What OneMain (OMF) Said on Its Q3 Earnings Call

Key Points

• OneMain reported solid Q3 growth: Managed receivables rose 9% year over year to $28 billion, originations increased 17% to $4.5 billion, and GAAP net income reached $185 million, or $1.60 per diluted share.
• Credit trends improved broadly, with lower delinquencies and net charge-offs across consumer loans and credit cards. Management expects losses to decline in the fourth quarter but sees consumer loan losses moving toward roughly 7% in 2027.
• The company raised its growth outlook to about 9% for 2026 while maintaining an operating expense ratio target of approximately 6.6%; it also returned more than $500 million to shareholders year to date through dividends and share repurchases.

OneMain NYSE: OMF reported third-quarter results marked by accelerating receivables growth, improving credit metrics and continued expansion in its personal loan, auto finance and credit card businesses.

Chairman and Chief Executive Officer Doug Shulman said managed receivables reached $28 billion during the quarter, up 9% from a year earlier, while capital generation increased 4% to $284 million. The company reported third-quarter GAAP net income of $185 million, or $1.60 per diluted share, and C&I adjusted net income of $174 million, or $1.51 per diluted share.

“Financial performance was great this quarter,” Shulman said. “Receivables continue to grow. Credit is moving in a decidedly positive direction. We further fortified our already strong balance sheet, and capital generation continues to grow.”

Originations and Product Growth

Third-quarter originations totaled $4.5 billion, rising 17% year over year. Consumer loan originations also increased 17%, supported by personal loan initiatives, including debt consolidation products, home fixture secured loans and wider use of bank data in underwriting.

Shulman said secured lending represented nearly 60% of personal loan originations in the quarter. He added that roughly 40% of borrowers now share bank data with OneMain during the application process, compared with 30% a year ago, creating what he described as a more streamlined customer experience.

During the question-and-answer session, Shulman said the company did not see evidence of a broader structural shift toward personal loans. Instead, he attributed growth to OneMain’s product innovation, digital improvements, brand strength and market-share gains while maintaining a conservative credit posture.

Auto finance receivables increased 16% year over year to $3.2 billion, while auto finance originations rose 26%. Management cited improved sales-force productivity, dealer-network expansion and deeper dealer relationships. Shulman also said second-look loan volume through the company’s partnership with Ally and other smaller arrangements was producing credit profiles and loss performance similar to the broader auto portfolio.

OneMain’s credit card business continued to scale, with 1.5 million customer accounts and $1.4 billion in receivables. Unit originations rose 84% from a year earlier, while purchase volume increased 82%. Management said enhancements to the BrightWay card offering, including a broader range of fee and rewards options, helped attract customers and increase engagement.

Credit Trends Improve

The company reported broad improvement in delinquency and loss metrics. Consumer loan 30-89 day delinquency was 3.08% at Sept. 30, down 12 basis points from a year earlier. Total 30-plus day delinquency was 5.34%, down 21 basis points year over year, while 90-plus day delinquency declined 9 basis points.

Executive Vice President and Chief Financial Officer Jenny Osterhout said the improved delinquency figures, along with better year-over-year roll rates, support expectations for lower losses in the fourth quarter and into 2027.

C&I net charge-offs were 7.2% in the third quarter, down 96 basis points sequentially. Consumer loan net charge-offs, excluding credit cards, were 6.9%, down 88 basis points from the previous quarter. Credit card net charge-offs declined 274 basis points year over year to 13.9%.

Osterhout said the company expects full-year credit card net charge-offs to land within its long-term target range of 15% to 17%. She also said OneMain expects consumer loan losses to move closer to the upper end of its normalized range, around 7%, in 2027, assuming a steady macroeconomic environment.

Recoveries increased 15% year over year to $101 million, representing 1.6% of average net receivables. Osterhout attributed the improvement largely to operational and analytical changes in the company’s collections efforts, including decisions around customer contact methods and timing.

Funding, Expenses and Capital Returns

OneMain raised $2.3 billion through three public-market transactions in August, including a $1 billion two-year revolving asset-backed security at 5.15%, a $680 million five-year revolving ABS at 5.47%, and a $600 million unsecured bond due in 2034 at 7.125%.

The company ended the quarter with $7.5 billion in bank lines and net leverage of 5.5 times, unchanged from the prior quarter and a year earlier. Interest expense was $345 million, up 8% from the prior-year quarter, while funding costs as a percentage of net receivables were 5.3%. Osterhout said the company expects funding costs to remain near that level through year-end.

Operating expenses rose 6% to $453 million, compared with 9% managed receivables growth. The operating expense ratio declined to 6.5% from 6.7% in the prior quarter and 6.6% a year earlier. Management said expenses reflected investment in credit cards, auto finance, data science, technology and digital capabilities.

The company repurchased 538,000 shares for $34 million in the third quarter, bringing year-to-date repurchases to $171 million. Combined with dividends, OneMain said it had returned more than $500 million to shareholders so far in 2026. Its annualized regular dividend is $4.20 per share.

Updated 2026 Outlook

OneMain narrowed its full-year outlook for managed receivables growth and now expects growth at the high end of its previous range, or about 9%. The company also expects C&I net charge-offs at the high end of its prior 7.4% to 7.9% guidance range. It maintained guidance for an operating expense ratio of approximately 6.6%.

Management said the company is also expanding its digital capabilities, including a new mobile and web experience that combines loans, credit cards and its MyMoney financial wellness tool. Shulman said OneMain is taking a targeted approach to artificial intelligence, initially emphasizing internal productivity and high-volume manual processes while piloting selected lower-risk customer-facing applications.

About OneMain (NYSE:OMF)

OneMain Holdings, Inc, operating under the OneMain Financial brand, is a consumer finance company that provides personal lending and related financial services primarily to non-prime consumers in the United States. The company serves customers through a combination of branch locations, online and mobile channels, and centralized customer service operations.

OneMain's principal products include secured and unsecured personal loans, which customers may use for debt consolidation, home improvements, major purchases, and other personal expenses.

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