OneMain Holdings Inc (OMF) Q2 2024 Earnings Report

OneMain Holdings delivered a robust QQ2 2024 earnings performance highlighted by a 32.8% year-over-year increase in total revenue to $1.405 billion and a GAAP net income of $71 million ($0.59 per diluted share). The company benefited from the Foursight acquisition, which broadened its auto finance capabilities and contributed to a 11% year-over-year increase in managed receivables to $23.7 billion. Revenue growth was driven by pricing actions and a favorable mix shift toward higher-yielding consumer loans, partially offset by ongoing underwriting discipline amid a constructive but cautious macro environment. Management maintains full-year guidance of 6-8% revenue growth and projects managed receivables to reach approximately $24.5 billion by year-end, including about $1.3 billion from Foursight. The quarter featured meaningful leverage benefits from the Foursight integration, evidenced by an operating expense ratio of 6.4% and a capital program that included $1.9 billion of debt issuance used to refinance maturing unsecured debt, extending unsecured maturities to March 2026. The credit backdrop remained resilient with 30-89 day delinquency ex-Foursight at 2.97% (down 31 bps from year-end) and net charge-offs at 8.3% for the quarter, with recoveries of $75 million. Management stressed disciplined underwriting and selective growth pockets given macro uncertainty, while asserting the business is well-positioned to scale through its multi-product strategy (cards, auto, and personal loans) and continued data-driven growth initiatives.