OneMain (OMF) Financials

OneMain Holdings, Inc. (NYSE: OMF) has demonstrated steady financial performance over the past several quarters and years, with key trends emerging from the detailed review of its income statements, cash flow statements, and balance sheets.

Positive Highlights:

• Net Interest Income has consistently grown from approximately $855 million in Q1 2023 to $996 million in Q1 2025, indicating strong interest income generation after expenses.
• Total Revenue has steadily increased from $1.03 billion in Q1 2023 to $1.18 billion in Q1 2025, reflecting growth in both interest and non-interest income streams.
• Net Income attributable to common shareholders increased significantly, from $155 million in Q1 2023 to $213 million in Q1 2025, showing improved profitability.
• Basic earnings per share rose from $1.48 in Q1 2023 to $1.79 in Q1 2025, reflecting not only higher net income but also effective share management.
• Operating cash flow improved to $665 million in Q1 2025 from $562 million in Q1 2023, highlighting solid cash generation from core business operations.
• Total assets have increased from $22.44 billion in Q1 2023 to $26.03 billion in Q1 2025, indicating growth in the company's scale and asset base.
• Common equity increased from $3.08 billion in Q1 2023 to $3.28 billion by Q1 2025, demonstrating growing shareholder equity and financial strength.
• The company has maintained consistent dividend payouts per share around $1.00 to $1.04 quarterly, supporting shareholder returns.
• Provision for credit losses increased but appears aligned with loan portfolio growth and risk management, supporting credit quality over time.
• The company shows consistent capital investment in trading securities and investments, which may support future income diversification.

Neutral Observations:

• Interest expense on long-term debt has increased moderately from $239 million in Q1 2023 to $312 million in Q1 2025, consistent with the increased long-term debt balance.
• Changes in operating assets and liabilities have shown some volatility but overall have limited impact on cash flow trends.
• Repurchase and issuance of common equity have fluctuated with net reduction in treasury stock but are small relative to total shares outstanding.
• The mix between purchasing and selling investment securities reflects normal investment management strategies.
• Goodwill and intangible assets remain stable, supporting the company's established brand and operational framework.

Potential Concerns:

• Provision for credit losses has increased from $385 million in Q1 2023 to $456 million in Q1 2025, which may indicate rising credit risk or economic challenges affecting loan quality.
• Total non-interest expenses, particularly salaries and employee benefits, have increased, from $412 million in Q1 2023 to $453 million in Q1 2025, which could pressure margins if revenue growth slows.
• Long-term debt has grown from approximately $18.2 billion in Q1 2023 to $21.5 billion in Q1 2025, increasing leverage and interest costs.
• Net cash used in financing activities turned negative in Q1 2025 (-$113 million), contrasting to positive inflows in previous periods, possibly reflecting more debt repayments or share buybacks.
• Accumulated other comprehensive income shows persistent losses, which may affect equity if trends continue.

Summary: OneMain Holdings has shown solid revenue and net income growth over the last few years, supported by increasing net interest income and non-interest income. Operating cash flows remain strong, and shareholder equity is gradually improving. However, rising provisions for credit losses and increasing expenses highlight potential challenges in credit quality and cost management. Additionally, growing long-term debt adds to leverage risk, although interest expense increase appears manageable. Overall, the financials demonstrate a company expanding its scale and profitability, while navigating typical risks associated with credit and operational costs.