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    ENVA
    Earnings call· Jun 2026(Q2 FY26)

    Enova International, Inc. ENVA

    Jul 23, 2026 Source

    Executive summary

    Enova International Q2 FY26 — Strong Originations and Adjusted EPS Growth, Raised Full-Year Outlook

    Enova delivered strong Q2 FY26 results, driven by robust originations growth across consumer and small business segments and improved credit performance, particularly in consumer. The company raised its full-year adjusted EPS and revenue growth outlook, reflecting confidence in its unit economics discipline and scalable business model. Management continues to progress towards the Grasshopper Bank acquisition, which is expected to close later this year and drive significant synergies.

    Highlights

    5

    • Consolidated originations grew 27% year-over-year to nearly $2.3 billion.

    • Portfolio grew 28% year-over-year to $5.5 billion.

    • Revenue grew 22% year-over-year to $929 million.

    • Adjusted EPS grew 33% year-over-year to $4.31 per diluted share.

    • Consolidated net charge-off rate improved to 7.3%, down from 8.1% a year ago and 7.6% in Q1.

    Concerns

    3

    • Total operating expenses, including marketing, were 35% of revenue, up from 32% in Q2 FY25.

    • Marketing costs were 22% of revenue ($204 million), up from 19% of revenue ($143 million) in Q2 FY25.

    • The small business delinquency rate (COSL 30-plus day) ended the quarter at 7.5%, up from 6.6% a year ago.

    Guidance & targets

    11
    CategoryTargetConfidence
    Q3 FY26 Consolidated Revenue Growth
    around 25% higher year-over-year
    high materiality
    High
    Q3 FY26 Consolidated Net Revenue Margin
    55% to 60% range
    medium materiality
    High
    Q3 FY26 Marketing Expenses as % of Revenue
    around 20% of revenue
    medium materiality
    High
    Q3 FY26 Operations and Technology Expenses as % of Revenue
    around 8% to 8.5% of revenue
    medium materiality
    High
    Q3 FY26 General and Administrative Expenses as % of Revenue
    around 5% of revenue
    medium materiality
    High
    Q3 FY26 Adjusted EPS Growth
    around 30% higher than the third quarter of 2025
    high materiality
    High
    Full-Year 2026 Revenue Growth
    20% to 25% compared to the full year 2025
    high materiality
    High
    Full-Year 2026 Adjusted EPS Growth
    30% to 35%
    high materiality
    High
    Grasshopper Bank Acquisition Close
    later this year
    high materiality
    High
    Grasshopper Bank Acquisition Adjusted EPS Accretion
    more than 25%
    high materiality
    High
    Cost of Funds
    pretty flat to possibly down
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Small Business
    Solid quarter of growth and stable credit, leveraging leading brand presence, scale, competitive position, and diversification across geographies and industries.
    Receivables (amortized basis): $3.8 billion (up 36% YoY)Originations: $1.6 billion (up 29% YoY)Net charge-off ratio: 4.8% (vs 4.7% YoY)
    		$439 million35%——
    Consumer
    Year-over-year originations growth and credit performance were the best in 2 years, reflecting U.S. consumer resiliency, stable labor market, and increased demand, particularly in the line of credit space.
    Receivables (amortized basis): $1.7 billion (up 14% YoY)Originations: $691 million (up 23% YoY)Net charge-off rate: 12.8% (down 170 bps YoY)
    		$477 million11%——

    Operational metrics

    17
    Consolidated Originations
    $2.3 billionup 27% year-over-year
    Q2 FY26

    Originations were strong across both consumer and small business.

    Consolidated Portfolio Growth
    $5.5 billionup 28% year-over-year
    Q2 FY26

    Driven by strong originations growth.

    Small Business Portfolio Share
    69%
    Q2 FY26

    Represents share of total portfolio.

    Consumer Portfolio Share
    31%
    Q2 FY26

    Represents share of total portfolio.

    Adjusted EPS
    $4.31increased 33% from Q2 FY25
    Q2 FY26

    Non-GAAP measure.

    Annualized Quarterly Return on Equity
    in excess of 30%
    Q2 FY26

    Resulting from significant profitability.

    Consolidated Net Revenue Margin
    61%slightly better than expected
    Q2 FY26

    Most significant driver of net revenue and portfolio fair value.

    Total Operating Expenses as % of Revenue
    35%compared to 32% of revenue in Q2 FY25
    Q2 FY26

    Includes marketing expenses.

    Marketing Costs
    $204 millioncompared to $143 million in Q2 FY25
    Q2 FY26

    Drove healthy originations growth, especially from new consumer customers.

    Operations and Technology Expenses
    $75 millioncompared to $64 million in Q2 FY25
    Q2 FY26

    Sequential increases expected in environment of growing originations and receivables.

    General and Administrative Expenses
    $44 millioncompared to $41 million in Q2 FY25
    Q2 FY26

    Includes deal-related expenses.

    Deal-related expenses (Grasshopper acquisition)
    $1.5 million
    Q2 FY26

    Included in G&A expenses for the current quarter.

    General and Administrative Expenses (excluding deal-related)
    $43 million
    Q2 FY26

    Adjusted G&A expenses.

    Liquidity
    $929 million
    Q2 FY26

    Provides financial flexibility.

    Cost of Funds
    8.1%down from 8.2% in Q1 and 8.8% for Q2 FY25
    Q2 FY26

    Strong execution in capital markets.

    Shares Repurchased
    117,000
    Q2 FY26

    Part of opportunistic stock repurchases.

    Cost of Shares Repurchased
    $19 million
    Q2 FY26

    Cost associated with share repurchases.

    Industry KPIs

    10
    MetricValueDetails
    Funding mix—
    Payment rate—
    Delinquencies7.5%%
    Capital returns$19 millionUSD
    Credit quality mix—
    Net charge off rate7.3%%
    Loans card receivables$5.5 billionUSD
    New accounts card acquisitions—
    Billed business purchase volume$2.3 billionUSD
    Net interest margin yield on receivables115%%

    Deals & partnerships

    1
    Grasshopper BankPlanned combination to form a bank holding company, leveraging Grasshopper's existing deposit businesses and product capabilities.

    Integration planning is largely complete. Engaged in constructive dialogue with OCC and Federal Reserve for application review. Anticipates ability to expand consumer products (NetCredit) within the bank and leverage Grasshopper's small business products as adjacencies.

    Risks & headwinds

    2
    Geopolitical headlines and energy price volatilityPersistent

    Unquantified

    Mitigation: Consumer sentiment has improved and consumer spending has remained solid despite these factors.

    Macroeconomic environment impact on demand, customer payment rates, and originations growthQ3 FY26 and full year FY26

    Unquantified

    Mitigation: Company's business model, diversified products, unit economics discipline, technology, and analytics position it well to navigate.

    What to watch in Q3 FY26

    5

    Grasshopper Bank acquisition close

    Later this year (Q3/Q4 FY26)
    CurrentPending regulatory approval
    TargetClosed

    Why it matters

    This acquisition is expected to drive significant adjusted EPS accretion and strategic synergies.

    We're excited to build upon our proven capabilities with our planned combination with Grasshopper Bank, which we look forward to closing later this year.

    Q&A highlights

    8

    What drove the acceleration in consumer volumes, given SMB was the primary driver previously? Was there a change in marketing or credit box?

    Management clarified that marketing is an output of demand, not a proactive "leaning in." The acceleration was due to healthy consumer demand, an easier year-over-year comparison for consumer lines of credit (where they had slowed down last year), and the product's popularity, all within their consistent risk appetite and unit economics framework.

    “we didn't lean into marketing. In the commentary, really, what I was trying to describe is really our marketing is an output of us meeting the demand that we see in the marketplace.”

    asked by David Scharf · answered by Steven Cunningham

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 Performance

    Enova reported strong Q2 FY26 results, with consolidated originations up 27% year-over-year to nearly $2.3 billion, marking the 11th consecutive quarter of 20%+ YoY growth. This drove a 28% YoY portfolio increase to $5.5 billion and a 22% YoY revenue increase to $929 million. Adjusted EPS grew 33% YoY to $4.31, reflecting robust top-line growth and improved credit.

    02

    Consumer Business Rebound

    The consumer segment saw accelerated originations growth of 23% YoY and revenue growth of 11%. The consumer net charge-off rate improved significantly, declining 170 basis points YoY to 12.8%. This performance was attributed to the resiliency of the U.S. consumer, stable labor markets, and increased demand, particularly in the line of credit space, all within the company's consistent risk appetite.

    03

    Small Business Segment Consistency

    The SMB business continued its solid growth trajectory, with originations up 29% YoY and revenue up 35%. The SMB net charge-off ratio remained stable at 4.8%, within the expected 4% to 5% range. Management highlighted strong market demand and the ability to leverage its brand presence and diversified offerings, while maintaining consistent credit risk management.

    04

    Credit Quality and Risk Management

    The consolidated net charge-off rate improved to 7.3% from 8.1% a year ago, driven by consumer credit improvement and stable small business credit. The consolidated fair value premium remained stable at approximately 115%, indicating a consistent risk-return profile and strong unit economics. The company emphasized its unit economics framework and sophisticated machine learning-powered risk management for real-time risk assessment and rapid response to market opportunities.

    05

    Grasshopper Bank Acquisition Update

    Enova reiterated its expectation to close the Grasshopper Bank acquisition later this year. Integration planning is largely complete, and the company anticipates significant synergies from geographic expansion of existing products and lower funding costs, projecting over 25% adjusted EPS accretion once fully realized within two years post-closing. Management noted a constructive dialogue with the OCC and Federal Reserve during the application review process.

    06

    Raised Full-Year Outlook

    Based on Q2 performance and current market conditions, Enova raised its full-year 2026 guidance, now expecting revenue growth of 20% to 25% and adjusted EPS growth of 30% to 35% compared to FY25. This reflects confidence in continued profitable growth and operating leverage, though expectations depend on the macroeconomic environment and originations mix.

    AI-generated summary of the company’s earnings call. Not investment advice.