OneMain Holdings Inc Earnings
OneMain Holdings, Inc. (NYSE: OMF), a prominent provider of credit to nonprime consumers, recently announced its third-quarter 2025 earnings, showcasing robust financial results. The company reported a pretax income of $263 million and a net income of $199 million, reflecting significant growth compared to the previous year. Earnings per diluted share reached $1.67, marking a 27% increase from $1.31 in the third quarter of 2024. These results highlight OneMain's effective strategies in enhancing profitability and shareholder value.
OneMain Holdings Inc Results
| Metrics | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Pretax Income ($ million) | 263 | 207 | +27.1% |
| Net Income ($ million) | 199 | 157 | +26.7% |
| Diluted EPS ($) | 1.67 | 1.31 | +27.5% |
OneMain's exceptional year-over-year growth underscores its strong operational execution and strategic focus. The increased earnings per share demonstrate the company's ability to generate enhanced returns despite a competitive market environment.
Revenue Breakdown
| Revenue Segment | Q3 2025 ($ billion) | Q3 2024 ($ billion) | YoY Change |
|---|---|---|---|
| Total Revenue | 1.6 | 1.5 | +9% |
| Interest Income | 1.4 | 1.3 | +9% |
| Consumer Loan Originations | 3.9 | 3.7 | +5% |
| Managed Receivables | 25.9 | 24.3 | +6% |
OneMain's total revenue grew by 9% year-over-year, reaching $1.6 billion. Interest income, a significant contributor to revenue, also increased by 9% to $1.4 billion. This growth was primarily driven by higher receivable volumes and improved credit quality which enhanced portfolio yield. Moreover, consumer loan originations increased by 5% to $3.9 billion, reflecting the company's proactive approach in capturing market opportunities through responsible lending practices. Managed receivables saw a 6% rise, reaching $25.9 billion, highlighting effective loan servicing and strategic expansion in auto finance through dealership networks.
Key Developments
During the quarter, OneMain announced a substantial 1% increase in its quarterly dividend, raising it to $1.05 per share payable on November 14, 2025. This decision aligns with the company's objective to provide sustained returns to shareholders. Furthermore, OneMain introduced a new $1.0 billion share repurchase program approved by the Board of Directors, aimed at boosting investor confidence and optimizing capital structure. This program is set to expire on December 31, 2028.
Comments from Company Officers
Doug Shulman, Chairman and CEO of OneMain Holdings, expressed satisfaction with the quarterly results, stating, "We delivered excellent third quarter results with encouraging momentum in revenue growth and continued positive credit trends. Our ability to both innovate and execute positions us well to drive shareholder value in the near and long term." His comments underscore the company's commitment to maintaining momentum and capitalizing on market opportunities to ensure sustained financial performance.
Dividends and Share Repurchases
OneMain continues to place importance on shareholder returns through strategic capital distribution methods. By declaring a raised quarterly dividend of $1.05 per share and introducing a new $1.0 billion share repurchase program, OneMain demonstrates a balanced approach to utilizing available capital for growth while rewarding shareholders. The repurchase of approximately 540 thousand shares for $32 million during the third quarter further highlights this commitment.
OneMain Holdings Inc Stock Forecast
Based on the analysis of current trends, OneMain Holdings appears well-poised for continued success. Positive growth in revenue, strengthened credit performance, and strategic capital deployment provide a strong foundation for optimistic stock projections. Assuming market conditions remain favorable and without significant macroeconomic disruptions, a high projection for OneMain's stock price could reach $70. However, considering potential economic headwinds and shifts in consumer borrowing trends, a more conservative low projection might be around $50. These projections reflect OneMain's robust core business model and its ongoing initiatives to innovate and drive value for shareholders.
In summary, OneMain Holdings, Inc. has delivered robust financial results for the third quarter of 2025, exemplified by substantial growth in net income and earnings per share. With a strategic focus on balanced growth, capital optimization, and innovative lending practices, OneMain is well-positioned to navigate the dynamic financial landscape and enhance shareholder returns in the coming quarters.
