OneMain Q2 Earnings Call Highlights

OneMain delivered portfolio growth in Q2 2026: Originations rose 10% year over year to $4.3 billion, managed receivables increased 7% to $26.9 billion and revenue grew 6% to $1.6 billion. GAAP earnings declined to $1.32 per diluted share from $1.40 a year earlier, largely due to higher loss provisions. Credit trends improved sequentially, supporting management’s expectation that losses will decline in the second half of 2026 and into 2027. However, net charge-offs remained above year-ago levels, and reserves increased to 11.6% of net receivables. Auto finance and credit cards continued to expand rapidly: Auto originations grew 19%, while credit card accounts increased 44% year over year and credit card charge-offs improved. OneMain maintained its full-year guidance, including 6%–9% managed receivables growth and C&I net charge-offs of 7.4%–7.9%.

OneMain NYSE: OMF reported second-quarter 2026 results marked by receivables and originations growth, improving early-stage delinquency trends and continued investment in its auto finance, credit card and technology initiatives. Chairman and Chief Executive Officer Doug Shulman said the company generated 10% year-over-year growth in originations, supporting managed receivables growth of 7%. He said OneMain maintained a conservative underwriting posture while expanding products and improving the customer experience.

“Credit performance was good and tracked in line with our expectations, and early delinquency trends continued to improve,” Shulman said.

OneMain reported GAAP net income of $152 million, or $1.32 per diluted share, compared with $1.40 per diluted share in the second quarter of 2025. C&I adjusted net income was $1.31 per diluted share, down from $1.45 a year earlier. Chief Financial Officer Jenny Osterhout said higher revenue during the quarter was offset by higher provisions for losses, primarily reflecting a larger reserve build tied to stronger receivables growth. Capital generation, the company’s principal management metric, rose 3% year over year to $229 million. Managed receivables ended the quarter at $26.9 billion, up $1.6 billion, or 7%, from a year earlier. Quarterly originations totaled $4.3 billion, up 10% year over year. Total revenue increased 6% to $1.6 billion. Interest income rose 6% to $1.4 billion, while other revenue increased 6% to $207 million. Operating expenses rose 6% to $439 million, with the operating-expense ratio flat year over year at 6.7%. Consumer loan yield was 22.7%, up 16 basis points sequentially and 11 basis points from a year earlier. Osterhout said the company expects consumer loan yield to remain around recent levels, with typical seasonal moderation in the second half of the year.

Management highlighted improving delinquency trends as a basis for its expectation that losses will decline in the second half of 2026 and continue improving in 2027. Thirty- to 89-day delinquency, excluding Foresight, was 2.82% at June 30, down 7 basis points from a year earlier. The company said its 30-plus delinquency rate excluding Foresight declined 4 basis points year over year to 5.03%, while 90-plus delinquency was 3 basis points above the prior-year level, an improvement from the 14-basis-point year-over-year increase recorded in the first quarter. Second-quarter C&I net charge-offs were 8.2%, down 21 basis points sequentially but 63 basis points above the prior-year quarter. Consumer loan net charge-offs, excluding credit cards, were 7.8%, down 25 basis points sequentially and up 58 basis points from a year earlier. O...