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OneMain Q2 Earnings Decline

OneMain Holdings said second-quarter 2026 pretax income fell to $196 million from $214 million a year earlier, while net income declined to $152 million from $167 million. Diluted earnings per share came in at $1.32, down from $1.40 in the prior-year quarter.

The company’s consumer and insurance segment reported adjusted pretax income of $201 million, compared with $231 million a year ago, and adjusted net income of $151 million versus $173 million. Adjusted diluted EPS for the segment was $1.31, down from $1.45.

Despite the profit decline, OneMain’s managed receivables reached $26.9 billion at June 30, up 7% from $25.2 billion a year earlier. Consumer loan originations rose 10% to $4.3 billion from $3.9 billion.

Revenue increased to $1.6 billion from $1.5 billion, driven by higher receivables and improved portfolio yield. Interest income climbed 6% to $1.4 billion from $1.3 billion. Interest expense increased 3% to $326 million from $317 million, reflecting higher average debt used to support receivable growth.

The provision for finance receivable losses rose to $610 million from $511 million a year earlier. Operating expense increased 6% to $439 million from $415 million, as the company pointed to receivable growth and strategic investments.

Capital generation improved to $229 million from $222 million in the prior-year quarter. Management said the gain was driven by receivable growth and yield improvement, partly offset by higher net charge-offs.

Credit metrics were mixed. The consumer loans 30+ delinquency ratio was 5.17%, unchanged from a year earlier and down from 5.37% in the first quarter. The 90+ delinquency ratio was 2.15%, up from 2.12% a year earlier but down from 2.53% in the first quarter. Net charge-offs were 7.77%, up from 7.19% a year earlier, but below 8.02% in the first quarter.

At June 30, principal debt outstanding stood at $23.1 billion, with 52% secured. Cash and cash equivalents totaled $567 million, including $171 million that was unavailable for general corporate purposes. OneMain also cited $1.0 billion of undrawn unsecured revolver capacity, $6.5 billion of undrawn capacity under revolving conduit and credit card funding facilities, and $11.6 billion of unencumbered receivables.

The board declared a quarterly dividend of $1.05 per share, payable August 14 to shareholders of record August 10. During the quarter, the company repurchased about 576,000 shares for $32 million. Today the company's shares have moved 0.76% to a price of $62.715. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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