Enova International, Inc. ENVA reported second-quarter 2026 adjusted earnings per share (EPS) of $4.31, which increased from $3.23 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.99.
Results were aided by increased revenues and improving credit quality. However, an increase in expenses was a headwind. Given the concern, shares of the company lost 2.1% in yesterday's trading session despite better-than-expected results.
Results include certain items. After considering those, the company’s net income was $105.1 million compared with $76.1 million in the year-ago quarter.
ENVA’s Revenues & Expenses Rise Y/Y
Total quarterly revenues were $928.9 million, rising 21.6% year over year. The top line surpassed the Zacks Consensus Estimate of $904.46 million.
The total cost of revenue was $2.1 million, which increased 2.3% from the prior-year quarter.
Total operating expenses were $330.9 million, up 28.6% from the previous-year quarter. The rise was due to an increase in marketing, operations and technology and general and administrative expenses. This was partially offset by lower depreciation and amortization expenses. The company also recorded $1.5 million of transaction-related costs tied to the pending Grasshopper Bancorp deal.
Adjusted EBITDA totaled $255.8 million, up 26.3% from the year-ago quarter.
As of June 30, 2026, cash and cash equivalents were $122.2 million compared with $55.6 million as of June 30, 2025. Long-term debt was $5 billion compared with $4 billion as of June 30, 2025.
ENVA’s Segmental Performance
Consumer Loans and Finance Receivables: Net revenues from the segment were $273.5 million, up 28.5% year over year.
Small Business Loans and Finance Receivables: This segment’s net revenues totaled $284.4 million, up 28.6% year over year.
Other: Net revenues of $10.2 million were up 36.7% year over year.
Enova’s Credit Quality: Mixed Bag
The company recorded net charge-offs of $392.1 million compared with $342.9 million in the year-ago quarter.
Net charge-offs/average combined loan and finance receivables were 7.3%, down from 8.1% in the prior-year quarter.
The company’s net revenue margin was 61.2%, up from 57.8% in the prior-year quarter.
The 30-plus-day delinquency ratio was 7.5%, up from 7.1% in the year-ago quarter.
ENVA’s Share Repurchase Update
In the second quarter, the company repurchased $19 million of common stock.
Our View on ENVA
The company’s revenue growth and improving net charge-off ratio are expected to support near-term performance. Also, growth in consumer and small-business lending is likely to aid results. The planned acquisition of Grasshopper Bancorp is expected to close in the second half of 2026, subject to regulatory approvals from the OCC and the Federal Reserve. The transaction is likely to provide revenue and funding synergies and enhance balance-sheet flexibility. 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 of Enova’s Peers
Capital One Financial’s COF second-quarter 2026 adjusted earnings of $5.81 per share significantly outpaced the Zacks Consensus Estimate of $4.85. The bottom line was up from $5.48 in the prior-year quarter.
Results benefited from a rise in net interest income and non-interest income, along with a substantial decline in provisions. Loan growth and improvement in net interest margin were other positives. However, higher expenses and a sequential decline in deposits were undermining factors for COF.
Ally Financial’s ALLY second-quarter 2026 adjusted earnings of $1.21 per share lagged the Zacks Consensus Estimate of $1.25. However, the bottom line reflected a 22% jump from the year-ago quarter.
ALLY’s results were primarily hampered by higher expenses and provisions. However, growth in net financing revenues and other revenues, an increase in loan balances and an improvement in NIM offered support to some extent.
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This article originally published on Zacks Investment Research (zacks.com).