Q4 2025 Enova International Inc Earnings Call

January 27, 2026

Speaker #1: Good day, and welcome to the Enova International fourth quarter and full year 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal the conference specialist by pressing the star key followed by zero.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad.

Speaker #1: To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Lindsay Savarese, Investor Relations for Enova.

Speaker #1: Please go

Speaker #1: Go ahead. Thank you, Operator, and good afternoon.

Lindsay Savarese: Thank you, Operator, and good afternoon, everyone. Enova released results for the Q4 and Full Year 2025 ended 31 December 2025, this afternoon after market close.If you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website at ir.enova.com. With me on today's call are David Fisher, Executive Chairman of the Board of Directors, Steve Cunningham, Chief Executive Officer, and Scott Cornelius, Chief Financial Officer. This call is being webcast and will be archived on the Investor Relations section of our website. Before I turn the call over to David, I'd like to note that today's discussion will contain forward-looking statements and, as such, is subject to risks and uncertainties.

Speaker #2: Everyone, Enova released results for 2025, ended December 31, 2025. This afternoon, after market close, if you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website at ir.enova.com.

Operator: If you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website at ir.enova.com. With me on today's call are David Fisher, Executive Chairman of the Board of Directors, Steve Cunningham, Chief Executive Officer, and Scott Cornelius, Chief Financial Officer. This call is being webcast and will be archived on the Investor Relations section of our website. Before I turn the call over to David, I'd like to note that today's discussion will contain forward-looking statements and, as such, is subject to risks and uncertainties. Actual results may differ materially as a result from various important risk factors, including those discussed in our earnings press release and in our annual report on Form 10-K, quarterly reports on Forms 10-Q, and current reports on Forms 8-K.

Speaker #2: With me on today's call are David Fisher, Executive Chairman of the Board of Directors; Steve Cunningham, Chief Financial Officer; and Scott Cornelis. This call is being webcast and will be archived on the Investor Relations section of our website.

Q4 2025 Enova International Inc Earnings Call

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Q4 2025 Enova International Inc Earnings Call

ENVA

Tuesday, January 27th, 2026 at 10:00 PM

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Speaker #2: Before I turn the call over to David, I'd like to note that today's discussion will contain forward-looking statements and, as such, is subject to risks and uncertainties.

Actual results may differ materially as a result from various important risk factors, including those discussed in our earnings press release and in our annual report on Form 10-K, quarterly reports on Forms 10-Q, and current reports on Forms 8-K.

Speaker #2: Actual results may differ materially as a result of various important risk factors, including those discussed in our earnings press release and in quarterly reports on Forms 10-Q, and current reports on Forms 8-K.

Speaker #2: Please note that any forward-looking statements that are made on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events.

Operator: Please note that any forward-looking statements that are made on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. In addition to U.S. GAAP reporting, Enova reports certain financial measures that do not conform to generally accepted accounting principles. We believe these non-GAAP measures enhance the understanding of our performance. Reconciliations between these GAAP and non-GAAP measures are included in the tables found in today's press release. As noted in our earnings release, we have posted supplemental financial information on the IR portion of our website. And with that, I'd like to turn the call over to David. Thanks, and good afternoon, everyone. I appreciate you joining our call today. Also with me today are Steve Cunningham and Scott Cornelius.

Please note that any forward-looking statements that are made on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. In addition to U.S. GAAP reporting, Enova reports certain financial measures that do not conform to generally accepted accounting principles. We believe these non-GAAP measures enhance the understanding of our performance. Reconciliations between these GAAP and non-GAAP measures are included in the tables found in today's press release. As noted in our earnings release, we have posted supplemental financial information on the IR portion of our website. And with that, I'd like to turn the call over to David.

Speaker #2: In addition to U.S. GAAP reporting, Enova reports certain financial measures that do not conform to generally accepted accounting principles. We believe these non-GAAP measures enhance the understanding of our performance.

Speaker #2: Reconciliations between these GAAP and non-GAAP measures are included in the tables found in today's press release. As noted in our earnings release, we have posted supplemental financial information on the IR portion of our website.

Speaker #2: And with that, I'd like to turn the call over to

Speaker #2: David. Thanks, and

David Fisher: Thanks, and good afternoon, everyone. I appreciate you joining our call today. Also with me today are Steve Cunningham and Scott Cornelius.

Speaker #3: Good afternoon, everyone. Thank you for joining our call today. Also with me today are Steve Cunningham and Scott Cornelis. As I'm sure most of you know, effective January 1st, Steve became CEO of Enova, and Scott became CFO as I transitioned to the Executive Chairman role.

Operator: As I'm sure most of you know, effective January 1st, Steve became CEO of Enova and Scott became CFO as I transitioned to the Executive Chairman role, as committed to remain as Executive Chair for at least two years. With the full support of the board, this move was thoroughly, thoughtfully, and deliberately planned over more than a year. Having worked closely with both Steve and Scott for many years, I'm confident that they are the right leaders to see Enova through its next phase of growth. The timing has worked out even better than we had hoped. As Steve and Scott will discuss in more detail, Q4 was another very strong quarter, wrapping up a record year for Enova.

As I'm sure most of you know, effective January 1st, Steve became CEO of Enova and Scott became CFO as I transitioned to the Executive Chairman role, as committed to remain as Executive Chair for at least two years. With the full support of the board, this move was thoroughly, thoughtfully, and deliberately planned over more than a year. Having worked closely with both Steve and Scott for many years, I'm confident that they are the right leaders to see Enova through its next phase of growth. The timing has worked out even better than we had hoped. As Steve and Scott will discuss in more detail, Q4 was another very strong quarter, wrapping up a record year for Enova.

Speaker #3: I've committed to remain as Exec Chair for at least two years. With the full support of the Board, this move was thoroughly, thoughtfully, and deliberately planned over more than a year. Having worked closely with both Steve and Scott for many years, I'm confident that they are the right leaders to see Enova through its next phase of growth.

Speaker #3: And the timing has worked out even better than we had hoped. As Steve and Scott will discuss in more detail, Q4 was another very strong quarter, wrapping up a record year for Enova.

Speaker #3: And as announced in December, with our pending acquisition of Grasshopper Bank, we believe we have found the perfect partner at the perfect time to take Enova to the next level by simplifying our regulatory structure, opening up additional markets for our consumer products, adding additional low-cost funding sources, and providing a platform for new product opportunities.

Operator: As announced in December with our pending acquisition of Grasshopper Bank, we believe we have found the perfect partner at the perfect time to take Enova to the next level by simplifying our regulatory structure, opening up additional markets for our consumer products, adding additional low-cost funding sources, and providing a platform for new product opportunities. When I first joined Enova, I never anticipated staying for more than a few years, but this role unexpectedly grew into the longest, most challenging, and most rewarding of my career. I unequivocally attribute that to the extraordinary people and the culture at Enova. Due in large part to that team, the future of Enova is bright. Steve and I share a common vision that our focused growth strategy will steer our path forward.

As announced in December with our pending acquisition of Grasshopper Bank, we believe we have found the perfect partner at the perfect time to take Enova to the next level by simplifying our regulatory structure, opening up additional markets for our consumer products, adding additional low-cost funding sources, and providing a platform for new product opportunities. When I first joined Enova, I never anticipated staying for more than a few years, but this role unexpectedly grew into the longest, most challenging, and most rewarding of my career. I unequivocally attribute that to the extraordinary people and the culture at Enova. Due in large part to that team, the future of Enova is bright. Steve and I share a common vision that our focused growth strategy will steer our path forward.

Speaker #3: When I first joined Enova, I never anticipated staying for more than a few years. But this role unexpectedly grew into the longest, most challenging, and most rewarding of my career.

Speaker #3: I unequivocally attribute that to the extraordinary people and the culture at Enova. And due in large part to that team, the future of Enova is bright.

Speaker #3: Steve and I share a common vision that our focused growth strategy will steer our path forward. We will continue to adapt and innovate, and remain committed to producing sustainable and profitable growth while meeting the needs of our customers and driving shareholder value.

Operator: We will continue to adapt, innovate, and remain committed to producing sustainable and profitable growth while meeting the needs of our customers and driving shareholder value. With that, I would like to turn the call over to Steve. Thank you, David. Good afternoon, everyone. I appreciate you joining our call today. Our Q4 results capped off another exceptional year for Enova. Strong originations growth and solid credit across our portfolio once again drove strong financial performance. For the full year 2025, originations grew 27%, leading to revenue growth of nearly 20%, which, when combined with stable credit and the significant operating leverage in our business model, drove Adjusted EPS growth of 42%.

We will continue to adapt, innovate, and remain committed to producing sustainable and profitable growth while meeting the needs of our customers and driving shareholder value. With that, I would like to turn the call over to Steve.

Speaker #3: With that, I would like to turn the call over to Steve.

Steve Cunningham: Thank you, David. Good afternoon, everyone. I appreciate you joining our call today. Our Q4 results capped off another exceptional year for Enova. Strong originations growth and solid credit across our portfolio once again drove strong financial performance. For the full year 2025, originations grew 27%, leading to revenue growth of nearly 20%, which, when combined with stable credit and the significant operating leverage in our business model, drove Adjusted EPS growth of 42%.

Speaker #4: Thank you, David. And good afternoon, everyone. I appreciate you joining our call today. Our fourth quarter results capped off another exceptional year for Enova.

Speaker #4: Strong originations growth and solid credit across our portfolio once again drove strong financial performance. For the full year 2025, originations grew 27%, leading to revenue growth of nearly 20%, which, when combined with stable credit and the significant operating leverage in our business model, drove adjusted EPS growth of 42%.

Speaker #4: 2025 was our second consecutive year of adjusted EPS growth in excess of 30%, demonstrating the resiliency of our balanced growth strategy and the ability of our experienced team to deliver consistent and differentiated performance by leveraging our diversified product offerings, flexible online-only model, and world-class risk management and technology.

Operator: 2025 was our second consecutive year of Adjusted EPS growth in excess of 30%, demonstrating the resiliency of our balanced growth strategy and the ability of our experienced team to deliver consistent and differentiated performance by leveraging our diversified product offerings, flexible online-only model, and world-class risk management and technology. Turning to the quarter, we're pleased to deliver Q4 results that were in line or better than our expectations. Q4 originations increased 32% year-over-year to $2.3 billion. As a result of the strong originations growth, our portfolio increased 23% year-over-year to a record $4.9 billion. Small business products represented 68% of our portfolio at the end of the year, while consumer accounted for 32%.

2025 was our second consecutive year of Adjusted EPS growth in excess of 30%, demonstrating the resiliency of our balanced growth strategy and the ability of our experienced team to deliver consistent and differentiated performance by leveraging our diversified product offerings, flexible online-only model, and world-class risk management and technology. Turning to the quarter, we're pleased to deliver Q4 results that were in line or better than our expectations. Q4 originations increased 32% year-over-year to $2.3 billion. As a result of the strong originations growth, our portfolio increased 23% year-over-year to a record $4.9 billion. Small business products represented 68% of our portfolio at the end of the year, while consumer accounted for 32%.

Speaker #4: Turning to the quarter, we're pleased to deliver fourth quarter results that were in line with or better than our expectations. Fourth quarter originations increased 32% year over year to $2.3 billion. With originations growth, our portfolio...

Speaker #4: increased 23% year over year to As a result of this strong a record $4.9 billion. Small business products represented 68% of our portfolio at the end of the year, while consumer accounted for 32%.

Speaker #4: Strong demand and solid credit performance enabled us to be more aggressive with our marketing during the quarter, as we leveraged our sophisticated technology and analytics to capture this demand at attractive unit economics.

Operator: Strong demand and solid credit performance enabled us to be more aggressive with our marketing during the quarter, as we leveraged our sophisticated technology and analytics to capture this demand at attractive unit economics. Marketing expense was 23% of our total revenue during Q4, driving record quarterly originations. We expect marketing spend to revert back to more typical levels, although we'll continue to opportunistically lean into marketing to meet demand with attractive unit economics. With strong quarterly portfolio growth, revenue increased to the top of our expected range, growing 15% year-over-year to $839 million in Q4. Profitability metrics grew even faster as Adjusted EPS increased 33%, driven by strong credit and our significant operating leverage. SMB revenue growth accelerated to 34% year-over-year to $383 million, and our consumer revenue increased 3% year-over-year to $446 million, both quarterly records.

Strong demand and solid credit performance enabled us to be more aggressive with our marketing during the quarter, as we leveraged our sophisticated technology and analytics to capture this demand at attractive unit economics. Marketing expense was 23% of our total revenue during Q4, driving record quarterly originations. We expect marketing spend to revert back to more typical levels, although we'll continue to opportunistically lean into marketing to meet demand with attractive unit economics. With strong quarterly portfolio growth, revenue increased to the top of our expected range, growing 15% year-over-year to $839 million in Q4. Profitability metrics grew even faster as Adjusted EPS increased 33%, driven by strong credit and our significant operating leverage. SMB revenue growth accelerated to 34% year-over-year to $383 million, and our consumer revenue increased 3% year-over-year to $446 million, both quarterly records.

Speaker #4: Marketing expense was 23% of our total revenue during the fourth quarter, driving record quarterly originations. We expect marketing spend to revert back to more typical levels, although we'll continue to opportunistically lean into marketing to meet demand with attractive unit economics.

Speaker #4: The strong quarterly portfolio growth, revenue increased to the top of our expected range, growing 15% year over year to $839 million in the fourth quarter.

Speaker #4: And profitability metrics grew even faster, as adjusted EPS increased 33%, driven by strong credit and our significant operating leverage. SMB revenue growth accelerated to 34% year over year to $383 million, and our consumer revenue increased 3% year over year to $446 million.

Speaker #4: Both quarterly records. In addition to our strong growth this quarter, our fourth quarter credit results also demonstrate that both our small business and consumer customers remain on solid footing.

Operator: In addition to our strong growth this quarter, our Q4 credit results also demonstrated that both our small business and consumer customers remain on solid footing. The consolidated net charge-off ratio for the Q4 of 8.3% was down both sequentially and compared to the Q4 of 2024. External data highlighted that the US economy ended 2025 on a good note. The Federal Reserve's recent Beige Book pointed to economic gains across much of the country. In addition, the unemployment rate ticked down to 4.4% in December, with recent unemployment claims data underscoring that the labor market remains relatively stable and resilient. Further, real wage growth continues to be positive, with average hourly earnings rising 3.8% year-over-year in December after rising 3.6% during November. Early reads indicate December consumer spending grew moderately and continues to support economic activity.

In addition to our strong growth this quarter, our Q4 credit results also demonstrated that both our small business and consumer customers remain on solid footing. The consolidated net charge-off ratio for the Q4 of 8.3% was down both sequentially and compared to the Q4 of 2024. External data highlighted that the US economy ended 2025 on a good note. The Federal Reserve's recent Beige Book pointed to economic gains across much of the country. In addition, the unemployment rate ticked down to 4.4% in December, with recent unemployment claims data underscoring that the labor market remains relatively stable and resilient. Further, real wage growth continues to be positive, with average hourly earnings rising 3.8% year-over-year in December after rising 3.6% during November. Early reads indicate December consumer spending grew moderately and continues to support economic activity.

Speaker #4: The consolidated net charge-off ratio for the fourth quarter of 8.3% was down both sequentially and compared to the fourth quarter of 2024. External data highlighted that the U.S. economy ended 2025 on a good note.

Speaker #4: The Federal Reserve's recent Beige Book pointed to economic gains across much of the country. In addition, the unemployment rate ticked down to 4.4% in December, with recent unemployment claims staying low, underscoring that the labor market remains relatively stable and resilient.

Speaker #4: Further, real wage growth continues to be positive, with average hourly earnings rising 3.8% year over year in December after rising 3.6% during November. And early reads indicate December consumer spending grew moderately and continues to support economic activity.

Speaker #4: Looking at our consumer business, this constructive economic backdrop supported the reacceleration of growth and improvement in credit metrics that we discussed last quarter. With the strong early default performance we were seeing at that time, we leaned into boosting consumer originations, which accelerated as we moved through the fourth quarter.

Operator: Looking at our consumer business, this constructive economic backdrop supported the re-acceleration of growth and improvement in credit metrics that we discussed last quarter. With the strong early default performance we were seeing at that time, we leaned into boosting consumer originations, which accelerated as we moved through Q4. As we expected, credit metrics for the consumer portfolio improved both sequentially and compared to the year-ago quarter. Turning to small business, our SMB business continues its string of outstanding performance. Our leading brand presence, scale, and competitive landscape again resulted in significant growth and remarkably stable credit performance. Q4 originations for SMB increased 20% sequentially and 48% year-over-year to $1.6 billion, marking the eighth consecutive quarter of year-over-year originations growth of 20% or more.

Looking at our consumer business, this constructive economic backdrop supported the re-acceleration of growth and improvement in credit metrics that we discussed last quarter. With the strong early default performance we were seeing at that time, we leaned into boosting consumer originations, which accelerated as we moved through Q4. As we expected, credit metrics for the consumer portfolio improved both sequentially and compared to the year-ago quarter. Turning to small business, our SMB business continues its string of outstanding performance. Our leading brand presence, scale, and competitive landscape again resulted in significant growth and remarkably stable credit performance. Q4 originations for SMB increased 20% sequentially and 48% year-over-year to $1.6 billion, marking the eighth consecutive quarter of year-over-year originations growth of 20% or more.

Speaker #4: And, as we expected, credit metrics for the consumer portfolio improved both sequentially and compared to the year-ago quarter. Turning to small business, our SMB business continues its string of outstanding performance.

Speaker #4: Our leading brand presence, scale, and competitive landscape credit performance again resulted in significant fourth quarter originations for SMB. Growth increased 20% sequentially, and 48% year over year, to $1.6 billion.

Speaker #4: Quarter of year-over-year originations, marking the eighth consecutive growth of 20% or more. Credit metrics for the small business portfolio continue to be very stable, as they have been for the past two years.

Operator: Credit metrics for the small business portfolio continue to be very stable as they had been for the past two years. Our internal and external data highlight that SMBs continue to express confidence in the economy and expect favorable operating conditions during 2026. In conjunction with OnDeck, we released the ninth iteration of our Small Business Cash Flow Trend Report, which offers key insights into the state of small businesses and highlights ongoing trends observed over the past year. Consistent with previous findings, the survey found that small businesses feel optimistic about future growth. Overall, growth expectations matched an all-time high, with 94% of small businesses projecting growth over the next 12 months. Nearly 75% of small business owners reported bypassing traditional banks in favor of alternative lenders like Enova. Of those that went to a traditional bank first, 46% of those reported being denied a loan.

Credit metrics for the small business portfolio continue to be very stable as they had been for the past two years. Our internal and external data highlight that SMBs continue to express confidence in the economy and expect favorable operating conditions during 2026. In conjunction with OnDeck, we released the ninth iteration of our Small Business Cash Flow Trend Report, which offers key insights into the state of small businesses and highlights ongoing trends observed over the past year. Consistent with previous findings, the survey found that small businesses feel optimistic about future growth. Overall, growth expectations matched an all-time high, with 94% of small businesses projecting growth over the next 12 months. Nearly 75% of small business owners reported bypassing traditional banks in favor of alternative lenders like Enova. Of those that went to a traditional bank first, 46% of those reported being denied a loan.

Speaker #4: Our internal and external data highlight that SMBs continue to express confidence in the economy and expect favorable operating conditions during 2026. In conjunction with Oculus, we released the ninth iteration of our Small Business Cash Flow Trend Report, which offers key insights into the state of small businesses and highlights ongoing trends observed over the past year.

Speaker #4: Consistent with previous findings, the survey found that small businesses feel optimistic about future growth. Overall, growth expectations matched an all-time high, with 94% of small businesses projecting growth over the next 12 months.

Speaker #4: Nearly 75% of small business owners reported bypassing traditional banks in favor of alternative lenders like Enova. Of those that went to a traditional bank first, 46% reported being denied a loan.

Speaker #4: External data also supports these findings, as the NFIB Small Business Optimism Index rose to 99.5 in December and remained above its 62-year average of 98.

Operator: External data also supports these findings as the NFIB Small Business Optimism Index rose to 99.5 in December and remained above its 62-year average of 98. NFIB's Chief Economist pointed out that while Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges, and an increase in capital investments. While these surveys and external economic data provide useful context, our proprietary data offers more real-time and granular views into trends in the operating environment and the conditions of our customers. This data allows us to react quickly and nimbly as the operating environment is changing. Our deep experience serving non-prime consumers and small businesses, meaningful diversification, powerful technology and analytics, and our disciplined unit economics approach have been key to our ability to navigate varying operating environments while generating consistently strong financial results.

External data also supports these findings as the NFIB Small Business Optimism Index rose to 99.5 in December and remained above its 62-year average of 98. NFIB's Chief Economist pointed out that while Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures, easing labor challenges, and an increase in capital investments. While these surveys and external economic data provide useful context, our proprietary data offers more real-time and granular views into trends in the operating environment and the conditions of our customers. This data allows us to react quickly and nimbly as the operating environment is changing. Our deep experience serving non-prime consumers and small businesses, meaningful diversification, powerful technology and analytics, and our disciplined unit economics approach have been key to our ability to navigate varying operating environments while generating consistently strong financial results.

Speaker #4: NFIB's Chief Economist pointed out that, while Main Street business owners remain concerned about taxes, they anticipate favorable economic conditions in 2026 due to waning cost pressures and easing labor challenges, as well as an increase in capital investments.

Speaker #4: While these surveys and external economic data provide useful context, our proprietary data offers more trends in the operating environment and the conditions of our customers.

Speaker #4: Real-time and granular views into this data allow us to react quickly and nimbly as the operating environment is changing. Our deep experience serving non-prime consumers and small businesses, meaningful diversification, powerful technology and analytics, and our disciplined unit economics approach have been key to our ability to navigate varying operating environments while generating consistently strong financial results.

Speaker #4: And as we have demonstrated for many years, we believe our business is resilient across a wide range of macroeconomic environments. Before I wrap up, I'd like to spend a few moments discussing our strategy and outlook for 2026.

Operator: As we've demonstrated for many years, we believe our business is resilient across a wide range of macroeconomic environments. Before I wrap up, I'd like to spend a few moments discussing our strategy and outlook for 2026. We've demonstrated a long track record of consistency between stated priorities and execution, and we remain committed to this approach. Our balanced growth strategy works, and we expect to generate sustainable and profitable growth while delivering on our commitment to driving long-term shareholder value and on our mission of helping hardworking people get access to fast, trustworthy credit. Another key focus for 2026 will be closing the acquisition of Grasshopper Bank that we announced last month. We're excited about this powerful combination.

As we've demonstrated for many years, we believe our business is resilient across a wide range of macroeconomic environments. Before I wrap up, I'd like to spend a few moments discussing our strategy and outlook for 2026. We've demonstrated a long track record of consistency between stated priorities and execution, and we remain committed to this approach. Our balanced growth strategy works, and we expect to generate sustainable and profitable growth while delivering on our commitment to driving long-term shareholder value and on our mission of helping hardworking people get access to fast, trustworthy credit. Another key focus for 2026 will be closing the acquisition of Grasshopper Bank that we announced last month. We're excited about this powerful combination.

Speaker #4: We've demonstrated a long track record of consistency between stated priorities and execution, and we remain committed to this approach. Our balanced growth strategy works, and we expect to generate sustainable and profitable growth while delivering shareholder value and on our commitment to driving our long-term mission of helping hardworking people get access to fast, trustworthy credit.

Speaker #4: Another key focus for 2026 will be closing the acquisition of Grasshopper Bank that we announced last month. We're excited about this powerful combination. By uniting Enova's sophisticated online lending platform with Grasshopper's national charter and deposit-gathering capabilities, we'll be able to expand access to more consumers and small businesses, who've been traditionally underserved by banks.

Operator: By uniting Enova's sophisticated online lending platform with Grasshopper's national charter and deposit-gathering capabilities, we'll be able to expand access to more consumers and small businesses who've been traditionally underserved by banks. In addition, this combination simplifies our product and operational model under a national bank charter, providing significant opportunities to accelerate the growth of our existing products with an enhanced ability to serve our customers in more states and an ability to expand into new complementary products. Since our announcement, the energy and excitement from the teams for both companies have been tremendous, as together we recognize the opportunities in our complementary capabilities, cultural alignment, and significant synergies.

By uniting Enova's sophisticated online lending platform with Grasshopper's national charter and deposit-gathering capabilities, we'll be able to expand access to more consumers and small businesses who've been traditionally underserved by banks. In addition, this combination simplifies our product and operational model under a national bank charter, providing significant opportunities to accelerate the growth of our existing products with an enhanced ability to serve our customers in more states and an ability to expand into new complementary products. Since our announcement, the energy and excitement from the teams for both companies have been tremendous, as together we recognize the opportunities in our complementary capabilities, cultural alignment, and significant synergies.

Speaker #4: In addition, this combination simplifies our product and operational model under a national bank charter, providing significant opportunities to accelerate the growth of our existing products with an enhanced ability to serve our customers in more states and an ability to expand into new complementary products.

Speaker #4: Since our announcement, the energy and excitement from the teams for both companies have been tremendous. As in our complementary capabilities, together we recognize the opportunities, cultural alignment, and significant synergies. As a reminder, we expect net synergies related to the transaction to increase adjusted net income by $125 million to $220 million annually within the first two years post-closing.

Operator: As a reminder, we expect net synergies related to the transaction to increase adjusted net income by $125 million to 220 million annually within the first two years post-closing, driving adjusted EPS accretion of more than 25% once the synergies are fully realized. We filed our regulatory applications earlier this month seeking approval from the Federal Reserve and the OCC, and we continue to make great progress on integration planning in anticipation of closing during the second half of 2026. Overall, we're pleased to end the year with another strong quarter of solid revenue and profit growth. We have considerable momentum heading into 2026, and while it's still very early in the year, we're off to a great start with solid originations growth across our businesses.

As a reminder, we expect net synergies related to the transaction to increase adjusted net income by $125 million to 220 million annually within the first two years post-closing, driving adjusted EPS accretion of more than 25% once the synergies are fully realized. We filed our regulatory applications earlier this month seeking approval from the Federal Reserve and the OCC, and we continue to make great progress on integration planning in anticipation of closing during the second half of 2026. Overall, we're pleased to end the year with another strong quarter of solid revenue and profit growth. We have considerable momentum heading into 2026, and while it's still very early in the year, we're off to a great start with solid originations growth across our businesses.

Speaker #4: Driving adjusted EPS accretion of more than 25% once the synergies are fully realized. We filed a regulatory application earlier this month seeking approval from the Federal Reserve and the OCC, and we continue to make great progress on integration planning, in anticipation of closing during the second half of 2026.

Speaker #4: Overall, we're pleased to end the year with another strong quarter of solid revenue and profit growth. We have considerable momentum heading into 2026, and while it's still very early in the year, we're off to a great start with solid originations growth across our businesses.

Speaker #4: As Scott will discuss in more detail, we're seeing today and we expect 2026 to be another year of significant origination, revenue, and adjusted EPS growth.

Operator: As Scott will discuss in more detail, and based on what we're seeing today, we expect 2026 to be another year of significant origination revenue and adjusted EPS growth. Before turning the call over to Scott, I'd like to sincerely thank the entire Enova team for all their hard work and dedication. You all are the force behind our success. We're thrilled to celebrate our 13-year streak on Computerworld's 2026 Best Places to Work in IT list, reflecting the creativity, collaboration, and passion that fuel our technology teams. We're looking forward to another great year ahead. Thank you. And with that, I'd like to turn the call over to Scott Cornelius, our CFO, who will discuss our financial results and outlook in more detail. And following Scott's remarks, we'll be happy to answer any questions you may have. Scott. Thank you, Steve, and good afternoon, everyone.

As Scott will discuss in more detail, and based on what we're seeing today, we expect 2026 to be another year of significant origination revenue and adjusted EPS growth. Before turning the call over to Scott, I'd like to sincerely thank the entire Enova team for all their hard work and dedication. You all are the force behind our success. We're thrilled to celebrate our 13-year streak on Computerworld's 2026 Best Places to Work in IT list, reflecting the creativity, collaboration, and passion that fuel our technology teams. We're looking forward to another great year ahead. Thank you. And with that, I'd like to turn the call over to Scott Cornelius, our CFO, who will discuss our financial results and outlook in more detail. And following Scott's remarks, we'll be happy to answer any questions you may have. Scott.

Speaker #4: Before turning the call over to Scott, I'd like to sincerely thank the entire Enova team for all their hard work and dedication. You all are the force behind our success.

Speaker #4: We're thrilled to celebrate our 13-year streak on Computerworld's 2026 Best Places to Work in IT list, reflecting the creativity, collaboration, and passion that fuel our technology teams.

Speaker #4: We're looking forward to another great year ahead. Thank you. And with that, I'd like to turn the call over to Scott Cornelis, our CFO, who will discuss our financial results and outlook in more detail. Following Scott's remarks, we'll be happy to answer any questions you may have.

Speaker #4: Scott.

Scott Cornelis: Thank you, Steve, and good afternoon, everyone.We're pleased to close 2025 with solid Q4 financial results that once again met or exceeded our expectations. Our strong financial performance in the Q4 and the full year 2025 continues to demonstrate how the powerful combination of our diversified product offerings, scalable operating model, world-class risk management capabilities, and balance sheet flexibility allow us to consistently deliver strong top and bottom-line results. Turning to our Q4 results, total company revenue of $839 million increased 15% from Q4 2024 at the top end of our expectations as total company combined loan and finance receivable balances on an amortized basis increased 23% from the end of Q4 2024. Total company originations during the Q4 rose 32% from Q4 2024 to $2.3 billion.

Speaker #2: Thank you,

Speaker #2: Steve, and good afternoon, everyone. We're pleased to close 2025 with solid fourth-quarter financial results that once again met or exceeded our expectations. Our strong financial performance in the fourth quarter and the full year 2025 continues to demonstrate how the powerful combination of our diversified product offerings, scalable operating model, world-class risk management capabilities, and balance sheet flexibility allow us to consistently deliver strong top- and bottom-line results.

Operator: We're pleased to close 2025 with solid Q4 financial results that once again met or exceeded our expectations. Our strong financial performance in the Q4 and the full year 2025 continues to demonstrate how the powerful combination of our diversified product offerings, scalable operating model, world-class risk management capabilities, and balance sheet flexibility allow us to consistently deliver strong top and bottom-line results. Turning to our Q4 results, total company revenue of $839 million increased 15% from Q4 2024 at the top end of our expectations as total company combined loan and finance receivable balances on an amortized basis increased 23% from the end of Q4 2024. Total company originations during the Q4 rose 32% from Q4 2024 to $2.3 billion.

Speaker #2: Turning to our fourth-quarter results, total company revenue of $839 million increased 15% from the fourth quarter of 2024 at the top end of our expectations, as total company combined loan and finance receivable balances on an amortized basis increased 23% from the end of the fourth quarter of 2024.

Speaker #2: Total company originations during the fourth quarter rose 32% from the fourth quarter of 2024 to $2.3 billion. Revenue from small business lending increased 34% from the fourth quarter of 2024 to $383 million, as small business receivables on an amortized basis ended the quarter at $3.3 billion, or 34% higher than the end of the fourth quarter of 2024.

Operator: Revenue from small business lending increased 34% from Q4 2024 to $383 million as small business receivables on an amortized basis ended the quarter at $3.3 billion, or 34% higher than the end of Q4 2024. Small business originations rose 48% year-over-year to $1.6 billion. Revenue from our consumer businesses increased approximately 3% from Q4 2024 to $446 million as consumer receivables on an amortized basis ended the quarter at $1.6 billion, or approximately 6% higher than the end of Q4 2024. Consumer originations grew 2% from Q4 2024 to $613 million. As Steve mentioned earlier, we successfully re-accelerated our consumer originations as we moved through the quarter, particularly in December, thanks to strong demand and credit.

Revenue from small business lending increased 34% from Q4 2024 to $383 million as small business receivables on an amortized basis ended the quarter at $3.3 billion, or 34% higher than the end of Q4 2024. Small business originations rose 48% year-over-year to $1.6 billion. Revenue from our consumer businesses increased approximately 3% from Q4 2024 to $446 million as consumer receivables on an amortized basis ended the quarter at $1.6 billion, or approximately 6% higher than the end of Q4 2024. Consumer originations grew 2% from Q4 2024 to $613 million. As Steve mentioned earlier, we successfully re-accelerated our consumer originations as we moved through the quarter, particularly in December, thanks to strong demand and credit.

Speaker #2: Small business originations rose 48% year over year to $1.6 billion. Revenue from our consumer businesses increased approximately 3% from the fourth quarter of 2024 to $446 million, as consumer receivables on an amortized basis ended the fourth quarter at $1.6 billion, or approximately 6% higher than the end of the fourth quarter of 2024.

Speaker #2: Consumer originations grew 2% from the fourth quarter of 2024 to $613 million. As Steve mentioned earlier, our consumer originations, as we successfully re-accelerated, moved through the quarter, particularly in December, thanks to strong demand and credit.

Speaker #2: For the first quarter of 2026, we expect total company revenue to be flat to slightly higher sequentially. This expectation will depend on the level, timing, and mix of originations growth during the quarter.

Operator: For Q1 of 2026, we expect total company revenue to be flat to slightly higher sequentially. This expectation will depend on the level, timing, and mix of originations growth during the quarter. Now turning to credit, which is the most significant driver of net revenue and portfolio fair value. The consolidated net revenue margin of 60% for Q4 was also at the higher end of our expected range and reflects continued strong credit performance across our portfolios. The consolidated net charge-off ratio in Q4 declined 60 basis points from Q4 a year ago, to 8.3%. As we expected, the consumer net charge-off ratio improved to 16%, which was flat sequentially and compared to the year-over-year quarter.

For Q1 of 2026, we expect total company revenue to be flat to slightly higher sequentially. This expectation will depend on the level, timing, and mix of originations growth during the quarter. Now turning to credit, which is the most significant driver of net revenue and portfolio fair value. The consolidated net revenue margin of 60% for Q4 was also at the higher end of our expected range and reflects continued strong credit performance across our portfolios. The consolidated net charge-off ratio in Q4 declined 60 basis points from Q4 a year ago, to 8.3%. As we expected, the consumer net charge-off ratio improved to 16%, which was flat sequentially and compared to the year-over-year quarter.

Speaker #2: Now, turning to credit, which is the most significant driver of net revenue and portfolio fair value. The consolidated net revenue margin of 60% for the fourth quarter was also at the higher end of our expected range and reflects continued strong credit performance across our portfolios.

Speaker #2: The consolidated net charge-off ratio in the fourth quarter declined 60 basis points from the fourth quarter a year ago to 8.3%. As we expected, the consumer net charge-off ratio improved to 16%, which was flat sequentially and compared to the year-over-year quarter.

Operator: The small business net charge-off ratio was 4.6%, which was within our expected range and, as Steve noted, has been remarkably stable over the past two years. Expectations for our future credit performance remain solid, as reflected by sequential and year-over-year stability or improvement in the 30-plus-day delinquency rates and fair value premiums for the consolidated consumer and small business portfolios. The consolidated 30-plus-day delinquency ratio at the end of Q4 declined 70 basis points from the end of Q4 a year ago to 6.7%, and the consolidated fair value premium of 115% remains stable and consistent with levels we have reported over the past two years.

The small business net charge-off ratio was 4.6%, which was within our expected range and, as Steve noted, has been remarkably stable over the past two years. Expectations for our future credit performance remain solid, as reflected by sequential and year-over-year stability or improvement in the 30-plus-day delinquency rates and fair value premiums for the consolidated consumer and small business portfolios. The consolidated 30-plus-day delinquency ratio at the end of Q4 declined 70 basis points from the end of Q4 a year ago to 6.7%, and the consolidated fair value premium of 115% remains stable and consistent with levels we have reported over the past two years.

Speaker #2: Net charge-off ratio was 4.6%, which was within our expected range and, as Steve noted, has been remarkably stable over the past two years. Expectations for our future credit performance remain solid, as reflected by sequential and year-over-year 30-plus-day delinquency rates and fair value premiums for the consolidated consumer and small business portfolios.

Speaker #2: The consolidated 30-plus-day delinquency ratio at the end of the fourth quarter declined 70 basis points from the end of the fourth quarter a year ago to 6.7%.

Speaker #2: And the consolidated fair value premium of 115% remained stable and consistent with levels we have reported over the past two years. Looking ahead, we expect total company net revenue margin for the first quarter of 2026 to be between 55% and 60%.

Operator: Looking ahead, we expect the total company net revenue margin for Q1 2026 to be between 55% to 60%, as the impact of lower consolidated originations from our typical consumer seasonality is offset by the sequential improvement in the consolidated net charge-off rate we typically see in Q1. This expectation will depend upon portfolio payment performance and the level, timing, and mix of originations growth during Q1. Now turning to expenses. Total operating expenses for Q4, including marketing, were 36% of revenue compared to 34% of revenue in Q4 2024. As Steve noted, we leaned into our efficient marketing spend to meet demand with strong unit economics, resulting in record originations growth. Q4 marketing increased to $192 million, or 23% of revenue, compared to $151 million, or 21% of revenue in Q4 2024.

Looking ahead, we expect the total company net revenue margin for Q1 2026 to be between 55% to 60%, as the impact of lower consolidated originations from our typical consumer seasonality is offset by the sequential improvement in the consolidated net charge-off rate we typically see in Q1. This expectation will depend upon portfolio payment performance and the level, timing, and mix of originations growth during Q1. Now turning to expenses. Total operating expenses for Q4, including marketing, were 36% of revenue compared to 34% of revenue in Q4 2024. As Steve noted, we leaned into our efficient marketing spend to meet demand with strong unit economics, resulting in record originations growth. Q4 marketing increased to $192 million, or 23% of revenue, compared to $151 million, or 21% of revenue in Q4 2024.

Speaker #2: As the impact of lower consolidated originations from our typical consumer seasonality is offset by the sequential improvement in the consolidated net charge-off rate we typically see in the first quarter.

Speaker #2: This expectation will depend upon portfolio payment performance and the level, timing, and mix of originations growth during the first quarter. Now, turning to expenses.

Speaker #2: Total operating expenses for the fourth quarter, including marketing, were 36% of revenue, compared to 34% of revenue in the fourth quarter of 2024. As Steve noted, we leaned into our efficient marketing spend to meet demand with strong unit economics, resulting in record originations growth.

Speaker #2: The fourth quarter marketing increased to $192 million, or 23% of revenue, compared to $151 million, or 21% of revenue, in the fourth quarter of 2024.

Speaker #2: With the seasonality we typically experience during the first quarter of the year, we expect marketing expenses as a percentage of revenue to range in the upper teens for the first quarter.

Operator: With the seasonality we typically experience during Q1 of the year, we expect marketing expenses as a percentage of revenue to range in the upper teens for Q1 and will depend upon the growth and mix of originations. Operations and technology expenses for Q4 increased to $68 million, or 8% of revenue, compared to $58 million, or 8% of revenue in Q4 of 2024, driven by growth in receivables and originations over the past year. Given the significant variable component of this expense category, sequential increases in O&T costs should be expected in an environment where originations and receivables are growing and should be around 8% of total revenue. Our fixed costs continue to scale as we focus on operating efficiencies and thoughtful expense management.

With the seasonality we typically experience during Q1 of the year, we expect marketing expenses as a percentage of revenue to range in the upper teens for Q1 and will depend upon the growth and mix of originations. Operations and technology expenses for Q4 increased to $68 million, or 8% of revenue, compared to $58 million, or 8% of revenue in Q4 of 2024, driven by growth in receivables and originations over the past year. Given the significant variable component of this expense category, sequential increases in O&T costs should be expected in an environment where originations and receivables are growing and should be around 8% of total revenue. Our fixed costs continue to scale as we focus on operating efficiencies and thoughtful expense management.

Speaker #2: And we'll depend upon the growth and mix of originations. Operations and technology expenses for the fourth quarter increased to $68 million, or 8% of revenue, compared to $58 million, or 8% of revenue, in the fourth quarter of 2024, driven by growth in receivables and originations over the past year.

Speaker #2: Given the significant variable component of this expense category, sequential increases in O&T costs should be expected in an environment where originations and receivables are growing, and should be around 8% of total revenue.

Speaker #2: Our fixed costs continue to scale as we focus on operating efficiencies and thoughtful expense management. General and administrative expenses for the fourth quarter were $47 million, or 5.6% of revenue, compared to $38 million, or 5.2% of revenue, in the fourth quarter of 2024.

Operator: General and administrative expenses for Q4 were $47 million, or 5.6% of revenue, compared to $38 million, or 5.2% of revenue in Q4 of 2024. The current quarter includes $6.7 million of one-time deal-related expenses associated with the pending Grasshopper acquisition. Excluding these items, G&A expenses were $41 million, or 4.8% of revenue, reflecting continued operating leverage and disciplined expense management. While there may be slight variations from quarter to quarter, we expect G&A expenses in the near term will be between 5% and 5.5% of total revenue, excluding any one-time costs. Our balance sheet and liquidity position remain strong and give us financial flexibility to successfully navigate a range of operating environments while delivering on our commitment to drive long-term shareholder value through continued investment in our business and disciplined capital allocation.

General and administrative expenses for Q4 were $47 million, or 5.6% of revenue, compared to $38 million, or 5.2% of revenue in Q4 of 2024. The current quarter includes $6.7 million of one-time deal-related expenses associated with the pending Grasshopper acquisition. Excluding these items, G&A expenses were $41 million, or 4.8% of revenue, reflecting continued operating leverage and disciplined expense management. While there may be slight variations from quarter to quarter, we expect G&A expenses in the near term will be between 5% and 5.5% of total revenue, excluding any one-time costs. Our balance sheet and liquidity position remain strong and give us financial flexibility to successfully navigate a range of operating environments while delivering on our commitment to drive long-term shareholder value through continued investment in our business and disciplined capital allocation.

Speaker #2: The current quarter includes $6.7 million of one-time deal-related expenses associated with the pending Grasshopper acquisition. Excluding these items, G&A expenses were $41 million, or 4.8% of revenue, reflecting continued operating leverage and disciplined expense management.

Speaker #2: While there may be slight variations from quarter to quarter, we expect G&A expenses in the near term will be between 5% and 5.5% of total revenue, excluding any one-time costs.

Speaker #2: Our balance sheet and liquidity position remain strong and give us financial flexibility to successfully navigate a range of operating environments while delivering on our commitment to drive long-term investment in our business and shareholder value through continued disciplined capital allocation.

Speaker #2: During the fourth quarter, we acquired approximately 278,000 shares at a cost of $35 million, and we started 2026 with share repurchase capacity of approximately $106 million available under our senior note covenants.

Operator: During Q4, we acquired approximately 278,000 shares at a cost of $35 million, and we started 2026 with share repurchase capacity of approximately $106 million available under our senior note covenants. We were pleased to see the improvement in our valuation during 2025, though we believe there remains additional upside given our track record of consistent growth and earnings, our expectations for 2026, and the significant future opportunities associated with the Grasshopper acquisition. With that in mind, we will continue stock repurchases opportunistically while ensuring we are well prepared to close the Grasshopper Bank acquisition and transition to a bank holding company later this year. We ended Q4 with approximately $1.1 billion of liquidity, including $422 million of cash and marketable securities and $649 million of available capacity on our debt facilities, providing us with flexibility to support our strategic objectives.

During Q4, we acquired approximately 278,000 shares at a cost of $35 million, and we started 2026 with share repurchase capacity of approximately $106 million available under our senior note covenants. We were pleased to see the improvement in our valuation during 2025, though we believe there remains additional upside given our track record of consistent growth and earnings, our expectations for 2026, and the significant future opportunities associated with the Grasshopper acquisition. With that in mind, we will continue stock repurchases opportunistically while ensuring we are well prepared to close the Grasshopper Bank acquisition and transition to a bank holding company later this year. We ended Q4 with approximately $1.1 billion of liquidity, including $422 million of cash and marketable securities and $649 million of available capacity on our debt facilities, providing us with flexibility to support our strategic objectives.

Speaker #2: We were pleased to see the improvement in our valuation during 2025, though we believe there remains additional upside given our track record of consistent growth and earnings; our expectations for 2026; and the significant future opportunities associated with the Grasshopper acquisition.

Speaker #2: With that in mind, we will continue stock repurchases opportunistically, while ensuring we are well-prepared to close the Grasshopper Bank acquisition and transition to a bank holding company later this year.

Speaker #2: We ended the fourth quarter with approximately $1.1 billion of liquidity, including $422 million of cash and marketable securities, and $649 million of available capacity on our debt facilities, providing us with flexibility to support our strategic objectives.

Speaker #2: Our cost of funds for the fourth quarter was 8.3%, down from 8.6% in the third quarter, reflecting strong execution on recent financing, lower SOFR rates, and transactions.

Operator: Our cost of funds for Q4 was 8.3%, down from 8.6% in Q3, reflecting lower SOFR rates and strong execution on recent financing transactions. Even with no additional rate cuts by the Fed, we expect some reduction in our cost of funds during 2026, but the level will depend upon credit spreads on new financing transactions, our funding mix, and the level, timing, and mix of originations growth. Our effective tax rate for Q4 was 20%. The sequential decline was driven by favorable state changes, a decrease in our uncertain tax position reserve and related interest, and tax benefits resulting from share price increases on stock options exercised during Q4. While there may be variations from quarter to quarter, we expect our normalized annual effective tax rate to remain in the mid-20% range. Finally, we continue to deliver solid profitability this quarter.

Our cost of funds for Q4 was 8.3%, down from 8.6% in Q3, reflecting lower SOFR rates and strong execution on recent financing transactions. Even with no additional rate cuts by the Fed, we expect some reduction in our cost of funds during 2026, but the level will depend upon credit spreads on new financing transactions, our funding mix, and the level, timing, and mix of originations growth. Our effective tax rate for Q4 was 20%. The sequential decline was driven by favorable state changes, a decrease in our uncertain tax position reserve and related interest, and tax benefits resulting from share price increases on stock options exercised during Q4. While there may be variations from quarter to quarter, we expect our normalized annual effective tax rate to remain in the mid-20% range. Finally, we continue to deliver solid profitability this quarter.

Speaker #2: Even with no additional rate cuts by the Fed, we expect some reduction in our cost of funds during 2026, but the level will depend upon credit spreads on new financing transactions, our funding mix, and the level, timing, and mix of originations growth.

Speaker #2: Our effective tax rate for the fourth quarter was 20%. The sequential decline was driven by favorable state changes, a decrease in—and related interest—and tax on our uncertain tax position reserve benefits resulting from share price increases on stock options exercised during the fourth quarter.

Speaker #2: While there may be variations from quarter to quarter, we expect our normalized annual effective tax rate to remain in the mid-20% range. Finally, we continue to deliver solid profitability this quarter.

Speaker #2: Compared to the fourth quarter of 2024, adjusted EPS, a non-GAAP measure, increased 33% to $3.46 per diluted share. Adjusted EBITDA, a non-GAAP measure, increased 21% to $211 million.

Operator: Compared to Q4 2024, adjusted EPS, a non-GAAP measure, increased 33% to $3.46 per diluted share, and adjusted EBITDA, a non-GAAP measure, increased 21% to $211 million. To wrap up, let me summarize our Q1 and full year 2026 expectations. For the Q1, we expect revenue to follow our typical seasonality and to be flat to slightly higher sequentially. We expect net revenue margin of 55% to 60% on a consolidated basis, as seasonally lower originations are offset by an improvement in the net charge-off rate. In addition, we expect marketing expenses as a percentage of revenue to be in the upper teens, O&T costs of around 8% of revenue, and G&A costs of between 5% and 5.5% of revenue. Interest expense as a percentage of revenue is expected to be around 10.5%.

Compared to Q4 2024, adjusted EPS, a non-GAAP measure, increased 33% to $3.46 per diluted share, and adjusted EBITDA, a non-GAAP measure, increased 21% to $211 million. To wrap up, let me summarize our Q1 and full year 2026 expectations. For the Q1, we expect revenue to follow our typical seasonality and to be flat to slightly higher sequentially. We expect net revenue margin of 55% to 60% on a consolidated basis, as seasonally lower originations are offset by an improvement in the net charge-off rate. In addition, we expect marketing expenses as a percentage of revenue to be in the upper teens, O&T costs of around 8% of revenue, and G&A costs of between 5% and 5.5% of revenue. Interest expense as a percentage of revenue is expected to be around 10.5%.

Speaker #2: To wrap up, let me summarize our first quarter and full year 2026 expectations. For the first quarter, we expect revenue to follow our typical seasonality and to be flat to slightly higher sequentially.

Speaker #2: We expect net revenue margin on a consolidated basis of 55 to 60%, as seasonally lower originations are offset by an improvement in the net charge-off rate.

Speaker #2: In addition, we expect marketing expenses as a percentage of revenue to be in the upper teens; O&T costs of around 8% of revenue; and G&A costs of between 5% and 5.5% of revenue.

Speaker #2: Interest expense as a percentage of revenue is expected to be around 10.5%. With a more normalized tax rate, these expectations should lead to adjusted EPS for the first quarter of 2026 that is 20% to 25% higher than the first quarter of 2025.

Operator: With a more normalized tax rate, these expectations should lead to Adjusted EPS for Q1 2026 that is 20% to 25% higher than Q1 2025. Our Q1 expectations will depend upon customer payment rates and the level, timing, and mix of originations growth. Now turning to our expectations for the full year of 2026. Assuming a stable macroeconomic environment with no material changes in the employment situation and a largely unchanged interest rate environment, we would expect growth in originations for the full year 2026 compared to the full year 2025 to increase by around 15%. The resulting growth in receivables with stable credit, continued operating leverage, and a reduced cost of funds should result in full year 2026 revenue growth similar to originations growth and Adjusted EPS growth of at least 20%.

With a more normalized tax rate, these expectations should lead to Adjusted EPS for Q1 2026 that is 20% to 25% higher than Q1 2025. Our Q1 expectations will depend upon customer payment rates and the level, timing, and mix of originations growth. Now turning to our expectations for the full year of 2026. Assuming a stable macroeconomic environment with no material changes in the employment situation and a largely unchanged interest rate environment, we would expect growth in originations for the full year 2026 compared to the full year 2025 to increase by around 15%. The resulting growth in receivables with stable credit, continued operating leverage, and a reduced cost of funds should result in full year 2026 revenue growth similar to originations growth and Adjusted EPS growth of at least 20%.

Speaker #2: Our first quarter expectations will depend upon customer payment rates and the level, timing, and mix of originations growth. Now, turning to our expectations for the full year of 2026.

Speaker #2: Assuming a stable macroeconomic environment with no material changes in the employment situation, and a largely unchanged interest rate environment, we would expect growth in originations for the full year 2026 compared to the full year 2025 to increase by around 15%.

Speaker #2: In receivables with stable credit, the resulting growth, continued operating leverage, and a reduced cost of funds should result in full-year 2026 revenue growth similar to originations growth and adjusted EPS growth of at least 20%.

Speaker #2: Our expectations for 2026 will depend on the macroeconomic environment and the resulting impact on demand, customer payment rates, and the level, timing, and mix of originations growth.

Operator: Our expectations for 2026 will depend on the macroeconomic environment and the resulting impact on demand, customer payment rates, and the level, timing, and mix of originations growth. As a reminder, our 2026 financial expectations do not assume any contribution from the pending acquisition of Grasshopper Bank, which we expect to close in the second half of 2026. Our results in 2025 reinforce the flexibility and scalability of our business model. As we move into 2026, we are well positioned to drive meaningful financial results supported by a diversified product set, a continued focus on unit economics, favorable competitive positioning, and balance sheet flexibility. And with that, we'd be happy to take your questions. Operator? Thank you. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the key.

Our expectations for 2026 will depend on the macroeconomic environment and the resulting impact on demand, customer payment rates, and the level, timing, and mix of originations growth. As a reminder, our 2026 financial expectations do not assume any contribution from the pending acquisition of Grasshopper Bank, which we expect to close in the second half of 2026. Our results in 2025 reinforce the flexibility and scalability of our business model. As we move into 2026, we are well positioned to drive meaningful financial results supported by a diversified product set, a continued focus on unit economics, favorable competitive positioning, and balance sheet flexibility. And with that, we'd be happy to take your questions. Operator?

Speaker #2: As a reminder, our 2026 financial expectations do not assume any contribution from the pending acquisition of Grasshopper Bank, which we expect to close in the second half of 2026.

Speaker #2: Our results in 2025 reinforce the flexibility and scalability of our move into 2026. We are well-positioned to drive meaningful financial results, supported by a diversified product set, a continued focus on unit economics, favorable competitive positioning, and balance sheet flexibility.

Speaker #2: And with that, we'd be happy to take your questions. Operator? Thank you. To ask a question, you may press star, then one on your telephone keypad.

Operator: Thank you. To ask a question, you may press star then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the key.If at any time your question has been addressed and you would like to withdraw your question, please press star then two. The first question comes from Moshe Orenbuch with TD Cowen. Please go ahead.

Speaker #2: If you're using a speakerphone, please pick up your handset before pressing the key. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then two. The first question comes from Moshe Orenbuch with TD Cowen. Please go ahead. Great. Thanks, and congrats, David, Steve, and Scott on all of the management changes and promotions and all. I'm hoping, Steve, that you could talk a little bit about the consumer business. You talked about the growth having slowed and then accelerated. How much faster kind of is the exit rate? How should we think about it? And are there impacts that we should be aware of given this upcoming tax season and new withholding types of patterns? Hey, Moshe. Thanks for the question. So as I mentioned in my comments, and as we expected after seeing really remarkably good credit last quarter, we did accelerate the growth in the consumer business.

Speaker #2: The first question comes from Moshe Orembuch with TD Cowen. Please go ahead.

Moshe Orenbuch: Great. Thanks, and congrats, David, Steve, and Scott on all of the management changes and promotions and all. I'm hoping, Steve, that you could talk a little bit about the consumer business. You talked about the growth having slowed and then accelerated. How much faster kind of is the exit rate? How should we think about it? And are there impacts that we should be aware of given this upcoming tax season and new withholding types of patterns?

Speaker #3: Great, thanks. And congrats, David, Steven, Scott, on all of the management changes and promotions and all. I'm hoping, Steve, that you could talk a little bit about the consumer business.

Speaker #3: You talked about the growth having slowed and then accelerated. How much faster, kind of, is the exit rate? How should we think about it?

Speaker #3: And are there impacts that we should be aware of, given this upcoming tax season and new withholding types of patterns?

Steve Cunningham: Hey, Moshe. Thanks for the question. So as I mentioned in my comments, and as we expected after seeing really remarkably good credit last quarter, we did accelerate the growth in the consumer business.

Speaker #4: Hey, Moshe. Thanks for the question. So, as I mentioned in my comments and as we expected, after seeing really remarkably good credit at last quarter, we did accelerate the growth in the consumer business.

Speaker #4: And that growth rate accelerated as we went through the quarter. Similar to last year, we saw December exceptionally strong. So sometimes the seasonal pattern of the quarter can vary depending on the timing of the holidays, but really for the second year in a row, we saw a significant amount of the growth coming in December.

Operator: That growth rate accelerated as we went through the quarter, similar to last year. We saw December exceptionally strong. So sometimes the seasonal pattern of consumer growth in the Q4 can vary depending on the timing of the holidays, but really for the second year in a row, we saw a significant amount of the growth coming in in December. So we were really pleased with that. And as you can see, our nimble and efficient marketing allowed us to continue to kind of lean into that. I think we learned from last year where we saw sort of a similar pattern and knew if that demand sort of showed up the same way, we could take more of that down. So we were really pleased with that.

That growth rate accelerated as we went through the quarter, similar to last year. We saw December exceptionally strong. So sometimes the seasonal pattern of consumer growth in the Q4 can vary depending on the timing of the holidays, but really for the second year in a row, we saw a significant amount of the growth coming in in December. So we were really pleased with that. And as you can see, our nimble and efficient marketing allowed us to continue to kind of lean into that. I think we learned from last year where we saw sort of a similar pattern and knew if that demand sort of showed up the same way, we could take more of that down. So we were really pleased with that.

Speaker #4: So we were really pleased with that. And as you can see, our nimble and efficient marketing allowed us to continue to kind of lean into that.

Speaker #4: I think we learned from last year, where we saw sort of a similar pattern and knew, if that demand sort of showed up the same way, we could take more of that down.

Speaker #4: So we were really pleased with that. When you look forward to the first quarter, similarly, we're seeing some of that strength continue into early January.

Operator: When you look forward to Q1, similarly, we're seeing some of that strength continue into early January, similar to what we saw last year. And so we'll continue to meet that demand where it is. It tends to fall off fairly quickly once it does fall off as you move through later January and further into Q1. With the tax refund season, I mean, based on what we know today, it sounds like there's potential for some larger refunds this year, which would be great for credit for us. And so a lot of the originations that we put on should perform very, very well. And what we've tended to see over time is that can just shift around the demand curve a little bit in terms of when the demand timing restarts, but typically it's just a matter of weeks.

When you look forward to Q1, similarly, we're seeing some of that strength continue into early January, similar to what we saw last year. And so we'll continue to meet that demand where it is. It tends to fall off fairly quickly once it does fall off as you move through later January and further into Q1. With the tax refund season, I mean, based on what we know today, it sounds like there's potential for some larger refunds this year, which would be great for credit for us. And so a lot of the originations that we put on should perform very, very well. And what we've tended to see over time is that can just shift around the demand curve a little bit in terms of when the demand timing restarts, but typically it's just a matter of weeks.

Speaker #4: Similar to what we saw last year, and so we'll continue to meet that demand where it is. It tends to fall off fairly quickly.

Speaker #4: Once it does fall off, as you move through later January, and further into the first quarter, with the tax refund season, I mean, I would—based on what we know today—it sounds like there's the potential for some larger refunds this year, which would be great for credit for us.

Speaker #4: And so a lot of the originations that we put on should perform very, very well. And what we've tended to see over time is that can just shift around the demand curve a little bit in terms of when the demand timing restarts.

Speaker #4: But typically, it's just a matter of weeks. So, we have a lot of experience with different tax refund seasons over our history. And our guidance reflects sort of our expectations, and we're feeling really good about how the fourth quarter wrapped up for Consumer and how the 2026 Consumer business is starting.

Operator: We have a lot of experience with different tax refund seasons over our history, and our guidance reflects sort of our expectations. We're feeling really good about how the Q4 wrapped up for consumer and how the 2026 consumer business is starting. Great. Good to hear that you're moving forward. I'm sorry. Is it good to hear that you're moving forward with all the steps for Grasshopper? Are there things that you're going to do differently in your core portfolio prior to closing or maybe talk a little bit about what the early kind of earliest impacts that you might see starting in the second half of the year after closing? I mean, until we close the transactions, both companies are business as usual.

We have a lot of experience with different tax refund seasons over our history, and our guidance reflects sort of our expectations. We're feeling really good about how the Q4 wrapped up for consumer and how the 2026 consumer business is starting.

Moshe Orenbuch: Great. Good to hear that you're moving forward. I'm sorry. Is it good to hear that you're moving forward with all the steps for Grasshopper? Are there things that you're going to do differently in your core portfolio prior to closing or maybe talk a little bit about what the early kind of earliest impacts that you might see starting in the second half of the year after closing?

Speaker #3: Great, and good to hear that you're moving—I'm sorry. Is it good to hear that you're moving forward with all the steps for Grasshopper? Are there things that you're going to do differently in your core portfolio prior to closing, or maybe talk a little bit about some of the earliest impacts that you might see starting in the second half of the year after closing?

Speaker #4: Yeah. I mean, until we close the transactions—until the transactions—both companies are business as usual. So the outlook that Scott gave you is our expectation of continuing that track record of strong growth in our business and being opportunistic as we see demand, and following our balanced growth approach.

Steve Cunningham: I mean, until we close the transactions, both companies are business as usual.So the outlook that Scott gave you is our expectation of continuing that track record of strong growth in our business, and being opportunistic as we see demand, and following our balanced growth approach. So you should expect more of that. And as we talked about on the Grasshopper call, I think once we're beyond the close of that transaction, step number one is really, with the product set that we have today, expanding our footprint to continue to serve more customers. And that's really the basis for the revenue synergies that we laid out and that I discussed on the call as well.

Operator: So the outlook that Scott gave you is our expectation of continuing that track record of strong growth in our business, and being opportunistic as we see demand, and following our balanced growth approach. So you should expect more of that. And as we talked about on the Grasshopper call, I think once we're beyond the close of that transaction, step number one is really, with the product set that we have today, expanding our footprint to continue to serve more customers. And that's really the basis for the revenue synergies that we laid out and that I discussed on the call as well. Thanks very much. The next question comes from Bill Ryan with Seaport Research Partners. Please go ahead. Good afternoon, and thanks for taking my questions. And following Moshe, I'd like to say congratulations to everybody. A couple of questions.

Speaker #4: So you should expect more of that. And as we talked about on the Grasshopper call, I think once we're beyond the close of that transaction, step number one is really, with the product set that we have today, expanding our footprint to continue to serve more customers. And that's really the basis for the revenue synergies that we laid out and that I discussed on the call as well.

Speaker #4: well. Okay.

Moshe Orenbuch: Thanks very much.

Speaker #3: Thanks very much.

Operator: The next question comes from Bill Ryan with Seaport Research Partners. Please go ahead.

Speaker #2: The next question comes from Bill Ryan with Seaport Research Partners. Please go ahead.

Bill Ryan: Good afternoon, and thanks for taking my questions. And following Moshe, I'd like to say congratulations to everybody. A couple of questions.I mean, you talked about a mix of origination or the origination growth being about 15% in 2026. If you could maybe elaborate on kind of what you're expecting in terms of the mix between consumer and small business.

Speaker #5: Good afternoon, and thanks for taking my questions and following, Moshe. I'd like to say congratulations to everybody. A couple of questions: I mean, you talked about a mix of origination, or the origination growth being about 15% in 2026.

Operator: I mean, you talked about a mix of origination or the origination growth being about 15% in 2026. If you could maybe elaborate on kind of what you're expecting in terms of the mix between consumer and small business. Yeah. Hi, Bill. So yeah, we feel like we're in a pretty good position with what we know today to grow around 15% for the year. With the resumption of the consumer growth that we just talked about, we think we'll settle in at more typical levels than maybe what we saw for some quarters in 2025. We think we'll continue a pattern that you've seen with S&B. Obviously, some of the growth rates that we've seen have been really, really strong, but we've had a track record of growing that business now at 20%+ now for quite a while.

Speaker #5: If you could maybe elaborate on what you're expecting in terms of the mix between consumer and small.

Speaker #5: business? Yeah.

Steve Cunningham: Yeah. Hi, Bill. So yeah, we feel like we're in a pretty good position with what we know today to grow around 15% for the year. With the resumption of the consumer growth that we just talked about, we think we'll settle in at more typical levels than maybe what we saw for some quarters in 2025. We think we'll continue a pattern that you've seen with S&B. Obviously, some of the growth rates that we've seen have been really, really strong, but we've had a track record of growing that business now at 20%+ now for quite a while.

Speaker #4: Hi, Bill. So yeah, we feel like we're in a pretty good position with what we know today to grow around 15% for the year.

Speaker #4: With the resumption of the consumer growth that we just talked about, we think we'll settle in at more typical levels than maybe what we saw for some quarters in 2025.

Speaker #4: We think we'll continue a pattern that you've seen with SMB. Obviously, some of the growth rates that we've seen have been really, really strong, but we've had a track record of growing that business now at 20% plus for quite a while.

Speaker #4: So, you may see what we've seen over the past couple of years, which is a slow tilt in our portfolio towards SMB, just in terms of where the demand has been. But we'll continue to be opportunistic.

Operator: So you may see what we've seen over the past couple of years, which is a slow tilt in our portfolio towards SMB just in terms of where the demand has been, but we'll continue to be opportunistic. And in prior years, we've seen sometimes where there's more opportunity in the consumer business, and it's grown faster. And we've seen in recent times the SMB portfolio is growing a bit faster. We'll continue to follow that approach that we've followed with the balanced growth approach to make sure that we're meeting the demand in both. That makes sense to follow our unit economics. And so that's what we expect from where we sit today. Okay. Thanks for that. And just one follow-up. I know you guys can continue to make adjustments on your underwriting.

So you may see what we've seen over the past couple of years, which is a slow tilt in our portfolio towards SMB just in terms of where the demand has been, but we'll continue to be opportunistic. And in prior years, we've seen sometimes where there's more opportunity in the consumer business, and it's grown faster. And we've seen in recent times the SMB portfolio is growing a bit faster. We'll continue to follow that approach that we've followed with the balanced growth approach to make sure that we're meeting the demand in both. That makes sense to follow our unit economics. And so that's what we expect from where we sit today.

Speaker #4: And in prior years, we've seen times where there's more opportunity in the consumer business and it's grown faster, and we've seen in recent times the SMB portfolio is growing a bit faster.

Speaker #4: We'll continue to follow that approach that we've followed with the balanced growth approach to make sure that we're in both. That makes sense to follow—meeting the demand, our unit economics—and so that's what we expect from where we sit today.

Bill Ryan: Okay. Thanks for that. And just one follow-up. I know you guys can continue to make adjustments on your underwriting.If you could maybe talk about that, any changes that you made on the consumer side in the Q4 and specific to small businesses, was there any change in industry focus? Anything you dialed back on? Anything you kind of opened back up a little bit? Thanks.

Speaker #5: Okay, thanks for that. And just one follow-up. I know you guys can continually make adjustments. On your underwriting, if you could maybe talk about that—any changes that you made on the consumer side in the fourth quarter? And specific to small businesses, was there any change in industry focus? Anything you dialed back on, anything you kind of opened back up a little bit?

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Q4 2025 Enova International Inc Earnings Call

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Q4 2025 Enova International Inc Earnings Call

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