Enova International, Inc.

Second-quarter revenue was $929 million, up 22% year over year. Adjusted EPS was $4.31, up 33% year over year. Consolidated originations increased 27% year over year to nearly $2.3 billion, and the portfolio grew 28% year over year to $5.5 billion. The consolidated net revenue margin was 61%, and consolidated net charge-offs were 7.3%, down from 8.1% a year ago and 7.6% in Q1. Consumer revenue rose 11% to $477 million, consumer originations rose 23% to $691 million, and consumer net charge-offs improved to 12.8%. SMB revenue rose 35% to $439 million, SMB originations rose 29% to $1.6 billion, and SMB net charge-offs were 4.8%. For Q3 2026, management expects revenue about 25% higher year over year, net revenue margin of 55% to 60%, marketing around 20% of revenue, O&T around 8% to 8.5%, G&A around 5%, and adjusted EPS about 30% higher year over year. For full-year 2026, Enova now expects revenue growth of 20% to 25% and adjusted EPS growth of 30% to 35%, excluding Grasshopper.

Steve Cunningham said the quarter showed Enova’s model can scale quickly when demand and credit are supportive, emphasizing the company’s unit-economics discipline, diversified products, and real-time risk management. He pointed to stronger consumer and SMB demand, stable macro conditions, and resilient customers as reasons the business could continue growing profitably. On Grasshopper, he said integration planning is largely complete and the company is ready to close and capture synergies once approvals arrive.

Scott Cornelis highlighted that revenue, receivables, and originations all grew strongly while credit remained favorable, supporting a consolidated net revenue margin of 61%. He said the company ended the quarter with approximately $929 million of liquidity, including $478 million of cash and marketable securities and $451 million of debt-facility capacity, and that cost of funds improved to 8.1% from 8.2% in Q1 and 8.8% a year ago. He also noted $19 million of share repurchases for about 117,000 shares, and said near-term expense ratios should remain around 20% for marketing, 8% to 8.5% for O&T, and about 5% for G&A excluding one-time costs.

Analysts pressed on the consumer growth acceleration, and management said it was driven by stronger market demand, especially in consumer line of credit, rather than a deliberate loosening of risk appetite or a big marketing shift. On margins, management said the higher consumer net revenue margin this quarter should not be treated as a new benchmark and should revert toward more typical historical levels. Questions on Grasshopper focused on timing and strategic fit; management stayed cautious on regulatory specifics but said the bank deal should expand geographic reach, lower funding costs, and create future product and innovation opportunities. Analysts also asked about credit and underwriting, and management repeatedly said risk appetite has not changed on either consumer or SMB.