Enova International Q4 Earnings Call Highlights

Enova International (NYSE:ENVA) reported fourth-quarter and full-year 2025 results that company leaders said capped a “record year,” driven by strong origination growth, stable credit performance, and what management described as significant operating leverage in its model. The company also provided an initial outlook for 2026 and discussed its pending acquisition of Grasshopper Bank, which it expects to close in the second half of 2026.

Leadership transition and Grasshopper Bank deal

Executive Chairman David Fisher opened the call by noting leadership changes that took effect Jan. 1, with Steve Cunningham becoming CEO and Scott Cornelis becoming CFO, while Fisher transitioned to executive chairman. Fisher said he has committed to remain in the executive chairman role for at least two years and called the succession “thoroughly, thoughtfully, and deliberately planned over more than a year.”

Management reiterated its strategic rationale for the pending Grasshopper Bank acquisition, which was announced in December. Fisher said the combination is intended to simplify Enova’s regulatory structure, open additional markets for consumer products, add low-cost funding sources, and provide a platform for new product opportunities.

Cunningham said the two companies are operating “business as usual” until close. After closing, he said a first priority is to expand Enova’s footprint with its existing product set, which he said underpins the revenue synergies discussed previously.

Full-year 2025 performance: originations, revenue, and earnings growth

Cunningham said Enova delivered “another exceptional year,” citing 27% origination growth in 2025 that led to nearly 20% revenue growth. He added that stable credit and operating leverage drove adjusted EPS growth of 42% for the year. He emphasized that 2025 marked the second consecutive year of adjusted EPS growth above 30%, which he attributed to Enova’s diversified products, online-only model, and risk management and technology capabilities.

By year-end, Enova’s portfolio reached a record $4.9 billion, up 23% year over year. Management said small business products represented 68% of the portfolio, with consumer products at 32%.

Fourth-quarter results: record originations and stable credit

For the fourth quarter, Enova reported originations of $2.3 billion, up 32% year over year. Cornelis said total company revenue increased 15% from the fourth quarter of 2024 to $839 million, driven by 23% year-over-year growth in combined loan and finance receivable balances on an amortized basis.

Segment performance showed continued strength in small business lending, while consumer grew more modestly year over year:

• Small business: Revenue rose 34% year over year to $383 million; receivables ended the quarter at $3.3 billion (up 34%); originations increased 48% year over year to $1.6 billion.
• Consumer: Revenue increased about 3% year over year to $446 million; receivables ended the quarter at $1.6 billion (up about 6%); originations grew 2% year over year to $613 million.

Cunningham said consumer originations accelerated as the quarter progressed, with December “exceptionally strong” for the second year in a row. In the question-and-answer session, he said early January showed similar strength, but noted demand typically falls off later in January and into the first quarter.

On credit, Cornelis said consolidated net revenue margin was 60% in the fourth quarter, at the higher end of the company’s expected range. The consolidated net charge-off ratio declined 60 basis points year over year to 8.3%.

• Consumer net charge-off ratio: 16%, flat sequentially and year over year, which Cornelis said reflected improvement versus prior expectations.
• Small business net charge-off ratio: 4.6%, within the expected range and described as “remarkably stable” over the past two years.

The consolidated 30+ day delinquency ratio ended the quarter at 6.7%, down 70 basis points from a year earlier, and Cornelis said the consolidated fair value premium was 115%, stable with levels reported over the past two years.

Marketing and operating expenses: leaning into demand

Management said it increased marketing to capture demand at attractive unit economics. Cunningham noted marketing expense was 23% of total revenue in the fourth quarter and said Enova expects marketing to revert to more typical levels, while remaining opportunistic.

Cornelis provided additional detail on expense trends:

• Total operating expenses: 36% of revenue, compared to 34% in the year-ago quarter.
• Marketing: $192 million, or 23% of revenue, up from $151 million, or 21% of revenue, in the year-ago quarter.
• Operations and technology: $68 million, or 8% of revenue, up from $58 million, or 8% of revenue; Cornelis said O&T costs should be around 8% of revenue as originations and receivables grow.
• G&A: $47 million, or 5.6% of revenue, up from $38 million, or 5.2% of revenue; Cornelis said the quarter included $6.7 million of one-time deal-related expenses tied to the Grasshopper acquisition.

Excluding the one-time deal costs, Cornelis said G&A was $41 million, or 4.8% of revenue. He said Enova expects near-term G&A to run between 5% and 5.5% of revenue, excluding one-time costs.

Balance sheet, capital allocation, and 2026 outlook

Cornelis said Enova ended the fourth quarter with about $1.1 billion in liquidity, including $422 million of cash and marketable securities and $649 million of available capacity on debt facilities. During the quarter, Enova repurchased about 278,000 shares for $35 million, and began 2026 with about $106 million of repurchase capacity available under its senior note covenants.

Cost of funds was 8.3% in the fourth quarter, down from 8.6% in the third quarter, which Cornelis attributed to lower SOFR rates and execution on financing transactions. He said the company expects some reduction in cost of funds during 2026 even without additional Fed rate cuts, depending on spreads, funding mix, and origination trends.

Adjusted EPS rose 33% year over year in the fourth quarter to $3.46 per diluted share, while adjusted EBITDA increased 21% to $211 million. Enova’s effective tax rate was 20% in the quarter, and Cornelis said the normalized annual effective tax rate is expected to remain in the mid-20% range.

For the first quarter of 2026, Cornelis said Enova expects revenue to be flat to slightly higher sequentially, reflecting seasonality and origination mix. He guided to a consolidated net revenue margin of 55% to 60%, marketing in the upper teens as a percentage of revenue, O&T around 8%, and G&A between 5% and 5.5% (excluding one-time items). He also said interest expense as a percentage of revenue is expected to be around 10.5%. With a more normalized tax rate, Cornelis said these assumptions imply first-quarter 2026 adjusted EPS growth of 20% to 25% versus the first quarter of 2025.

For the full year 2026, Cornelis said that assuming a stable macroeconomic environment with no material change in employment and a largely unchanged rate environment, Enova expects originations growth of around 15% versus 2025, revenue growth similar to originations growth, and adjusted EPS growth of at least 20%. He emphasized that the 2026 outlook does not include any contribution from the Grasshopper acquisition.

On regulatory and capital considerations post-close, Cunningham said Enova is currently around a 17% to 18% tangible capital ratio, which he described as analogous to a Tier 1 leverage ratio, and said he would not expect the company to change its leverage position “dramatically.” He added that capital allocation priorities remain focused on organic growth opportunities first, followed by share buybacks, with inorganic opportunities ranked third.

About Enova International (NYSE:ENVA)

Enova International, Inc (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.