Enova Adjusted Earnings of $4.48 a Share Beat Third-Quarter Estimates
Key Facts
Enova International said on October 22 that adjusted earnings per share reached $4.48 in the third quarter of 2026, beating analyst estimates as financing activity grew and credit metrics improved. According to Investing.com, estimates called for adjusted earnings of $4.42 a share, putting the actual result $0.06 above expectations. The company said in its earnings statement that net income for the period totaled $107 million. Diluted earnings per share under U.S. generally accepted accounting principles were $4.06, while the comparison with analyst expectations refers to adjusted earnings. Chief Executive Steve Cunningham attributed the strong results to "healthy demand and stable credit." The results thus combined an earnings beat with the operating factors identified by management during a period in which the company continued to expand lending.
Enova reported third-quarter revenue of $1.01 billion, compared with market expectations of $1 billion, according to Investing.com. The company's statement showed revenue rose 26% from the corresponding quarter of 2025. Revenue in the comparison period was $803 million, with the current quarter's total also exceeding the level in the preceding period of the current year. In the second quarter of 2026, the company reported revenue of $929 million, according to its filing with the U.S. Securities and Exchange Commission. Adjusted earnings per share in that quarter were $4.31, up 33% year on year. That growth was measured against adjusted earnings of $3.23 a share in the second quarter of 2025, placing the third-quarter results after a period that had already seen earnings rise.
In lending, combined loans and finance receivables reached a record $5.9 billion at the end of the third quarter, according to Enova's statement. New financing originated by the company during the quarter totaled $2.6 billion, alongside an improvement in credit quality metrics from the corresponding period. The combined net charge-off rate fell to 8.1% from 8.5% in the third quarter of 2025. The net revenue margin also rose to 61% from 57% a year earlier, according to the figures the company reported for the two periods. The wider margin and lower charge-off rate accompanied the record loan and finance receivables portfolio in results whose strength Cunningham linked to stable credit and demand.
The results follow the company's announcement in September that it was withdrawing regulatory applications related to its proposed acquisition of Grasshopper, which had been submitted to the Office of the Comptroller of the Currency and the Federal Reserve. Cunningham said in the statement announcing the withdrawal that Enova's future growth and success "do not depend on becoming a bank." At the time, the company maintained its forecast for revenue growth of between 20% and 25% in 2026. It also maintained its forecast for adjusted earnings per share growth of between 30% and 35% for the same year, as part of the guidance it reaffirmed in September. In the market, the announcement of the withdrawal of the regulatory applications in the middle of that month sent the stock down about 25%, according to a report published by Investing.com before the third-quarter earnings announcement. The website said the decline wiped more than $1 billion off the company's market value. Those losses were linked to the banking acquisition development in September and preceded the October earnings announcement.
On liquidity and capital allocation, Enova said total liquidity stood at $1.3 billion at the end of September 2026. That amount includes cash, marketable securities and available funding capacity, according to the earnings statement. The company repurchased $46 million of common stock during the third quarter alongside its financing activity. It entered the fourth quarter of 2026 with $252 million in available share repurchase capacity, according to the same statement. The chief financial officer had said in the September statement that the company intended to accelerate the pace of repurchases during the remainder of the year. He said in that statement: "We intend to accelerate our share repurchase activity through the remainder of 2026," keeping repurchases among the company's announced steps for the final part of the year.