Enova International Q4 2025 Earnings Report

Enova International EPS Results

• Actual EPS: $3.46
• Consensus EPS: $3.17
• Beat/Miss: Beat by +$0.29
• One Year Ago EPS: $2.61

Enova International Revenue Results

• Actual Revenue: $1.34 billion
• Expected Revenue: $838.59 million
• Beat/Miss: Beat by +$502.70 million
• YoY Revenue Growth: +15.00%

Enova International Announcement Details

• Quarter: Q4 2025
• Date: 1/27/2026
• Time: After Market Closes
• Conference Call Date: Tuesday, January 27, 2026
• Conference Call Time: 5:00PM ET

Enova International (NYSE:ENVA) (NYSE: ENVA) is a Chicago-based financial services company specializing in online lending solutions. Since its founding in 2004, Enova has leveraged proprietary data analytics and technology platforms to underwrite and deliver short-term consumer loans, lines of credit and installment loans. Through its flagship consumer brand NetCredit, Enova provides flexible credit options designed to serve a wide range of borrowers, including those with limited or non-traditional credit histories.

In addition to its U.S. consumer operations, Enova operates dedicated commercial lending services under its OnDeck brand, offering small businesses access to working capital through term loans and revolving credit lines. The company has expanded internationally, serving customers in the United Kingdom and Brazil via localized online platforms. Enova’s risk and underwriting models draw upon machine learning and real-time data to assess creditworthiness, enabling rapid decision-making and funding.

Enova differentiates itself through a fully digital customer experience and a focus on speed, with many approved applicants receiving funds within one business day. Its executive team brings deep expertise in financial technology, data science and regulatory compliance. The company continues to invest in its technology infrastructure and product suite to enhance its underwriting capabilities and broaden its service offerings across geographies.

Enova International Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Enova reported record growth in 2025 with fourth-quarter originations up 32% YoY to $2.3B and year-end receivables of $4.9B, driving Adjusted EPS +42% for the year.
• Positive Sentiment: Credit trends remain strong — consolidated net charge-offs fell to 8.3% in Q4, consumer NCO improved to 16%, and SMB NCO stayed low at 4.6%, supporting margin expansion.
• Neutral Sentiment: Management expects to close the pending Grasshopper Bank acquisition in H2 2026 after filing regulatory applications, forecasting $125M–$220M of annual net synergies and >25% EPS accretion once realized, though timing/approval risk remains.
• Positive Sentiment: 2026 guidance assumes continued momentum with ~15% originations growth for the year and at least 20% adjusted EPS growth (excludes any Grasshopper contribution), plus Q1 EPS expected +20%–25% YoY.
• Negative Sentiment: Enova significantly increased marketing in Q4 to 23% of revenue (driving record originations), lifting total operating expenses to 36% of revenue; management says marketing should normalize to upper‑teens as demand reverts.

Presentation

[Operator]

Welcome to the Enova International Fourth Quarter and Full Year 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Lindsay Savarese, Investor Relations for Enova. Please go ahead.

[Lindsay Savarese, Investor Relations Contact at Enova International]

Thank you, operator, and good afternoon, everyone. Enova released results for the fourth quarter and full year 2025, ended December 31st, 2025, this afternoon after market close. If you did not receive a copy of our earnings press release, you may obtain it from the investor relations section of our website at ir.enova.com. With me on today's call are David Fisher, Executive Chairman of the Board of Directors, Steve Cunningham, Chief Executive Officer, and Scott Cornelis, Chief Financial Officer. This call is being webcast and will be archived on the investor relations section of our website. Before I turn the call over to David, I'd like to note that today's discussion will contain forward-looking statements and as such, is subject to risks and uncertainties.

[Lindsay Savarese, Investor Relations Contact at Enova International]

Actual results may differ materially as a result from various important risk factors, including those discussed in our earnings press release and in our annual report on Form 10-K, quarterly reports on Forms 10-Q, and current reports on Forms 8-K. Please note that any forward-looking statements that are made on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. In addition to U.S. GAAP reporting, Enova reports certain financial measures that do not conform to generally accepted accounting principles. We believe these non-GAAP measures enhance the understanding of our performance. Reconciliations between these GAAP and non-GAAP measures are included in the tables found in today's press release. As noted in our earnings release, we have posted supplemental financial information on the IR portion of our website.

[Lindsay Savarese, Investor Relations Contact at Enova International]

With that, I'd like to turn the call over to David.

[David Fisher, Executive Chairman at Enova International]

Thanks, and good afternoon, everyone. I appreciate you joining our call today. Also with me today are Steve Cunningham and Scott Cornelis. As I'm sure most of you know, effective January 1st, Steve became CEO of Enova and Scott became CFO as I transitioned to the Executive Chairman role. I've committed to remain as exec chair for at least two years. With the full support of the board, this move was thoroughly, thoughtfully, and deliberately planned over more than a year, and having worked closely with both Steve and Scott for many years, I'm confident that they are the right leaders to see Enova through its next phase of growth. The timing has worked out even better than we had hoped. As Steve and Scott will discuss in more detail, 2024 was another very strong quarter, wrapping up a record year for Enova.

[David Fisher, Executive Chairman at Enova International]

And as announced in December, with our pending acquisition of Grasshopper Bank, we believe we have found the perfect partner at the perfect time to take Enova to the next level by simplifying our regulatory structure, opening up additional markets for our consumer products, adding additional low-cost funding sources, providing a platform for new product opportunities. When I first joined Enova, I never anticipated staying for more than a few years, but this role unexpectedly grew into the longest, most challenging, and most rewarding of my career. I unequivocally attribute that to the extraordinary people and the culture at Enova. And due in large part to that team, the future of Enova is bright. Steve and I share a common vision that our focused growth strategy will steer our path forward.

[David Fisher, Executive Chairman at Enova International]

We will continue to adapt and innovate and remain committed to producing sustainable and profitable growth while meeting the needs of our customers and driving shareholder value. With that, I would like to turn the call over to Steve.

[Steve Cunningham, CEO at Enova International]

Thank you, David, and good afternoon, everyone. I appreciate you joining our call today. Our fourth quarter results capped off another exceptional year for Enova. Strong originations growth and solid credit across our portfolio once again drove strong financial performance. For the full year of 2025, originations grew 27%, leading to revenue growth of nearly 20%, which, when combined with stable credit and the significant operating leverage in our business model, drove adjusted EPS growth of 42%. 2025 was our second consecutive year of adjusted EPS growth in excess of 30%, demonstrating the resiliency of our balanced growth strategy and the ability of our experienced team to deliver consistent and differentiated performance by leveraging our diversified product offerings, flexible online-only model, and world-class risk management and technology.

[Steve Cunningham, CEO at Enova International]

Turning to the quarter, we're pleased to deliver fourth quarter results that were in line or better than our expectations. Fourth quarter originations increased 32% year-over-year to $2.3 billion. As a result of this strong originations growth, our portfolio increased 23% year-over-year to a record $4.9 billion. Small Business products represented 68% of our portfolio at the end of the year, while Consumer accounted for 32%. Strong demand and solid credit performance enabled us to be more aggressive with our marketing during the quarter, as we leveraged our sophisticated technology and analytics to capture this demand at attractive unit economics.... Marketing expense was 23% of our total revenue during the fourth quarter, driving record quarterly originations.

[Steve Cunningham, CEO at Enova International]

We expect marketing spend to revert back to more typical levels, although we'll continue to opportunistically lean into marketing to meet demand with attractive unit economics. With strong quarterly portfolio growth, revenue increased to the top of our expected range, growing 15% year-over-year to $839 million in the fourth quarter, and profitability metrics grew even faster, as adjusted EPS increased 33%, driven by strong credit and our significant operating leverage. SMB revenue growth accelerated to 34% year-over-year to $383 million, and our Consumer revenue increased 3% year-over-year to $446 million, both quarterly records. In addition to our strong growth this quarter, our fourth quarter credit results also demonstrate that both our Small Business and Consumer customers remain on solid footing.

[Steve Cunningham, CEO at Enova International]

The consolidated net charge-off ratio for the fourth quarter of 8.3% was down both sequentially and compared to the fourth quarter of 2024. External data highlighted that the U.S. economy ended 2025 on a good note. The Federal Reserve's recent Beige Book pointed to economic gains across much of the country. In addition, the unemployment rate ticked down to 4.4% in December, with recent unemployment claims data underscoring that the labor market remains relatively stable and resilient. Further, real wage growth continues to be positive, with average hourly earnings rising 3.8% year-over-year in December, after rising 3.6% during November, and early reads indicate December consumer spending grew moderately and continues to support economic activity.

[Steve Cunningham, CEO at Enova International]

Looking at our Consumer business, this constructive economic backdrop supported the re-acceleration of growth and improvement in credit metrics that we discussed last quarter. With the strong early default performance we were seeing at that time, we leaned into boosting Consumer originations, which accelerated as we moved through the fourth quarter. As we expected, credit metrics for the Consumer portfolio improved both sequentially and compared to the year-ago quarter. Turning to Small Business, our SMB business continues its string of outstanding performance. Our leading brand presence, scale, and competitive landscape again resulted in significant growth and remarkably stable credit performance. Fourth quarter originations for SMB increased 20% sequentially and 48% year-over-year to $1.6 billion, marking the eighth consecutive quarter of year-over-year originations growth of 20% or more.

[Steve Cunningham, CEO at Enova International]

Credit metrics for the Small Business portfolio continue to be very stable, as they have been for the past two years. Our internal and external data highlight that SMBs continue to express confidence in the economy and expect favorable operating conditions during 2026. In conjunction with Ocrolus, we released the ninth iteration of our Small Business Cash Flow Trend Report, which offers key insights into the state of small businesses and highlights ongoing trends observed over the past year. Consistent with previous findings, the survey found that small businesses feel optimistic about future growth. Overall, growth expectations matched an all-time high, with 94% of small businesses projecting growth over the next 12 months. Nearly 75% of Small Business owners reported bypassing traditional banks in favor of alternative lenders like Enova.

[Steve Cunningham, CEO at Enova International]

Of those that went to a traditional bank first, 46% of those reported being denied a loan. External data also supports these findings, as the NFIB Small Business Optimism Index rose to 99.5 in December and remained above its 62-year average of 98. NFIB's chief economist pointed out that while Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges, and an increase in capital investments. While these surveys and external economic data provide useful context, our proprietary data offers more real-time and granular views into trends in the operating environment and the conditions of our customers. This data allows us to react quickly and nimbly as the operating environment is changing.

[Steve Cunningham, CEO at Enova International]

Our deep experience serving non-prime consumers and small businesses, meaningful diversification, powerful technology and analytics, and our disciplined unit economics approach have been key to our ability to navigate varying operating environments while generating consistently strong financial results. As we've demonstrated for many years, we believe our business is resilient across a wide range of macroeconomic environments. Before I wrap up, I'd like to spend a few moments discussing our strategy and outlook for 2026. We've demonstrated a long track record of consistency between stated priorities and execution, and we remain committed to this approach. Our balanced growth strategy works, and we expect to generate sustainable and profitable growth while delivering on our commitment to driving long-term shareholder value and on our mission of helping hardworking people get access to fast, trustworthy credit.

[Steve Cunningham, CEO at Enova International]

Another key focus for 2026 will be closing the acquisition of Grasshopper Bank that we announced last month. We're excited about this powerful combination. By uniting Enova's sophisticated online lending platform with Grasshopper's national charter and deposit-gathering capabilities, we'll be able to expand access to more consumers and small businesses who've been traditionally underserved by banks. In addition, this combination simplifies our product and operational model under a national bank charter, providing significant opportunities to accelerate the growth of our existing products with an enhanced ability to serve our customers in more states and an ability to expand into new complementary products. Since our announcement, the energy and excitement from the teams for both companies have been tremendous, as together we recognize the opportunities and our complementary capabilities, cultural alignment, and significant synergies.

[Steve Cunningham, CEO at Enova International]

As a reminder, we expect net synergies related to the transaction to increase adjusted net income by $125 million-$220 million annually within the first two years post-closing, driving adjusted EPS accretion of more than 25% once the synergies are fully realized. We filed our regulatory applications earlier this month, seeking approval from the Federal Reserve and the OCC, and we continue to make great progress on integration planning in anticipation of closing during the second half of 2026. Overall, we're pleased to end the year with another strong quarter of solid revenue and profit growth. We have considerable momentum heading into 2026, and while it's still very early in the year, we're off to a great start with solid originations growth across our businesses.

[Steve Cunningham, CEO at Enova International]

As Scott will discuss in more detail, and based on what we're seeing today, we expect 2026 to be another year of significant origination, revenue, and adjusted EPS growth. Before turning the call over to Scott, I'd like to sincerely thank the entire Enova team for all their hard work and dedication. You all are the force behind our success. We're thrilled to celebrate our thirteen-year streak on Computerworld's 2026 Best Places to Work in IT list, reflecting the creativity, collaboration, and passion that fuel our technology teams. We're looking forward to another great year ahead. Thank you. And with that, I'd like to turn the call over to Scott Cornelis, our CFO, who will discuss our financial results and outlook in more detail. And following Scott's remarks, we'll be happy to answer any questions you may have. Scott?

[Scott Cornelis, CFO at Enova International]

Thank you, Steve, and good afternoon, everyone. We're pleased to close 2025 with solid fourth quarter financial results that once again met or exceeded our expectations. Our strong financial performance in the fourth quarter and the full year 2025 continues to demonstrate how the powerful combination of our diversified product offerings, scalable operating model, world-class risk management capabilities, and balance sheet flexibility allow us to consistently deliver strong top and bottom line results. Turning to our fourth quarter results, total company revenue of $839 million increased 15% from the fourth quarter of 2024, at the top end of our expectations, as total company combined loan and finance receivable balances on an amortized basis increased 23% from the end of the fourth quarter of 2024.

[Scott Cornelis, CFO at Enova International]

Total company originations during the fourth quarter rose 32% from the fourth quarter of 2024 to $2.3 billion. Revenue from small business lending increased 34% from the fourth quarter of 2024 to $383 million, as Small Business receivables on an amortized basis ended the quarter at $3.3 billion, or 34% higher than the end of the fourth quarter of 2024. Small Business originations rose 48% year-over-year to $1.6 billion. Revenue from our Consumer businesses increased approximately 3% from the fourth quarter of 2024 to $446 million, as Consumer receivables on an amortized basis ended the fourth quarter at $1.6 billion, or approximately 6% higher than the end of the fourth quarter of 2024.

[Scott Cornelis, CFO at Enova International]

Consumer originations grew 2% from the fourth quarter of 2024 to $613 million. As Steve mentioned earlier, we successfully re-accelerated our Consumer originations as we moved through the quarter, particularly in December, thanks to strong demand and credit. For the first quarter of 2026, we expect total company revenue to be flat to slightly higher sequentially. This expectation will depend on the level, timing, and mix of originations growth during the quarter. Now turning to credit, which is the most significant driver of net revenue and portfolio fair value. The consolidated net revenue margin of 60% for the fourth quarter was also at the higher end of our expected range and reflects continued strong credit performance across our portfolios.

[Scott Cornelis, CFO at Enova International]

The consolidated net charge-off ratio in the fourth quarter declined 60 basis points from the fourth quarter a year ago to 8.3%. As we expected, the Consumer net charge-off ratio improved to 16%, which was flat sequentially and compared to the year-over-year quarter. The Small Business net charge-off ratio was 4.6%, which was within our expected range, and, as Steve noted, has been remarkably stable over the past two years. Expectations for our future credit performance remain solid, as reflected by sequential and year-over-year stability or improvement in the 30+ day delinquency rates and fair value premiums for the consolidated Consumer and Small Business portfolios. The consolidated 30+ day delinquency ratio at the end of the fourth quarter declined 70 basis points from the end of the fourth quarter a year ago to 6.7%....

[Scott Cornelis, CFO at Enova International]

The consolidated fair value premium of 115% remains stable and consistent with levels we have reported over the past two years. Looking ahead, we expect the total company net revenue margin for the first quarter of 2026 to be between 55%-60%, as the impact of lower consolidated originations from our typical Consumer seasonality is offset by the sequential improvement in the consolidated net charge-off rate we typically see in the first quarter. This expectation will depend upon portfolio payment performance and the level, timing, and mix of originations growth during the first quarter. Now turning to expenses. Total operating expenses for the fourth quarter, including marketing, were 36% of revenue, compared to 34% of revenue in the fourth quarter of 2024.

[Scott Cornelis, CFO at Enova International]

As Steve noted, we leaned into our efficient marketing spend to meet demand with strong unit economics, resulting in record originations growth. Fourth quarter marketing increased to $192 million, or 23% of revenue, compared to $151 million, or 21% of revenue, in the fourth quarter of 2024. With the seasonality we typically experience during the first quarter of the year, we expect marketing expenses as a percentage of revenue to range in the upper teens for the first quarter, and will depend upon the growth and mix of originations. Operations and technology expenses for the fourth quarter increased to $68 million, or 8% of revenue, compared to $58 million, or 8% of revenue, in the fourth quarter of 2024, driven by growth in receivables and originations over the past year.

[Scott Cornelis, CFO at Enova International]

Given the significant variable component of this expense category, sequential increases in O&T costs should be expected in an environment where originations and receivables are growing and should be around 8% of total revenue. Our fixed costs continue to scale as we focus on operating efficiencies and thoughtful expense management. General and administrative expenses for the fourth quarter were $47 million, or 5.6% of revenue, compared to $38 million, or 5.2% of revenue, in the fourth quarter of 2024. The current quarter includes $6.7 million of one-time deal-related expenses associated with the pending Grasshopper acquisition. Excluding these items, G&A expenses were $41 million, or 4.8% of revenue, reflecting continued operating leverage and disciplined expense management.

[Scott Cornelis, CFO at Enova International]

While there may be slight variations from quarter to quarter, we expect G&A expenses in the near term will be between 5%-5.5% of total revenue, excluding any one-time costs. Our balance sheet and liquidity position remain strong and give us financial flexibility to successfully navigate a range of operating environments, while delivering on our commitment to drive long-term shareholder value through continued investment in our business and disciplined capital allocation. During the fourth quarter, we acquired approximately 278,000 shares at a cost of $35 million, and we started 2026 with share repurchase capacity of approximately $106 million available under our senior note covenants.

[Scott Cornelis, CFO at Enova International]

We were pleased to see the improvement in our valuation during 2025, though we believe there remains additional upside given our track record of consistent growth and earnings, our expectations for 2026, and the significant future opportunities associated with the Grasshopper acquisition. With that in mind, we will continue stock repurchases opportunistically while ensuring we are well prepared to close the Grasshopper Bank acquisition and transition to a bank holding company later this year. We ended the fourth quarter with approximately $1.1 billion of liquidity, including $422 million of cash and marketable securities, and $649 million of available capacity on our debt facilities, providing us with flexibility to support our strategic objectives.

[Scott Cornelis, CFO at Enova International]

Our cost of funds for the fourth quarter was 8.3%, down from 8.6% in the third quarter, reflecting lower SOFR rates and strong execution on recent financing transactions. Even with no additional rate cuts by the Fed, we expect some reduction in our cost of funds during 2026, but the level will depend upon credit spreads on new financing transactions, our funding mix, and the level, timing, and mix of originations growth. Our effective tax rate for the fourth quarter was 20%. The sequential decline was driven by favorable state changes, a decrease in our uncertain tax position reserve and related interest, and tax benefits resulting from share price increases on stock options exercised during the fourth quarter. While there may be variations from quarter to quarter, we expect our normalized annual effective tax rate to remain in the mid-20% range.

[Scott Cornelis, CFO at Enova International]

Finally, we continue to deliver solid profitability this quarter. Compared to the fourth quarter of 2024, adjusted EPS, a non-GAAP measure, increased 33% to $3.46 per diluted share, and adjusted EBITDA, a non-GAAP measure, increased 21% to $211 million. To wrap up, let me summarize our first quarter and full year 2026 expectations. For the first quarter, we expect revenue to follow our typical seasonality and to be flat to slightly higher sequentially. We expect net revenue margin of 55%-60% on a consolidated basis, as seasonally lower originations are offset by an improvement in the net charge-off rate.

[Scott Cornelis, CFO at Enova International]

In addition, we expect marketing expenses as a percentage of revenue to be in the upper teens, O&T costs of around 8% of revenue, and G&A costs of between 5% and 5.5% of revenue. Interest expense as a percentage of revenue is expected to be around 10.5%. With a more normalized tax rate, these expectations should lead to adjusted EPS for the first quarter of 2026 that is 20%-25% higher than the first quarter of 2025. Our first quarter expectations will depend upon customer payment rates and the level, timing, and mix of originations growth. Now turning to our expectations for the full year of 2026.

[Scott Cornelis, CFO at Enova International]

Assuming a stable macroeconomic environment with no material changes in the employment situation and a largely unchanged interest rate environment, we would expect growth in originations for the full year 2026, compared to the full year of 2025, to increase by around 15%. The resulting growth in receivables with stable credit, continued operating leverage, and a reduced cost of funds should result in full year 2026 revenue growth similar to originations growth and adjusted EPS growth of at least 20%. Our expectations for 2026 will depend on the macroeconomic environment and the resulting impact on demand, customer payment rates, and the level, timing, and mix of originations growth. As a reminder, our 2026 financial expectations do not assume any contribution from the pending acquisition of Grasshopper Bank, which we expect to close in the second half of 2026.

[Scott Cornelis, CFO at Enova International]

Our results in 2025 reinforce the flexibility and scalability of our business model. As we move into 2026, we are well positioned to drive meaningful financial results, supported by a diversified product set, a continued focus on unit economics, favorable competitive positioning, and balance sheet flexibility. With that, we'd be happy to take your questions. Operator?

[Operator]

Thank you. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. The first question comes from Moshe Orenbuch with TD Cowen. Please, please go ahead.

[Moshe Orenbuch, Managing Director and Senior Analyst at TD Cowen]

Great, thanks, and congrats, David, Steve, and Scott, on all of the management changes and promotions and all. I'm hoping, Steve, that you could talk a little bit about the Consumer business. You know, you talked about, you know, the growth having slowed and then accelerated. How much faster kind of is the exit rate? How should we think about it? And are there impacts, you know, that we should be aware of, given this upcoming tax season and new withholding types of patterns?

[Steve Cunningham, CEO at Enova International]

Hey, Moshe, thanks for the question. So, as I mentioned in my comments, and as we expected, after seeing really remarkably good credit at last quarter, we did accelerate the growth in the Consumer business. And that growth rate accelerated as we went through the quarter. Similar to last year, we saw December exceptionally strong. So sometimes, you know, the seasonal pattern of Consumer growth in the fourth quarter can vary depending on the timing of the holidays, but really, for the second year in a row, we saw a significant amount of the growth coming in in December. So we were really pleased with that. And as you can see, our nimble and efficient marketing allowed us to continue to kind of lean into that.

[Steve Cunningham, CEO at Enova International]

I think we learned from last year, where we saw sort of a similar pattern and knew if that demand sort of showed up the same way, we could take more of that down. So we're really pleased with that. When you look forward to the first quarter, similarly, we're seeing, you know, some of that strength continue into early January, similar to what we saw last year. And so we'll continue to meet that demand, you know, where it is. It tends to fall off fairly quickly. You know, once it does fall off, as you move through later January and further into the first quarter.

[Steve Cunningham, CEO at Enova International]

With the tax refund season, I mean, I would, based on what we know today, it sounds like there's potential for some larger refunds this year, which would be great for credit for us. And so a lot of the originations that we put on should perform very, very well. And what we've tended to see over time is that can just shift around the demand curve a little bit in terms of when the demand timing restarts, but typically it's just a matter of weeks. So we have a lot of experience with different tax refund seasons over our history, and our guidance reflects sort of our expectations, and we're feeling really good about how the fourth quarter wrapped up for Consumer and how the 2026 Consumer business is starting.

[Moshe Orenbuch, Managing Director and Senior Analyst at TD Cowen]

Great. And, is it good to hear that, you know, you're moving forward with the, you know, with, the, all the steps for Grasshopper? Are there things that you're going to do differently in your core portfolio prior to closing? Or maybe talk a little bit about, you know, what the early, you know, kind of earliest, impacts that, you know, you might see starting in the second half of the year after closing.

[Steve Cunningham, CEO at Enova International]

I mean, until we, until we close the transactions, so the transaction, both companies are business as usual. So-

[Moshe Orenbuch, Managing Director and Senior Analyst at TD Cowen]

Yeah.

[Steve Cunningham, CEO at Enova International]

The outlook that Scott gave you is, you know, our expectation of continuing that track record of, you know, strong growth in our business and being opportunistic as we see demand and following our balanced growth approach. So you should expect more of that. And as we talked about on the Grasshopper call, I think once we're beyond the close of that transaction, step number one is really with the product set that we have today, expanding our footprint to continue to serve more customers. And that's really the basis for the revenue synergies that we laid out and that I discussed on the call as well.

[Moshe Orenbuch, Managing Director and Senior Analyst at TD Cowen]

Thanks very much.

[Operator]

The next question comes from Bill Ryan with Seaport Research Partners. Please go ahead.

[Bill Ryan, Senior Analyst at Seaport Research Partners]

Good afternoon, and thanks for taking my questions. And, following Moshe, I'd like to say congratulations to everybody. A couple of questions. I mean, you talked about mix of originate- or the origination growth being about 15% in 2026. If you could maybe elaborate on kind of what you're expecting in terms of the mix between Consumer and Small Business.

[Steve Cunningham, CEO at Enova International]

Yeah. Hi, Bill. So, yeah, we feel like we're in a pretty good position with what we know today to grow around 15% for the year. With the resumption of the Consumer growth that we just talked about, you know, we think we'll settle in at more typical levels than maybe what we saw for some quarters in 2025. We think we'll continue a pattern that you've seen with SMB. Obviously, some of the growth rates that we've seen have been really, really strong, but we've had a track record of growing that business now at 20%+ now for quite a while.

[Steve Cunningham, CEO at Enova International]

So you may see what we've, what we've seen over the past couple of years, which is a slow tilt in our portfolio towards SMB, just in terms of where the demand has been, but we'll continue to be opportunistic. And in, in prior years, we've seen some times where there's more opportunity in the Consumer business, and it's grown faster, and we've seen in recent times the SMB portfolio is growing a bit faster. We'll continue to follow that approach that we've followed with the balanced growth approach to make sure that, you know, we're meeting the demand in both. That makes sense to follow our unit economics. And, and so that's, that's what we expect from where we sit today.

[Bill Ryan, Senior Analyst at Seaport Research Partners]

Okay, thanks for that. Then just one follow-up. I know you guys kind of continually make adjustments on your underwriting. If you could maybe talk about that, any changes that you've made, on the Consumer side in the fourth quarter? And specific to small businesses, was there any change in industry focus? Anything you dial back on? Anything you kind of opened back up a little bit?

[Steve Cunningham, CEO at Enova International]

Yeah, as you know, Bill, we are making credit adjustments all the time. We talked an awful lot about that in 2025. So we continue to follow that same approach, continue to be very nimble. So as we see, you know, sometimes there's always adjustments that we're going to make in both of the portfolios. In Consumer, in particular, after we saw sort of the exceptionally strong credit in the third quarter, you know, we did try to move back to more typical levels of credit. And you can see that, you know, the Consumer net charge-off ratio settled in at sort of the middle of the expected range we would have had, that we would have expected for the fourth quarter.

[Steve Cunningham, CEO at Enova International]

So we're really pleased about how that landed, and so I feel like we are, you know, sort of back to that, making adjustments as we need, sometimes opportunistic, sometimes, you know, pulling it back where we see, you know, things we don't like. I think, on the Small Business side, you know, it's been remarkably stable. I think our industry focus, you know, we've talked about over time. You know, we continue to keep a close eye on things like construction and transportation, as well as some of those industries that we had felt could be most impacted by tariff and the trade policies. But we've been pleased to see that those have held in really well, and, you know, it's business as usual in our credit space there, similar to Consumer.

[Steve Cunningham, CEO at Enova International]

We're always, always making adjustments to make sure that we're, you know, serving as many customers as we can, while generating the returns that our, our shareholders expect.

[Bill Ryan, Senior Analyst at Seaport Research Partners]

Thank you.

[Operator]

Once again, if you have a question, please press star then one. The next question comes from David Scharf with Citizens Capital Markets. Please go ahead.

[David Scharf, Managing Director at Citizens Capital Markets]

Great. Thank you. Good afternoon. I'll echo the congrats to the new team or new positions, actually. Hey, Steve, wanted to switch just to sort of the post Grasshopper operations. And you may have discussed this when you first, you know, announced the transaction. But can you remind us post-close, you know, how we ought to think about regulatory capital ratios you're going to adhere to and whether or not existing levels of buybacks are likely to continue under the new structure?

[Steve Cunningham, CEO at Enova International]

Yeah. Hi, David. Thanks for the, for the question.

[David Scharf, Managing Director at Citizens Capital Markets]

Hi.

[Steve Cunningham, CEO at Enova International]

So we did talk about, you know, regulatory capital a bit on that call. I think where we sit today, you know, we're sitting at around a 17%-18% Tangible Capital Ratio, which feels, you know, that's sort of analogous to the Tier 1 Leverage Ratio.

[David Scharf, Managing Director at Citizens Capital Markets]

Mm-hmm.

[Steve Cunningham, CEO at Enova International]

which, you know, we would expect to sort of be in that same zip code. So I would not expect us to be changing our, our leverage position dramatically one way or the other. And as we've done, you know, with that said, then we get back to, you know, as we get post-close, there should be opportunities with the strong ROEs that we expect to generate versus the, you know, strong asset growth to have some opportunity to return capital.

[Steve Cunningham, CEO at Enova International]

But I think our focus early on will be, you know, investing in the opportunities that the new structure will present to us and the combination in making sure, you know, as you know, our rank ordering on our capital allocation is organic opportunities that generate really strong returns in our unit economic model, share buybacks, and then inorganic is sort of down the list at third. You know, we have the capital to do all of those things, but I think we will be most focused on all the opportunities that are in front of us with the new structure after we get past the close.

[David Scharf, Managing Director at Citizens Capital Markets]

Got it. No, that's helpful. And maybe just to follow up on the consumer products. It's been quite a while. I mean, as we look at sort of the quarterly disclosures that you provide and sort of the accompanying schedules, it's been quite a while since line of credit volumes have materially eclipsed, you know, installment. And can you just speak to maybe not just today where we sit, but as you think about the risk-adjusted returns of those two products going forward, is there anything on the installment side that would lead us to believe that that's going to kind of regain maybe its position as half the Consumer sort of product suite?

[David Scharf, Managing Director at Citizens Capital Markets]

Or is there just something about either the credit profile or anything else structurally that is going to continue to kind of lead you to lean into line of credit? Because it seems like there's less competition in line of credit, certainly.

[Steve Cunningham, CEO at Enova International]

Well, as you know, David, we're pretty agnostic across our products in terms of the growth. What we try to do is meet the demand that meets our unit economic hurdle rates. And so I think if you look back in our supplement, I think you can probably see that, you know, LOC sometimes is leading the way. We've had some opportunities in 2025 with our consumer installment products, particularly as it relates to refinance, which I spoke about last quarter. And so, I don't think we're sitting back thinking, you know, we're going to grow one faster necessarily than the other. We let the demand kind of push us there, and we follow, you know, our unit economic approach and our ROEs to, you know, take down.

[Steve Cunningham, CEO at Enova International]

We think the demand that's going to, again, meet as many customers as we can while generating really strong returns. So, I think from time to time, you're going to see variations, just like you have over time, where you might see, you know, one quarter or two, you know, one product might be growing more strongly than the other, and not just with Consumer, but across, SMB and Consumer as well.

[David Scharf, Managing Director at Citizens Capital Markets]

Got it. Understood. Thank you.

[Steve Cunningham, CEO at Enova International]

You bet.

[Operator]

The next question comes from John Hecht with Jefferies. Please go ahead.

[John Hecht, Managing Director at Jefferies]

Afternoon, guys. Again, congratulations on all the movement at the executive level. Definitely testament to the long success of the company. I guess most of my questions have been asked. I guess when it comes to Grasshopper, are there... and forgive me if you mentioned this, are there certain geographies that you know you can go into that are not approachable by you or limited access at this point in time, that would be somewhat meaningful?

[Steve Cunningham, CEO at Enova International]

Hi, John. Thanks. So when we talked about, you know, some of that expansion last month on, on the call, there definitely are some states, with our NetCredit brand that we would like to, to take on, that, perhaps we could with our, with our current licensing and partnerships today, but we just haven't chosen to do so. That a national bank charter will make it easier for us to do that. So there definitely are specific states that we have in mind. When you think about states like California or Pennsylvania or Ohio, which we're, we're in, but not, you know, to the extent that we might otherwise if we were a, are a bank, just to kind of give you some, some flavor.

[Steve Cunningham, CEO at Enova International]

We definitely have a hit list and a plan for where we want to go first.

[John Hecht, Managing Director at Jefferies]

Okay. And then, you know, I know this gives you some, you know, benefits from a regulatory perspective. Just because you'll be able to centralize some of that, you know, that's within the bank. So, but, but then you'll have some stuff still outside the bank. You know, and, and, you know, the CFPB has really become less active. So question is, can you just give me a, you know, the quick description of how the regulatory framework, and reporting mechanisms will look? And then are you observing any activity at the state level at this point in time that's worth pointing out?

[Steve Cunningham, CEO at Enova International]

So starting with that last question, you know, it's relatively quiet at the state level. You know, there's not really any, you know, outside of some of the noise that you've heard, you know, in the political arena, we haven't really heard any real, you know, policy or regulatory changes at the state level that we're particularly concerned about. As it relates to, you know, post-close structure, we expect to have CashNet and Brazil sitting outside of the national bank, as part of our non-bank affiliates under the holding company. The Federal Reserve will have some oversight of that, and obviously, we've talked to them, for many years about that plan. In terms of reporting, I mean, I think we'll continue...

[Steve Cunningham, CEO at Enova International]

There'll be some transparency, obviously, continue with our SEC filings, the weekly call reports at the national bank, and then the Federal Reserve suite of filings for holding companies, as well. So that's our plan that we're working against today. And, you know, we hope to get that done here later this year.

[John Hecht, Managing Director at Jefferies]

Thanks very much. Appreciate the call.

[Steve Cunningham, CEO at Enova International]

You bet.

[Operator]

The next question comes from Vincent Caintic with BTIG. Please go ahead.

[Vincent Caintic, Managing Director and Specialty Finance Analyst at BTIG]

Hey, good afternoon, and thanks for taking my questions. Actually another regulatory question, and it's kind of a broader topic, but one I was getting a lot from investors early in January about kind of broader consumer finance. And it was specifically when the government started contemplating rate caps, and that was specifically on credit cards. But I wanted to get your thoughts, if you had any, on this push for affordability and maybe how rate caps might have a potential positive or negative benefits to Enova and the industry beyond just the credit cards. Thanks.

[Steve Cunningham, CEO at Enova International]

Yeah. So I think the cap that's been discussed very specific to credit cards for one year. You know, I think there's been a lot of commentary from the card banks on that, and not just from them, but from a lot of others. I think if, you know, if that was to happen, that actually would probably be a positive for us, particularly for, you know, I think that there's a lot of studies that have shown, rate caps tend to reduce availability for the very folks who need it the most, which tend to be those that are less served. And so to the extent that, you know, some of those credit card customers are not able to access credit, we would be an alternative for them, so we would view that positively.

[Steve Cunningham, CEO at Enova International]

And Vincent, you know, over the years, I think, you know, 17, 18 years in a row, that Congress, or a member of Congress has introduced a federal rate cap. It tends to, you know, revolve around, you know, election time. It's a, it's a very popular topic, around affordability, but hasn't really had any meat to it. And I think, if anything, this, this ongoing conversation has probably highlighted, how irrational, rate caps can be, as it tends to, to hurt, you know, again, the, the very people that you're trying to help. So while the probability is, is likely not exactly zero, it, it's very, very low.

[Steve Cunningham, CEO at Enova International]

Obviously, from a policy point of view, we're not supportive of any, you know, any actions that reduce the, you know, the ability to provide credit to those who need it the most.

[Vincent Caintic, Managing Director and Specialty Finance Analyst at BTIG]

Okay, great. That's super helpful and clear. Thank you. And then switching over to Small Business. So you gave helpful color earlier about the kind of the improvement to Consumer loan growth. But Consumer loan growth had accelerated quite a bit beyond your run rate, so it was up 34% year-over-year. And you highlighted some of the surveys in your prepared remarks, but maybe you could talk about, you know, what you're seeing on the ground, how the environment is for Small Business and kind of how what you think is sustainable for 2026 and the health of that Small Business customer. Thank you.

[Steve Cunningham, CEO at Enova International]

Yeah, you bet. So I mean, clearly the numbers kind of speak for themselves. SMB now has a long track record of successful growth, and the credit profile has been remarkably stable in sort of a very narrow range that we've expected. So I think that reflects, you know, it reflects the strength of our ability to underwrite those customers, but it also reflects the stability of the customer base that we're serving. So, you know, there's been a lot of noise over the year of 2025 around the impact of tariffs and the macroeconomy and where we are. But I think what I wanted to highlight in my commentary is that it's not quite as gloomy it seems on the ground.

[Steve Cunningham, CEO at Enova International]

It seems that small businesses are looking, you know, looking forward positively, and I think, it's reflecting in the demand that we're seeing. And clearly our brands and our scale are allowing us to win, competitively and grow very quickly. You know, sustaining, you know, 30%-40% growth rates, is not something that I would just be planning on. That would be fantastic, but I think, we're expecting, you know, to continue, a strong growth rate with the guide that Scott gave, and, you know, continue to have a successful credit profile for, 2026.

[Vincent Caintic, Managing Director and Specialty Finance Analyst at BTIG]

Okay, great. Very helpful. Thank you.

[Steve Cunningham, CEO at Enova International]

You bet.

[Operator]

The next question comes from Kyle Joseph with Stephens. Please go ahead.

[Kyle Joseph, Managing Director at Stephens]

Hey, good afternoon, guys. Congrats on a solid year and, and, reiterate all the congratulations on promotions, et cetera. Yeah, most of my questions have been taken, but, just kind of wanted to get your perspective. We talked a bit about the expected changes in tax refunds on the Consumer side of things. You know, anything we should be thinking about on the SMB side, from changes as a result of the BBB and any sort of implications for seasonality on that business for 2026?

[Steve Cunningham, CEO at Enova International]

No, I don't anticipate any big changes in seasonality for 2026. I think, you know, to the extent that, you know, customers again have a larger refund, it's good for our credit profile, but it also probably means they're going to spend it, which is going to be good for the economy, and that tends to be very good for our Small Business customers as well. So, I think we're not expecting any disruption for our Small Business customers in 2026. If anything, it should be a positive.

[Kyle Joseph, Managing Director at Stephens]

Great. Thanks. And then, on the expense side, appreciate the guidance you gave for the first quarter. Obviously, we know what your EPS expectations are for the year, but kind of just walk us through maybe a little bit more color in terms of how you're thinking about the scalability of the business in 2026. You know, obviously, because first quarter has some seasonal impacts on marketing and whatnot.

[Steve Cunningham, CEO at Enova International]

Yeah. Well, we think we're going to continue to generate that operating leverage and scale that you've seen. I mean, listen, the marketing, we - I think last quarter, we were remarking that we hadn't been quite at our 20% level of marketing spend. I think this quarter we showed that, you know, when the market presents itself, we will, we'll lean into it to drive, you know, profitable growth. And I think you should continue to expect, you know, as Scott laid out some of those numbers, you're going to continue to see, you know, a grind lower in some of those expense categories, as we continue to grow overall.

[Steve Cunningham, CEO at Enova International]

So you should continue to expect us to scale the OpEx and, you know, invest in marketing where we see the demand and we know we can generate the unit economics that we need.

[Kyle Joseph, Managing Director at Stephens]

Great. That's it for me. Thanks for taking my questions.

[Steve Cunningham, CEO at Enova International]

You bet.

[Operator]

This concludes our question and answer session. I would like to turn the conference back over to Steve Cunningham for any closing remarks. Please go ahead.

[Steve Cunningham, CEO at Enova International]

We thank you all for joining our call today, and we look forward to updating you next quarter. Have a good night.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• David Fisher, Executive Chairman
• Lindsay Savarese, Investor Relations Contact
• Scott Cornelis, CFO
• Steve Cunningham, CEO

Analysts

• Bill Ryan, Senior Analyst at Seaport Research Partners
• David Scharf, Managing Director at Citizens Capital Markets
• John Hecht, Managing Director at Jefferies
• Kyle Joseph, Managing Director at Stephens
• Moshe Orenbuch, Managing Director and Senior Analyst at TD Cowen
• Vincent Caintic, Managing Director and Specialty Finance Analyst at BTIG