UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-35503
Enova International, Inc.
(Exact name of registrant as specified in its charter)
Delaware
45-3190813
(State or other jurisdiction of
Incorporation or organization)
(I.R.S. Employer
Identification No.)
175 West Jackson Blvd.
Chicago, Illinois
60604
(Address of principal executive offices)
(Zip Code)
(312) 568-4200
(Registrant’s telephone number, including area code)
NONE
(Former name, former address and former fiscal year, if changed since last report)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, $.00001 par value per share
ENVA
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
24,884,896 of the Registrant’s common shares, $0.00001 par value, were outstanding as of April 20, 2026.
CAUTIONARY NOTE CONCERNING FACTORS THAT MAY AFFECT FUTURE RESULTS
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. These forward-looking statements give current expectations or forecasts of future events and reflect the views and assumptions of senior management with respect to the business, financial condition, operations and prospects of Enova International, Inc. and its subsidiaries (collectively, the “Company”). When used in this report, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “intends,” “anticipates,” “may,” “forecast,” “project” and similar expressions or variations as they relate to the Company or its management are intended to identify forward-looking statements. Forward-looking statements address matters that involve risks and uncertainties that are beyond the ability of the Company to control and, in some cases, predict. Accordingly, there are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these statements. Key factors that could cause the Company’s actual financial results, performance or condition to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, the following:
The foregoing list of factors is not exhaustive and new factors may emerge or changes to these factors may occur that would impact the Company’s business and cause actual results to differ materially from those expressed in any of our forward-looking statements. Additional information regarding these and other factors may be contained in the Company’s filings with the Securities and Exchange Commission (the “SEC”). Readers of this report are encouraged to review the Company’s filings with the SEC, including the risks described under “Risk Factors” contained in the Company’s Form 10-K and any updates to those risk factors contained in subsequent Forms 10-Q, to obtain more detail about the Company’s risks and uncertainties. All forward-looking statements involve risks, assumptions and uncertainties. The occurrence of the events described, and the achievement of the expected results, depends on many events, some or all of which are not predictable or within the Company’s control. If one or more events related to these or other risks or uncertainties materialize, or if management’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. The forward-looking statements in this report are made as of the date of this report, and the Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this report. All forward-looking statements in this report are expressly qualified in their entirety by the foregoing cautionary statements.
ENOVA INTERNATIONAL, INC.
INDEX TO FORM 10-Q
Page
PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements (Unaudited)
Consolidated Balance Sheets – March 31, 2026 and 2025 and December 31, 2025
1
Consolidated Statements of Income – Three Months Ended March 31, 2026 and 2025
3
Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2026 and 2025
4
Consolidated Statements of Stockholders’ Equity – Three Months Ended March 31, 2026 and 2025
5
Consolidated Statements of Cash Flows – Three Months Ended March 31, 2026 and 2025
6
Notes to Consolidated Financial Statements
7
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
19
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
35
Item 4.
Controls and Procedures
PART II. OTHER INFORMATION
Legal Proceedings
37
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults upon Senior Securities
Mine Safety Disclosures
Item 5.
Other Information
38
Item 6.
Exhibits
39
SIGNATURES
40
ITEM 1. FINANCIAL STATEMENTS
ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
(Unaudited)
March 31,
December 31,
2026
2025
Assets
Cash and cash equivalents(1)
$
96,130
55,514
71,709
Restricted cash(1)
325,226
256,342
336,154
Loans and finance receivables at fair value(1)
5,872,957
4,569,819
5,471,544
Income taxes receivable
41,020
48,117
40,901
Other receivables and prepaid expenses(1)
74,149
71,617
80,870
Property and equipment, net
135,666
124,791
132,566
Operating lease right-of-use assets
15,926
17,607
16,549
Goodwill
279,275
Intangible assets, net
2,410
8,937
3,660
Other assets(1)
34,492
25,239
35,204
Total assets
6,877,251
5,457,258
6,468,432
Liabilities and Stockholders’ Equity
Accounts payable and accrued expenses(1)
282,112
237,420
305,849
Operating lease liabilities
31,713
32,144
32,041
Deferred tax liabilities, net
329,101
233,693
295,437
Long-term debt(1)
4,832,542
3,757,351
4,498,381
Total liabilities
5,475,468
4,260,608
5,131,708
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.00001 par value, 250,000,000 shares authorized, 47,904,945, 47,085,738 and 47,441,228 shares issued and 24,920,150, 25,559,390 and 24,715,608 outstanding as of March 31, 2026 and 2025 and December 31, 2025, respectively
—
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding
Additional paid in capital
380,534
337,679
370,078
Retained earnings
2,097,242
1,770,699
2,006,143
Accumulated other comprehensive loss
(6,406
)
(10,782
(9,500
Treasury stock, at cost (22,984,795, 21,526,348 and 22,725,620 shares as of March 31, 2026 and 2025 and December 31, 2025, respectively)
(1,069,587
(900,946
(1,029,997
Total stockholders’ equity
1,401,783
1,196,650
1,336,724
Total liabilities and stockholders’ equity
(1) Includes amounts in wholly-owned, bankruptcy-remote special purpose subsidiaries (“VIEs”) presented separately in the table below.
The following table presents the aggregated assets and liabilities of consolidated VIEs, which are included in the Consolidated Balance Sheets above. The assets in the table below may only be used to settle obligations of consolidated VIEs and are in excess of those obligations. See Note 1 for additional information.
Assets of consolidated VIEs, included in total assets above
Cash and cash equivalents
562
338
672
Restricted cash
264,780
227,800
292,826
Loans and finance receivables at fair value
4,652,258
3,255,651
4,227,546
Other receivables and prepaid expenses
21
28
27
Other assets
7,747
8,908
7,547
4,925,368
3,492,725
4,528,618
Liabilities of consolidated VIEs, included in total liabilities above
Accounts payable and accrued expenses
15,884
12,170
12,960
Long-term debt
3,334,297
2,420,041
3,015,120
3,350,181
2,432,211
3,028,080
See notes to consolidated financial statements.
2
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended
Revenue
875,142
745,541
Change in Fair Value
(346,183
(319,359
Net Revenue
528,959
426,182
Operating Expenses
Marketing
189,415
139,291
Operations and technology
75,751
62,462
General and administrative
47,778
42,464
Depreciation and amortization
8,909
10,061
Total Operating Expenses
321,853
254,278
Income from Operations
207,106
171,904
Interest expense, net
(94,046
(80,544
Foreign currency transaction loss
(496
(452
Equity method investment income
301
120
Income before Income Taxes
112,865
91,028
Provision for income taxes
21,766
18,083
Net income
91,099
72,945
Earnings Per Share
Earnings per common share:
Basic
3.66
2.84
Diluted
3.46
2.69
Weighted average common shares outstanding:
24,874
25,676
26,349
27,104
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
Other comprehensive gain (loss), net of tax:
Foreign currency translation gain(1)
3,094
2,909
Total other comprehensive income, net of tax
Comprehensive Income
94,193
75,854
(1) Net of tax (provision) benefit of $(967) and $(914) for the three months ended March 31, 2026 and 2025, respectively.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Accumulated
Additional
Other
Total
Common Stock
Paid in
Retained
Comprehensive
Treasury Stock, at cost
Stockholders’
Shares
Amount
Capital
Earnings
Loss
Equity
Balance at December 31, 2024
46,521
328,268
1,697,754
(13,691
(20,713
(815,407
1,196,924
Stock-based compensation expense
7,936
Shares issued for vested RSUs
506
Shares issued for stock option exercises
59
1,475
Foreign currency translation gain, net of tax
Purchases of treasury shares, at cost
(813
(85,539
Balance at March 31, 2025
47,086
(21,526
Balance at December 31, 2025
47,441
(22,726
8,709
387
77
1,747
(259
(39,590
Balance at March 31, 2026
47,905
(22,985
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash Flows from Operating Activities
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred loan costs and debt discount
4,306
3,837
Change in fair value of loans and finance receivables
344,300
317,480
Operating leases, net
295
485
Deferred income taxes, net
32,698
9,189
Changes in operating assets and liabilities:
Finance and service charges on loans and finance receivables
(4,676
3,177
Other receivables and prepaid expenses and other assets
9,665
(8,510
(32,617
(34,384
Current income taxes
11,852
8,928
Net cash provided by operating activities
474,540
391,144
Cash Flows from Investing Activities
Loans and finance receivables originated or acquired
(2,152,907
(1,602,358
Loans and finance receivables repaid
1,410,286
1,105,643
Capitalization of software development costs and purchases of fixed assets
(10,751
(12,875
Net cash used in investing activities
(753,372
(509,590
Cash Flows from Financing Activities
Borrowings under revolving line of credit
578,000
402,000
Repayments under revolving line of credit
(564,000
(402,000
Borrowings under securitization facilities
357,964
494,696
Repayments under securitization facilities
(40,755
(299,314
Debt issuance costs paid
(1,247
(3,991
Proceeds from exercise of stock options
Treasury shares purchased
Net cash provided by financing activities
292,119
107,327
Effect of exchange rates on cash, cash equivalents and restricted cash
206
307
Net increase (decrease) in cash, cash equivalents and restricted cash
13,493
(10,812
Cash, cash equivalents and restricted cash at beginning of year
407,863
322,668
Cash, cash equivalents and restricted cash at end of period
421,356
311,856
Supplemental Disclosures
Non-cash renewal of loans and finance receivables
128,394
115,497
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
1. Significant Accounting Policies
Nature of the Company
Enova International, Inc. and its subsidiaries (collectively, the “Company”) operate an internet-based lending platform to serve customers in need of cash to fulfill their financial responsibilities. Through a network of direct and indirect marketing channels, the Company offers funds to its customers through a variety of loan and finance receivable products that are primarily unsecured. The business is operated primarily through the internet to provide convenient, fully-automated financial solutions to its customers. The Company provides financing to small businesses through either installment loans or line of credit accounts and originates, guarantees, purchases or purchases a participating interest in consumer installment loans or line of credit accounts. The Company also provides services related to a third-party lender’s consumer loan products in Texas by acting as a credit services organization or credit access business on behalf of consumers in accordance with applicable state laws (“CSO program”).
Basis of Presentation
The consolidated financial statements of the Company included herein have been prepared on the basis of accounting principles generally accepted in the United States (“GAAP”) and reflect the historical results of operations and cash flows of the Company during each respective period. The consolidated financial statements include goodwill and intangible assets arising from businesses previously acquired. The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated.
The Company consolidates any VIE where it has been determined it is the primary beneficiary. The primary beneficiary is the entity which has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance as well as the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE.
The consolidated financial statements presented as of March 31, 2026 and 2025 and for the three-month periods ended March 31, 2026 and 2025 are unaudited but, in management’s opinion, include all adjustments necessary for a fair presentation of the results for such interim periods. Operating results for the three-month period are not necessarily indicative of the results that may be expected for the full fiscal year.
These consolidated financial statements and related notes should be read in conjunction with the Company’s audited consolidated financial statements as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023 and related notes, which are included on Form 10-K filed with the SEC on February 20, 2026.
Cash, Cash Equivalents and Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets (in thousands):
Total cash, cash equivalents and restricted cash
Revenue Recognition
The Company recognizes revenue based on the financing products and services it offers and on loans it acquires. “Revenue” in the consolidated statements of income primarily includes interest income, statement and draw fees on line of credit accounts, fees for services provided through the Company’s CSO program (“CSO fees”), origination fees and other fees as permitted by applicable laws and pursuant to the agreement with the customer. Interest income is generally recognized on an effective yield basis over the contractual term of the loan on installment loans or the estimated outstanding period of the draw on line of credit accounts. Statement fees on line of credit accounts are similar to interest charges and are generally recognized similarly to interest income. Draw fees on line of credit accounts are generally recognized at the time of draw. CSO fees are recognized over the term of the loan. Origination fees are charged to customers on certain installment loan products and are recognized upon origination.
Loans and Finance Receivables
The Company utilizes the fair value option on its entire loan and finance receivable portfolio. As such, loans and finance receivables are carried at fair value in the consolidated balance sheet with changes in fair value recorded in the consolidated income statement. To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments and servicing costs over the estimated duration of the underlying assets. Loss, prepayment and servicing cost assumptions are determined using historical data and include appropriate consideration of recent trends and anticipated future performance. Future cash flows are discounted using a rate of return that the Company believes a market participant would require. Accrued and unpaid interest and fees are included in “Loans and finance receivables at fair value” in the consolidated balance sheets.
If a loan is renewed or refinanced, the renewal or refinanced loan is considered a new loan. The Company generally does not consider modifications that do not necessitate the customer to sign a new loan agreement to be new loans.
Current and Delinquent Loans and Finance Receivables
The Company classifies its loans and finance receivables as either current or delinquent. When a customer does not make a scheduled payment in full as of the due date, the receivable is considered delinquent. For the OnDeck portfolio, there is no accrual of interest income on loans when the customer misses their most recent payment. Excluding the OnDeck portfolio, there is no accrual of interest income on loans when a customer falls more than one payment behind. Loans may be returned to accrual status if the customer rectifies and the loan no longer meets non-accrual criteria. The Company allows for normal payment processing time before considering a loan delinquent but does not provide for any additional grace period.
The Company offers certain forbearance options on its loan products with features such as payment deferrals without the incurrence of additional finance charges or late fees. If a loan is deemed to be current and the customer makes a deferral or payment modification, the loan is still deemed to be current until the next scheduled payment is missed.
For consumer loans and finance receivables, the Company generally charges off a delinquent loan after 65 days past due, or earlier if deemed uncollectible at that point. For small business loans and finance receivables, the Company generally charges off a loan or finance receivable when it is probable that it will be unable to collect all of the remaining principal payments, which is generally after 90 days of delinquency and 30 days of non-activity. Recoveries on loans and finance receivables that were previously charged off are generally recognized when collected or sold.
Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. In accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other, the Company tests goodwill and intangible assets with an indefinite life for potential impairment annually as of October 1 and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount.
The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. In assessing the qualitative factors, management considers relevant events and circumstances including but not limited to macroeconomic conditions, industry and market environment, overall financial performance of the Company, cash flow from operating activities, market capitalization and stock price. If the Company determines that the quantitative impairment test is required, management uses the income approach to complete its annual goodwill assessment. The income approach uses future cash flows and estimated terminal values for the Company that are discounted using a market participant perspective to determine the fair value, which is then compared to the carrying value to determine if there is impairment. The income approach includes assumptions about revenue growth rates, operating margins and terminal growth rates discounted by an estimated weighted-average cost of capital derived from other publicly-traded companies that are similar but not identical from an operational and economic standpoint.
Marketing Expenses
Marketing expenses consist of digital costs, lead purchase costs and offline marketing costs such as television and direct mail advertising. All marketing expenses are expensed as incurred.
8
Investments in Unconsolidated Investees
The Company owns a 20% equity interest in On Deck Capital Australia PTY LTD (“OnDeck Australia”), which is recorded using the equity method of accounting. As of March 31, 2026 and 2025 and December 31, 2025, the carrying value of the Company's ownership in OnDeck Australia was $0.3 million, $0.2 million and $1.5 million, respectively.
Equity method income has been included in “Equity method investment income” in the consolidated income statements.
Variable Interest Entities
As part of the Company’s overall funding strategy and as part of its efforts to support its liquidity from sources other than traditional capital market sources, the Company has established a securitization program through its various securitization facilities. The Company transfers certain loan receivables to VIEs, which issue notes backed by the underlying loan receivables and are serviced by other wholly-owned subsidiaries of the Company. The cash flows from the loans held by the VIEs are used to repay obligations under the notes.
The Company is required to evaluate the VIEs for consolidation. The Company has the ability to direct the activities of the VIEs that most significantly impact the economic performance of the entities as the servicer of the securitized loan receivables. Additionally, the Company has the right to returns related to servicing fee revenue from the VIEs and to receive residual payments, which expose it to potentially significant losses and returns. Accordingly, the Company determined it is the primary beneficiary of the VIEs and is required to consolidate them. The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings.
Accounting Standards to be Adopted in Future Periods
In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”), which modernizes the recognition and disclosure framework for internal-use software costs, removing the previous “development stage” model and introducing a more judgment-based approach. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of ASU 2025-06 on the consolidated financial statements.
2. Loans and Finance Receivables
Revenue generated from the Company’s loans and finance receivables for the three months ended March 31, 2026 and 2025 was as follows (in thousands):
Consumer loans and finance receivables revenue
445,807
430,825
Small business loans and finance receivables revenue
417,500
304,596
Total loans and finance receivables revenue
863,307
735,421
11,835
10,120
Total revenue
9
Loans and Finance Receivables at Fair Value
The components of Company-owned loans and finance receivables at March 31, 2026 and 2025 and December 31, 2025 were as follows (in thousands):
As of March 31, 2026
Small
Consumer
Business
Principal balance - accrual
1,291,997
3,390,248
4,682,245
Principal balance - non-accrual
145,367
270,936
416,303
Total principal balance
1,437,364
3,661,184
5,098,548
Accrued interest and fees
123,692
35,471
159,163
Loans and finance receivables at fair value - accrual
1,694,001
3,921,494
5,615,495
Loans and finance receivables at fair value - non-accrual
69,551
187,911
257,462
1,763,552
4,109,405
Difference between principal balance and fair value
326,188
448,221
774,409
As of March 31, 2025
1,190,589
2,464,926
3,655,515
136,179
172,725
308,904
1,326,768
2,637,651
3,964,419
122,743
30,083
152,826
1,571,378
2,876,013
4,447,391
44,959
77,469
122,428
1,616,337
2,953,482
289,569
315,831
605,400
As of December 31, 2025
1,294,991
3,079,986
4,374,977
151,947
221,090
373,037
1,446,938
3,301,076
4,748,014
126,825
27,448
154,273
1,694,851
3,550,186
5,245,037
69,618
156,889
226,507
1,764,469
3,707,075
317,531
405,999
723,530
As of March 31, 2026 and 2025 and December 31, 2025, the aggregate fair value of loans and finance receivables that were 90 days or more past due was $49.5 million, $30.9 million and $41.5 million, respectively, of which, $37.8 million, $14.8 million and $30.1 million, respectively, was in non-accrual status. The aggregate unpaid principal balance for loans and finance receivables that were 90 days or more past due was $72.5 million, $65.7 million and $60.7 million, respectively.
10
Changes in the fair value of Company-owned loans and finance receivables during the three months ended March 31, 2026 and 2025 were as follows (in thousands):
Three Months Ended March 31, 2026
Balance at beginning of period
Originations or acquisitions(1)
547,516
1,733,785
2,281,301
Interest and fees(2)
Repayments
(781,891
(1,620,196
(2,402,087
Charge-offs, net(3)
(227,637
(162,957
(390,594
Net change in fair value(3)
12,096
34,198
46,294
Effect of foreign currency translation
3,192
Balance at end of period
Three Months Ended March 31, 2025
1,639,307
2,747,137
4,386,444
496,622
1,221,234
1,717,856
(736,766
(1,219,062
(1,955,828
(227,785
(122,551
(350,336
10,728
22,128
32,856
3,406
(1) Originations or acquisitions is presented on a cost basis.
(2) Included in “Revenue” in the consolidated statements of income.
(3) Included in “Change in Fair Value” in the consolidated statements of income.
Guarantees of Consumer Loans
In connection with its CSO program, the Company guarantees consumer loan payment obligations to an unrelated third-party lender for consumer loans and is required to purchase any defaulted loans it has guaranteed. The guarantee represents an obligation to purchase specific loans that go into default. As of March 31, 2026 and 2025 and December 31, 2025, the consumer loans guaranteed by the Company had an estimated fair value of $20.9 million, $21.2 million and $26.1 million, respectively, and an outstanding principal balance of $14.8 million, $14.8 million and $18.7 million, respectively. As of March 31, 2026 and 2025 and December 31, 2025, the amount of consumer loans, including principal, fees and interest, guaranteed by the Company was $17.9 million, $18.0 million and $22.3 million, respectively. These loans are not included in the consolidated balance sheets as the Company does not own the loans prior to default.
11
3. Long-term Debt
The Company’s long-term debt instruments and balances outstanding as of March 31, 2026 and 2025 and December 31, 2025, including maturity date, weighted average interest rate and borrowing capacity as of March 31, 2026, were as follows (dollars in thousands):
Weighted
Outstanding
Revolving
average
Borrowing
period end date
Maturity date
interest rate(1)
capacity
Funding Debt:
ODAS IV 2025-2 Securitization Notes
October 2028
November 2032
5.65%
261,434
ODAS IV 2025-1 Securitization Notes
March 2028
April 2032
5.89%
261,392
ODAS IV 2024-2 Securitization Notes
September 2027
October 2031
5.78%
261,353
2025-A Securitization Notes
7.29%
72,499
93,331
ODAS IV 2024-1 Securitization Notes
May 2027
June 2031
6.84%
399,574
2024-A Securitization Notes
October 2030
8.31%
34,868
98,431
45,510
ODAS IV 2023-1 Securitization Notes
July 2026
August 2030
7.66%
227,051
ODR 2021-1 Securitization Facility
November 2027
November 2028
6.73%
246,667
68,338
202,890
NCR 2022 Securitization Facility
October 2026
7.93%
275,000
200,000
145,207
175,194
NCLOCR 2025 Securitization Facility
July 2027
July 2028
7.92%
150,000
130,000
90,000
NCLOCR 2024 Securitization Facility
February 2027
February 2028
9.17%
115,000
2023-A Securitization Notes
December 2027
25,240
9,282
RAOD Securitization Facility
November 2026
6.41%
355,263
236,842
158,846
HWCR 2023 Securitization Facility
September 2026
8.01%
621,183
487,595
373,214
473,214
ODR 2022-1 Securitization Facility
June 2026
June 2027
7.44%
420,000
377,325
268,342
202,325
2018-1 Securitization Facility
March 2025
March 2026
32,200
Total funding debt
7.08%
3,786,284
3,346,600
2,434,188
3,029,392
Corporate Debt:
Revolving line of credit
August 2029
6.98%
825,000
(2)
610,000
453,000
596,000
9.125% senior notes due 2029
9.13%
500,000
11.25% senior notes due 2028
December 2028
11.25%
400,000
Total corporate debt
8.82%
1,725,000
1,510,000
1,353,000
1,496,000
Less: Long-term debt issuance costs
(21,879
(26,638
(24,581
Less: Debt discounts
(2,179
(3,199
(2,430
Total long-term debt
(1) The weighted average interest rate is determined based on the rates and principal balances on March 31, 2026. It does not include the impact of the amortization of deferred loan origination costs or debt discounts.
(2) The Company had outstanding letters of credit under the Revolving line of credit of $0.4 million as of March 31, 2026 and 2025 and December 31, 2025.
Weighted average interest rates on long-term debt were 8.18% and 8.91% during the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026 and 2025 and December 31, 2025, the Company was in compliance with all financial ratios and covenants set forth in the prevailing long-term debt agreements.
Recent Updates to Debt Facilities
On March 30, 2026, the loan securitization facility for NetCredit Receivables 2022, LLC (the “NCR 2022 Securitization Facility”) was amended to, among other changes, increase the revolving commitment from $200.0 million to $275.0 million.
On March 30, 2026, the loan securitization facility for NetCredit LOC Receivables 2024, LLC (the “NCLOCR 2024 Securitization Facility”) was amended to, among other changes, increase the revolving commitment from $150.0 million to $200.0 million.
On March 30, 2026, the loan securitization facility for Receivable Assets of OnDeck, LLC (the “RAOD Securitization Facility”) was amended to, among other changes, increase the Class A revolving commitment from $200.0 million to $300.0 million, the Class B revolving commitment from $36.8 million to $55.3 million and the total facility commitment from $236.8 million to $355.3 million.
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On March 31, 2026, the loan securitization facility for HWC Receivables 2023, LLC (the “HWCR 2023 Securitization Facility”) was amended to, among other changes, increase the Class A revolving commitment from $365.0 million to $465.0 million, the Class B revolving commitment from $122.6 million to $156.2 million and the total facility commitment from $487.6 million to $621.2 million.
4. Income Taxes
The Company’s effective tax rate for the three months ended March 31, 2026 was 19.3% compared to 19.9% for the three months ended March 31, 2025. The decrease is primarily attributable to higher excess tax benefits on stock compensation due to stock price appreciation and interest income on a federal income tax refund during the three months ended March 31, 2026, partially offset by increased interest expense on unrecognized tax benefits.
As of March 31, 2026, the balance of unrecognized tax benefits, inclusive of interest and penalties, was $133.7 million, of which $115.2 million is included in “Accounts payable and accrued expenses” on the consolidated balance sheet, with the remaining $18.5 million recorded as a reduction to deferred tax assets. This balance consists of a temporary component of $120.7 million, for which there is an equal and offsetting deferred tax asset, and a permanent component of $13.0 million, which, if recognized, would favorably affect the effective tax rate in the period of recognition. As of March 31, 2025, the balance of unrecognized tax benefits, inclusive of interest and penalties, was $106.2 million, of which $98.8 million was included in “Accounts payable and accrued expenses” on the consolidated balance sheet, with the remaining $7.4 million recorded as a reduction of deferred tax assets. The balance of $106.2 million included a permanent component of $8.4 million. As of December 31, 2025, the Company had $126.5 million of unrecognized tax benefits, inclusive of interest and penalties, of which $103.2 million was included in “Accounts payable and accrued expenses” on the consolidated balance sheet. The remaining $23.3 million was recorded as a reduction to deferred tax assets. The balance of $126.5 million at December 31, 2025 included a permanent component of $11.4 million. Based on the expiration of the statute of limitations for certain jurisdictions, the Company believes it is reasonably possible that, within the next twelve months, unrecognized tax benefits could decrease by approximately $1.1 million. The Company believes that it has adequately accounted for any material tax uncertainties in its existing reserves for all open tax years.
The Company’s U.S. tax returns are subject to examination by federal and state taxing authorities. The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2021. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed. For jurisdictions that have generated net operating losses, carryovers may be subject to the statute of limitations applicable for the year those carryovers are utilized. In these cases, the period for which the losses may be adjusted will extend to conform with the statute of limitations for the year in which the losses are utilized. In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases.
5. Earnings Per Share
Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the treasury share method, by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time.
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The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three months ended March 31, 2026 and 2025 (in thousands, except per share amounts):
Numerator:
Denominator:
Total weighted average basic shares
Shares applicable to stock-based compensation
1,428
Total weighted average diluted shares
Earnings per common share – basic
Earnings per common share – diluted
For the three months ended March 31, 2026 and 2025, there were 68,742 and 137,133 shares of common stock underlying stock options, respectively, and 106,870 and 161,732 shares of common stock underlying restricted stock units, respectively, that were excluded from the calculation of diluted net income per share because their effect would have been antidilutive.
6. Operating Segment Information
The Company provides online financial services to non-prime credit consumers and small businesses in the United States and Brazil. The Company has one reportable segment, which is composed of the Company’s domestic and international operations and corporate services. The Company has aggregated all components of its business into a single operating segment based on the similarities of the economic characteristics, the nature of the products and services, the nature of the production and distribution methods, the shared technology platforms, the type of customer and the nature of the regulatory environment. The Company's Chief Operating Decision Maker, its Chief Executive Officer, is regularly provided with significant segment expenses at a similar level and category as is disclosed in the Consolidated Statements of Income; as such, separate presentation is not provided in this Note.
Geographic Information
The following table presents the Company’s revenue by geographic region for the three months ended March 31, 2026 and 2025 (in thousands):
United States
851,541
727,760
Other international countries
23,601
17,781
The Company’s long-lived assets, which consist of the Company’s property and equipment, were $135.7 million, $124.8 million and $132.6 million at March 31, 2026 and 2025 and December 31, 2025, respectively. The operations for the Company’s domestic and international businesses are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial.
7. Commitments and Contingencies
Litigation
On April 23, 2018, the Commonwealth of Virginia, through Attorney General Mark R. Herring, filed a lawsuit in the Circuit Court for the County of Fairfax, Virginia against NC Financial Solutions of Utah, LLC (“NC Utah”), a subsidiary of the Company. The lawsuit alleged violations of the Virginia Consumer Protection Act relating to NC Utah’s communications with customers, collections of certain payments, its loan agreements, and the rates it charged to Virginia borrowers. The plaintiff sought to enjoin NC Utah from continuing its lending practices in Virginia, restitution, civil penalties, and costs and expenses in connection with the same. In January 2026, the
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parties entered into a Consent Decree to resolve the matter. Under the Consent Decree, NC Utah denied the allegations contained in the complaint and agreed to a payment of $3.4 million, comprised of $3.1 million in customer restitution, $0.2 million in fees and costs and $0.1 million in administration expenses. Additionally, NC Utah agreed to modify certain outstanding loans at reduced interest rates and forgive approximately $87.0 million of previously charged-off receivables. As the payment of $3.4 million had been accrued in prior years and the forgiven loans charged off in prior years, there was no material impact to the Company’s consolidated income statements for the three months ended March 31, 2026 and 2025.
The Company is also involved in certain routine legal proceedings, claims and litigation matters encountered in the ordinary course of its business. Certain of these matters may be covered to an extent by insurance or by indemnification agreements with third parties. The Company has recorded accruals in its consolidated financial statements for those matters in which it is probable that it has incurred a loss and the amount of the loss, or range of loss, can be reasonably estimated. In the opinion of management, the resolution of these matters will not have a material adverse effect on the Company’s financial position, results of operations or liquidity.
8. Fair Value Measurements
Recurring Fair Value Measurements
The Company uses a hierarchical framework that prioritizes and ranks the market observability of inputs used in its fair value measurements. Market price observability is affected by a number of factors, including the type of asset or liability and the characteristics specific to the asset or liability being measured. Assets and liabilities with readily available, active, quoted market prices or for which fair value can be measured from actively quoted prices generally are deemed to have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The Company classifies the inputs used to measure fair value into one of three levels as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Inputs other than Level 1, quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived prices whose inputs are observable or whose significant value drivers are observable.
Level 3: Unobservable inputs for the asset or liability measured.
Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on the Company’s market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level of input that is significant to the entire measurement. Such determination requires significant management judgment.
During the three months ended March 31, 2026 and 2025, there were no transfers of assets or liabilities in or out of Level 3 fair value measurements. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period fair values.
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The Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2026 and 2025 and December 31, 2025 are as follows (in thousands):
Fair Value Measurements Using
Level 1
Level 2
Level 3
Financial assets:
Consumer loans and finance receivables(1)
Small business loans and finance receivables(1)
Non-qualified savings plan assets(2)
15,963
Investment in trading security(3)
14,315
5,903,235
30,278
5,921
4,587,836
18,017
14,486
13,722
5,499,752
28,208
(1) Consumer and small business loans and finance receivables are included in “Loans and finance receivables at fair value” in the consolidated balance sheets.
(2) The non-qualified savings plan assets are included in “Other receivables and prepaid expenses” in the Company’s consolidated balance sheets and have an offsetting liability, which is included in “Accounts payable and accrued expenses” in the Company’s consolidated balance sheets.
(3) Investment in trading security is included in “Other assets” in the Company’s consolidated balance sheets.
The Company primarily estimates the fair value of its loan and finance receivables portfolio using discounted cash flow models that have been internally developed. The models use inputs, such as estimated losses, prepayments, servicing costs and discount rates, that are unobservable but reflect the Company’s best estimates of the assumptions a market participant would use to calculate fair value. Certain unobservable inputs may, in isolation, have either a directionally consistent or opposite impact on the fair value of the financial instrument for a given change in that input. An increase to the net loss rate, prepayment rate, servicing cost, or discount rate would decrease the fair value of the Company’s loans and finance receivables. When multiple inputs are used within the valuation techniques for loans, a change in one input in a certain direction may be offset by an opposite change from another input.
The fair value of the nonqualified savings plan assets was deemed Level 1 as they are publicly traded equity securities for which market prices of identical assets are readily observable.
The fair value of the investment in trading security was deemed Level 1 as it is a publicly traded fund with active market pricing that is readily available.
The Company had no liabilities measured at fair value on a recurring basis as of March 31, 2026 and 2025 and December 31, 2025.
Fair Value Measurements on a Non-Recurring Basis
The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a non-recurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. At March 31, 2026 and 2025 and December 31, 2025, there were no assets or liabilities recorded at fair value on a non-recurring basis.
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Financial Assets and Liabilities Not Measured at Fair Value
The Company’s financial assets and liabilities as of March 31, 2026 and 2025 and December 31, 2025 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands):
Balance at
Investment in unconsolidated investee (1)
6,918
428,274
Financial liabilities:
Securitization notes
3,346,451
3,344,522
397,970
422,876
513,450
4,854,421
4,280,848
318,774
2,433,768
2,442,597
397,221
430,980
513,995
3,783,989
3,387,572
414,781
3,029,180
3,037,390
397,783
422,924
530,620
4,522,963
3,990,934
(1) Investment in unconsolidated investee is included in “Other assets” in the consolidated balance sheets.
Cash and cash equivalents and restricted cash bear interest at market rates and have maturities of less than 90 days. The carrying amount of restricted cash and cash equivalents approximates fair value.
The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date.
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The Company measures the fair value of its revolving line of credit using Level 3 inputs. The Company considered the fair value of its other long-term debt and the timing of expected payment(s).
The fair values of the Company’s securitization notes and senior notes are estimated based on quoted prices in markets that are not active, which are deemed Level 2 inputs.
9. Subsequent Events
Subsequent events have been reviewed through the date these financial statements were issued.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of financial condition, results of operations, liquidity and capital resources and certain factors that may affect future results, including economic and industry-wide factors, of Enova International, Inc. and its subsidiaries should be read in conjunction with our consolidated financial statements and accompanying notes included under Part I, Item 1 of this Quarterly Report on Form 10-Q, as well as with Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risk, uncertainties, and other factors that could cause actual results to differ materially from those made, projected or implied in the forward-looking statements. Please see “Risk Factors” and “Cautionary Statement Concerning Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with these statements.
BUSINESS OVERVIEW
We are a leading technology and analytics company focused on providing online financial services. In 2025, we extended approximately $7.8 billion in credit or financing to borrowers and for the three months ended March 31, 2026, we extended approximately $2.3 billion in credit or financing to borrowers. As of March 31, 2026, we offered or arranged loans or draws on lines of credit to consumers in 39 states in the United States and Brazil. We also offered or arranged financing to small businesses in 49 states and Washington D.C. in the United States. We use our proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing us to offer consumers and small businesses credit or financing when and how they want it. Our customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. We were an early entrant into online lending, launching our online business in 2004, and through March 31, 2026, we have completed approximately 70.4 million customer transactions and collected more than 95 terabytes of currently accessible customer behavior data since launch, allowing us to better analyze and underwrite our specific customer base. We have significantly diversified our business over the past several years, having expanded the markets we serve and the financing products we offer. These financing products include installment loans and line of credit accounts.
We believe our customers highly value our products and services as an important component of their personal or business finances because our products are convenient, quick and often less expensive than other available alternatives. We attribute the success of our business to our advanced and innovative technology systems, the proprietary analytical models we use to predict the performance of loans and finance receivables, our sophisticated customer acquisition programs, our dedication to customer service and our talented employees.
We have developed proprietary underwriting systems based on data we have collected over our more than 21 years of experience. These systems employ advanced risk analytics, including machine learning and artificial intelligence, to decide whether to approve financing transactions, to structure the amount and terms of the financings we offer pursuant to jurisdiction-specific regulations and to provide customers with their funds quickly and efficiently. Our systems closely monitor collection and portfolio performance data that we use to continually refine machine learning-enabled analytical models and statistical measures used in making our credit, purchase, marketing and collection decisions. Approximately 90% of models used in our analytical environment are machine learning-enabled.
Our flexible and scalable technology platforms allow us to process and complete customers’ transactions quickly and efficiently. In 2025, we processed approximately 4.3 million transactions, and we continue to grow our loan and finance receivable portfolios and increase the number of customers we serve through desktop, tablet and mobile platforms. Our highly customizable technology platforms allow us to efficiently develop and deploy new products to adapt to evolving regulatory requirements and consumer preference, and to enter new markets quickly.
We have been able to consistently acquire new customers and successfully generate repeat business from returning customers when they need financing. We believe our customers are loyal to us because they are satisfied with our products and services. We acquire new customers from a variety of sources, including visits to our own websites, mobile sites or applications, and through direct marketing, affiliate marketing, lead providers and relationships with other lenders. We believe that the online convenience of our products and our 24/7 availability to accept applications with quick approval decisions are important to our customers.
Once a potential customer submits an application, we quickly provide a credit or purchase decision. If a loan or financing is approved, we or our lending partner typically fund the loan or financing the next business day or, in some cases, the same day. During the entire process, from application through payment, we provide access to our well-trained customer service team. All of our operations, from customer acquisition through collections, are structured to build customer satisfaction and loyalty, in the event that a customer has a need for our products in the future. We have developed a series of sophisticated proprietary scoring models to support our various products. We believe that these models are an integral component of our operations and allow us to complete a high volume of customer
transactions while actively managing risk and the related credit quality of our loan and finance receivable portfolios. We believe our successful application of these technological innovations differentiates our capabilities relative to competing platforms as evidenced by our history of strong growth and stable credit quality.
PRODUCTS AND SERVICES
Our online financing products and services provide customers with a deposit of funds to their bank account in exchange for a commitment to repay the amount deposited plus fees and/or interest. We originate, arrange, guarantee, purchase or purchase a participating interest in installment loans and line of credit accounts to consumers and small businesses. We have one reportable segment that includes all of our online financial services. Our loans and finance receivables generally have regular payments that amortize principal. Interest income is generally recognized on an effective, non-accelerated yield basis over the contractual term of the installment loan or estimated outstanding period of the draw on line of credit accounts.
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OUR MARKETS
We currently provide our services in the following countries:
Our internet websites and the information contained therein or connected thereto are not intended to be incorporated by reference into this Quarterly Report on Form 10-Q.
RECENT DEVELOPMENTS
On December 10, 2025, we entered into a merger agreement with Grasshopper Bancorp, Inc. (“Grasshopper”) under which we will acquire Grasshopper for an aggregate purchase price valued at approximately $369 million at signing to be paid in a combination of cash and newly issued shares. Under the terms of the merger agreement, Grasshopper will merge with and into us, with us continuing as the surviving corporation and, immediately following the merger, an interim national bank and wholly-owned subsidiary of ours will merge with and into Grasshopper Bank, a wholly-owned subsidiary of Grasshopper, with Grasshopper Bank continuing as the surviving bank. The merger agreement was unanimously approved by the Boards of Directors of each of the Company and Grasshopper. On February 2, 2026, Grasshopper held a special meeting of its stockholders in connection with the merger, at which the merger agreement was approved. The transaction remains subject to regulatory approvals from the Office of the Comptroller of the Currency and the Federal Reserve and other customary closing conditions, and is expected to close during the second half of 2026.
Founded in 2019, Grasshopper Bank is a leading client-first, full-service digital bank offering digital financial solutions for commercial and consumer customers, including fintech-focused Banking-as-a-Service and API banking platforms, commercial and Small Business Administration lending and consumer banking.
RECENT REGULATORY DEVELOPMENTS
Consumer Financial Protection Bureau
In October 2017, the Consumer Financial Protection Bureau (“CFPB”) issued its final rule entitled “Payday, Vehicle Title, and Certain High-Cost Installment Loans” (the “Small Dollar Rule”), which covers certain consumer loans that we offer. While the ability to repay provisions were rescinded in 2020, the payment provisions remain in effect. These provisions require that if a consumer has two consecutive failed payment attempts, the lender must obtain the consumer’s new and specific authorization to make further withdrawals from the consumer’s bank account. Additionally, lenders must provide certain notices to consumers before attempting a first payment withdrawal or an unusual withdrawal and after two consecutive failed withdrawal attempts. Following a series of constitutional challenges, the Supreme Court upheld the constitutionality of the funding structure of the CFPB and the Fifth Circuit upheld the Small Dollar Rule. On March 28, 2025, the CFPB issued a press release entitled “CFPB Offers Regulatory Relief for Small Loan Providers” indicating that the CFPB “will not prioritize enforcement or supervision actions with regard to any penalties or fines associated with the Payment Withdrawal provisions and the Payment Disclosure provisions once they become operative on March 30, 2025.” The CFPB
also indicated that it is contemplating issuing a notice of proposed rulemaking to narrow the scope of the Small Dollar Rule. If the CFPB elects to prioritize enforcement and we are not able to execute payment process and customer notification changes effectively because of unexpected complexities, costs or otherwise, we cannot guarantee that the Small Dollar Rule will not have a material adverse impact on our business, prospects, results of operations, financial condition and cash flows.
On March 30, 2023, the CFPB issued its final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses, and applies to small business loans that we offer. For loans covered by the small business lending rule, a “covered lender” will be required to collect and report on certain information pursuant to an application for credit. Section 1071 requires covered lenders to collect and report information the financial institution generates and information obtained from the applicant, including the applicant’s minority-owned business status, women-owned business status and LGBTQI+-owned status and the applicant’s principal owners’ ethnicity, race and sex, and expressly prohibits a financial institution from discouraging an applicant from responding to requests for applicant-provided data. On June 18, 2025, following various litigation challenges, the CFPB issued an interim final rule to extend the compliance deadlines by approximately one year. It further indicated its intent to initiate a new Section 1071 rulemaking and that it anticipated issuing a notice of proposed rulemaking as expeditiously as reasonably possible. On October 2, 2025, the CFPB published a final rule with the same extended compliance dates provided for in the June interim rule. On November 13, 2025, the CFPB issued a notice of proposed rulemaking to narrow the scope of the rule, including removing certain data points, and to extend the compliance date to January 1, 2028. Absent further court action, legislative action or action by the CFPB, including any further extension of the compliance date, the Company’s small business loan business will need to update its application process to appropriately collect, store and report data required by Section 1071’s implementing regulation. The Company will continue to monitor litigation, rulemaking and bills related to the rule.
European Union Pillar Two Directive
On December 15, 2022, the European Union (“EU”) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (“OECD”) Pillar Two Framework that was supported by over 130 countries worldwide. The EU effective dates are January 1, 2024, and January 1, 2025, for different aspects of the directive. A significant number of other countries are expected to also implement similar legislation. As of March 31, 2026, among the jurisdictions where the Company operates, only Brazil has enacted legislation adopting the Pillar Two Rules, specifically a Qualified Domestic Minimum Top-up Tax, effective in fiscal 2025. We do not expect the changes brought about by this directive to have a material impact on our consolidated financial statements.
In January 2026, the OECD released administrative guidance establishing a “Side-by-Side” safe harbor for eligible U.S.-headquartered multinational groups, effective for fiscal years beginning on or after January 1, 2026. If elected, this safe harbor generally reduces Pillar Two top-up tax exposure under the Income Inclusion Rule and Undertaxed Profits Rule to zero, while Qualified Domestic Minimum Top-up Taxes in jurisdictions where we operate may continue to apply. The Company continues to monitor and evaluate the “Side-by-Side” safe harbor and the adoption of the administrative guidance through legislation in our operating jurisdictions. We expect to leverage applicable safe harbor provisions beginning with our 2026 fiscal year once enacted in our operating jurisdictions.
One Big Beautiful Bill Act
On July 4, 2025, the “One Big Beautiful Bill Act” (the “OBBBA”) was enacted into law. The OBBBA’s various provisions include, among other provisions, accelerated tax deductions for qualified property and research expenditures. The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. We have evaluated the OBBBA and reflected its impact on the consolidated financial statements. We will continue to evaluate the full impact of these legislative changes as additional guidance becomes available.
RESULTS OF OPERATIONS
Highlights
Our financial results for the three-month period ended March 31, 2026, or the current quarter, are summarized below.
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Overview
The following tables reflect our results of operations for the periods indicated, both in dollars and as a percentage of total revenue (dollars in thousands, except per share data):
Three Months Ended March 31,
Loans and finance receivables revenue
Total Revenue
Earnings per common share - diluted
98.6
%
1.4
100.0
(39.6
(42.8
60.4
57.2
21.6
18.7
8.7
8.4
5.5
5.7
1.0
1.3
36.8
34.1
23.6
23.1
(10.7
(10.8
(0.1
Equity method investment income (loss)
12.8
12.2
2.5
2.4
10.4
9.8
Valuation of Loans and Finance Receivables
We carry our loans and finance receivables at fair value with changes in fair value recognized directly in earnings. We estimate the fair value of our loans and finance receivables primarily using internally-developed, discounted cash flow analyses to more accurately predict future payments. We adjust contractual cash flows for estimated losses, prepayments and servicing costs over the estimated duration of the underlying assets and discount the future cash flows using a rate of return that we believe a market participant would require. Model results may be adjusted by management if we do not believe the output reflects the fair value of the portfolio, as defined under GAAP. The models are updated at each measurement date to capture any changes in internal factors such as nature, term, volume, payment
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trends, remaining time to maturity, and portfolio mix, as well as changes in underwriting or observed trends expected to impact future performance. We have validated model performance by comparing past valuations with actual performance noted after each valuation.
In 2025 and the first three months of 2026, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, tariffs and other macroeconomic trends. In certain situations, management concluded that the probability of future charge-offs or prepayments was different than what we had experienced in the past and, therefore, altered those assumptions in our fair value models. We continue to utilize this approach and have adjusted these assumptions where appropriate. We also evaluate the discount rates used in our models on a quarterly basis and adjust when appropriate to be responsive to changes in the market and representative of what a market participant would use. As of March 31, 2026, we deemed the resulting fair value of our loans and finance receivables to be an appropriate market-based exit price that considers current market conditions.
NON-GAAP FINANCIAL MEASURES
In addition to the financial information prepared in conformity with generally accepted accounting principles (“GAAP”), we provide historical non-GAAP financial information. We present non-GAAP financial information because such measures are used by management in understanding the activities and business metrics of our operations. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our business that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business.
We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, our consolidated financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.
Adjusted Earnings Measures
We provide adjusted earnings and adjusted earnings per share, or, collectively, the Adjusted Earnings Measures, which are non-GAAP measures. We believe that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which provides a more complete understanding of our financial performance, competitive position and prospects for the future. We utilize, and also believe that investors utilize, the Adjusted Earnings Measures to assess operating performance, recognizing that such measures may highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, we believe that the Adjusted Earnings Measures are useful to management and investors in comparing our financial results during the periods shown without the effect of certain items that are not indicative of our core operating performance or results of operations.
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The following table provides reconciliations between net income and diluted earnings per share calculated in accordance with GAAP to the Adjusted Earnings Measures (in thousands, except per share data):
Adjustments:
Transaction-related costs(a)
2,650
(301
(120
Intangible asset amortization
1,250
2,014
496
452
Cumulative tax effect of adjustments
(1,971
(2,488
Adjusted earnings
101,932
80,739
Diluted earnings per share
Transaction-related costs
0.10
(0.01
0.05
0.07
0.33
0.29
0.02
(0.08
(0.09
Adjusted earnings per share
3.87
2.98
(a) In the first quarter of 2026, we recorded costs totaling $2.7 million ($2.0 million net of tax) related to the pending acquisition of Grasshopper.
Adjusted EBITDA
We provide Adjusted EBITDA, which is a non-GAAP measure that we define as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes, stock-based compensation expense and certain other items, as appropriate, that are not indicative of our core operating performance. We utilize, and also believe that investors utilize, Adjusted EBITDA to analyze operating performance and evaluate our ability to incur and service debt and our capacity for making capital expenditures. We believe Adjusted EBITDA is useful to management and investors in comparing our financial results during the periods shown without the effect of certain non-cash items and certain items that are not indicative of our core operating performance or results of operations. Adjusted EBITDA is also useful to investors to help assess our estimated enterprise value. The computation of Adjusted EBITDA, as presented below, may differ from the computation of similarly-titled measures provided by other companies (dollars in thousands):
Depreciation and amortization expenses
94,046
80,544
227,374
189,901
Adjusted EBITDA margin calculated as follows:
Adjusted EBITDA as a percentage of total revenue
26.0
25.5
25
Refer to footnotes in previous table for explanation of (a).
Combined Loans and Finance Receivables Measures
In addition to reporting loans and finance receivables balance information in accordance with GAAP (see Note 2 in the Notes to Consolidated Financial Statements included in this report), we have provided metrics on a combined basis. The Combined Loans and Finance Receivables Measures are non-GAAP measures that include both loans and finance receivables we own or have purchased and loans we guarantee, which are either GAAP items or disclosures required by GAAP. See “—Loan and Finance Receivable Balances” and “—Credit Performance of Loans and Finance Receivables” below for reconciliations between Company owned and purchased loans and finance receivables, gross, change in fair value and charge-offs (net of recoveries) calculated in accordance with GAAP to the Combined Loans and Finance Receivables Measures.
We believe these non-GAAP measures provide management and investors with important information needed to evaluate the magnitude of potential receivable losses and the opportunity for revenue performance of the loans and finance receivable portfolio on an aggregate basis. We also believe that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on our consolidated balance sheet since both revenue and cost of revenue are impacted by the aggregate amount of receivables we own and those we guarantee as reflected in our consolidated financial statements.
THREE MONTHS ENDED MARCH 31, 2026 COMPARED TO THREE MONTHS ENDED MARCH 31, 2025
Revenue and Net Revenue
Revenue increased $129.6 million, or 17.4%, to $875.1 million for the current quarter as compared to $745.5 million for the prior year quarter. The increase was driven by a 37.1% increase in revenue from our small business portfolio and a 3.5% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.
Net revenue for the current quarter was $529.0 million compared to $426.2 million for the prior year quarter. Our consolidated net revenue margin was 60.4% for the current quarter compared to 57.2% for the prior year quarter. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of net revenue for the current quarter.
The following table sets forth the components of revenue and net revenue, disaggregated by product, for the current quarter and the prior year quarter (dollars in thousands):
$ Change
% Change
Revenue by product:
14,982
3.5
112,904
37.1
127,886
17.4
1,715
16.9
129,601
Change in fair value
(26,824
Net revenue
102,777
24.1
Revenue by product (% to total):
50.9
57.8
47.7
40.8
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Revenue generated from the Company’s operations for the current quarter and the prior year quarter was as follows (in thousands):
Loan interest
600,783
486,057
Statement and draw fees on line of credit accounts
223,536
212,904
50,823
46,580
Loan and Finance Receivable Balances
The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $5,873.0 million and $4,569.8 million as of March 31, 2026 and 2025, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $5,098.5 million and $3,964.4 million as of March 31, 2026 and 2025, respectively. The fair value of the combined loan and finance receivables portfolio includes $20.9 million and $21.2 million with an outstanding principal balance of $14.8 million and $14.8 million of consumer loan balances that are guaranteed by us but not owned by us, which are not included in our consolidated financial statements as of March 31, 2026 and 2025, respectively.
The consumer portfolio balance was 30.3% of our combined loan and finance receivable portfolio balance at fair value as of March 31, 2026 compared to 35.7% as of March 31, 2025. Our small business portfolio of loans and finance receivables was 69.7% of our combined loan and finance receivable portfolio at fair value as of March 31, 2026 compared to 64.3% as of March 31, 2025. See “Non-GAAP Financial Measures—Combined Loans and Finance Receivables Measures” above for additional information related to combined loans and finance receivables.
The following table summarizes loan and finance receivable balances outstanding as of March 31, 2026 and 2025 (dollars in thousands):
Guaranteed
Company
by the
Owned(a)
Company(a)
Combined(b)
Consumer loans and finance receivables
Principal
14,806
1,452,170
14,813
1,341,581
Fair value
20,925
1,784,477
21,225
1,637,562
Fair value as a % of principal
122.7
141.3
122.9
121.8
143.3
122.1
Small business loans and finance receivables
112.2
112.0
Total loans and finance receivables
5,113,354
3,979,232
5,893,882
4,591,044
115.2
115.3
115.4
(a) GAAP measure. The loans and finance receivables balances guaranteed by us relate to loans originated by a third-party lender through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.
(b) Non-GAAP measure. See “Non-GAAP Financial Measures—Combined Loans and Finance Receivables Measures” above.
At March 31, 2026 and 2025, the ratio of fair value as a percentage of principal was 115.2% and 115.3%, respectively, on company owned loans and finance receivables and 115.3% and 115.4%, respectively, on combined loans and finance receivables. These ratios were relatively flat compared to the prior year. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of fair value ratios for the current quarter.
Average Amount Outstanding per Loan and Finance Receivable
The average amount outstanding per loan and finance receivable is calculated as the total combined loans and finance receivables, gross balance at the end of the period divided by the total number of combined loans and finance receivables outstanding at the end of the
period. The following table shows the average amount outstanding per loan and finance receivable by product at March 31, 2026 and 2025:
As of March 31,
Average amount outstanding per loan and finance receivable(a)
Consumer loans and finance receivables(b)
1,665
1,622
45,835
41,364
Total loans and finance receivables(b)
5,127
4,266
(a) The disclosure regarding the average amount per loan and finance receivable is statistical data that is not included in our consolidated financial statements.
(b) Includes loans guaranteed by us, which represent loans originated by a third-party lender through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.
The average amount outstanding per loan and finance receivable increased in the current quarter compared to the prior year quarter for our overall portfolio due to an increase in average amount outstanding per loan in our small business portfolio as well as a mix shift towards our small business portfolio, which carries a higher average amount outstanding per loan compared to our consumer portfolio.
Average Loan and Finance Receivable Origination
The average loan and finance receivable origination amount is calculated as the total amount of combined loans and finance receivables originated, renewed and purchased for the period divided by the total number of combined loans and finance receivables originated, renewed and purchased for the period. The following table shows the average loan and finance receivable origination amount by product for the current quarter compared to the prior year quarter:
Average loan and finance receivable origination amount(a)
Consumer loans and finance receivables(b)(c)
591
547
Small business loans and finance receivables(c)
16,384
16,173
2,180
1,721
(a) The disclosure regarding the average loan origination amount is statistical data that is not included in our consolidated financial statements.
(c) Represents the average amount of each incremental draw on line of credit accounts.
The average loan and finance receivable origination amount is smaller than the average amount outstanding per loan and finance receivable in the previous section as the former measure includes incremental draws on our line of credit accounts whereas the latter measure includes the entire outstanding receivable on our line of credit accounts.
The average loan and finance receivable origination amount increased to $2,180 during the current quarter from $1,721 during the prior year quarter, due primarily to a higher proportion of loans originated in the small business portfolio, the average size of which greatly exceeds the average size of loans originated in the consumer portfolio.
Credit Performance of Loans and Finance Receivables
We monitor the performance of our loans and finance receivables. Internal factors such as portfolio composition (e.g., interest rate, loan term, geography information, customer mix, credit quality) and performance (e.g., delinquency, loss trends, prepayment rates) are reviewed on a regular basis at various levels (e.g., product, vintage). We also weigh the impact of relevant, internal business decisions on the portfolio. External factors such as macroeconomic trends, financial market liquidity expectations, competitive landscape and legal/regulatory requirements are also reviewed on a regular basis.
The payment status of a customer, including the degree of any delinquency, is a significant factor in determining estimated charge-offs in the cash flow models that we use to determine fair value. The following table shows payment status on outstanding principal, interest and fees as of the end of each of the last five quarters (dollars in thousands):
First
Second
Third
Fourth
Quarter
Ending combined loans and finance receivables, including principal and accrued fees/interest outstanding:
Company owned
4,117,245
4,298,675
4,500,360
4,902,287
5,257,711
Guaranteed by the Company(a)
17,954
20,014
20,750
22,349
17,867
Ending combined loan and finance receivables balance(b)
4,135,199
4,318,689
4,521,110
4,924,636
5,275,578
> 30 days delinquent
318,356
305,583
327,387
332,164
388,264
> 30 days delinquency rate
7.7
7.1
7.2
6.7
7.4
(a) Represents loans originated by a third-party lender through the CSO program that we have not yet purchased, which are not included in our consolidated balance sheets.
Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of credit performance for the current quarter.
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Consumer Loans and Finance Receivables
The following table includes financial information for our consumer loans and finance receivables. Delinquency metrics include principal, interest and fees (dollars in thousands):
Consumer loans and finance receivables:
Consumer combined loan and finance receivable principal balance:
1,375,065
1,396,611
16,762
17,301
18,656
Total combined loan and finance receivable principal balance(b)
1,391,827
1,413,912
1,465,594
Consumer combined loan and finance receivable fair value balance:
1,668,336
1,694,839
23,777
24,372
26,148
Ending combined loan and finance receivable fair value balance(b)
1,692,113
1,719,211
1,790,617
Fair value as a % of principal(b)(c)
121.6
122.2
Consumer combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:
1,449,511
1,502,158
1,525,989
1,573,763
1,561,056
Ending combined loan and finance receivable balance(b)
1,467,465
1,522,172
1,546,739
1,596,112
1,578,923
Average consumer combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:
Company owned(d)
1,476,814
1,467,200
1,524,792
1,527,733
1,573,293
Guaranteed by the Company(a)(d)
20,700
18,495
20,881
20,562
19,696
Average combined loan and finance receivable balance(b)(d)
1,497,514
1,485,695
1,545,673
1,548,295
1,592,989
Installment loans as percentage of average combined loan and finance receivable balance
35.4
35.5
36.2
38.1
38.5
Line of credit accounts as percentage of average combined loan and finance receivable balance
64.6
64.5
63.8
61.9
61.5
428,311
443,413
445,565
(217,057
(215,393
(246,789
(225,915
(215,541
213,768
212,918
196,624
219,650
230,266
Net revenue margin
49.6
49.7
44.3
49.3
51.7
Combined loan and finance receivable originations and purchases
508,245
564,214
589,565
612,705
559,392
Delinquencies:
120,598
121,333
142,240
124,894
125,290
> 30 days delinquent as a % of combined loan and finance receivable balance(b)(c)
8.2
8.0
9.2
7.8
7.9
Charge-offs:
Charge-offs (net of recoveries)
227,785
215,004
249,545
247,598
227,637
Charge-offs (net of recoveries) as a % of average combined loan and finance receivable balance(b)(d)
15.2
14.5
16.1
16.0
14.3
(b) Non-GAAP measure.
(c) Determined using period-end balances.
(d) The average combined loan and finance receivable balance is the average of the month-end balances during the period.
Demand for our consumer loan products and services in the United States has historically been highest in the third and fourth quarters of each year, corresponding to the holiday season, and lowest in the first quarter of each year, corresponding to our customers’ receipt of income tax refunds. The ending balance, including principal and accrued fees/interest outstanding, of combined consumer loans and finance receivables at March 31, 2026 increased 7.6% to $1,578.9 million compared to $1,467.5 million at March 31, 2025, due primarily to originations outpacing repayments.
The percentage of loans greater than 30 days delinquent of 7.9% was slightly lower at March 31, 2026 compared to 8.2% at March 31, 2025, and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance decreased to 14.3% in the current quarter compared to 15.2% for the prior year quarter. These improvements were due primarily to a higher percentage of originations to returning customers, which typically default at a lower rate compared to new customers, and a minor mix shift toward
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loans and finance receivables with higher credit quality and lower yields, as compared to the prior year quarter. Compared to the prior sequential quarter ending December 31, 2025, the percentage of loans greater than 30 days delinquent remained relatively flat while charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance decreased, which is fairly consistent with our normal seasonal pattern.
Revenue related to our consumer loans and finance receivables was $445.8 million for the current quarter compared to $430.8 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio. The net revenue margin related to our consumer loans and finance receivables was 51.7% in the current quarter, which was slightly higher than the average net revenue margin in the prior four sequential quarters due primarily to slightly lower charge-offs (net of recoveries) and delinquencies.
The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 122.9% at March 31, 2026, which is slightly higher compared to 122.1% at March 31, 2025 and 122.2% at December 31, 2025 due primarily to the customer and product mix shifts discussed earlier in this section. Refer also to “Results of Operations—Valuation of Loans and Finance Receivables” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on loan valuation.
Small Business Loans and Finance Receivables
The following table includes financial information for our small business loans and finance receivables. Delinquency metrics include principal, interest, and fees, and only amounts that are past due (dollars in thousands):
Small business loans and finance receivables:
Total loan and finance receivable principal balance
2,766,048
2,948,290
Ending loan and finance receivable fair value balance
3,104,979
3,318,014
Fair value as a % of principal(a)
112.3
112.5
Ending loan and finance receivable balance, including principal and accrued fees/interest outstanding
2,667,734
2,796,517
2,974,371
3,328,524
3,696,655
Average loan and finance receivable balance(b)
2,591,661
2,734,474
2,882,684
3,157,860
3,547,257
48.9
48.5
47.4
46.1
50.3
51.1
51.5
52.6
53.9
326,266
348,310
383,015
(100,423
(105,163
(93,083
(109,568
(128,759
204,173
221,103
255,227
273,447
288,741
67.0
67.8
73.3
71.4
69.2
1,238,835
1,371,874
1,643,237
197,758
184,250
185,147
207,270
262,974
> 30 days delinquent as a % of loan balance(a)
6.6
6.2
122,551
127,876
128,266
144,477
162,957
Charge-offs (net of recoveries) as a % of average loan and finance receivable balance(b)
4.7
4.4
4.6
(a) Determined using period-end balances.
(b) The average loan and finance receivable balance is the average of the month-end balances during the period.
The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at March 31, 2026 increased 38.6% to $3,696.7 million compared to $2,667.7 million at March 31, 2025, due primarily to originations outpacing repayments.
The percentage of loans greater than 30 days delinquent of 7.1% was lower at March 31, 2026 compared to 7.4% at March 31, 2025 due to improvement in credit performance. Compared to the prior sequential quarter ending December 31, 2025, the percentage of loans greater than 30 days delinquent increased but remains within the range observed over the prior four years and consistent with our
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expectations for the portfolio. Charge-offs (net of recoveries) as a percentage of average loan balance of 4.6% during the current quarter were consistent with the prior four sequential quarters.
Revenue related to our small business loans and finance receivables was $417.5 million for the current quarter compared to $304.6 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio. The net revenue margin related to our small business loans and finance receivables was 69.2% for the current quarter, which is consistent with the prior four sequential quarters, which had an average net revenue margin of 69.9%, as credit performance and yields were steady.
The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.2% at March 31, 2026 compared to 112.0% at March 31, 2025 and 112.3% at December 31, 2025. The slight changes from March 31, 2025 and December 31, 2025 were due primarily to changes in delinquency discussed earlier in this section.
Total operating expenses increased $67.6 million, or 26.6%, to $321.9 million in the current quarter compared to $254.3 million in the prior year quarter.
Marketing expense increased to $189.4 million in the current quarter compared to $139.3 million in the prior year quarter due primarily to growth in the overall business with higher commissionable originations in our small business portfolio and higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products, partially offset by lower spend in certain channels and media as we optimize marketing efficiency.
Operations and technology expense increased to $75.8 million in the current quarter compared to $62.5 million in the prior year quarter, due primarily to higher variable costs, particularly underwriting costs, personnel costs and other selling expenses as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense increased slightly to 8.7% in the current year quarter from 8.4% in the prior year quarter due primarily to slightly higher underwriting costs.
General and administrative expense increased to $47.8 million in the current quarter compared to $42.5 million in the prior year quarter due primarily to higher personnel costs and $2.7 million in transaction-related costs associated with the acquisition of Grasshopper. As a percentage of revenue, general and administrative expense decreased to 5.5% in the current year quarter from 5.7% in the prior year quarter, as increased originations and revenues outpaced fixed costs.
Depreciation and amortization expense decreased $1.1 million or 11.5% compared to the prior year quarter driven primarily by certain intangible assets reaching the end of their amortizable lives between quarters, partially offset by general growth in the business and additional internally-developed software placed into service.
Nonoperating Items
Interest expense, net increased $13.5 million, or 16.8%, to $94.0 million in the current quarter compared to $80.5 million in the prior year quarter. The increase was due primarily to an increase of $1,000.1 million, or 27.2%, in the average amount of debt outstanding to $4,680.8 million during the current quarter from $3,680.7 million during the prior year quarter, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.18% during the current quarter from 8.91% during the prior year quarter resulting primarily from year-over-year decreases in benchmark rates.
Provision for Income Taxes
The effective tax rate of 19.3% in the current quarter was lower than the 19.9% rate recorded in the prior year quarter. The lower effective tax rate is primarily due to higher excess tax benefits on stock compensation due to stock price appreciation and interest income on a federal income tax refund in the current quarter, partially offset by increased interest expense on unrecognized tax benefits.
Net Income
Net income increased $18.2 million, or 24.9%, to $91.1 million during the current quarter compared to $72.9 million during the prior year quarter. The increase was due primarily to an increase in income from operations due to higher net revenue which outpaced increases in operating expenses as a percentage of revenue, partially offset by higher interest expense, which was the result of an increase in the average amount of debt outstanding.
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LIQUIDITY AND CAPITAL RESOURCES
Capital Funding Strategy
We seek to maintain a stable and flexible balance sheet to ensure that liquidity and funding are available to meet our business obligations. As of March 31, 2026, we had cash, cash equivalents, and restricted cash of $421.4 million, of which $325.2 million was restricted, compared to $407.9 million, of which $336.2 million was restricted, as of December 31, 2025. During the three months ended March 31, 2026, we increased the borrowing capacity of two consumer loan securitization facilities by a total of $125.0 million and increased the borrowing capacity of two small business loan securitization facilities by a total of $252.0 million. As of March 31, 2026, we had aggregate funding capacity of $654.3 million. Based on numerous stressed-case modeling scenarios, we believe we have sufficient liquidity to run our operations for the foreseeable future. Further, we have no recourse debt obligations scheduled to mature until December 2028. As part of our capital and liquidity management, we may from time to time acquire our outstanding debt securities, including through redemptions, tender offers, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws and in compliance with the indentures governing our outstanding debt securities, upon such terms and at such prices as we may determine.
Historically, we have generated significant cash flow through normal operating activities for funding both long-term and short-term needs. Our near-term liquidity is managed to ensure that adequate resources are available to fund our seasonal working capital growth, which is driven by demand for our loan and financing products. On December 6, 2023, we issued and sold $400.0 million in aggregate principal amount of 11.25% Senior Notes due 2028 and used the net proceeds, in part, to retire existing indebtedness, including the remaining principal amount outstanding under our 8.50% senior notes due 2024. On August 12, 2024, we issued and sold $500.0 million in aggregate principal amount of 9.125% senior notes due 2029 and used the net proceeds, in part, to retire existing indebtedness, including the remaining principal amount outstanding under our 8.50% senior notes due 2025.
We have a secured revolving credit facility (the “Credit Agreement”) that we utilize for general corporate purposes, which may include funding loan originations and providing liquidity for short-term working capital needs. On August 28, 2025, we amended the Credit Agreement to, among other changes, increase the total commitment amount from $665.0 million to $825.0 million, extend the maturity date from June 2026 to August 2029 and reduce the interest rate, as applicable, from the base rate plus 0.75% to the base rate plus 0.50% and from the SOFR rate plus 3.50% to the SOFR rate plus 3.25%. In addition to customary fees for a credit facility of this size and type, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the commitment, and ranges from 0.15% per annum to 0.50% per annum depending on usage. As of April 20, 2026, our available borrowings under the Credit Agreement were $293.6 million. We also utilize several loan securitization facilities and asset-backed notes to fund our growth, primarily in our near-prime consumer loan and small business loan portfolios, which provide funding capacity of $359.7 million as of April 20, 2026. We expect that our operating needs, including satisfying our obligations under our debt agreements and funding our working capital growth, will be satisfied by a combination of cash flows from operations, borrowings under the Credit Agreement, or any refinancing, replacement thereof or increase in borrowings thereunder, and securitization or sale of loans and finance receivables under our consumer and small business loan securitization facilities.
As of March 31, 2026, we were in compliance with all financial ratios and covenants set forth in our debt agreements. Unexpected changes in our financial condition or other unforeseen factors may result in our inability to obtain third-party financing or could increase our borrowing costs in the future. To the extent we experience short-term or long-term funding disruptions, we have the ability to adjust our volume of lending and financing to consumers and small businesses that would reduce cash outflow requirements while increasing cash inflows through repayments. Additional alternatives may include the securitization or sale of assets, increased borrowings under the Credit Agreement, or any refinancing or replacement thereof, and reductions in capital spending, which could be expected to generate additional liquidity.
Total stockholders’ equity was $1,401.8 million at March 31, 2026 compared to $1,336.7 million at December 31, 2025. The increase of stockholders’ equity was driven primarily by net income for the three months ended March 31, 2026 and, to a lesser extent, stock-based compensation expense, partially offset by repurchases of our outstanding common stock, which is discussed in more detail below. Our book value per share outstanding increased to $56.25 at March 31, 2026 from $54.08 at December 31, 2025, which was primarily driven by net income, partially offset by share repurchases.
On August 12, 2024, we announced the Board of Directors authorized a new share repurchase program totaling $300.0 million through December 31, 2025 (the “August 2024 Authorization”), which replaced the prior share repurchase authorization. On November 12, 2025, we announced the Board of Directors authorized a new share repurchase program totaling $400.0 million through June 30, 2027 (the “November 2025 Authorization”), which replaced the August 2024 Authorization, under which the Company had repurchased $238.9 million of common stock. As of March 31, 2026, the Company had repurchased $32.2 million of common stock under the November 2025 Authorization. Repurchases under our repurchase programs are made from time to time in accordance with applicable securities laws in the open market, through privately negotiated transactions or otherwise. The share repurchase programs do not obligate
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us to purchase any shares of our common stock. The November 2025 Authorization may be terminated, increased or decreased by the Board of Directors in its discretion at any time. During the three months ended March 31, 2026, we had $15.6 million in repurchases of common stock under our share repurchase program.
Cash
Our cash and cash equivalents are held primarily for working capital purposes and are used to fund a portion of our lending activities. From time to time, we use excess cash and cash equivalents to fund our lending activities. We do not enter into investments for trading or speculative purposes. Our policy is to invest cash in excess of our immediate working capital requirements in short-term investments, deposit accounts or other arrangements designed to preserve the principal balance and maintain adequate liquidity. Our excess cash may be invested primarily in overnight sweep accounts, money market instruments or similar arrangements that provide competitive returns consistent with our polices and market conditions.
Our restricted cash typically consists of funds held in accounts as reserves on certain debt facilities and as collateral for issuing bank partner transactions. We have no ability to draw on such funds as long as they remain restricted under the applicable arrangements but have the ability to use these funds to finance loan originations, subject to meeting borrowing base requirements. Our policy is to invest restricted cash held in debt facility related accounts, to the extent permitted by such debt facility, in investments designed to preserve the principal balance and provide liquidity. Accordingly, such cash is invested primarily in money market instruments that offer daily purchase and redemption and provide competitive returns consistent with our policies and market conditions.
Current Debt Facilities
The following table summarizes our debt facilities as of March 31, 2026 (dollars in thousands):
Revolving period end date
Weighted average interest rate(a)
Borrowing capacity
Principal outstanding
(b)
(a) The weighted average interest rate is determined based on the rates and principal balances on March 31, 2026. It does not include the impact of the amortization of deferred loan origination costs or debt discounts.
(b) We had an outstanding letter of credit under the Revolving line of credit of $0.4 million as of March 31, 2026.
Our ability to fully utilize the available capacity of our debt facilities may also be impacted by provisions that limit concentration risk and eligibility.
34
Cash Flows
Our cash flows and other key indicators of liquidity are summarized as follows (in thousands):
Total cash flows provided by operating activities
Cash flows from investing activities
Loans and finance receivables
(742,621
(496,715
Total cash flows used in investing activities
Cash flows provided by financing activities
Net cash provided by operating activities increased $83.4 million, or 21.3%, to $474.5 million in the current quarter from $391.1 million for the prior year quarter. The increase was driven primarily by additional interest and fee income from growth in the loan portfolio, partially offset by higher marketing expenses, variable operations and technology expenses and interest expense on higher outstanding debt balances to fund growth in the loan portfolio.
We believe cash flows from operations and available cash balances and borrowings under our securitization facilities and Credit Agreement, which may include increased borrowings under the Credit Agreement, any refinancing or replacement thereof, and additional securitization of consumer and small business loans, will be sufficient to fund our future operating liquidity needs, including to fund our working capital growth.
Net cash flows used in investing activities was $753.4 million for the current quarter compared to $509.6 million for the prior year quarter. This change was due primarily to loan originations outpacing repayments by a wider margin in the current quarter compared to the prior year quarter.
Net cash provided by financing activities for the current quarter was driven primarily by $317.2 million in net borrowings under our securitization facilities and $14.0 million in net borrowings under our revolving line of credit, partially offset by $39.6 million in share repurchases. Cash flows provided by financing activities for the prior year quarter were driven primarily by $195.4 million in net borrowings under our securitization facilities, partially offset by $85.5 million in share repurchases.
CRITICAL ACCOUNTING ESTIMATES
There have been no material changes to the information on critical accounting estimates described in our Annual Report on Form 10‑K for the year ended December 31, 2025.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
See Note 1 in the Notes to Consolidated Financial Statements included in this report for any discussion of recent accounting pronouncements that may be significant to Enova.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in our exposure to market risk since the most recent fiscal year end. Refer to our market risk disclosures in our Annual Report on Form 10‑K for the year ended December 31, 2025.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, or the “Exchange Act”) as of March 31, 2026 (the “Evaluation Date”). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective and provide reasonable assurance (i) to ensure that information required to be disclosed in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms; and (ii) to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.
Changes in Internal Control over Financial Reporting
There was no change in our internal control over financial reporting during the quarter ended March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
36
ITEM 1. LEGAL PROCEEDINGS
Information concerning legal proceedings is incorporated herein by reference to Note 7, “Commitments and Contingencies” to our consolidated financial statements (unaudited) of Part I, “Item 1 Financial Statements.”
ITEM 1A. RISK FACTORS
There have been no material changes from the Risk Factors described in Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities
The following table provides the information with respect to purchases made by us of shares of our common stock:
Period
Total Number of Shares Purchased(a)
Average Price Paid Per Share(b)
Total Number of Shares Purchased as Part of Publicly Announced Plan(c)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan(b)(c)(in thousands)
January 1 – January 31, 2026
4,575
158.40
3,146
382,914
February 1 – February 28, 2026
183,878
158.71
36,012
377,519
March 1 – March 31, 2026
70,722
136.89
367,837
259,175
152.75
109,880
(a) Includes shares withheld from employees as tax payments for shares issued under the Company’s stock-based compensation plans of 1,429 and 147,866 shares for the months of January and February, respectively. These shares were not acquired pursuant to a publicly announced repurchase plan.
(b) The Inflation Reduction Act of 2022 imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. During the three months ended March 31, 2026, the Company reflected the applicable excise tax in treasury stock as part of the cost basis of the stock repurchased and recorded a corresponding liability for the excise taxes payable in accounts payable and accrued expenses on the consolidated balance sheet. All dollar amounts presented exclude such excise taxes.
(c) On November 12, 2025, the Company announced the Board of Directors authorized a new share repurchase program totaling $400.0 million through June 30, 2027 (the “November 2025 Authorization”), which replaced the prior share repurchase authorization. All share repurchases made under the November 2025 Authorization were made through open market transactions. Our share repurchase program is subject to market conditions, does not obligate us to purchase any shares of our common stock, and may be terminated, increased or decreased by the Board of Directors in its discretion at any time.
We do not plan to declare cash dividends in the foreseeable future. Any declaration of dividends is at the discretion of our Board of Directors. Our agreements governing our existing debt contain restrictions which limit our ability to pay dividends.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
Insider Adoption or Termination of Trading Arrangements
During the quarter ended March 31, 2026, none of our directors or Section 16 officers adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408, except as follows:
On January 30, 2026, David Fisher, Executive Chairman of the Board of Directors, adopted a written plan for the sale of up to 256,498 shares of the Company’s common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. Any sales under the plan may not commence prior to May 21, 2026. The plan will expire on February 11, 2027, or on any earlier date on which all shares subject to the plan have been sold.
ITEM 6. EXHIBITS
Exhibit No.
Exhibit Description
3.1
Enova International, Inc. Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Form 10-Q filed on July 28, 2023)
3.2
Enova International, Inc. Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed on November 17, 2017)
10.1*
Amendment No. 4 to Credit Agreement and Reaffirmation of Performance Guaranty, dated as of January 9, 2026, by and among OnDeck Receivables 2022, LLC, the lenders from time to time parties thereto, BMO Capital Markets Corp., as Administrative Agent and Collateral Agent, and Enova International, Inc., as Performance Guarantor
10.2*
Third Amendment to Note Issuance and Purchase Agreement, dated as of March 30, 2026, by and among NetCredit Receivables 2022, LLC, Jefferies Funding LLC, as sole note purchaser, Citibank, N.A., as administrative agent for itself and the other Note Purchasers
10.3*
Second Amendment to Note Issuance and Purchase Agreement, dated as of March 30, 2026, by and among NetCredit LOC Receivables 2024, LLC, the Note Purchasers, Citibank, N.A., as collateral trustee, and Midtown Madison Management LLC, as Administrative Agent
10.4*
Amendment No. 12 to Fourth Amended and Restated Credit Agreement, dated as of March 30, 2026, by and among Receivable Assets of OnDeck, LLC, the Lenders party thereto, and Truist Bank, as Administrative Agent
10.5*
Amendment No. 2 to Credit Agreement, dated March 31, 2026, by and among HWC Receivables 2023, LLC, the lenders party thereto, Headway Capital, LLC, as originator, Enova International, Inc., as performance guarantor, BNP Paribas, as administrative agent for the Lenders and as collateral agent for the Secured Parties
10.6*
Form of Enova International, Inc. Fourth Amended and Restated 2014 Long-Term Incentive Plan Award Agreement for Grant of Restricted Stock Units
10.7*
Form of Enova International, Inc. Fourth Amended and Restated 2014 Long-Term Incentive Plan Award Agreement Special Grant of Nonqualified Stock Option with a Limited Stock Appreciation Right
31.1*
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*
Inline XBRL Taxonomy Extension Schema Document
101.CAL*
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*
Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB*
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*
Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
* Filed herewith.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: April 23, 2026
By:
/s/ Scott Cornelis
Scott Cornelis
Chief Financial Officer
(On behalf of the Registrant and as Principal Financial Officer)