Enova International, Inc.
For the period ended Jun 30, 2025. Filed Jul 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 25, 2025
ENVA$172.48-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0000950170-25-060339
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-25.
0000950170-25-098791
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 174 current paragraphs.
105 unchanged; 39 reworded; 23 added; 3 removed; 2 previous and 7 current paragraphs rearranged.
Tables are not compared: 13 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
One Big Beautiful Bill Act
Current report
On July 4, 2025, the “One Big Beautiful Bill Act” (the “OBBBA”) was enacted into law. The OBBBA’s various provisions include, among other things, accelerated tax deductions for qualified property and research expenditures. The legislation has multiple effective dates, with certain provisions effective in 2025 and others to be implemented through 2027. We are currently assessing the OBBBA’s impact on our consolidated financial statements.
Current report
Consolidated net revenue was $441.5 million in the current quarter compared to $370.2 million in the prior year quarter.
Current report
Refer to footnotes in previous table for explanation of (a) and (b).
Current report
Total operating expenses increased $32.3 million, or 14.3%, to $257.4 million in the current quarter compared to $225.1 million in the prior year quarter.
Current report
Depreciation and amortization expense increased $0.7 million or 6.6% compared to the prior year quarter driven primarily by general growth in the business and additional internally-developed software placed into service.
Current report
SIX MONTHS ENDED JUNE 30, 2025 COMPARED TO SIX MONTHS ENDED JUNE 30, 2024
Current report
Revenue and Net Revenue
Current report
Revenue increased $271.3 million, or 21.9%, to $1,509.6 million for the six-month period ended June 30, 2025, or current six-month period, as compared to $1,238.3 million for the six-month period ended June 30, 2024, or prior year six-month period. The increase was driven by a 29.2% increase in revenue from our small business portfolio and a 17.3% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.
Current report
Net revenue for the current six-month period was $867.6 million compared to $716.0 million for the prior year six-month period. Our consolidated net revenue margin was 57.5% for the current six-month period, which is fairly consistent with 57.8% for the prior year six-month period.
Current report
The following table sets forth the components of revenue and net revenue, separated by product for the current six-month period and the prior year six-month period (in thousands):
Current report
(b) Includes loans guaranteed by us, which represent loans originated by third-party lenders through the CSO program that we have not yet purchased and, therefore, are not included in our consolidated financial statements.
Current report
The average loan and finance receivable origination amount increased to $1,706 from $1,590 during the current six-month period compared to the prior year six-month period, due primarily to an increase in the average loan origination amount for our small business loans.
Current report
Total Operating Expenses
Current report
Total operating expenses increased $71.4 million, or 16.2%, to $511.6 million in the current six-month period, compared to $440.2 million in the prior year six-month period.
Current report
Operations and technology expense increased to $126.1 million in the current six-month period compared to $109.3 million in the prior year six-month period, due primarily to higher variable costs, particularly personnel and, to a lesser extent, collection costs, bank charges, other selling expenses and underwriting costs, due to the increase in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased to 8.4% in the current six-month period from 8.8% in the prior year six-month period, as increased originations and revenues outpaced fixed costs.
Current report
General and administrative expense increased $3.4 million, or 4.3%, to $83.0 million in the current six-month period compared to $79.6 million in the prior year six-month period, due primarily to higher personnel costs, partially offset by lower legal and consulting costs. As a percentage of revenue, general and administrative expense decreased to 5.5% in the current six-month period from 6.4% in the prior year six-month period, as increased originations and revenues outpaced fixed costs.
Current report
Depreciation and amortization expense increased $0.4 million or 2.2% compared to the prior year six-month period driven primarily by general growth in the business and additional internal-use software placed in service.
Current report
Nonoperating Items
Current report
Interest expense, net increased $26.8 million, or 19.6%, to $163.3 million in the current six-month period compared to $136.5 million in the prior year six-month period. The increase was due primarily to an increase of $749.7 million in the average amount of debt outstanding to $3,750.4 million during the current six-month period from $3,000.7 million during the prior year six-month period, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.84% during the current six-month period from 9.26% during the prior year six-month period resulting primarily from year-over-year decreases in benchmark rates.
Current report
Provision for Income Taxes
Current report
Net Income
Current report
Net income increased $46.8 million, or 45.7%, to $149.1 million during the current six-month period compared to $102.3 million during the prior year six-month period. The increase was due primarily to an increase in income from operations due primarily to overall growth in the business driving an increase in net revenue and lower operating expenses as a percentage of revenue, partially offset by higher interest expense as a result of an increase in the average amount of debt outstanding.
Removed paragraphs (3)
Previous report
Consolidated net revenue was $426.2 million in the current quarter compared to $345.9 million in the prior year quarter.
Previous report
Total operating expenses increased $39.2 million, or 18.2%, to $254.3 million in the current quarter compared to $215.1 million in the prior year quarter.
Previous report
Depreciation and amortization expense in the current quarter was substantially flat compared to the prior year quarter.
Reworded paragraphs (39)
Previous wording
We are a leading technology and analytics company focused on providing online financial services. In 2024, we extended approximately $6.1 billion in credit or financing to borrowers and for the three months ended March 31, 2025, we extended approximately $1.7 billion in credit or financing to borrowers. As of March 31, 2025, we offered or arranged loans or draws on lines of credit to consumers in 37 states in the United States and Brazil. We also offered financing to small businesses in 49 states and Washington D.C. in the United States. We use our proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing us to offer consumers and small businesses credit or financing when and how they want it. Our customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. We were an early entrant into online lending, launching our online business in 2004, and through March 31, 2025, we have completed approximately 66.0 million customer transactions and collected more than 85 terabytes of currently accessible customer behavior data since launch, allowing us to better analyze and underwrite our specific customer base. We have significantly diversified our business over the past several years, having expanded the markets we serve and the financing products we offer. These financing products include installment loans and line of credit accounts.
Current wording
We are a leading technology and analytics company focused on providing online financial services. In 2024, we extended approximately $6.1 billion in credit or financing to borrowers and for the six months ended June 30, 2025, we extended approximately $3.5 billion in credit or financing to borrowers. As of June 30, 2025, we offered or arranged loans or draws on lines of credit to consumers in 36 states in the United States and Brazil. We also offered financing to small businesses in 49 states and Washington D.C. in the United States. We use our proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing us to offer consumers and small businesses credit or financing when and how they want it. Our customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. We were an early entrant into online lending, launching our online business in 2004, and through June 30, 2025, we have completed approximately 67.1 million customer transactions and collected more than 85 terabytes of currently accessible customer behavior data since launch, allowing us to better analyze and underwrite our specific customer base. We have significantly diversified our business over the past several years, having expanded the markets we serve and the financing products we offer. These financing products include installment loans and line of credit accounts.
Previous wording
Consumer line of credit accounts. Certain subsidiaries directly offer, or purchase participation interests in receivables through our Bank Programs, new consumer line of credit accounts in 31 states (and continue to service existing line of credit accounts in two additional states) in the United States. Line of credit accounts allow customers to draw on their unsecured line of credit in increments of their choosing up to their credit limit, which ranges between $100 and $7,000. Customers may pay off their account balance in full at any time or make required minimum payments in accordance with the terms of the line of credit account. The repayment period varies depending upon certain factors, which may include outstanding principal and differences in minimum payment calculations by product. Customers are typically charged a fee when funds are drawn and subsequently incur fee- or interest-based charges at a fixed rate, depending upon the product and the state in which the customer resides. The average annualized yield for these products was 159% for the year ended December 31, 2024.
Current wording
Consumer line of credit accounts. Certain subsidiaries directly offer, or purchase participation interests in receivables through our Bank Programs, new consumer line of credit accounts in 30 states (and continue to service existing line of credit accounts in two additional states) in the United States. Line of credit accounts allow customers to draw on their unsecured line of credit in increments of their choosing up to their credit limit, which ranges between $100 and $7,000. Customers may pay off their account balance in full at any time or make required minimum payments in accordance with the terms of the line of credit account. The repayment period varies depending upon certain factors, which may include outstanding principal and differences in minimum payment calculations by product. Customers are typically charged a fee when funds are drawn and subsequently incur fee- or interest-based charges at a fixed rate, depending upon the product and the state in which the customer resides. The average annualized yield for these products was 159% for the year ended December 31, 2024.
Previous wording
On March 30, 2023, the CFPB issued its final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses, and applies to small business loans that we offer. For loans covered by the small business lending rule, a “covered lender” will be required to collect and report on certain information pursuant to an application for credit. Section 1071 requires covered lenders to collect and report information the financial institution generates and information obtained from the applicant, including the applicant’s minority-owned business status, women-owned business status and LGBTQI+-owned status and the applicant’s principal owners’ ethnicity, race and sex, and expressly prohibits a financial institution from discouraging an applicant from responding to requests for applicant-provided data. On April 26, 2023, the Texas Bankers Association filed an action challenging the rule. The district court entered judgment in favor of the CFPB on the Administrative Procedure Act challenges and the ruling was appealed to the Fifth Circuit. Oral arguments took place on February 3, 2025. Although the CFPB sought a pause on the appeal, the CFPB no longer opposed an earlier motion for a stay and tolling of the compliance dates. The Fifth Circuit ordered the tolling of the compliance deadlines but only to the plaintiffs and intervenors in the case, including trade associations in which the Company’s small business loan business participates. Separately, on April 2, 2025, the House Financial Services Committee approved H.R. 976, which would repeal Section 1071. On April 3, 2025, the CFPB filed a response to a motion to stay in another lawsuit involving the rule and advised the court that CFPB staff were directed to initiate a new Section 1071 rulemaking. Absent further court action, legislative action or action by the CFPB, the Company’s small business loan business will need to update its application process to appropriately collect, store and report data required by Section 1071’s implementing regulation. The Company will continue to monitor litigation, rulemaking and bills related to the rule.
Current wording
On March 30, 2023, the CFPB issued its final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect and report certain data in connection with credit applications made by small businesses, including women- or minority-owned small businesses, and applies to small business loans that we offer. For loans covered by the small business lending rule, a “covered lender” will be required to collect and report on certain information pursuant to an application for credit. Section 1071 requires covered lenders to collect and report information the financial institution generates and information obtained from the applicant, including the applicant’s minority-owned business status, women-owned business status and LGBTQI+-owned status and the applicant’s principal owners’ ethnicity, race and sex, and expressly prohibits a financial institution from discouraging an applicant from responding to requests for applicant-provided data. On April 26, 2023, the Texas Bankers Association filed an action challenging the rule. The district court entered judgment in favor of the CFPB on the Administrative Procedure Act challenges and the ruling was appealed to the Fifth Circuit. The Fifth Circuit ordered the tolling of the compliance deadlines but only to the plaintiffs and intervenors in the case, including trade associations in which the Company’s small business loan business participates. Separately, on April 2, 2025, the House Financial Services Committee approved H.R. 976, which would repeal Section 1071 if passed. On June 18, 2025, the CFPB issued an interim final rule to extend the compliance deadlines by approximately one year. It further indicated its intent to initiate a new Section 1071 rulemaking and anticipates issuing a notice of proposed rulemaking as expeditiously as reasonably possible. Absent further court action, legislative action or action by the CFPB, the Company’s small business loan business will need to update its application process to appropriately collect, store and report data required by Section 1071’s implementing regulation. The Company will continue to monitor litigation, rulemaking and bills related to the rule.
Previous wording
Consolidated total revenue increased $135.6 million, or 22.2%, to $745.5 million in the current quarter compared to $609.9 million for the three months ended March 31, 2024, or the prior year quarter.
Current wording
Consolidated total revenue increased $135.7 million, or 21.6%, to $764.1 million in the current quarter compared to $628.4 million for the three months ended June 30, 2024, or the prior year quarter.
Previous wording
Consolidated income from operations increased $41.1 million, or 31.4%, to $171.9 million in the current quarter compared to $130.8 million in the prior year quarter.
Current wording
Consolidated income from operations increased $39.0 million, or 26.9%, to $184.1 million in the current quarter compared to $145.1 million in the prior year quarter.
Previous wording
Consolidated net income was $72.9 million in the current quarter compared to $48.4 million in the prior year quarter. Consolidated diluted income per share was $2.69 in the current quarter compared to $1.64 in the prior year quarter.
Current wording
Consolidated net income was $76.1 million in the current quarter compared to $53.9 million in the prior year quarter. Consolidated diluted income per share was $2.86 in the current quarter compared to $1.93 in the prior year quarter.
Previous wording
In 2024 and early 2025, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, tariffs and other macroeconomic trends. In certain situations, management concluded that the probability of future charge-offs or prepayments was different than what we had experienced in the past and, therefore, altered those assumptions in our fair value models. We continue to utilize this approach and have adjusted these assumptions where appropriate. We also evaluate the discount rates used in our models on a quarterly basis and adjust when appropriate to be responsive to changes in the market and representative of what a market participant would use. As of March 31, 2025, we deemed the resulting fair value of our loans and finance receivables to be an appropriate market-based exit price that considers current market conditions.
Current wording
In 2024 and the first six months of 2025, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, tariffs and other macroeconomic trends. In certain situations, management concluded that the probability of future charge-offs or prepayments was different than what we had experienced in the past and, therefore, altered those assumptions in our fair value models. We continue to utilize this approach and have adjusted these assumptions where appropriate. We also evaluate the discount rates used in our models on a quarterly basis and adjust when appropriate to be responsive to changes in the market and representative of what a market participant would use. As of June 30, 2025, we deemed the resulting fair value of our loans and finance receivables to be an appropriate market-based exit price that considers current market conditions.
Previous wording
(a) In the first quarter of 2024, we recorded costs totaling $0.3 million ($0.2 million net of related tax) related to a consent solicitation for the Senior Notes due 2025.
Current wording
(a) In the first quarter of 2024, we recorded costs totaling $0.3 million ($0.2 million net of tax) related to a consent solicitation for the Senior Notes due 2025.
Previous wording
(b) In the first quarter of 2024, we recorded other nonoperating expenses of $0.5 million ($0.4 million net of tax) related to early extinguishment of debt.
Current wording
(b) In the second quarter of 2025, the second quarter of 2024 and the first quarter of 2024, we recorded other nonoperating expenses of $1.0 million ($0.8 million net of tax), $0.5 million ($0.4 million net of tax) and $0.5 million ($0.4 million net of tax), respectively, related to early extinguishment of debt.
Previous wording
Revenue increased $135.6 million, or 22.2%, to $745.5 million for the current quarter as compared to $609.9 million for the prior year quarter. The increase was driven by a 28.8% increase in revenue from our small business portfolio and a 18.1% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.
Current wording
Revenue increased $135.7 million, or 21.6%, to $764.1 million for the current quarter as compared to $628.4 million for the prior year quarter. The increase was driven by a 29.6% increase in revenue from our small business portfolio and a 16.5% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.
Previous wording
Net revenue for the current quarter was $426.2 million compared to $345.9 million for the prior year quarter. Our consolidated net revenue margin was 57.2% for the current quarter compared to 56.7% for the prior year quarter with stability in both the consumer and small business portfolios. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of net revenue for the current quarter.
Current wording
Net revenue for the current quarter was $441.5 million compared to $370.2 million for the prior year quarter. Our consolidated net revenue margin was 57.8% for the current quarter compared to 58.9% for the prior year quarter with stability in both the consumer and small business portfolios. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of net revenue for the current quarter.
Previous wording
The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $4,569.8 million and $3,795.2 million as of March 31, 2025 and 2024, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $3,964.4 million and $3,298.4 million as of March 31, 2025 and 2024, respectively. The fair value of the combined loan and finance receivables portfolio includes $21.2 million and $14.8 million with an outstanding principal balance of $14.8 million and $10.8 million of consumer loan balances that are guaranteed by us but not owned by us, which are not included in our consolidated financial statements as of March 31, 2025 and 2024, respectively.
Current wording
The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $4,773.3 million and $3,939.2 million as of June 30, 2025 and 2024, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $4,141.1 million and $3,423.7 million as of June 30, 2025 and 2024, respectively. The fair value of the combined loan and finance receivables portfolio includes $23.8 million and $17.3 million with an outstanding principal balance of $16.8 million and $12.5 million of consumer loan balances that are guaranteed by us but not owned by us, which are not included in our consolidated financial statements as of June 30, 2025 and 2024, respectively.
Previous wording
The consumer portfolio balance was 35.7% of our combined loan and finance receivable portfolio balance at fair value as of March 31, 2025 compared to 35.7% as of March 31, 2024. Our small business portfolio of loans and finance receivables was 64.3% of our combined loan and finance receivable portfolio at fair value as of March 31, 2025 compared to 64.3% as of March 31, 2024. See “Non-GAAP Financial Measures—Combined Loans and Finance Receivables Measures” above for additional information related to combined loans and finance receivables.
Current wording
The consumer portfolio balance was 35.3% of our combined loan and finance receivable portfolio balance at fair value as of June 30, 2025 compared to 36.4% as of June 30, 2024. Our small business portfolio of loans and finance receivables was 64.7% of our combined loan and finance receivable portfolio at fair value as of June 30, 2025 compared to 63.6% as of June 30, 2024. See “Non-GAAP Financial Measures—Combined Loans and Finance Receivables Measures” above for additional information related to combined loans and finance receivables.
Previous wording
The average amount outstanding per loan and finance receivable decreased in the current quarter compared to the prior year quarter for our overall portfolio due primarily to a mix shift in our consumer portfolio to line of credit accounts, which generally have lower average outstanding balances compared to installment loans.
Current wording
The average amount outstanding per loan and finance receivable increased slightly in the current quarter compared to the prior year quarter for our overall portfolio due to an increase in our small business portfolio, partially offset by a decrease in our consumer portfolio.
Previous wording
The average loan and finance receivable origination amount increased to $1,721 during the current quarter from $1,675 during the prior year quarter, due primarily to an increase in the average loan origination amount for our small business loans.
Current wording
The average loan and finance receivable origination amount increased to $1,691 during the current quarter from $1,515 during the prior year quarter, due primarily to an increase in the average loan origination amount for our small business loans.
Previous wording
The following table includes financial information for our consumer loans and finance receivables. Delinquency metrics include principal, interest and fees, and only amounts that are past due (in thousands):
Current wording
The following table includes financial information for our consumer loans and finance receivables. Delinquency metrics include principal, interest and fees (in thousands):
Previous wording
Demand for our consumer loan products and services in the United States has historically been highest in the third and fourth quarters of each year, corresponding to the holiday season, and lowest in the first quarter of each year, corresponding to our customers’ receipt of income tax refunds. The ending balance, including principal and accrued fees/interest outstanding, of combined consumer loans and finance receivables at March 31, 2025 increased 20.1% to $1,467.5 million compared to $1,221.6 million at March 31, 2024, due primarily to originations outpacing repayments.
Current wording
Demand for our consumer loan products and services in the United States has historically been highest in the third and fourth quarters of each year, corresponding to the holiday season, and lowest in the first quarter of each year, corresponding to our customers’ receipt of income tax refunds. The ending balance, including principal and accrued fees/interest outstanding, of combined consumer loans and finance receivables at June 30, 2025 increased 17.0% to $1,522.2 million compared to $1,300.7 million at June 30, 2024, due primarily to originations outpacing repayments.
Previous wording
The percentage of loans greater than 30 days delinquent of 8.2% was higher at March 31, 2025 compared to 6.9% at March 31, 2024, due primarily to a higher percentage of originations to new customers, which typically default at a higher rate compared to returning customers, and a mix shift reflecting a greater percentage of line of credit products, which have higher yields and default rates than installment loans, as compared to the prior year quarter. Charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance was 15.2% for the current quarter compared to 14.9% for the prior year quarter, which are both in line with seasonal norms as decreasing originations generally result in lower delinquencies followed by lower charge-offs as the book becomes more seasoned. Charge-off performance in the periods presented follows this seasonal pattern.
Current wording
The percentage of loans greater than 30 days delinquent of 8.0% was higher at June 30, 2025 compared to 6.3% at June 30, 2024, and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance increased to 14.5% in the current quarter compared to 12.8% for the prior year quarter. These increases were due primarily to a higher percentage of originations to new customers, which typically default at a higher rate compared to returning customers, and a mix shift reflecting a greater percentage of line of credit products, which have higher yields and default rates than installment loans, as compared to the prior year quarter. Compared to the prior sequential quarter ending March 31, 2025, the percentage of loans greater than 30 days delinquent and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance both decreased, which is consistent with our normal seasonal pattern.
Previous wording
Revenue related to our consumer loans and finance receivables was $430.8 million for the current quarter compared to $364.7 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio, particularly our line of credit products. The net revenue margin related to our consumer loans and finance receivables was 49.6% in the current quarter, which was fairly consistent with the net revenue margin of 49.8% in the prior year quarter.
Current wording
Revenue related to our consumer loans and finance receivables was $428.3 million for the current quarter compared to $367.6 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio, particularly our line of credit products. The net revenue margin related to our consumer loans and finance receivables was 49.7% in the current quarter, which was fairly consistent with the net revenue margin in three of the prior four sequential quarters.
Previous wording
The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 122.1% at March 31, 2025 compared to 121.9% at March 31, 2024 and 121.4% at December 31, 2024. The slight increase from the prior year quarter was due primarily to a mix shift towards line of credit products, which generally have a higher fair value as a percentage of principal compared to installment loans. Refer also to “Results of Operations—Valuation of Loans and Finance Receivables” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on loan valuation.
Current wording
The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 121.6% at June 30, 2025, which is fairly consistent compared to 121.0% at June 30, 2024 and 122.1% at March 31, 2025. Refer also to “Results of Operations—Valuation of Loans and Finance Receivables” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on loan valuation.
Previous wording
The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at March 31, 2025 increased 19.6% to $2,667.7 million compared to $2,229.9 million at March 31, 2024, due primarily to originations outpacing repayments.
Current wording
The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at June 30, 2025 increased 22.4% to $2,796.5 million compared to $2,284.0 million at June 30, 2024, due primarily to originations outpacing repayments.
Previous wording
The percentage of loans greater than 30 days delinquent of 7.4% was lower at March 31, 2025 compared to 8.8% at March 31, 2024 due to improvement in credit performance. Charge-offs (net of recoveries) as a percentage of average loan balance were flat at 4.7% for the current quarter compared to 4.7% in the prior year quarter.
Current wording
The percentage of loans greater than 30 days delinquent of 6.6% was lower at June 30, 2025 compared to 8.1% at June 30, 2024 due to improvement in credit performance. Charge-offs (net of recoveries) as a percentage of average loan balance were fairly consistent at 4.7% for the current quarter compared to 4.8% in the prior year quarter.
Previous wording
Revenue related to our small business loans and finance receivables was $304.6 million for the current quarter compared to $236.5 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio and, to a lesser extent, slightly higher average yields. The net revenue margin related to our small business loans and finance receivables was 67.0% for the current quarter, which is fairly consistent with the net revenue margin of 66.5% in the prior year quarter.
Current wording
Revenue related to our small business loans and finance receivables was $326.3 million for the current quarter compared to $251.8 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio and, to a lesser extent, slightly higher average yields. The net revenue margin related to our small business loans and finance receivables was 67.8% for the current quarter, which is fairly consistent with the prior four sequential quarters, which had an average net revenue margin of 66.0%.
Previous wording
The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.0% at March 31, 2025 compared to 111.7% at March 31, 2024 and 111.8% at December 31, 2024. The slight increase from March 31, 2024 was due primarily to improved credit performance and slightly higher average yields.
Current wording
The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.3% at June 30, 2025 compared to 112.0% at June 30, 2024 and 112.0% at March 31, 2025. The slight increase from June 30, 2024 was due primarily to improved credit performance and slightly higher average yields.
Previous wording
Operations and technology expense increased to $62.5 million in the current quarter compared to $54.4 million in the prior year quarter, due primarily to higher variable costs, particularly personnel costs and underwriting expenses as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased to 8.4% in the current year quarter from 8.9% in the prior year quarter as increased originations and revenues outpaced fixed costs.
Current wording
Operations and technology expense increased to $63.7 million in the current quarter compared to $54.9 million in the prior year quarter, due primarily to higher variable costs, particularly personnel costs, other selling expenses and bank charges as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased to 8.3% in the current year quarter from 8.7% in the prior year quarter as increased originations and revenues outpaced fixed costs.
Previous wording
General and administrative expense increased to $42.5 million in the current quarter compared to $39.9 million in the prior year quarter, due largely to higher personnel costs. As a percentage of revenue, general and administrative expense decreased to 5.7% in the current year quarter from 6.6% in the prior year quarter, as increased originations and revenues outpaced fixed costs.
Current wording
General and administrative expense increased to $40.5 million in the current quarter compared to $39.7 million in the prior year quarter, due largely to higher personnel costs. As a percentage of revenue, general and administrative expense decreased to 5.3% in the current year quarter from 6.3% in the prior year quarter, as increased originations and revenues outpaced fixed costs.
Previous wording
Interest expense, net increased $14.9 million, or 22.8%, to $80.5 million in the current quarter compared to $65.6 million in the prior year quarter. The increase was due primarily to an increase in the average amount of debt outstanding, which increased $760.9 million to $3,680.7 million during the current quarter from $2,919.8 million during the prior year quarter, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.91% during the current quarter from 9.18% during the prior year quarter resulting primarily from year-over-year decreases in benchmark rates.
Current wording
Interest expense, net increased $11.8 million, or 16.7%, to $82.8 million in the current quarter compared to $71.0 million in the prior year quarter. The increase was due primarily to an increase in the average amount of debt outstanding, which increased $738.4 million to $3,820.0 million during the current quarter from $3,081.6 million during the prior year quarter, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.76% during the current quarter from 9.33% during the prior year quarter resulting primarily from year-over-year decreases in benchmark rates.
Previous wording
The effective tax rate of 19.9% in the current quarter was lower than the 25.1% rate recorded in the prior year quarter due primarily to excess tax benefits on stock compensation due to stock price appreciation, a reduction of interest expense due to the remeasurement of unrecognized tax benefits, and favorable state rate changes.
Current wording
The effective tax rate of 24.6% in the current quarter was lower than the 26.7% rate recorded in the prior year quarter due primarily to a reduction of interest expense due to the remeasurement of unrecognized tax benefits and additional state tax attributes due to legal entity restructuring, partially offset by an unfavorable state rate change in the state of California.
Previous wording
Net income increased $24.5 million, or 50.6%, to $72.9 million during the current quarter compared to $48.4 million during the prior year quarter. The increase was due primarily to an increase in income from operations due to higher net revenue and lower operating expenses as a percentage of revenue, partially offset by higher interest expense, which was the result of an increase in the average amount of debt outstanding.
Current wording
Net income increased $22.2 million, or 41.2%, to $76.1 million during the current quarter compared to $53.9 million during the prior year quarter. The increase was due primarily to an increase in income from operations due to higher net revenue and lower operating expenses as a percentage of revenue, partially offset by higher interest expense, which was the result of an increase in the average amount of debt outstanding.
Previous wording
Marketing expense increased to $139.3 million in the current quarter compared to $110.6 million in the prior year quarter due primarily to growth in the overall business with higher commissionable originations and higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products.
Current wording
Marketing expense increased to $282.1 million in the current six-month period compared to $231.3 million in the prior year six-month period. The increase was due primarily to growth in the overall business with higher commissionable originations in our small business portfolio and higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products.
Previous wording
We seek to maintain a stable and flexible balance sheet to ensure that liquidity and funding are available to meet our business obligations. As of March 31, 2025, we had cash, cash equivalents, and restricted cash of $311.9 million, of which $256.3 million was restricted, compared to $322.7 million, of which $248.8 million was restricted, as of December 31, 2024. During the three months ended March 31, 2025, we issued $261.4 million of asset-backed notes to fund our growth in our small business loan portfolio. As of March 31, 2025, we had funding capacity of $810.4 million. Based on numerous stressed-case modeling scenarios, we believe we have sufficient liquidity to run our operations for the foreseeable future. Further, we have no recourse debt obligations due until June 2026. As part of our capital and liquidity management, we may from time to time acquire our outstanding debt securities, including through redemptions, tender offers, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws and in compliance with the indentures governing our outstanding debt securities, upon such terms and at such prices as we may determine.
Current wording
We seek to maintain a stable and flexible balance sheet to ensure that liquidity and funding are available to meet our business obligations. As of June 30, 2025, we had cash, cash equivalents, and restricted cash of $379.4 million, of which $323.9 million was restricted, compared to $322.7 million, of which $248.8 million was restricted, as of December 31, 2024. During the six months ended June 30, 2025, we issued $163.9 million and $261.4 million of asset-backed notes to fund our growth in our consumer and small business loan portfolios, respectively. As of June 30, 2025, we had funding capacity of $712.0 million. Based on numerous stressed-case modeling scenarios, we believe we have sufficient liquidity to run our operations for the foreseeable future. Further, we have no recourse debt obligations scheduled to mature until June 2026. As part of our capital and liquidity management, we may from time to time acquire our outstanding debt securities, including through redemptions, tender offers, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws and in compliance with the indentures governing our outstanding debt securities, upon such terms and at such prices as we may determine.
Previous wording
Historically, we have generated significant cash flow through normal operating activities for funding both long-term and short-term needs. Our near-term liquidity is managed to ensure that adequate resources are available to fund our seasonal working capital growth, which is driven by demand for our loan and financing products. On December 6, 2023, we issued and sold $400.0 million in aggregate principal amount of 11.25% Senior Notes due 2028 (the “2028 Senior Notes”) and used the net proceeds, in part, to retire existing indebtedness, including the remaining principal amount outstanding under our 8.50% senior notes due 2024 (the “2024 Senior Notes”). On August 12, 2024, we issued and sold $500.0 million in aggregate principal amount of 9.125% senior notes due 2029 (the “2029 Senior Notes”) and used the net proceeds, in part, to retire existing indebtedness, including the remaining principal amount outstanding under our 8.50% senior notes due 2025 (the “2025 Senior Notes”).
Current wording
Historically, we have generated significant cash flow through normal operating activities for funding both long-term and short-term needs. Our near-term liquidity is managed to ensure that adequate resources are available to fund our seasonal working capital growth, which is driven by demand for our loan and financing products. On December 6, 2023, we issued and sold $400.0 million in aggregate principal amount of 11.25% Senior Notes due 2028 and used the net proceeds, in part, to retire existing indebtedness, including the remaining principal amount outstanding under our 8.50% senior notes due 2024. On August 12, 2024, we issued and sold $500.0 million in aggregate principal amount of 9.125% senior notes due 2029 and used the net proceeds, in part, to retire existing indebtedness, including the remaining principal amount outstanding under our 8.50% senior notes due 2025 (the “2025 Senior Notes”).
Previous wording
On June 23, 2022, we entered into an amendment and restatement of our existing secured revolving credit agreement (as amended, the “Credit Agreement”) that, among other changes, increased the borrowing capacity to $440.0 million, with a $20.0 million letter of credit sublimit and $10.0 million swingline loan sublimit. On October 19, 2023, we amended the Credit Agreement to, among other changes, increase the total commitment amount from $440.0 million to $515.0 million. On September 11, 2024, we further amended the Credit Agreement to, among other changes, increase the total commitment amount from $515.0 million to $665.0 million. The Credit Agreement bears interest, at our option, at the base rate plus 0.75% or the Secured Overnight Financing Rate plus 3.50%. In addition to customary fees for a credit facility of this size and type, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the commitment, and ranges from 0.15% per annum to 0.50% per annum depending on usage. The Credit Agreement contains certain prepayment penalties if it is terminated on or before the first and second anniversary dates, subject to certain exceptions. The Credit Agreement matures on June 30, 2026. As of April 25, 2025, our available borrowings under the Credit Agreement were $262.6 million. We also utilize several loan securitization facilities and asset-backed notes to fund our growth, primarily in our near-prime consumer loan and small business loan portfolios. As of April 25, 2025, we had funding capacity of $552.8 million. We expect that our operating needs, including satisfying our obligations under our debt agreements and funding our working capital growth, will be satisfied by a combination of cash flows from operations, borrowings under the Credit Agreement, or any refinancing, replacement thereof or increase in borrowings thereunder, and securitization or sale of loans and finance receivables under our consumer and small business loan securitization facilities.
Current wording
On June 23, 2022, we entered into an amendment and restatement of our existing secured revolving credit agreement (as amended, the “Credit Agreement”) that, among other changes, increased the borrowing capacity to $440.0 million, with a $20.0 million letter of credit sublimit and $10.0 million swingline loan sublimit. On October 19, 2023, we amended the Credit Agreement to, among other changes, increase the total commitment amount from $440.0 million to $515.0 million. On September 11, 2024, we further amended the Credit Agreement to, among other changes, increase the total commitment amount from $515.0 million to $665.0 million. The Credit Agreement bears interest, at our option, at the base rate plus 0.75% or the Secured Overnight Financing Rate plus 3.50%. In addition to customary fees for a credit facility of this size and type, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the commitment, and ranges from 0.15% per annum to 0.50% per annum depending on usage. The Credit Agreement contains certain prepayment penalties if it is terminated on or before the first and second anniversary dates, subject to certain exceptions. The Credit Agreement matures on June 30, 2026. As of July 23, 2025, our available borrowings under the Credit Agreement were $204.6 million. We also utilize several loan securitization facilities and asset-backed notes to fund our growth, primarily in our near-prime consumer loan and small business loan portfolios. As of July 23, 2025, we had funding capacity of $639.5 million. We expect that our operating needs, including satisfying our obligations under our debt agreements and funding our working capital growth, will be satisfied by a combination of cash flows from operations, borrowings under the Credit Agreement, or any refinancing, replacement thereof or increase in borrowings thereunder, and securitization or sale of loans and finance receivables under our consumer and small business loan securitization facilities.
Previous wording
As of March 31, 2025, we were in compliance with all financial ratios, covenants and other requirements set forth in our debt agreements. Unexpected changes in our financial condition or other unforeseen factors may result in our inability to obtain third-party financing or could increase our borrowing costs in the future. To the extent we experience short-term or long-term funding disruptions, we have the ability to adjust our volume of lending and financing to consumers and small businesses that would reduce cash outflow requirements while increasing cash inflows through repayments. Additional alternatives may include the securitization or sale of assets, increased borrowings under the Credit Agreement, or any refinancing or replacement thereof, and reductions in capital spending, which could be expected to generate additional liquidity.
Current wording
As of June 30, 2025, we were in compliance with all financial ratios and covenants set forth in our debt agreements. Unexpected changes in our financial condition or other unforeseen factors may result in our inability to obtain third-party financing or could increase our borrowing costs in the future. To the extent we experience short-term or long-term funding disruptions, we have the ability to adjust our volume of lending and financing to consumers and small businesses that would reduce cash outflow requirements while increasing cash inflows through repayments. Additional alternatives may include the securitization or sale of assets, increased borrowings under the Credit Agreement, or any refinancing or replacement thereof, and reductions in capital spending, which could be expected to generate additional liquidity.
Previous wording
Total stockholders’ equity was $1,196.7 million at March 31, 2025 compared to $1,196.9 million at December 31, 2024. The slight decrease of stockholders’ equity was driven primarily by repurchases of our outstanding common stock, which is discussed in more detail below, partially offset by net income for the three months ended March 31, 2025 and, to a lesser extent, stock-based compensation expense. Our book value per share outstanding increased to $46.82 at March 31, 2025 from $46.38 at December 31, 2024, which was primarily driven by net income, partially offset by share repurchases.
Current wording
Total stockholders’ equity was $1,228.7 million at June 30, 2025 compared to $1,196.9 million at December 31, 2024. The increase of stockholders’ equity was driven primarily by net income for the six months ended June 30, 2025 and, to a lesser extent, stock-based compensation expense, partially offset by repurchases of our outstanding common stock, which is discussed in more detail below. Our book value per share outstanding increased to $49.01 at June 30, 2025 from $46.38 at December 31, 2024, which was primarily driven by net income, partially offset by share repurchases.
Previous wording
On October 24, 2023, we announced the Board of Directors authorized a share repurchase program totaling $300.0 million through December 31, 2024 (the “October 2023 Authorization”), which replaced our previous authorization. On August 12, 2024, we announced the Board of Directors authorized a new share repurchase program totaling $300.0 million through December 31, 2025 (the “August 2024 Authorization”), which replaced the October 2023 Authorization. The Company had repurchased $255.9 million of common stock under the October 2023 Authorization before it was terminated. Repurchases under our repurchase programs are made in accordance with applicable securities laws from time to time in the open market, through privately negotiated transactions or otherwise. The share repurchase programs do not obligate us to purchase any shares of our common stock. The August 2024 Authorization may be terminated, increased or decreased by the Board of Directors in its discretion at any time. During the three months ended March 31, 2025, we had $62.7 million in repurchases of common stock under our share repurchase program.
Current wording
On August 12, 2024, we announced the Board of Directors authorized a new share repurchase program totaling $300.0 million through December 31, 2025 (the “August 2024 Authorization”), which replaced the prior share repurchase authorization. The Company had repurchased $255.9 million of common stock under the prior share repurchase authorization before it was terminated. Repurchases under our repurchase programs are made in accordance with applicable securities laws from time to time in the open market, through privately negotiated transactions or otherwise. The share repurchase programs do not obligate us to purchase any shares of our common stock. The August 2024 Authorization may be terminated, increased or decreased by the Board of Directors in its discretion at any time. During the six months ended June 30, 2025, we had $117.0 million in repurchases of common stock under our share repurchase program.
Previous wording
Net cash provided by operating activities increased $42.5 million, or 12.2%, to $391.1 million in the current quarter from $348.6 million for the prior year quarter. The increase was driven primarily by additional interest and fee income from growth in the loan portfolio, partially offset by higher marketing expenses and additional interest expense on outstanding debt to fund growth in the loan portfolio.
Current wording
Net cash provided by operating activities increased $129.0 million, or 18.2%, to $838.5 million in the current six-month period from $709.5 million for the prior year six-month period. The increase was driven primarily by additional interest and fee income from growth in the loan portfolio, partially offset by higher marketing expenses and additional interest expense on outstanding debt to fund growth in the loan portfolio.
Previous wording
Net cash flows used in investing activities was $509.6 million for the current quarter compared to $443.2 million for the prior year quarter. This change was due primarily to loan originations outpacing repayments by a wider margin in the current quarter compared to the prior year quarter.
Current wording
Net cash flows used in investing activities was $1,037.8 million for the current six-month period compared to $850.0 million for the prior year six-month period. This change was due primarily to loan originations outpacing repayments by a wider margin in the current six-month period compared to the prior year six-month period.
Previous wording
Net cash provided by financing activities for the current quarter was driven primarily by $195.4 million in net borrowings under our securitization facilities, partially offset by $85.5 million in share repurchases. Cash flows used in financing activities for the prior year quarter were driven primarily by $168.7 million in repayments to extinguish the remaining balance of our 2024 Senior Notes and $151.4 million in share repurchases, partially offset by $185.7 million in net borrowings under our securitization facilities and $77.0 million in net borrowings under our revolving line of credit.
Current wording
Net cash provided by financing activities for the current six-month period was driven primarily by $372.9 million in net borrowings under our securitization facilities and $28.0 million in net borrowings under our revolving line of credit, partially offset by $140.9 million in share repurchases. Cash flows provided by financing activities for the prior year six-month period were driven primarily by $357.9 million in net borrowings under our securitization facilities and $63.0 million in net borrowings under our revolving line of credit, partially offset by $214.7 million in share repurchases and $168.7 million used to repay the 2025 Senior Notes.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Marketing expense increased to $142.8 million in the current quarter compared to $120.8 million in the prior year quarter due primarily to growth in the overall business with higher commissionable originations in our small business portfolio and higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products, partially offset by lower spend in certain channels and media as we optimize marketing efficiency.
Current report — wording carried from elsewhere
Revenue generated from the Company’s operations for the current six-month period and the prior year six-month period was as follows (in thousands):
Current report — wording carried from elsewhere
Average Loan and Finance Receivable Origination
Current report — wording carried from elsewhere
The average loan and finance receivable origination amount is calculated as the total amount of combined loans and finance receivables originated, renewed and purchased for the period divided by the total number of combined loans and finance receivables originated, renewed and purchased for the period. The following table shows the average loan and finance receivable origination amount by product for the current six-month period compared to the prior year six-month period:
Current report — wording carried from elsewhere
(a) The disclosure regarding the average loan origination amount is statistical data that is not included in our consolidated financial statements.
Current report — wording carried from elsewhere
(c) Represents the average amount of each incremental draw on line of credit accounts.
Current report — wording carried from elsewhere
The effective tax rate of 22.4% in the current six-month period was lower compared to the effective tax rate of 26.0% in the prior year six-month period. The decrease is primarily attributable to higher excess tax benefits on stock compensation due to stock price appreciation, a reduction of interest expense due to the remeasurement of unrecognized tax benefits and additional state attributes generated from legal entity restructuring.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
(a) In the first quarter of 2024, we recorded costs totaling $0.3 million related to a consent solicitation for the Senior Notes due 2025.
Previous report — wording carried elsewhere
(b) In the first quarter of 2024, we recorded other nonoperating expenses of $0.5 million related to early extinguishment of debt.