Yahoo Finance

• Revenue: $746 million in Q1 2025, up 22% year-over-year and 2% sequentially.

• Originations: Increased 26% year-over-year to $1.7 billion.

• Loan and Finance Receivables: Increased 20% year-over-year to $4.1 billion.

• Small Business Revenue: $305 million, up 29% year-over-year and 7% sequentially.

• Consumer Revenue: $431 million, up 18% year-over-year, down 1% sequentially.

• Adjusted EPS: Increased 56% year-over-year to $2.98 per diluted share.

• Net Charge-Off Ratio: Declined to 8.6% from 8.9% last quarter.

• Marketing Expense: 19% of total revenue, compared to 18% in Q1 2024.

• Liquidity: $1.1 billion, including $318 million in cash and marketable securities.

• Cost of Funds: Declined to 8.9%.

• Share Repurchases: 617,000 shares acquired at a cost of $63 million.

• Effective Tax Rate: 20%, down from 25% in Q1 2024.

• Warning! GuruFocus has detected 7 Warning Signs with ENVA.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enova International Inc (NYSE:ENVA) reported strong financial results for Q1 2025, with revenue increasing by 22% year-over-year to $746 million.

• The company achieved a 26% year-over-year growth in originations, reaching $1.7 billion, indicating strong demand for its products.

• Adjusted EPS increased by 56% year-over-year, driven by operating leverage, lower cost of funds, and efficient marketing.

• The company's diversified product offerings and online-only business model provide resilience and flexibility in various economic conditions.

• Enova International Inc (NYSE:ENVA) maintains a strong balance sheet with $1.1 billion in liquidity, providing financial flexibility for future growth and share repurchases.

Negative Points

• The impact of government tariffs on the US economy remains uncertain, posing potential risks to Enova International Inc (NYSE:ENVA)'s operations.

• Marketing expenses increased slightly to 19% of revenue, compared to 18% in Q1 2024, which could impact profitability if not managed effectively.

• The consumer net charge-off ratio, although improved sequentially, remains slightly higher than the first quarter of 2024 due to mix shifts in recent originations.

• The company's reliance on non-GAAP measures may obscure the true financial performance and could lead to discrepancies in financial reporting.

• Potential volatility in the stock market and share prices of financial companies, including Enova International Inc (NYSE:ENVA), could affect investor confidence and share repurchase strategies.

Q & A Highlights

Q: Are small businesses stocking up on inventory due to tariffs, affecting loan demand? A: David Fisher, CEO: There's no indication of small businesses stocking up on inventory due to tariffs. Demand follows typical seasonal patterns, and we didn't see any spike in application volumes when tariff discussions intensified.