Enova International, Inc.
For the period ended Jun 30, 2026. Filed Jul 23, 2026.
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, 2026 · Filed Jul 23, 2026
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 2026-03-31; filed 2026-04-23.
0001193125-26-174021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-23.
0001193125-26-314590
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 151 previous paragraphs and 177 current paragraphs.
111 unchanged; 36 reworded; 21 added; 4 removed; 0 previous and 9 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 (21)
Current report
Consolidated net revenue was $568.0 million in the current quarter compared to $441.5 million in the prior year quarter.
Current report
(b) In the second quarter of 2025,we recorded other nonoperating expenses of $1.0 million ($0.8 million net of tax) related to the early extinguishment of debt.
Current report
The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.5% at June 30, 2026, which is consistent with the prior four sequential quarters, as performance and outlook remain stable on the portfolio.
Current report
Total operating expenses increased $73.5 million, or 28.6%, to $330.9 million in the current quarter compared to $257.4 million in the prior year quarter.
Current report
The effective tax rate of 25.0% in the current quarter was higher than the 24.6% rate recorded in the prior year quarter. The slightly higher effective tax rate is primarily due to additional state tax attributes that were generated from legal entity restructuring which were partially offset by unfavorable state rate changes in the prior year quarter.
Current report
SIX MONTHS ENDED JUNE 30, 2026 COMPARED TO SIX MONTHS ENDED JUNE 30, 2025
Current report
Revenue and Net Revenue
Current report
Revenue increased $294.5 million, or 19.5%, to $1,804.1 million for the six-month period ended June 30, 2026, or current six-month period, as compared to $1,509.6 million for the six-month period ended June 30, 2025, or prior year six-month period. The increase was driven by a 35.8% increase in revenue from our small business portfolio and a 7.5% 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 $1,097.1 million compared to $867.6 million for the prior year six-month period. Our consolidated net revenue margin was 60.8% for the current six-month period, as compared to 57.5% for the prior year six-month period. The increase was driven by an increase in net revenue margin in the consumer portfolio as well as a mix shift toward the small business portfolio, which generally has a higher net revenue margin compared to the consumer portfolio.
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 (dollars in thousands):
Current report
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
(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
Total Operating Expenses
Current report
Total operating expenses increased $141.2 million, or 27.6%, to $652.8 million in the current six-month period, compared to $511.6 million in the prior year six-month period.
Current report
General and administrative expense increased $8.9 million, or 10.7%, to $91.9 million in the current six-month period compared to $83.0 million in the prior year six-month period, due primarily to $4.1 million in transaction-related costs associated with the acquisition of Grasshopper as well as higher personnel costs. As a percentage of revenue, general and administrative expense decreased to 5.1% in the current six-month period from 5.5% in the prior year six-month period, as increased originations and revenues outpaced fixed costs.
Current report
Nonoperating Items
Current report
Interest expense, net increased $28.6 million, or 17.5%, to $191.9 million in the current six-month period compared to $163.3 million in the prior year six-month period. The increase was due primarily to an increase of $1,032.3 million in the average amount of debt outstanding to $4,782.7 million during the current six-month period from $3,750.4 million during the prior year six-month period, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.14% during the current six-month period from 8.84% 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
The effective tax rate of 22.5% in the current six-month period was relatively flat compared to the effective tax rate of 22.4% in the prior year six-month period.
Current report
Net Income
Current report
Net income increased $47.1 million, or 31.6%, to $196.2 million during the current six-month period compared to $149.1 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 (4)
Previous report
Consolidated net revenue was $529.0 million in the current quarter compared to $426.2 million in the prior year quarter.
Previous report
The ratio of fair value as a percentage of principal on small business loans and finance receivables was 112.2% at March 31, 2026 compared to 112.0% at March 31, 2025 and 112.3% at December 31, 2025. The slight changes from March 31, 2025 and December 31, 2025 were due primarily to changes in delinquency discussed earlier in this section.
Previous report
Total operating expenses increased $67.6 million, or 26.6%, to $321.9 million in the current quarter compared to $254.3 million in the prior year quarter.
Previous report
The effective tax rate of 19.3% in the current quarter was lower than the 19.9% rate recorded in the prior year quarter. The lower effective tax rate is primarily due to higher excess tax benefits on stock compensation due to stock price appreciation and interest income on a federal income tax refund in the current quarter, partially offset by increased interest expense on unrecognized tax benefits.
Reworded paragraphs (36)
Previous wording
We are a leading technology and analytics company focused on providing online financial services. In 2025, we extended approximately $7.8 billion in credit or financing to borrowers and for the three months ended March 31, 2026, we extended approximately $2.3 billion in credit or financing to borrowers. As of March 31, 2026, we offered or arranged loans or draws on lines of credit to consumers in 39 states in the United States and Brazil. We also offered or arranged financing to small businesses in 49 states and Washington D.C. in the United States. We use our proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing us to offer consumers and small businesses credit or financing when and how they want it. Our customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. We were an early entrant into online lending, launching our online business in 2004, and through March 31, 2026, we have completed approximately 70.4 million customer transactions and collected more than 95 terabytes of currently accessible customer behavior data since launch, allowing us to better analyze and underwrite our specific customer base. We have significantly diversified our business over the past several years, having expanded the markets we serve and the financing products we offer. These financing products include installment loans and line of credit accounts.
Current wording
We are a leading technology and analytics company focused on providing online financial services. In 2025, we extended approximately $7.8 billion in credit or financing to borrowers and for the six months ended June 30, 2026, we extended approximately $4.6 billion in credit or financing to borrowers. As of June 30, 2026, we offered or arranged loans or draws on lines of credit to consumers in 38 states in the United States and Brazil. We also offered or arranged financing to small businesses in 49 states and Washington D.C. in the United States. We use our proprietary technology, analytics and customer service capabilities to quickly evaluate, underwrite and fund loans or provide financing, allowing us to offer consumers and small businesses credit or financing when and how they want it. Our customers include the large and growing number of consumers and small businesses that have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. We were an early entrant into online lending, launching our online business in 2004, and through June 30, 2026, we have completed approximately 71.6 million customer transactions and collected more than 95 terabytes of currently accessible customer behavior data since launch, allowing us to better analyze and underwrite our specific customer base. We have significantly diversified our business over the past several years, having expanded the markets we serve and the financing products we offer. These financing products include installment loans and line of credit accounts.
Previous wording
Consumer installment loans. Certain subsidiaries (i) directly offer installment loans, (ii) as part of our Bank Programs, as discussed below, purchase, or purchase a participating interest in, installment loans or (iii) as part of our CSO program, arrange and guarantee installment loans, as discussed below, to consumers in 37 states in the United States. Internationally, we also offer or arrange unsecured consumer installment loan products in Brazil. Terms for our consumer installment loan products range between 3 and 60 months with an average contractual term of 39 months. These loans have regular payments that amortize principal. Loan sizes for these products range between $300 and $10,000. The majority of these loans accrue interest daily at a fixed rate for the life of the loan and have no fees. The average annualized yield for these loans was 90% for the year ended December 31, 2025. Loans may be repaid early at any time with no additional prepayment charges.
Current wording
Consumer installment loans. Certain subsidiaries (i) directly offer installment loans, (ii) as part of our Bank Programs, as discussed below, purchase, or purchase a participating interest in, installment loans or (iii) as part of our CSO program, arrange and guarantee installment loans, as discussed below, to consumers in 36 states in the United States. Internationally, we also offer or arrange unsecured consumer installment loan products in Brazil. Terms for our consumer installment loan products range between 3 and 60 months with an average contractual term of 39 months. These loans have regular payments that amortize principal. Loan sizes for these products range between $300 and $10,000. The majority of these loans accrue interest daily at a fixed rate for the life of the loan and have no fees. The average annualized yield for these loans was 90% for the year ended December 31, 2025. Loans may be repaid early at any time with no additional prepayment charges.
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 June 18, 2025, following various litigation challenges, the CFPB issued an interim final rule to extend the compliance deadlines by approximately one year. It further indicated its intent to initiate a new Section 1071 rulemaking and that it anticipated issuing a notice of proposed rulemaking as expeditiously as reasonably possible. On October 2, 2025, the CFPB published a final rule with the same extended compliance dates provided for in the June interim rule. On November 13, 2025, the CFPB issued a notice of proposed rulemaking to narrow the scope of the rule, including removing certain data points, and to extend the compliance date to January 1, 2028. Absent further court action, legislative action or action by the CFPB, including any further extension of the compliance date, the Company’s small business loan business will need to update its application process to appropriately collect, store and report data required by Section 1071’s implementing regulation. The Company will continue to monitor litigation, rulemaking and bills related to the rule.
Current wording
On March 30, 2023, the CFPB issued its initial 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 the applicant’s principal owners’ ethnicity, race and sex. On May 1, 2026, the CFPB issued a revised final rule for Section 1071. The revised final rule made substantive changes to the initial final rule, including changing the definition of a small business, excluding certain products, and streamlining the required data fields. In addition, it extended the compliance deadline to January 1, 2028 and the initial reporting deadline to June 2029. Absent further court action, legislative action or action by the CFPB, including any further extension of the compliance date, the Company’s small business loan business will need to update its application process to appropriately collect, store and report data required by Section 1071’s implementing regulation. The Company will continue to monitor litigation, rulemaking and bills related to the rule.
Previous wording
Consolidated total revenue increased $129.6 million, or 17.4%, to $875.1 million in the current quarter compared to $745.5 million for the three months ended March 31, 2025, or the prior year quarter.
Current wording
Consolidated total revenue increased $164.8 million, or 21.6%, to $928.9 million in the current quarter compared to $764.1 million for the three months ended June 30, 2025, or the prior year quarter.
Previous wording
Consolidated income from operations increased $35.2 million, or 20.5%, to $207.1 million in the current quarter compared to $171.9 million in the prior year quarter.
Current wording
Consolidated income from operations increased $53.0 million, or 28.8%, to $237.1 million in the current quarter compared to $184.1 million in the prior year quarter.
Previous wording
Consolidated net income was $91.1 million in the current quarter compared to $72.9 million in the prior year quarter. Consolidated diluted income per share was $3.46 in the current quarter compared to $2.69 in the prior year quarter.
Current wording
Consolidated net income was $105.1 million in the current quarter compared to $76.1 million in the prior year quarter. Consolidated diluted income per share was $4.00 in the current quarter compared to $2.86 in the prior year quarter.
Previous wording
In 2025 and the first three months of 2026, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, tariffs and other macroeconomic trends. In certain situations, management concluded that the probability of future charge-offs or prepayments was different than what we had experienced in the past and, therefore, altered those assumptions in our fair value models. We continue to utilize this approach and have adjusted these assumptions where appropriate. We also evaluate the discount rates used in our models on a quarterly basis and adjust when appropriate to be responsive to changes in the market and representative of what a market participant would use. As of March 31, 2026, we deemed the resulting fair value of our loans and finance receivables to be an appropriate market-based exit price that considers current market conditions.
Current wording
In 2025 and the first six months of 2026, views in the marketplace on the economy and its near-term prospects remained mixed with concerns on employment, inflation, tariffs and other macroeconomic trends. In certain situations, management concluded that the probability of future charge-offs or prepayments was different than what we had experienced in the past and, therefore, altered those assumptions in our fair value models. We continue to utilize this approach and have adjusted these assumptions where appropriate. We also evaluate the discount rates used in our models on a quarterly basis and adjust when appropriate to be responsive to changes in the market and representative of what a market participant would use. As of June 30, 2026, we deemed the resulting fair value of our loans and finance receivables to be an appropriate market-based exit price that considers current market conditions.
Previous wording
(a) In the first quarter of 2026, we recorded costs totaling $2.7 million ($2.0 million net of tax) related to the pending acquisition of Grasshopper.
Current wording
(a) In the first six months of 2026, we recorded costs totaling $4.1 million ($3.2 million net of tax) related to the pending acquisition of Grasshopper.
Previous wording
We provide Adjusted EBITDA, which is a non-GAAP measure that we define as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes, stock-based compensation expense and certain other items, as appropriate, that are not indicative of our core operating performance. We utilize, and also believe that investors utilize, Adjusted EBITDA to analyze operating performance and evaluate our ability to incur and service debt and our capacity for making capital expenditures. We believe Adjusted EBITDA is useful to management and investors in comparing our financial results during the periods shown without the effect of certain non-cash items and certain items that are not indicative of our core operating performance or results of operations. Adjusted EBITDA is also useful to investors to help assess our estimated enterprise value. The computation of Adjusted EBITDA, as presented below, may differ from the computation of similarly-titled measures provided by other companies (dollars in thousands):
Current wording
We provide Adjusted EBITDA, which is a non-GAAP measure that we define as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes, stock-based compensation expense and certain other items, as appropriate, that are not indicative of our core operating performance. We utilize, and also believe that investors utilize, Adjusted EBITDA to analyze operating performance and evaluate our ability to incur and service debt and our capacity for making capital expenditures. We believe Adjusted EBITDA is useful to management and investors in comparing our financial results during the periods shown without the effect of certain non-cash items and certain items that are not indicative of our core operating performance or results of operations. Adjusted
Previous wording
Refer to footnotes in previous table for explanation of (a).
Current wording
Refer to footnotes in previous table for explanation of (a) and (b).
Previous wording
Revenue increased $129.6 million, or 17.4%, to $875.1 million for the current quarter as compared to $745.5 million for the prior year quarter. The increase was driven by a 37.1% increase in revenue from our small business portfolio and a 3.5% increase in revenue from our consumer portfolio as higher levels of originations have led to higher loan balances for both portfolios.
Current wording
Revenue increased $164.8 million, or 21.6%, to $928.9 million for the current quarter as compared to $764.1 million for the prior year quarter. The increase was driven by a 34.6% increase in revenue from our small business portfolio and a 11.5% 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 $529.0 million compared to $426.2 million for the prior year quarter. Our consolidated net revenue margin was 60.4% for the current quarter compared to 57.2% for the prior year quarter. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of net revenue for the current quarter.
Current wording
Net revenue for the current quarter was $568.0 million compared to $441.5 million for the prior year quarter. Our consolidated net revenue margin was 61.2% for the current quarter compared to 57.8% for the prior year quarter. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of net revenue for the current quarter.
Previous wording
The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $5,873.0 million and $4,569.8 million as of March 31, 2026 and 2025, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $5,098.5 million and $3,964.4 million as of March 31, 2026 and 2025, respectively. The fair value of the combined loan and finance receivables portfolio includes $20.9 million and $21.2 million with an outstanding principal balance of $14.8 million and $14.8 million of consumer loan balances that are guaranteed by us but not owned by us, which are not included in our consolidated financial statements as of March 31, 2026 and 2025, respectively.
Current wording
The fair value of our loan and finance receivable portfolio in our consolidated financial statements was $6,172.8 million and $4,773.3 million as of June 30, 2026 and 2025, respectively. The outstanding principal balance of our loan and finance receivables portfolio was $5,351.1 million and $4,141.1 million as of June 30, 2026 and 2025, respectively. The fair value of the combined loan and finance receivables portfolio includes $27.6 million and $23.8 million with an outstanding principal balance of $19.4 million and $16.8 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 June 30, 2026 and 2025, respectively.
Previous wording
The consumer portfolio balance was 30.3% of our combined loan and finance receivable portfolio balance at fair value as of March 31, 2026 compared to 35.7% as of March 31, 2025. Our small business portfolio of loans and finance receivables was 69.7% of our combined loan and finance receivable portfolio at fair value as of March 31, 2026 compared to 64.3% as of March 31, 2025. See “Non-GAAP Financial Measures—Combined Loans and Finance Receivables Measures” above for additional information related to combined loans and finance receivables.
Current wording
The consumer portfolio balance was 31.4% of our combined loan and finance receivable portfolio balance at fair value as of June 30, 2026 compared to 35.3% as of June 30, 2025. Our small business portfolio of loans and finance receivables was 68.6% of our combined loan and finance receivable portfolio at fair value as of June 30, 2026 compared to 64.7% as of June 30, 2025. See “Non-GAAP Financial Measures—Combined Loans and Finance Receivables Measures” above for additional information related to combined loans and finance receivables.
Previous wording
At March 31, 2026 and 2025, the ratio of fair value as a percentage of principal was 115.2% and 115.3%, respectively, on company owned loans and finance receivables and 115.3% and 115.4%, respectively, on combined loans and finance receivables. These ratios were relatively flat compared to the prior year. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of fair value ratios for the current quarter.
Current wording
At June 30, 2026 and 2025, the ratio of fair value as a percentage of principal was 115.4% and 115.3%, respectively, on company owned loans and finance receivables and 115.5% and 115.4%, respectively, on combined loans and finance receivables. These ratios were relatively flat compared to the prior year. Refer to “—Consumer Loans and Finance Receivables” and “—Small Business Loans and Finance Receivables” below for additional discussion of fair value ratios for the current quarter.
Previous wording
The average loan and finance receivable origination amount increased to $2,180 during the current quarter from $1,721 during the prior year quarter, due primarily to a higher proportion of loans originated in the small business portfolio, the average size of which greatly exceeds the average size of loans originated in the consumer portfolio.
Current wording
The average loan and finance receivable origination amount increased to $1,914 during the current quarter from $1,691 during the prior year quarter, due primarily to a higher proportion of loans originated in the small business portfolio, the average size of which greatly exceeds the average size of loans originated in the consumer portfolio. The average loan and finance receivable origination amount for the small business portfolio decreased during the current quarter compared to the prior year quarter due primarily to a higher proportion of line of credit draws, which are lower on average compared to installment loan originations.
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, 2026 increased 7.6% to $1,578.9 million compared to $1,467.5 million at March 31, 2025, due primarily to originations outpacing repayments.
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, 2026 increased 13.7% to $1,731.1 million compared to $1,522.2 million at June 30, 2025, due primarily to originations outpacing repayments.
Previous wording
The percentage of loans greater than 30 days delinquent of 7.9% was slightly lower at March 31, 2026 compared to 8.2% at March 31, 2025, and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance decreased to 14.3% in the current quarter compared to 15.2% for the prior year quarter. These improvements were due primarily to a higher percentage of originations to returning customers, which typically default at a lower rate compared to new customers, and a minor mix shift toward loans and finance receivables with higher credit quality and lower yields, as compared to the prior year quarter. Compared to the prior sequential quarter ending December 31, 2025, the percentage of loans greater than 30 days delinquent remained relatively flat while charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance decreased, which is fairly consistent with our normal seasonal pattern.
Current wording
The percentage of loans greater than 30 days delinquent of 7.6% was lower at June 30, 2026 compared to 8.0% at June 30, 2025, and charge-offs (net of recoveries) as a percentage of average combined loan and finance receivable balance decreased to 12.8% in the current quarter compared to 14.5% for the prior year quarter. These levels were in the normal range for both periods, although slightly toward the higher end in the prior year quarter. Compared to the prior sequential quarter ending March 31, 2026, 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 $445.8 million for the current quarter compared to $430.8 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio. The net revenue margin related to our consumer loans and finance receivables was 51.7% in the current quarter, which was slightly higher than the average net revenue margin in the prior four sequential quarters due primarily to slightly lower charge-offs (net of recoveries) and delinquencies.
Current wording
Revenue related to our consumer loans and finance receivables was $477.4 million for the current quarter compared to $428.3 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio. The net revenue margin related to our consumer loans and finance receivables was 57.3% in the current quarter, which was higher than the net revenue margin in the prior four sequential quarters due primarily to strong growth coupled with lower charge-offs (net of recoveries) and delinquencies.
Previous wording
The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 122.9% at March 31, 2026, which is slightly higher compared to 122.1% at March 31, 2025 and 122.2% at December 31, 2025 due primarily to the customer and product mix shifts discussed earlier in this section. Refer also to “Results of Operations—Valuation of Loans and Finance Receivables” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional discussion on loan valuation.
Current wording
The ratio of fair value as a percentage of principal on consumer loans and finance receivables was 122.5% at June 30, 2026, which is slightly higher compared to 121.6% at June 30, 2025 due to improvement in credit metrics discussed earlier in this section. The ratio of fair value as a percentage of principal at June 30, 2026 was slightly lower compared to 122.9% at March 31, 2026, which followed our typical seasonal pattern. 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, 2026 increased 38.6% to $3,696.7 million compared to $2,667.7 million at March 31, 2025, due primarily to originations outpacing repayments.
Current wording
The ending balance, including principal and accrued fees/interest outstanding, of small business loans and finance receivables at June 30, 2026 increased 36.5% to $3,816.1 million compared to $2,796.5 million at June 30, 2025, due primarily to originations outpacing repayments.
Previous wording
The percentage of loans greater than 30 days delinquent of 7.1% was lower at March 31, 2026 compared to 7.4% at March 31, 2025 due to improvement in credit performance. Compared to the prior sequential quarter ending December 31, 2025, the percentage of loans greater than 30 days delinquent increased but remains within the range observed over the prior four years and consistent with our expectations for the portfolio. Charge-offs (net of recoveries) as a percentage of average loan balance of 4.6% during the current quarter were consistent with the prior four sequential quarters.
Current wording
The percentage of loans greater than 30 days delinquent of 7.4% was higher at June 30, 2026 compared to 6.6% at June 30, 2025 and 7.1% at March 31, 2026, but remains within the range observed over the prior four years and consistent with our expectations for the portfolio. Charge-offs (net of recoveries) as a percentage of average loan and finance receivable balance of 4.8% during the current quarter were fairly consistent with the prior four sequential quarters.
Previous wording
Revenue related to our small business loans and finance receivables was $417.5 million for the current quarter compared to $304.6 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio. The net revenue margin related to our small business loans and finance receivables was 69.2% for the current quarter, which is consistent with the prior four sequential quarters, which had an average net revenue margin of 69.9%, as credit performance and yields were steady.
Current wording
Revenue related to our small business loans and finance receivables was $439.3 million for the current quarter compared to $326.3 million for the prior year quarter. The increase in revenue was driven primarily by growth in the overall portfolio. The net revenue margin related to our small business loans and finance receivables was 64.7% for the current quarter, which is slightly lower than the prior four sequential quarters, but remains within the range observed over the prior four years and consistent with our expectations for the portfolio, as credit performance and yields were also within expectations.
Previous wording
Operations and technology expense increased to $75.8 million in the current quarter compared to $62.5 million in the prior year quarter, due primarily to higher variable costs, particularly underwriting costs, personnel costs and other selling expenses as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense increased slightly to 8.7% in the current year quarter from 8.4% in the prior year quarter due primarily to slightly higher underwriting costs.
Current wording
Operations and technology expense increased to $74.9 million in the current quarter compared to $63.7 million in the prior year quarter, due primarily to higher variable costs, particularly underwriting costs, computer and software maintenance, and personnel costs as a result of increases in originations and the size of the loan portfolio. As a percentage of revenue, operations and technology expense decreased slightly to 8.1% in the current year quarter from 8.3% in the prior year quarter due primarily to growth in revenue outpacing personnel costs.
Previous wording
General and administrative expense increased to $47.8 million in the current quarter compared to $42.5 million in the prior year quarter due primarily to higher personnel costs and $2.7 million in transaction-related costs associated with the acquisition of Grasshopper. As a percentage of revenue, general and administrative expense decreased to 5.5% in the current year quarter from 5.7% in the prior year quarter, as increased originations and revenues outpaced fixed costs.
Current wording
General and administrative expense increased to $44.1 million in the current quarter compared to $40.5 million in the prior year quarter due primarily to transaction-related costs associated with the acquisition of Grasshopper. As a percentage of revenue, general and administrative expense decreased to 4.7% in the current year quarter from 5.3% in the prior year quarter, as increased originations and revenues outpaced fixed costs.
Previous wording
Depreciation and amortization expense decreased $1.1 million or 11.5% compared to the prior year quarter driven primarily by certain intangible assets reaching the end of their amortizable lives between quarters, partially offset by general growth in the business and additional internally-developed software placed into service.
Current wording
Depreciation and amortization expense decreased $2.0 million or 18.7% compared to the prior year quarter driven primarily by certain intangible assets reaching the end of their amortizable lives between quarters.
Previous wording
Interest expense, net increased $13.5 million, or 16.8%, to $94.0 million in the current quarter compared to $80.5 million in the prior year quarter. The increase was due primarily to an increase of $1,000.1 million, or 27.2%, in the average amount of debt outstanding to $4,680.8 million during the current quarter from $3,680.7 million during the prior year quarter, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.18% during the current quarter from 8.91% during the prior year quarter resulting primarily from year-over-year decreases in benchmark rates.
Current wording
Interest expense, net increased $15.0 million, or 18.2%, to $97.8 million in the current quarter compared to $82.8 million in the prior year quarter. The increase was due primarily to an increase of $1,064.6 million, or 27.8%, in the average amount of debt outstanding to $4,884.6 million during the current quarter from $3,820.0 million during the prior year quarter, partially offset by a decrease in the weighted average interest rate on our outstanding debt to 8.10% during the current quarter from 8.76% during the prior year quarter resulting primarily from year-over-year decreases in benchmark rates.
Previous wording
Net income increased $18.2 million, or 24.9%, to $91.1 million during the current quarter compared to $72.9 million during the prior year quarter. The increase was due primarily to an increase in income from operations due to higher net revenue which outpaced increases in operating expenses as a percentage of revenue, partially offset by higher interest expense, which was the result of an increase in the average amount of debt outstanding.
Current wording
Net income increased $29.0 million, or 38.0%, to $105.1 million during the current quarter compared to $76.1 million during the prior year quarter. The increase was due primarily to an increase in income from operations due to higher net revenue which outpaced increases in operating expenses as a percentage of revenue, partially offset by higher interest expense, which was the result of an increase in the average amount of debt outstanding.
Previous wording
Marketing expense increased to $189.4 million in the current quarter compared to $139.3 million in the prior year quarter due primarily to growth in the overall business with higher commissionable originations in our small business portfolio and higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products, partially offset by lower spend in certain channels and media as we optimize marketing efficiency.
Current wording
Marketing expense increased to $393.0 million in the current six-month period compared to $282.1 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, partially offset by lower spend in certain channels and media as we optimize marketing efficiency.
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, 2026, we had cash, cash equivalents, and restricted cash of $421.4 million, of which $325.2 million was restricted, compared to $407.9 million, of which $336.2 million was restricted, as of December 31, 2025. During the three months ended March 31, 2026, we increased the borrowing capacity of two consumer loan securitization facilities by a total of $125.0 million and increased the borrowing capacity of two small business loan securitization facilities by a total of $252.0 million. As of March 31, 2026, we had aggregate funding capacity of $654.3 million. Based on numerous stressed-case modeling scenarios, we believe we have sufficient liquidity to run our operations for the foreseeable future. Further, we have no recourse debt obligations scheduled to mature until December 2028. As part of our capital and liquidity management, we may from time to time acquire our outstanding debt securities, including through redemptions, tender offers, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws and in compliance with the indentures governing our outstanding debt securities, upon such terms and at such prices as we may determine.
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, 2026, we had cash, cash equivalents, and restricted cash of $465.2 million, of which $343.0 million was restricted, compared to $407.9 million, of which $336.2 million was restricted, as of December 31, 2025. During the six months ended June 30, 2026, we increased the borrowing capacity of two consumer loan securitization facilities by a total of $125.0 million and increased the borrowing capacity of two small business loan securitization facilities by a total of $252.0 million. As of June 30, 2026, we had aggregate funding capacity of $450.6 million. Based on numerous stressed-case modeling scenarios, we believe we have sufficient liquidity to run our operations for the foreseeable future. Further, we have no recourse debt obligations scheduled to mature until December 2028. As part of our capital and liquidity management, we may from time to time acquire our outstanding debt securities, including through redemptions, tender offers, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws and in compliance with the indentures governing our outstanding debt securities, upon such terms and at such prices as we may determine.
Previous wording
We have a secured revolving credit facility (the “Credit Agreement”) that we utilize for general corporate purposes, which may include funding loan originations and providing liquidity for short-term working capital needs. On August 28, 2025, we amended the Credit Agreement to, among other changes, increase the total commitment amount from $665.0 million to $825.0 million, extend the maturity date from June 2026 to August 2029 and reduce the interest rate, as applicable, from the base rate plus 0.75% to the base rate plus 0.50% and from the SOFR rate plus 3.50% to the SOFR rate plus 3.25%. In addition to customary fees for a credit facility of this size and type, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the commitment, and ranges from 0.15% per annum to 0.50% per annum depending on usage. As of April 20, 2026, our available borrowings under the Credit Agreement were $293.6 million. We also utilize several loan securitization facilities and asset-backed notes to fund our growth, primarily in our near-prime consumer loan and small business loan portfolios, which provide funding capacity of $359.7 million as of April 20, 2026. We expect that our operating needs, including satisfying our obligations under our debt agreements and funding our working capital growth, will be satisfied by a combination of cash flows from operations, borrowings under the Credit Agreement, or any refinancing, replacement thereof or increase in borrowings thereunder, and securitization or sale of loans and finance receivables under our consumer and small business loan securitization facilities.
Current wording
We have a secured revolving credit facility (the “Credit Agreement”) that we utilize for general corporate purposes, which may include funding loan originations and providing liquidity for short-term working capital needs. On August 28, 2025, we amended the Credit Agreement to, among other changes, increase the total commitment amount from $665.0 million to $825.0 million, extend the maturity date from June 2026 to August 2029 and reduce the interest rate, as applicable, from the base rate plus 0.75% to the base rate plus 0.50% and from the SOFR rate plus 3.50% to the SOFR rate plus 3.25%. In addition to customary fees for a credit facility of this size and type, the Credit Agreement provides for payment of a commitment fee calculated with respect to the unused portion of the commitment, and ranges from 0.15% per annum to 0.50% per annum depending on usage. As of July 20, 2026, our available borrowings under the Credit Agreement were $164.6 million. We also utilize several loan securitization facilities and asset-backed notes to fund our growth, primarily in our near-prime consumer loan and small business loan portfolios, which provide funding capacity of $148.0 million as of July 20, 2026. We expect that our operating needs, including satisfying our obligations under our debt agreements and funding our working capital growth, will be satisfied by a combination of cash flows from operations, borrowings under the Credit Agreement, or any refinancing, replacement thereof or increase in borrowings thereunder, and securitization or sale of loans and finance receivables under our consumer and small business loan securitization facilities.
Previous wording
Total stockholders’ equity was $1,401.8 million at March 31, 2026 compared to $1,336.7 million at December 31, 2025. The increase of stockholders’ equity was driven primarily by net income for the three months ended March 31, 2026 and, to a lesser extent, stock-based compensation expense, partially offset by repurchases of our outstanding common stock, which is discussed in more detail below. Our book value per share outstanding increased to $56.25 at March 31, 2026 from $54.08 at December 31, 2025, which was primarily driven by net income, partially offset by share repurchases.
Current wording
Total stockholders’ equity was $1,497.1 million at June 30, 2026 compared to $1,336.7 million at December 31, 2025. The increase of stockholders’ equity was driven primarily by net income for the six months ended June 30, 2026 and, to a lesser extent, stock-based compensation expense, partially offset by repurchases of our outstanding common stock, which is discussed in more detail below. Our book value per share outstanding increased to $60.16 at June 30, 2026 from $54.08 at December 31, 2025, which was primarily driven by net income, partially offset by share repurchases.
Previous 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. On November 12, 2025, we announced the Board of Directors authorized a new share repurchase program totaling $400.0 million through June 30, 2027 (the “November 2025 Authorization”), which replaced the August 2024 Authorization, under which the Company had repurchased $238.9 million of common stock. As of March 31, 2026, the Company had repurchased $32.2 million of common stock under the November 2025 Authorization. Repurchases under our repurchase programs are made from time to time in accordance with applicable securities laws in the open market, through privately negotiated transactions or otherwise. The share repurchase programs do not obligate us to purchase any shares of our common stock. The November 2025 Authorization may be terminated, increased or decreased by the Board of Directors in its discretion at any time. During the three months ended March 31, 2026, we had $15.6 million in repurchases of common stock under our share repurchase program.
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. On November 12, 2025, we announced the Board of Directors authorized a new share repurchase program totaling $400.0 million through June 30, 2027 (the “November 2025 Authorization”), which replaced the August 2024 Authorization, under which the Company had repurchased $238.9 million of common stock. As of June 30, 2026, the Company had repurchased $51.4 million of common stock under the November 2025 Authorization. Repurchases under our repurchase programs are made from time to time in accordance with applicable securities laws in the open market, through privately negotiated transactions or otherwise. The share repurchase programs do not obligate us to purchase any shares of our common stock. The November 2025 Authorization may be terminated, increased or decreased by the Board of Directors in its discretion at any time. During the six months ended June 30, 2026, we had $34.8 million in repurchases of common stock under our share repurchase program.
Previous wording
Net cash provided by operating activities increased $83.4 million, or 21.3%, to $474.5 million in the current quarter from $391.1 million for the prior year quarter. The increase was driven primarily by additional interest and fee income from growth in the loan portfolio, partially offset by higher marketing expenses, variable operations and technology expenses and interest expense on higher outstanding debt balances to fund growth in the loan portfolio.
Current wording
Net cash provided by operating activities increased $180.1 million, or 21.5%, to $1,018.6 million in the current six-month period from $838.5 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, higher interest expense on higher outstanding debt balances to fund growth in the loan portfolio, and higher variable operations and technology expenses.
Previous wording
Net cash flows used in investing activities was $753.4 million for the current quarter compared to $509.6 million for the prior year quarter. This change was due primarily to loan originations outpacing repayments by a wider margin in the current quarter compared to the prior year quarter.
Current wording
Net cash flows used in investing activities was $1,411.3 million for the current six-month period compared to $1,037.8 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 $317.2 million in net borrowings under our securitization facilities and $14.0 million in net borrowings under our revolving line of credit, partially offset by $39.6 million in share repurchases. Cash flows provided by financing activities for the prior year quarter were driven primarily by $195.4 million in net borrowings under our securitization facilities, partially offset by $85.5 million in share repurchases.
Current wording
Net cash provided by financing activities for the current six-month period was driven primarily by $526.7 million in net borrowings under our securitization facilities, partially offset by $59.4 million in share repurchases and $17.0 million in net repayments under our revolving line of credit. Cash flows provided by financing activities for the prior year six-month period were 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.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
EBITDA is also useful to investors to help assess our estimated enterprise value. The computation of Adjusted EBITDA, as presented below, may differ from the computation of similarly-titled measures provided by other companies (dollars in thousands):
Current report — wording carried from elsewhere
Marketing expense increased to $203.5 million in the current quarter compared to $142.8 million in the prior year quarter due primarily to growth in the overall business with higher online advertising costs intended to capture increasing market demand for both our consumer and small business loan products and higher commissionable originations in our small business portfolio.
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 average loan and finance receivable origination amount increased to $2,038 from $1,706 during the current six-month period compared to the prior year six-month period, due primarily to a higher proportion of loans originated in the small business portfolio, the average size of which greatly exceeds the average size of loans originated in the consumer portfolio. The average loan and finance receivable origination amount for the small business portfolio decreased during the current six-month period compared to the prior year six-month period due primarily to a higher proportion of line of credit draws, which are lower on average compared to installment loan originations.
Current report — wording carried from elsewhere
Operations and technology expense increased to $150.6 million in the current six-month period compared to $126.1 million in the prior year six-month period, due primarily to higher variable costs, particularly underwriting costs, personnel costs and computer and software maintenance 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 slightly to 8.3% in the current six-month period from 8.4% in the prior year six-month period, as increased originations and revenues outpaced fixed costs.
Current report — wording carried from elsewhere
Depreciation and amortization expense decreased $3.1 million or 15.1% compared to the prior year six-month period driven primarily by certain intangible assets reaching the end of their amortizable lives between periods.