Doug Shulman: In 2024, we completed our acquisition of Foursight, bringing new capabilities to our auto lending business, continued the build out of our BrightWay credit cards, proactively managed expenses and further refined our best-in-class data science and analytics.
— Doug Shulman
03Detailed Report
OMF
Company OMF
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
OneMain Holdings delivered solid near-term execution in Q4 2024 amid a challenging macro backdrop, led by continued improvements in credit metrics and sustained originations growth across core and newer product lines. Managed receivables rose 11% year over year to $24.7 billion, supported by auto lending expansion (including the Foursight acquisition) and the BrightWay credit card build-out. Despite peak loan losses earlier in 2024, 30–89 day delinquency declined 22 bps YoY to 3.06%, with net charge-offs (C&I) of 7.9% for the quarter, 36 bps above the prior quarter but meaningfully better than in the recent past. The quarter highlighted a bifurcated timing dynamic: strong revenue growth (total revenue up 9% YoY to $1.50 billion) and a robust operating margin (operating income of $593 million, ~50% of revenue), offset by higher interest expense and a sizeable loan-loss reserve build tied to receivable growth. Management signaled a constructive outlook for 2025, emphasizing continued growth in receivables (guidance: +5% to +8%), modest yield improvements, disciplined expense management (OPEx ~6.6%), and a target for capital generation to rise beyond 2024 levels. The balance sheet remains well-positioned with substantial liquidity and a diversified funding program, though the business remains highly leverage-sensitive to credit cycle dynamics and macro volatility. The investment thesis hinges on: (1) continued stabilization and gradual improvement in credit metrics; (2) accretive growth in personal loans, auto, and card channels; (3) a resilient funding framework with meaningful liquidity headroom; and (4) a disciplined path to higher earnings and capital generation in 2025 and beyond, assuming macro conditions do not deteriorate materially.
Key Performance Indicators
Revenue
Increasing
1.19B
QoQ: -18.98% | YoY: 7.42%
Gross Profit
Decreasing
160.00M
13.48% margin
QoQ: -84.96% | YoY: -13.98%
Operating Income
Increasing
593.00M
QoQ: -45.70% | YoY: 169.55%
Net Income
Decreasing
126.00M
QoQ: -19.75% | YoY: -23.64%
EPS
Decreasing
1.06
QoQ: -19.08% | YoY: -23.19%
Revenue Trend
Margin Analysis
Financial Highlights
Financial and operating metrics (Q4 2024 against Q4 2023, unless noted):
- Revenue: $1.187 billion, up 7.4% YoY; QoQ change not provided in the data snapshot. Gross profit: $160 million; gross margin 13.48% (0.1350). YoY gross profit change: -13.98%; QoQ: -84.96% (indicative of seasonal/one-off effects in quarterly mix).
- Operating income: $593 million; operating margin 50.0%. YoY change: +169.56%; QoQ: -45.70%.
- Net income: $126 million; net margin 10.61%. YoY change: -23.64%; QoQ: -19.75%.
- EPS (diluted): $1.05; GAAP EPS $1.06; Weighted avg diluted shares ~120.1 million.
- Managed receivables: $24.7 billion, up 11% YoY; originations in Q4: $3.5 billion, up 11% YoY; full-year originations benefited from the Foursight acquisition (+5% to YoY total, +16% overall).
- Delinquency (30–89 days): 3.06% in December, down 22 bps YoY; up 5 bps QoQ.
- 30+ delinquency and 90+ delinquency trends: improving vs. prior year; back book represents ~16% of portfolio yet accounts for ~one-third of 30+ delinquencies.
- Net charge-offs (C&I, includes credit cards): 7.9% in Q4, up 36 bps QoQ; consumer loan NCOs: 7.6% in the quarter, down 7 bps YoY.
- Loan loss reserves: $2.7 billion; reserve coverage 11.5%; reserve build of $59 million in the quarter due to portfolio growth; CECL considerations unchanged amid macro uncertainty.
- Operating expenses: $422 million; up 10% YoY; full-year OpEx ratio 6.6% (a reduction vs. 7.0% in 2023).
- Capital and liquidity: Cash at end of period $1.142B; cash and short-term investments $2.065B; total liquidity remains robust; net leverage 5.6x; lines optimized to $7.4B; secured bank line converted to private placement; forward flow whole-loan sales program expanded to $900M annually through end of 2025; 6 unsecured bonds issued since June 2023 totaling $4B; 2025 funding already in motion (auto ABS five-year, ~5.5% cost of funds).
- Balance sheet risk metrics: Debt to capitalization ~0.87; debt to equity ~6.72; ROE ~3.95%; ROA ~0.49%; payout ratio ~99.2%; price-to-book ~1.96; price-to-sales ~5.26; dividend yield ~2% (management notes about a ~7% yield at current price).
- 2024 capital generation: $685 million; return on receivables 3.1%.
Notes on data sources: All metrics drawn from the company 10-K/quarterly results package and the earnings call transcript. YoY and QoQ figures reflect reported quarterly comparisons where available.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.19B
7.42%
-18.98%
Gross Profit
160.00M
-13.98%
-84.96%
Operating Income
593.00M
169.55%
-45.70%
Net Income
126.00M
-23.64%
-19.75%
EPS
1.06
-23.19%
-19.08%
Key Financial Ratios
Gross Profit Margin
Weak
13.50%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Excellent
50.00%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Good
10.60%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
0.49%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
3.95%
Return on equity suggests inefficient capital allocation
Debt to Equity
High Risk
6.72
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
12.38x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.96x
Price-to-book ratio reasonable for profitable companies
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