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- **Revenue Surge**: Q3 originations up 22% YoY to $2 billion, with SMB originations jumping 31% YoY to $1.4 billion.
- **Profitability Boost**: Adjusted EPS rose 37% YoY to $3.36, driven by efficient marketing (18% of revenue) and operating leverage.
- **Credit Resilience**: Consolidated net charge-off ratio stable at 8.5%, with SMB credit metrics improving and consumer credit metrics rebounding post-Q2 adjustments.
- **Growth Catalysts**: Q4 consumer originations expected to accelerate, with SMB growth sustained by strong demand and credit performance.
- **Valuation Disparity**: Management emphasizes frustration with stock trading at historical PE multiples despite improved diversification and risk management.

**【Management Opening Remarks】**
- Enova released Q3 2025 earnings after market close, with Lindsay Savarese noting the transition of Steve Cunningham to CEO effective January 1, 2026, and Scott Cornelius succeeding him as CFO.
- The call emphasized forward-looking statements and non-GAAP financial measures, with reconciliations provided in the press release.

**【CEO Commentary】**
- **Revenue Growth**: Q3 originations rose 22% YoY to $2 billion, with SMB originations up 31% YoY to $1.4 billion. Total revenue increased 16% YoY to $803 million, driven by SMB revenue growth of 29% YoY.
- **Credit Performance**: Consolidated net charge-off ratio remained stable at 8.5%, with SMB credit metrics improving and consumer credit metrics returning to pre-Q2 levels after adjustments.
- **Strategic Focus**: Emphasis on diversified product offerings, machine learning models, and unit economics to maintain profitability through macroeconomic fluctuations.
- **Outlook**: Q4 consumer originations expected to accelerate, with SMB growth continuing on strong demand and credit performance.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EPS rose 37% YoY to $3.36, with a net revenue margin of 57.4%. Total operating expenses were 31% of revenue, down from 34% YoY, driven by efficient marketing (18% of revenue vs. 20% YoY).
- **Liquidity**: $1.2 billion in liquidity, including $366 million in cash and $816 million in available debt facilities. Cost of funds declined 15 bps QoQ to 8.6%.
- **Share Repurchases**: 339,000 shares repurchased in Q3 at $38 million, with $80 million remaining in Q4.
- **Valuation Concerns**: Management expressed frustration with the stock trading at historical PE multiples despite improved diversification and risk management.

**【Q&A Highlights】**
- **Capital Allocation**: CEO David Fisher indicated all options (buybacks, dividends, M&A) are on the table, with buybacks prioritized for immediate value creation.
- **Marketing Efficiency**: CFO Steve Cunningham noted Q3 marketing spend at 18% of revenue (vs. 20% guidance), but expects Q4 spend to align with 20% of revenue as consumer growth accelerates.
- **Consumer Growth**: Reacceleration of line of credit originations in Q4, with credit metrics on the adjusted product showing lowest early defaults in history.
- **Competitive Dynamics**: SMB growth driven by bank conservatism, while consumer lending remains unchallenged by prime lenders.
- **Macro Considerations**: CFO highlighted the company's ability to navigate macro uncertainty through diversified portfolios and disciplined unit economics.

Enova International, Inc. (ENVA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ENVA

ENVA fundamentals

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