 million cash payment to Grasshopper. Neither we nor Grasshopper will pay any other fees or have any other liabilities to each other related to the Merger Agreement.
RECENT REGULATORY DEVELOPMENTS
Consumer Financial Protection Bureau
In October 2017, the Consumer Financial Protection Bureau ("CFPB") issued its final rule entitled "Payday, Vehicle Title, and Certain High-Cost Installment Loans" (the "Small Dollar Rule"), which covers certain consumer loans that we offer. While the ability to repay provisions were rescinded in 2020, the payment provisions remain in effect. These provisions require that if a consumer has two consecutive failed payment attempts, the lender must obtain the consumer's new and specific authorization to make further withdrawals from the consumer's bank account. Additionally, lenders must provide certain notices to consumers before attempting a first payment withdrawal or an unusual withdrawal and after two consecutive failed withdrawal attempts. Following a series of constitutional challenges, the Supreme Court upheld the constitutionality of the funding structure of the CFPB and the Fifth Circuit upheld the Small Dollar Rule. On March 28, 2025, the CFPB issued a press release entitled "CFPB Offers Regulatory Relief for Small Loan Providers" indicating that the CFPB "will not prioritize enforcement or supervision actions with regard to any penalties or fines associated with the Payment Withdrawal provisions and the Payment Disclosure provisions once they become operative on March 30, 2025." The CFPB
also indicated that it is contemplating issuing a notice of proposed rulemaking to narrow the scope of the Small Dollar Rule. If the CFPB elects to prioritize enforcement and we are not able to execute payment process and customer notification changes effectively because of unexpected complexities, costs or otherwise, we cannot guarantee that the Small Dollar Rule will not have a material adverse impact on our business, prospects, results of operations, financial condition and cash flows.
On March 30, 2023, the CFPB issued its initial final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses, and applies to small business loans that we offer. For loans covered by the small business lending rule, a "covered lender" will be required to collect and report on certain information pursuant to an application for credit. Section 1071 requires covered lenders to collect and report information the financial institution generates and information obtained from the applicant, including the applicant's minority-owned business status, women-owned business status and the applicant's principal owners' ethnicity, race and sex. On May 1, 2026, the CFPB issued a revised final rule for Section 1071. The revised final rule made substantive changes to the initial final rule, including changing the definition of a small business, excluding certain products, and streamlining the required data fields. In addition, it extended the compliance deadline to January 1, 2028 and the initial reporting deadline to June 2029. Absent further court action, legislative action or action by the CFPB, including any further extension of the compliance date, the Company's small business loan business will need to update its application process to appropriately collect, store and report data required by Section 1071's implementing regulation. The Company will continue to monitor litigation, rulemaking and bills related to the rule.
European Union Pillar Two Directive
On December 15, 2022, the European Union ("EU") Member States formally adopted the EU's Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development ("OECD") Pillar Two Framework that was supported by over 130 countries worldwide. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation. As of September 30, 2026, among the jurisdictions where the Company operates, only Brazil has enacted legislation adopting the Pillar Two Rules, specifically a Qualified Domestic Minimum Top-up Tax, effective in fiscal 2025. We do not expect the changes brought about by this directive to have a material impact on our consolidated financial statements.
In January 2026, the OECD released administrative guidance establishing a "Side-by-Side" safe harbor for eligible U.S.-headquartered multinational groups, effective for fiscal years beginning on or after January 1, 2026. If elected, this safe harbor generally reduces Pillar Two top-up tax exposure under the Income Inclusion Rule and Undertaxed Profits Rule to zero, while Qualified Domestic Minimum Top-up Taxes in jurisdictions where we operate may continue to apply. The Company continues to monitor and evaluate the "Side-by-Side" safe harbor and the adoption of the administrative guidance through legislation in our operating jurisdictions. We expect to leverage applicable safe harbor provisions beginning with our 2026 fiscal year once enacted in our operating jurisdictions.
One Big Beautiful Bill Act
On July 4, 2025, the "One Big Beautiful Bill Act" (the "OBBBA") was enacted into law. The OBBBA's various provisions include, among other provisions, accelerated tax deductions for qualified property and research expenditures. The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. We have evaluated the OBBBA and reflected its impact on the consolidated financial statements. We will continue to evaluate the full impact of these legislative changes as additional guidance becomes available.
RESULTS OF OPERATIONS
Highlights
Our financial results for the three-month period ended September 30, 2026, or the current quarter, are summarized below.
•
Consolidated total revenue increased $206.5 million, or 25.7%, to $1,009.2 million in the current quarter compared to $802.7 million for the three months ended September 30, 2025, or the prior year quarter.
•
Consolidated net revenue was $614.4 million in the current quarter compared to $460.7 million in the prior year quarter.
•
Consolidated income from operations increased $50.4 million, or 25.6%, to $247.2 million in the current quarter compared to $196.8 million in the prior year quarter.
•
Consolidated net income was $107.3 million in the current quarter compared to $80.3 million in the prior year quarter. Consolidated diluted income per share was $4.06 in the current quarter compared to $3.03 in the prior year quarter.
Overview
The following tables reflect our results of operations for the periods indicated, both in dollars and as a percentage of total revenue (dollars in thousands, except per share data):
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
|||||||||||||
|
Revenue |
||||||||||||||||
|
Loans and finance receivables revenue |
$ |
995,857 |
$ |
791,723 |
$ |
2,775,853 |
$ |
2,281,721 |
||||||||
|
Other |
13,315 |
10,955 |
37,388 |
30,541 |
||||||||||||
|
Total Revenue |
1,009,172 |
802,678 |
2,813,241 |
2,312,262 |
||||||||||||
|
Change in Fair Value |
(394,813 |
) |
(341,971 |
) |
(1,101,857 |
) |
(983,915 |
) |
||||||||
|
Net Revenue |
614,359 |
460,707 |
1,711,384 |
1,328,347 |
||||||||||||
|
Operating Expenses |
||||||||||||||||
|
Marketing |
229,680 |
147,351 |
622,652 |
429,490 |
||||||||||||
|
Operations and technology |
80,690 |
64,564 |
231,305 |
190,674 |
||||||||||||
|
General and administrative |
46,161 |
39,661 |
138,019 |
122,633 |
||||||||||||
|
Depreciation and amortization |
10,616 |
12,356 |
27,943 |
32,765 |
||||||||||||
|
Total Operating Expenses |
367,147 |
263,932 |
1,019,919 |
775,562 |
||||||||||||
|
Income from Operations |
247,212 |
196,775 |
691,465 |
552,785 |
||||||||||||
|
Interest expense, net |
(103,501 |
) |
(86,954 |
) |
(295,365 |
) |
(250,279 |
) |
||||||||
|
Foreign currency transaction (loss) gain |
(901 |
) |
90 |
(957 |
) |
(228 |
) |
|||||||||
|
Equity method investment income |
664 |
258 |
1,303 |
991 |
||||||||||||
|
Other nonoperating expenses |
(632 |
) |
- |
(632 |
) |
(1,019 |
) |
|||||||||
|
Income before Income Taxes |
142,842 |
110,169 |
395,814 |
302,250 |
||||||||||||
|
Provision for income taxes |
35,538 |
29,855 |
92,353 |
72,842 |
||||||||||||
|
Net income |
$ |
107,304 |
$ |
80,314 |
$ |
303,461 |
$ |
229,408 |
||||||||
|
Earnings per common share - diluted |
$ |
4.06 |
$ |
3.03 |
$ |
11.49 |
$ |
8.53 |
||||||||
|
Revenue |
||||||||||||||||
|
Loans and finance receivables revenue |
98.7 |
% |
98.6 |
% |
98.7 |
% |
98.7 |
% |
||||||||
|
Other |
1.3 |
1.4 |
1.3 |
1.3 |
||||||||||||
|
Total Revenue |
100.0 |
100.0 |
100.0 |
100.0 |
||||||||||||
|
Change in Fair Value |
(39.1 |
) |
(42.6 |
) |
(39.2 |
) |
(42.6 |
) |
||||||||
|
Net Revenue |
60.9 |
57.4 |
60.8 |
57.4 |
||||||||||||
|
Operating Expenses |
||||||||||||||||
|
Marketing |
22.8 |
18.4 |
22.1 |
18.6 |
||||||||||||
|
Operations and technology |
8.0 |
8.1 |
8.2 |
8.2 |
||||||||||||
|
General and administrative |
4.6 |
4.9 |
4.9 |
5.3 |
||||||||||||
|
Depreciation and amortization |
1.0 |
1.5 |
1.0 |
1.4 |
||||||||||||
|
Total Operating Expenses |
36.4 |
32.9 |
36.2 |
33.5 |
||||||||||||
|
Income from Operations |
24.5 |
24.5 |
24.6 |
23.9 |
||||||||||||
|
Interest expense, net |
(10.3 |
) |
(10.8 |
) |
(10.5 |
) |
(10.8 |
) |
||||||||
|
Foreign currency transaction (loss) gain |
(0.1 |
) |
- |
- |
- |
|||||||||||
|
Equity method investment income |
0.1 |
- |
- |
- |
||||||||||||
|
Other nonoperating expenses |
- |
- |
- |
- |
||||||||||||
|
Income before Income Taxes |
14.2 |
13.7 |
14.1 |
13.1 |
||||||||||||
|
Provision for income taxes |
3.5 |
3.7 |
3.3 |
3.2 |
||||||||||||
|
Net income |
10.6 |
% |
10.0 |
% |
10.8 |
% |
9.9 |
% |
||||||||
Valuation of Loans and Finance Receivables
We carry our loans and finance receivables at fair value with changes in fair value recognized directly in earnings. We estimate the fair value of our loans and finance receivables primarily using internally-developed, discounted cash flow analyses to more accurately predict future payments. We adjust contractual cash flows for estimated losses, prepayments and servicing costs over the estimated duration of the underlying assets and discount the future cash flows using a rate of return that we believe a market participant would require. Model results may be adjusted by management if we do not believe the output reflects the fair value of the portfolio, as defined under GAAP. The models are updated at each measurement date to capture any changes in internal factors such as nature, term, volume, payment trends, remaining time to maturity, and portfolio mix, as well as changes in underwriting or observed trends expected to impact future performance. We have validated model performance by comparing past valuations with actual performance noted after each valuation.
In 2025 and the first nine months of 2026, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, tariffs and other macroeconomic trends. In certain situations, management concluded that the probability of future charge-offs or prepayments was different than what we had experienced in the past and, therefore, altered those assumptions in our fair value models. We continue to utilize this approach and have adjusted these assumptions where appropriate. We also evaluate the discount rates used in our models on a quarterly basis and adjust when appropriate to be responsive to changes in the market and representative of what a market participant would use. As of September 30, 2026, we deemed the resulting fair value of our loans and finance receivables to be an appropriate market-based exit price that considers current market conditions.
NON-GAAP FINANCIAL MEASURES
In addition to the financial information prepared in conformity with generally accepted accounting principles ("GAAP"), we provide historical non-GAAP financial information. We present non-GAAP financial information because such measures are used by management in understanding the activities and business metrics of our operations. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our business that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business.
We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, our consolidated financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.
Adjusted Earnings Measures
We provide adjusted earnings and adjusted earnings per share, or, collectively, the Adjusted Earnings Measures, which are non-GAAP measures. We believe that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which provides a more complete understanding of our financial performance, competitive position and prospects for the future. We utilize, and also believe that investors utilize, the Adjusted Earnings Measures to assess operating performance, recognizing that such measures may highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, we believe that the Adjusted Earnings Measures are useful to management and investors in comparing our financial results during the periods shown without the effect of certain items that are not indicative of our core operating performance or results of operations.
The following table provides reconciliations between net income and diluted earnings per share calculated in accordance with GAAP to the Adjusted Earnings Measures (in thousands, except per share data):
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
|||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
|||||||||||||
|
Net income |
$ |
107,304 |
$ |
80,314 |
$ |
303,461 |
$ |
229,408 |
||||||||
|
Adjustments: |
||||||||||||||||
|
Transaction-related costs(a) |
1,389 |
- |
5,521 |
- |
||||||||||||
|
Equity method investment income |
(664 |
) |
(258 |
) |
(1,303 |
) |
(991 |
) |
||||||||
|
Other nonoperating expenses(b) |
632 |
- |
632 |
1,019 |
||||||||||||
|
Intangible asset amortization |
260 |
2,014 |
1,769 |
6,041 |
||||||||||||
|
Stock-based compensation expense |
9,422 |
8,535 |
26,878 |
24,577 |
||||||||||||
|
Foreign currency transaction loss (gain) |
901 |
(90 |
) |
957 |
228 |
|||||||||||
|
Cumulative tax effect of adjustments |
(759 |
) |
(1,692 |
) |
(4,231 |
) |
(4,668 |
) |
||||||||
|
Adjusted earnings |
$ |
118,485 |
$ |
88,823 |
$ |
333,684 |
$ |
255,614 |
||||||||
|
Diluted earnings per share |
$ |
4.06 |
$ |
3.03 |
$ |
11.49 |
$ |
8.53 |
||||||||
|
Adjustments: |
||||||||||||||||
|
Transaction-related costs |
0.05 |
- |
0.21 |
- |
||||||||||||
|
Equity method investment income |
(0.02 |
) |
(0.01 |
) |
(0.05 |
) |
(0.04 |
) |
||||||||
|
Other nonoperating expenses |
0.02 |
- |
0.02 |
0.04 |
||||||||||||
|
Intangible asset amortization |
0.01 |
0.08 |
0.07 |
0.22 |
||||||||||||
|
Stock-based compensation expense |
0.36 |
0.32 |
1.02 |
0.91 |
||||||||||||
|
Foreign currency transaction loss (gain) |
0.03 |
- |
0.04 |
0.01 |
||||||||||||
|
Cumulative tax effect of adjustments |
(0.03 |
) |
(0.06 |
) |
(0.16 |
) |
(0.16 |
) |
||||||||
|
Adjusted earnings per share |
$ |
4.48 |
$ |
3.36 |
$ |
12.64 |
$ |
9.51 |
||||||||
(a) In the first nine months of 2026, we recorded costs totaling $5.5 million ($4.2 million net of tax) related to the planned acquisition of Grasshopper.
(b) In the third quarter of 2026 and second quarter of 2025, we recorded other nonoperating expenses of $0.6 million ($0.5 million net of tax) and $1.0 million ($0.8 million net of tax), respectively, related to the early extinguishment of debt.
Adjusted EBITDA
We provide Adjusted EBITDA, which is a non-GAAP measure that we define as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes, stock-based compensation expense and certain other items, as appropriate, that are not indicative of our core operating performance. We utilize, and also believe that investors utilize, Adjusted EBITDA to analyze operating performance and evaluate our ability to incur and service debt and our capacity for making capital expenditures. We believe Adjusted EBITDA is useful to management and investors in comparing our financial results during the periods shown without the effect of certain non-cash items and certain items that are not indicative of our core operating performance or results of operations. Adjusted
EBITDA is also useful to investors to help assess our estimated enterprise value. The computation of Adjusted EBITDA, as presented below, may differ from the computation of similarly-titled measures provided by other companies (dollars in thousands):
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
|||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
|||||||||||||
|
Net income |
$ |
107,304 |
$ |
80,314 |
$ |
303,461 |
$ |
229,408 |
||||||||
|
Depreciation and amortization expenses |
10,616 |
12,356 |
27,943 |
32,765 |
||||||||||||
|
Interest expense, net |
103,501 |
86,954 |
295,365 |
250,279 |
||||||||||||
|
Foreign currency transaction loss (gain) |
901 |
(90 |
) |
957 |
228 |
|||||||||||
|
Provision for income taxes |
35,538 |
29,855 |
92,353 |
72,842 |
||||||||||||
|
Stock-based compensation expense |
9,422 |
8,535 |
26,878 |
24,577 |
||||||||||||
|
Adjustments: |
||||||||||||||||
|
Transaction-related costs(a) |
1,389 |
- |
5,521 |
- |
||||||||||||
|
Equity method investment income |
(664 |
) |
(258 |
) |
(1,303 |
) |
(991 |
) |
||||||||
|
Other nonoperating expenses(b) |
632 |
- |
632 |
1,019 |
||||||||||||
|
Adjusted EBITDA |
$ |
268,639 |
$ |
217,666 |
$ |
751,807 |
$ |
610,127 |
||||||||
|
Adjusted EBITDA margin calculated as follows: |
||||||||||||||||
|
Total Revenue |
$ |
1,009,172 |
$ |
802,678 |
$ |
2,813,241 |
$ |
2,312,262 |
||||||||
|
Adjusted EBITDA |
268,639 |
217,666 |
751,807 |
610,127 |
||||||||||||
|
Adjusted EBITDA as a percentage of total revenue |
26.6 |
% |
27.1 |
% |
26.7 |
% |
26.4 |
% |
||||||||
Refer to footnotes in previous table for explanation of (a) and (b).
Combined Loans and Finance Receivables Measures
In addition to reporting loans and finance receivables balance information in accordance with GAAP (see Note 2 in the Notes to Consolidated Financial Statements included in this report), we have provided metrics on a combined basis. The Combined Loans and Finance Receivables Measures are non-GAAP measures that include both loans and finance receivables we own or have purchased and loans we guarantee, which are either GAAP items or disclosures required by GAAP. See "-Loan and Finance Receivable Balances" and "-Credit Performance of Loans and Finance Receivables" below for reconciliations between Company owned and purchased loans and finance receivables, gross, change in fair value and charge-offs (net of recoveries) calculated in accordance with GAAP to the Combined Loans and Finance Receivables Measures.
We believe these non-GAAP measures provide management and investors with important information needed to evaluate the magnitude of potential receivable losses and the opportunity for revenue performance of the loans and finance receivable portfolio on an aggregate basis. We also believe that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on our consolidated balance sheet since both revenue and cost of revenue are impacted by the aggregate amount of receivables we own and those we guarantee as reflected in our consolidated financial statements.
THREE MONTHS ENDED SEPTEMBER 30, 2026 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2025
Revenue and Net Revenue
Revenue increased $206.5 million, or 25.7%, to $1,009.2 million for the current quarter as compared to $802.7 million for the prior year quarter. The increase was driven by a 31.7% increase in revenue from our small business portfolio and a 21.1% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.
Net revenue for the current quarter was $614.4 million compared to $460.7 million for the prior year quarter. Our consolidated net revenue margin was 60.9% for the current quarter compared to 57.4% for the prior year quarter. Refer to "-Consumer Loans and Finance Receivables" and "-Small Business Loans and Finance Receivables" below for additional discussion of net revenue for the current quarter.
The following table sets forth the components of revenue and net revenue, disaggregated by product, for the current quarter and the prior year quarter (dollars in thousands):
|
Three Months Ended September 30, |
||||||||||||||||
|
2026 |
2025 |
$ Change |
% Change |
|||||||||||||
|
Revenue by product: |
||||||||||||||||
|
Consumer loans and finance receivables revenue |
$ |
537,120 |
$ |
443,413 |
$ |
93,707 |
21.1 |
% |
||||||||
|
Small business loans and finance receivables revenue |
458,737 |
348,310 |
110,427 |
31.7 |
||||||||||||
|
Total loans and finance receivables revenue |
995,857 |
791,723 |
204,134 |
25.8 |
||||||||||||
|
Other |
13,315 |
10,955 |
2,360 |
21.5 |
||||||||||||
|
Total revenue |
1,009,172 |
802,678 |
206,494 |
25.7 |
||||||||||||
|
Change in fair value |
(394,813 |
) |
(341,971 |
) |
(52,842 |
) |
15.5 |
|||||||||
|
Net revenue |
$ |
614,359 |
$ |
460,707 |
$ |
153,652 |
33.4 |
% |
||||||||
|
Revenue by product (% to total): |
||||||||||||||||
|
Consumer loans and finance receivables revenue |
53.2 |
% |
55.2 |
% |
||||||||||||
|
Small business loans and finance receivables revenue |
45.5 |
43.4 |
||||||||||||||
|
Total loans and finance receivables revenue |
98.7 |
98.6 |
||||||||||||||
|
Other |
1.3 |
1.4 |
||||||||||||||
|
Total revenue |
100.0 |
100.0 |
||||||||||||||
|
Change in fair value |
(39.1 |
) |
(42.6 |
) |
||||||||||||
|
Net revenue |
60.9 |
% |
57.4 |
% |
||||||||||||
Revenue generated from the Company's operations for the current quarter and the prior year quarter was as follows (in thousands):
|
Three Months Ended September 30, |
||||||||
|
2026 |
2025 |
|||||||
|
Loan interest |
$ |
658,746 |
$ |
535,330 |
||||
|
Statement and draw fees on line of credit accounts |
294,382 |
219,017 |
||||||
|
Other |
56,044 |
48,331 |
||||||
|
Total Revenue |
$ |
1,009,172 |
$ |
802,678 |
||||
Loan and Finance Receivable Balances
The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $6,596.0 million and $5,012.9 million as of September 30, 2026 and 2025, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $5,690.3 million and $4,344.9 million as of September 30, 2026 and 2025, respectively. The fair value of the combined loan and finance receivables portfolio includes $27.6 million and $24.4 million with an outstanding principal balance of $16.8 million and $17.3 million of consumer loan balances that are guaranteed by us but not owned by us, which are not included in our consolidated financial statements as of September 30, 2026 and 2025, respectively.
The consumer portfolio balance was 32.6% of our combined loan and finance receivable portfolio balance at fair value as of September 30, 2026 compared to 34.1% as of September 30, 2025. Our small business portfolio of loans and finance receivables was 67.4% of our combined loan and finance receivable portfolio at fair value as of September 30, 2026 compared to 65.9% as of September 30, 2025. See "Non-GAAP Financial Measures-Combined Loans and Finance Receivables Measures" above for additional information related to combined loans and finance receivables.
The following table summarizes loan and finance receivable balances outstanding as of September 30, 2026 and 2025 (dollars in thousands):
|
As of September 30, 2026 |
As of September 30, 2025 |
|||||||||||||||||||||||
|
Guaranteed |
Guaranteed |
|||||||||||||||||||||||
|
Company |
by the |
Company |
by the |
|||||||||||||||||||||
|
Owned(a) |
Company(a) |
Combined(b) |
Owned(a) |
Company(a) |
Combined(b) |
|||||||||||||||||||
|
Consumer loans and finance receivables |
||||||||||||||||||||||||
|
Principal |
$ |
1,732,218 |
$ |
16,758 |
$ |
1,748,976 |
$ |
1,396,611 |
$ |
17,301 |
$ |
1,413,912 |
||||||||||||
|
Fair value |
2,130,927 |
27,619 |
2,158,546 |
1,694,839 |
24,372 |
1,719,211 |
||||||||||||||||||
|
Fair value as a % of principal |
123.0 |
% |
164.8 |
% |
123.4 |
% |
121.4 |
% |
140.9 |
% |
121.6 |
% |
||||||||||||
|
Small business loans and finance receivables |
||||||||||||||||||||||||
|
Principal |
$ |
3,958,111 |
$ |
- |
$ |
3,958,111 |
$ |
2,948,290 |
$ |
- |
$ |
2,948,290 |
||||||||||||
|
Fair value |
4,465,040 |
- |
4,465,040 |
3,318,014 |
- |
3,318,014 |
||||||||||||||||||
|
Fair value as a % of principal |
112.8 |
% |
- |
% |
112.8 |
% |
112.5 |
% |
- |
% |
112.5 |
% |
||||||||||||
|
Total loans and finance receivables |
||||||||||||||||||||||||
|
Principal |
$ |
5,690,329 |
$ |
16,758 |
$ |
5,707,087 |
$ |
4,344,901 |
$ |
17,301 |
$ |
4,362,202 |
||||||||||||
|
Fair value |
6,595,967 |
27,619 |
6,623,586 |
5,012,853 |
24,372 |
5,037,225 |
||||||||||||||||||
|
Fair value as a % of principal |
115.9 |
% |
164.8 |
% |
116.1 |
% |
115.4 |
% |
140.9 |
% |
115.5 |
% |
||||||||||||
(a) GAAP measure. The loans and finance receivables balances guaranteed by us relate to loans originated by a third-party lender through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.
(b) Non-GAAP measure. See "Non-GAAP Financial Measures-Combined Loans and Finance Receivables Measures" above.
At September 30, 2026 and 2025, the ratio of fair value as a percentage of principal was 115.9% and 115.4%, respectively, on company owned loans and finance receivables and 116.1% and 115.5%, respectively, on combined loans and finance receivables. These ratios were slightly higher compared to the prior year due to improvement in both the consumer and small business portfolios. Refer to "-Consumer Loans and Finance Receivables" and "-Small Business Loans and Finance Receivables" below for additional discussion of fair value ratios for the current quarter.
Average Amount Outstanding per Loan and Finance Receivable
The average amount outstanding per loan and finance receivable is calculated as the total combined loans and finance receivables, gross balance at the end of the period divided by the total number of combined loans and finance receivables outstanding at the end of the period. The following table shows the average amount outstanding per loan and finance receivable by product at September 30, 2026 and 2025:
|
As of September 30, |
||||||||
|
2026 |
2025 |
|||||||
|
Average amount outstanding per loan and finance receivable(a) |
||||||||
|
Consumer loans and finance receivables(b) |
$ |
1,685 |
$ |
1,676 |
||||
|
Small business loans and finance receivables |
47,668 |
42,157 |
||||||
|
Total loans and finance receivables(b) |
4,837 |
4,551 |
||||||
(a) The disclosure regarding the average amount per loan and finance receivable is statistical data that is not included in our consolidated financial statements.
(b) Includes loans guaranteed by us, which represent loans originated by a third-party lender through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.
The average amount outstanding per loan and finance receivable increased in the current quarter compared to the prior year quarter for our overall portfolio due to an increase in average amount outstanding per loan in our small business portfolio, as a result of higher funded amounts to our small business customers, as well as a mix shift towards our small business portfolio, which carries a higher average amount outstanding per loan compared to our consumer portfolio.
Average Loan and Finance Receivable Origination
The average loan and finance receivable origination amount is calculated as the total amount of combined loans and finance receivables originated, renewed and purchased for the period divided by the total number of combined loans and finance receivables originated,
renewed and purchased for the period. The following table shows the average loan and finance receivable origination amount by product for the current quarter compared to the prior year quarter:
|
Three Months Ended |
||||||||
|
September 30, |
||||||||
|
2026 |
2025 |
|||||||
|
Average loan and finance receivable origination amount(a) |
||||||||
|
Consumer loans and finance receivables(b)(c) |
$ |
651 |
$ |
579 |
||||
|
Small business loans and finance receivables(c) |
16,322 |
16,261 |
||||||
|
Total loans and finance receivables(b) |
1,905 |
1,779 |
||||||
(a) The disclosure regarding the average loan origination amount is statistical data that is not included in our consolidated financial statements.
(b) Includes loans guaranteed by us, which represent loans originated by a third-party lender through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.
(c) Represents the average amount of each incremental draw on line of credit accounts.
The average loan and finance receivable origination amount is smaller than the average amount outstanding per loan and finance receivable in the previous section as the former measure includes incremental draws on our line of credit accounts whereas the latter measure includes the entire outstanding receivable on our line of credit accounts.
The average loan and finance receivable origination amount increased to $1,905 during the current quarter from $1,779 during the prior year quarter, due primarily to a higher proportion of loans originated in the small business portfolio, the average size of which greatly exceeds the average size of loans originated in the consumer portfolio. The average loan and finance receivable origination amount for the consumer portfolio increased during the current quarter compared to the prior year quarter due primarily to a slight mix shift to products with higher average origination amounts. The average loan and finance receivable origination amount for the small business portfolio during the current quarter was fairly consistent with the prior year quarter.
Credit Performance of Loans and Finance Receivables
We monitor the performance of our loans and finance receivables. Internal factors such as portfolio composition (e.g., interest rate, loan term, geography information, customer mix, credit quality) and performance (e.g., delinquency, loss trends, prepayment rates) are reviewed on a regular basis at various levels (e.g., product, vintage). We also weigh the impact of relevant, internal business decisions on the portfolio. External factors such as macroeconomic trends, financial market liquidity expectations, competitive landscape and legal/regulatory requirements are also reviewed on a regular basis.
The payment status of a customer, including the degree of any delinquency, is a significant factor in determining estimated charge-offs in the cash flow models that we use to determine fair value. The following table shows payment status on outstanding principal, interest and fees as of the end of each of the last five quarters (dollars in thousands):
|
2025 |
2026 |
|||||||||||||||||||||||
|
Second |
Third |
Fourth |
First |
Second |
Third |
|||||||||||||||||||
|
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
|||||||||||||||||||
|
Ending combined loans and finance receivables, including principal and accrued fees/interest outstanding: |
||||||||||||||||||||||||
|
Company owned |
$ |
4,298,675 |
$ |
4,500,360 |
$ |
4,902,287 |
$ |
5,257,711 |
$ |
5,524,210 |
$ |
5,877,741 |
||||||||||||
|
Guaranteed by the Company(a) |
20,014 |
20,750 |
22,349 |
17,867 |
23,031 |
20,135 |
||||||||||||||||||
|
Ending combined loan and finance receivables balance(b) |
$ |
4,318,689 |
$ |
4,521,110 |
$ |
4,924,636 |
$ |
5,275,578 |
$ |
5,547,241 |
$ |
5,897,876 |
||||||||||||
|
> 30 days delinquent |
305,583 |
327,387 |
332,164 |
388,264 |
415,321 |
473,633 |
||||||||||||||||||
|
> 30 days delinquency as a % of combined loan and finance receivable balance |
7.1 |
% |
7.2 |
% |
6.7 |
% |
7.4 |
% |
7.5 |
% |
8.0 |
% |
||||||||||||
(a) Represents loans originated by a third-party lender through the CSO program that we have not yet purchased, which are not included in our consolidated balance sheets.
(b) Non-GAAP measure. See "Non-GAAP Financial Measures-Combined Loans and Finance Receivables Measures" above.
Refer to "-Consumer Loans and Finance Receivables" and "-Small Business Loans and Finance Receivables" below for additional discussion of credit performance for the current quarter.
Consumer Loans and Finance Receivables
The following table includes financial information for our consumer loans and finance receivables. Delinquency metrics include principal, interest and fees (dollars in thousands):
|
2025 |
2026 |
|||||||||||||||||||
|
Third |
Fourth |
First |
Second |
Third |
||||||||||||||||
|
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
||||||||||||||||
|
Consumer loans and finance receivables: |
||||||||||||||||||||
|
Consumer combined loan and finance receivable principal balance: |
||||||||||||||||||||
|
Company owned |
$ |
1,396,611 |
$ |
1,446,938 |
$ |
1,437,364 |
$ |
1,568,348 |
$ |
1,732,218 |
||||||||||
|
Guaranteed by the Company(a) |
17,301 |
18,656 |
14,806 |
19,388 |
16,758 |
|||||||||||||||
|
Total combined loan and finance receivable principal balance(b) |
$ |
1,413,912 |
$ |
1,465,594 |
$ |
1,452,170 |
$ |
1,587,736 |
$ |
1,748,976 |
||||||||||
|
Consumer combined loan and finance receivable fair value balance: |
||||||||||||||||||||
|
Company owned |
$ |
1,694,839 |
$ |
1,764,469 |
$ |
1,763,552 |
$ |
1,916,671 |
$ |
2,130,927 |
||||||||||
|
Guaranteed by the Company(a) |
24,372 |
26,148 |
20,925 |
27,631 |
27,619 |
|||||||||||||||
|
Ending combined loan and finance receivable fair value balance(b) |
$ |
1,719,211 |
$ |
1,790,617 |
$ |
1,784,477 |
$ |
1,944,302 |
$ |
2,158,546 |
||||||||||
|
Fair value as a % of principal(b)(c) |
121.6 |
% |
122.2 |
% |
122.9 |
% |
122.5 |
% |
123.4 |
% |
||||||||||
|
Consumer combined loan and finance receivable balance, including principal and accrued fees/interest outstanding: |
||||||||||||||||||||
|
Company owned |
$ |
1,525,989 |
$ |
1,573,763 |
$ |
1,561,056 |
$ |
1,708,117 |
$ |
1,893,160 |
||||||||||
|
Guaranteed by the Company(a) |
20,750 |
22,349 |
17,867 |
23,031 |
20,135 |
|||||||||||||||
|
Ending combined loan and finance receivable balance(b) |
$ |
1,546,739 |
$ |
1,596,112 |
$ |
1,578,923 |
$ |
1,731,148 |
$ |
1,913,295 |
||||||||||
|
Average consumer combined loan and finance receivable balance, including principal and accrued fees/interest outstanding: |
||||||||||||||||||||
|
Company owned(d) |
$ |
1,524,792 |
$ |
1,527,733 |
$ |
1,573,293 |
$ |
1,621,943 |
$ |
1,808,430 |
||||||||||
|
Guaranteed by the Company(a)(d) |
20,881 |
20,562 |
19,696 |
20,015 |
22,120 |
|||||||||||||||
|
Average combined loan and finance receivable balance(b)(d) |
$ |
1,545,673 |
$ |
1,548,295 |
$ |
1,592,989 |
$ |
1,641,958 |
$ |
1,830,550 |
||||||||||
|
Installment loans as percentage of average combined loan and finance receivable balance |
36.2 |
% |
38.1 |
% |
38.5 |
% |
37.7 |
% |
35.6 |
% |
||||||||||
|
Line of credit accounts as percentage of average combined loan and finance receivable balance |
63.8 |
% |
61.9 |
% |
61.5 |
% |
62.3 |
% |
64.4 |
% |
||||||||||
|
Revenue |
$ |
443,413 |
$ |
445,565 |
$ |
445,807 |
$ |
477,419 |
$ |
537,120 |
||||||||||
|
Change in fair value |
(246,789 |
) |
(225,915 |
) |
(215,541 |
) |
(203,908 |
) |
(247,206 |
) |
||||||||||
|
Net revenue |
$ |
196,624 |
$ |
219,650 |
$ |
230,266 |
$ |
273,511 |
$ |
289,914 |
||||||||||
|
Net revenue margin |
44.3 |
% |
49.3 |
% |
51.7 |
% |
57.3 |
% |
54.0 |
% |
||||||||||
|
Combined loan and finance receivable originations and purchases |
$ |
589,565 |
$ |
612,705 |
$ |
559,392 |
$ |
691,490 |
$ |
807,076 |
||||||||||
|
Delinquencies: |
||||||||||||||||||||
|
> 30 days delinquent |
$ |
142,240 |
$ |
124,894 |
$ |
125,290 |
$ |
131,467 |
$ |
164,271 |
||||||||||
|
> 30 days delinquent as a % of combined loan and finance receivable balance(b)(c) |
9.2 |
% |
7.8 |
% |
7.9 |
% |
7.6 |
% |
8.6 |
% |
||||||||||
|
Charge-offs: |
||||||||||||||||||||
|
Charge-offs (net of recoveries) |
$ |
249,545 |
$ |
247,598 |
$ |
227,637 |
$ |
209,952 |
$ |
276,428 |
||||||||||
|
Charge-offs (net of recoveries) as a % of average combined loan and finance receivable balance(b)(d) |
16.1 |
% |
16.0 |
% |
14.3 |
% |
12.8 |
% |
15.1 |
% |
||||||||||
(a) Represents loans originated by a third-party lender through the CSO program that we have not yet purchased, which are not included in our consolidated balance sheets.
(b) Non-GAAP measure.
(c) Determined using period-end balances.
(d) The average combined loan and finance receivable balance is the average of the month-end balances during the period.
Demand for our consumer loan products and services in the United States has historically been highest in the third and fourth quarters of each year, corresponding to the holiday season, and lowest in the first quarter of each year, corresponding to our customers' receipt of income tax refunds. The ending balance, including principal and accrued fees/interest outstanding, of combined consumer loans and finance receivables at September 30, 2026 increased 23.7% to $1,913.3 million compared to $1,546.7 million at September 30, 2025, due primarily to originations outpacing repayments.
The percentage of loans greater than 30 days delinquent of 8.6% was lower at September 30, 2026 compared to 9.2% at September 30, 2025, and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance decreased to 15.1% in the current quarter compared to 16.1% for the prior year quarter. These levels were in the normal range for both periods, although slightly toward the higher end in the prior year quarter. Compared to the prior sequential quarter ending June 30, 2026, the percentage
of loans greater than 30 days delinquent and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance both increased, which is consistent with our normal seasonal pattern.
Revenue related to our consumer loans and finance receivables was $537.1 million for the current quarter compared to $443.4 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio and, to a lesser extent, slightly higher average yields. The net revenue margin related to our consumer loans and finance receivables was 54.0% in the current quarter, which, along with the prior sequential quarter, was higher than the net revenue margin in the prior three quarters due primarily to strong growth coupled with lower charge-offs (net of recoveries) and delinquencies.
The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 123.4% at September 30, 2026, which is higher compared to 121.6% at September 30, 2025 due to improvement in credit metrics discussed earlier in this section. The ratio of fair value as a percentage of principal at September 30, 2026 was slightly higher compared to 122.5% at June 30, 2026, due primarily to strong credit performance coupled with growth in the portfolio. Refer also to "Results of Operations-Valuation of Loans and Finance Receivables" in "Management's Discussion and Analysis of Financial Condition and Results of Operations" for additional discussion on loan valuation.
Small Business Loans and Finance Receivables
The following table includes financial information for our small business loans and finance receivables. Delinquency metrics include principal, interest, and fees, and only amounts that are past due (dollars in thousands):
|
2025 |
2026 |
|||||||||||||||||||
|
Third |
Fourth |
First |
Second |
Third |
||||||||||||||||
|
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
||||||||||||||||
|
Small business loans and finance receivables: |
||||||||||||||||||||
|
Total loan and finance receivable principal balance |
$ |
2,948,290 |
$ |
3,301,076 |
$ |
3,661,184 |
$ |
3,782,743 |
$ |
3,958,111 |
||||||||||
|
Ending loan and finance receivable fair value balance |
3,318,014 |
3,707,075 |
4,109,405 |
4,256,093 |
4,465,040 |
|||||||||||||||
|
Fair value as a % of principal(a) |
112.5 |
% |
112.3 |
% |
112.2 |
% |
112.5 |
% |
112.8 |
% |
||||||||||
|
Ending loan and finance receivable balance, including principal and accrued fees/interest outstanding |
$ |
2,974,371 |
$ |
3,328,524 |
$ |
3,696,655 |
$ |
3,816,093 |
$ |
3,984,581 |
||||||||||
|
Average loan and finance receivable balance(b) |
$ |
2,882,684 |
$ |
3,157,860 |
$ |
3,547,257 |
$ |
3,757,810 |
$ |
3,900,469 |
||||||||||
|
Installment loans as percentage of average loan and finance receivable balance |
48.5 |
% |
47.4 |
% |
46.1 |
% |
45.5 |
% |
45.6 |
% |
||||||||||
|
Line of credit accounts as percentage of average loan and finance receivable balance |
51.5 |
% |
52.6 |
% |
53.9 |
% |
54.5 |
% |
54.4 |
% |
||||||||||
|
Revenue |
$ |
348,310 |
$ |
383,015 |
$ |
417,500 |
$ |
439,270 |
$ |
458,737 |
||||||||||
|
Change in fair value |
(93,083 |
) |
(109,568 |
) |
(128,759 |
) |
(154,878 |
) |
(145,570 |
) |
||||||||||
|
Net revenue |
$ |
255,227 |
$ |
273,447 |
$ |
288,741 |
$ |
284,392 |
$ |
313,167 |
||||||||||
|
Net revenue margin |
73.3 |
% |
71.4 |
% |
69.2 |
% |
64.7 |
% |
68.3 |
% |
||||||||||
|
Loan and finance receivable originations and purchases |
$ |
1,371,874 |
$ |
1,643,237 |
$ |
1,733,785 |
$ |
1,602,839 |
$ |
1,760,404 |
||||||||||
|
Delinquencies: |
||||||||||||||||||||
|
> 30 days delinquent |
$ |
185,147 |
$ |
207,270 |
$ |
262,974 |
$ |
283,854 |
$ |
309,362 |
||||||||||
|
> 30 days delinquent as a % of loan balance(a) |
6.2 |
% |
6.2 |
% |
7.1 |
% |
7.4 |
% |
7.8 |
% |
||||||||||
|
Charge-offs: |
||||||||||||||||||||
|
Charge-offs (net of recoveries) |
$ |
128,266 |
$ |
144,477 |
$ |
162,957 |
$ |
182,129 |
$ |
186,029 |
||||||||||
|
Charge-offs (net of recoveries) as a % of average loan and finance receivable balance(b) |
4.4 |
% |
4.6 |
% |
4.6 |
% |
4.8 |
% |
4.8 |
% |
||||||||||
(a) Determined using period-end balances.
(b) The average loan and finance receivable balance is the average of the month-end balances during the period.
The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at September 30, 2026 increased 34.0% to $3,984.6 million compared to $2,974.4 million at September 30, 2025, due primarily to originations outpacing repayments.
The percentage of loans greater than 30 days delinquent of 7.8% was higher at September 30, 2026 compared to 6.2% at September 30, 2025 and 7.4% at June 30, 2026, but remains within the range of 6.2% to 8.8% observed over the prior three years and consistent with our expectations for the portfolio. Charge-offs (net of recoveries) as a percentage of average loan and finance receivable balance of 4.8% during the current quarter were fairly consistent with the prior four sequential quarters.
Revenue related to our small business loans and finance receivables was $458.7 million for the current quarter compared to $348.3 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio, partially offset by slightly lower average yields. The net revenue margin related to our small business loans and finance receivables was 68.3% for the current quarter, which is fairly consistent with the average of the prior four sequential quarters of 69.6%. The net revenue margin remains within the range of recent experience and is consistent with our expectations for the portfolio, as credit performance and yields were also within expectations.
The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.8% at September 30, 2026, which is fairly consistent with the prior four sequential quarters, as performance and outlook remain stable on the portfolio.
Total Operating Expenses
Total operating expenses increased $103.3 million, or 39.1%, to $367.2 million in the current quarter compared to $263.9 million in the prior year quarter.
Marketing expense increased to $229.7 million in the current quarter compared to $147.4 million in the prior year quarter due primarily to growth in the overall business with higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products and higher commissionable originations in our small business portfolio.
Operations and technology expense increased to $80.7 million in the current quarter compared to $64.5 million in the prior year quarter, due primarily to higher variable costs, particularly collection, personnel, underwriting and computer and software maintenance as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased slightly to 8.0% in the current quarter from 8.1% in the prior year quarter due primarily to growth in revenue outpacing personnel costs.
General and administrative expense increased to $46.2 million in the current quarter compared to $39.6 million in the prior year quarter due primarily to higher personnel costs and transaction-related costs associated with the planned acquisition of Grasshopper. As a percentage of revenue, general and administrative expense decreased to 4.6% in the current quarter from 4.9% in the prior year quarter, as increased originations and revenues outpaced fixed costs.
Depreciation and amortization expense decreased $1.8 million or 14.1% compared to the prior year quarter driven primarily by certain intangible assets reaching the end of their amortizable lives between quarters.
Nonoperating Items
Interest expense, net increased $16.5 million, or 19.0%, to $103.5 million in the current quarter compared to $87.0 million in the prior year quarter. The increase was due primarily to an increase of $1,174.0 million, or 29.14%, in the average amount of debt outstanding to $5,202.7 million during the current quarter from $4,028.7 million during the prior year quarter, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 7.97% during the current quarter from 8.61% during the prior year quarter resulting primarily from year-over-year decreases in benchmark rates.
Provision for Income Taxes
The effective tax rate of 24.9% in the current quarter was lower than the 27.1% rate recorded in the prior year quarter. The lower effective tax rate is primarily due to higher state income tax expense in the prior year quarter, including the impact of unfavorable state rate changes, that did not recur in the current quarter. The decrease also reflects favorable return-to-provision adjustments recorded in the current quarter, primarily related to additional research and development tax credits.
Net Income
Net income increased $27.0 million, or 33.6%, to $107.3 million during the current quarter compared to $80.3 million during the prior year quarter. The increase was due primarily to an increase in income from operations due to higher net revenue, which outpaced increases in operating expenses as a percentage of revenue, partially offset by higher interest expense, which was the result of an increase in the average amount of debt outstanding.
NINE MONTHS ENDED SEPTEMBER 30, 2026 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2025
Revenue and Net Revenue
Revenue increased $501.0 million, or 21.7%, to $2,813.3 million for the nine-month period ended September 30, 2026, or current nine-month period, as compared to $2,312.3 million for the nine-month period ended September 30, 2025, or prior year nine-month period. The increase was driven by a 34.3% increase in revenue from our small business portfolio and a 12.1% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.
Net revenue for the current nine-month period was $1,711.4 million compared to $1,328.4 million for the prior year nine-month period. Our consolidated net revenue margin was 60.8% for the current nine-month period, as compared to 57.4% for the prior year nine-month period. The increase was driven by an increase in net revenue margin in the consumer portfolio as well as a mix shift toward the small business portfolio, which generally has a higher net revenue margin compared to the consumer portfolio, partially offset by a decrease in net revenue margin in the small business portfolio.
The following table sets forth the components of revenue and net revenue, separated by product for the current nine-month period and the prior year nine-month period (dollars in thousands):
|
Nine Months Ended September 30, |
||||||||||||||||
|
2026 |
2025 |
$ Change |
% Change |
|||||||||||||
|
Revenue by product: |
||||||||||||||||
|
Consumer loans and finance receivables revenue |
$ |
1,460,346 |
$ |
1,302,549 |
$ |
157,797 |
12.1 |
% |
||||||||
|
Small business loans and finance receivables revenue |
1,315,507 |
979,172 |
336,335 |
34.3 |
||||||||||||
|
Total loans and finance receivables revenue |
2,775,853 |
2,281,721 |
494,132 |
21.7 |
||||||||||||
|
Other |
37,388 |
30,541 |
6,847 |
22.4 |
||||||||||||
|
Total revenue |
2,813,241 |
2,312,262 |
500,979 |
21.7 |
||||||||||||
|
Change in fair value |
(1,101,857 |
) |
(983,915 |
) |
(117,942 |
) |
12.0 |
|||||||||
|
Net revenue |
$ |
1,711,384 |
$ |
1,328,347 |
$ |
383,037 |
28.8 |
% |
||||||||
|
Revenue by product (% to total): |
||||||||||||||||
|
Consumer loans and finance receivables revenue |
51.9 |
% |
56.3 |
% |
||||||||||||
|
Small business loans and finance receivables revenue |
46.8 |
42.4 |
||||||||||||||
|
Total loans and finance receivables revenue |
98.7 |
98.7 |
||||||||||||||
|
Other |
1.3 |
1.3 |
||||||||||||||
|
Total revenue |
100.0 |
100.0 |
||||||||||||||
|
Change in fair value |
(39.2 |
) |
(42.6 |
) |
||||||||||||
|
Net revenue |
60.8 |
% |
57.4 |
% |
||||||||||||
Revenue generated from the Company's operations for the current nine-month period and the prior year nine-month period was as follows (in thousands):
|
Nine Months Ended September 30, |
||||||||
|
2026 |
2025 |
|||||||
|
Loan interest |
$ |
1,886,284 |
$ |
1,525,107 |
||||
|
Statement and draw fees on line of credit accounts |
769,830 |
648,635 |
||||||
|
Other |
157,127 |
138,520 |
||||||
|
Total Revenue |
$ |
2,813,241 |
$ |
2,312,262 |
||||
Average Loan and Finance Receivable Origination
The average loan and finance receivable origination amount is calculated as the total amount of combined loans and finance receivables originated, renewed and purchased for the period divided by the total number of combined loans and finance receivables originated, renewed and purchased for the period. The following table shows the average loan and finance receivable origination amount by product for the current nine-month period compared to the prior year nine-month period:
|
Nine Months Ended |
||||||||
|
September 30, |
||||||||
|
2026 |
2025 |
|||||||
|
Average loan and finance receivable origination amount(a) |
||||||||
|
Consumer loans and finance receivables(b)(c) |
$ |
627 |
$ |
566 |
||||
|
Small business loans and finance receivables(c) |
16,052 |
16,328 |
||||||
|
Total loans and finance receivables(b) |
1,988 |
1,731 |
||||||
(a) The disclosure regarding the average loan origination amount is statistical data that is not included in our consolidated financial statements.
(b) Includes loans guaranteed by us, which represent loans originated by third-party lenders through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.
(c) Represents the average amount of each incremental draw on line of credit accounts.
The average loan and finance receivable origination amount increased to $1,988 from $1,731 during the current nine-month period compared to the prior year nine-month period, due primarily to a higher proportion of loans originated in the small business portfolio, the average size of which greatly exceeds the average size of loans originated in the consumer portfolio. The average loan and finance receivable origination amount for the consumer portfolio increased during the current nine-month period compared to the prior year nine-month period due primarily to a slight mix shift to products with higher average origination amounts. The average loan and finance receivable origination amount for the small business portfolio during the current nine-month period was fairly consistent with the prior year nine-month period.
Total Operating Expenses
Total operating expenses increased $244.3 million, or 31.5%, to $1,019.9 million in the current nine-month period, compared to $775.6 million in the prior year nine-month period.
Marketing expense increased to $622.7 million in the current nine-month period compared to $429.5 million in the prior year nine-month period. The increase was due primarily to growth in the overall business with higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products and higher commissionable originations in our small business portfolio.
Operations and technology expense increased to $231.3 million in the current nine-month period compared to $190.7 million in the prior year nine-month period, due primarily to higher variable costs, particularly underwriting costs, personnel costs and computer and software maintenance expenses as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense was flat at 8.2%.
General and administrative expense increased $15.4 million, or 12.5%, to $138.0 million in the current nine-month period compared to $122.6 million in the prior year nine-month period, due primarily to higher personnel costs and $5.5 million in transaction-related costs associated with the planned acquisition of Grasshopper. As a percentage of revenue, general and administrative expense decreased to 4.9% in the current nine-month period from 5.3% in the prior year nine-month period, as increased originations and revenues outpaced fixed costs.
Depreciation and amortization expense decreased $4.9 million or 14.7% compared to the prior year nine-month period driven primarily by certain intangible assets reaching the end of their amortizable lives between periods.
Nonoperating Items
Interest expense, net increased $45.1 million, or 18.0%, to $295.4 million in the current nine-month period compared to $250.3 million in the prior year nine-month period. The increase was due primarily to an increase of $1,079.6 million, or 28.09%, in the average amount of debt outstanding to $4,922.7 million during the current nine-month period from $3,843.1 million during the prior year nine-month period, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.08% during the current nine-month period from 8.76% during the prior year nine-month period resulting primarily from year-over-year decreases in benchmark rates.
Provision for Income Taxes
The effective tax rate of 23.3% in the current nine-month period was lower compared to the effective tax rate of 24.1% in the prior year nine-month period. The decrease is primarily attributable to higher state income tax expense in the prior year period, including the impact of unfavorable state rate changes that did not recur in the current period. The decrease is partially offset by a lower rate benefit from stock compensation and state tax attributes generated from legal entity restructuring in the prior year period.
Net Income
Net income increased $74.1 million, or 32.3%, to $303.5 million during the current nine-month period compared to $229.4 million during the prior year nine-month period. The increase was due primarily to an increase in income from operations due primarily to overall growth in the business driving an increase in net revenue and lower operating expenses as a percentage of revenue, partially offset by higher interest expense as a result of an increase in the average amount of debt outstanding.
LIQUIDITY AND CAPITAL RESOURCES
Capital Funding Strategy
We seek to maintain a stable and flexible balance sheet to ensure that liquidity and funding are available to meet our business obligations. As of September 30, 2026, we had cash, cash equivalents, and restricted cash of $496.4 million, of which $390.4 million was restricted, compared to $407.9 million, of which $336.2 million was restricted, as of December 31, 2025. During the nine months ended September 30, 2026, we issued $300.9 million of asset-backed notes and increased the borrowing capacity of two consumer loan securitization facilities by a total of $225.0 million to fund our growth in our consumer loan portfolio, and we issued $500.0 million of asset-backed notes and increased the borrowing capacity of two small business loan securitization facilities by a total of $165.9 million to fund our growth in our small business loan portfolio. As of September 30, 2026, we had aggregate funding capacity of $817.4 million. Based on numerous stressed-case modeling scenarios, we believe we have sufficient liquidity to run our operations for the foreseeable future. Further, we have no recourse debt obligations scheduled to mature until December 2028. As part of our capital and liquidity management, we may from time to time acquire our outstanding debt securities, including through redemptions, tender offers, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws and in compliance with the indentures governing our outstanding debt securities, upon such terms and at such prices as we may determine.
Historically, we have generated significant cash flow through normal operating activities for funding both long-term and short-term needs. Our near-term liquidity is managed to ensure that adequate resources are available to fund our seasonal working capital growth, which is driven by demand for our loan and financing products.
We have a secured revolving credit facility (the "Credit Agreement") that we utilize for general corporate purposes, which may include funding loan originations and providing liquidity for short-term working capital needs. On August 28, 2025, we amended the Credit Agreement to, among other changes, increase the total commitment amount from $665.0 million to $825.0 million, extend the maturity date from June 2026 to August 2029 and reduce the interest rate, as applicable, from the base rate plus 0.75% to the base rate plus 0.50% and from the SOFR rate plus 3.50% to the SOFR rate plus 3.25%. In addition to customary fees for a credit facility of this size and type, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the commitment, and ranges from 0.15% per annum to 0.50% per annum depending on usage. As of October 19, 2026, our available borrowings under the Credit Agreement were $150.6 million. We also utilize several loan securitization facilities and asset-backed notes to fund our growth, primarily in our near-prime consumer loan and small business loan portfolios, which provide funding capacity of $292.6 million as of October 19, 2026. We expect that our operating needs, including satisfying our obligations under our debt agreements and funding our working capital growth, will be satisfied by a combination of cash flows from operations, borrowings under the Credit Agreement, or any refinancing, replacement thereof or increase in borrowings thereunder, and securitization or sale of loans and finance receivables under our consumer and small business loan securitization facilities.
As of September 30, 2026, we were in compliance with all financial ratios and covenants set forth in our debt agreements. Unexpected changes in our financial condition or other unforeseen factors may result in our inability to obtain third-party financing or could increase our borrowing costs in the future. To the extent we experience short-term or long-term funding disruptions, we have the ability to adjust our volume of lending and financing to consumers and small businesses that would reduce cash outflow requirements while increasing cash inflows through repayments. Additional alternatives may include the securitization or sale of assets, increased borrowings under the Credit Agreement, or any refinancing or replacement thereof, and reductions in capital spending, which could be expected to generate additional liquidity.
Capital
Total stockholders' equity was $1,568.6 million at September 30, 2026 compared to $1,336.7 million at December 31, 2025. The increase of stockholders' equity was driven primarily by net income for the nine months ended September 30, 2026 and, to a lesser
extent, stock-based compensation expense, partially offset by repurchases of our outstanding common stock, which is discussed in more detail below. Our book value per share outstanding increased to $63.47 at September 30, 2026 from $54.08 at December 31, 2025, which was primarily driven by net income, partially offset by share repurchases.
On August 12, 2024, we announced the Board of Directors authorized a new share repurchase program totaling $300.0 million through December 31, 2025 (the "August 2024 Authorization"), which replaced the prior share repurchase authorization. On November 12, 2025, we announced the Board of Directors authorized a new share repurchase program totaling $400.0 million through June 30, 2027 (the "November 2025 Authorization"), which replaced the August 2024 Authorization, under which the Company had repurchased $238.9 million of common stock. As of September 30, 2026, the Company had repurchased $97.6 million of common stock under the November 2025 Authorization. Repurchases under our repurchase programs are made from time to time in accordance with applicable securities laws in the open market, through privately negotiated transactions or otherwise. The share repurchase programs do not obligate us to purchase any shares of our common stock. The November 2025 Authorization may be terminated, increased or decreased by the Board of Directors in its discretion at any time. During the nine months ended September 30, 2026, we had $81.0 million in repurchases of common stock under our share repurchase program.
Cash
Our cash and cash equivalents are held primarily for working capital purposes and to fund a portion of our lending activities. Our policy is to invest cash in excess of our immediate working capital requirements in short-term investments, deposit accounts or other arrangements designed to preserve the principal balance and maintain adequate liquidity. We do not enter into investments for trading or speculative purposes. Our excess cash may be invested primarily in overnight sweep accounts, money market instruments or similar arrangements that provide competitive returns consistent with our policies and market conditions. From time to time, we use excess cash and cash equivalents to fund our lending activities.
Our restricted cash typically consists of funds held in accounts as reserves on certain debt facilities and as collateral for issuing bank partner transactions. We have no ability to draw on such funds as long as they remain restricted under the applicable arrangements but have the ability to use these funds to finance loan originations, subject to meeting borrowing base requirements. Our policy is to invest restricted cash held in debt facility related accounts, to the extent permitted by such debt facility, in investments designed to preserve the principal balance and provide liquidity. Accordingly, such cash is invested primarily in money market instruments that offer daily purchase and redemption and provide competitive returns consistent with our policies and market conditions.
Current Debt Facilities
The following table summarizes our debt facilities as of September 30, 2026 (dollars in thousands):
|
Revolving period end date |
Maturity date |
Weighted average interest rate(a) |
Borrowing capacity |
Principal outstanding |
||||||||||
|
Funding Debt: |
||||||||||||||
|
ODAS IV 2025-2 Securitization Notes |
October 2028 |
November 2032 |
5.65% |
$ |
261,434 |
$ |
261,434 |
|||||||
|
ODAS IV 2026-1 Securitization Notes |
September 2028 |
October 2032 |
6.22% |
500,026 |
500,026 |
|||||||||
|
2026-A Securitization Notes |
- |
September 2032 |
6.42% |
289,544 |
289,544 |
|||||||||
|
ODAS IV 2025-1 Securitization Notes |
March 2028 |
April 2032 |
5.89% |
261,392 |
261,392 |
|||||||||
|
ODAS IV 2024-2 Securitization Notes |
September 2027 |
October 2031 |
5.78% |
261,353 |
261,353 |
|||||||||
|
2025-A Securitization Notes |
- |
October 2031 |
7.29% |
42,526 |
42,526 |
|||||||||
|
ODAS IV 2024-1 Securitization Notes |
May 2027 |
June 2031 |
6.84% |
399,574 |
399,574 |
|||||||||
|
2024-A Securitization Notes |
- |
October 2030 |
8.31% |
20,017 |
20,017 |
|||||||||
|
ODAS IV 2023-1 Securitization Notes |
July 2026 |
August 2030 |
7.83% |
179,153 |
179,153 |
|||||||||
|
NCLOCR 2024 Securitization Facility |
February 2029 |
February 2030 |
8.68% |
300,000 |
250,000 |
|||||||||
|
ODR 2022-1 Securitization Facility |
June 2028 |
June 2029 |
7.23% |
420,000 |
244,156 |
|||||||||
|
HWCR 2023 Securitization Facility |
March 2028 |
March 2029 |
8.20% |
535,000 |
535,000 |
|||||||||
|
ODR 2021-1 Securitization Facility |
November 2027 |
November 2028 |
6.97% |
246,667 |
148,989 |
|||||||||
|
NCR 2022 Securitization Facility |
October 2026 |
October 2028 |
8.14% |
275,000 |
20,000 |
|||||||||
|
NCLOCR 2025 Securitization Facility |
July 2027 |
July 2028 |
7.93% |
150,000 |
150,000 |
|||||||||
|
RAOD Securitization Facility |
November 2026 |
November 2027 |
6.43% |
355,263 |
227,959 |
|||||||||
|
Total funding debt |
6.93% |
$ |
4,496,949 |
$ |
3,791,123 |
|||||||||
|
Corporate Debt: |
||||||||||||||
|
Revolving line of credit |
August 2029 |
August 2029 |
7.25% |
$ |
825,000 |
(b) |
$ |
713,000 |
||||||
|
9.125% senior notes due 2029 |
- |
August 2029 |
9.13% |
500,000 |
500,000 |
|||||||||
|
11.25% senior notes due 2028 |
- |
December 2028 |
11.25% |
400,000 |
400,000 |
|||||||||
|
Total corporate debt |
8.82% |
$ |
1,725,000 |
$ |
1,613,000 |
|||||||||
(a) The weighted average interest rate is determined based on the rates and principal balances on September 30, 2026. It does not include the impact of the amortization of deferred loan origination costs or debt discounts.
(b) We had an outstanding letter of credit under the Revolving line of credit of $0.4 million as of September 30, 2026.
Our ability to fully utilize the available capacity of our debt facilities may also be impacted by provisions that limit concentration risk and eligibility.
Cash Flows
Our cash flows and other key indicators of liquidity are summarized as follows (in thousands):
|
Nine Months Ended September 30, |
||||||||
|
2026 |
2025 |
|||||||
|
Total cash flows provided by operating activities |
$ |
1,554,189 |
$ |
1,320,310 |
||||
|
Cash flows from investing activities |
||||||||
|
Loans and finance receivables |
(2,188,170 |
) |
(1,607,528 |
) |
||||
|
Capitalization of software development costs and purchases of fixed assets |
(34,989 |
) |
(35,444 |
) |
||||
|
Total cash flows used in investing activities |
(2,223,159 |
) |
(1,642,972 |
) |
||||
|
Cash flows provided by financing activities |
$ |
757,857 |
$ |
356,731 |
||||
Cash Flows from Operating Activities
Net cash provided by operating activities increased $233.9 million, or 17.7%, to $1,554.2 million in the current nine-month period from $1,320.3 million for the prior year nine-month period. The increase was driven primarily by additional interest and fee income from growth in the loan portfolio, partially offset by higher marketing expenses, higher interest expense on higher outstanding debt balances to fund growth in the loan portfolio, and higher variable operations and technology expenses.
We believe cash flows from operations and available cash balances and borrowings under our securitization facilities and Credit Agreement, which may include increased borrowings under the Credit Agreement, any refinancing or replacement thereof, and additional securitization of consumer and small business loans, will be sufficient to fund our future operating liquidity needs, including to fund our working capital growth.
Cash Flows from Investing Activities
Net cash flows used in investing activities was $2,223.2 million for the current nine-month period compared to $1,643.0 million for the prior year nine-month period. This change was due primarily to loan originations outpacing repayments by a wider margin in the current nine-month period compared to the prior year nine-month period.
Cash Flows from Financing Activities
Net cash provided by financing activities for the current nine-month period was driven primarily by $761.6 million in net borrowings under our securitization facilities, partially offset by $105.6 million in share repurchases and $117.0 million in net repayments under our revolving line of credit. Cash flows provided by financing activities for the prior year nine-month period were driven primarily by $451.8 million in net borrowings under our securitization facilities and $89.0 million in net borrowings under our revolving line of credit, partially offset by $179.3 million in share repurchases.
CRITICAL ACCOUNTING ESTIMATES
There have been no material changes to the information on critical accounting estimates described in our Annual Report on Form 10-K for the year ended December 31, 2025.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
See Note 1 in the Notes to Consolidated Financial Statements included in this report for any discussion of recent accounting pronouncements that may be significant to Enova.
Enova International Inc. published this content on October 22, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 22, 2026 at 21:21 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]