This article first appeared on GuruFocus .
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Revenue:$929 million, a 22% increase year-over-year.
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Originations:$2.3 billion, a 27% increase year-over-year.
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Portfolio Growth:28% year-over-year growth to $5.5 billion.
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Adjusted EPS:Increased 33% year-over-year to $4.31 per diluted share.
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Net Charge-Off Rate:Consolidated rate of 7.3%, improved from 8.1% a year ago.
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Small Business Revenue:$439 million, a 35% increase year-over-year.
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Consumer Revenue:$477 million, an 11% increase year-over-year.
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Marketing Expenses:22% of revenue, or $204 million.
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Operating Expenses:35% of revenue, compared to 32% in the prior year.
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Liquidity:$929 million, including $478 million in cash and marketable securities.
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Cost of Funds:8.1%, down from 8.8% a year ago.
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Enova International Inc ( NYSE:ENVA ) reported strong originations growth, with consolidated originations increasing 27% year-over-year to nearly $2.3 billion.
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The company achieved an 11th consecutive quarter of consolidated year-over-year originations growth of 20% or more.
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Revenue growth accelerated, with a 22% year-over-year increase to $929 million, driven by strong portfolio growth.
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Adjusted EPS grew 33% from the second quarter of 2025, marking the eighth consecutive quarter of year-over-year adjusted EPS growth of 30% or more.
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The company is well-positioned for future growth with its planned combination with Grasshopper Bank, expected to drive adjusted EPS accretion of more than 25% once synergies are fully realized.
Negative Points
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Total operating expenses, including marketing, increased to 35% of revenue compared to 32% in the second quarter of 2025.
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Marketing expenses rose to 22% of revenue, up from 19% in the second quarter of 2025, indicating higher costs to drive originations.
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The small business net charge-off ratio remained relatively stable but showed a slight increase compared to the previous year.
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The consumer net charge-off rate, although improved, remains relatively high at 12.8%.
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The pending acquisition of Grasshopper Bank is still under regulatory review, creating uncertainty around the timing of its completion.
Q & A Highlights
Q: Can you provide more color on the acceleration in consumer volumes? It seems like SMB has been the primary growth driver, but something changed recently. A: Steven Cunningham, CEO: The acceleration in consumer volumes is largely due to increased marketing efforts and meeting market demand. We saw healthy demand in the consumer space, particularly in installment loans and line of credit products. This growth reflects the strength and resiliency of the consumer market, and our ability to capture demand consistent with our risk appetite and unit economic requirements.
Q: The net revenue margin outlook is 55% to 60%. Is there anything unusually strong about the 57% consumer net revenue margin this quarter? A: Steven Cunningham, CEO: The consumer net revenue margin was higher due to strong growth and solid credit. However, we expect it to revert to historical ranges. The higher originations growth can drive a slightly higher net revenue margin, but it should not be expected to remain at elevated levels.
Q: Can you provide any updates on the bank application review process for the Grasshopper Bank acquisition? A: Steven Cunningham, CEO: We remain in constructive dialogue with the agencies reviewing our application. We have pointed to the second half of the year for closing, and I have confidence in our application and the process. We look forward to closing later this year.
Q: What are you seeing in terms of consumer and small business credit performance? A: Steven Cunningham, CEO: On the consumer side, we are seeing some of the best credit performance in some time, with net charge-off ratios at the lower end of our typical range. On the SMB side, credit performance has been stable, with net charge-off ratios in the 4% to 5% range. We expect to continue operating within these ranges.
Q: Can you discuss the potential synergies and innovations with the Grasshopper Bank acquisition? A: Steven Cunningham, CEO: Grasshopper Bank offers innovative payment, banking, deposit, and lending capabilities, particularly on the commercial and small business side. We are excited about the potential synergies, including geographic expansion of our existing products and tapping into Grasshopper's deposit programs. We also look forward to future innovations as payments and banking converge.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
