second quarter of 2026
Filed Jul 29, 2026OneMain reported second-quarter 2026 diluted EPS of $1.32, managed receivables of $26.9 billion, and declared a quarterly dividend of $1.05 per share.
Receivables, originations, revenue and capital generation increased, while GAAP and C&I adjusted earnings declined from the prior-year quarter and provision expense rose.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Pretax incomeGAAP | $196 million | – | – |
| Net incomeGAAP | $152 million | – | – |
| Earnings per diluted shareGAAP | $1.32 | – | – |
| C&I adjusted pretax incomenon-GAAP | $201 million | – | – |
| C&I adjusted net incomenon-GAAP | $151 million | – | – |
| C&I adjusted earnings per diluted sharenon-GAAP | $1.31 | – | – |
| Capital generationnon-GAAP | $229 million | – | – |
| Managed receivablesother | $26.9 billion | – | up 7% |
| Consumer loan originationsother | $4.3 billion | – | up 10% |
| Total revenueGAAP | $1.6 billion | – | up 6% |
| Interest incomeGAAP | $1.4 billion | – | up 6% |
| Interest expenseGAAP | $326 million | – | up 3% |
| Provision for finance receivable lossesGAAP | $610 million | – | – |
| Increase in allowance for finance receivable lossesGAAP | $104 million | – | – |
| Operating expenseGAAP | $439 million | – | up 6% |
| Consumer loans 30+ delinquency ratioother | 5.17 % | – | – |
| Consumer loans 90+ delinquency ratioother | 2.15 % | – | – |
| Consumer loans 30-89 delinquency ratioother | 3.02 % | – | – |
| Consumer loans net charge-offsother | 7.77 % | – | – |
Capital returns
- Declared quarterly dividend of $1.05 per share, payable on August 14, 2026, to record holders as of the close of business on August 10, 2026.
- Repurchased approximately 576 thousand shares of common stock for $32 million during the quarter.
What drove it
- Managed receivables growth and improved portfolio yield drove the increase in interest income.
- Average debt increased to support receivables growth, driving the increase in interest expense.
- Capital generation increased due to receivable growth and yield improvement, partially offset by higher net charge-offs.
- Operating expense reflected receivable growth and strategic investments in the business.
- The allowance for finance receivable losses increased $104 million driven by receivables growth.
Concerns
- Pretax income, net income and diluted EPS were below the prior-year quarter.
- C&I adjusted pretax income, adjusted net income and adjusted earnings per diluted share were below the prior-year quarter.
- Provision for finance receivable losses was $610 million, compared to $511 million in the prior-year period.
- Net charge-offs were 7.77 %, compared to 7.19 % at June 30, 2025.
- The 30-89 delinquency ratio was 3.02 %, compared to 2.84 % at March 31, 2026.
What to watch
- Consumer loan originations, which totaled $4.3 billion in the second quarter of 2026.
- Managed receivables growth, which reached $26.9 billion at June 30, 2026.
- Portfolio yield and its contribution to interest income.
- Provision for finance receivable losses, allowance growth and net charge-offs.
- The consumer-loan delinquency ratios, particularly the 30-89 delinquency ratio.
- Capital generation, which was $229 million in the second quarter of 2026.
Balance sheet and cash flow
- Principal debt balances outstanding were $23.1 billion as of June 30, 2026, 52% of which was secured.
- Cash and cash equivalents were $567 million as of June 30, 2026, including $171 million held at regulated insurance subsidiaries or for other operating activities that are unavailable for general corporate purposes.
- Undrawn committed capacity from an unsecured corporate revolver was $1.0 billion.
- Undrawn committed capacity under revolving conduit facilities and credit card variable funding note facilities was $6.5 billion.
- Unencumbered receivables were $11.6 billion.
Analysis
OneMain delivered growth in its lending franchise during the second quarter of 2026. Managed receivables were $26.9 billion at June 30, 2026, up 7% from $25.2 billion at June 30, 2025, while consumer loan originations totaled $4.3 billion, up 10% from $3.9 billion. Total revenue rose 6% to $1.6 billion and interest income rose 6% to $1.4 billion, with the company attributing both to receivables growth and improved portfolio yield.
Profitability declined from the prior-year quarter despite the revenue expansion. Pretax income was $196 million versus $214 million, net income was $152 million versus $167 million, and GAAP diluted EPS was $1.32 versus $1.40. On the segment accounting basis, C&I adjusted pretax income was $201 million versus $231 million, adjusted net income was $151 million versus $173 million, and adjusted EPS was $1.31 versus $1.45.
Credit costs remain the central offset to revenue growth. The provision for finance receivable losses was $610 million, compared to $511 million in the prior-year period, and the allowance increased $104 million due to receivables growth. Net charge-offs were 7.77 %, above 7.19 % at June 30, 2025, although below 8.02 % at March 31, 2026. The 30+ and 90+ delinquency ratios were lower than at March 31, 2026, while the 30-89 delinquency ratio increased to 3.02 % from 2.84 %.
Funding costs increased more slowly than interest income, with interest expense of $326 million, up 3% from $317 million due to higher average debt supporting receivables growth. Operating expense increased 6% to $439 million, reflecting receivable growth and strategic investments. Capital generation improved to $229 million from $222 million, driven by receivable growth and yield improvement, partially offset by higher net charge-offs.
The company paired lending growth with shareholder distributions and substantial stated liquidity resources. It repurchased approximately 576 thousand shares for $32 million and declared a quarterly dividend of $1.05 per share. At June 30, 2026, principal debt balances were $23.1 billion, 52% secured, and cash and cash equivalents were $567 million. The release did not provide forward financial guidance, leaving subsequent credit performance, provisioning, receivables growth and yield as the principal reported items to monitor.
Management, verbatim
We delivered another strong quarter with disciplined underwriting, continued innovation and strong execution across the business.
Doug Shulman, Chairman and CEO of OneMain
Growth across all of our products, improving credit performance and our industry leading balance sheet position OneMain to deliver profitable growth and attractive returns going forward.
Doug Shulman, Chairman and CEO of OneMain
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-period outlook for comparison
- Gross margin
- Operating margin
- Effective tax rate
- Operating cash flow
- Free cash flow
- Detailed GAAP revenue components other than interest income and total revenue
- Segment revenue explicitly reported as Consumer and Insurance segment revenue
- A prior-quarter comparison for total revenue, earnings, originations, interest income, interest expense, provision, operating expense, and capital generation
- Percentage changes for pretax income, net income, GAAP diluted EPS, C&I adjusted earnings measures, provision for finance receivable losses, and net charge-offs
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.