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OneMain Holdings’ (OMF - Free Report) first-quarter 2026 adjusted earnings of $1.95 per share in the consumer and insurance (C&I) segment surpassed the Zacks Consensus Estimate of $1.92. Moreover, the bottom line increased 13.4% from the year-ago quarter.
Results were primarily driven by an increase in net interest income (NII) and other revenues. However, higher total other expenses and provisions hurt the results to an extent. A sequential decline in net finance receivables was another negative for the company. Probably, because of these, shares of the company lost 3.7% following the earnings release.
After considering non-recurring items, net income (on a GAAP basis) was $226 million, up 6.1% from the prior-year quarter.
OMF’s NII Improves, Expenses Rise
NII rose 6.9% from the prior-year quarter to $1.07 billion.
Total other revenues were $197 million, up 4.8% from the prior-year quarter. The rise was driven by an increase in insurance fees and other income.
Total other expenses rose 10.6% year over year to $501 million on account of higher operating expenses and an increase in costs related to insurance policy benefits and claims.
OneMain Holdings’ Credit Quality Worsens
The provision for finance receivable losses was $465 million, up 2% from the prior-year quarter. In the reported quarter, OneMain Holdings recorded net charge-offs of $511 million, up 8% from the prior-year quarter.
The company reported 30-89-day delinquencies of $666 million, up 5.7% from the prior-year quarter. The allowance ratio of 11.53% was up from 11.52% in the prior-year quarter.
OMF’s Net Finance Receivables & Debt Declines
As of March 31, 2026, net finance receivables amounted to $24.4 billion, down 1.6% from the prior-quarter end. Long-term debt declined 1.3% from the prior-quarter end to $22.4 billion.
OneMain Holdings’ Share Repurchase Update
In the reported quarter, the company repurchased 1.9 million shares of common stock for $105 million.
Our View on OMF
Rising expenses due to higher compensation and other operating expenses are expected to continue to hamper OneMain Holdings’ profitability. Weakening asset quality remains another major near-term headwind. Nevertheless, the company’s efforts to grow credit card and auto finance loans alongside acquisitions are expected to support its financials.
OneMain Holdings, Inc. Price, Consensus and EPS Surprise
Ally Financial’s (ALLY - Free Report) first-quarter 2026 adjusted earnings of $1.11 per share surpassed the Zacks Consensus Estimate of 93 cents. The bottom line reflected a 90% jump from the year-ago quarter.
Results primarily benefited from a rise in net financing revenues and a sharp increase in other revenues. Lower expenses and an increase in loan and deposit balances were tailwinds for ALLY. However, a rise in provisions was an undermining factor.
Capital One’s (COF - Free Report) first-quarter 2026 adjusted earnings of $4.42 per share lagged the Zacks Consensus Estimate of $4.61. However, the bottom line was up from $4.06 in the prior-year quarter.
COF’s results were hurt by a jump in provisions, higher expenses and a lower loan balance. However, a rise in NII and higher non-interest income offered support.
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OneMain Holdings Q1 Earnings Beat as NII Rises Y/Y, Stock Falls 3.7%
Key Takeaways
OneMain Holdings’ (OMF - Free Report) first-quarter 2026 adjusted earnings of $1.95 per share in the consumer and insurance (C&I) segment surpassed the Zacks Consensus Estimate of $1.92. Moreover, the bottom line increased 13.4% from the year-ago quarter.
Results were primarily driven by an increase in net interest income (NII) and other revenues. However, higher total other expenses and provisions hurt the results to an extent. A sequential decline in net finance receivables was another negative for the company. Probably, because of these, shares of the company lost 3.7% following the earnings release.
After considering non-recurring items, net income (on a GAAP basis) was $226 million, up 6.1% from the prior-year quarter.
OMF’s NII Improves, Expenses Rise
NII rose 6.9% from the prior-year quarter to $1.07 billion.
Total other revenues were $197 million, up 4.8% from the prior-year quarter. The rise was driven by an increase in insurance fees and other income.
Total other expenses rose 10.6% year over year to $501 million on account of higher operating expenses and an increase in costs related to insurance policy benefits and claims.
OneMain Holdings’ Credit Quality Worsens
The provision for finance receivable losses was $465 million, up 2% from the prior-year quarter. In the reported quarter, OneMain Holdings recorded net charge-offs of $511 million, up 8% from the prior-year quarter.
The company reported 30-89-day delinquencies of $666 million, up 5.7% from the prior-year quarter. The allowance ratio of 11.53% was up from 11.52% in the prior-year quarter.
OMF’s Net Finance Receivables & Debt Declines
As of March 31, 2026, net finance receivables amounted to $24.4 billion, down 1.6% from the prior-quarter end. Long-term debt declined 1.3% from the prior-quarter end to $22.4 billion.
OneMain Holdings’ Share Repurchase Update
In the reported quarter, the company repurchased 1.9 million shares of common stock for $105 million.
Our View on OMF
Rising expenses due to higher compensation and other operating expenses are expected to continue to hamper OneMain Holdings’ profitability. Weakening asset quality remains another major near-term headwind. Nevertheless, the company’s efforts to grow credit card and auto finance loans alongside acquisitions are expected to support its financials.
OneMain Holdings, Inc. Price, Consensus and EPS Surprise
OneMain Holdings, Inc. price-consensus-eps-surprise-chart | OneMain Holdings, Inc. Quote
Currently, OneMain Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of OMF’s Peers
Ally Financial’s (ALLY - Free Report) first-quarter 2026 adjusted earnings of $1.11 per share surpassed the Zacks Consensus Estimate of 93 cents. The bottom line reflected a 90% jump from the year-ago quarter.
Results primarily benefited from a rise in net financing revenues and a sharp increase in other revenues. Lower expenses and an increase in loan and deposit balances were tailwinds for ALLY. However, a rise in provisions was an undermining factor.
Capital One’s (COF - Free Report) first-quarter 2026 adjusted earnings of $4.42 per share lagged the Zacks Consensus Estimate of $4.61. However, the bottom line was up from $4.06 in the prior-year quarter.
COF’s results were hurt by a jump in provisions, higher expenses and a lower loan balance. However, a rise in NII and higher non-interest income offered support.