Enova International (NYSE:ENVA) reported third-quarter results marked by continued double-digit growth in originations, receivables, revenue and adjusted earnings per share, while credit performance remained stable to improving across its consumer and small-business lending portfolios.
Chief Executive Officer Steve Cunningham said consolidated originations rose 31% from a year earlier to $2.6 billion, representing the company’s 12th consecutive quarter of at least 20% year-over-year origination growth. The company’s portfolio grew 30% to $5.9 billion, with small-business products accounting for 68% of receivables and consumer products representing 32%.
Revenue increased 26% year over year to more than $1 billion for the first time in a quarter, according to Cunningham. Adjusted EPS rose 33% to $4.48 per diluted share, extending Enova’s streak of quarterly adjusted EPS growth of at least 30% year over year to nine quarters.
Consumer and Small-Business Growth
Consumer originations reached a record $807 million, up 37% from the third quarter of 2025, while consumer revenue rose 21%. Consumer receivables ended the quarter at $1.9 billion on an amortized basis, up 24% year over year.
Cunningham said consumer growth has included a greater mix of new customers as the company returned to a more typical growth approach after deliberately moderating consumer expansion in the latter half of the prior year. He said the company does not expect consumer growth to remain above 30%, but expects it to be stronger than the low-single-digit growth reported during that earlier period.
On consumer product mix, Cunningham said customers have generally shown a preference for line-of-credit products, though installment lending also continued to grow. He said the two offerings complement one another and allow Enova to serve customer preferences.
Small-business originations increased 28% to $1.8 billion, while small-business revenue rose 32% to $459 million. Small-business receivables ended the quarter at $4 billion on an amortized basis, a 34% increase from a year earlier.
Management said its small-business underwriting spans hundreds of industries. Cunningham said Enova continues to closely monitor sectors such as trucking and construction that have been more exposed to trade and tariff policies, but has not materially changed its industry exposure strategy.
Credit Performance and Margins
The consolidated net charge-off ratio improved to 8.1% from 8.5% a year earlier. Consumer net charge-offs declined 100 basis points year over year to 15.1%, while the small-business net charge-off rate was unchanged sequentially at 4.8%.
Chief Financial Officer Scott Cornelis said the consolidated net revenue margin was 61%, compared with 57% a year earlier and slightly above the company’s expected range. Enova expects fourth-quarter consolidated net revenue margin of 55% to 60%, with small-business margins in the typical 60% to 70% range and consumer margins trending toward approximately 50% as recent loan vintages season.
The consolidated 30-plus-day delinquency rate increased sequentially to 8%, reflecting typical consumer seasonality and a 40-basis-point increase in small-business delinquencies. Cornelis said small-business delinquencies can be more variable than charge-offs because customers may cure late payments through several avenues, including collecting receivables or receiving support from business owners.
Cunningham added that Enova monitors missed-payment rates, electronic bank statement data, net cash flow, applicant quality and industry conditions for signs of emerging stress. He characterized the current environment as constructive, with stable to improving credit trends across the portfolio.
Expenses, Funding and Capital Returns
Third-quarter operating expenses, including marketing, were 35% of revenue, compared with 31% a year earlier. Marketing expense rose to $230 million, or 23% of revenue, from $147 million, or 18% of revenue, in the prior-year period. Cornelis said the spending supported growth, particularly among new consumer customers, and remained within the company’s expected range as a percentage of originations.
For the fourth quarter, Enova expects marketing expense of around 20% of revenue, operations and technology costs of approximately 8% to 8.5% of revenue, and general and administrative expenses of 4.5% to 5% of revenue excluding one-time items.
Enova ended the quarter with $1.3 billion of liquidity, including $508 million in cash and marketable securities and $817 million of available debt-facility capacity. Its cost of funds was 8%, down 60 basis points from a year earlier. Cornelis said the company completed the largest term securitization in OnDeck’s history during the quarter at a lower credit spread than a comparable transaction a year earlier, while increasing debt-facility capacity by more than $350 million from the second quarter.
The company repurchased 243,000 shares for $46 million during the third quarter and had $252 million of repurchase capacity available under its senior note covenants entering the fourth quarter. Cornelis said Enova had already matched its third-quarter buyback activity during October.
Outlook and Product Expansion
For the fourth quarter, Enova expects revenue to increase about 25% year over year and adjusted EPS to rise 30% to 35% from the fourth quarter of 2025. The outlook depends on macroeconomic conditions, demand, customer payment rates and the timing and mix of originations.
Cunningham said the company continues to see stable growth and credit in both consumer and small-business lending. He also said Enova’s decision last month to withdraw its applications to become a bank had not diminished its ability to pursue growth.
Instead, he said planning related to the bank applications produced product, operational and risk-management insights that could support expansion in current and adjacent markets. The company is considering opportunities including deposit advance products, secured consumer lending and small-business embedded-finance offerings, though Cunningham said Enova intends to test and experiment before deliberately launching and scaling new initiatives.
About Enova International (NYSE:ENVA)
Enova International, Inc is a financial technology company that provides online financial services to consumers and small businesses. Its offerings include consumer installment loans and lines of credit, as well as small-business financing products designed to provide access to working capital. The company serves customers who may have limited access to traditional bank credit and uses data-driven underwriting and technology-enabled platforms in its lending operations.
Enova markets its products through brands including CashNetUSA and NetCredit, which provide consumer financial services, and OnDeck, which focuses on lending to small businesses.
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