Enova International, Inc. ENVA reported first-quarter 2026 adjusted earnings per share (EPS) of $3.87, which increased from $2.98 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.66.
Results were aided by increased revenues and improving credit quality. However, an increase in expenses was a headwind.
Results include certain items. After considering those, the company’s net income attributable to common shareholders was $91.1 million compared with $72.9 million in the year-ago quarter.
ENVA’s Revenues & Expenses Rise Y/Y
Total quarterly revenues were $875.1 million, rising 17.4% year over year. The top line surpassed the Zacks Consensus Estimate of $851.2 million.
The total cost of revenue was $1.9 million, which increased marginally from the prior-year quarter.
Total operating expenses were $321.8 million, up 26.6% from the previous-year quarter. The rise was due to an increase in all components except depreciation and amortization. The company also recorded $2.7 million ($2 million net of tax) of acquisition-related expenses tied to the pending Grasshopper Bancorp deal.
Adjusted EBITDA totaled $227.4 million, up 19.7% from the year-ago quarter.
As of March 31, 2026, cash and cash equivalents were $96.1 million compared with $55.5 million as of March 31, 2025. Long-term debt was $4.8 billion compared with $3.7 billion as of March 31, 2025.
ENVA’s Segmental Performance
Consumer Loans and Finance Receivables: Net revenues from the segment were $445.8 million, up 3.5% year over year.
Small Business Loans and Finance Receivables: This segment’s net revenues totaled $417.5 million, up 37.1% year over year.
Other: Net revenues of $11.8 million were up 16.9% year over year.
Enova’s Credit Quality Improves
The company recorded net charge-offs (NCOs) of $390.6 million compared with $350.3 million in the year-ago quarter.
Net charge-offs/average combined loan and finance receivables were 7.6%, down from 8.6% in the prior-year quarter.
The company’s net revenue margin was 60.1%, up from 56.8% in the prior-year quarter.
The 30-plus-day delinquency ratio was 7.4%, down 3 bps year over year.
ENVA’s Share Repurchase Update
In the first quarter, the company repurchased $16 million of common stock. As of March 31, 2026, $32.2 million remained available for repurchase.
Our View on ENVA
The company’s revenue growth and improving credit metrics are expected to support near-term performance. Also, its expansion into small-business lending is likely to aid long-term growth. The pending acquisition of Grasshopper Bancorp, expected to close in the second half of 2026, is likely to enhance funding flexibility through lower-cost deposits and support growth initiatives.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 and Earnings Expectations of Enova’s Peers
Ally Financial ALLY reported first-quarter 2026 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of 93 cents. The bottom line reflected a 90% jump from the year-ago quarter.
The results of ALLY primarily benefited from a rise in net financing revenues and a sharp increase in other revenues. Also, lower expenses were a tailwind. An increase in loan and deposit balances further supported the results. However, a rise in provisions was a headwind.
Navient NAVI is scheduled to announce first-quarter 2026 results on April 29.
Over the past seven days, the Zacks Consensus Estimate for NAVI’s quarterly earnings has remained unchanged at 17 cents. This implies a 39.3% decline from the prior-year quarter.
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This article originally published on Zacks Investment Research (zacks.com).