Executive Summary

Solid quarter with EPS beat and improved credit. Primary EPS (S&P definition) was $1.90 vs $1.60 consensus (16 estimates), driven by 9% total revenue growth and lower net charge-offs; GAAP diluted EPS was $1.67 . Primary EPS consensus and actual from S&P Global: $1.6029 est., $1.90 actual*.
Reiterated/raised outlook: FY25 total revenue growth now ~9% (prior 6–8%), managed receivables growth narrowed to 6–8% (higher end), C&I NCOs expected 7.5–7.8% at the low end; OpEx ratio guided ~6.6% (higher than prior ~6.0%) .
Credit trends positive: consumer loan NCO ratio fell to 6.67% (from 7.19% in Q2 and 7.33% YoY); 30+ DQ at 5.55% (seasonal uptick QoQ, better YoY) .
Capital return stepped up: dividend raised 1% to $1.05/share and a new $1.0B repurchase authorization through 2028; 540K shares repurchased for $32M in Q3 .
Funding/capital markets execution remains a differentiator: $1.6B unsecured issued at tight spreads; interest expense as % of average net receivables fell QoQ to 5.2% on refinancing of a 9% bond .

Note: *Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Revenue growth and credit improvement drove capital generation up 29% YoY to $272M; management highlighted “encouraging momentum in revenue growth and continued positive credit trends” .
- Consumer loan NCO ratio improved to 6.67% (−66 bps YoY; −52 bps vs Q1), and card NCOs improved ~288 bps QoQ to 16.7% as underwriting/servicing enhancements take hold .
- Funding strength: issued $1.6B across two unsecured bonds (6.18% 2030; 6.5% 2033), redeemed 9% 2029 notes, and expanded a $2.4B forward flow whole-loan sale, providing flexibility and lower cost of funds .
What Went Wrong
- Operating expenses rose 8% YoY to $427M (strategic investments and receivables growth), and the full-year OpEx ratio guidance increased to ~6.6% vs ~6.0% previously .
- Delinquencies seasonally increased QoQ: 30+ DQ ratio 5.55% vs 5.17% in Q2 (though improved YoY), and “backbook” still 19% of 30+ DQ despite being only 8% of receivables .
- Interest expense up 7% YoY to $320M on higher average debt supporting receivable growth (dollar costs grew despite better rates mix) .

Financial Results

Key P&L metrics (GAAP and C&I adj.):

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenue ($B)	$1.5	$1.5	$1.6
Net Income ($M)	$213	$167	$199
Diluted EPS (GAAP) ($)	$1.78	$1.40	$1.67
C&I Adjusted Diluted EPS ($)	$1.72	$1.45	$1.90
Net Income Margin %	29.06%*	23.59%*	25.32%*

Note: *Values retrieved from S&P Global.

Q3 actual vs S&P Global consensus:

Metric	Consensus	Actual
Primary EPS ($)	1.6029*	1.90*
Revenue ($)	1,239,271,670*	786,000,000*

Notes: S&P “Primary EPS” reflects SPGI’s standardized EPS; company’s GAAP diluted EPS was $1.67 . S&P “Revenue” basis differs from the company’s reported “Total revenue” ($1.6B); the SPGI revenue series is not directly comparable to the company’s reported total revenue and should be interpreted with caution. Values retrieved from S&P Global.

Credit and portfolio KPIs:

KPI	Q1 2025	Q2 2025	Q3 2025
Managed Receivables ($B)	$24.6	$25.2	$25.9
Originations ($B)	$3.0	$3.9	$3.889
Consumer Loan Yield (%)	22.4%	22.6%	22.6%
30+ Delinquency Ratio (%)	5.16%	5.17%	5.55%
Consumer Loan Net Charge-off Ratio (%)	7.83%	7.19%	6.67%
Allowance Ratio (%)	11.52%	11.54%	11.51%

Receivables mix (Q3 2025):

Net Finance Receivables ($B)	Q3 2025
Personal Loans	21.225
Auto Finance	2.431
Credit Cards	0.834
Total Net Finance Receivables	24.490

Funding & liquidity (Q3 2025 highlights): Principal debt $22.6B (54% secured), cash $658M, undrawn revolver $1.1B, undrawn conduits/credit-card VFN $6.4B, unencumbered receivables $10.9B .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Managed Receivables Growth	FY 2025	5%–8%	6%–8%, narrowed to higher end	Raised/narrowed
Total Revenue Growth	FY 2025	High end of 6%–8%	~9%	Raised
C&I Net Charge-offs	FY 2025	7.5%–7.8% (lower half)	7.5%–7.8% (at lower end)	Maintained/tightened to low end
Operating Expense Ratio	FY 2025	~6.0%	~6.6%	Raised
Originations Growth	Q4 2025	N/A	High single digits expected	New commentary
Dividend (Quarterly)	Ongoing	$1.04	$1.05 (+1%)	Raised
Share Repurchases	Through 2028	Prior authorization	New $1.0B program approved	Expanded

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
Credit quality and delinquencies	Reserve coverage steady; delinquency improvement YoY; front-book mix growing, back-book declining	Consumer NCOs 6.7% (−66 bps YoY); 30+ DQ 5.55% (seasonal QoQ rise, better YoY); back-book 8% of receivables but 19% of 30+ DQ	Improving YoY; seasonal QoQ
Funding costs and access	$1.8B raised in Q2; OpEx ratio view ~6.0%; access to ABS and unsecured strong	$1.6B unsecured issued; redeemed 9% bond; interest expense/ANR 5.2% vs 5.4% in Q2; liquidity $7.5B bank facilities	Favorable mix/costs
Originations & product innovation	Growth initiatives since mid-2024; high-quality origination focus	Expect Q4 originations growth high single digits; new data sources, renewals, payroll split options	Accelerating into Q4
Credit card business	Deliberate growth; ~mid-19% loss range improving in H2	>1M customers; yield >32%; card NCOs 16.7% (−288 bps QoQ)	Scaling, improving losses
Auto finance	Post-Foursight integration; receivables >$2.6B in Q2	Receivables >$2.7B; credit in line; conservative underwriting	Steady growth
Capital return	Repurchases increased in H1; dividend $1.04	Dividend raised to $1.05; $1.0B buyback authorization	More capital return
Macro/tariffs/consumer	Stable non-prime consumer; not loosening credit	Conservative 30% stress overlay remains; consumer stable; macro uncertainty acknowledged	Cautious stance maintained

Management Commentary

“We delivered excellent third quarter results with encouraging momentum in revenue growth and continued positive credit trends.” — Doug Shulman, CEO .
“We expect originations growth to increase to high single digits in the fourth quarter.” — Jeannette (Jenny) Osterhout, CFO .
“Revenue yield continues to increase [in card], now over 32%, and our credit card net charge-offs were down nearly 300 basis points from last quarter.” — CEO .
“In August, we issued a $750 million unsecured bond at 6.18%... In September, we issued an $800 million bond at 6.5%... issued at near-record-tight credit spreads.” — CFO .
“Our North Star remains $12.50 [capital generation per share]. We haven’t put a date on it… we definitely don’t need the bank charter to get to $12.50.” — CEO .
“We put a 30% stress overlay on top of [modeled lifetime losses]… We’ve chosen not to loosen that up.” — CEO .

Q&A Highlights

Consumer health and underwriting: Management emphasized stable non-prime consumer trends and reiterated the conservative 30% stress overlay; no loosening planned despite growth opportunities .
Funding strategy: Two unsecured issues at 6.18% and 6.5% reduced funding costs; next unsecured maturity ~$425M (Mar-2026) provides flexibility; interest expense as % ANR fell to 5.2% .
Capital return pacing: New $1.0B authorization through 2028; buybacks expected to “tick up” in 2026+ as excess capital grows, though not necessarily linear quarter-to-quarter .
Whole-loan sales/private credit: Forward flow increased to $100M/month in 2026; benefit expected more broadly in total revenue (gain on sale and servicing fees) .
ABS market access: Confident in program continuity; seasoned issuer advantage despite market volatility .

Estimates Context

Q3 EPS beat: Primary EPS (S&P) $1.90 vs $1.60 consensus (16 estimates), driven by 9% total revenue growth, higher yields, and lower NCOs; GAAP diluted EPS was $1.67 . S&P consensus and actual values retrieved from S&P Global.
Revenue estimates: S&P “Revenue” series ($1.24B consensus vs $786M actual) is not directly comparable to the company’s reported total revenue ($1.6B), reflecting definitional differences for specialty finance; we therefore do not judge a beat/miss on this basis*. Values retrieved from S&P Global.

Key Takeaways for Investors

Earnings power inflecting: Positive credit momentum and yield support lifted Primary EPS above consensus; management sees capital generation in 2025 “significantly exceed” 2024 .
Guidance broadly improved: FY25 revenue growth raised to ~9% and receivables growth narrowed upward; NCOs tracking to the low end of the range .
Operating leverage watch item: OpEx ratio guided up to ~6.6% (from ~6.0% prior) as OMF invests in tech/data/product; monitor expense discipline vs growth .
Funding advantage intact: Tight-spread unsecured issuance, lower funding costs, and expanded forward flow provide flexibility amid macro uncertainty .
Product diversification maturing: Credit card scale (>1M customers) with >32% yield and improving losses; auto receivables >$2.7B performing to plan .
Capital return catalyst: Dividend increase to $1.05 and $1.0B buyback authorization position OMF as a high-yield, capital-return story into 2026 .
Risk frame: Back-book still over-indexes delinquency; seasonal DQ uptick; macro (rates/tariffs) remains a watch, but underwriting posture remains conservative .

Additional detail and source citations:

Q3 headline results and capital return actions .
Consolidated P&L and balance sheet data .
C&I non-GAAP segment performance and reconciliations .
Credit metrics (delinquency, NCOs, yield) .
Funding/liquidity resources and facility capacity .
Guidance updates from CFO .
Q2 and Q1 trend context .

Notes on data sources: S&P Global consensus and actuals for “Primary EPS” and “Revenue” marked with an asterisk are retrieved from S&P Global; revenue definitions differ from the company’s reported total revenue basis and may not be directly comparable.

OneMain Holdings, Inc. (OMF)·Q3 2025 Earnings Summary