OneMain Holdings, Inc. Reports Strong First Quarter 2025 Financial Results
OneMain Holdings, Inc. Reports Strong First Quarter 2025 Financial Results
On April 29, 2025, OneMain Holdings, Inc. (NYSE: OMF), a key player in providing responsible credit access to nonprime consumers, announced its impressive financial performance for the first quarter of 2025. The company recorded a pretax income of $275 million and a net income of $213 million, showcasing a noteworthy improvement compared to the prior year's figures of $204 million and $155 million, respectively. This represents an increase in earnings per diluted share to $1.78, rising from $1.29 in the same quarter last year.
OneMain’s dedication to responsible lending and effective credit solutions is evident in its results. The company also declared a quarterly dividend of $1.04 per share, which is set to be payable on May 16, 2025, to shareholders on record as of the close of business on May 9, 2025. This demonstrates OneMain's commitment to delivering value to its investors while continuing to focus on serving its customers effectively.
During the quarter, OneMain repurchased around 323,000 shares of its common stock for a total of $16 million. Doug Shulman, Chairman and CEO of OneMain, expressed confidence in the company’s position, stating that their innovative financial solutions and disciplined management approach set them up for success.
Key Financial Highlights
- - Managed Receivables: As of March 31, 2025, managed receivables reached $24.6 billion, reflecting a significant 12% increase from $22 billion the previous year. This growth indicates the robustness of OneMain’s lending operations.
- - Consumer Loan Originations: The total consumer loan originations amounted to $3 billion in the first quarter, marking a 20% growth compared to the year-ago quarter when it was $2.5 billion. This illustrates the strong demand for their lending products.
- - Total Revenue: The company reported total revenue of $1.5 billion, up 10% from $1.4 billion the previous year. Interest income contributed significantly, amounting to $1.3 billion, an 11% increase from $1.2 billion in the prior year.
Operating Expenses and Provisions
Despite the positive earnings growth, total operating expenses for the quarter were $401 million, a rise of 11% from $362 million in the previous year. This increase is attributed to the expansion of receivables and strategic investments made in the business. The provision for finance receivable losses also saw a rise, reaching $456 million, up by $25 million compared to the previous year.
OneMain has maintained a strong focus on managing card delinquencies effectively. As of March 31, 2025, the 30+ days delinquency ratio stood at 5.16%, down from 5.57% the previous year, highlighting the company’s improved credit performance.
Funding and Liquidity Overview
As of the end of March 2025, OneMain had principal debt balances of $21.8 billion, with a significant 55% being secured. The company boasted liquid assets totaling $627 million in cash and cash equivalents. Furthermore, OneMain maintains substantial liquidity resources through its undrawn facilities and unencumbered receivables, providing robust support for ongoing operations.
Looking Ahead
Management has scheduled a conference call and webcast to discuss these financial results and the company’s outlook on April 29, 2025, at 9:00 a.m. ET. Members of the public can join the discussion via a live audio webcast on OneMain’s investor relations website.
OneMain Holdings, Inc. is committed to improving the financial well-being of hardworking Americans through responsible lending practices across 47 states and a strong operational presence.
Topics Financial Services & Investing）
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