OneMain Holdings Q3 Earnings Beat Estimates on Higher NII, Stock Up

Shares of OneMain Holdings OMF gained 6.2% following the release of its third-quarter 2025 results. Third-quarter 2025 adjusted earnings of $1.90 per share surpassed the Zacks Consensus Estimate of $1.58. Moreover, the bottom line increased 50.8% from the year-ago quarter.

Results were primarily driven by an increase in net interest income (NII)  and lower provisions. However, a decline in other revenues and higher total other expenses were undermining factors.

After considering non-recurring items, net income available to common shareholders (on a GAAP basis) was $199 million, up 26.7% from the prior-year quarter.

OMF’s NII Improves, Expenses Rise

NII rose 9.3% from the prior-year quarter to $1.07 billion. The increase was primarily driven by higher net finance receivables and improved yield.

Total other revenues were $163 million, down 10.4% from the prior-year quarter. The decline was due to an increase in net loss on repurchases and repayments of debt.

Total other expenses rose 9% year over year to $484 million on account of higher operating expenses and insurance policy benefits and claims.

OneMain Holdings’ Credit Quality: A Mixed Bag

The provision for finance receivable losses was $488 million, down 4.7% from the prior-year quarter. In the reported quarter, OneMain Holdings recorded net charge-offs of $427 million, down nearly 1% from the prior-year quarter.

However, the company reported 30-89-day delinquencies of $756 million, up 6.5% from the prior-year quarter. The allowance ratio of 11.51% was up from 11.46% in the prior-year quarter.

OMF’s Net Finance Receivables & Debt Increases

As of Sept. 30, 2025, net finance receivables amounted to $24.5 billion, up 2.5% from the prior-quarter end. Long-term debt increased 1.3% from the prior-quarter end to $22.3 billion.

OneMain Holdings’ Share Repurchase Update

In the reported quarter, the company repurchased approximately 540 thousand shares of common stock for $32 million. Further, the board of directors approved a new $1.0 billion share repurchase program, replacing the previous one, which will remain in effect until Dec. 31, 2028.

Our View on OMF

OneMain Holdings’ efforts to grow credit card and auto finance loans alongside strategic acquisitions are expected to support its financials. A decent balance sheet and liquidity position are other positives. However, rising expenses remains a concern.

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 third-quarter 2025 adjusted earnings of $1.15 per share surpassed the Zacks Consensus Estimate of 99 cents. Further, the bottom line reflected a significant jump from the year-ago quarter.

The company’s results primarily benefited from a rise in net finance revenues and lower provisions. Also, a marginal rally in loan balances supported the results to some extent. However, a decline in other revenues and higher non-interest expenses were the undermining factors for ALLY.

Capital One’s COF third-quarter 2025 adjusted earnings of $5.95 per share widely surpassed the Zacks Consensus Estimate of $4.20. The bottom line also compared favorably with $5.48 in the prior quarter.

COF’s results benefited from an increase in net interest income and non-interest income, and lower provisions. Also, higher loans and a stable deposit balance supported the performance. However, a rise in expenses was undermining the factor.

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This article originally published on Zacks Investment Research (zacks.com).

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