OneMain Holdings (OMF) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Financials· May 1, 2026

Source: earnings call transcript

Executive summary

OneMain Holdings Q1 FY26 — Strong Capital Generation and Diversified Growth

OneMain Holdings delivered strong Q1 FY26 results, driven by robust capital generation and diversified growth across personal loans, auto finance, and credit card businesses. The company maintained disciplined underwriting while expanding its portfolio, with credit performance tracking expectations despite some back book headwinds. Strategic investments in technology and AI are enhancing efficiency and product innovation, supporting confidence in full-year financial objectives.

Highlights

Capital generation was $194 million in the quarter.
C&I adjusted earnings were $1.95 per share, up 13% year-over-year.
Total revenue and receivables each grew 6% year-over-year.
Credit card receivables increased 45% year-over-year to just under $1 billion.
Auto finance receivables grew 14% year-over-year to $2.8 billion.

Concerns

Back book (5% of portfolio) accounts for 14% of 30-plus delinquencies, performing at 2x expected rate.
Operating expenses were $437 million, up 9% compared to a year ago.
C&I net charge-offs were 8.4%, up 24 basis points year-over-year.

Guidance & targets

Category	Target	Timeline	Confidence
Managed receivables growth	6% to 9% high materiality	Full year 2026 · FY26	High
C&I net charge-offs	7.4% to 7.9% high materiality	Full year 2026 · FY26	High
Operating expense ratio	approximately 6.6% high materiality	Full year 2026 · FY26	High
Quarterly claims expense	mid- to high $50 million range medium materiality	Remainder of the year · FY26	Medium
Funding costs	remain at approximately this level medium materiality	Throughout 2026 · FY26	Medium
Consumer loan yields	remain around current levels medium materiality	Throughout the rest of the year · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Personal Loans Saw good performance as initiatives continue to gain traction. 60% of originations are in the lowest risk customers. Originations: $3.1 billionOriginations growth YoY: 3%	—	—	—	—
Auto Finance Receivables grew 14% year-over-year. Originations benefited from dealer network expansion and new partnership activity. Credit performance was in line with expectations and continues to outperform the broader industry. Receivables: $2.8 billion	—	14%	—	—
Credit Card Delivered strong results with receivables increasing 45% year-over-year. Customer accounts are up 40% year-over-year. Saw increased yields, improvement in loss trends, and decreased unit costs. Crossed $1 billion in card receivables in April. Now profitable. Receivables: just under $1 billionCustomer accounts: nearly 1.2 millionCustomer accounts growth YoY: 40%Total revenue yield: 33.9%Net charge-offs: 18%Net charge-offs YoY change: down 176 bps30-plus delinquency YoY change: fell 105 bps	—	45%	—	—

OMF operating KPIs by quarter

OMF operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Active accounts Credit card	<1.2M We delivered strong results for the quarter, with receivables increasing 45% year-over-year to just under $1 billion, and customer accounts are up 40% year-over-year to nearly 1.2 million. Source: earnings call transcript	1.3M Customer accounts increased to 1.3 million, up 155,000 from last quarter and more than 400,000 from a year ago. Source: earnings call transcript	—
Originations	$3.1B First quarter originations of $3.1 billion increased 3% compared to the first quarter of last year, and we see opportunities to continue our growth across our products. Source: earnings call transcript	$4.3B Second quarter originations of $4.3 billion increased 10% compared to the second quarter of last year. Source: earnings call transcript	+38.7%
Consumer loan yield	22.5% Our first quarter consumer loan yield was 22.5%, up 13 basis points year-over-year. Source: earnings call transcript	22.7% 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. Source: earnings call transcript	+0.2 pt
30 to 89-day delinquency ratio Excluding Foursight	2.62% 30 to 89-day delinquency on March 31, excluding Foursight, was 2.62%, down 1 basis point compared to a year ago. Source: earnings call transcript	2.82% 30 to 89 delinquency on June 30, excluding Foresight, was 2.82%, down 7 basis points compared to a year ago, improving on the trend we saw last quarter. Source: earnings call transcript	+0.2 pt
Net charge-off ratio Consumer loan	8% Consumer loan net charge-offs, which exclude credit cards were 8.0% of average net receivables in the first quarter, up 19 basis points from a year ago and in line with our expectations. Source: earnings call transcript	7.8% 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 continue to have strong recoveries in the quarter. Source: earnings call transcript	-0.2 pt
Net charge-off ratio Credit card	18% With that in mind, we are seeing improvement in our credit card net charge-offs, which declined 176 basis points year-over-year to 18% in the quarter. Source: earnings call transcript	17.7% Credit card net charge-offs declined 186 basis points year-on-year to 17.7%. Source: earnings call transcript	-0.3 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Debt consolidation loans	update	—
Home fixture secured loan product	launch	—
Agentic AI tool for insurance recovery	launch	Earlier this year
AI tool for internal information access	launch	—
OneMain MyMoney	update	—

Deals & partnerships

Ally Partnership to grow dealer network in auto finance

OneMain continued to grow its dealer network across the country, including through its partnership with Ally, benefiting auto originations.

Risks & headwinds

Back book credit performance

5% of portfolio accounts for 14% of 30-plus delinquencies, performing at 2x expected rate.

Mitigation:Natural burn-off of older loans, growth of newer, better-performing vintages.

Geopolitical tensions and energy prices Current

Unquantified impact on broader risk.

Mitigation:Closely monitoring trends, maintaining cautious underwriting posture.

Macroeconomic uncertainty Ongoing

Unquantified.

Mitigation:Maintaining conservative underwriting posture, 30% stress overlay in credit box.

State AG lawsuit

Not material, no material impact on business.

Mitigation:Claims are untrue and without merit, issues already resolved with CFPB, confident in winning in court.

What to watch in Q2 FY26

Back book delinquency contribution

next quarter

Current 5% of portfolio accounts for 14% of 30-plus delinquencies

Target Shrinking contribution to delinquency

Why it matters

The back book's elevated delinquency rate is a headwind to overall credit metrics; its reduction is key to credit normalization.

This quarter, we saw that back book represent about 5% of the portfolio, and it contributed 14% to that 30-plus delinquency.

Find out whether OMF delivers this. Inve re-checks your case every morning.

Q&A highlights

Any update on the bank application, timing, and progress?

The bank application process is moving forward, with constructive dialogues with the FDIC and Utah Department of Financial Institutions. Timing is uncertain, but the company remains optimistic due to a strong case for approval.

“No updates this quarter. The process continues to move forward. Timing is uncertain, but we remain optimistic because we continue to believe we have a very strong case for approval. We're having constructive dialogues with the FDIC and the Utah Department of Financial Institutions.”

asked by John Hecht · answered by Douglas Shulman

2 min read 5 chapters

Detailed narrative

Strategic Initiatives & Product Innovation

OneMain is continuously enhancing its product offerings, including refining debt consolidation loans for a more seamless experience and piloting a new home fixture secured loan product for homeowners, which is attracting high-quality customers. The company is also leveraging AI, with an agentic AI tool improving insurance recovery outcomes and broader AI deployment for product development, internal information access, and customer service pilots, aiming for faster deployment and lower costs.

Auto Finance Growth and Performance

The auto finance business saw receivables grow 14% year-over-year to $2.8 billion, with credit performance in line with expectations and outperforming the broader industry. Originations benefited from an expanded dealer network and new partnerships, including with Ally, supporting continued growth and contribution to capital generation.

Credit Card Business Momentum and Profitability

The credit card business delivered strong results, with receivables increasing 45% year-over-year to just under $1 billion and customer accounts up 40% to nearly 1.2 million. The business achieved increased yields, improved loss trends, and decreased unit costs, crossing $1 billion in receivables in April. Product innovation, enhanced line management, and refined marketing models are driving profitable growth and a shift towards lower-risk customers.

Customer Resilience and Credit Performance

Despite ongoing economic uncertainty, OneMain's customers remain resilient, with credit performing well and tracking expectations. The company maintains a cautious underwriting posture, with 30 to 89-day delinquency declining year-over-year. While a 'back book' of older loans still presents a headwind, overall credit metrics are supported by strong recoveries and proactive internal strategies.

Capital Allocation and Funding Strength

OneMain's primary capital allocation priority is extending credit that meets risk-adjusted returns and investing in the business. The company repurchased $105 million in shares during Q1, totaling $176 million over the last two quarters, alongside a regular annual dividend of $4.20 per share. The balance sheet remains a core strength, demonstrated by a successful $850 million 3-year revolving ABS issuance at attractive pricing and $7.5 billion in bank lines, providing significant liquidity and funding flexibility.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.