Enova International, Inc. Q3 FY2025 earnings call

• David Fisher mentioned the company had a great quarter with solid loan growth and strong credit metrics, driven by the online-only business model and diversified portfolio. • Steve Cunningham will take over as CEO on January 1, 2026, with David Fisher transitioning to Executive Chairman. • Third quarter originations increased 22% YOY and 9% sequentially to almost $2 billion, combined loan and finance receivables reached a record $4.5 billion. • Adjusted EPS increased 37% YOY in Q3 due to strong growth, efficient marketing, and lower cost of funds. • SMB had another fantastic quarter with solid demand and credit performance, originations up 31% YOY. • Consumer credit performance adjusted and then improved, allowing reacceleration of growth into Q4.

In Q3, Enova's small business products represented 66% of the total portfolio. Small business originations increased 31% year-over-year to nearly $1.4 billion, and revenue from SMB increased 29% year-over-year to a record $348 million. Consumer products accounted for 34% of the portfolio. Consumer originations grew 4% year-over-year to $590 million, and consumer revenue increased 8% year-over-year to $443 million.

• Fourth quarter total company revenue expected to be 10%-15% higher than Q4 2024 due to strong SMB growth and consumer portfolio reacceleration. • Net revenue margin for Q4 expected in range of 55%-60%. • Marketing expenses expected to be around 20% of revenue, O&T costs 8%-8.5% of revenue, G&A costs 5%-5.5% of revenue. • Adjusted EPS for Q4 2025 expected 20%-25% higher than Q4 2024.

• Uncertainties in the macro environment could impact demand, customer payment rates, and origination mix. • Potential impact on financial performance from changes in market conditions, credit trends, and competitive dynamics.

Q: Congratulations on the results. Any update on capital actions like buybacks or dividends?

A: David Fisher said everything is on the table, including buybacks, dividends, and other ways to utilize excess cash.

Q: Question on growth outlook, specifically consumer originations and mix shift.

A: David Fisher noted expectation of reacceleration in consumer line of credit, with mix shift in favor of line of credit.

Q: Question on cap market side and interest expense.

A: Steven Cunningham said lower benchmark rates and portfolio performance provide tailwinds to lower interest expense and support EPS growth.