OneMain (OMF 1.21%), a leading personal lender focused on nonprime consumers across the United States, delivered results that exceeded Wall Street expectations. The company announced its results on July 25, 2025, reporting adjusted earnings per share (EPS) of $1.45, above the consensus forecast of $1.23 (non-GAAP), and revenue of $1.5 billion, surpassing the $1.186 billion analysts anticipated (GAAP). Net income (GAAP) climbed to $167 million, more than doubling the prior year quarter’s result. These gains were driven by strong growth in loan originations and improved credit performance (non-GAAP). Overall, the quarter represented significant progress across the company’s core metrics and ongoing efforts to control risk in a changing economic landscape.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Consumer & Insurance Segment (Non-GAAP) | $1.45 | $1.23 | $1.02 | 42.2% |
| Revenue (GAAP) | $1.5 billion | $1.19 billion | $1.39 billion | 10.0% |
| Net Income | $167 million | $71 million | 135.2% | |
| Consumer Loan Originations | $3.9 billion | $3.58 billion | 9.2% | |
| Managed Receivables | $25.2 billion | $23.7 billion | 6.6% | |
| Estimate and guidance figures reflect company and analyst consensus as of the reporting date. |
Business Overview and Recent Focus
OneMain is a nationwide consumer finance company specializing in lending to nonprime customers. Its primary business centers on personal loans, but it also offers auto finance, credit card products, insurance, and financial wellness platforms. The company operates a large physical branch network -- over 1,300 locations -- alongside digital capabilities, enabling it to serve customers across 47 states and through online channels.
In the past year, OneMain has focused on managing credit risk, expanding its reach through digital and product innovation, and finding ways to improve operational efficiency. Key to its business are underwriting discipline, robust customer servicing, and the ability to adapt to evolving consumer and economic conditions. Successfully growing originations while controlling charge-offs and maintaining compliance with regulatory requirements are essential for long-term performance in the nonprime lending space.
Quarterly Highlights: Strong Results and Key Developments
OneMain’s performance stood out both in terms of financial results and underlying portfolio health. Adjusted EPS reached $1.45, beating Wall Street’s estimate by 17.9%. The revenue figure was a substantial $314 million above analyst forecasts. Net income (GAAP) climbed to $167 million for the quarter, up 135% from the prior year quarter. Consumer loan originations grew 9% from the prior year quarter. Receivables under management rose 7% to $25.2 billion. These outcomes were driven by continued demand for personal loans and the company’s ongoing expansion in auto finance and credit card segments.
The net charge-off ratio for consumer and insurance (C&I) loans declined to 7.19% from 8.29% year over year. Charge-offs represent loans written off as uncollectible relative to total loans, and the 30+ days delinquency ratio improved to 5.17% from 5.45%.
The company continued to invest in its product platform and digital services. Growth in the "BrightWay" credit card portfolio saw receivables rise to $752 million, with the auto finance business reaching $2.34 billion in receivables. Both areas are described as being in a “seasoning” phase, meaning they are still maturing and establishing predictable performance patterns. In the company’s insurance segment, income remained flat at $111 million.
Operating expenses rose 11% to $415 million, slightly outpacing receivables growth. Management noted that expense growth reflected strategic investments intended to support future profitability. Liquidity remained strong as of June 30, 2025, with $769 million in cash and equivalents, broad access to revolving and conduit credit lines, and unencumbered receivables of $9.7 billion, supporting robust funding flexibility.
The company returned capital to shareholders through share repurchases—buying back approximately 460,000 shares for $21 million—and declared a quarterly dividend of $1.04 per share on July 25, 2025. The company’s ongoing Industrial Loan Company (ILC) charter application was described as “additive but not essential” to strategic plans.
Looking Ahead: Guidance and Investor Focus
Leadership repeated that they have not seen weakness in the customer base, despite macroeconomic volatility, and that conservative reserve overlays—including a 30% stress buffer applied to new originations since August 2022—remain in place as a precaution.
Looking toward upcoming quarters, investors will be watching the path of credit risk in the maturing credit card portfolio, progress on digital and branch network efficiency, and whether operating expense growth is brought into closer alignment with receivables growth. Monitoring reserve levels and response to any economic or regulatory shifts—especially as the ILC application remains in progress—will also be key areas of focus.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
