OneMain Holdings Q4 2025 OneMain Holdings Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 OneMain Holdings Inc Earnings Call
Speaker #4: your Thank you for continued Your meeting patience . begin will If shortly . you need assistance time , please press Star Zero and a member of our team will be happy to help .
Speaker #5: You .
Operator: Please stand by. Your meeting is about to begin. Good morning, everyone. Welcome to today's OneMain Financial Q4 2025 Earnings Conference Call and Webcast. Hosting the call today from OneMain is Peter Poillon, Head of Investor Relations. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. We do ask that you please limit yourself to one question and one follow-up, and please pick up your handset to allow for optimal sound quality. Lastly, if you should require operator assistance, please press star zero at any time.
Operator: Please stand by. Your meeting is about to begin. Good morning, everyone. Welcome to today's OneMain Financial Q4 2025 Earnings Conference Call and Webcast. Hosting the call today from OneMain is Peter Poillon, Head of Investor Relations. Today's call is being recorded. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. We do ask that you please limit yourself to one question and one follow-up, and please pick up your handset to allow for optimal sound quality. Lastly, if you should require operator assistance, please press star zero at any time.
Speaker #6: by your meeting Please stand is about to begin . Good everyone . morning Welcome to today's one main financial fourth Quarter 2020 Earnings Conference Call and webcast .
Speaker #6: Hosting the call today from one main is Peter , Head of Relations . Investor call is being recorded . At this time , all participants have been placed in a listen only mode and the floor will be open for Following the questions .
Speaker #6: presentation . If you would like to ask a question at that time , please press star your telephone . any point question has been If at you may yourself from the queue pressing by star two .
Speaker #6: answered , We do ask that you please limit yourself to one question and one follow up . And please pick up your handset to allow for optimal sound quality .
Operator: It is now my pleasure to turn the meeting over to Mr. Peter Poillon. Please go ahead, sir.
Operator: It is now my pleasure to turn the meeting over to Mr. Peter Poillon. Please go ahead, sir.
Speaker #6: Lastly , if you should operator require assistance , please press star zero at any time . It remove pleasure to meeting over to my Mr. Peter Poillon .
Peter Poillon: Thank you, operator. Good morning, everyone, and thank you for joining us. Let me begin by directing you to page 2 of the Q4 2025 investor presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures. The presentation can be found in the Investor Relations section of the OneMain website. Our discussion today will contain certain forward-looking statements reflecting management's current beliefs about the company's future, financial performance, and business prospects, and these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in our earnings press release. We caution you not to place undue reliance on forward-looking statements.
Peter Poillon: Thank you, operator. Good morning, everyone, and thank you for joining us. Let me begin by directing you to page 2 of the Q4 2025 investor presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures. The presentation can be found in the Investor Relations section of the OneMain website. Our discussion today will contain certain forward-looking statements reflecting management's current beliefs about the company's future, financial performance, and business prospects, and these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in our earnings press release. We caution you not to place undue reliance on forward-looking statements.
Speaker #6: ahead , Please go sir
Speaker #6: . Thank you .
Speaker #7: Good Operator . everyone , morning and thank you for us . begin Let me by directing you to two of page fourth the quarter 2025 investor presentation , which contains important disclosures concerning forward looking statements and the use of non-GAAP measures .
Speaker #7: The presentation can be Investor found in the Relations section of the one main website . Our discussion today will contain certain forward looking statements reflecting management's current beliefs about company's the future financial performance and business prospects , forward looking and these subject to statements are inherent risks uncertainties and speak of only as today and .
Speaker #7: Factors that could cause actual results to differ materially from these looking forward set forth in our earnings press release . statements are We caution you not to place undue forward looking statements reliance on .
Peter Poillon: If you may be listening to this via replay at some point after today, we remind you that the remarks made herein are as of today, 5 February, and have not been updated subsequent to this call. Our call this morning will include formal remarks from Doug Shulman, our Chairman and Chief Executive Officer, and Jenny Osterhout, our Chief Financial Officer. After the conclusion of our formal remarks, we will conduct a question-and-answer section. I'd like to now turn the call over to Doug.
Peter Poillon: If you may be listening to this via replay at some point after today, we remind you that the remarks made herein are as of today, 5 February, and have not been updated subsequent to this call. Our call this morning will include formal remarks from Doug Shulman, our Chairman and Chief Executive Officer, and Jenny Osterhout, our Chief Financial Officer. After the conclusion of our formal remarks, we will conduct a question-and-answer section. I'd like to now turn the call over to Doug.
Speaker #7: If you may be listening to via replay at this some point after today , we the remind you that remarks made herein are , as of today , February 5th , not been and have updated subsequent to this call call this morning will include formal remarks from Douglas Shulman .
Speaker #7: Chairman and . Chief Our Our and Jenny , our Chief Officer . Financial After the conclusion of our remarks , formal conduct a question and answer section .
Doug Shulman: Thanks, Pete. Good morning, everyone. Thank you for joining us today. Let me start with a brief overview of the company's 2025 performance. It was an excellent year, with very strong earnings growth and meaningful progress on our strategic initiatives. All of the momentum we have built over the past few years came through in our 2025 results. Full-year C&I earnings per share were $6.66, an increase of 36% year over year. Capital generation was $913 million, an increase of 33%. This outstanding earnings growth was driven by significant revenue growth, accelerated loss improvement, and continued focus on efficiency. And once again, we exhibited our balance sheet strength, raising $5.9 billion in 2025. Our receivables grew 6% to over $26 billion, despite maintaining a tight credit posture throughout the year.
Doug Shulman: Thanks, Pete. Good morning, everyone. Thank you for joining us today. Let me start with a brief overview of the company's 2025 performance. It was an excellent year, with very strong earnings growth and meaningful progress on our strategic initiatives. All of the momentum we have built over the past few years came through in our 2025 results. Full-year C&I earnings per share were $6.66, an increase of 36% year over year. Capital generation was $913 million, an increase of 33%. This outstanding earnings growth was driven by significant revenue growth, accelerated loss improvement, and continued focus on efficiency. And once again, we exhibited our balance sheet strength, raising $5.9 billion in 2025. Our receivables grew 6% to over $26 billion, despite maintaining a tight credit posture throughout the year.
Speaker #7: we will over to the call Doug . Thanks , Pete .
Speaker #8: morning Good Thank you for joining
Speaker #8: today everyone . me start brief . Let with a the overview of company's 2025 performance . It was an excellent year with now turn very strong earnings growth and meaningful progress on our strategic momentum .
Speaker #8: initiatives All we have built of the past few over years . Came our through in 2025 results . Full year CNI earnings share per $6.66 , an increase were of 36% year over .
Speaker #8: year Capital generation was $913 million , an increase of This 33% . outstanding earnings growth was driven by significant revenue growth , accelerated loss improvement and continued focus efficiency .
Speaker #8: And once again , on we exhibited our sheet strength , balance raising $5.9 billion 2025 . Our grew 6% to receivables over $26 billion .
Doug Shulman: Receivables growth was supported by focused initiatives to drive more high-quality personal loan originations, as well as important contributions from our auto finance and credit card businesses. Revenue grew 9%, supported by higher yields in a constructive competitive environment. C&I net charge-offs were 7.7%, down 46 basis points from 2024, and consumer loan net charge-offs came down 63 basis points from last year, benefiting from the proactive credit actions we've been taking the last several years. In 2025, we continued to make significant progress across all three of our businesses, positioning the company for continued earnings growth in 2026 and beyond. Growth in our personal loans was driven by a series of targeted initiatives. Our debt consolidation product continues to grow.
Doug Shulman: Receivables growth was supported by focused initiatives to drive more high-quality personal loan originations, as well as important contributions from our auto finance and credit card businesses. Revenue grew 9%, supported by higher yields in a constructive competitive environment. C&I net charge-offs were 7.7%, down 46 basis points from 2024, and consumer loan net charge-offs came down 63 basis points from last year, benefiting from the proactive credit actions we've been taking the last several years. In 2025, we continued to make significant progress across all three of our businesses, positioning the company for continued earnings growth in 2026 and beyond. Growth in our personal loans was driven by a series of targeted initiatives. Our debt consolidation product continues to grow.
Speaker #8: Despite a tight maintaining credit posture throughout the , receivables year growth was supported focused by initiatives to drive more high quality personal loan originations well as , as important contributions from our auto credit card finance and businesses .
Speaker #8: Revenue grew 9% , supported by yields in a constructive competitive higher environment . CNI net charge offs were 7.7% , down 46 basis points from 2024 , and loan net charge offs 63 basis consumer came down from last year , benefiting from proactive credit actions we've the been last taking the several years .
Speaker #8: In 2025 , we continued to make significant progress all across businesses , positioning the company for continued three of our earnings growth in 2026 and beyond .
Speaker #8: Growth in our personal loans was driven series a of Our targeted debt consolidation product continues to grow . This valuable which product , to consolidate debt into customers single , amortizing loan , , predictable typically reduces a customer's payment by about 25% on the debt they consolidate .
Doug Shulman: This valuable product, which allows customers to consolidate debt into a single, predictable, amortizing loan, typically reduces a customer's payment by about 25% on the debt they consolidate. We've also used data to reduce friction and serve more customers, including automated income verification and pre-populated auto collateral before a team member talks to a customer about a loan application. We continue to increase our use of bank data that enables accurate, real-time credit decisioning. We added a streamlined renewal product for our best customers, and also created a new product that links a paycheck directly to our payment system, further expanding credit and reducing risk. We expanded our channels, including offering our best card customers a personal loan through our mobile app, allowing us to acquire new loan customers with 0 acquisition cost.
Doug Shulman: This valuable product, which allows customers to consolidate debt into a single, predictable, amortizing loan, typically reduces a customer's payment by about 25% on the debt they consolidate. We've also used data to reduce friction and serve more customers, including automated income verification and pre-populated auto collateral before a team member talks to a customer about a loan application. We continue to increase our use of bank data that enables accurate, real-time credit decisioning. We added a streamlined renewal product for our best customers, and also created a new product that links a paycheck directly to our payment system, further expanding credit and reducing risk. We expanded our channels, including offering our best card customers a personal loan through our mobile app, allowing us to acquire new loan customers with 0 acquisition cost.
Speaker #8: We have used data to reduce friction and serve more customers, including automated income and verification, pre-populated auto collateral, before a team member talks to a customer about a loan application.
Speaker #8: continue to we And increase our use of bank data that enables accurate , real time credit decisioning We added a . streamlined renewal product for customers and also created a new product that links a paycheck directly to our payment system .
Speaker #8: Further expanding credit and reducing risk . We expanded our channels , including offering our card best a personal loan mobile through our app customers , allowing us to acquire new loan customers with zero acquisition .
Doug Shulman: This month, we are introducing a new secured lending product just for homeowners, securing the loan with home fixtures, which comes with beneficial pricing similar to our auto-secured loan. All of these products allow us to drive originations volume without loosening our underwriting standards. This year, we've also continued to optimize our branch-based operating model to improve customer engagement while driving performance and efficiency. We've expanded the use of central sales and collections to seamlessly serve customers in real time during periods of high volume. This month, we launched a new AI-powered tool that gives our branch and central team members faster, easier access to internal policies and guidelines. By transforming enterprise knowledge into a plain language, intuitive experience, this AI capability is designed to boost productivity, accelerate decision-making, and allow our teams to spend more time serving customers.
Doug Shulman: This month, we are introducing a new secured lending product just for homeowners, securing the loan with home fixtures, which comes with beneficial pricing similar to our auto-secured loan. All of these products allow us to drive originations volume without loosening our underwriting standards. This year, we've also continued to optimize our branch-based operating model to improve customer engagement while driving performance and efficiency. We've expanded the use of central sales and collections to seamlessly serve customers in real time during periods of high volume. This month, we launched a new AI-powered tool that gives our branch and central team members faster, easier access to internal policies and guidelines. By transforming enterprise knowledge into a plain language, intuitive experience, this AI capability is designed to boost productivity, accelerate decision-making, and allow our teams to spend more time serving customers.
Speaker #8: And this month , we introducing a costs new secured lending product just for are homeowners . Securing with home the loan fixtures , which comes with beneficial pricing similar to our auto secured loan .
Speaker #8: All products allow us to of these drive originations , volume without loosening our underwriting standards . This year , also we've continued optimize our to branch based operating model to improve customer engagement while performance driving and efficiency .
Speaker #8: We've expanded the use of central sales and collections to seamlessly serve customers time . During periods of in high . And volume this launched we AI a month , powered new tool gives our branch and central members team faster , that easier access to internal policies and guidelines transforming enterprise knowledge .
Speaker #8: into a plain By language , intuitive this AI capability designed to boost is productivity decision , accelerate making , our teams to spend more time serving customers .
Doug Shulman: This launch is just one example of our journey to embed AI across the organization to drive both efficiency and revenue. Initiatives like these across our product, operating model, data, and analytics are impactful in the aggregate as they drive efficiency, improve our offers, and attract more customers. Turning to auto, in 2025, we grew receivables to $2.8 billion. This was a year of significant progress in building a scalable auto finance platform. We finished the migration of OneMain's legacy auto lending operation onto our new technology infrastructure. We also grew our dealer sales force this year and expanded our business into attractive new dealerships and markets. I'm excited to share that we recently partnered with Ally Financial to form a pass-through arrangement on their ClearPass program. We've already rolled out to about 1,700 dealers, and we'll be scaling the program further this year.
Doug Shulman: This launch is just one example of our journey to embed AI across the organization to drive both efficiency and revenue. Initiatives like these across our product, operating model, data, and analytics are impactful in the aggregate as they drive efficiency, improve our offers, and attract more customers. Turning to auto, in 2025, we grew receivables to $2.8 billion. This was a year of significant progress in building a scalable auto finance platform. We finished the migration of OneMain's legacy auto lending operation onto our new technology infrastructure. We also grew our dealer sales force this year and expanded our business into attractive new dealerships and markets. I'm excited to share that we recently partnered with Ally Financial to form a pass-through arrangement on their ClearPass program. We've already rolled out to about 1,700 dealers, and we'll be scaling the program further this year.
Speaker #8: This launch is just one example of our journey to AI across the organization to drive both embed efficiency and . Initiatives these across like product operating model data and analytics are impactful in the aggregate as they drive efficiency , improve our offers and more customers .
Speaker #8: attract Turning to auto in grew 2025 , receivables we to $2.8 billion . This was a significant progress in building scalable year of auto a finance platform .
Speaker #8: We finished the migration of One Mainz lending legacy operation our new technology We also infrastructure . grew dealer force this year sales and expanded our business into attractive new dealerships and markets onto .
Speaker #8: I'm And excited to share that . We recently partnered with Ally Financial to pass through arrangement on their form a program . We've already rolled out to about dealers and 1700 will be scaling the program further this look year .
Doug Shulman: We look forward to a very successful partnership with Ally in 2026 and beyond. Turning to credit card, we continued to build momentum in 2025. Receivables grew to $936 million, and accounts increased to nearly 1.1 million customers at year-end. We continued to refine our product offering this year. We introduced a number of new cards, adjusting reward levels, credit lines, and other features. This allows us to tailor our unique product offering of payments equal progress to more customers while also managing credit and risk. As we scale the business, improvements in digital engagement are driving efficiency. For instance, in 2025, our digital efforts led to a reduction in customer calls per account, reducing marginal operating expense per account by 25%.
Doug Shulman: We look forward to a very successful partnership with Ally in 2026 and beyond. Turning to credit card, we continued to build momentum in 2025. Receivables grew to $936 million, and accounts increased to nearly 1.1 million customers at year-end. We continued to refine our product offering this year. We introduced a number of new cards, adjusting reward levels, credit lines, and other features. This allows us to tailor our unique product offering of payments equal progress to more customers while also managing credit and risk. As we scale the business, improvements in digital engagement are driving efficiency. For instance, in 2025, our digital efforts led to a reduction in customer calls per account, reducing marginal operating expense per account by 25%.
Speaker #8: We forward to a very successful partnership with ally beyond in 2026 and . Turning to credit card . continued to build momentum in 2025 .
Speaker #8: Receivables grew We to $936 million and accounts to increased nearly customers 1.1 million at year end continued . to We product We year .
Speaker #8: introduced refine our number of this offering cards , adjusting reward levels , credit lines and other features . This to allows us unique product offering of payments equal to more customers , while managing also credit and .
Speaker #8: Progress in business improvements in digital scale is driving efficiency. For instance, in 2025, our efforts in digital led to a reduction in customer calls per account and marginal operating expense per account by 25%. While credit remains a small percentage of our overall business, making up just receivables.
Doug Shulman: While credit cards remain a small percentage of our overall business, making up just 4% of receivables, we're seeing progress in its performance, and as we drive efficiencies and reduce losses, we are seeing an acceleration in capital generation in the card business. During 2025, we also continued to help our customers manage their financial lives. We had continued adoption of our financial wellness platform on our mobile app. The platform provides customers with free financial wellness tools, such as credit score monitoring, budgeting, expense tracking, and bill negotiation. In 2025, we had a 36% increase in customers using the product. Our free financial education program, Credit Worthy by OneMain, has now reached more than 600,000 high school students in nearly 5,000 high schools, or 18% of all high schools in the United States.
Doug Shulman: While credit cards remain a small percentage of our overall business, making up just 4% of receivables, we're seeing progress in its performance, and as we drive efficiencies and reduce losses, we are seeing an acceleration in capital generation in the card business. During 2025, we also continued to help our customers manage their financial lives. We had continued adoption of our financial wellness platform on our mobile app. The platform provides customers with free financial wellness tools, such as credit score monitoring, budgeting, expense tracking, and bill negotiation. In 2025, we had a 36% increase in customers using the product. Our free financial education program, Credit Worthy by OneMain, has now reached more than 600,000 high school students in nearly 5,000 high schools, or 18% of all high schools in the United States.
Speaker #8: Progress in its performance, we 4% of drive and as efficiencies reduce losses, we are seeing an acceleration in capital generation card in business.
Speaker #8: During 2025 . We also in the help our customers continued to manage their lives . We had continued adoption of our financial wellness platform on our mobile app .
Speaker #8: The provides platform customers with free financial wellness tools such as credit , budgeting , expense bill tracking negotiation . and In 2025 , we had a 36% increase in using the product Our free financial .
Speaker #8: Education, Credit Worthy by Program One Main, has now reached more than 600,000 high school students in nearly 5,000 high schools, or 18% of all schools in the United States.
Doug Shulman: Many of our team members volunteer and engage with students throughout the year, making a difference in the communities where they live and work. We're proud of the impact Credit Worthy is having on students, delivering early, practical financial education that helps them build the skills they need to responsibly manage credit and build a brighter financial future. Additionally, in 2025, we saw continued recognition of the special workplace we have built at OneMain, as we were recognized by the Best Practice Institute as one of America's most loved workplaces for the fourth year in a row. This distinction is based on team member feedback and reflects the culture we continue to build, one grounded in high performance, teamwork, respect, personal growth, and a shared commitment to serving our customers.
Doug Shulman: Many of our team members volunteer and engage with students throughout the year, making a difference in the communities where they live and work. We're proud of the impact Credit Worthy is having on students, delivering early, practical financial education that helps them build the skills they need to responsibly manage credit and build a brighter financial future. Additionally, in 2025, we saw continued recognition of the special workplace we have built at OneMain, as we were recognized by the Best Practice Institute as one of America's most loved workplaces for the fourth year in a row. This distinction is based on team member feedback and reflects the culture we continue to build, one grounded in high performance, teamwork, respect, personal growth, and a shared commitment to serving our customers.
Speaker #8: Many of our in members volunteer and students engage with throughout the year , making a the communities where they We're proud work . live and of the credit is worthy delivering early impact having on financial education that helps them build the skills they need responsibly to manage credit and build a brighter financial future .
Speaker #8: Additionally , in 2025 , we continued saw recognition of the special have built at one main . students by the best workplace we Institute America's as workplaces one of For .
Speaker #8: in a fourth year the . row distinction is team based on This feedback and reflects the member culture we continue to build . One grounded high in performance teamwork , personal growth , respect shared commitment to serving our .
Doug Shulman: This culture is a real competitive advantage for our franchise, supporting employee engagement, strong execution, deep customer relationships, and consistent outperformance over time. Now let me turn to the great results for the fourth quarter. CNI adjusted earnings were $1.59 per share, up 37% from last year. We grew capital generation by 23% to $225 million. Our receivables grew 6% year-over-year, and revenue grew 8%. Our 30+ delinquency for consumer loans was 5.65%, in line with expectations and better than pre-pandemic seasonal trends. We also continue to see strong recoveries in the business and better roles from delinquency to charge-offs. CNI net charge-offs were 7.9% in the quarter, and consumer loan net charge-offs were 7.6%. We saw significant improvement in net charge-offs in 2025.
Doug Shulman: This culture is a real competitive advantage for our franchise, supporting employee engagement, strong execution, deep customer relationships, and consistent outperformance over time. Now let me turn to the great results for the fourth quarter. CNI adjusted earnings were $1.59 per share, up 37% from last year. We grew capital generation by 23% to $225 million. Our receivables grew 6% year-over-year, and revenue grew 8%. Our 30+ delinquency for consumer loans was 5.65%, in line with expectations and better than pre-pandemic seasonal trends. We also continue to see strong recoveries in the business and better roles from delinquency to charge-offs. CNI net charge-offs were 7.9% in the quarter, and consumer loan net charge-offs were 7.6%. We saw significant improvement in net charge-offs in 2025.
Speaker #8: This customers culture is a advantage for our competitive real franchise employee employee . . Strong execution , deep customer relationships and outperformance over .
Speaker #8: Now let me turn to the time results for the fourth quarter. C and adjusted earnings were $1.59 per share, up 37% from last year.
Speaker #8: Now let me turn to the time results for the fourth quarter. C and adjusted earnings were $1.59 per share, up 37% from last year. We grew capital generation by 23% to $225 million.
Speaker #8: Our grew and revenue receivables Our 30 plus grew 8% . delinquency for consumer 6% year over was 5.65% , in line with and expectations better than pre-pandemic seasonal trends .
Speaker #8: also continue to We strong recoveries see in the business and from roles better charge year offs CNI delinquency to net charge offs were consumer loan 7.9% in the loans quarter , net charge offs were We 7.6% .
Doug Shulman: Our overall portfolio continues to perform in line with our expectations, and we remain confident that our careful management of credit will lead to losses continuing to improve in the coming years. Moving to the auto finance business, receivables increased to $2.8 billion at year-end. Losses remain in line with expectations, and we are excited about the future prospects of this business. In our credit card business, we added $102 million in receivables and 88,000 customer accounts during the quarter. We're really pleased that the losses in the card business improved measurably in the second half of 2025. This performance underpins our confidence in the business in 2026 and beyond. Let me now turn to capital allocation. Our first use of capital is originating loans that meet our risk-adjusted returns.
Doug Shulman: Our overall portfolio continues to perform in line with our expectations, and we remain confident that our careful management of credit will lead to losses continuing to improve in the coming years. Moving to the auto finance business, receivables increased to $2.8 billion at year-end. Losses remain in line with expectations, and we are excited about the future prospects of this business. In our credit card business, we added $102 million in receivables and 88,000 customer accounts during the quarter. We're really pleased that the losses in the card business improved measurably in the second half of 2025. This performance underpins our confidence in the business in 2026 and beyond. Let me now turn to capital allocation. Our first use of capital is originating loans that meet our risk-adjusted returns.
Speaker #8: improvement in net offs saw in 2025 . charge continues overall to portfolio line with our in perform and we expectations , remain Our our confident that management of will careful losses continuing to improve in the coming years Moving to the auto business , finance .
Speaker #8: $2.8 billion at year end . Losses lead to remain with expectations and we are excited about the prospects of this business . In our future business .
Speaker #8: We added credit card $102 million in , and 88,000 customer accounts during the We're really pleased that the quarter . losses in the card business improved measurably second in the half performance underpins our This confidence in the in 2026 and business .
Doug Shulman: We also continue to invest in the business to meet customer needs, drive efficiency, and build an enduring franchise. Our regular annual dividend, which is currently $4.20 per share, represents an approximately 7% yield at today's share price, and we are committed to a programmatic share repurchase program. In October, our board approved a $1 billion share repurchase program through 2028. In the fourth quarter, we repurchased 1.2 million shares for $70 million. That is up from $32 million of repurchases in the third quarter and is double the $35 million repurchased in all of 2024. Unless we see other more attractive strategic uses of capital, we would expect incremental capital returns to be weighted more towards share repurchases in 2026 and beyond, while maintaining our commitment to the dividend.
Doug Shulman: We also continue to invest in the business to meet customer needs, drive efficiency, and build an enduring franchise. Our regular annual dividend, which is currently $4.20 per share, represents an approximately 7% yield at today's share price, and we are committed to a programmatic share repurchase program. In October, our board approved a $1 billion share repurchase program through 2028. In the fourth quarter, we repurchased 1.2 million shares for $70 million. That is up from $32 million of repurchases in the third quarter and is double the $35 million repurchased in all of 2024. Unless we see other more attractive strategic uses of capital, we would expect incremental capital returns to be weighted more towards share repurchases in 2026 and beyond, while maintaining our commitment to the dividend.
Speaker #8: turn to capital beyond Let allocation . Our first use of is originating risk adjusted capital returns . We continue to invest in business customer to meet the needs , drive efficiency also Our regular annual dividend , which is $4.20 per share .
Speaker #8: Represents approximately 7% yield at today's price, and we are share-committed to a programmatic share repurchase program. In our October meeting, the board approved a program through 2028.
Speaker #8: fourth quarter . We repurchased shares 1.2 million for $70 million . That up from $32 million of repurchases in the third and is quarter double repurchased in of all 2020 .
Speaker #8: For unless we see other , more attractive strategic the uses of capital , expect $35 million incremental returns be weighted more toward share capital repurchases 2026 and beyond .
Doug Shulman: As we enter 2026, the consumer continues to be supported by some positive trends, including low unemployment. With that said, we saw a slightly weaker labor market in 2025, and inflation has been persistent, so we are maintaining our conservative underwriting posture. Importantly, OneMain customers remain resilient, and we feel good about our portfolio, which reinforces our outlook for continued capital generation growth in 2026. With that, let me turn the call over to Jenny.
Doug Shulman: As we enter 2026, the consumer continues to be supported by some positive trends, including low unemployment. With that said, we saw a slightly weaker labor market in 2025, and inflation has been persistent, so we are maintaining our conservative underwriting posture. Importantly, OneMain customers remain resilient, and we feel good about our portfolio, which reinforces our outlook for continued capital generation growth in 2026. With that, let me turn the call over to Jenny.
Speaker #8: in While maintaining our commitment to the dividend as we The consumer continues to be some positive supported by trends , including unemployment low .
Speaker #8: With that said , a slightly we saw labor market weaker in 2025 and inflation has been So we are persistent . underwriting posture .
Speaker #8: Importantly , customers resilient one main and we feel good about portfolio , which our reinforces our continued capital generation growth in 2026 . With that , turn the call over to Jenny Thanks , .
Jenny Osterhout: Thanks, Doug, and good morning, everyone. I share Doug's enthusiasm about the strong financial results achieved in 2025, as well as the notable progress made toward our long-term strategic priorities. I'll begin today by focusing on the quarter, and then I'll get into expectations for 2026. Our fourth quarter results demonstrated continued improvement across our key financial metrics, highlighted by strong revenue growth, steady credit performance, and capital generation that grew 23% year-over-year. We continued our active management of the balance sheet this quarter, raising $1 billion in the unsecured market, bringing our total funds raised in 2025 to $5.9 billion. We also accelerated our pace of share repurchase volume in the fourth quarter. Combined with our dividend, total capital return to shareholders increased to $639 million in 2025, up 20% from 2024....
Jenny Osterhout: Thanks, Doug, and good morning, everyone. I share Doug's enthusiasm about the strong financial results achieved in 2025, as well as the notable progress made toward our long-term strategic priorities. I'll begin today by focusing on the quarter, and then I'll get into expectations for 2026. Our fourth quarter results demonstrated continued improvement across our key financial metrics, highlighted by strong revenue growth, steady credit performance, and capital generation that grew 23% year-over-year. We continued our active management of the balance sheet this quarter, raising $1 billion in the unsecured market, bringing our total funds raised in 2025 to $5.9 billion. We also accelerated our pace of share repurchase volume in the fourth quarter. Combined with our dividend, total capital return to shareholders increased to $639 million in 2025, up 20% from 2024....
Speaker #9: Doug , and good morning , everyone . share Doug's I enthusiasm strong financial the results achieved in 2025 , as well as the notable progress made toward our long term strategic priorities .
Speaker #9: begin today by I'll focusing on the quarter , and then I'll get into expectations for 2026 . fourth quarter results Our demonstrated improvement across our key financial metrics , highlighted strong revenue growth , credit steady performance and capital generation that grew by .
Speaker #9: We continued our active management of the balance quarter sheet this quarter, raising $1 billion in the unsecured market, bringing our total funds raised in 2025 to $5.9 billion.
Speaker #9: also We our pace of share repurchase volume in the fourth quarter , combined with our dividend , total returned to shareholders capital increased to in 2025 , $639 million up 20% from Fourth quarter income $204 million , or $1.72 per diluted of share , up from $1.05 per diluted share in the fourth 64% quarter of For CNI , adjusted net income of 2020 .
Jenny Osterhout: Q4 GAAP net income of $204 million, or $1.72 per diluted share, was up 64% from $1.05 per diluted share in Q4 2024. C&I adjusted net income of $1.59 per diluted share was up 37% from $1.16 per diluted share in Q4 2024. Capital generation, the metric we use to manage and measure our business, totaled $225 million, up $42 million from $183 million in Q4 2024, reflecting strong receivables growth across our products, higher portfolio yields, and good credit performance. Managed receivables finished the year at $26.3 billion, up $1.6 billion or 6% from a year ago.
Jenny Osterhout: Q4 GAAP net income of $204 million, or $1.72 per diluted share, was up 64% from $1.05 per diluted share in Q4 2024. C&I adjusted net income of $1.59 per diluted share was up 37% from $1.16 per diluted share in Q4 2024. Capital generation, the metric we use to manage and measure our business, totaled $225 million, up $42 million from $183 million in Q4 2024, reflecting strong receivables growth across our products, higher portfolio yields, and good credit performance. Managed receivables finished the year at $26.3 billion, up $1.6 billion or 6% from a year ago.
Speaker #9: $1.59 per diluted share was up 37% from $1.16 per diluted share in the fourth quarter of 2020 . For capital generation , the metric we use to manage and measure our business totaled $225 million , up $42 million from fourth quarter of 2020 .
Speaker #9: $1.59 per diluted share was up 37% from $1.16 per diluted share in the fourth quarter of 2020 . For capital generation , the metric we use to manage and measure our business totaled $225 million , up $42 million from fourth quarter in the For reflecting strong receivables $183 million across our products , higher yields and good portfolio performance .
Speaker #9: receivables finished the year at $26.3 billion , or 6% , from a year up $1.6 billion , ago . Fourth quarter were originations up 3% year over year , in line with recent seasonal trends .
Jenny Osterhout: Q4 originations were $3.6 billion, up 3% year-over-year, in line with recent seasonal trends. Consumer loan originations for the full year were up 8%. We are pleased with our growth trajectory. We have laid out before, our underwriting approach remains conservative, designed to generate a minimum 20% return on tangible equity, even with a stress overlay on losses. So while we continue to actively manage credit, we have also been growing through enhanced customer experience, personal loan product innovation, and our new products. Combined, this has helped to drive year-over-year annual originations and receivables growth, giving us solid momentum going into 2026. Turning to yield. Our Q4 consumer loan yield was 22.5%, up 26 basis points year-over-year.
Jenny Osterhout: Q4 originations were $3.6 billion, up 3% year-over-year, in line with recent seasonal trends. Consumer loan originations for the full year were up 8%. We are pleased with our growth trajectory. We have laid out before, our underwriting approach remains conservative, designed to generate a minimum 20% return on tangible equity, even with a stress overlay on losses. So while we continue to actively manage credit, we have also been growing through enhanced customer experience, personal loan product innovation, and our new products. Combined, this has helped to drive year-over-year annual originations and receivables growth, giving us solid momentum going into 2026. Turning to yield. Our Q4 consumer loan yield was 22.5%, up 26 basis points year-over-year.
Speaker #9: loan Consumer the full originations for year were up 8% . pleased with our growth We are We have laid before trajectory . our underwriting approach remains out , designed to generate a minimum 20% return on tangible equity , with a even stress overlay on losses .
Speaker #9: So while we actively manage credit, we have also been growing through enhanced customer experience, loan product innovation, and our new products.
Speaker #9: Combined . This has helped to drive year over year annual , personal and originations receivables , giving us solid into 2026 . yield Turning to our consumer loan fourth quarter yield 22.5% , was up 26 basis points year .
Jenny Osterhout: We continued to benefit from pricing actions taken over the past few years, with a partial offset from the increasing mix of our lower loss, lower yield auto finance receivables. As we look ahead to 2026, we expect consumer loan yield will remain around this level, assuming a steady product mix and competitive environment throughout the year. We also saw measurable improvement in our credit card revenue yield in the quarter, which was up over 100 basis points from Q4 2024. As we look to 2026, we expect to see this continue, supporting overall revenues as the book grows. Total revenue was $1.6 billion, up 8% compared to Q4 2024.
Jenny Osterhout: We continued to benefit from pricing actions taken over the past few years, with a partial offset from the increasing mix of our lower loss, lower yield auto finance receivables. As we look ahead to 2026, we expect consumer loan yield will remain around this level, assuming a steady product mix and competitive environment throughout the year. We also saw measurable improvement in our credit card revenue yield in the quarter, which was up over 100 basis points from Q4 2024. As we look to 2026, we expect to see this continue, supporting overall revenues as the book grows. Total revenue was $1.6 billion, up 8% compared to Q4 2024.
Speaker #9: We year over momentum going benefit from pricing actions to the taken over past few years , with a offset from the partial increasing mix of our lower loss , lower auto finance receivables yield .
Speaker #9: As we look ahead to 2026 , expect consumer loan yields will around remain we . Assuming this a steady mix and product year , we saw measurable also improvement in credit card revenue yield in the throughout the quarter , which was up over 100 basis points from the fourth quarter of 2020 .
Speaker #9: environment of income $1.4 billion increased 8% fourth quarter last year , driven receivables by and the growth improvements . I just from yield mentioned .
Speaker #9: For . As we look to 2026 , we expect to see this continue supporting overall revenues as the book grows . Total was $1.6 billion , up the fourth 8% compared to quarter of revenue 2020 .
Jenny Osterhout: Interest income of $1.4 billion increased 8% from Q4 last year, driven by receivables growth and the yield improvements I just mentioned. Other revenue of $195 million was up 10% from last year, primarily due to higher gain on sale related to our larger whole loan sale program and higher credit card revenue, as the card portfolio continues to grow. Full year revenue growth was 9% year-over-year. This was a function of the book growing, portfolio yields reflecting the pricing actions we started in 2023, and revenue increases as the card portfolio matures.
Jenny Osterhout: Interest income of $1.4 billion increased 8% from Q4 last year, driven by receivables growth and the yield improvements I just mentioned. Other revenue of $195 million was up 10% from last year, primarily due to higher gain on sale related to our larger whole loan sale program and higher credit card revenue, as the card portfolio continues to grow. Full year revenue growth was 9% year-over-year. This was a function of the book growing, portfolio yields reflecting the pricing actions we started in 2023, and revenue increases as the card portfolio matures.
Speaker #9: Other revenue of $195 million was up 10% from last year . Primarily due to higher sale related to our gain on larger whole loan program .
Speaker #9: sale credit card revenue . higher card portfolio As the grow , full year revenue growth was continues to year . This was a function of the book growing portfolio reflecting the pricing actions yields , we started 2023 and in revenue increases as the portfolio card .
Jenny Osterhout: Interest expense for the quarter was $323 million, up 4% compared to Q4 2024, driven by an increase in average debt to support our receivables growth, partially offset by a lower average interest rate, as our interest expense as a percentage of average net receivables fell to 5.2% this quarter, down from 5.3% in Q4 2024. Full year interest expense came in at 5.3%. Strong execution across our multiple financings this year, as well as opportunistic liability management, most notably, the refinancing of our 9% debt in Q3, enabled us to reduce our funding costs below our initial 2025 expectations.
Jenny Osterhout: Interest expense for the quarter was $323 million, up 4% compared to Q4 2024, driven by an increase in average debt to support our receivables growth, partially offset by a lower average interest rate, as our interest expense as a percentage of average net receivables fell to 5.2% this quarter, down from 5.3% in Q4 2024. Full year interest expense came in at 5.3%. Strong execution across our multiple financings this year, as well as opportunistic liability management, most notably, the refinancing of our 9% debt in Q3, enabled us to reduce our funding costs below our initial 2025 expectations.
Speaker #9: Interest for the expense matures was $323 million , up 4% compared to the fourth quarter of 2020 . driven by an increase in debt .
Speaker #9: average support To our Four , receivables growth offset by a , partially lower interest rate as average our interest expense of percentage average net as a fell And 5.2% this down quarter , from 5.3% in the fourth quarter of 2020 .
Speaker #9: receivables full year expense came in For at 5.3% . Strong execution across our multiple financings year , as well as opportunistic liability management .
Speaker #9: Most refinancing notably the of our 9% debt in the third quarter reduce our enabled us to funding below our initial 2025 expectations . Looking to 2026 , over 90% of our expected average debt is on the books already at fixed rates , have good and we line of sight to 2026 funding expect costs and interest expense as a percent of be receivables to similar to 2025 levels .
Jenny Osterhout: Looking to 2026, over 90% of our expected average debt is on the books already at fixed rates, and we have good line of sight to 2026 funding costs and expect interest expense as a % of receivables to be similar to 2025 levels. Q4 provision expense was $542 million, comprising net charge-offs of $492 million and a $50 million increase to our reserves, driven by the growth in our receivables during the quarter. Our loan loss reserve ratio of 11.5% was flat compared to both last quarter and last year. Policyholder benefits and claims expense for the quarter was $48 million, down modestly from $49 million in the Q4 last year.
Jenny Osterhout: Looking to 2026, over 90% of our expected average debt is on the books already at fixed rates, and we have good line of sight to 2026 funding costs and expect interest expense as a % of receivables to be similar to 2025 levels. Q4 provision expense was $542 million, comprising net charge-offs of $492 million and a $50 million increase to our reserves, driven by the growth in our receivables during the quarter. Our loan loss reserve ratio of 11.5% was flat compared to both last quarter and last year. Policyholder benefits and claims expense for the quarter was $48 million, down modestly from $49 million in the Q4 last year.
Speaker #9: Fourth quarter provision expense was comprising net offs of charge $542 million , $492 million and $50 million increase to our a reserves , driven by the growth in our receivables during the quarter .
Speaker #9: Our loan loss reserve of 11.5% was flat compared to both last quarter and last year . Policyholder benefits and claims expense for the quarter was $48 million , ratio modestly from $49 million in the fourth quarter last year .
Jenny Osterhout: As we look forward, we expect quarterly claims expense to increase slightly to the mid- to high-$50 million range due to growth in the book. Let's turn to credit, starting on slide 10. 30+ delinquency on 31 December 2024, excluding Foresight, was 5.65%, flat to last year's particularly strong performance. As shown on slide 11, we continue to see delinquency performance better than pre-pandemic benchmarks and in line with expectations, as 30+ delinquency increased 24 basis points quarter-over-quarter, below the pre-pandemic sequential increase of 33 basis points. You'll also note that 2024 outperformed our pre-COVID benchmarks, increasing only 8 basis points sequentially. This strong delinquency performance at the end of 2024 drove accelerated net charge-off improvement in 2025.
Jenny Osterhout: As we look forward, we expect quarterly claims expense to increase slightly to the mid- to high-$50 million range due to growth in the book. Let's turn to credit, starting on slide 10. 30+ delinquency on 31 December 2024, excluding Foresight, was 5.65%, flat to last year's particularly strong performance. As shown on slide 11, we continue to see delinquency performance better than pre-pandemic benchmarks and in line with expectations, as 30+ delinquency increased 24 basis points quarter-over-quarter, below the pre-pandemic sequential increase of 33 basis points. You'll also note that 2024 outperformed our pre-COVID benchmarks, increasing only 8 basis points sequentially. This strong delinquency performance at the end of 2024 drove accelerated net charge-off improvement in 2025.
Speaker #9: look forward , we quarterly expect claims to expense slightly to the mid to high $50 million range due to growth in the book .
Speaker #9: turn to credit . Let's Starting on slide ten . 30 plus delinquency on December 31st , excluding foresight , was 5.65% flat to last year's particularly strong performance , as shown on slide 11 .
Speaker #9: We continue to see delinquency performance better than pre-pandemic and benchmarks , in line with 30 plus as expectations increased 24 basis points over quarter below quarter the pre-pandemic sequential increase of points .
Speaker #9: You'll also 33 basis note 2024 outperformed our increasing pre-COVID only eight basis that points sequentially . This delinquency strong performance at the end of 2024 drove charge off accelerated net delinquency improvement 2025 , front book , while the which we define as consumer loan originations post August 2022 , credit tightening benchmarks , perform in line with expectations .
Jenny Osterhout: While the Front Book, which we define as consumer loan originations post-August 2022 credit tightening, continues to perform in line with expectations, the poor-performing Back Book remains a headwind. It is still 17% of our 30+ delinquency, despite comprising just 6% of the portfolio. At this point in time, we would typically expect the Back Book to make up about half as much in total delinquencies. This higher contribution to delinquency is due to the weaker performance of the Back Book, as well as pace of originations growth due to our conservative underwriting posture over the past several years, given the macroeconomic environment. Moving to net charge-offs for the quarter, as shown on slide 12. Fourth quarter C&I net charge-offs, which include the results from our small but growing credit card portfolio, were 7.9%, flat year-over-year.
Jenny Osterhout: While the Front Book, which we define as consumer loan originations post-August 2022 credit tightening, continues to perform in line with expectations, the poor-performing Back Book remains a headwind. It is still 17% of our 30+ delinquency, despite comprising just 6% of the portfolio. At this point in time, we would typically expect the Back Book to make up about half as much in total delinquencies. This higher contribution to delinquency is due to the weaker performance of the Back Book, as well as pace of originations growth due to our conservative underwriting posture over the past several years, given the macroeconomic environment. Moving to net charge-offs for the quarter, as shown on slide 12. Fourth quarter C&I net charge-offs, which include the results from our small but growing credit card portfolio, were 7.9%, flat year-over-year.
Speaker #9: The poor-performing back book remains a headwind. It is still 17% of our 30-plus delinquency. Despite comprising just 6% of the portfolio at this point in time, we typically expect the back book to make up about half as much in delinquencies. This higher delinquency contribution is due to the weaker performance of the back book, as well as the pace of originations and our more conservative posture in underwriting over the past several years.
Speaker #9: Given the past growth macroeconomic environment Moving to net . quarter , as shown on for the 12 . Fourth quarter net charge CNI offs , which include the from our small but slide growing credit card portfolio , were 7.9% flat over year .
Jenny Osterhout: These results were aided by strong recoveries in the quarter, in line with positive trends over the past few years. Recoveries grew 16% year-over-year to $89 million, representing 1.4% of receivables. For the full year, C&I net charge-offs declined by 46 basis points to 7.7%, towards the lower end of the guidance range we provided at the beginning of the year. Fourth quarter consumer loan net charge-offs, which exclude cards, came in at 7.6%, down 7 basis points year-over-year. For the full year, consumer loan net charge-offs declined by 63 basis points year-over-year, a steep decline from 2024. Credit card net charge-offs improved 22 basis points year-over-year to 17.1% in the quarter, so we are getting close to our target range.
Jenny Osterhout: These results were aided by strong recoveries in the quarter, in line with positive trends over the past few years. Recoveries grew 16% year-over-year to $89 million, representing 1.4% of receivables. For the full year, C&I net charge-offs declined by 46 basis points to 7.7%, towards the lower end of the guidance range we provided at the beginning of the year. Fourth quarter consumer loan net charge-offs, which exclude cards, came in at 7.6%, down 7 basis points year-over-year. For the full year, consumer loan net charge-offs declined by 63 basis points year-over-year, a steep decline from 2024. Credit card net charge-offs improved 22 basis points year-over-year to 17.1% in the quarter, so we are getting close to our target range.
Speaker #9: These results were aided by strong recoveries in the quarter , in line with positive trends over the past few years . Recoveries grew 16% year over year to $89 million , representing receivables for the full year , CNI 1.4% of net charge offs declined by 46 basis points to 7.7% end of towards the the guidance lower range .
Speaker #9: beginning We provided at the of the year . consumer Fourth quarter charge loan net offs , which exclude came in 7.6% , at down seven basis points over year year .
Speaker #9: full For the year , net charge offs declined 63 basis by over consumer loan A steep year decline from . Credit card net charge offs improved 22 basis points 2024 17.1% in the quarter .
Jenny Osterhout: In the Q4, we saw the credit card portfolio's 30+ delinquency performance improve by 83 basis points versus the prior year. This trend is a positive indicator of future performance that we expect will benefit card net charge-offs as we look into 2026. As a reminder, while we really like our credit card performance, it will pressure C&I losses higher as it becomes a bigger part of our overall portfolio. Loan loss reserves ended the quarter at $2.9 billion. Our loan loss reserve ratio remained flat, both sequentially and year-over-year, at 11.5%. The macroeconomic assumptions in our reserve calculation remain fairly consistent with prior periods and assume what we believe is an appropriate level of reserve, considering the continued uncertainty around inflation and unemployment in the quarters ahead.
Jenny Osterhout: In the Q4, we saw the credit card portfolio's 30+ delinquency performance improve by 83 basis points versus the prior year. This trend is a positive indicator of future performance that we expect will benefit card net charge-offs as we look into 2026. As a reminder, while we really like our credit card performance, it will pressure C&I losses higher as it becomes a bigger part of our overall portfolio. Loan loss reserves ended the quarter at $2.9 billion. Our loan loss reserve ratio remained flat, both sequentially and year-over-year, at 11.5%. The macroeconomic assumptions in our reserve calculation remain fairly consistent with prior periods and assume what we believe is an appropriate level of reserve, considering the continued uncertainty around inflation and unemployment in the quarters ahead.
Speaker #9: So, we are getting close to our target range in the quarter. We saw the card credit portfolio's 30-plus delinquency performance improved by 83 basis points versus prior, the fourth year points.
Speaker #9: This trend is a indicator of future positive performance that we expect will benefit card net charge offs . As we look into 2026 .
Speaker #9: As a reminder , while we really like our credit card performance , pressure it will losses higher CNI becomes a as it loss .
Speaker #9: Loan reserves ended the quarter Our loan $2.9 billion . loss remained ratio at flat sequentially and over year . year 11.5% . The assumptions , both in our reserve At calculation remain fairly with consistent prior assume what we periods and believe is an appropriate reserve of considering the around continued inflation and unemployment in the quarters ahead , we continue to assess and reserve levels expect that we reduce our coverage level as the uncertainty around the macro subsides and we continue to see improvement in the performance of the portfolio our evolving .
Jenny Osterhout: We will continue to assess reserve levels and expect that we would reduce our coverage level as the uncertainty around the macro subsides, and we continue to see improvement in the performance of the portfolio. Given our evolving product mix, we expect our reserve coverage to remain around the current level over the near term. Now let's turn to slide 13. Operating expenses were $443 million, up 5% compared to a year ago, as we continue to invest to drive future growth. The 6.7% OpEx ratio this quarter compares to 6.8% last year and was in line with expectations. We strategically invest in future growth through technology, data analytics, and our new products, while also closely managing costs to maximize profitability.
Jenny Osterhout: We will continue to assess reserve levels and expect that we would reduce our coverage level as the uncertainty around the macro subsides, and we continue to see improvement in the performance of the portfolio. Given our evolving product mix, we expect our reserve coverage to remain around the current level over the near term. Now let's turn to slide 13. Operating expenses were $443 million, up 5% compared to a year ago, as we continue to invest to drive future growth. The 6.7% OpEx ratio this quarter compares to 6.8% last year and was in line with expectations. We strategically invest in future growth through technology, data analytics, and our new products, while also closely managing costs to maximize profitability.
Speaker #9: Expect our reserve to remain around the current level over the near term. Now let's turn to slide 13. Operating expenses were $443 million, up 5% compared to a year ago.
Speaker #9: As we continue to invest to drive future growth, the 6.7% opex ratio this quarter compares to 6.8% last year and was in line with expectations.
Speaker #9: We strategically invest future in the technology , data analytics and our new products . While also managing costs maximize and profitability . We take the dual task of cost closely investment for the future as how we fundamental to operate .
Jenny Osterhout: We take the dual task of cost management and investment for the future as fundamental to how we operate the business, and we continue to see meaningful opportunities to invest while improving our operating expense ratio. As we look forward, we are confident that the business will continue to provide operating leverage in the years to come. Now turning to funding and our balance sheet on slide 14. During the quarter, we continued to optimize our balance sheet. We issued a $1 billion unsecured bond at 6.75%, maturing in September 2033. The offering was well subscribed as we continue to attract both new and returning investors to our program. A portion of the funds were used to redeem the remaining approximately $400 million of our 7.125% unsecured bonds, originally scheduled to mature in March of this year.
Jenny Osterhout: We take the dual task of cost management and investment for the future as fundamental to how we operate the business, and we continue to see meaningful opportunities to invest while improving our operating expense ratio. As we look forward, we are confident that the business will continue to provide operating leverage in the years to come. Now turning to funding and our balance sheet on slide 14. During the quarter, we continued to optimize our balance sheet. We issued a $1 billion unsecured bond at 6.75%, maturing in September 2033. The offering was well subscribed as we continue to attract both new and returning investors to our program. A portion of the funds were used to redeem the remaining approximately $400 million of our 7.125% unsecured bonds, originally scheduled to mature in March of this year.
Speaker #9: The business , and we continue to see meaningful opportunities to invest while improving our operating expense ratio . As we look forward , we are confident that the business will continue to operating leverage in the years come to .
Speaker #9: turning to Now , provide sheet on slide balance 14 . During the quarter , we continued to optimize balance sheet . We our issued a $1 billion unsecured bond at and six maturing three quarters percent , in September 2033 .
Speaker #9: The offering was subscribed as well attract new and returning investors to our both program continue to were used remaining approximately $400 million of our seven and one eighth percent unsecured bond .
Jenny Osterhout: This was redeemed last month. We now have no scheduled maturities until January 2027, giving us added flexibility on funding amount and timing in 2026. In 2025, in total, we issued $4 billion in unsecured bonds through five separate issuances and two revolving ABS issuances totaling $1.9 billion, with all offerings seeing healthy demand, resulting in attractive pricing. We believe our strong record of issuance across both the secured and unsecured market reinforces our position as an industry-leading issuer with best-in-class execution. We were able to take advantage of market conditions to reduce our secured funding mix throughout the course of the year to 50%, down from 59% in late 2024, while simultaneously reducing our interest expense as a percentage of receivables.
Jenny Osterhout: This was redeemed last month. We now have no scheduled maturities until January 2027, giving us added flexibility on funding amount and timing in 2026. In 2025, in total, we issued $4 billion in unsecured bonds through five separate issuances and two revolving ABS issuances totaling $1.9 billion, with all offerings seeing healthy demand, resulting in attractive pricing. We believe our strong record of issuance across both the secured and unsecured market reinforces our position as an industry-leading issuer with best-in-class execution. We were able to take advantage of market conditions to reduce our secured funding mix throughout the course of the year to 50%, down from 59% in late 2024, while simultaneously reducing our interest expense as a percentage of receivables.
Speaker #9: Scheduled to originally mature in March of this year, this was redeemed last month. We now have no scheduled maturities until January of 2027, giving us flexibility on funding amount and timing.
Speaker #9: In 2026 . In 2025 , in we issued $4 billion in unsecured bonds through five separate issuances and two revolving ABS issuances total , offerings seeing healthy demand , resulting in .
Speaker #9: We believe our strong record of attractive across both the all unsecured reinforces our markets an pricing industry leading issuer with best in class execution .
Speaker #9: able to We were take advantage of market conditions to reduce our secured funding throughout the course of the year mix down 50% , to from 2024 .
Speaker #9: able to We were take advantage of market conditions to reduce our secured funding throughout the course of the year mix down 50% , to from 2024 . in 59% While late interest expense reducing our as a receivables .
Jenny Osterhout: This balanced, secured mix provides us with more flexibility as we look at our funding options for 2026. Last quarter, we mentioned the expansion and extension of our forward flow program. The $2.4 billion program runs through mid-2028, with approximately half executed in 2026. As we look forward, higher loan sales in 2026 will impact our other revenue line item, with slightly higher quarterly gains on sale, and higher servicing income over time. We believe this program is indicative of the attractiveness of our differentiated business model and provides us additional diversification in funding, benefiting our overall public markets program. At the end of 2025, our bank lines totaled $7.5 billion, unchanged from last quarter, and our unencumbered receivables grew to $11.8 billion, up about $900 million from last quarter.
Jenny Osterhout: This balanced, secured mix provides us with more flexibility as we look at our funding options for 2026. Last quarter, we mentioned the expansion and extension of our forward flow program. The $2.4 billion program runs through mid-2028, with approximately half executed in 2026. As we look forward, higher loan sales in 2026 will impact our other revenue line item, with slightly higher quarterly gains on sale, and higher servicing income over time. We believe this program is indicative of the attractiveness of our differentiated business model and provides us additional diversification in funding, benefiting our overall public markets program. At the end of 2025, our bank lines totaled $7.5 billion, unchanged from last quarter, and our unencumbered receivables grew to $11.8 billion, up about $900 million from last quarter.
Speaker #9: simultaneously This balanced , percentage of secured provides us with mix more as we look at our funding options for and extension of our forward flow expansion program , the $2.4 billion runs through program mid 2028 with approximately half executed in 2026 .
Speaker #9: As we look forward , loan sales in higher our 2026 will impact revenue line other with slightly higher quarterly item gains sale income over time .
Speaker #9: We believe this is indicative of the program's attractiveness, of our on-model servicing, and provides us with additional diversification of funding, benefiting overall public markets.
Speaker #9: At the end of the quarter, bank lines were totaled and unchanged from $7.5 billion last quarter. Unencumbered grew receivables to $11.8 billion, up about a quarter.
Jenny Osterhout: Our net leverage at the end of Q4 was 5.4 times, comfortably within our targeted range of 4 to 6 times. Overall, we feel great about the strength of our balance sheet and ability to continue to opportunistically issue when markets are most attractive in the quarters ahead. I'll summarize 2025 by simply saying it was an outstanding year, as we met or exceeded our expectations across the board in a period of uncertainty. Now let me look ahead to 2026. We expect managed receivables to grow in the range of 6 to 9%, supported by continued innovation in our customer experience, personal loan offerings, and growth in our newer products. This assumes we continue to maintain our current conservative underwriting posture. We expect C&I net charge-offs in the range of 7.4 to 7.9%.
Jenny Osterhout: Our net leverage at the end of Q4 was 5.4 times, comfortably within our targeted range of 4 to 6 times. Overall, we feel great about the strength of our balance sheet and ability to continue to opportunistically issue when markets are most attractive in the quarters ahead. I'll summarize 2025 by simply saying it was an outstanding year, as we met or exceeded our expectations across the board in a period of uncertainty. Now let me look ahead to 2026. We expect managed receivables to grow in the range of 6 to 9%, supported by continued innovation in our customer experience, personal loan offerings, and growth in our newer products. This assumes we continue to maintain our current conservative underwriting posture. We expect C&I net charge-offs in the range of 7.4 to 7.9%.
Speaker #9: $900 million from last Our net leverage at the end of the fourth quarter was 5.4 times , comfortably within our range targeted of 4 to 6 times .
Speaker #9: feel great about Overall , we balance the strength of our ability to and to sheet continue opportunistically markets are most issue attractive in the quarters ahead .
Speaker #9: summarize 2025 by saying simply I'll it was outstanding As year . we met or exceeded an uncertainty . Now , let me look to 2026 .
Speaker #9: ahead expect managed grow in the range 6 to 9% , of by continued innovation in customer experience . Personal loan growth in our offerings and receivables to This assumes we products .
Speaker #9: maintain our current conservative posture continue to newer . expect We net range in the CNI charge offs of 7.4 to 7.9% . As a reminder , CNI loans and the growing credit consumer card .
Jenny Osterhout: As a reminder, C&I includes consumer loans and the growing credit card portfolio. Our guidance assumes the softness in the current labor market continues throughout 2026, along with persistent inflation. To the extent we see macro improvement, we could come in towards the lower end of our range. We expect losses to follow seasonal patterns above the range in the first half of the year and below the range in the second half. Finally, we expect the full-year OpEx ratio to be modestly better than last year at approximately 6.6%, as we continue to manage expenses and invest in our new products and digital capabilities that aid our customer interactions and benefit our team member productivity and effectiveness. All of this leads to our expectation for continued capital generation growth in 2026.
Jenny Osterhout: As a reminder, C&I includes consumer loans and the growing credit card portfolio. Our guidance assumes the softness in the current labor market continues throughout 2026, along with persistent inflation. To the extent we see macro improvement, we could come in towards the lower end of our range. We expect losses to follow seasonal patterns above the range in the first half of the year and below the range in the second half. Finally, we expect the full-year OpEx ratio to be modestly better than last year at approximately 6.6%, as we continue to manage expenses and invest in our new products and digital capabilities that aid our customer interactions and benefit our team member productivity and effectiveness. All of this leads to our expectation for continued capital generation growth in 2026.
Speaker #9: Our assumes the softness in the current market labor portfolio continues throughout 2026, with persistent inflation along the way. To the extent we see the improvement, we could come in towards the lower end of the range.
Speaker #9: guidance to losses follow , seasonal expect patterns We range in the first half of the below the range in second half . year and Finally , we the full year modestly better than last year at opex the ratio to be approximately 6.6% .
Speaker #9: As we manage continue to and new expenses invest products and digital in our that aid our customer interactions and capabilities team member productivity and effectiveness .
Jenny Osterhout: We see really good momentum looking into 2026 and beyond, and we're confident in our ability to drive shareholder value by continuing to provide value to our customers. So with that, let me turn the call back to Doug.
Jenny Osterhout: We see really good momentum looking into 2026 and beyond, and we're confident in our ability to drive shareholder value by continuing to provide value to our customers. So with that, let me turn the call back to Doug.
Speaker #9: of this leads expectation for All to our continued generation capital growth in looking momentum into good really and we're confident in our 2026 and ability to drive shareholder continuing to provide beyond , our value to customers with .
Doug Shulman: Thanks, Jenny. Let me end by saying we continue to feel great about the key drivers of our business. We're serving more customers through continued product innovation and the ongoing scaling of our auto finance and credit card businesses, positioning OneMain as the lender of choice for hardworking Americans. We continue to manage credit carefully through an evolving macroeconomic environment, driving market-leading risk-adjusted returns. We are investing to support growth and core capabilities across products while maintaining tight expense discipline. And our industry-leading balance sheet, that is highly diversified with a long liquidity runway, continues to be a key competitive differentiator. I've spoken before about the enduring franchise value we have created at OneMain. We built a lot of momentum over the last several years and are excited about continuing to drive capital generation growth and build shareholder value in 2026 and beyond.
Doug Shulman: Thanks, Jenny. Let me end by saying we continue to feel great about the key drivers of our business. We're serving more customers through continued product innovation and the ongoing scaling of our auto finance and credit card businesses, positioning OneMain as the lender of choice for hardworking Americans. We continue to manage credit carefully through an evolving macroeconomic environment, driving market-leading risk-adjusted returns. We are investing to support growth and core capabilities across products while maintaining tight expense discipline. And our industry-leading balance sheet, that is highly diversified with a long liquidity runway, continues to be a key competitive differentiator. I've spoken before about the enduring franchise value we have created at OneMain. We built a lot of momentum over the last several years and are excited about continuing to drive capital generation growth and build shareholder value in 2026 and beyond.
Speaker #9: that , let me call turn the back to So Doug .
Speaker #8: me end Let by saying we continue Jenny . feel to Thanks , of our business . We're more serving through continued customers innovation ongoing scaling of our auto and credit card businesses and the Positioning .
Speaker #8: One main as the finance lender of choice working . for hard Americans . We continue to manage credit carefully evolving through an environment , macroeconomic market driving leading , risk adjusted returns .
Speaker #8: We are investing support to products while maintaining tight expense and our balance leading highly is sheet that liquidity long with a runway be a competitive key discipline differentiator .
Speaker #8: I've continues to before about the enduring franchise have value we created at one main . We built a lot of momentum over the last several and are about years continuing to drive capital generation growth build and shareholder value in 2026 and beyond .
Doug Shulman: I'll close by offering my thanks to all of the OneMain team members for their great work that made 2025 such a success and for their ongoing commitment to our customers. With that, let me open it up for questions.
Doug Shulman: I'll close by offering my thanks to all of the OneMain team members for their great work that made 2025 such a success and for their ongoing commitment to our customers. With that, let me open it up for questions.
Speaker #8: by my thanks to all of the one main team offering members their great I'll close work that for made 2025 such a , and for success commitment to our customers With that , .
Operator: Thank you, Mr. Shulman. Ladies and gentlemen, the floor is now open for your questions. At this time, if you do have a question or comment, please press star one on your telephone. If at any point your question is answered, you may remove yourself from the queue by pressing star two. Again, we do ask that you pose your question, that you pick up your handset to provide optimal sound quality. We'll go first this morning to Moshe Orenbuch of TD Cowen. Moshe, please go ahead.
Operator: Thank you, Mr. Shulman. Ladies and gentlemen, the floor is now open for your questions. At this time, if you do have a question or comment, please press star one on your telephone. If at any point your question is answered, you may remove yourself from the queue by pressing star two. Again, we do ask that you pose your question, that you pick up your handset to provide optimal sound quality. We'll go first this morning to Moshe Orenbuch of TD Cowen. Moshe, please go ahead.
Speaker #8: open it up for questions ongoing .
Speaker #6: gentlemen , the Thank you , Mr. Schulman . and now open for your questions . At this time , if you do have a question comment , please or press star one on your telephone .
Speaker #6: If at any question is remove queue from the yourself answered , you may
Speaker #6: by Again , we do ask that you pose your question , that up your you pick handset provide to optimal sound . first this morning to Moshe Orenbuch We'll go of TD Cowan .
[Analyst] (TD Cowen): Great, thanks. I know that both you, Doug and Jenny, have talked a little bit about your outlook for credit. Doug, you had said kind of at a high level that you know, credit should continue to improve. Jenny, you had sort of said it will be a little worse than seasonal patterns in the first half of the year, a little better in the second half. I guess, is there a way to kind of tie this all together? I mean, you know, is it really just that 17% of delinquencies moving through, or are there other things going on, you know, kind of as you think about your guide for, you know, for the full year losses, kind of showing stability as opposed to improvement, for 2026?
Moshe Orenbuch: Great, thanks. I know that both you, Doug and Jenny, have talked a little bit about your outlook for credit. Doug, you had said kind of at a high level that you know, credit should continue to improve. Jenny, you had sort of said it will be a little worse than seasonal patterns in the first half of the year, a little better in the second half. I guess, is there a way to kind of tie this all together? I mean, you know, is it really just that 17% of delinquencies moving through, or are there other things going on, you know, kind of as you think about your guide for, you know, for the full year losses, kind of showing stability as opposed to improvement, for 2026?
Speaker #6: please go Moshe , ahead .
Speaker #10: Great . Thanks . I know their that both you , and have talked a little bit about your outlook for credit . Jenny you had said kind of at a high that level continue to improve .
Speaker #10: Jenny , you of said it will credit should be a little worse than seasonal patterns in the first half of the a year , half .
Speaker #10: little better in the I second guess , is there tie this all together ? I mean kind of , you know a way to just , is it really the delinquencies moving through , or other are there things going 17% of know , kind of on , you as you about think guide your for , for the full year losses kind of showing stability to that as opposed for 2026 ?
Jenny Osterhout: Thanks, Moshe. Let me chime in here. So part of this is 2025 was really a remarkable year. I mean, you can see that we really saw a major loss benefit. We talked about this, but the C&I net charge-offs coming down 46 basis points and consumer loan losses coming down 63 basis points. They're really coming off of the 2024, you know, higher losses. And so that's allowed us to generate a lot of capital and increase our cap gen by 33%. So we're coming down from there. And you know, we really like what we're underwriting. So if I then take that to looking forward, you know, we see the vintages in the front book performing in line with our expectations.
Jenny Osterhout: Thanks, Moshe. Let me chime in here. So part of this is 2025 was really a remarkable year. I mean, you can see that we really saw a major loss benefit. We talked about this, but the C&I net charge-offs coming down 46 basis points and consumer loan losses coming down 63 basis points. They're really coming off of the 2024, you know, higher losses. And so that's allowed us to generate a lot of capital and increase our cap gen by 33%. So we're coming down from there. And you know, we really like what we're underwriting. So if I then take that to looking forward, you know, we see the vintages in the front book performing in line with our expectations.
Speaker #9: Moshe . Let me let me chime in . Thanks , So I part is 2025 was really of this think a remarkable mean , you can see that we year .
Speaker #9: major loss benefit . We about I talked CNI net charge offs coming down the consumer loan losses coming down basis points . There coming really of off 63 the 2024 .
Speaker #9: know higher losses . And so that's allowed us to to generate of increase our a lot capital . Jen by 33% . So we're coming down from there .
Speaker #9: know higher losses . And so that's allowed us to to generate of increase our a lot capital . Jen by 33% . So we're coming down from there and we really know And underwriting .
Speaker #9: Like what we're then you to looking, I forward you take that see the know we the to front performing with our book in line expectations.
Jenny Osterhout: I talked a little bit about some of that pressure that we see from the Back Book, that's the pre-August 2022 Back Book, and how that's still outsized in terms of its contribution to delinquency and losses. And then the other piece to keep in mind for C&I is there's some impact on losses from cards. In 2026, it's adding about 10 basis points more than it did in 2025, which was about 35 basis points. So we are seeing some positive trajectory there. And then, you know, I just remind you that our loans target a 20% return on equity threshold. So we do see very good profitability when we look at the risk-adjusted returns. So that guide that we gave you gives you a range.
Jenny Osterhout: I talked a little bit about some of that pressure that we see from the Back Book, that's the pre-August 2022 Back Book, and how that's still outsized in terms of its contribution to delinquency and losses. And then the other piece to keep in mind for C&I is there's some impact on losses from cards. In 2026, it's adding about 10 basis points more than it did in 2025, which was about 35 basis points. So we are seeing some positive trajectory there. And then, you know, I just remind you that our loans target a 20% return on equity threshold. So we do see very good profitability when we look at the risk-adjusted returns. So that guide that we gave you gives you a range.
Speaker #9: I talked a little bit about some of that we see the from That's the back book . the , 2022 back Pre-august book .
Speaker #9: And that's still in terms of outsized contribution to CNI. And then the other piece to keep in mind for its CNI is there's some impact on losses from cards in 2026.
Speaker #9: It's adding about ten basis in points it did in 2025 , which was about 35 basis points . So we are some positive trajectory .
Speaker #9: It's adding about ten basis in points it did in 2025 , which was about 35 basis points . So we are some positive seeing There .
Speaker #9: And then , you know , I just remind you that our our our loans target at delinquency 20% return on we equity threshold .
Jenny Osterhout: It also assumes that soft unemployment and persistent inflation we spoke about earlier. And so to the extent the macro improves, we could see some benefit there. I also want to go back to, you know, I think we see it higher in the first half and lower in the second half. I wouldn't expect for it to see worse than sequential, just to go back to the beginning in your question.
Jenny Osterhout: It also assumes that soft unemployment and persistent inflation we spoke about earlier. And so to the extent the macro improves, we could see some benefit there. I also want to go back to, you know, I think we see it higher in the first half and lower in the second half. I wouldn't expect for it to see worse than sequential, just to go back to the beginning in your question.
Speaker #9: very good So when we look at the risk do see adjusted So that we gives you gave you gives you a It also range .
Speaker #9: returns . some want to go back I to I also see it think we higher in the half and first lower in the expect second half .
Speaker #9: That assumes soft unemployment and persistent inflation. We spoke about that. And so, the macro extent benefit we discussed earlier could see improves there.
Speaker #9: for it to see worse than sequential . Just to to the your beginning of the go back question .
[Analyst] (TD Cowen): Okay. All right, thanks. On a separate topic, you know, I think it was almost a year ago that you put in the application for the ILC. Assuming that is approved, can you talk a little bit about what you're going to be doing? You know, what are the first steps and what that's going to mean for pricing and loan growth?
Moshe Orenbuch: Okay. All right, thanks. On a separate topic, you know, I think it was almost a year ago that you put in the application for the ILC. Assuming that is approved, can you talk a little bit about what you're going to be doing? You know, what are the first steps and what that's going to mean for pricing and loan growth?
Speaker #10: Okay . All right . Thanks . On a on a separate , you know , I think it was topic ago almost a that you put in year the for the application ILC , assuming that approved .
Speaker #10: is Can you talk a little bit what you're about be going to ? You know , doing what are the first steps that's going to mean for for pricing and loan growth ?
Doug Shulman: Yeah. Yeah, you know, we, we applied for an ILC license. You've seen a couple have been granted this year, people who actually, you know, auto companies who had been there, quite a bit before us. And as I've said before, we think we have a very strong application. We think we're qualified to be a bank, and we're progressing through the application process. You know, I think what... You know, the timeline, I won't predict any timeline, whether we'll get it or not, and, you know, if we get it, when it would happen. So, the timeline would be, it would take about a year to set it up. And so, you know, any positive effects are probably a 2027 event, assuming, you know, something happened, this year.
Doug Shulman: Yeah. Yeah, you know, we, we applied for an ILC license. You've seen a couple have been granted this year, people who actually, you know, auto companies who had been there, quite a bit before us. And as I've said before, we think we have a very strong application. We think we're qualified to be a bank, and we're progressing through the application process. You know, I think what... You know, the timeline, I won't predict any timeline, whether we'll get it or not, and, you know, if we get it, when it would happen. So, the timeline would be, it would take about a year to set it up. And so, you know, any positive effects are probably a 2027 event, assuming, you know, something happened, this year.
Speaker #8: Yeah . Yeah . You know , we we applied for an ILC license . You've seen have been granted this year . People who , you know , auto companies who had actually there quite a a couple bit us .
Speaker #8: I've said And as before , we think we have a very strong application . We think we're to be bank a and progressing we're application process .
Speaker #8: You , I think you know , what the qualified I won't predict whether we'll timeline get it or not . And know , any if we when it happen .
Speaker #8: it the timeline would be it would take about a to set it up . And so know , you know , any effects are probably positive a 2027 event .
Doug Shulman: I do think it would be accretive to the strategy. I do think we would be able to serve more customers. I think we'd have a more standardized rate, structure, operational structure nationwide. We'd have our own bank, for our card business, and we'd have access to deposits, which would even further diversify our really strong, balance sheet. And so, you know, we have a really strong business plan that we feel great about without an ILC. This would be additive and accretive, to it, and we're, you know, very positive and hopeful it'll come to pass.
Doug Shulman: I do think it would be accretive to the strategy. I do think we would be able to serve more customers. I think we'd have a more standardized rate, structure, operational structure nationwide. We'd have our own bank, for our card business, and we'd have access to deposits, which would even further diversify our really strong, balance sheet. And so, you know, we have a really strong business plan that we feel great about without an ILC. This would be additive and accretive, to it, and we're, you know, very positive and hopeful it'll come to pass.
Speaker #8: You know, assuming something happened this year, I do think it would be the strategy. I think it’s accretive to do, and we would be able to serve more customers.
Speaker #8: I think we'd have a more standardized structure, rate would be structured. We'd have our own bank nationwide, our [platform] for card business, and we'd have access to even further, which would really strengthen our balance sheet.
Speaker #8: And know , , you we have a strong really plan that we feel great so about additive and This would to it . without an we're , you know And , very positive and hopeful it'll it'll come to pass
[Analyst] (TD Cowen): Thanks very much.
Moshe Orenbuch: Thanks very much.
Operator: Thank you. We go next now to John Hecht of Jefferies. John, please go ahead.
Operator: Thank you. We go next now to John Hecht of Jefferies. John, please go ahead.
Speaker #10: much very .
Jenny Osterhout: Good morning, and thanks for taking my questions.
John Hecht: Good morning, and thanks for taking my questions.
Speaker #6: Thank you. We next go to John Hecht of Jefferies. Please go ahead, John.
Doug Shulman: Good morning, John.
Doug Shulman: Good morning, John.
Jenny Osterhout: Thanks very much. You talked about rolling out, you know, the new, like, home merchandise-backed products, the Ally program. Are those programs in, you know, in products, are there pilot periods of those, or because they're different, you know, relative to, say, like, the credit card that you're going to roll them out pretty quickly? How do we think about that?
John Hecht: Thanks very much. You talked about rolling out, you know, the new, like, home merchandise-backed products, the Ally program. Are those programs in, you know, in products, are there pilot periods of those, or because they're different, you know, relative to, say, like, the credit card that you're going to roll them out pretty quickly? How do we think about that?
Speaker #11: morning and thanks for taking my Good . .
Speaker #8: Good
Speaker #8: Good morning .
Speaker #11: John talked
Speaker #11: you know , rolling out , . about merchandise backed Thanks very products , the ally programs , you know , in program products or there pilot periods of those or .
Doug Shulman: Yeah, look, all of our. It's two different things. The homeownership product is in our personal loan. Every time we roll something out, whether it's expanded debt consolidation, even pre-populating VINs in auto for our customers or our streamlined renewals or our link to paycheck, we always pilot them and are looking to see, you know, are. You know, we have certain models that say what we'll do to customer pull-through rate, you know, how will the credit perform? How's the pricing in relationship to the credit? Because as you know, we just manage risk-adjusted returns. And so for the homeowner product, we'll launch it as a pilot like we do for everything else, make sure it's performing well, and if it is performing well, we'll do a full rollout.
Doug Shulman: Yeah, look, all of our. It's two different things. The homeownership product is in our personal loan. Every time we roll something out, whether it's expanded debt consolidation, even pre-populating VINs in auto for our customers or our streamlined renewals or our link to paycheck, we always pilot them and are looking to see, you know, are. You know, we have certain models that say what we'll do to customer pull-through rate, you know, how will the credit perform? How's the pricing in relationship to the credit? Because as you know, we just manage risk-adjusted returns. And so for the homeowner product, we'll launch it as a pilot like we do for everything else, make sure it's performing well, and if it is performing well, we'll do a full rollout.
Speaker #8: product personal in our Every time we is out , whether it's something debt consolidation , even pre-populating loan . Vinz and Auto for our
Speaker #8: to our link our we paycheck , always pilot them and are looking see , you know , are or our our you know , we have certain models that do to customer , say , what rate pull through , how will credit , what perform ?
Speaker #8: pricing the and relationship to the will credit ? Because as you know , we just we manage the risk adjusted And so for the homeowner product , we launch , we'll launch the pilot like we do for else .
Doug Shulman: I think the Ally partnership is just getting started. You know, that's a partnership where an auto dealer gets to choose where it sends applications. It sends one to Ally, and we're now in the pass-through, which is basically a turndown program. Ally doesn't take it, but we're now one of their partners in the pass-through. We started with dealers that we already had relationships with, so we already had a contract, so we could book loans with, and then we're going to be rolling it out further. So that's probably, you know, I'd think of that as. It's not a pilot, but it's at the very beginning of a partnership.
Doug Shulman: I think the Ally partnership is just getting started. You know, that's a partnership where an auto dealer gets to choose where it sends applications. It sends one to Ally, and we're now in the pass-through, which is basically a turndown program. Ally doesn't take it, but we're now one of their partners in the pass-through. We started with dealers that we already had relationships with, so we already had a contract, so we could book loans with, and then we're going to be rolling it out further. So that's probably, you know, I'd think of that as. It's not a pilot, but it's at the very beginning of a partnership.
Speaker #8: everything think performing well . And if it is it's we'll do well , a full rollout think . partnership is just I . You a partnership where know , that's an sends an auto auto dealer gets to choose sends applications it as a where it ally , and one to sends we're now in the pass through , is basically which a Ally doesn't take but program .
Speaker #8: we're now In in partners . the through one of their it , started with past , dealers we relationships we already had a with .
Speaker #8: already had loans book . And then we're going to with further . So that's probably , you know , of that I'd think as it out be rolling it's not a pilot , but it's contract beginning of a partnership .
Doug Shulman: Any partnership, you know, you want to roll out in a paced and responsible fashion.
Doug Shulman: Any partnership, you know, you want to roll out in a paced and responsible fashion.
Speaker #8: And any partnership , you know , you want to roll out paste in responsible that fashion a .
[Analyst] (Aiera): Okay. And then, we all know that a debt consolidation is one of the primary, I guess, use cases of the product. I'm wondering, what are other main use, you know, I guess, drivers of demand, and what do those tell you about, call it, the state of your borrower?
John Hecht: Okay. And then, we all know that a debt consolidation is one of the primary, I guess, use cases of the product. I'm wondering, what are other main use, you know, I guess, drivers of demand, and what do those tell you about, call it, the state of your borrower?
Speaker #11: main , you drivers of demand is , tell what do those you about call it the state of your borrower .
Doug Shulman: Yeah, I mean, look, the demand's been pretty similar. About 1/3 is usually debt consolidation, where people are taking a whole bunch of other credit they have, consolidating it onto a single amortizing loan, getting control of their, you know, finances, and getting, you know, as we told you, usually, you know, our average customer has about a 25% decrease in their monthly payment when they do debt consolidation, with us. There's always a chunk of customers, and it hasn't changed a lot, who for emergency needs, you know, whether it's a hot water heater, brakes, or they got car repairs or something else like that. And then there's a whole set of customers who are using it for discretionary.
Doug Shulman: Yeah, I mean, look, the demand's been pretty similar. About 1/3 is usually debt consolidation, where people are taking a whole bunch of other credit they have, consolidating it onto a single amortizing loan, getting control of their, you know, finances, and getting, you know, as we told you, usually, you know, our average customer has about a 25% decrease in their monthly payment when they do debt consolidation, with us. There's always a chunk of customers, and it hasn't changed a lot, who for emergency needs, you know, whether it's a hot water heater, brakes, or they got car repairs or something else like that. And then there's a whole set of customers who are using it for discretionary.
Speaker #8: Yeah , look demand has been similar , the . pretty consolidation where people are taking a whole bunch of credit . other They third is have , consolidating it onto a single getting loan , amortizing their I mean , , finances and getting of we as , as told you , know , our average customer has about usually , you a 25% decrease in their monthly payment when they do debt their in with us consolidation , there's always a chunk of customers and hasn't it lot .
Speaker #8: Who changed a for emergency know , whether it's hot water needs . You breaks or got car they repairs something else like that , and or then there's a customers who whole set of are using know , want customers who , you know , we have to pay discretionary .
Doug Shulman: You know, we have customers who, you know, want to pay for their granddaughter's horseback riding, or they want to take a vacation, or they're rolling over a loan from somewhere else. And so I don't think there's any great. You know, there hasn't been a lot of changes, John, and so I don't think it's stating anything new about, you know, I don't think the use of funds is stating anything new about our customer right now.
Doug Shulman: You know, we have customers who, you know, want to pay for their granddaughter's horseback riding, or they want to take a vacation, or they're rolling over a loan from somewhere else. And so I don't think there's any great. You know, there hasn't been a lot of changes, John, and so I don't think it's stating anything new about, you know, I don't think the use of funds is stating anything new about our customer right now.
Speaker #8: for granddaughter's horseback riding their You they want to take a vacation or they're rolling a loan over from somewhere so I don't else .
Speaker #8: And great , you know , there hasn't been a any lot of changes , John . I don't And so think it's stating anything new about , you know , I don't think the use of funds is anything new saying .
[Analyst] (Aiera): Okay. Thanks for the color. Appreciate it.
John Hecht: Okay. Thanks for the color. Appreciate it.
Operator: Thank you. We'll go next now to Arren Cyganovich of Truist Securities. Arren, please go ahead.
Operator: Thank you. We'll go next now to Arren Cyganovich of Truist Securities. Arren, please go ahead.
Speaker #11: it Appreciate .
[Analyst] (Truist Securities): Thank you. In terms of loan growth, the originations for the quarter, year-over-year, were 3%, and total loan growth, 6%, but the guide for 2026 is 6% to 9%. What, what's some of the optimism that you're laying in there while you're still layering, you know, that 30% kind of credit overlay?
Arren Cyganovich: Thank you. In terms of loan growth, the originations for the quarter, year-over-year, were 3%, and total loan growth, 6%, but the guide for 2026 is 6% to 9%. What, what's some of the optimism that you're laying in there while you're still layering, you know, that 30% kind of credit overlay?
Speaker #6: Thank next . you . Aaron We'll go Now to of Truist Securities . Aaron , please go ahead .
Speaker #12: you Thank . In growth , the of loan originations for terms quarter year over year were loan growth of 3% in total But the guide 6% .
Speaker #12: for 26 is 6 to 9% . What what the optimism that you're laying in the there while you're layering , you still that know , 30% kind of overlay credit .
Jenny Osterhout: I'll... Thanks for the question. So you're, you're right. In terms of the quarter, we saw 3%. You know, really, if you look at the whole year, we had 8% origination growth in 2025. All of that also-- you know, that 8% also had pretty tight underwriting standards. So as we look to next year, we did assume that same macro environment, and we assumed we kept those underwriting standards. It's really some of the efforts that Doug just talked about in terms of the, the innovation on the personal loan product, but I'd also say it's team member effectiveness.
Jenny Osterhout: I'll... Thanks for the question. So you're, you're right. In terms of the quarter, we saw 3%. You know, really, if you look at the whole year, we had 8% origination growth in 2025. All of that also-- you know, that 8% also had pretty tight underwriting standards. So as we look to next year, we did assume that same macro environment, and we assumed we kept those underwriting standards. It's really some of the efforts that Doug just talked about in terms of the, the innovation on the personal loan product, but I'd also say it's team member effectiveness.
Speaker #9: the question Thanks for . So you're you're right quarter , we of the You know , really if in terms at the whole year , we origination in 2025 .
Speaker #9: of that . You know , 8% also had pretty tight had 8% underwriting standards . So as we look to that year , we next that did assume macro environment .
Speaker #9: And we assumed we kept all those underwriting standards. It's really some of the, that Doug just referenced about, in terms of the innovation on the personal product, but also, loans say, it's team effectiveness.
Jenny Osterhout: So, you know, as we look at ways to improve the productivity of our team members and help them to find things faster and be able to help customers, you know, make sure they get the right offer, look at the right offer, and how we can digitize some of that. And then there's also the efforts we've been working on in terms of our, our new products and their share of the book. You know, if we look at 2025, the new products contributed about 42% of our growth. So we're expecting continued growth in, in the new products as well as for next year. So, you know, when you pull that all together, it's driving our expectations of that, that guide of 6% to 9% for 2026.
Jenny Osterhout: So, you know, as we look at ways to improve the productivity of our team members and help them to find things faster and be able to help customers, you know, make sure they get the right offer, look at the right offer, and how we can digitize some of that. And then there's also the efforts we've been working on in terms of our, our new products and their share of the book. You know, if we look at 2025, the new products contributed about 42% of our growth. So we're expecting continued growth in, in the new products as well as for next year. So, you know, when you pull that all together, it's driving our expectations of that, that guide of 6% to 9% for 2026.
Speaker #9: You know, as we've said, so, look at ways to improve productivity of our team members and help them do things faster, and be able to make sure they get customers the right find, offer the right—look at that, can, how we offer some of, digitize that.
Speaker #9: then help also the efforts working on terms of our our new in and share book . You we their know , if look at 2025 , the contributed we've been about new growth .
Speaker #9: So we're products continued expecting products as in the new well . As for next year . products you So , know , when you pull that together , it's growth all that of the guide of 6 to 9% And for 2026 .
Jenny Osterhout: I'd just say, you know, growth is an outcome for us. We are always looking to meet those return hurdles that I mentioned before, so above the 20% return on tangible equity. And we really see opportunities next year. You know, we work on those, we always have. I like to think of it almost like R&D going. And so I think really what you're seeing is the output of all those behind-the-scenes efforts that we've had going in the background this year.
Jenny Osterhout: I'd just say, you know, growth is an outcome for us. We are always looking to meet those return hurdles that I mentioned before, so above the 20% return on tangible equity. And we really see opportunities next year. You know, we work on those, we always have. I like to think of it almost like R&D going. And so I think really what you're seeing is the output of all those behind-the-scenes efforts that we've had going in the background this year.
Speaker #9: I just growth know , us . outcome for We are always those meet return is an hurdles that I mentioned So before . the 20% return on tangible looking to .
Speaker #9: I just want to say, you know, as we look to grow—us, our outcome—we are always looking to meet those hurdles that I mentioned before. So, the 20% return on tangible is really what we're looking to see next year.
Speaker #9: You know , we work those opportunities . We always have . I like on almost like going . so I think really what R&D you're the output of all seeing is behind the scenes efforts that those we've had going in the background .
[Analyst] (Truist Securities): Got it. Thanks. And then in terms of capital return, the share repurchases were nicely higher in the quarter, and you have the larger program that you authorized recently. You know, can you talk a little bit about, you know, share repurchase pace? Is that going to be up notably in 2026?
Arren Cyganovich: Got it. Thanks. And then in terms of capital return, the share repurchases were nicely higher in the quarter, and you have the larger program that you authorized recently. You know, can you talk a little bit about, you know, share repurchase pace? Is that going to be up notably in 2026?
Speaker #9: year .
Speaker #12: then in Thanks .
Speaker #12: the share repurchases return , capital nicely higher quarter . And were the the you have terms program that you authorized recently . Can you talk a larger little bit about , you know , repurchase pace ?
Doug Shulman: Yeah. Look, we as I mentioned before, we're very committed to our healthy dividend. But we think, you know, unless we see another use of capital, the incremental capital generation, and the excess capital, our bias is towards share repurchase. You know, we never predict exactly what it'll be. You know, as we mentioned, you know, Q4 was double what all of 2024 was. I think, you know, you can do the math on how much capital we're generating, which is a lot more than the last couple of years. In 2025, we did, and, you know, we said we think we're going to generate more this year. Take out the dividend, the amount of capital we need for growth and for expense and investing in the business.
Doug Shulman: Yeah. Look, we as I mentioned before, we're very committed to our healthy dividend. But we think, you know, unless we see another use of capital, the incremental capital generation, and the excess capital, our bias is towards share repurchase. You know, we never predict exactly what it'll be. You know, as we mentioned, you know, Q4 was double what all of 2024 was. I think, you know, you can do the math on how much capital we're generating, which is a lot more than the last couple of years. In 2025, we did, and, you know, we said we think we're going to generate more this year. Take out the dividend, the amount of capital we need for growth and for expense and investing in the business.
Speaker #12: Is that going to be up notably in 2026 ?
Speaker #8: Yeah .
Speaker #8: we Look , This before , we're as as I very committed our healthy dividend to . And but we think , you know , unless we see mentioned another use of capital , the capital generation and incremental excess the capital , our toward repurchase , you share know , we biases predict never what it'll be .
Speaker #8: You know , as we mentioned , you know , fourth quarter was double what all of 2024 was . I know , think , you you can do the math how much on capital will which is generating , more than the last years .
Speaker #8: In And , you know , we we couple of this year to generate we did . . Take out the dividend . The the of amount we need for capital and for expense and investing in the And business .
Doug Shulman: So, you know, our bias, we'll make decisions, you know, on an ongoing basis, is to put the majority of the rest of that into share repurchases.
Doug Shulman: So, you know, our bias, we'll make decisions, you know, on an ongoing basis, is to put the majority of the rest of that into share repurchases.
Speaker #8: so , you know , bias will make decisions , you our a on know , on ongoing share basis is to put the majority of the rest of that share into an .
[Analyst] (Truist Securities): Thank you.
Arren Cyganovich: Thank you.
Operator: Thank you. We'll go next now to Mihir Bhatia of Bank of America. Mihir, please go ahead.
Operator: Thank you. We'll go next now to Mihir Bhatia of Bank of America. Mihir, please go ahead.
Speaker #12: Thank you .
[Analyst] (Bank of America): Good morning. Thank you for taking my question.
Mihir Bhatia: Good morning. Thank you for taking my question.
Speaker #6: Thank you . We'll go next . Now to Mahir of Bank of My hair . Please go America . ahead
Operator: Morning, Mihir.
Doug Shulman: Morning, Mihir.
[Analyst] (Bank of America): Morning. I just wanted to ask about tax refunds. You know, a lot of people are obviously calling for higher tax refunds this year. How are you thinking about tax refunds? Is that in your guide? And if I can just ask, on that topic, can you just talk about the implications if you get higher refunds? If we do see higher tax refunds on your customer base, would that be, like, both on the credit and on the, like, loan demand side, if there is any, typically? Thank you.
Mihir Bhatia: Morning. I just wanted to ask about tax refunds. You know, a lot of people are obviously calling for higher tax refunds this year. How are you thinking about tax refunds? Is that in your guide? And if I can just ask, on that topic, can you just talk about the implications if you get higher refunds? If we do see higher tax refunds on your customer base, would that be, like, both on the credit and on the, like, loan demand side, if there is any, typically? Thank you.
Speaker #13: Thank you for taking
Speaker #13: question wanted to ask about my . Question I I just . Good tax refunds . You know , a lot of people are higher tax for refunds this are you thinking tax refunds ?
Speaker #13: in your about guide ? year . And if I can How on that topic , can you just talk ask you get higher refunds , if we just higher tax do refunds on your customer like both that , would credit and be on the ?
Speaker #13: in your about guide ? year . And if I can How on that topic , can you just talk ask you get higher refunds , if we just higher tax do refunds on your customer like both that , would credit and be on the on the any ?
Jenny Osterhout: Yep. So tax season is obviously a huge focus area for us. I mean, it's a driver of our credit performance and drives that normal seasonality that you see, where refunds typically improve delinquencies in the first quarter and drive losses down into their seasonal low in the third quarter. We don't have an expectation yet for what's gonna come this tax return season. It just began, and really, for us, to the extent we see those returns come in better than expected, that would bring you into the lower end of our range. So that should give you some sense sort of where it would take us.
Jenny Osterhout: Yep. So tax season is obviously a huge focus area for us. I mean, it's a driver of our credit performance and drives that normal seasonality that you see, where refunds typically improve delinquencies in the first quarter and drive losses down into their seasonal low in the third quarter. We don't have an expectation yet for what's gonna come this tax return season. It just began, and really, for us, to the extent we see those returns come in better than expected, that would bring you into the lower end of our range. So that should give you some sense sort of where it would take us.
Speaker #13: Typically , is you .
Speaker #13: thank Yep
Speaker #9: . So Is that obviously a is huge focus area for us . I mean
Speaker #9: . So Is that obviously a is huge focus area for us . I mean tax credit driver of demand side ? performance and normal drives that you see seasonality that refunds where typically improve the first drive losses delinquencies in down into their seasonal low in the third quarter have an yet for expectation to come . .
Speaker #9: . So Is that obviously a is huge focus area for us . I mean tax credit driver of demand side ? performance and normal drives that you see seasonality that refunds where typically improve the first drive losses delinquencies in down into their seasonal low in the third quarter have an yet for expectation to come .
Speaker #9: don't
Speaker #9: This return season, the quarter began, and really for us, to the extent we see those returns come in better than expected, that would bring you—we would be into the lower end of the range.
[Analyst] (Bank of America): And then just on the loan demand, is there any loan demand side impact of-
Mihir Bhatia: And then just on the loan demand, is there any loan demand side impact of-
Speaker #9: So that should, in some sense, give you what you would take as tax for us. Where it—
Jenny Osterhout: Yes, that's fair. So we, we do typically see lower demand in the first quarter, and some of that is driven by tax returns. You know, I think, again, we talked about the growth that we're expecting, and a lot of that growth being driven by either new product innovation on the personal loan side or in our newer products, in auto and credit cards, advancements that we're making there. So, you know, I'm not expecting, you know, if you saw an increase in tax return season, I'm not sure that I would expect for it to really mute growth too much.
Jenny Osterhout: Yes, that's fair. So we, we do typically see lower demand in the first quarter, and some of that is driven by tax returns. You know, I think, again, we talked about the growth that we're expecting, and a lot of that growth being driven by either new product innovation on the personal loan side or in our newer products, in auto and credit cards, advancements that we're making there. So, you know, I'm not expecting, you know, if you saw an increase in tax return season, I'm not sure that I would expect for it to really mute growth too much.
Speaker #8: Okay .
Speaker #13: And , really interest you talked yield because about . already . Jenny And card product , some just given of the newer . products that But on are coming , anything you expense us Nim interest trend year this .
Speaker #13: Any side demand impact loan.
Speaker #9: That's Yes . fair . So we we do typically see lower in the first quarter . And demand driven by is again tax talked we our know I think the growth that we're expecting .
Speaker #9: That's Yes . fair . So we we do typically see lower in the first quarter . And demand driven by returns . I you
Speaker #9: lot of that growth being by either new product innovation personal loan or side on the in auto and cards , newer advancements that we're making So , credit there .
Speaker #9: you know , you know , if you saw an increase in tax return season , sure that to really I'm not expect for it mute growth too I would .
Speaker #9: you know , you know , if you saw an increase in tax return season , sure that to really I'm not expect for it mute growth too I would much
[Analyst] (Bank of America): Got it. And then if I can ask, on NIM or really interest yield, because you talked about interest expense already, Jenny. But just given the card products, some of the newer products that are coming on, anything, you can give us on just how we should expect interest yields to trend this year?
Mihir Bhatia: Got it. And then if I can ask, on NIM or really interest yield, because you talked about interest expense already, Jenny. But just given the card products, some of the newer products that are coming on, anything, you can give us on just how we should expect interest yields to trend this year?
Speaker #13: it Got then if can
Speaker #13: it Got then if can ask
Jenny Osterhout: So consumer loan yield today is at 22.5%. That's up about 26 basis points from last year for the in the fourth quarter. You know, and if I look at for the year, for 2025 as a whole, we were up 43 basis points. So you're, you're gonna get some benefit from those, from those yields going up. You know, dependent on product mix, it's, it's gonna determine what our yields will be going forward. Auto comes with lower yields, but obviously comes also with that better-
Jenny Osterhout: So consumer loan yield today is at 22.5%. That's up about 26 basis points from last year for the in the fourth quarter. You know, and if I look at for the year, for 2025 as a whole, we were up 43 basis points. So you're, you're gonna get some benefit from those, from those yields going up. You know, dependent on product mix, it's, it's gonna determine what our yields will be going forward. Auto comes with lower yields, but obviously comes also with that better-
Speaker #9: So yeah , consumer loan yield today is at 22.5% . That's up about 26 basis points last from year for I'm not in the fourth quarter .
Speaker #9: the year for whole , we 2025 as a were 43 basis expecting , up points . So you're yields to going to get some you're benefit from those from those going up .
Speaker #9: And so you and if I look at
Speaker #9: Yields, you know, are dependent on product mix. It's going to determine what our yields will be going forward. Auto comes with lower yields.
[Analyst] (Bank of America): Okay.
Mihir Bhatia: Okay.
Jenny Osterhout: -credit performance.
Jenny Osterhout: -credit performance.
[Analyst] (Bank of America): Got it.
Mihir Bhatia: Got it.
Jenny Osterhout: We've seen most of the gain that we've had from that increased pricing that I mentioned earlier since mid-2023, and we really like where our yields are. So I think the risk-adjusted returns that we're generating. So I really think that the yields going forward, I'd expect something similar to what we have today.
Jenny Osterhout: We've seen most of the gain that we've had from that increased pricing that I mentioned earlier since mid-2023, and we really like where our yields are. So I think the risk-adjusted returns that we're generating. So I really think that the yields going forward, I'd expect something similar to what we have today.
Speaker #9: But obviously better with that credit performance I we've gain that most of the had from we've increased that that I mentioned earlier . Since mid 2023 .
Speaker #9: And we really like where yields are . So our I think adjusted and the risk that we're returns generating . So I really think that the yields for the go forward , I'd comes also something expect similar to what we have today .
[Analyst] (Bank of America): Got it. Thank you for taking my questions.
Mihir Bhatia: Got it. Thank you for taking my questions.
Operator: Thank you. We go next now to Mark DeVries with Deutsche Bank. Mark, please go ahead.
Operator: Thank you. We go next now to Mark DeVries with Deutsche Bank. Mark, please go ahead.
Speaker #13: Thank you questions my .
[Analyst] (Deutsche Bank): Yeah, thanks. I have a related follow-up to the last question. Jenny, if you can just talk about the decision to kind of drop the revenue growth guide from your full year guidance. It sounds like, you know, from a yield perspective and an interest expense perspective, you expect that to be flat, so spreads kind of unchanged. Should we generally expect revenue growth to kind of track your managed receivable growth guidance, or is there something about kind of the ramping up of the pass-through that could create a little bit more lumpiness in revenues relative to just kind of the receivables growth?
Mark DeVries: Yeah, thanks. I have a related follow-up to the last question. Jenny, if you can just talk about the decision to kind of drop the revenue growth guide from your full year guidance. It sounds like, you know, from a yield perspective and an interest expense perspective, you expect that to be flat, so spreads kind of unchanged. Should we generally expect revenue growth to kind of track your managed receivable growth guidance, or is there something about kind of the ramping up of the pass-through that could create a little bit more lumpiness in revenues relative to just kind of the receivables growth?
Speaker #6: go Thank you . We Mark to DeVries with Deutsche Mark ,
Speaker #14: Thanks . I have
Speaker #14: a related follow the last . Yeah .
Speaker #14: question up to . Jenny , if you could decision to kind of drop the revenue just talk growth
Speaker #14: question up to . Jenny , if you could decision to kind of drop the revenue just talk growth guide about the year please go it sounds like , you know , for taking interest expense perspective , you that to be flat .
Speaker #14: So spreads kind of expect unchanged . Should generally we expect revenue growth to kind of track your next now managed guidance . Or your growth is there something about kind of the ramping up of the pass through that could create a little bit more in revenues relative to just kind of the receivables growth ?
Jenny Osterhout: Yep. So you're right. I think we gave you all the pieces, but we didn't sort of cook it for you. So, we had really strong revenue growth in this year, so that 9.3% revenue growth, and that was driven by both the portfolio growth and those improving yields I just talked about. So then if I just talk about the pieces that we, we've given you, and I'll tick through them, but it's very similar to what you mentioned. So it's that flat yield year on year. You're basically gonna see revenues rise with the asset growth, so with the 6 to 9% managed receivables.
Jenny Osterhout: Yep. So you're right. I think we gave you all the pieces, but we didn't sort of cook it for you. So, we had really strong revenue growth in this year, so that 9.3% revenue growth, and that was driven by both the portfolio growth and those improving yields I just talked about. So then if I just talk about the pieces that we, we've given you, and I'll tick through them, but it's very similar to what you mentioned. So it's that flat yield year on year. You're basically gonna see revenues rise with the asset growth, so with the 6 to 9% managed receivables.
Speaker #15: Yeah
Speaker #15: .
Speaker #9: So you're right . I of think but we all the gave you we cook it for you . So we had really revenue pieces , growth in didn't sort strong this So year .
Speaker #9: that 9.3% revenue growth and that was driven by portfolio growth and those improving yields . I just talked about . So then if I just talk about the pieces we we talk through given you and I'll them , but it's very what you mentioned receivable .
Speaker #9: flat similar to So on year yield . You're revenues it's that asset So with the 6 to 9% managed year receivables , one thing to consider , you know , we whole program that I mentioned which gives a little bit also is of benefit revenues , also have that it's about loan sale growing to the but it's 2.4 billion in 2026 .
Jenny Osterhout: One thing to consider is, you know, we also have that whole loan sale program that I mentioned, which gives a little bit of benefit to revenues, but it's also growing to about... It's about half of the $2.4 billion in 2026. So you need to think about that and think about the on-balance sheet growth in terms of the revenue growth, and that should give you a pretty good sense of where it's going.
Jenny Osterhout: One thing to consider is, you know, we also have that whole loan sale program that I mentioned, which gives a little bit of benefit to revenues, but it's also growing to about... It's about half of the $2.4 billion in 2026. So you need to think about that and think about the on-balance sheet growth in terms of the revenue growth, and that should give you a pretty good sense of where it's going.
Speaker #9: So you need to think and that think on sheet growth in terms about to terms of the revenue balance And that growth . that a pretty good should give you sense of
[Analyst] (Deutsche Bank): Okay, got it. And then I had a separate question about, you know, the whole loan sales, and how you think about that longer term. I understand that it's like a nice funding diversification strategy, but, you know, to your credit, you guys have built very strong liquidity, a lot of funding flexibility. You know, how do you think about just kind of giving up some of those returns versus just keeping them and having confidence in your ability to fund, just, you know, through the unsecured markets longer term?
Mark DeVries: Okay, got it. And then I had a separate question about, you know, the whole loan sales, and how you think about that longer term. I understand that it's like a nice funding diversification strategy, but, you know, to your credit, you guys have built very strong liquidity, a lot of funding flexibility. You know, how do you think about just kind of giving up some of those returns versus just keeping them and having confidence in your ability to fund, just, you know, through the unsecured markets longer term?
Speaker #14: it .
Speaker #14: had question And then about separate , you know , the whole you think Got about that longer term . I a that it's like a going nice understand diversification strategy .
Speaker #14: had question And then about separate , you know , the whole you think Got about that longer term . I a that it's like a going nice understand
Speaker #14: credit where , you guys have built very strong liquidity . A lot funding flexibility of . How do you think about just kind of up some of those .
Jenny Osterhout: We think a lot about it. You're right. I mean, I think we see we have great access to capital in the public markets, and I think you can really see that this year. I mean, it was a pretty remarkable year with that $5.9 billion that we were able to raise. But we always look at opportunities. We think of the whole loan sale program as a way to provide funding flexibility. And so really, when we look at it, we're looking at the economics and the terms to make sure it makes sense for us.
Jenny Osterhout: We think a lot about it. You're right. I mean, I think we see we have great access to capital in the public markets, and I think you can really see that this year. I mean, it was a pretty remarkable year with that $5.9 billion that we were able to raise. But we always look at opportunities. We think of the whole loan sale program as a way to provide funding flexibility. And so really, when we look at it, we're looking at the economics and the terms to make sure it makes sense for us.
Speaker #14: confidence in your ability to giving fund just , you know , through the unsecured markets term .
Speaker #9: We lot about it
Speaker #9: think a I . You're right . I mean , I think we we see we have longer access to public think you markets .
Speaker #9: great can really And I in the year . I mean , pretty it was a year with that 5.9 billion were able remarkable .
Speaker #9: raise but And always look at opportunities . We sale funding to program provide as a way flexibility . And so really look at it , looking we're at the economics and the terms to it makes whole loan make sure sense us for .
Jenny Osterhout: So I, you know, I think for us, that $2.4 billion program that we have, you know, we think it has attractive pricing, and we like that diversification that it gives us for our balance sheet. And really, it's about those considerations and how it helps us meet our strategic goals and thinking about those economic trade-offs. You know, obviously, it gives you a little bit of higher gain on sale, and then you get the servicing income. So there's, you know, a nice diversification in having different revenue streams, but that gives you sort of some of the components for how we think about it.
Jenny Osterhout: So I, you know, I think for us, that $2.4 billion program that we have, you know, we think it has attractive pricing, and we like that diversification that it gives us for our balance sheet. And really, it's about those considerations and how it helps us meet our strategic goals and thinking about those economic trade-offs. You know, obviously, it gives you a little bit of higher gain on sale, and then you get the servicing income. So there's, you know, a nice diversification in having different revenue streams, but that gives you sort of some of the components for how we think about it.
Speaker #9: you know , So I , us I think that have , $2.4 billion program that we think it know , you attractive has pricing like that and we diversification that it gives us for for our for .
Speaker #9: you know , So I , us I think that have , $2.4 billion program that we think it know , you attractive has pricing like that and we diversification that it gives us for for our for . it's about helps us meet our balance sheet strategic goals .
Speaker #9: And thinking, and we, you know, obviously it gives you a little bit of higher consideration gain on sale, and then you get the servicing income.
Speaker #9: So nice you know , a there's , diversification in having different revenue streams . But that gives you sort of some of the how we think about it .
Doug Shulman: The only thing I would add also is, it gives us a lot of strategic optionality. We have way more demand, you know, a lot more people would love to buy our loans. We're pretty careful about it. And as you know, Jenny mentioned, it's diversification. You know, five years or so ago, we got the pipes working, so the whole thing worked. It also allows us to think about, it's not what we do now, which is, are there things that our unique platform can do, which is, you know, generate now a whole range of different lending products, underwrite them, you know, attract customers and service them? And are there things we don't want on our balance sheet in the future that others might want on their balance sheet?
Doug Shulman: The only thing I would add also is, it gives us a lot of strategic optionality. We have way more demand, you know, a lot more people would love to buy our loans. We're pretty careful about it. And as you know, Jenny mentioned, it's diversification. You know, five years or so ago, we got the pipes working, so the whole thing worked. It also allows us to think about, it's not what we do now, which is, are there things that our unique platform can do, which is, you know, generate now a whole range of different lending products, underwrite them, you know, attract customers and service them? And are there things we don't want on our balance sheet in the future that others might want on their balance sheet?
Speaker #8: The only thing I would add also is gives us a lot of strategic optionality . We we have way more you know , a love to buy demand , people would lot more loans .
Speaker #8: pretty about it . And We're as careful you diversification . five years or so ago we got the working . So the it's thing worked .
Speaker #8: It whole You know , allows us to think it's not about do which is now , what we are there that are things unique platform can do , which is generate now of a whole different lending range products , underwrite them , you know , attract customers and service them things .
Doug Shulman: And so, in addition to being a nice, you know, valuable, accretive piece of our current balance sheet, it also is great for strategic optionality for the franchise.
Doug Shulman: And so, in addition to being a nice, you know, valuable, accretive piece of our current balance sheet, it also is great for strategic optionality for the franchise.
Speaker #8: our And are there we don't in the that future balance sheet others might want on their sheet ? And so , in addition to being a you know , , accretive piece of our current balance sheet , is great it also .
[Analyst] (Aiera): Got it. Thank you.
Mark DeVries: Got it. Thank you.
Operator: Thank you. We'll go next now to Rick Shane with JPMorgan. Rick, please go ahead.
Operator: Thank you. We'll go next now to Rick Shane with JPMorgan. Rick, please go ahead.
Speaker #14: Got balance
Speaker #14: Thank you .
[Analyst] (JPMorgan): Hey, thanks so much for taking my questions this morning. When we look at the charge-off rate on the credit card book, it has improved, and you guys have talked about that. And I think there really are probably three reasons why. One is fundamental improvement, and the second is seasonality, and the third is denominator effect from the growth. When we think about the card book long term, what is your target loss rate? Because at the moment, yes, the actual, reported net charge-off rate has come down, but the lagged loss rates flatten me out a little bit. I'm curious where you think this is going to go.
Rich Shane: Hey, thanks so much for taking my questions this morning. When we look at the charge-off rate on the credit card book, it has improved, and you guys have talked about that. And I think there really are probably three reasons why. One is fundamental improvement, and the second is seasonality, and the third is denominator effect from the growth. When we think about the card book long term, what is your target loss rate? Because at the moment, yes, the actual, reported net charge-off rate has come down, but the lagged loss rates flatten me out a little bit. I'm curious where you think this is going to go.
Speaker #6: Thank you . We'll go next . to Now Rick Shane with J.P. please go nice ,
Speaker #6: Thank you . We'll go next . to Now Rick Shane with J.P. please go nice , .
Speaker #6: Thank you . We'll go next . to Now Rick Shane with J.P. please go nice , . Morgan .
Speaker #7: Hey , morning we look at the off rate . card book on the , it has When improved . And you talked about charge that .
Speaker #7: Hey , morning we look at the off rate . card book on the , it has When improved . And you talked about charge
Speaker #7: probably why . fundamental improvement One is . The seasonality . second is third is effect denominator And the from the growth we think about the card book .
Speaker #7: , long term your target loss rate ? Because , what is at the moment , yes , actual the reported off rate has come down .
Jenny Osterhout: Happy to talk about that. You're right, we saw those net charge-offs improve by about 22 basis points from last year to 17.1% in Q4. You know, we expect for those to continue to improve based on what we've seen in card delinquency performance, which I mentioned is down 83 basis points. So it gives you a little bit of a go-forward guide, and it's a step towards bringing our book into that expected long-term range, which I would say is in the 15 to 17% range. We've really been able to drive those, you mentioned some of it, but through some of that typical portfolio seasoning, but also a lot of actions that we've taken to improve our servicing and recovery capabilities.
Speaker #7: Net charge, but lagged, Rick. Rates loss flattened me out a little bit. And curious where you think this is going to go.
Jenny Osterhout: Happy to talk about that. You're right, we saw those net charge-offs improve by about 22 basis points from last year to 17.1% in Q4. You know, we expect for those to continue to improve based on what we've seen in card delinquency performance, which I mentioned is down 83 basis points. So it gives you a little bit of a go-forward guide, and it's a step towards bringing our book into that expected long-term range, which I would say is in the 15 to 17% range. We've really been able to drive those, you mentioned some of it, but through some of that typical portfolio seasoning, but also a lot of actions that we've taken to improve our servicing and recovery capabilities.
Speaker #9: Happy to talk to that . You're right . We saw those net offs charge about improve by about 22 basis points from last year to in the 17.1% expect for those to we continue to fourth quarter .
Speaker #9: which I performance , delinquency mentioned is down So 83 basis gives you it bit of a go forward points . And it's guide .
Speaker #9: a little our book into that a step expected long which I would say is in the 15 to 17% range , term range , been we really able to You drive those .
Speaker #9: Of it, but through some of the typical portfolio—that seasoning—but a lot of also a that we've actions taken to improve our servicing and recovery, mentioned some capabilities.
Jenny Osterhout: You know, we ran this new product almost like a startup, so you know, you don't focus on some of those later pieces right at the very beginning. So we did find, you know, still there were areas that we could improve. And I'd just say, remember that our revenue yields on cards, you know, allows us room to be able to do that and cushions those higher losses. So overall, the credit card portfolio, we think, remains quite strong, and we think we see that as a way to support our continued capital generation in the years ahead.
Jenny Osterhout: You know, we ran this new product almost like a startup, so you know, you don't focus on some of those later pieces right at the very beginning. So we did find, you know, still there were areas that we could improve. And I'd just say, remember that our revenue yields on cards, you know, allows us room to be able to do that and cushions those higher losses. So overall, the credit card portfolio, we think, remains quite strong, and we think we see that as a way to support our continued capital generation in the years ahead.
Speaker #9: You know, you ran this product—we were almost new, we were a startup. So, you know, like, you don't focus on some of those later pieces right at the very beginning.
Speaker #9: So we did find , know , still there were areas that we improve . And I'd you just say and remember that our revenue could is , you know , cards yields on us to be that .
Speaker #9: And able to do cushions those higher losses . So overall , the credit card portfolio , we quite strong . remains think room think to support our a way see capital generation that as the years ahead in .
[Analyst] (JPMorgan): Got it. That is very helpful. And to follow up on that a little bit, and capital generation is exactly what I wanted to talk about. You guys have laid out sort of the plan, and clearly, you are forming more capital than you can redeploy into the business, and you are returning it to shareholders in a very deliberate way. I am curious, when you think about capital held against your traditional consumer loans versus your growing credit card portfolio, is the capital that you hold against the card portfolio going to be higher, given the higher loss expectations?
Rich Shane: Got it. That is very helpful. And to follow up on that a little bit, and capital generation is exactly what I wanted to talk about. You guys have laid out sort of the plan, and clearly, you are forming more capital than you can redeploy into the business, and you are returning it to shareholders in a very deliberate way. I am curious, when you think about capital held against your traditional consumer loans versus your growing credit card portfolio, is the capital that you hold against the card portfolio going to be higher, given the higher loss expectations?
Speaker #7: Got it . Very And helpful . to follow up on little bit that a in capital generation is what I exactly wanted to talk guys had .
Speaker #7: You plan, sort of clearly laid out, that you are forming more capital than you can redeploy into the business. And you were returning it to shareholders in a very clear way.
Speaker #7: I am curious about you think capital upheld your against traditional consumer loans your versus credit growing card portfolio , is the capital that you against the card going to be portfolio higher given the higher loss ?
Jenny Osterhout: Well, I mean, I think if you're talking about reserves, we do give our reserve levels are higher, so our card reserve levels are around 22%. But if I look overall at our book and how we think about growing the card, I mean, we really manage capital across the business, and we're focused on being able to manage to this 20% return on tangible equity hurdle. And we apply... You know, we've been talking about how we also apply additional stress, and we do that across all our products as well. So that's sort of how I would think about it. And I think we feel, I mean, especially on cards, we feel like it's going to be a great source of profitability for the future.
Jenny Osterhout: Well, I mean, I think if you're talking about reserves, we do give our reserve levels are higher, so our card reserve levels are around 22%. But if I look overall at our book and how we think about growing the card, I mean, we really manage capital across the business, and we're focused on being able to manage to this 20% return on tangible equity hurdle. And we apply... You know, we've been talking about how we also apply additional stress, and we do that across all our products as well. So that's sort of how I would think about it. And I think we feel, I mean, especially on cards, we feel like it's going to be a great source of profitability for the future.
Speaker #7: Sure
Speaker #9: if you're
Speaker #9: higher . So levels our are reserve card around 22% . But if overall at our our book and how think about I look I growing we mean .
Speaker #9: We really manage capital across the business and we're focused being on to to these this on 20% return tangible equity manage know , talking about how we we apply you stress .
Speaker #9: That hurdle. So we've been, and our— as, and we— products. So that's sort of how I would— we— I think about it.
Speaker #9: feel I well . mean , And cards , we feel going to think like it's be especially on great source a of profitability for the for future .
[Analyst] (JPMorgan): Got it. Okay. Thank you very much.
Rich Shane: Got it. Okay. Thank you very much.
Doug Shulman: Folks, we are up against the hour. Let me just end by saying, you know, in 2024, we told our investor base that we'd position our business for significant earnings growth going forward. This played out in 2025, and we're now generating very healthy earnings and capital generation. Our ability to drive losses down by, over the last three years, carefully managing the book and finding great customers, has been a major part of it. Despite the fact that there is persistent inflation and there was a slight uptick in unemployment, the customers on our book are performing really well, and we don't anticipate that changing this year. So we feel really good for 2026 and beyond, but especially 2026, to be another year of strong earnings and capital generation.
Doug Shulman: Folks, we are up against the hour. Let me just end by saying, you know, in 2024, we told our investor base that we'd position our business for significant earnings growth going forward. This played out in 2025, and we're now generating very healthy earnings and capital generation. Our ability to drive losses down by, over the last three years, carefully managing the book and finding great customers, has been a major part of it. Despite the fact that there is persistent inflation and there was a slight uptick in unemployment, the customers on our book are performing really well, and we don't anticipate that changing this year. So we feel really good for 2026 and beyond, but especially 2026, to be another year of strong earnings and capital generation.
Speaker #7: Got it . Thank you Okay . very much
Speaker #7: , folks . We are
Speaker #8: up against the hour . Let me just end by let me saying , you know . In 2024 , we , we investor told our we'd our significant earnings business for growth going forward .
Speaker #8: base that played out in 2025 , and This we're now generating healthy capital generation . ability to earnings down by losses over the last three years , carefully very positioned .
Speaker #8: It's been a major IT. Despite the fact that there is persistent inflation, and there was a slight uptick in part of it.
Speaker #8: The our are really performing customers on don't anticipate that, and we're changing this year. So we feel really good for beyond, but 2026 and especially of strong 2026 to be another earnings and capital. And we thank everybody for spending time with us on the call.
Doug Shulman: We thank everybody for spending time with us on the call, and as always, our team's available for follow-up. Thanks, everyone, and have a great day.
Doug Shulman: We thank everybody for spending time with us on the call, and as always, our team's available for follow-up. Thanks, everyone, and have a great day.
Operator: Thank you, Mr. Shulman, and thank you, Ms. Osterhout. Again, ladies and gentlemen, this will conclude today's OneMain Financial Q4 2025 earnings conference call and webcast. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.
Operator: Thank you, Mr. Shulman, and thank you, Ms. Osterhout. Again, ladies and gentlemen, this will conclude today's OneMain Financial Q4 2025 earnings conference call and webcast. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.
Speaker #8: And unemployment as always, our team is available for follow-up. So thanks, everyone, and have a good day. Generation.
Speaker #6: Mr. Thank you , Shulman . And thank you , Miss
Speaker #6: again , ladies and gentlemen . This will day conclude today's Quarter fourth one main 2020 Earnings Conference Call and thanks so much Again , for joining us , everyone .
