Enova Hits $1 Billion In Quarterly Revenue For The First Time, And Profit Climbs 34%
The online lender grew originations 31% while its net charge-off ratio fell to 8.1%, and long-term debt rose to $5.4 billion.
Enova, which runs online lending businesses serving small businesses and consumers with limited access to bank credit, posted $1.01 billion of third-quarter revenue, up 26% from $803 million a year earlier. It is the first quarter in the company's history with revenue of $1 billion, CFO Scott Cornelis said, and net income rose 34% to $107 million, or $4.06 per diluted share.
Lending grew faster than losses
Total originations were $2.6 billion, up 31%, and combined loans and finance receivables, a non-GAAP (non-standard) measure, grew 30% from a year earlier to a record $5.9 billion, the company said in its earnings release Thursday.
Net charge-offs, the share of loans written off, fell to 8.1% of average receivables from 8.5% a year earlier. Net revenue margin rose to 61% from 57%. Loans more than 30 days delinquent rose to 8.0% of the combined balance from 7.2%.
Adjusted earnings per share climbed 33% to $4.48 from $3.36, and adjusted EBITDA rose 23% to $269 million from $218 million, both non-GAAP measures.
CEO Steve Cunningham said demand was healthy and credit stable, with originations, receivables, revenue and adjusted EPS all growing 25% or more year over year.
The business behind the numbers
Enova makes installment loans and lines of credit to consumers and small businesses, and also runs an international money transfer service called Pangea. Its customers have bank accounts but limited access to credit from banks and card companies. It earns interest and fees on loans, servicing fees on bank-partner programs, and fees and exchange-rate spreads on transfers.
Lines of credit made up 57.6% of the average combined balance, against 55.8% a year earlier.
Debt, buybacks and the bank deal
Long-term debt stood at $5.4 billion on September 30, up from $4.1 billion a year earlier, according to the balance sheet. Liquidity, including cash, marketable securities and available facility capacity, totaled $1.3 billion.
Enova repurchased $46 million of stock in the quarter and began the fourth quarter with $252 million of repurchase capacity. Shares closed at $176.78 at Thursday's close.
Results include costs tied to the planned acquisition of Grasshopper Bancorp and its subsidiary Grasshopper Bank: $1.4 million in the third quarter, after $1.4 million in the first and $2.7 million in the second.
Enova held its earnings call at 5 p.m. Eastern on Thursday, with a replay available until October 29.
Sources
- 8-K Filing — Enova International, Inc. (ENVA) — SEC EDGAR
- Exhibit enva-ex99_1.htm — Enova International, Inc. 8-K exhibit — SEC EDGAR
- Enova Reports Third Quarter 2026 Results — prnewswire.com
