OneMain Holdings, Inc.

Second quarter total revenue was $1.6 billion, up 6% year over year. GAAP net income was $152 million, or $1.32 per diluted share, compared with $1.40 per diluted share a year ago; C&I adjusted net income per diluted share was $1.31 versus $1.45 last year. Managed receivables ended at $26.9 billion, up $1.6 billion or 7% year over year, and originations were $4.3 billion, up 10%. Total revenue included $1.4 billion of interest income, up 6%, and $207 million of other revenue, up 6%. Provision expense was $610 million, including $506 million of net charge-offs and a $104 million reserve build. C&I net charge-offs were 8.2%, consumer loan net charge-offs were 7.8%, and the loan loss reserve ratio was 11.6%. Funding cost was 5.3% of average net receivables, and net leverage was 5.5x. Management reiterated full-year 2026 guidance for managed receivables growth of 6% to 9%, C&I net charge-offs of 7.4% to 7.9%, and an OpEx ratio of approximately 6.6%.

Doug Shulman said the quarter reflected strong execution across the core personal loan business, auto finance, and credit cards, with product innovation and conservative underwriting driving growth. He emphasized improving early delinquency trends, saying those trends support lower losses in the second half of 2026 and further improvement into 2027. His tone was confident and constructive, while also stressing discipline around credit, capital allocation, and continued investment in technology, data, and AI.

Jeannette Osterhout framed the quarter as strong across profitability, credit, expense discipline, and balance sheet management. She cited GAAP net income of $152 million, capital generation of $229 million, managed receivables of $26.9 billion, and a 7% year-over-year increase in managed receivables; she also noted a $1.1 billion secured market issuance and $1.1 billion 3-year revolving ABS priced at about 5.1%. She explained that the reserve ratio rose to 11.6% mainly because credit card receivables grew more than 50% year over year and said she expects it to move to around 11.7% in the second half, while funding costs should stay around 5.3% for the rest of 2026.

Analysts focused on the path to lower losses, the reserve-rate outlook, recoveries, and whether stronger originations could push OneMain toward the higher end of its growth guide. Management said the key credit indicators are improving and that losses should decline significantly in the second half, with 90-plus delinquency and roll rates now moving in the right direction. On reserves, Osterhout said the rising mix of higher-reserve-rate credit cards should modestly lift the overall reserve ratio; on recoveries, she said better internal recovery capabilities and selective charged-off sales are both helping, and recoveries should remain strong in the back half. On growth and capital deployment, Shulman said the company is not chasing growth, and buybacks will stay dynamic after funding growth and the dividend.