Enova International Inc. Reports Strong Q1 2025 Earnings

Enova International Inc. ((ENVA)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call of Enova International Inc. showcased a predominantly positive sentiment, driven by strong revenue growth, robust origination figures, and stable credit performance. Despite potential risks from tariff impacts and higher new customer charge-offs, the company appears well-positioned to navigate these challenges, reflecting a sense of optimism about its future prospects.

Strong Revenue and Profit Growth

Enova reported a remarkable 22% year-over-year increase in total company revenue, reaching $746 million for the first quarter of 2025. This impressive growth was accompanied by a 56% rise in adjusted EPS, underscoring the company’s strong profitability and effective financial management.

Record Origination Growth

The first quarter saw a significant 26% year-over-year increase in loan originations, amounting to $1.7 billion. This record origination growth highlights Enova’s expanding market presence and its ability to attract new customers.

Robust SMB and Consumer Revenue

Enova experienced substantial growth in both its small business and consumer lending segments. Small business lending revenue surged by 29% year-over-year to $305 million, while consumer revenue increased by 18% to $431 million, reflecting strong demand across its diverse product offerings.

Stable Credit Performance

The company’s consolidated net charge-off ratio declined to 8.6%, indicating stable credit performance across its portfolio. This stability is a testament to Enova’s effective risk management strategies and its ability to maintain credit quality.

Strong Labor Market Impacts

The addition of 228,000 jobs in the U.S. in March 2025 contributed to strong consumer spending, which in turn benefited Enova’s portfolios. The robust labor market conditions have positively impacted the company’s financial performance.

Concerns Over Tariffs

Despite the positive financial results, Enova expressed concerns over the uncertainty surrounding government tariff policies and their potential impact on the U.S. economy. These tariffs pose potential risks to the company’s operations, warranting close monitoring.

Higher New Customer Charge-Offs

Enova noted higher charge-off rates among new customers, particularly in the cash net consumer business. This development could impact credit performance, highlighting the need for cautious customer acquisition strategies.

Volatility in Stock Market

Recent volatility in the stock market, including fluctuations in financial company shares such as Enova’s, has been noted as a concern. This volatility could influence investor sentiment and market dynamics.

Forward-Looking Guidance

Enova’s guidance for the remainder of the year indicates strong financial performance and positive expectations. The company anticipates flat or slightly higher sequential revenue in the second quarter, with marketing expenses around 20% of revenue and operational expenses at approximately 8.5%. Enova aims for adjusted EPS growth of at least 25% for the full year 2025, supported by a robust liquidity position of $1.1 billion.

In conclusion, Enova International Inc.’s earnings call conveyed a positive outlook, driven by strong revenue and profit growth, record origination figures, and stable credit performance. While challenges such as tariff impacts and higher new customer charge-offs exist, the company remains optimistic about its ability to navigate these hurdles and achieve its financial goals for the year.