Adjusted EPS increased 48% year-over-year to $3.23, driven by efficient marketing, lower cost of funds, and operating leverage.
Combined loan and finance receivables reached a record $4.3 billion, with 65% from small business and 35% from consumer portfolios.
Cost of funds declined to 8.8%, 15 basis points lower sequentially, supported by strong capital markets execution.
Credit quality remained solid with a consolidated net charge-off ratio of 8.1%, improving 50 basis points sequentially but slightly higher than the prior year due to consumer trends.
Enova reported strong second quarter 2025 results with revenue of $764 million, a 22% year-over-year increase and 2% sequential growth.
Liquidity remained strong at $1.1 billion, including $388 million in cash and marketable securities and $712 million available on debt facilities.
Operating expenses were 32% of revenue, down from 34% a year ago, with marketing at 19% of revenue and technology and operations expenses at 8%.
Originations rose 28% year-over-year to $1.8 billion, with small business originations at a record $1.2 billion and consumer originations growing 15% year-over-year.
Small business credit metrics remained stable and strong, while consumer net charge-off ratio declined sequentially to 14.5%, within historical ranges.
Capital position remains solid with CET1 at 11.3%, repurchased 522,000 shares at $16.9 average price, and tangible book value per share grew 9.5% annualized linked quarter.
Deposits declined $191 million or 2.9%, influenced by seasonal trends and shifts in municipal and noninterest-bearing balances.
Net interest income was $254.9 million, up $3.7 million linked quarter, with net interest margin increasing 4 basis points to 3.47%.
Noninterest expense was $187.6 million, slightly up linked quarter but below the expected $190-$195 million range for the remaining quarters.
Noninterest income was $69.1 million, with broad-based linked quarter growth and fee income up 7% excluding equity method adjustments.
Operating earnings for Q2 2025 were $106 million or $0.55 per share, a record for the company and a $0.03 linked quarter increase.
Provision expense declined $5.3 million linked quarter to $8.6 million, with stable credit metrics and cautious outlook.
Total loans grew $150 million or 2.5%, primarily in residential mortgage, home equity, and certain commercial categories.
Total revenue increased linked quarter driven by growth in net interest income and fee income.
Adjusted EBITDA for Q2 was $1.5 million, slightly higher than $1.4 million in Q2 2024, despite near-term profitability pressures.
Net loss for Q2 was $11 million or $0.28 per share, compared to a net loss of $5.5 million or $0.14 per share in the prior year, impacted by a $7.3 million tax expense due to a change in tax methodology.
Operating expenses increased to $181 million in Q2 from $166 million last year, driven by higher cost of services and one-time reorganization expenses.
The company remains well-capitalized with no debt and $333 million in cash and equivalents, returning $190 million to shareholders over the past three years.
Total revenue for Q2 2025 was $172 million, up 8.8% year-over-year, driven by 4% growth in brokerage revenue and a 44% increase in financing revenue.
Year-to-date revenue was $317 million, up 10.4% from $287 million last year, with brokerage commissions accounting for 84% of revenue.
Dafinchi