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Enova International (ENVA)
NYSE:ENVA
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Enova International (ENVA) AI Stock Analysis

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ENVA

Enova International

(NYSE:ENVA)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
$123.00
▲(0.14% Upside)
Enova International's strong financial performance and positive earnings call are the primary drivers of its high score. While technical indicators suggest potential short-term volatility, the company's strategic initiatives and robust growth outlook support a favorable long-term perspective.
Positive Factors
Revenue Growth
Consistent revenue growth demonstrates strong market demand and effective business strategies, supporting long-term expansion and profitability.
Cash Generation
Strong cash generation enhances financial stability and supports strategic investments, ensuring sustainable growth and resilience.
Leadership Transition
Planned leadership transition ensures continuity and strategic focus, positioning the company for sustained growth and operational excellence.
Negative Factors
High Leverage
Significant leverage can increase financial risk, potentially impacting cash flow and limiting flexibility in volatile economic conditions.
Consumer Revenue Growth
Slower consumer revenue growth may indicate market saturation or competitive pressures, potentially affecting long-term revenue streams.
Gross Margin Pressure
Decreasing gross margins suggest rising costs or pricing pressures, which could impact profitability and require strategic adjustments.

Enova International (ENVA) vs. SPDR S&P 500 ETF (SPY)

Enova International Business Overview & Revenue Model

Company DescriptionEnova International, Inc. is a leading financial technology company based in the United States that specializes in providing online financial services. The company operates primarily in the consumer and small business lending sectors, offering a range of products such as personal loans, lines of credit, and installment loans through its various brands. Enova leverages technology and data analytics to deliver quick and accessible financial solutions to underserved markets, focusing on responsible lending practices and customer service.
How the Company Makes MoneyEnova International generates revenue primarily through the interest and fees associated with its lending products. The company offers various types of loans, each with different terms and interest rates, which contribute to its revenue streams. Key revenue sources include personal loans, small business loans, and lines of credit. Enova also utilizes a data-driven approach to assess credit risk and tailor its offerings, allowing it to attract a diverse customer base. Additionally, partnerships with other financial service providers and technology firms enhance its service offerings and expand its reach in the market, further contributing to its earnings.

Enova International Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance with significant growth in revenue and origination volumes, particularly in the small business segment. Despite some challenges in the consumer segment with slightly elevated defaults in one product, these were quickly addressed. The leadership transition was presented positively, highlighting confidence in future growth.
Q2-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
For the fifth consecutive quarter, Enova generated more than 20% year-over-year growth in revenue, originations, and adjusted EPS. Revenue increased 22% year-over-year to $764 million.
Record Origination Growth
Second quarter originations increased 28% year-over-year to $1.8 billion, with small business originations reaching a record $1.2 billion.
Leadership Transition
CEO David Fisher announced a transition to Executive Chairman, with CFO Steve Cunningham set to take over as CEO in January 2026. Scott Cornelis will become CFO.
Strong Performance in Small Business Segment
Small business revenue increased 30% year-over-year to a record $326 million, driven by solid demand and low competition.
Efficient Marketing and Lower Cost of Funds
Adjusted EPS increased 48% year-over-year due to efficient marketing and a lower cost of funds. Marketing expenses were 19% of total revenue.
Stable Credit Quality
Consolidated net charge-off ratio declined to 8.1% from 8.6% last quarter, indicating solid credit quality across the portfolio.
Negative Updates
Slightly Elevated Consumer Defaults
Slightly elevated default metrics were observed in one consumer product early in the quarter, leading to tightened credit models and slower originations.
Consumer Revenue Growth Softer Than Expected
Consumer revenue increased 17% year-over-year, but originations were slightly softer than anticipated due to cyclical fluctuations.
Company Guidance
During Enova International's Second Quarter 2025 Earnings Conference Call, the company reported robust financial performance, continuing a trend of strong growth and stability. Key metrics highlighted include a 28% increase in originations year-over-year to $1.8 billion, contributing to a 20% rise in combined loan and finance receivables to a record $4.3 billion. Revenue grew by 22% year-over-year to $764 million, with SMB revenue reaching $326 million, up 30%, and consumer revenue hitting $428 million, a 17% increase. Notably, adjusted EPS surged 48% year-over-year, underpinned by efficient marketing and lower funding costs, while maintaining a consolidated net charge-off ratio of 8.1%, indicating solid credit quality. Looking ahead, Enova anticipates over 15% revenue growth in Q3 2025 compared to the previous year, with full-year revenue expected to grow around 20% and adjusted EPS growth projected at approximately 30%. The company's strategic focus on balanced growth, robust risk management, and market adaptability continues to drive shareholder value and operational excellence.

Enova International Financial Statement Overview

Summary
Enova International demonstrates strong financial health with robust revenue growth and effective cash generation. Despite healthy profitability margins, increased leverage poses a potential risk. The company's efficient cash flow generation supports future growth and stability.
Income Statement
82
Very Positive
Enova International has demonstrated strong revenue growth, increasing from $1,737 million in 2022 to $2,929 million TTM, showcasing a robust growth trajectory. The gross profit margin for TTM stands at 22.5%, with a net profit margin of 8.7%. While these margins indicate solid profitability, the gross profit margin has decreased compared to previous years, suggesting increased cost pressures. The EBIT margin of 22.7% and EBITDA margin of 10.4% reflect strong operational performance.
Balance Sheet
70
Positive
The company maintains a high debt-to-equity ratio of 3.23, indicating significant leverage, which poses potential risk in volatile economic conditions. However, Enova's return on equity (ROE) for TTM is a commendable 20.9%, reflecting efficient use of equity to generate profits. The equity ratio is 21.5%, suggesting a moderate proportion of assets financed by equity. Overall, while leverage is high, profitability and asset management remain strong.
Cash Flow
88
Very Positive
Enova's cash flow performance is impressive, with a significant operating cash flow to net income ratio of 6.51, indicating strong cash generation capabilities. The free cash flow has grown substantially, with a free cash flow to net income ratio of 6.33, highlighting effective cash management. The company has shown consistent free cash flow generation, supporting its capacity to fund operations and strategic initiatives.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.93B2.66B2.12B1.74B1.21B1.08B
Gross Profit1.36B1.24B1.04B1.12B947.75M597.50M
EBITDA471.13M334.52M265.51M420.86M448.44M397.55M
Net Income256.20M209.45M175.12M207.42M256.30M377.84M
Balance Sheet
Total Assets5.72B5.27B4.59B3.78B2.76B2.11B
Cash, Cash Equivalents and Short-Term Investments55.56M73.91M54.36M100.17M165.48M297.27M
Total Debt3.96B3.60B2.97B2.29B1.43B1.01B
Total Liabilities4.50B4.07B3.35B2.59B1.67B1.19B
Stockholders Equity1.23B1.20B1.24B1.19B1.09B917.35M
Cash Flow
Free Cash Flow1.62B1.50B1.12B850.37M442.19M711.38M
Operating Cash Flow1.67B1.54B1.17B894.00M471.87M740.87M
Investing Cash Flow-2.10B-1.91B-1.49B-1.67B-980.37M83.58M
Financing Cash Flow539.68M318.88M526.54M724.87M365.15M-535.97M

Enova International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price122.83
Price Trends
50DMA
113.90
Positive
100DMA
107.56
Positive
200DMA
103.77
Positive
Market Momentum
MACD
2.90
Positive
RSI
55.40
Neutral
STOCH
49.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENVA, the sentiment is Positive. The current price of 122.83 is above the 20-day moving average (MA) of 121.19, above the 50-day MA of 113.90, and above the 200-day MA of 103.77, indicating a bullish trend. The MACD of 2.90 indicates Positive momentum. The RSI at 55.40 is Neutral, neither overbought nor oversold. The STOCH value of 49.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENVA.

Enova International Risk Analysis

Enova International disclosed 56 risk factors in its most recent earnings report. Enova International reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Enova International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
1.95B5.2015.67%3.64%8.41%34.76%
79
Outperform
2.83B10.289.08%1.40%-4.15%-38.33%
78
Outperform
$3.10B13.1421.56%23.42%59.17%
70
Outperform
2.64B3.0896.42%11.93%-3.83%62.05%
67
Neutral
1.92B25.973.83%7.54%70.26%
52
Neutral
2.43B-4.49-38.81%-425.73%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ENVA
Enova International
121.93
39.35
47.65%
BFH
Bread Financial Holdings
60.06
14.01
30.42%
WU
Western Union
7.95
-3.05
-27.73%
LC
LendingClub
16.64
5.61
50.86%
FINV
FinVolution Group
7.55
1.73
29.73%
LU
Lufax Holding
3.42
0.04
1.18%

Enova International Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Enova International Amends Credit Facility Agreement
Positive
Sep 2, 2025

On August 28, 2025, Enova International, Inc. and its subsidiaries amended their secured asset-backed revolving credit facility with Bank of Montreal, increasing the total commitment from $665 million to $825 million, extending the maturity date to August 28, 2029, and reducing interest rates. This amendment is expected to enhance Enova’s financial flexibility and operational capacity, potentially strengthening its market position and offering improved terms for stakeholders.

Executive/Board ChangesBusiness Operations and Strategy
Enova International Announces Leadership Changes for 2026
Positive
Jul 24, 2025

On July 24, 2025, Enova International announced significant leadership changes effective January 1, 2026. David Fisher, the current Chairman and CEO, will transition to Executive Chairman, while Steve Cunningham, the current CFO, will become the new CEO. Scott Cornelis, currently the Treasurer and VP of Finance, will take over as CFO. These changes are part of Enova’s long-term leadership transition planning, aimed at maintaining stability and continuity while driving shareholder value and positioning the company for continued excellence.

Private Placements and Financing
Enova International Secures $150M Securitization Facility
Positive
Jul 17, 2025

On July 17, 2025, NetCredit LOC Receivables 2025, LLC, a subsidiary of Enova International, entered into a Loan and Security Agreement with Banc of California and other lenders. This agreement establishes a $150 million securitization facility with a revolving period ending in 2027 and a maturity date in 2028, potentially enhancing Enova’s liquidity and financial flexibility.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025