OMF

Encore Capital Group, Inc. ECPG offers a straightforward trade-off. A discounted valuation and improving earnings expectations support the upside case, while leverage, rising legal costs and heavy U.S. exposure keep risk elevated.The decision therefore hinges on whether earnings momentum can stay strong enough to offset those pressure points. Current estimates and operating trends are encouraging, but the stock's broader style profile remains mixed. ECPG trades at 7.1X forward 12-month earnings, below the 8.5X multiple for its industry. The gap widens against the Zacks Finance sector at 16.9X and the S&P 500 at 20.8X. P/E F12M Image Source: Zacks Investment Research That relative discount supports the value argument and is consistent with ECPG's Value Score of B. Still, valuation alone is not enough because the company's own five-year median multiple is 6.5X, below the current level. The Zacks Consensus Estimate points to a clear earnings step-up. Earnings are projected to increase from $10.91 per share in 2025 to $13.52 in 2026 and $14.64 in 2027. Earnings Estimates Image Source: Zacks Investment Research Expectations have also moved higher recently. The current year earnings estimate increased 3.9% over the past four weeks, adding evidence that analysts are becoming more constructive on Encore's earnings trajectory. Earnings Estimate Revision Trend Image Source: Zacks Investment Research Second-quarter global collections rose 13% year over year to a record $737 million. Strong U.S. portfolio supply, continued purchasing and better execution are helping Encore turn recent investment into higher cash collections.Technology is another support. New technologies, enhanced digital capabilities and operational improvements are lifting U.S. collections, while management expects collection forecasts to adjust gradually and shift some of that outperformance into future portfolio revenue. Driven by this momentum, the Zacks Consensus Estimate for sales reflects a year-over-year rise of 8.9% in 2026 and 2.1% in 2027. Sales Estimates Image Source: Zacks Investment Research PRA Group, Inc. PRAA provides a useful industry reference because it also purchases nonperforming loan portfolios and reported $559 million of second-quarter 2026 cash collections. OneMain Holdings, Inc. OMF, a large nonprime consumer lender, reported $26.9 billion of managed receivables in the same quarter, underscoring the scale of consumer credit exposure feeding the broader credit ecosystem. The balance sheet limits how aggressively investors should interpret the upside. Borrowings stood at $4.18 billion at June 30, 2026, leaving earnings exposed to funding costs and refinancing conditions.Legal collection costs also rose faster than the broader expense base. First-half legal collection expenses increased 25.8% year over year, so slower collections could weaken operating leverage and cash efficiency. Midland Credit Management accounted for 85.2% of global portfolio purchasing dollars in the first half of 2026. That concentration has been productive while U.S. supply and consumer payment behavior remain favorable.Europe offers less offset at present. The U.K. market remains subdued because of lower consumer lending, low delinquencies and competition, increasing the importance of continued U.S. execution. The bottom line is favorable but not one-sided. ECPG currently carries a Zacks Rank #1 (Strong Buy), which reflects a positive near-term earnings-revision signal, while the Value Score of B reinforces the relative-valuation case. Additionally, PRA Group also sports a Zacks Rank #1, while OneMain Holdings carries a Zacks Rank #4 (Sell).You can see  the complete list of today's Zacks #1 Rank stocks here.The Growth Score of F, Momentum Score of C and VGM Score of F show why discipline still matters. The combination suggests ECPG's case is strongest on valuation and earnings revisions rather than a broad-based growth and momentum profile, making continued execution central to sustaining the current setup. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report PRA Group, Inc. (PRAA) : Free Stock Analysis Report OneMain Holdings, Inc. (OMF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026, at 9 a.m. ET Head of Investor Relations - Peter R. Poillon Chairman and Chief Executive Officer - Douglas H. Shulman Chief Financial Officer - Jeannette E. Osterhout Operator: Welcome to the OneMain Financial Second Quarter 2020 Earnings Conference Call and Webcast. Hosting the call today from OneMain is Peter R. Poillon, Head of Investor Relations Today's call is being recorded. It is my pleasure to turn the floor over to Mr. Peter R. Poillon. Please go ahead, sir. You may begin. Peter R. Poillon: Thank you, operator. Good morning, everyone, and thank you for joining us. Let me begin by directing you to Page 2 of the second quarter 2026 investor presentation which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures. The presentation can be found in the Investor Relations section of the OneMain website. Our discussion today will contain certain forward-looking statements reflecting management's current beliefs about the company's future, financial performance, and business prospects, and these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in our earnings press release. We caution you not to place undue reliance on forward-looking statements. If you are listening to this via replay at some point after today, we remind you that the remarks made herein are as of today, July 29, and have not been updated subsequent to this call. Our call this morning will include formal remarks from Douglas H. Shulman, our Chairman and Chief Executive Officer and Jeannette E. Osterhout, our chief financial officer. After the conclusion of our formal remarks, we will conduct a question and answer session. I would like to now turn the call over to Doug. Douglas H. Shulman: Thanks, Peter. Good morning, everyone. Thank you for joining us today. Let me begin with a few highlights from the quarter. And then discuss the progress we are making across the business as we continue to execute our strategy and drive profitable growth. We had strong financial results in the quarter. Including very good receivables growth, driven by product innovation and positive delinquency trends. Point to lower losses in the second half of the year. Strong year over year originations growth of 10 percent supported receivables growth this quarter. By focusing on high quality loan originations, continuously improving the customer experience, and enhancing our product offering, we have driven this growth while also maintaining a conservative underwriting posture. Credit performance was good, and tracked in line with our expectations. And early delinquency trends continued to improve. Our 30 to 89 delinquency declined 7 basis points year over year. Accelerating the year over year improvement from last quarter's 1 basis point decline. In the first half of the year, 30 to 89 declined 28 basis points. that is better than last year and the pre pandemic average. We are pleased that delinquency performance continues to move in the right direction. Which supports our expectation for improvement in losses over the second half of the year and into 2027. C&I net charge offs were 8.2%, and consumer loan net charge offs were 7.8%. Both in line with our expectations. And we continued to have strong recoveries in the quarter. We reached a significant milestone this quarter. Surpassing 4 million customer accounts. An increase of 14 percent from a year ago. This growth has been driven by the success of auto finance and credit cards combined with our continued product innovation in our core personal loan business. Our personal loan business, several recent initiatives are progressing very well. Our enhanced debt consolidation offering makes the loan process easier for our customers and helps most customers improve their credit scores. Also, because the majority of our debt consolidation loans are secured, they have lower losses compared to our overall personal loan portfolio. Our home fixture-secured product offering was introduced earlier this year. While it is still early, we are seeing good uptake from customers and strong initial credit results. Like any new offering at OneMain, we started with a small test to prove out results. And given that we like what we have seen, we are now starting to expand it. We also continued to expand our analytics around bank data to deliver more personalized offers and improve customer engagement. Insights from this data strengthen our underwriting, improve credit outcomes, and increase pull through rates. Initiatives like these are helping us better serve our customers while strengthening the long term performance of our personal loan business. Turning to our newer businesses, starting with auto finance. Originations grew 19 percent during the quarter, and receivables reached $3 billion, an increase of 14 percent year over year. We continue to drive solid growth through the expansion of our dealer network and enhanced underwriting capabilities. Importantly, credit performance remains in line with expectations and continues to outperform. The broader industry. Turning to our credit card business, we delivered another very strong quarter. With positive results across all important metrics. Receivables increased $161 million in the quarter, and nearly $400 million year over year. New BrightWay cards, which include both higher rewards and no reward credit cards, continue to attract new customers and support strong growth. Customer accounts increased to 1.3 million, up a 155 thousand from last quarter and more than 400 thousand from a year ago. Credit metrics continue to improve with lower losses and delinquency than a year ago. Just as importantly, as we scale, we are seeing good revenue growth and continuing to improve the long term profitability of the business. With marginal operating costs per account are down about 25 percent year over year. We are encouraged by the continued growth and improvement in the profitability of our credit card portfolio. Looking ahead, we will continue to invest in customer acquisition digital capabilities, and collections optimization to strengthen credit performance and support profitable growth. for the long term. As I discussed last quarter, we continue to invest in technology, data, and AI capabilities to enhance our business and drive growth and efficiency. We are currently rolling out a new loan origination system for customers and team members that streamlines our process and should help support profitable growth. We have built an internal AI tool that gives our more than 9 thousand team members information they need, like policies or procedures, at their fingertips in an intuitive conversational manner driving efficiency and speeding up customer service. Our engineering and product teams use AI tools to drive efficiency across the product development life cycle. We are also learning and piloting AI in a very controlled manner in a number of areas, where we see high potential returns and value for our customers. Let me briefly touch on the consumer. Although the current economic environment continues to have some uncertainty, our customers remain resilient and metrics across the industry point to a strong consumer. While we are mindful that geopolitical tensions and fluctuations in energy prices, create some risk, we have not seen it show up in our data and unemployment remains low. Providing ongoing support for credit performance. As always, we are closely monitoring trends across the consumer and our portfolio. But credit is performing well, showing that our customer has been able to make it work. And our early stage consumer loan and credit card delinquency trends give us confidence that we are in a strong position. Turning to capital allocation. Our priorities remain unchanged. We will continue to extend credit to every customer that meets our risk-return framework. And we will continue to invest in the business to meet customer needs, drive efficiency, and create long term shareholder value. A regular dividend currently $4.20 per share, on an annualized basis. Represents a 7 percent yield at today's share price. In the second quarter, we repurchased 576 thousand shares for $32 million, bringing our total repurchases year to date to $137 million, which is a $100 million more than we repurchased in the first half of 2025. Looking ahead, our approach to share repurchases will continue to be guided by several factors. Including the capital requirements of the business, market dynamics, and economic conditions. We continue to feel good about our business, as we are capitalizing on the core competitive advantages of OneMain. Including best in class data science and underwriting, an experienced and proven team with unparalleled expertise serving the non prime consumer and a strong diversified balance sheet with a long liquidity runway. We remain confident in our competitive position and see many opportunities to drive capital generation growth well into the future as we execute on our strategic priorities. With that, let me turn the call over to Jeannette. Jeannette E. Osterhout: Thanks, Douglas, and good morning, everyone. As Doug said, we delivered strong second quarter results across key financial metrics including profitable growth, good credit results, as our customers remain resilient, disciplined expense management, coupled with investment for the future, and continued strong balance sheet management. This reinforces our confidence in the strength of the business and our outlook for the future. Delinquency metrics, the best indicator of future loss performance, are improving relative to last quarter. And we are seeing originations growth accelerate across our business. Consumer loan originations grew 10 percent year on year, while both card origination units and purchase volume increased significantly. This strong performance supported our 7 percent growth in managed receivables, up from 6 percent in the first quarter. Importantly, we were able to deliver this growth while maintaining our conservative credit posture across all our products as we continue to focus our underwriting on higher quality customers positioning us well to continue to generate attractive returns and create meaningful shareholder value in the quarters ahead. During the quarter, we raised $1.1 billion in the secured market. Further strengthening our funding profile adding flexibility for future issuances. On the capital return front, we repurchased 2.5 million shares in the first half of the year. More than 3x the amount repurchased during the same period last year. Second quarter GAAP net income of $152 million, or $1.32 per diluted share compared to $1.40 per diluted share the second quarter of 2025. C&I adjusted net income per diluted share of $1.31 compared to $1.45 in the second quarter of 2025. As higher total revenue in the current quarter was offset by higher loss provisions driven largely by a higher reserve build in the quarter due to the larger growth in receivables we saw this quarter compared to the prior year. Importantly, capital generation, the metric against which we manage and measure the business, totaled $229 million, up 3 percent from $222 million in the second quarter of 2025. Managed receivables ended the quarter at $26.9 billion, up $1.6 billion or 7 percent from a year ago. Managed receivables at the end of June included $1.7 billion of receivables serviced for third parties. Second quarter originations of $4.3 billion, increased 10 percent compared to the second quarter of last year. This strong growth was achieved while maintaining our conservative underwriting, reflecting the effectiveness of our new products and innovative growth strategies. The personal loan product innovations Douglas discussed are gaining traction. Importantly, early indicators of performance suggest these initiatives are attracting more customers while also delivering solid credit performance consistent with our expectations. In auto finance, originations grew by 19 percent year on year during the quarter. Supported by the ongoing expansion of our dealer network continued improvements in our underwriting, and growth from our partnerships. Additionally, our credit card business also delivered strong growth. Customer accounts increased 44 percent year on year, and purchase volume increased 57 percent year on year. Driven by new reward options and enhancements to the BrightWay value proposition that attracted new customers and deepened engagement with existing ones. Key metrics remain strong, including utilization and revolve rates. And credit performance continued to steadily improve. Turning to yield. Our second quarter consumer loan yield was 22.7%. Up 16 basis points from last quarter and 11 basis points year on year. Even as our lower loss, lower yield auto book continued to grow as a percentage of our consumer loan portfolio. We continue to see strong asset yields as we grow our portfolio. Which is a testament to our disciplined pricing approach. Looking ahead, we expect consumer loan yield to remain around recent levels and follow typical seasonal patterns. We also continued to see strong revenue yield in our credit card portfolio. With total card revenue yield increasing 33 basis points year on year to 33.6%. Total revenue in the second quarter was $1.6 billion, up 6 percent compared to last year. Interest income of $1.4 billion, grew 6 percent from the second quarter of last year. Driven by net finance receivables growth and the improvement in asset yields that I just mentioned. Other revenue of $207 million was also up 6 percent from last year. Primarily due to higher credit card revenue, as we grow the card business along with higher servicing fees from our portfolio of loans serviced for third parties. Interest expense for the quarter was $326 million, up 3 percent compared to the second quarter of 2025. Driven by higher average debt to support our receivables growth. Our interest expense as a percentage of average net receivables was 5.3% this quarter. Down from 5.4% in the second quarter of 2025. Reflecting the actions we took last year to proactively manage our debt profile and take advantage of market windows to best position us for the future. We expect our funding costs to remain at approximately this level throughout the rest of 2026. Second quarter provision expense was $610 million, comprising net charge offs of $506 million and a $104 million increase in our reserves driven primarily by the increase in receivables during the second quarter. Our loan loss reserve ratio of 11.6% is up slightly from 11.5% last quarter. Primarily due to the growth of the card business, which carries a higher reserve rate. Policyholder benefits and claims expense for the quarter was $44 million. Down from $54 million in the second quarter of last year. The year on year decrease was driven by a reserve release in the second quarter. We continue to expect quarterly PBNMC expense in the mid-$50 million range going forward. Let's turn to credit starting on slide 8. 30 to 89 delinquency on June 30 excluding Foursight was 2.82%, Down 7 basis points compared to a year ago. Improving on the trend we saw last quarter. On Slide 9, you see the 28 basis point year to date improvement in 30 to 89 delinquency was better than the 17 basis point improvement last year. And 24 basis point improvement in the pre pandemic period. 90 plus delinquency ex-Foursight was 3 basis points above last year. A solid improvement over the 14-basis point year on year increase we saw last quarter. And we expect 90 plus delinquency to follow the improvement we saw in our 30 to 89 delinquency throughout the remainder of the year. Combined, our 30 plus delinquency ex-Foursight was 5.03%, down 4 basis points from the prior year, improved from the 14-basis point year on year increase last quarter. It is also worth noting that our back book, which comprises prior to August 2022, continues to present a modest headwind to our credit performance. As it remains a disproportionate contributor to delinquency rates. As shown on slide 9. The back book now represents just 4 percent of the portfolio, but accounts for 12 percent of 30 plus delinquencies. More than twice the level we would typically expect for vintages. At this stage of seasoning. While the front book vintages are performing well, the negative impact of the back book stubbornly remains on our balance sheet. Moving to net charge offs for the quarter. As shown on slide 10. Second quarter C&I net charge offs, which include the results from our growing higher loss higher yield credit card portfolio, were 8.2%. Down 21 basis points sequentially and up 63 basis points year on year. Consumer loan net charge offs, which exclude credit card, were 7.8% in the second quarter. Down 25 basis points sequentially and up 58 basis points from a year ago. I will discuss credit cards separately in a moment. But let me first talk about the consumer loan portfolio loss performance. The year on year increase was expected as it was predominantly driven by the elevated 90 plus delinquency we saw last quarter, rolling through to loss this quarter. Importantly, as I just discussed, we are seeing better 90 plus delinquency performance this quarter as compared to last quarter. Combined with the improvements in early stage delinquency metrics, these give us confidence that our losses will improve significantly in the second half of the year. Recoveries in the quarter were strong at $117 million, or 1.9% of average net receivables. This performance was driven by continued enhancements to our comprehensive loss recovery strategy. As a reminder, C&I net charge offs include a 43 basis point contribution from our credit card business which has higher yields and higher losses. We like the overall economics given the attractive risk adjusted returns we are generating on the credit card portfolio. I would like to briefly discuss our improving credit performance in credit cards. Credit card net charge off declined 186 basis points year on year to 17.7%. Additionally, 30 plus delinquencies fell 146 basis points year on year. Giving us line of sight to further improvement in year on year loss performance over the remainder of the year. These sustained improvements strengthen our conviction in the credit card business as we look to continue to grow accounts in a disciplined way. Loan loss reserves ended the quarter at $2.9 billion, or 11.6% of ending net receivables. The increase in the loan loss ratio from 11.5% last quarter and last year was driven by the change in mix of our portfolio associated with the strong growth in our credit card business as card receivables grew more than 50 percent year on year. While the credit card reserve ratio was largely unchanged from the prior quarter, it is nearly 2x higher than our consumer loan portfolio reserve rate. Given this dynamic, the continued growth in the credit card business will modestly raise the overall reserve ratio in the quarters ahead. Now let's turn to expenses on slide 11. Operating expenses were $439 million, up 6 percent compared to a year ago. Driven by continued investment our credit card and auto finance businesses as well as data science, technology, and digital capabilities. These investments are focused on enhancing the customer experience, improving our team member performance by boosting productivity and effectiveness, enhancing data and analytic capabilities, and other efforts to drive long term growth and future operating efficiency. Our OpEx ratio this quarter was 6.7%. Flat to the prior year and down 10 basis points from last quarter. The sequential improvement reflects our disciplined expense management and ability to continue to drive operating leverage. As we look ahead, we will thoughtfully manage expenses while investing for the future. Now turning to funding and our balance sheet on slide 12. During the quarter, we further strengthened our balance sheet. In June, we issued a $1.1 billion 3-year revolving ABS. Strong broad based demand from both new and existing investors drove very tight spreads. And attractive pricing of about 5.1%. Highlighting the strength of our funding platform and excellent access to capital. At the end of the second quarter, our bank lines were unchanged at $7.5 billion. Providing substantial liquidity and additional funding flexibility to our program. Our net leverage at the end of the second quarter was 5.5x. Flat to a year ago and within our target range of 4x to 6x. Our balance sheet remains a key competitive advantage. Supported by staggered long term maturities, diversified funding mix, ample liquidity, and consistent market access. This combination provides flexibility, supports stable execution, and positions us well through economic cycles. Turning to our full year 2026 guidance, as shown on slide 14. We are reiterating all our guidance metrics. We are maintaining our full year managed receivables growth in the range of 6 to 9 percent, supported by momentum across all 3 of our products, personal loans, auto finance, and credit cards. We expect C&I net charge offs to come in between 7.4 to 7.9 percent, as we see improving early and late stage delinquency trends that support our expectation that losses will continue to improve as we look ahead. And we are maintaining our OpEx ratio guide of approximately 6.6%, for the year. In closing, we are pleased with our financial performance this quarter. And the ongoing progress we are making on key strategic priorities. Our growth initiatives are gaining traction as we are across our newer products—auto finance and credit card. And innovating in our personal loan business. All while maintaining a conservative underwriting posture. The positive direction of early stage credit trends reinforces our view that losses will decline significantly in the second half of the year. As we look ahead, we remain focused on disciplined growth while delivering efficiency across the organization. Which together with our strong balance sheet and funding platform, position us well for the future. And support our ability to drive capital generation, growth, excess capital, and attractive returns in 2026. And beyond. So with that, let me turn the call back to Doug. Douglas H. Shulman: Thanks, Jenny. In closing, we remain very confident in the strength and trajectory of our business. We now serve more customers than ever, with over 4 million accounts across a diverse set of products, positioning us as the lender of choice. for hardworking Americans. We remain committed to our conservative underwriting posture, while continuing to drive growth in our personal loan business through product innovation and profitably scaling auto finance and credit cards. Credit metrics are trending well, and we expect credit performance to improve in the second half of 2026 with further improvements expected in 2027. And our strong balance sheet with staggered maturities and excess liquidity remains a key competitive advantage. Before I open it up to questions, I would like to briefly mention 2 recognitions we recently received. First, OneMain was once again named the most loved workplace by the Best Practice Institute. marking our 5th consecutive year receiving this recognition. This distinction is based on direct feedback from our team members. And reflects the special culture we have worked hard to build at OneMain. Second, OneMain has been named to Time Magazine's inaugural list of America's Best Companies, which evaluates companies across financial performance, employee satisfaction, and transparency. We are proud of these recognitions because they reflect the strength of our business the dedication of our team members, and our continued focus on creating long term value for our customers, employees, and shareholders. I would like to thank all of our team members their commitment to our customers, their outstanding execution, and the support they provide to 1 another every day. With that, let me open it up to questions. Operator: Thank you. Will now conduct a question and answer session. You may press 2 if you would like to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Once again, that is 1 at this time. First question comes from Moshe Orenbuch with TD Cowen. Please proceed. Moshe Ari Orenbuch: Great. Thanks. And, I think both Doug and Jeannette, you both talked about improving delinquencies and kind of improving credit performance in the second half, and into 2027. I am wondering if we can kind of put a little bit of a finer point on that because obviously, 7.4% to 7.9% range is fairly wide. And as expected, you were slightly, in the range of that high end. In the first half. Just talk a little bit about the evolution of the portfolio given the things that you are seeing into the second half and the early part of 2027, if possible? Thanks. Jeannette E. Osterhout: Sure. Hi, Moshe. I think, as I said, we maintained our guidance in that range of 7.4 to 7.9. And the most important metrics that we look for the second half And into next year, those delinquency metrics that you mentioned, which are performing quite well. That would be the 30 to 89 delinquency, excluding Foursight, which was down 7 basis points year on year which is a further decline from the 1 basis point decline that we had in the first quarter and the 30 plus delinquency, excluding Foursight, which was down 4 basis points and better than the 14-basis point increase we had last quarter and the 90 plus delinquency, which was 3 basis points up year on year, but much better than last quarter's 14 basis point increase. So all of those delinquency metrics are moving us in the right direction. And they are where we are seeing us land where we expected based on the fourth quarter of last year, and last quarter's 90 plus. And so then if I look forward, we look at a at variety of scenarios and a range of outcomes, we are watching that delinquency. I just mentioned. We will watch the mix of the book, roll rates, growth, and then, of course, the macro environment. But to get to the midpoint of that range, we would need to see some of that better than normal seasonal delinquency continue. We are feeling pretty good about that. Moshe Ari Orenbuch: Got it. Maybe just kind of to follow up in a similar vein, every aspect of the P&L was a little better than our expectations. Fee revenue, net interest income, expenses, and even net charge offs were kind of in line, but the reserve rate, went up a little bit more. When we think about that going forward, I think you had mentioned on the call that it would be increasing modestly because of the credit card. I guess I would assume that the growth rate, you know, the relative growth rate of credit card loans was probably highest in Q2. So I guess I would hope that it would have particularly given what you had mentioned about improving credit card credit quality that would have potentially less of an impact going forward, but I kind of wanted to get your views on how to think about that reserve rate going forward? Jeannette E. Osterhout: Yep. Happy to talk about that. So we did talk about that change in reserves, which is really that portfolio mix impact And that is coming from cards, which as you mentioned, is performing quite well. And we do like the performance of credit. You know, that card reserve rate is about 2x our consumer loan portfolio reserve rate. So even as it improved, as the loss performance improves, I think it takes time for it to come into your reserve rate. So and as we see, we did we did see really strong growth in the second quarter. I do think we expect to continue to see really strong growth. So even though it is only 4 percent of the portfolio, going to 4.5 or 5 percent will raise our overall reserve rate. I would expect that reserve rate to move up to around 11.7 in the second half of the year. So I do not think it is a major shift but I do think it is going to put some pressure on that reserve rate. Moshe Ari Orenbuch: Thank you. Jeannette E. Osterhout: Thank you. Operator: The next question comes from Terry Ma with Barclays. Please proceed. Terry Ma: Hey, thank you. Good morning. Wanted to follow-up on the good morning. Jeannette E. Osterhout: Can you maybe just talk about the recovery benefit you saw this quarter? Terry Ma: It was quite elevated. As we look out to the back half of the year, does the improving credit in the back half also contemplate some sort of elevated recoveries and maybe just some color on kind of what is driving that, whether it is just selling more inventory or some improvements in your recovery process? Thanks. Jeannette E. Osterhout: Yep. So we are we are we are pretty pleased with our strong recoveries. And saw good trends in the second quarter, and it was a strong driver of our net charge off performance. We have been making investments, and we have talked about it for the last few quarters in our internal capabilities. And that is driving a lot of the improvements that we are seeing So internal changes would be, things like how we get in touch with customers, how we staff, how we manage our teams. But we are also looking at charged off sales with our long standing partners. And make those make those sales when we see attractive economics. We have had more inventory of charged off loans from the past 2 years. So we do have more assets to potentially sell. So I would say it is really what we have been seeing is a mix of both internal recovery capabilities being better and having more of the inventory, and finding partners we can get good economics on those sales. If I look for the rest of the year, you know, I think we can expect for our recoveries to be pretty good, I would say around maybe the first half, so something between the first quarter and the second quarter, but I think we are pretty confident that we like what we are seeing, and it is we are going to continue to see good recoveries going forward. Terry Ma: Got it. that is helpful. And then on the delinquency trends, I think those the early stage and the later stage came in better than our expectations. And I do think they are moving the right way. But last quarter, you guys mentioned kind of roll rates worsening in the 90 day bucket. Can you talk about that, whether or not that has kind of normalized a little? And then can you maybe just give some color on the roll rates from 90 day plus to gross default? If I just look at that, it looks like it kind of worsened over the last 3 to 4 quarters. Thank you. Jeannette E. Osterhout: Yep. So we talked a little bit about this, but we have seen historically low roll rates at the end of 24 and going through 2025. Actually, you know, 2025 was some of our lowest roll rate that we have seen certainly since the pandemic. In the first quarter, we saw some normalization back towards more typical historical levels. But what we like that we are seeing is, if you look at the 30 to 89 roll to 90 plus, we saw that peak in the first quarter and start to come down this quarter. Which we think is a good indication that those rolls through to loss will come back down as we look ahead. And help drive our loss performance in the second half of the year. And I do think that is what you are seeing when you look you mentioned GCO. And I think when you are seeing that, you are seeing some of that role that I just mentioned, from the first quarter go all the way through and roll from 90 plus to loss this quarter. And into that GCO bucket. So it is a bit of a roll rate story, and we are excited by what we are seeing in the early bucket. And feel pretty good about the future on GCO. And more importantly, where we see NCO, going back to your last question on recovery. Terry Ma: Great. Helpful. Thank you. Operator: The next question comes from Mark DeVries with Deutsche Bank. Please proceed. Mark Christian DeVries: Yes, thanks. Yeah. Douglas H. Shulman: Hey, Mark. We cannot hear you. Mark Christian DeVries: Hello? Can you hear me? We can hear you now. Oh, great. The impact the terms from the current portfolio. Douglas H. Shulman: Hey, Mark. We cannot hear you. Maybe, operator, we go to the next person. And, Mark, if you can call back in from another line. Operator: Okay. The next question comes from Donald Fandetti with Wells Fargo. Please proceed. Donald Fandetti: Hi, good morning. Can you talk a little bit about the bank ILC process, where you are, and kind of how you are thinking about timing. And then, on receivables growth, just given where you are tracking and the new products have been pretty well received, are you sort of feeling like you could end up towards the better end of that guide range? Douglas H. Shulman: Sure. We really do not have an update on the ILC. I have said before, an ILC would be accretive to our strategy, but we do not need it to execute our long term strategy. We feel we have a very strong application, and we continue to have constructive conversations with the relevant agencies. And so on that, we will keep people posted when there is any news. You know, on originations, we are pretty happy with you know, what we are seeing with originations. You know, as a reminder, we continue to have a conservative credit box. And the way we manage that is we still have really, since 2022, had a 30% stress overlay. So, we have put assumed more stress on the portfolio than is actually showed up. Just to be conservative in our underwriting models. And we are seeing really nice growth across all of our business lines. it is really driven by what we talked about earlier, which is, you know, in personal loans, a lot of product innovation, whether it is debt consolidation, home fixture-secured, streamlining application processes. Better information at the fingertips of our customers, and our, and our employees to make it just easier to move the loan process forward. Without compromising quality. The in auto, we have been adding new dealers, partnerships, refining our models in card. We have now created a variety of products, with different kinds of rewards. Some fees, some no fees. Refined our models. So we are very, you know, we are able now to target and bring on customers that are lower risk but also more likely to use their full line. it is just a lot of things. not changing our guidance at all, but, you know, it is what we are seeing, we are really happy with. Thank you. Operator: Right. The next question comes from Arren Cyganovich with Truist Securities. Please proceed. Aaron Cyganovich: Thanks. Douglas, you had mentioned in your remarks about an enhanced loan consolidation product that you have been seeing some good results from. Can you elaborate a little bit on some of the changes that were made there and, you know, how meaningful that could potentially be? Douglas H. Shulman: Yes. I mean, the first change is in the past we have always had loan consolidation as part of what we you know, it is always been an offering. But it is more been a intake offering. So somebody wants a loan and we then start talking to people about, you know, we see we see you have got a number of credit cards and other loans. You know, let's look if we could consolidate those get you a better deal, lower monthly payment, that kind of a thing. We have been—we developed now outgoing proposition, which is consolidate your loans with us, bring down your monthly payment, those kinds of things. So there is a set of you know, analytics on the back end where we think we could really provide value to a customer where we do outbound marketing. And then once it comes in, we now have tools that can quickly you know, we built out technology that can quickly you know, prepopulate for our employees different kind of offers that they can make for consolidation all of the information about people's loans that it that is available on the credit bureau to do it. And then we have really refined the direct payoff. And so we have kind of built on the back end payment much easier, better, faster, for us to actually pay off those other loans, which, you know, obviously leads to good credit performance. So it is kind of across the board from outbound marketing, just streamlined experience to back end payment processing to allow the loan consolidation. Aaron Cyganovich: Got it. Thank you. And, Jenny, just quickly on the on the loan yield comments in consumer loan. Expecting that to be around recent levels and following typical seasonal patterns. Can you remind me what the seasonal pattern is on the loan yield? Jeannette E. Osterhout: Yeah. Loan yield has some of our later stage. You get the 90 plus coming through in your loan yield. So you have both your revenue line and you also have some of the impact from auto coming through. And so usually, we typically see loan yields moderate a little bit in the second half of the year. And so I just say, I think you can expect it. We were at 22.7% this quarter. That was about 16 basis points up from the first quarter. it is our highest loan yield that we have had since the second quarter of 2022. Even while we are running the auto book, so I do expect you know, as we look ahead, that should shift down slightly. We are talking more like the first half in total. So I think you can the first half in total was about 22.6%. So I think that is what you can expect going forward. Aaron Cyganovich: Got it. Okay. Thank you. Operator: The next question comes from Mihir Bhatia with Bank America. Please proceed. Mihir Bhatia: Hi, good morning. Thank you for my Good morning. Douglas H. Shulman: Wanted to follow-up on the Donald's question about just growth and stronger potentially stronger growth from here? And maybe 1 way of thinking about it is, obviously have this overlay, as you mentioned, since 2022, but you I think you have talked in the past about doing a lot of by the way in testing, And maybe talk a little bit about what you are seeing in that. Mihir Bhatia: Are those weathering portfolios showing evidence that you could start selectively reducing some of the stress overlay? Whether it is in risk certain risk categories, geographies, products, however. Trying to understand what would drive faster growth given the credit improvement you are you are seeing and expecting? Douglas H. Shulman: Yeah. No. I am happy to talk about it. I mean, look. First, I just wanna make sure to frame as a reminder you know, we view growth as an outcome. we are very clear about the math. That you add receivables, you add profit. And so growth is great, but we do not chase growth. And we see growth as an outcome of a great product with a clear value proposition to our customers, marked analytics, customer experience, streamlining the company. All of those things lead to growth. But we keep, you know, very disciplined around our credit box. You know, I think if the broad question is, what would it take to open up? You know, it is a number of things. there is the resident testing. there is outperformance, like the things we are booking are performing you know, significantly better. The new customers we are booking performing significantly better than our models, would have told us. I think there is some question around clarity in the macro or—I am sorry, in the macro environment. And so, you know, on the Wethervane specifically, we are seeing it perform just fine, but it is not crossing. Our Wethervane testing is not crossing our 20 percent return on equity thresholds, which is you know, what it takes for us to book a loan. I think, we are really happy. Our current book is performing in line with expectations, and we can constructed a book that has credit moving in the right directions, and has really healthy, origination growth. But we are not at the at the point where we plan to open the box and, you know, we just need to see both Wethervane and the current book doing better than expected. Mihir Bhatia: Got it. Thanks. Maybe turning to just capital allocation and buybacks specifically. With, I think, receivables growth, generally solid. Jenny mentioned a slight increase in the reserve rate. How should we think about excess capital going available for buybacks from here? And would and just how are you thinking about deploying that? Is it how opportunistic versus, you know, programmatic would it be from here? Douglas H. Shulman: Yeah. Let me start, and then maybe Jenny wants to add something. Look. Our buyback frameworks super clear. Jeannette E. Osterhout: We are gonna invest in the business first. We are gonna invest in growth when we see customers coming in that are gonna meet our 20 percent return on equity. Thresholds. We are gonna make sure we pay our dividend which, you know, has a very healthy yield. And what is left over will be used for, you know, buybacks and other strategic opportunities. This quarter, we just had really healthy growth, which ate into the amount that we could use for buyback. And, you know, going forward, you know, it will depend on all of those factors, where's the where's the other use of capital. Jenny, I do not know if you wanna add. Yeah. The only thing I think you touched on it. But I think you asked the question of how programmatic I think of it as pretty dynamic. it is going to depend on the factors Douglas just mentioned and, you know, the first quarter is our seasonally lowest growth quarter, so I do think it gave us some opportunity there to do more purchases. But I think we are going to make sure that we are using it as 1 lever. As we look forward. Mihir Bhatia: Yes. Thank you for taking my question. Operator: The next question comes from Rick Shane with JPMorgan. Please proceed. Richard Barry Shane: Good morning. I would like to sort of to look at the interplay between sort of where we are from a delinquency perspective, what that suggests for gross charge offs, tie that to Jenny's comments about the recoveries in the second half. If we look at the noncard portfolio, 90 day delinquencies basically flattish year over year. And I recognize that there is a second derivative improvement, so that probably impacts fourth quarter. But presumably, that suggests that gross charge offs in the second and the third quarter will be roughly comparable to where they were year over year. And then there is about 40 basis points of improvement year over year in terms of recoveries. Is that the right place to sort of start building our third quarter net charge off numbers? Jeannette E. Osterhout: Is that the right framework? I do think you are onto the right framework. So I do think we are looking at how much we have in 90 plus looking at those rolls to loss getting slightly better from this quarter, Looking at recoveries, which would be I mentioned earlier, but closer to the average of the first half of the year, maybe something in that range. As you look forward. So I think you are on to the right path for how to look forward, and I think we do really like what we are seeing in the second half of the year. And I think it is very dependent on those 90—those rolls to loss. Richard Barry Shane: Got it. Okay. that is helpful. And, look, you have had some good questions about recoveries and you have sort of described the different factors that had contributed to that better internal policy or internal recoveries and also, attractive sales. Can you help us actually think about what that pie chart looks like? And on the selling side, is the enhanced recovery because you were selling a greater percentage or because actually the bid for charged off loans is a little bit higher? Jeannette E. Osterhout: I can give you some more info on the pie. I do think of this as probably about 20 percent of our recoveries were from sales And I think it is a combination of the 2 reasons that you mentioned where we have found good economic and we also had slightly larger inventory. So, you know, that 20% might be slight a slightly higher portion of the pie than usual, but you are still seeing I mean, 80 percent of is coming from internal recovery. Richard Barry Shane: And last year, would it have been 20 percent as well? that is what we are trying to dimensionalize here. What sort of how much has that moved? Jeannette E. Osterhout: You know, I think this really it moves around a bit. Again, I think it has to do with both the inventory and how much you have to look at. It has to do with the economics and what you are seeing. We are always making sure that it is you get to a better outcome than if you held those charge off assets on our own balance sheet and worked them out ourselves. So it really varies and depends on where the market is, and sort of all the math around that trade. Thank you. And by the way, the guidance on the recoveries I think I just gave some guide on that the recoveries for the second half a couple times. Operator: The next question comes from David Michael Scharf with JMP Securities. David Michael Scharf: Hi, good morning. Thanks for taking my questions as well. Hey, maybe 1 last on credit, but a little more higher level. Douglas H. Shulman: You had mentioned some other part of the call, use of more bank data. I think it was around kind of personal loan customization, personalization, so forth. David Michael Scharf: But I am wondering, as a lot of people— As a lot of us try to get our arms around the resilience of the consumer in the face of a lot of these macro shocks, Is there anything in bank data that informs you about how people are changing their purchasing decisions, what they are spending money on, how higher energy costs might be diverted from other types of purchases. There anything that the bank data is telling you about behavior? Douglas H. Shulman: You know, we have got bank data on a set of our customers who share it with us. We are not a bank. And so, you probably should hop on a call with 1 of the big banks who is gonna be able to give you a lot more insight into spending patterns than we can. You know, I think our bank data gives us access to information, which helps refine our model. Which allows us to lend to more people, and it gives us a real sense of some spending patterns, but also, you know, payroll, income, levels, deposit levels that they keep, etcetera, if somebody overdraws all of those kinds of things is more what we are looking at. We now have over a million people with credit cards, We have said before, we have seen a slight uptick, just over 1% uptick in use of our credit card for gas purchases. As opposed to, you know, the other major purchases, which are things like groceries, retail, restaurants, And so we have not seen anything significant in our book around energy prices, and that is probably where we have the most specific data about spend. David Michael Scharf: Got it. No. Very helpful. Thank you. Douglas H. Shulman: Operator, we are up at the hour. and thank everyone for joining us. As always, our team is here and fully available to answer any follow-up questions. and hope everybody has a great day. Operator: Thank you, ladies and gentlemen. This does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. Before you buy stock in OneMain, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and OneMain wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. OneMain (OMF) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Credit Acceptance Corporation’s CACC second-quarter 2026 adjusted earnings per share of $12.12 surpassed the Zacks Consensus Estimate of $11.46. The bottom line increased 20.6% year over year.Shares of CACC lost 2.2% during after-market trading.Results were aided by a marginal rise in revenues and lower provisions and operating expenses.Including non-recurring items, net income was $135.9 million or $12.66 per share, up from $87.4 million or $7.42 per share in the prior-year quarter. Total GAAP revenues were $587.4 million, up 0.6% year over year. Increased finance charges and premiums earned supported revenue growth.Provision for credit losses was $159.2 million, down 7.8%.Total operating expenses of $134.1 million decreased 13.8% from the prior-year quarter.As of June 30, 2026, net loans receivable were $7.96 billion, up marginally from the end of December 2025.Total assets were $8.62 billion as of the same date, down marginally from Dec. 31, 2025. Total shareholders’ equity was $1.59 billion, up 4.3% from Dec. 31, 2025.During the reported quarter, Credit Acceptance repurchased 0.3 shares for $141.4 million. CACC is well-positioned for revenue growth, given strengthening origination trends and continued momentum across its dealer network. Growth in active dealers is another positive. However, elevated expenses are a concern. Credit Acceptance Corporation price-consensus-eps-surprise-chart | Credit Acceptance Corporation Quote Currently, Credit Acceptance carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. OneMain Holdings’ OMF second-quarter 2026 adjusted earnings of $1.31 per share in the consumer and insurance (C&I) segment matched the Zacks Consensus Estimate. However, the bottom line declined 9.7% from the year-ago quarter.Results were primarily driven by an increase in net interest income (NII) and other revenues. A sequential increase in net finance receivables was another positive for the company. However, higher total other expenses and provisions hurt OMF’s results to an extent. Enova International, Inc. ENVA reported second-quarter 2026 adjusted earnings per share of $4.31, which increased from $3.23 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.99.ENVA’s results benefited from increased revenues and improving credit quality. However, higher expenses were a headwind. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Credit Acceptance Corporation (CACC) : Free Stock Analysis Report Enova International, Inc. (ENVA) : Free Stock Analysis Report OneMain Holdings, Inc. (OMF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in OneMain Holdings, Inc.? Here are five stocks we like better. OneMain delivered portfolio growth in Q2 2026: Originations rose 10% year over year to $4.3 billion, managed receivables increased 7% to $26.9 billion and revenue grew 6% to $1.6 billion. GAAP earnings declined to $1.32 per diluted share from $1.40 a year earlier, largely due to higher loss provisions. Credit trends improved sequentially, supporting management’s expectation that losses will decline in the second half of 2026 and into 2027. However, net charge-offs remained above year-ago levels, and reserves increased to 11.6% of net receivables. Auto finance and credit cards continued to expand rapidly: Auto originations grew 19%, while credit card accounts increased 44% year over year and credit card charge-offs improved. OneMain maintained its full-year guidance, including 6%–9% managed receivables growth and C&I net charge-offs of 7.4%–7.9%. Get Paid While You Wait - OneMain's Juicy Dividends OneMain (NYSE:OMF) reported second-quarter 2026 results marked by receivables and originations growth, improving early-stage delinquency trends and continued investment in its auto finance, credit card and technology initiatives. Chairman and Chief Executive Officer Doug Shulman said the company generated 10% year-over-year growth in originations, supporting managed receivables growth of 7%. He said OneMain maintained a conservative underwriting posture while expanding products and improving the customer experience. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? 3 Still-Young Stocks Among 2021's Price Leaders “Credit performance was good and tracked in line with our expectations, and early delinquency trends continued to improve,” Shulman said. OneMain reported GAAP net income of $152 million, or $1.32 per diluted share, compared with $1.40 per diluted share in the second quarter of 2025. C&I adjusted net income was $1.31 per diluted share, down from $1.45 a year earlier. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 3 Undervalued Mid-caps with Good Upside Chief Financial Officer Jenny Osterhout said higher revenue during the quarter was offset by higher provisions for losses, primarily reflecting a larger reserve build tied to stronger receivables growth. Capital generation, the company’s principal management metric, rose 3% year over year to $229 million. Managed receivables ended the quarter at $26.9 billion, up $1.6 billion, or 7%, from a year earlier. Quarterly originations totaled $4.3 billion, up 10% year over year. Total revenue increased 6% to $1.6 billion. Interest income rose 6% to $1.4 billion, while other revenue increased 6% to $207 million. Operating expenses rose 6% to $439 million, with the operating-expense ratio flat year over year at 6.7%. Consumer loan yield was 22.7%, up 16 basis points sequentially and 11 basis points from a year earlier. Osterhout said the company expects consumer loan yield to remain around recent levels, with typical seasonal moderation in the second half of the year. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Management highlighted improving delinquency trends as a basis for its expectation that losses will decline in the second half of 2026 and continue improving in 2027. Thirty- to 89-day delinquency, excluding Foresight, was 2.82% at June 30, down 7 basis points from a year earlier. The company said its 30-plus delinquency rate excluding Foresight declined 4 basis points year over year to 5.03%, while 90-plus delinquency was 3 basis points above the prior-year level, an improvement from the 14-basis-point year-over-year increase recorded in the first quarter. Second-quarter C&I net charge-offs were 8.2%, down 21 basis points sequentially but 63 basis points above the prior-year quarter. Consumer loan net charge-offs, excluding credit cards, were 7.8%, down 25 basis points sequentially and up 58 basis points from a year earlier. Osterhout said the year-over-year increase in consumer loan losses was expected and stemmed largely from elevated 90-plus delinquency in the prior quarter rolling through to losses. She said improving late-stage delinquency and early-stage trends provide confidence that losses will improve substantially in the back half of the year. Recoveries totaled $117 million, or 1.9% of average net receivables. During the question-and-answer session, Osterhout said approximately 20% of recoveries came from loan sales, with the remainder generated through internal recovery efforts. She attributed the results to investments in collection capabilities, additional charged-off loan inventory and sales to partners when economics were attractive. Loan loss reserves ended the quarter at $2.9 billion, or 11.6% of net receivables, compared with 11.5% in the prior quarter. Osterhout said the increase reflected portfolio mix, particularly the growing credit card business, which carries a reserve rate nearly twice that of the consumer loan portfolio. She said the overall reserve ratio could rise to around 11.7% in the second half. OneMain surpassed 4 million customer accounts during the quarter, an increase of 14% from a year earlier. Shulman said account growth was aided by auto finance and credit cards, along with product innovation in personal lending. Auto finance originations increased 19% from a year earlier, while auto finance receivables reached $3 billion, up 14%. Management said expansion of the dealer network, underwriting enhancements and partnerships supported growth, while credit performance remained in line with expectations and outperformed the broader industry. The credit card business also expanded rapidly. Credit card receivables reached $161 million, while customer accounts rose to 1.3 million, up 155,000 sequentially and more than 400,000 from a year earlier. Osterhout said accounts increased 44% year over year and purchase volume increased 57%, supported by new rewards options and enhancements to the BrightWay card offering. Credit card net charge-offs declined 186 basis points year over year to 17.7%, and 30-plus delinquencies fell 146 basis points. Shulman said marginal operating costs per account declined about 25% year over year as the business scaled. In personal loans, OneMain cited progress with its enhanced debt-consolidation offering and newer home-fixture secured product. Shulman said the debt-consolidation initiative includes outbound marketing, streamlined offer creation and improved direct-payoff systems. The company said most debt-consolidation customers improve their credit scores, while the majority of these loans are secured and carry lower losses than the overall personal loan portfolio. During the quarter, OneMain issued a $1.1 billion three-year revolving asset-backed security at pricing of about 5.1%. The company ended the period with $7.5 billion in bank lines and net leverage of 5.5 times, within its targeted 4-times-to-6-times range. OneMain repurchased 576,000 shares for $32 million in the second quarter. First-half repurchases totaled $137 million, including 2.5 million shares, more than three times the amount repurchased in the first half of 2025. The company’s annualized regular dividend was $4.20 per share. Shulman said share repurchases would remain dependent on business capital needs, market conditions and other strategic opportunities. He said the company will first invest in loans that meet its 20% return-on-equity threshold and maintain its dividend before allocating remaining capital to buybacks or other uses. The company reiterated its full-year 2026 guidance, including managed receivables growth of 6% to 9%, C&I net charge-offs of 7.4% to 7.9%, and an operating-expense ratio of approximately 6.6%. Management said OneMain has not changed its underwriting standards despite the improved credit outlook. Shulman said the company continues to apply a 30% stress overlay introduced in 2022 and that its “weather vane” testing has not yet met the company’s 20% return-on-equity threshold for expanding its credit box. OneMain Financial (NYSE: OMF) is a leading consumer finance company specializing in unsecured personal loans for middle-income customers. The company offers tailored loan products designed to address a variety of needs, including debt consolidation, home improvement financing, large purchases and emergency expenses. Through a combination of branch-based service and digital channels, OneMain aims to deliver a personalized borrowing experience with flexible repayment options and transparent terms. Tracing its roots back to the Commercial Credit Company founded in 1912, OneMain has evolved through a series of mergers and corporate transformations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "OneMain Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Shares of OneMain Holdings OMF gained 1.1% following the release of its second-quarter 2026 results. Adjusted earnings of $1.31 per share in the consumer and insurance (C&I) segment matched the Zacks Consensus Estimate. However, the bottom line declined 9.7% from the year-ago quarter.Results were primarily driven by an increase in net interest income (NII) and other revenues. A sequential increase in net finance receivables was another positive for the company. However, higher total other expenses and provisions hurt the results to an extent.After considering non-recurring items, net income (on a GAAP basis) was $152 million, down 9% from the prior-year quarter. NII rose 6.8% from the prior-year quarter to $1.09 billion.Total other revenues were $207 million, up 17.6% from the prior-year quarter. The rise was led by an increase in insurance income, investment income and other income.Total other expenses rose 4% year over year to $492 million on account of higher operating expenses. The provision for finance receivable losses was $610 million, up 19.4% from the prior-year quarter. In the reported quarter, OneMain Holdings registered net charge-offs of $506 million, up 13.7% from the prior-year quarter.The company reported 30-89-day delinquencies of $725 million, up 2.7% from the prior-year quarter. The allowance ratio of 11.63% was up from 11.54% in the prior-year quarter. As of June 30, 2026, net finance receivables amounted to $25.1 billion, up 2.9% from the prior-quarter end. Long-term debt increased 1.7% from the prior-quarter end to $22.8 billion. In the reported quarter, the company repurchased 0.58 million shares of common stock for $32 million. Rising expenses due to higher compensation and other operating expenses are expected to continue to hamper OneMain Holdings’ profitability. Weakening asset quality remains another major near-term headwind. Nevertheless, the company’s efforts to grow credit card and auto finance loans alongside acquisitions are expected to support its financials. OneMain Holdings, Inc. price-consensus-eps-surprise-chart | OneMain Holdings, Inc. Quote Currently, OneMain Holdings carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Capital One’s COF second-quarter 2026 adjusted earnings of $5.81 per share significantly outpaced the Zacks Consensus Estimate of $4.85. The bottom line was up from $5.48 in the prior-year quarter. COF’s results benefited from a rise in net interest income and non-interest income, along with a substantial decline in provisions. Loan growth and improvement in net interest margin (NIM) were other positives. However, higher expenses and a sequential decline in deposits were undermining factors.Ally Financial’s ALLY second-quarter 2026 adjusted earnings of $1.21 per share lagged the Zacks Consensus Estimate of $1.25. However, the bottom line reflected a 22% jump from the year-ago quarter.ALLY’s results were primarily hampered by higher expenses and provisions. However, growth in net financing revenues and other revenues, an increase in loan balances, and an improvement in NIM offered support to some extent. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OneMain Holdings, Inc. (OMF) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report Ally Financial Inc. (ALLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

OneMain Holdings (OMF) came out with quarterly earnings of $1.31 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.45 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this consumer finance company would post earnings of $1.92 per share when it actually produced earnings of $1.95, delivering a surprise of +1.56%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. OneMain, which belongs to the Zacks Financial - Consumer Loans industry, posted revenues of $1.09 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.17%. This compares to year-ago revenues of $1.02 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. OneMain shares have lost about 7.9% since the beginning of the year versus the S&P 500's gain of 8.5%. While OneMain has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for OneMain was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.97 on $1.11 billion in revenues for the coming quarter and $7.14 on $4.38 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Consumer Loans is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Encore Capital Group (ECPG), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This provider of debt-management and recovery services is expected to post quarterly earnings of $3.07 per share in its upcoming report, which represents a year-over-year change of +23.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Encore Capital Group's revenues are expected to be $462.1 million, up 4.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OneMain Holdings, Inc. (OMF) : Free Stock Analysis Report Encore Capital Group Inc (ECPG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

2Q 2026 Diluted EPS of $1.32 2Q 2026 C&I adjusted diluted EPS of $1.31 2Q 2026 Managed receivables of $26.9 billion Declared quarterly dividend of $1.05 per share NEW YORK, July 29, 2026 /PRNewswire/ -- OneMain Holdings, Inc. (NYSE: OMF), the leader in offering nonprime consumers responsible access to credit, today reported pretax income of $196 million and net income of $152 million for the second quarter of 2026, compared to $214 million and $167 million, respectively, in the prior year quarter. Earnings per diluted share were $1.32 in the second quarter of 2026, compared to $1.40 in the prior year quarter. On July 29, 2026, OneMain declared a quarterly dividend of $1.05 per share, payable on August 14, 2026, to record holders of the Company's common stock as of the close of business on August 10, 2026. During the quarter, the Company repurchased approximately 576 thousand shares of common stock for $32 million. "We delivered another strong quarter with disciplined underwriting, continued innovation and strong execution across the business," said Doug Shulman, Chairman and CEO of OneMain. "Growth across all of our products, improving credit performance and our industry leading balance sheet position OneMain to deliver profitable growth and attractive returns going forward." The following segment results are reported on a non-GAAP basis. Refer to the required reconciliations of non-GAAP to comparable GAAP measures at the end of this press release. Consumer and Insurance Segment ("C&I") C&I adjusted pretax income was $201 million and adjusted net income was $151 million for the second quarter of 2026, compared to $231 million and $173 million, respectively, in the prior year quarter. Adjusted earnings per diluted share were $1.31 for the second quarter of 2026, compared to $1.45 in the prior year quarter. Management runs the business based on capital generation, which it defines as C&I adjusted net income excluding the after-tax change in C&I allowance for finance receivable losses while still considering the current period C&I net charge-offs. Capital generation was $229 million for the second quarter of 2026, compared to $222 million the prior year quarter. The increase was driven by receivable growth and yield improvement, partially offset by higher net charge-offs in the current quarter compared to the prior year period. Managed receivables, which includes loans serviced for our whole loan sale partners and auto finance loans originated by third parties, were $26.9 billion at June 30, 2026, up 7% from $25.2 billion at June 30, 2025. Consumer loan originations totaled $4.3 billion in the second quarter of 2026, up 10% from $3.9 billion in the prior year quarter. Total revenue, comprising interest income and total other revenue, was $1.6 billion in the second quarter of 2026, up 6% from $1.5 billion in the prior year quarter. Interest income in the second quarter of 2026 was $1.4 billion, up 6% from $1.3 billion in the prior year quarter. The increase was driven by receivables growth and improved portfolio yield. Interest expense was $326 million in the second quarter of 2026, up 3% from $317 million in the prior year quarter, due to an increase in average debt to support our receivables growth. The provision for finance receivable losses was $610 million in the second quarter of 2026, up from $511 million compared to the prior year period. During the second quarter of 2026, the allowance for finance receivable losses increased $104 million driven by receivables growth. Operating expense for the second quarter of 2026 was $439 million, up 6% from $415 million in the prior year quarter reflecting receivable growth and strategic investments in the business. Funding and Liquidity As of June 30, 2026, the Company had principal debt balances outstanding of $23.1 billion, 52% of which was secured. The Company had $567 million of cash and cash equivalents, which included $171 million of cash and cash equivalents held at regulated insurance subsidiaries or for other operating activities that are unavailable for general corporate purposes. Cash and cash equivalents, together with the Company's $1.0 billion of undrawn committed capacity from an unsecured corporate revolver, $6.5 billion of undrawn committed capacity under revolving conduit facilities and credit card variable funding note facilities, and $11.6 billion of unencumbered receivables, provides significant liquidity resources. Conference Call & Webcast Information OneMain management will host a conference call and webcast to discuss the Company's results, outlook, and related matters at 9:00 am Eastern Time on Wednesday, July 29, 2026. Both the call and webcast are open to the general public. The general public is invited to listen to the call by dialing 877-407-0792 (U.S. domestic) or 201-689-8263 (international), and using conference ID 13761044, or via a live audio webcast through OneMain's investor relations website at http://investor.onemainfinancial.com. For those unable to listen to the live broadcast, a replay will be available on the website after the event. An investor presentation will be available on OneMain's investor relations website prior to the start of the conference call. About OneMain Holdings, Inc. OneMain Financial (NYSE: OMF) is the leader in offering nonprime consumers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans. We empower our customers to solve today's problems and reach a better financial future through personalized solutions across 48 states, available online and in more than 1,300 locations. OneMain is committed to making a positive impact on the people and the communities we serve. For additional information, please visit www.OneMainFinancial.com. Use of Non-GAAP Financial Measures We report the operating results of Consumer and Insurance using the Segment Accounting Basis, which (i) reflects our allocation methodologies for interest expense and operating costs, to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). Consumer and Insurance adjusted pretax income (loss), Consumer and Insurance adjusted net income (loss), and Consumer and Insurance adjusted earnings (loss) per diluted share are key performance measures used to evaluate the performance of our business. Consumer and Insurance adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes net loss resulting from repurchases and repayments of debt, restructuring charges, and other items and strategic activities. We believe these non-GAAP financial measures are useful in assessing the profitability of our segment. We also use pretax capital generation and capital generation, non-GAAP financial measures, as a key performance measure of our segment. Pretax capital generation represents Consumer and Insurance adjusted pretax income, as discussed above, and excludes the change in our Consumer and Insurance allowance for finance receivable losses in the period while still considering the Consumer and Insurance net charge-offs incurred during the period. Capital generation represents the after-tax effect of pretax capital generation. We believe that these non-GAAP measures are useful in assessing the capital created in the period impacting the overall capital adequacy of the Company. We believe that the Company's reserves, combined with its equity, represent the Company's loss absorption capacity. We utilize these non-GAAP measures in evaluating our performance. Additionally, these non-GAAP measures are consistent with the performance goals established in OMH's executive compensation program. These non-GAAP financial measures should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP. This document contains summarized information concerning the Company and its business, operations, financial performance and trends. No representation is made that the information in this document is complete. For additional financial, statistical and business related information see the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (the "SEC"), as well as the Company's other reports filed with the SEC from time to time, which are or will be available in the Investor Relations section of the OneMain Financial website (www.omf.com) and the SEC's website (www.sec.gov). Cautionary Note Regarding Forward-Looking Statements This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements preceded by, followed by or that otherwise include the words "anticipates," "appears," "assumes," "believes," "can," "continues," "could," "estimates," "expects," "forecasts," "foresees," "goal," "intends," "likely," "objective," "plans," "projects," "target," "trend," "remains," and similar expressions or future or conditional verbs such as "could," "may," "might," "should," "will" or "would" are intended to identify forward-looking statements, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are not statements of historical fact but instead represent only management's current beliefs regarding future events, objectives, goals, projections, strategies, performance, and future plans, and underlying assumptions and other statements related thereto. You should not place undue reliance on these forward-looking statements. By their nature, forward-looking statements are subject to risks, uncertainties, assumptions and other important factors that may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements. Important factors that could cause actual results, performance, or achievements to differ materially from those expressed in or implied by forward-looking statements include, without limitation, the following: adverse changes and volatility in general economic conditions, including the interest rate environment and the financial markets; the sufficiency of our allowance for finance receivable losses; increased levels of unemployment and personal bankruptcies; the current inflationary environment and related trends affecting our customers; natural or accidental events such as earthquakes, hurricanes, pandemics, floods or wildfires affecting our customers, collateral, or our facilities; a failure in or breach of our information, operational or security systems or infrastructure or those of third parties, including as a result of cyber incidents, war or other disruptions; the adequacy of our credit risk scoring models; geopolitical risks, including recent geopolitical actions; adverse changes in our ability to attract and retain employees or key executives; increased competition or adverse changes in customer responsiveness to our distribution channels or products; changes in federal, state, or local laws, regulations, or regulatory policies and practices or increased regulatory scrutiny of our business or industry; risks associated with our insurance operations; the costs and effects of any actual or alleged violations of any federal, state, or local laws, rules or regulations; the costs and effects of any fines, penalties, judgments, decrees, orders, inquiries, investigations, subpoenas, or enforcement or other proceedings of any governmental or quasi-governmental agency or authority; our substantial indebtedness and our continued ability to access the capital markets and maintain adequate current sources of funds to satisfy our cash flow requirements; our ability to comply with all of our covenants; the effects of any downgrade of our debt ratings by credit rating agencies; and other risks and uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis" sections of the Company's most recent Form 10-K filed with the SEC and in the Company's other filings with the SEC from time to time. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. You should specifically consider the factors identified in this document that could cause actual results to differ before making an investment decision to purchase our securities. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. Forward looking statements included in this document speak only as of the date on which they were made. We undertake no obligation to update or revise any forward-looking statements, whether written or oral, to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments or otherwise, except as required by law. $ 2,868$ 2,710Segment to GAAP adjustment(2)(2)(3)(3)(4)(3)(5)Allowance for finance receivable losses - GAAP basis$ 2,923$ 2,819$ 2,865$ 2,815$ 2,754$ 2,865$ 2,705 Defined Terms Adjusted capital: adjusted tangible common equity plus allowance for finance receivable losses (ALLL), net of tax Adjusted tangible common equity (TCE): total shareholders' equity less accumulated other comprehensive loss less goodwill less other intangible assets plus junior subordinated debt Auto finance: financing at the point of purchase through a network of auto dealerships Available cash and cash equivalents: cash and cash equivalents less cash and cash equivalents held at our regulated insurance subsidiaries or is unavailable for general corporate purposes Average total assets: average of monthly average total assets (total assets at the beginning and end of each month divided by two) in the period C&I adjusted diluted EPS: C&I adjusted net income (non-GAAP) / weighted average diluted shares Capital generation: C&I adjusted net income less change in C&I allowance for finance receivable losses, net of tax Capital generation return on receivables*: annualized capital generation / C&I average net receivables Consumer loans: personal loans and auto finance Finance receivables serviced for others: unpaid principal balance plus accrued interest of loans sold as part of our whole loan sale program plus auto finance loans originated by third parties. Gross charge-off ratio*: annualized gross charge-offs / average net receivables Managed receivables: C&I net finance receivables plus finance receivables serviced for our whole loan sale partners plus auto finance loans originated by third parties Net adjusted debt: long-term debt less junior subordinated debt less available cash and cash equivalents Net charge-off ratio*: annualized net charge-offs / average net receivables Net leverage: net adjusted debt / adjusted capital Opex ratio: annualized C&I operating expenses / average managed receivables Origination volume: loans originated during the period, including those originated and sold to our whole loan sale partners that we continue to service Other net revenue: other revenues less insurance policy benefits and claims expense Personal loans: loans secured by automobiles, other collateral or are unsecured and offered through our branch network, central operations, or digital platform Pretax capital generation: C&I pretax adjusted net income less change in C&I allowance for finance receivable losses Purchase volume: credit card purchase transactions plus cash advances less returns Return on assets (ROA): annualized net income / average total assets Return on receivables (C&I ROR): annualized C&I adjusted net income / C&I average net receivables Total revenue: C&I interest income plus C&I total other revenue Unencumbered receivables: unencumbered unpaid principal balance of consumer loans and credit cards. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card receivables include those in the trust that exceed the minimum for securing advances under credit card variable funding note facilities, which the Company can remove from the trust under the terms of such facilities, and exclude interest, fees, and closed accounts with balances OneMain Holdings, Inc. Investor Contact:Peter R. Poillon, [email protected] Media Contact:Kelly Ogburn, [email protected] Source: OneMain Holdings, Inc. View original content to download multimedia:https://www.prnewswire.com/news-releases/onemain-holdings-inc-reports-second-quarter-2026-results-302836921.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 10% year-over-year originations growth by leveraging product innovations in debt consolidation and home fixture-secured loans while maintaining a conservative underwriting posture. Surpassed 4 million customer accounts, a 14% annual increase, driven by the successful scaling of auto finance and credit card businesses alongside core personal loan growth. Attributed improving delinquency trends to disciplined credit management, with 30-89 day delinquencies declined 7 basis points year-over-year in the second quarter, and the first-half decline of 28 basis points outperformed pre-pandemic averages. Enhanced the personal loan value proposition through a new outbound debt consolidation strategy that utilizes advanced analytics to improve customer credit scores and lower loss profiles. Realized significant efficiency gains in the credit card business, reducing marginal operating costs per account by approximately 25% year-over-year as the portfolio scales. Integrated internal AI tools to streamline loan originations and provide 9,000+ team members with instant access to policies, improving customer service speed and operational productivity. Maintained a 30% stress overlay in underwriting models since 2022 to ensure portfolio resilience despite a generally stable but uncertain macroeconomic environment. Reiterated full-year 2026 managed receivables growth guidance of 6% to 9%, supported by momentum across personal loans, auto finance, and credit cards. Expects significant improvement in net charge-offs during the second half of 2026 and into 2027, supported by current favorable early-stage delinquency trends. Anticipates the overall loan loss reserve ratio will rise modestly to approximately 11.7% in the second half of 2026 due to the higher mix of credit card receivables. Assumes funding costs will remain stable at approximately 5.3% of average net receivables for the remainder of the year. Projects consumer loan yields will moderate slightly in the second half of the year, following typical seasonal patterns and the continued growth of the lower-yield auto book. The 'back book' (loans originated prior to August 2022) remains a headwind, representing only 4% of the portfolio but accounting for 12% of 30-plus day delinquencies. Credit card net charge-offs contributed 43 basis points to the total C&I net charge-off rate, reflecting the higher-risk, higher-yield nature of that growing segment. Increased share repurchase activity in the first half of 2026 to $137 million, a $100 million increase over the prior year, while maintaining a target leverage range of 4x to 6x. Management noted that while an Industrial Loan Company (ILC) charter would be accretive, it is not required to execute the company's long-term strategic plan. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed strong recoveries to a mix of enhanced internal collection capabilities (80% of the pie) and opportunistic sales of charged-off loan inventory (20%). The company has a larger inventory of charged-off assets from the past two years to work through, providing a tailwind for recovery volume. The reserve rate for credit cards is approximately 2x higher than the consumer loan portfolio, meaning continued card growth will naturally push the total reserve ratio higher. Management expects the reserve rate to land around 11.7% in the second half of the year as the card business expands to 4.5% or 5% of the total portfolio. Management stated they will not 'open the box' until they see 'Wethervane' testing and the current book consistently outperform expectations while meeting 20% ROE thresholds. Current testing is performing well but has not yet crossed the specific return hurdles required to shift the conservative credit posture.

This article first appeared on GuruFocus. Revenue: Total revenue in the second quarter was $1.6 billion, up 6% compared to last year. Net Income: Second quarter GAAP net income of $152 million or $1.32 per diluted share. Managed Receivables: Ended the quarter at $26.9 billion, up 7% from a year ago. Originations: Second quarter originations of $4.3 billion, increased 10% compared to the second quarter of last year. Consumer Loan Yield: 22.7%, up 16 basis points from last quarter. Credit Card Revenue Yield: Increased 330 basis points year-on-year to 33.6%. Interest Expense: $326 million, up 3% compared to the second quarter of 2025. Provision Expense: $610 million, comprising net charge-offs of $506 million and a $104 million increase in reserves. Loan Loss Reserve Ratio: 11.6%, up slightly from 11.5% last quarter. Operating Expenses: $439 million, up 6% compared to a year ago. Net Leverage: 5.5 times, flat to a year ago. Share Repurchases: Repurchased 576,000 shares for $32 million in the second quarter. Warning! GuruFocus has detected 3 Warning Sign with OMF. Is OMF fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OneMain Holdings Inc (NYSE:OMF) reported strong financial results with significant receivables growth driven by product innovation and positive delinquency trends. The company achieved a 10% year-over-year growth in loan originations, supported by a focus on high-quality loan originations and improved customer experience. Delinquency metrics improved, with a 7 basis point decline in 30 to 89-day delinquency year-over-year, indicating better credit performance. The company surpassed 4 million customer accounts, a 14% increase from the previous year, driven by success in auto finance and credit card offerings. Investments in technology, data, and AI capabilities are enhancing business operations, driving growth, and improving efficiency. Despite strong financial performance, the GAAP net income per diluted share decreased to $1.32 from $1.40 in the second quarter of 2025. Higher loss provisions were reported due to a larger reserve build, driven by increased receivables growth compared to the prior year. The back book of originations prior to August 2022 continues to present a headwind to credit performance, contributing disproportionately to delinquency rates. The loan loss reserve ratio increased slightly to 11.6% due to the growth of the credit card business, which carries a higher reserve rate. Operating expenses increased by 6% year-over-year, driven by investments in credit card and auto finance businesses, as well as data science and technology. Q: Can you provide more details on the improving delinquency trends and credit performance expected in the second half of 2026 and into 2027? A: Jenny Osterhout, CFO, explained that delinquency metrics, such as the 30 to 89 delinquency excluding foresight, have improved, indicating better credit performance. The company expects these trends to continue, supported by a conservative underwriting approach and improving macroeconomic conditions. Q: How should we think about the reserve rate going forward, especially with the growth in credit card loans? A: Jenny Osterhout noted that the reserve rate is expected to increase modestly due to the growth in the credit card portfolio, which has a higher reserve rate compared to consumer loans. The reserve rate might rise to around 11.7% in the second half of the year. Q: Can you elaborate on the recovery benefits seen this quarter and expectations for the second half of the year? A: Jenny Osterhout highlighted strong recoveries driven by internal improvements and strategic sales of charged-off loans. The company expects recoveries to remain strong, potentially averaging between the first and second quarter levels. Q: What changes have been made to the enhanced loan consolidation product, and how significant could this be? A: Doug Shulman, CEO, explained that the company has developed an outbound proposition for loan consolidation, utilizing analytics for targeted marketing and streamlined processes for faster loan consolidation. This includes improved backend payment systems for better credit performance. Q: How is OneMain Holdings approaching capital allocation and share buybacks given the current growth and reserve rate changes? A: Doug Shulman stated that the company prioritizes investing in business growth and maintaining a healthy dividend. Share buybacks will depend on available excess capital after these priorities, with a dynamic approach based on growth and market conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.