Enova International (ENVA -5.30%), a digital financial services company focused on non-prime consumer and small business lending, released its quarterly earnings on July 24, 2025, covering the second quarter of fiscal 2025. The most significant news was that the company outperformed both revenue (GAAP) and earnings (non-GAAP) estimates, reporting Non-GAAP earnings per share (EPS) of $3.23 compared to analysts’ projections of $2.98, and GAAP revenue of $764 million over the $756.58 million estimate. This marked the fifth straight quarter of over 20% year-over-year growth in both revenue and originations. The quarter was highlighted by continued strength in new and repeat lending activity, with some caution warranted regarding increased net charge-off ratios and a modest drop in net revenue margin. Overall, the company delivered a solid quarter, outpacing expectations in profitability and revenue growth.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $3.23 | $2.98 | $2.21 | 46.2% |
| EPS (GAAP) | $2.86 | $1.93 | 48.2% | |
| Revenue (GAAP) | $764 million | $756.58 million | $628 million | 21.7% |
| Adjusted EBITDA | $203 million | $163 million | 24.5% | |
| Net Revenue Margin | 58% | 59% | (1.0 pp) | |
| Net Charge-Off Ratio | 8.1% | 7.7% | 0.4 pp |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Strategic Focus
Enova International provides digital lending solutions primarily to non-prime consumers and small businesses. Its brands, such as CashNetUSA, NetCredit, and OnDeck, offer online personal loans, lines of credit, and small business financing. Enova’s key differentiator is its use of advanced analytics and machine learning to underwrite and manage credit risk at scale, enabling quick funding decisions and efficient risk management.
Over recent years, the company has concentrated on building sophisticated proprietary technology, growing its product suite, and expanding its addressable market. Critical success factors include regulatory compliance, expansion across customer segments and geographies, maintaining competitive technology, and consistently delivering satisfactory customer experiences. Market diversification and ongoing development of new offerings remain core to Enova’s risk management and growth strategies.
Inside the Quarter: Financial and Strategic Highlights
Enova reported GAAP revenue of $764 million, up 22% year over year, and Non-GAAP EPS rose 46% from the previous year’s quarter. Adjusted EBITDA grew to $203 million, an increase of 25%. This also marks the fifth consecutive quarter of more than 20% year-over-year growth in both revenue and loan originations.
Loan and finance receivables ended the period at $4.14 billion, rising 20% year over year. Loan originations (non-GAAP) reached $1.80 billion, a 28% increase from the prior-year quarter. The composition of the portfolio also shifted further toward lines of credit, which made up 55.8% of the average combined loan and finance receivable balance (non-GAAP), compared to 52.3% in the prior year. Installment loans accounted for 44.2% of the average receivable balance.
Credit quality remained stable, with some caution signals. The net charge-off ratio increased to 8.1%, up 0.4 percentage points from the year-ago quarter. Net charge-offs measure the percentage of outstanding principal and interest balances written off as losses, less recoveries. This uptick was attributed mainly to higher volumes of new customer originations, which tend to default at a higher rate in the early lifecycle. However, the 30+ day delinquency ratio dropped to 7.1% from 7.5% in the prior-year quarter, indicating improved payment performance among borrowers past due over a month.
Net revenue margin, which shows the share of revenue retained after charge-offs and direct lending costs, dipped to 58% from 59% compared to the prior year. Share repurchases continued, with $54 million spent, and liquidity remains strong at $1.1 billion as of June 30, 2025.
Looking Ahead: Guidance and Areas to Watch
With revenue growth expected to outpace originations growth, investors should monitor several key factors in coming quarters. The upcoming CEO and CFO transitions, effective in January 2026, introduce management change as a focal point. In addition, ongoing regulatory developments could affect operating strategies or product offerings, given the heavily regulated nature of non-prime lending.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
