ONEMAIN FINANCE CORP

Results of Operations

The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this section relates only to OMH. See Note 1 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information.

OMH’S CONSOLIDATED RESULTS

The following table below presents OMH’s consolidated operating results and selected financial statistics. A further discussion of OMH’s operating results for our operating segment is provided under “Segment Results” below.

(a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.

(b) The calculations for the nine months ended September 30, 2024 have been adjusted for policy alignment associated with the Foursight Acquisition. See Note 4 of the Notes to the Consolidated Financial Statements in Part II - Item 8 of our Annual Report for additional information.

Comparison of Consolidated Results for Three and Nine Months Ended September 30, 2025 and 2024

Interest income increased $110 million or 9% and $366 million or 10% for the three and nine months ended September 30, 2025 when compared to the same periods in 2024 due to growth in average net receivables and an increase in yield.

Interest expense increased $19 million or 6% for the three months ended September 30, 2025 when compared to the same period in 2024 due to an increase in average debt to support our receivables growth.

Interest expense increased $75 million or 9% for the nine months ended September 30, 2025 when compared to the same period in 2024 due to an increase in average debt to support our receivables growth and a higher average cost of funds.

Provision for finance receivable losses decreased $24 million or 5% for the three months ended September 30, 2025 when compared to the same period in 2024 due to a larger build in the allowance for finance receivable losses in the prior period.

Provision for finance receivable losses decreased $64 million or 4% for the nine months ended September 30, 2025 when compared to the same period in 2024 reflecting the impact of the Foursight Acquisition in the second quarter of 2024 and lower net charge-offs, offset by growth in receivables.

Other revenues decreased $19 million or 11% for the three months ended September 30, 2025 when compared to the same period in 2024 due to an increase in losses on repurchases and repayments of debt, partially offset by a higher gain on sales of finance receivables.

Other revenues decreased $10 million or 2% for the nine months ended September 30, 2025 when compared to the same period in 2024 due to an increase in losses on repurchases and repayments of debt and a decrease in investment revenue due to declining interest rates and lower average corporate cash balances, partially offset by a higher gain on sales of finance receivables and an increase in credit card revenue from growth in receivables.

Other expenses increased $40 million or 9% and $96 million or 7% for the three and nine months ended September 30, 2025 when compared to the same periods in 2024 driven by increases in salaries and benefits expense and general operating expenses due to growth in receivables and our strategic investments in the business. The increase for the nine months ended was partially offset by lower restructuring charges in the current period.

Income taxes increased $14 million or 29% and $53 million or 44% for the three and nine months ended September 30, 2025 when compared to the same periods in 2024 due to higher pretax income.

NON-GAAP FINANCIAL MEASURES

Management uses C&I adjusted pretax income (loss), a non-GAAP financial measure, as a key performance measure of our segment. C&I adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes net gain or loss resulting from repurchases and repayments of debt, restructuring charges, acquisition-related transaction and integration expenses, and other items and strategic activities. Management believes C&I adjusted pretax income (loss) is useful in assessing the profitability of our segment.

Management also uses pretax capital generation, a non-GAAP financial measure, as a key performance measure of our segment. This measure represents C&I adjusted pretax income as discussed above and excludes the change in our C&I allowance for finance receivable losses in the period while still considering the C&I net charge-offs incurred during the period. Management believes that pretax capital generation is useful in assessing the capital created in the period impacting the overall capital adequacy of the Company. Management believes that the Company’s reserves, combined with its equity, represent the Company’s loss absorption capacity.

Management utilizes both C&I adjusted pretax income (loss) and pretax capital generation in evaluating our performance. Additionally, both of these non-GAAP measures are consistent with the performance goals established in OMH’s executive compensation program. C&I adjusted pretax income (loss) and pretax capital generation are non-GAAP financial measures and should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP.

OMH’s reconciliations of income before income tax expense on a Segment Accounting Basis to C&I adjusted pretax income (non-GAAP) and pretax capital generation (non-GAAP) were as follows: