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.

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

Comparison of Consolidated Results for Three and Six Months Ended June 30, 2026 and 2025

Interest income increased $78 million or 6% and $156 million or 6% in the three and six months ended June 30, 2026 when compared to the same period in 2025 due to growth in average net receivables and an increase in yield.

Interest expense increased $9 million or 3% and $20 million or 3% in the three and six months ended June 30, 2026 when compared to the same period in 2025 due to an increase in average debt to support our receivables growth.

Provision for finance receivable losses increased $99 million or 19% and $107 million or 11% in the three and six months ended June 30, 2026 when compared to the same period in 2025 due to higher net charge-offs and growth in receivables.

Other revenues increased $31 million or 18% and $40 million or 11% in the three and six months ended June 30, 2026 when compared to the same period in 2025 driven by a decrease in losses on repurchases and repayments of debt and increases in credit card revenue from growth in new accounts and servicing revenue on loans serviced for others.

Other expenses increased $19 million or 4% and $66 million or 7% in the three and six months ended June 30, 2026 when compared to the same period in 2025 driven by increases in general operating expenses and salaries and benefits expense due to growth in receivables and our strategic investments in the business, as well as restructuring charges in the current period not present in the prior period. The increase was partially offset by a decrease in insurance policy benefits and claims expense due to the benefit of a reserve release.

Income taxes decreased $3 million or 7% for the three months ended June 30, 2026 when compared to the same period in 2025 due to lower pretax income. Income taxes increased $5 million or 4% in the six months ended June 30, 2026 when compared to the same period in 2025 due to timing of federal tax credits purchased in the prior year period.

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 loss resulting from repurchases and repayments of debt, restructuring charges, 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: