Executive Summary

Strong quarter: C&I adjusted diluted EPS was $1.45, above S&P Global consensus of $1.23 (GAAP diluted EPS $1.40); total revenue rose 10% YoY to $1.5B; capital generation increased 63% YoY to $222M . EPS consensus values from S&P Global.*
Credit improvement continued: net charge-off ratio declined to 7.19% (from 8.29% YoY) and 30+ dpd delinquency improved to 5.17% (from 5.45% YoY) .
Guidance tightened positively: management now expects total revenue growth at the high end of the 6–8% range and C&I net charge-offs of 7.5%–7.8% (lower half of prior range); OpEx ratio guided to ~6.0% for FY25; yield to moderate in 2H on seasonality and mix .
Liquidity/funding remained a strength (raised $1.8B in Q2; issued a 3-year $1B revolving ABS <5% cost; $769M cash; 5.5x net leverage) supporting continued originations and capital returns (460k shares repurchased; $1.04 dividend) .

What Went Well and What Went Wrong

What Went Well
- Credit trends improved ahead of plan: NCO ratio down to 7.19% (from 8.29% YoY); 30+ dpd 5.17% (vs 5.45% YoY); management narrowed full-year NCO to 7.5%–7.8% (lower half of prior range) .
- Capital generation accelerated: $222M in Q2 (+63% YoY), driven by receivables growth, better yield, and credit .
- Strategic/funding execution: raised $1.8B across secured and unsecured; issued a 3-year $1B revolving ABS <5% cost; strong market access with $3.3B raised in 1H25 . CEO: “We had a very strong second quarter…growth in high-quality loan originations, good pricing, and positive credit trends…leading to strong growth in capital generation” .
What Went Wrong
- Operating expenses rose 11% YoY to $415M with elevated strategic investments (though OpEx ratio guidance improved) .
- Card losses remain elevated (mid-teens to ~20% on a small, seasoning book), offset by >30% yields; management remains conservative on growth .
- Yield expected to moderate in 2H (seasonality in 90+ dpd and increased auto mix), tempering some of the favorable pricing tailwinds .

Financial Results

Summary P&L, Credit, and Balance Metrics

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenue ($B)	$1.50	$1.50	$1.50
Net Interest Income ($B)	$1.009	$0.996	$1.022
Total Other Revenues ($M)	$160	$188	$176
Provision for Finance Receivable Losses ($M)	$523	$456	$511
Net Income ($M)	$126	$213	$167
Diluted EPS (GAAP)	$1.05	$1.78	$1.40
C&I Adjusted Diluted EPS	$1.16	$1.72	$1.45
Capital Generation ($M)	$183	$194	$222
Managed Receivables ($B)	$24.74	$24.60	$25.22
Originations ($B)	$3.50	$3.02	$3.91
Net Charge-off Ratio (%)	7.63%	7.83%	7.19%
30+ DPD Ratio (%)	5.76%	5.16%	5.17%
Yield (Consumer Loans) (%)	22.2%	22.4%	22.6%

Product Receivables Mix (End of Period)

Receivables ($B)	Q4 2024	Q1 2025	Q2 2025
Personal Loans	$20.83	$20.47	$20.81
Auto Finance	$2.12	$2.22	$2.34
Credit Cards	$0.64	$0.68	$0.75
Total C&I Net Finance Receivables	$23.60	$23.37	$23.90

KPIs and Capital/Liquidity

KPI	Q4 2024	Q1 2025	Q2 2025
Allowance Ratio (%)	11.48%	11.52%	11.54%
90+ DPD Ratio (%)	2.52%	2.38%	2.12%
Capital Generation ROR (%)	3.1%	3.3%	3.8%
Cash & Equivalents ($M)	$458	$627	$769
Net Leverage (x)	5.6x	5.5x	5.5x
Undrawn Conduit + VFN ($B)	$6.30	$6.40	$6.40
Unencumbered Receivables ($B)	$9.74	$10.16	$9.71

Results vs S&P Global Consensus (EPS)

Metric	Q2 2025 Actual	Q2 2025 Consensus	Beat/Miss
C&I Adjusted Diluted EPS	$1.45	$1.23*	Beat

Note: For OneMain, S&P Global’s “Primary EPS” consensus tracks the company’s C&I adjusted diluted EPS. S&P Global values marked with an asterisk are retrieved from S&P Global and may reflect different line-item definitions than company-reported GAAP metrics.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue Growth	FY 2025	6%–8%	High end of 6%–8%	Raised (tightened upward)
C&I Net Charge-offs	FY 2025	7.5%–8.0%	7.5%–7.8% (lower half of range)	Improved (narrowed lower)
Operating Expense Ratio	FY 2025	~6.6%	~6.0%	Improved
Managed Receivables Growth	FY 2025	5%–8%	5%–8% (reaffirmed)	Maintained
Originations Growth Run-rate	2H 2025	—	Normalize to mid–single-digit YoY	New color
Consumer Loan Yield	2H 2025	Modest improvement expected	Moderate in 2H (seasonality, auto mix)	Tempered
Dividend	Quarterly	$1.04/share	$1.04/share (declared)	Maintained

Earnings Call Themes & Trends

Topic	Q4 2024 (Q-2)	Q1 2025 (Q-1)	Q2 2025 (Current)	Trend
Credit quality	Front-book mix rising; first YoY delinquency improvement; losses peaked 1H24	Delinquency down; NCOs improving; reserve coverage steady with macro overlay	Further NCO and delinquency improvement; FY NCO narrowed lower	Improving
Pricing/Yield	Modest yield improvement; pricing actions supporting yields	Yield up 20 bps QoQ; expect modest improvement	Yield to moderate in 2H (seasonality, auto mix)	Slightly moderating ahead
Funding/Liquidity	Robust unsecured/ABS access; narrowest unsecured spreads	$1.5B raised; 5.4% interest expense of ANR	$1.8B raised; $1B ABS <5% cost; $3.3B 1H total	Strong/consistent
Auto finance	Integration on track; growth to $2.1B EOP	$2.5B receivables commentary; conservative posture	$2.6B+ receivables, continued buildout	Growing
Credit cards	Small but growing; foundation build	Losses ~19.8%, yields >30%; long-term loss target 15–17%	~3% of receivables; conservative growth, mid-teens losses	Gradual scale-up with discipline
Regulatory/ILC	—	ILC application rationale (market expansion, funding, efficiencies)	No update; macro legislation note not baked into guidance	Watch for updates
Macro	Expect stability with vigilant monitoring	Tariff/inflation uncertainties considered; 30% stress in underwriting	Consumer stable; underwriting to disposable income	Stable consumer

Management Commentary

CEO on quarter strength: “We had a very strong second quarter…growth in high-quality loan originations, good pricing, and positive credit trends across the board, all leading to strong growth in capital generation.”
CFO on capital generation: “Capital generation — our primary performance metric — was $222 million…an increase of 63% from the prior-year period…reflects continued growth in our loan portfolio, improved portfolio yield, and better credit performance.”
CFO on guidance: “Total revenue growth is now expected to come in at the high end of the previously provided 6% to 8% range. C&I net charge-offs are expected to come in between 7.5% and 7.8%.”
CEO on credit card unit economics: “Over time, card yields will remain above 30%…Losses are running in the mid-teens, and operating expenses are lower because it’s a digital product.”
CEO on macro resilience: “Our consumer has been quite stable…we underwrite to net disposable income…can they afford the loan we’re offering them?”

Q&A Highlights

Competitive dynamics and capital allocation: Ample market capital keeps competition active; OMF focuses on higher-quality growth within a disciplined credit box; repurchases paced by excess capital and market conditions .
Credit trajectory and back book run-off: Front book now ~90% of portfolio; back book ~24% of 30+ dpd; YoY credit improvement should persist as back book shrinks .
Payments/delinquency patterns: Some customers roll delinquent but cure shortly after; nothing unusual; student loan collections resumption not impacting trends materially .
Card business: Yields >30%; losses mid-teens to ~20% as portfolio seasons; long-term loss target 15–17% with attractive returns .
Macro/tone: Consumer stable; underwriting anchored to disposable income; vigilant on inflation/gas/food/housing, but most weight on borrower-level data .

Estimates Context

EPS: C&I adjusted diluted EPS of $1.45 exceeded S&P Global consensus of $1.23 for Q2 2025; Q3 2025 consensus currently $1.60; FY 2025 EPS consensus $6.69 (suggests potential upward revisions if credit trends and capital generation remain strong) . S&P Global values marked with an asterisk are retrieved from S&P Global.*
Revenue: Company-reported total revenue was $1.5B; S&P Global’s “Revenue” consensus may reflect a different definition and is not directly comparable to company “Total revenue,” so we do not assess a revenue beat/miss on that basis in this recap . S&P Global values marked with an asterisk are retrieved from S&P Global.*

Key Takeaways for Investors

Positive inflection sustained: stronger capital generation (+63% YoY), improving NCOs, and 10% revenue growth underpin a constructive earnings trajectory into 2H25 .
Guidance narrowing lower is meaningful: NCOs now 7.5%–7.8% and revenue growth at the high end of 6–8% tighten the range of outcomes and support estimate momentum .
Watch 2H yield moderation: seasonal 90+ dpd dynamics and higher auto mix will temper yield, but discipline on pricing/credit should sustain profitability .
Card is an option on future upside: small but strategically important, with >30% yields; losses normalizing over time—growth will remain measured until macro clarity improves .
Funding/liquidity is a differentiator: successful unsecured and ABS access, plus sizable undrawn capacity and unencumbered receivables, support both growth and capital returns .
Capital returns continue: $1.04 dividend reaffirmed and buybacks ongoing (460k shares in Q2), paced by capital generation and conditions .
Catalysts/risks: Continued credit outperformance could drive estimate revisions; potential ILC progress (from prior quarter) could structurally enhance funding and operating model over time; macro shifts (inflation, employment) remain key risks, though portfolio is underwritten with a 30% stress buffer on originations (prior commentary) .

Footnote on estimates: Values marked with an asterisk are retrieved from S&P Global. They may reflect line-item definitions that differ from company-reported GAAP figures and, for OneMain, S&P Global’s “Primary EPS” consensus aligns with the company’s C&I adjusted diluted EPS.

Sources: Q2 2025 press release and 8‑K , Q2 2025 earnings call transcript , prior quarter materials for trend context .

OneMain Holdings, Inc. (OMF)·Q2 2025 Earnings Summary