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Enova reported Q1 EPS of $3.87, beating estimates, with revenues up 17.4% year over year.
ENVA saw growth driven by improved credit quality and strong small business loan segment performance.
Expenses rose 26.6%, and debt increased, while a pending Grasshopper deal aims to boost growth.
Enova International, Inc. (ENVA - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $3.87, which increased from $2.98 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.66.
Results were aided by increased revenues and improving credit quality. However, an increase in expenses was a headwind.
Results include certain items. After considering those, the company’s net income attributable to common shareholders was $91.1 million compared with $72.9 million in the year-ago quarter.
ENVA’s Revenues & Expenses Rise Y/Y
Total quarterly revenues were $875.1 million, rising 17.4% year over year. The top line surpassed the Zacks Consensus Estimate of $851.2 million.
The total cost of revenue was $1.9 million, which increased marginally from the prior-year quarter.
Total operating expenses were $321.8 million, up 26.6% from the previous-year quarter. The rise was due to an increase in all components except depreciation and amortization. The company also recorded $2.7 million ($2 million net of tax) of acquisition-related expenses tied to the pending Grasshopper Bancorp deal.
Adjusted EBITDA totaled $227.4 million, up 19.7% from the year-ago quarter.
As of March 31, 2026, cash and cash equivalents were $96.1 million compared with $55.5 million as of March 31, 2025. Long-term debt was $4.8 billion compared with $3.7 billion as of March 31, 2025.
ENVA’s Segmental Performance
Consumer Loans and Finance Receivables: Net revenues from the segment were $445.8 million, up 3.5% year over year.
Small Business Loans and Finance Receivables: This segment’s net revenues totaled $417.5 million, up 37.1% year over year.
Other: Net revenues of $11.8 million were up 16.9% year over year.
Enova’s Credit Quality Improves
The company recorded net charge-offs (NCOs) of $390.6 million compared with $350.3 million in the year-ago quarter.
Net charge-offs/average combined loan and finance receivables were 7.6%, down from 8.6% in the prior-year quarter.
The company’s net revenue margin was 60.1%, up from 56.8% in the prior-year quarter.
The 30-plus-day delinquency ratio was 7.4%, down 3 bps year over year.
ENVA’s Share Repurchase Update
In the first quarter, the company repurchased $16 million of common stock. As of March 31, 2026, $32.2 million remained available for repurchase.
Our View on ENVA
The company’s revenue growth and improving credit metrics are expected to support near-term performance. Also, its expansion into small-business lending is likely to aid long-term growth. The pending acquisition of Grasshopper Bancorp, expected to close in the second half of 2026, is likely to enhance funding flexibility through lower-cost deposits and support growth initiatives.However, rising expenses and increased debt remain concerns.
Enova International, Inc. Price, Consensus and EPS Surprise
Performance and Earnings Expectations of Enova’s Peers
Ally Financial (ALLY - Free Report) reported first-quarter 2026 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of 93 cents. The bottom line reflected a 90% jump from the year-ago quarter.
The results of ALLY primarily benefited from a rise in net financing revenues and a sharp increase in other revenues. Also, lower expenses were a tailwind. An increase in loan and deposit balances further supported the results. However, a rise in provisions was a headwind.
Navient (NAVI - Free Report) is scheduled to announce first-quarter 2026 results on April 29.
Over the past seven days, the Zacks Consensus Estimate for NAVI’s quarterly earnings has remained unchanged at 17 cents. This implies a 39.3% decline from the prior-year quarter.
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Enova Q1 Earnings Beat Estimates on Higher Revenue, Expenses Rise Y/Y
Key Takeaways
Enova International, Inc. (ENVA - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $3.87, which increased from $2.98 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.66.
Results were aided by increased revenues and improving credit quality. However, an increase in expenses was a headwind.
Results include certain items. After considering those, the company’s net income attributable to common shareholders was $91.1 million compared with $72.9 million in the year-ago quarter.
ENVA’s Revenues & Expenses Rise Y/Y
Total quarterly revenues were $875.1 million, rising 17.4% year over year. The top line surpassed the Zacks Consensus Estimate of $851.2 million.
The total cost of revenue was $1.9 million, which increased marginally from the prior-year quarter.
Total operating expenses were $321.8 million, up 26.6% from the previous-year quarter. The rise was due to an increase in all components except depreciation and amortization. The company also recorded $2.7 million ($2 million net of tax) of acquisition-related expenses tied to the pending Grasshopper Bancorp deal.
Adjusted EBITDA totaled $227.4 million, up 19.7% from the year-ago quarter.
As of March 31, 2026, cash and cash equivalents were $96.1 million compared with $55.5 million as of March 31, 2025. Long-term debt was $4.8 billion compared with $3.7 billion as of March 31, 2025.
ENVA’s Segmental Performance
Consumer Loans and Finance Receivables: Net revenues from the segment were $445.8 million, up 3.5% year over year.
Small Business Loans and Finance Receivables: This segment’s net revenues totaled $417.5 million, up 37.1% year over year.
Other: Net revenues of $11.8 million were up 16.9% year over year.
Enova’s Credit Quality Improves
The company recorded net charge-offs (NCOs) of $390.6 million compared with $350.3 million in the year-ago quarter.
Net charge-offs/average combined loan and finance receivables were 7.6%, down from 8.6% in the prior-year quarter.
The company’s net revenue margin was 60.1%, up from 56.8% in the prior-year quarter.
The 30-plus-day delinquency ratio was 7.4%, down 3 bps year over year.
ENVA’s Share Repurchase Update
In the first quarter, the company repurchased $16 million of common stock. As of March 31, 2026, $32.2 million remained available for repurchase.
Our View on ENVA
The company’s revenue growth and improving credit metrics are expected to support near-term performance. Also, its expansion into small-business lending is likely to aid long-term growth. The pending acquisition of Grasshopper Bancorp, expected to close in the second half of 2026, is likely to enhance funding flexibility through lower-cost deposits and support growth initiatives.However, rising expenses and increased debt remain concerns.
Enova International, Inc. Price, Consensus and EPS Surprise
Enova International, Inc. price-consensus-eps-surprise-chart | Enova International, Inc. Quote
Currently, ENVA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance and Earnings Expectations of Enova’s Peers
Ally Financial (ALLY - Free Report) reported first-quarter 2026 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of 93 cents. The bottom line reflected a 90% jump from the year-ago quarter.
The results of ALLY primarily benefited from a rise in net financing revenues and a sharp increase in other revenues. Also, lower expenses were a tailwind. An increase in loan and deposit balances further supported the results. However, a rise in provisions was a headwind.
Navient (NAVI - Free Report) is scheduled to announce first-quarter 2026 results on April 29.
Over the past seven days, the Zacks Consensus Estimate for NAVI’s quarterly earnings has remained unchanged at 17 cents. This implies a 39.3% decline from the prior-year quarter.