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OneMain Holdings (OMF)
NYSE:OMF
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OneMain Holdings
(NYSE:OMF)
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Rating:68Neutral
Price Target:
$67.00
▲(17.17% Upside)
Action:DowngradedDate:02/07/26
Score is anchored by solid fundamentals and a constructive earnings-call outlook (growth, capital generation, and shareholder returns), supported by attractive valuation (low P/E and high yield). Offsetting factors are meaningful balance-sheet leverage risk and weak technical momentum (below key moving averages with negative MACD).
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
Improved Credit Metrics
Improved credit metrics reflect effective risk management, enhancing the company's ability to maintain profitability and reduce losses.
Strong Cash Flow Generation
Robust cash flow generation supports financial flexibility, enabling investment in growth opportunities and shareholder returns.
Negative Factors
High Leverage
High leverage can increase financial risk, especially in volatile markets, potentially impacting the company's long-term financial health.
Economic Uncertainty
Economic uncertainty can affect consumer demand and credit performance, posing risks to revenue and profitability.
Competitive Environment
Increased competition may pressure margins and market share, challenging the company's ability to sustain growth.
OneMain Holdings (OMF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.66B
Dividend Yield6.07%
Average Volume (3M)1.60M
Price to Earnings (P/E)8.7
Beta (1Y)1.38
Revenue Growth9.51%
EPS Growth29.38%
CountryUS
Employees9,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.59
Shares Outstanding117,152,060
10 Day Avg. Volume1,683,708
30 Day Avg. Volume1,600,944
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)2.36
Price to Sales (P/S)1.29
P/FCF Ratio2.56
Enterprise Value/Market Cap4.28
Enterprise Value/Revenue4.57
Enterprise Value/Gross Profit9.59
Enterprise Value/Ebitda22.14
Forecast
1Y Price Target
$71.18Price Target Upside24.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)7.54
Revenue Forecast (FY)$5.34B
OneMain Holdings Business Overview & Revenue Model
Company DescriptionOneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards and insurance products comprising life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It operates through a network of approximately 1,400 branch offices in 44 states in the United States, as well as through its website onemainfinancial.com. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.
How the Company Makes MoneyOneMain Holdings generates revenue primarily through the interest and fees associated with the personal loans it originates. The company's loan products typically feature fixed interest rates and flexible repayment terms, allowing for predictable monthly payments for borrowers. Key revenue streams include interest income from loans, late fees, and other ancillary fees charged to customers. Additionally, OneMain has established partnerships with various financial service providers to expand its product offerings and enhance customer service, contributing to its overall earnings. The company's focus on responsible lending practices and risk management helps maintain a stable revenue base, even in fluctuating economic conditions.
OneMain Holdings Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based financial performance in 2025—robust earnings, revenue growth, higher capital generation, successful funding execution, and meaningful product and operational initiatives—while acknowledging ongoing credit dynamics (notably a concentrated back book and elevated but improving card losses), a sizable provision and steady reserve posture, and macroeconomic uncertainty. Management provided constructive 2026 guidance (6%–9% receivables growth, C&I net charge-offs 7.4%–7.9%, OpEx ratio ~6.6%) reflecting confidence balanced by conservatism. Overall, the favorable results, strategic progress, and balance sheet strength materially outweigh the noted credit and macro risks.Q4-2025 Updates
Positive Updates
Strong Full-Year Earnings Growth
Full-year C&I earnings per share were $6.66, up 36% year over year; fourth-quarter C&I adjusted earnings per diluted share were $1.59, up 37% year over year; fourth-quarter GAAP net income was $204 million ($1.72 per diluted share), up 64% year over year.
Robust Capital Generation and Shareholder Returns
Full-year capital generation was $913 million, up 33% year over year; fourth-quarter capital generation was $225 million, up 23% year over year; total capital returned to shareholders was $639 million in 2025, up 20% from 2024; board authorized $1.0 billion share repurchase program through 2028 and repurchased $70 million in Q4.
Revenue and Receivables Growth
Full-year revenue grew 9% and fourth-quarter revenue was $1.6 billion, up 8% year over year; managed receivables finished the year at $20.3 billion, up $1.6 billion or 6% year over year; auto receivables grew to $2.8 billion and credit card receivables reached $936 million with nearly 1.1 million accounts.
Meaningful Credit Improvement
Full-year C&I net charge-offs declined to 7.7%, down 46 basis points year over year; full-year consumer loan net charge-offs declined by 63 basis points year over year; recoveries grew 16% year over year to $89 million (1.4% of receivables).
Product Innovation and Channel Expansion
Launched multiple personal loan enhancements (debt consolidation, automated income verification, paycheck-linked payments, homeowner secured product pilot), rolled out AI-powered tool for policy access, expanded mobile app lending (zero acquisition cost), and formed Ally pass-through partnership covering ~1,700 dealers to scale auto lending.
Funding Execution and Balance Sheet Strength
Raised $5.9 billion in 2025 across unsecured and secured markets, issued $1.0 billion unsecured bond in Q4 at 6.5%, reduced secured funding mix to 50% (from 59%), increased unencumbered receivables to $11.8 billion, and ended Q4 with net leverage of 5.4x (within 4x–6x target).
Operational Efficiency
Operating expenses were $443 million in Q4, up 5% year over year, while the OpEx ratio improved slightly to 6.7% from 6.8% a year ago; digital initiatives reduced marginal operating expense per credit card account by 25%.
Negative Updates
Back-Book Delinquency Concentration
The pre-August 2022 'back book' remains a headwind: it comprises just 6% of the portfolio but accounts for 17% of 30+ delinquencies, causing disproportionate contribution to overall delinquency and losses.
Credit Card Loss Levels Still Elevated
Credit card net charge-offs were 17.1% in Q4 (improved 22 basis points year over year) and remain materially higher than other products; management noted cards will pressure consolidated C&I losses as the portfolio grows despite improvement and a target long-term card NCO range of ~15%–17%.
High Provision and Reserve Neutrality
Q4 provision expense was $542 million (including $492 million net charge-offs and a $50 million reserve build); loan loss reserve ratio remained unchanged at 11.5% quarter over quarter and year over year despite receivables growth, reflecting persistent macro uncertainty.
Near-Term Credit Seasonality and QoQ Delinquency Movement
30+ delinquency increased 24 basis points quarter over quarter (though still better than pre-pandemic seasonal patterns); Q4 C&I net charge-offs were 7.9% (flat year over year), and consumer loan Q4 net charge-offs were 7.6% (only modest improvement of 7 basis points year over year).
Macroeconomic Uncertainty
Management cited a slightly weaker labor market in 2025 and persistent inflation, and incorporated a conservative underwriting stance and a credit guidance range (C&I net charge-offs 7.4%–7.9% for 2026) that assume ongoing soft labor and persistent inflation—risks that could pressure performance if conditions worsen.
Company Guidance
OneMain guided 2026 managed receivables growth of 6–9%, C&I net charge‑offs of 7.4–7.9% (C&I includes the growing card portfolio), and a full‑year OpEx ratio of roughly 6.6% (modestly better than 2025); they expect losses to be seasonally higher in H1 and lower in H2 and to drive continued capital generation growth after 2025 cap gen of $913M ($225M in Q4). Additional metrics: consumer loan yield is expected to stay near the Q4 level of 22.5%; credit card NCOs were 17.1% in Q4 with a long‑run target ~15–17% and card contribution to C&I losses expected to add ~10 bps more in 2026 versus 2025; loan loss reserves were $2.9B (11.5% coverage) and expected to remain around current levels; net leverage was 5.4x (target 4–6x); over 90% of expected 2026 average debt is at fixed rates and interest expense as a percent of receivables is expected to be similar to 2025 (~5.2–5.3%). Capital allocation: $4.20 dividend (~7% yield), $1B share repurchase authorization through 2028 (Q4 repurchases 1.2M shares for $70M), and a $2.4B forward‑flow whole‑loan program running through mid‑2028 (≈half executed in 2026).OneMain Holdings Financial Statement Overview
Summary
Solid revenue growth and strong/improving operating and free cash flow support fundamentals, but very high leverage (debt-to-equity ~6.7x) meaningfully increases risk and reduces flexibility despite the 2025 profitability rebound.Income Statement
Revenue has grown steadily from $4.9B (2020) to $6.2B (2025), with an especially strong step-up in 2025. Profitability, however, has been volatile: net margin declined materially from 26% (2021) to 17% (2022) to ~9% (2024), before recovering to ~13% (2025). Operating profitability also rebounded sharply in 2025 versus 2024, but the multi-year swings in margins point to earnings sensitivity that investors should monitor.74
Positive
Balance Sheet
The balance sheet is heavily leveraged, with debt-to-equity consistently around ~5–7x (6.67x in 2025). While equity has remained relatively stable ($3.0B–$3.4B) and returns on equity are strong (about 16%–42% historically; 23% in 2025), the high leverage increases risk and reduces financial flexibility if credit conditions or funding costs move against the company.46
Neutral
Cash Flow
Cash generation is strong and improving: operating cash flow rose from $2.2B (2020) to $3.1B (2025), and free cash flow increased in line, with a notable jump in 2025. Free cash flow also matches net income across the years shown (1.0x), supporting earnings quality. A key gap is that the dataset shows no meaningful cash-flow-to-debt coverage (reported as 0.0), which limits visibility into how comfortably cash flow services the sizable debt load.78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.24B | 5.72B | 5.30B | 5.09B | 4.97B |
| Gross Profit | 2.97B | 2.50B | 2.56B | 2.80B | 3.44B |
| EBITDA | 1.29B | 944.00M | 1.10B | 1.42B | 2.00B |
| Net Income | 783.00M | 509.00M | 641.00M | 872.00M | 1.31B |
Balance Sheet | |||||
| Total Assets | 27.39B | 25.91B | 24.29B | 22.54B | 22.08B |
| Cash, Cash Equivalents and Short-Term Investments | 1.33B | 2.00B | 2.66B | 2.23B | 2.45B |
| Total Debt | 22.69B | 21.44B | 19.81B | 18.28B | 17.75B |
| Total Liabilities | 23.99B | 22.72B | 21.11B | 19.52B | 18.99B |
| Stockholders Equity | 3.40B | 3.19B | 3.19B | 3.02B | 3.09B |
Cash Flow | |||||
| Free Cash Flow | 3.13B | 2.70B | 2.52B | 2.39B | 2.25B |
| Operating Cash Flow | 3.13B | 2.70B | 2.52B | 2.39B | 2.25B |
| Investing Cash Flow | -3.16B | -3.27B | -2.86B | -2.12B | -2.14B |
| Financing Cash Flow | 520.00M | 161.00M | 932.00M | -326.00M | -1.81B |
OneMain Holdings Technical Analysis
Negative
57.18
Price Trends
64.26
Negative
60.46
Negative
57.18
Negative
Market Momentum
-2.14
Positive
32.39
Neutral
20.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OMF, the sentiment is Negative. The current price of 57.18 is below the 20-day moving average (MA) of 60.79, below the 50-day MA of 64.26, and below the 200-day MA of 57.18, indicating a bearish trend. The MACD of -2.14 indicates Positive momentum. The RSI at 32.39 is Neutral, neither overbought nor oversold. The STOCH value of 20.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OMF.
OneMain Holdings Risk Analysis
OneMain Holdings disclosed 40 risk factors in its most recent earnings report. OneMain Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OneMain Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.21B | 6.84 | 16.37% | 1.12% | -4.32% | 58.34% | |
71 Outperform | $3.69B | 12.52 | 24.34% | ― | 21.10% | 76.12% | |
68 Neutral | $6.66B | 8.66 | 23.76% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $5.43B | 13.31 | 28.14% | ― | 10.30% | 154.64% | |
63 Neutral | $4.85B | 6.91 | 32.31% | 1.88% | 0.59% | -1.11% | |
60 Neutral | $667.96M | 17.15 | 14.57% | ― | 2.31% | -27.81% |
* Financial Sector Average
OMF
OneMain Holdings
57.18
8.01
16.30%
BFH
Bread Financial Holdings
75.73
20.91
38.14%
CACC
Credit Acceptance
495.34
5.13
1.05%
SLM
SLM
22.60
-7.47
-24.85%
WRLD
World Acceptance
130.63
-5.61
-4.12%
ENVA
Enova International
145.33
43.43
42.62%
OneMain Holdings Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
OneMain Holdings Posts Strong 2025 Results, Raises Shareholder Payouts
Positive
Feb 5, 2026
On February 5, 2026, OneMain Holdings reported a strong finish to 2025, with fourth-quarter pretax income rising to $249 million and net income to $204 million, up from $164 million and $126 million, respectively, a year earlier, driving diluted EPS to $1.72 from $1.05. For full-year 2025, net income increased to $783 million from $509 million in 2024, with EPS climbing to $6.56 from $4.24, supported by 6% growth in managed receivables to $26.3 billion, higher consumer loan originations, and an 8% increase in quarterly total revenue to $1.6 billion, while the company continued to invest in growth and manage rising credit costs and delinquencies. The Consumer and Insurance segment delivered higher adjusted net income and capital generation for both the quarter and the year, reflecting receivable growth, improved credit performance and better yields, and the company maintained substantial liquidity with significant cash, undrawn facilities and unencumbered receivables. In addition to earnings, OneMain declared a quarterly dividend of $1.05 per share on February 5, 2026, payable on February 23, 2026 to shareholders of record as of February 17, 2026, and repurchased approximately 1.2 million shares for $70 million in the fourth quarter, underscoring its focus on returning capital to shareholders while funding portfolio expansion and strategic investments.
The most recent analyst rating on (OMF) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on OneMain Holdings stock, see the OMF Stock Forecast page.
Business Operations and StrategyPrivate Placements and Financing
OneMain Holdings Issues $1 Billion Senior Unsecured Notes
Positive
Dec 18, 2025
On December 18, 2025, OneMain Finance Corporation, a direct subsidiary of OneMain Holdings, issued $1.0 billion of 6.750% senior unsecured notes due September 15, 2033, in an underwritten public offering, guaranteed on an unsecured basis by OneMain Holdings. The notes rank equally with OMFC’s other unsubordinated debt, are structurally subordinated to liabilities of its subsidiaries, pay semiannual interest starting March 15, 2026, and are callable at a make-whole premium before December 15, 2028 and at step-down redemption prices thereafter, reflecting a move to further diversify and term out the company’s funding while subjecting it to customary covenant and default provisions that shape creditor protections and capital structure flexibility.
The most recent analyst rating on (OMF) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on OneMain Holdings stock, see the OMF Stock Forecast page.
Private Placements and Financing
OneMain Holdings Announces $1 Billion Senior Notes Sale
Neutral
Dec 5, 2025
On December 4, 2025, OneMain Holdings, Inc. announced that its subsidiary, OneMain Finance Corporation, entered into an underwriting agreement for the issuance and sale of $1.0 billion in 6.750% Senior Notes due 2033. The offering, expected to close on December 18, 2025, aims to repay outstanding secured facilities and support general corporate purposes, potentially impacting the company’s financial positioning and stakeholder interests.
The most recent analyst rating on (OMF) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on OneMain Holdings stock, see the OMF Stock Forecast page.
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.