OneMain’s third quarter results were met with a significant positive market reaction, as revenue and adjusted earnings per share exceeded Wall Street expectations. Management attributed this performance to strong originations growth, disciplined underwriting, and ongoing improvements in credit quality. CEO Douglas Shulman emphasized the contribution of product innovation and expanded data analytics, highlighting a 5% year-over-year increase in originations and a 6% rise in receivables. Shulman stated, “Our customers are holding up well. Delinquencies are in line with expectations, losses continue to come down, and we really like the credit profile of the customers we are booking today.”
Is now the time to buy OMF? Find out in our full research report (it’s free for active Edge members).
OneMain (OMF) Q3 CY2025 Highlights:
- Revenue: $1.24 billion vs analyst estimates of $1.23 billion (7.1% year-on-year growth, in line)
- Adjusted EPS: $1.90 vs analyst estimates of $1.60 (18.5% beat)
- Adjusted Operating Income: $303 million vs analyst estimates of $755 million (24.5% margin, 59.9% miss)
- Operating Margin: 24.5%, up from 18% in the same quarter last year
- Market Capitalization: $6.99 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From OneMain’s Q3 Earnings Call
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Terry Ma (Barclays) asked about the health of the nonprime consumer and auto portfolio. CEO Douglas Shulman replied that OneMain’s customers continue to show stability, with no signs of increased stress, and that underwriting remains focused on net disposable income analysis.
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Mark DeVries (Deutsche Bank) questioned OneMain’s willingness to loosen underwriting given macro uncertainty. Shulman stated the company maintains a conservative posture, with a 30% stress overlay on loss estimates and no near-term plans to relax standards.
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Mihir Bhatia (Bank of America) sought clarification on the pace and size of share repurchases. Shulman indicated the new $1 billion authorization would be deployed flexibly, not on a linear schedule, with priority given to lending and strategic investments.
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Moshe Orenbuch (TD Cowen) inquired about the competitive and pricing environment, and the potential impact of an ILC charter. Shulman responded that pricing has held firm, competitiveness remains constructive, and an ILC charter would provide additional funding and customer opportunities but is not required for current growth.
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Vincent Caintic (BTIG) asked about the unchanged net charge-off guidance despite improving credit. CFO Jenny Osterhout explained that guidance was already tightened last quarter and will be reevaluated monthly, with digital tools and recoveries supporting continued loss improvement.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) the pace of origination growth and whether the company sustains high single-digit trends through product and channel innovation, (2) continued improvements in credit quality as newer loan vintages mature, and (3) the impact of expanded funding flexibility and the $1 billion share repurchase program on capital allocation. Execution on deepening customer engagement and scaling the credit card and auto finance businesses will also be key signposts.
OneMain currently trades at $59.35, up from $55.70 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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