[10-Q] OneMain Holdings, Inc. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
OneMain Holdings (NYSE: OMF) Q2-25 10-Q highlights:
- Net interest income rose 10.9% YoY to $1.02 bn as interest income (+9.8%) outpaced a modest 6.7% rise in interest expense.
- Credit performance improved: provision for finance receivable losses fell 11% to $511 m, cutting the provision/net-interest-income ratio to 50% from 62%.
- Bottom-line leverage: Net income doubled to $167 m (EPS $1.40 vs $0.59) and six-month net income reached $380 m (+69%).
- Loan growth: Net finance receivables grew 1.3% YTD to $23.9 bn, led by auto (+10.8%) and credit-card (+17%). Allowance coverage remained stable at 11.5% of gross finance receivables.
- Balance-sheet moves: Long-term debt increased $615 m to $22.1 bn; cash & equivalents +68% to $769 m, boosting liquidity.
- Capital return: Dividends of $1.04/sh declared and $21 m of buybacks executed; tangible equity climbed to $3.33 bn.
Overall, higher net interest income and a lower loss provision drove a sharp earnings rebound, partially offset by rising leverage and still-elevated charge-offs.
Principali dati del 10-Q del secondo trimestre 2025 di OneMain Holdings (NYSE: OMF):
- Reddito netto da interessi aumentato del 10,9% su base annua a 1,02 miliardi di dollari, grazie a un incremento del reddito da interessi (+9,8%) superiore al modesto aumento del 6,7% delle spese per interessi.
- Miglioramento della performance creditizia: la provision per perdite su crediti finanziari è diminuita dell'11% a 511 milioni di dollari, riducendo il rapporto provision/reddito netto da interessi dal 62% al 50%.
- Incremento dell'utile netto: l'utile netto è raddoppiato a 167 milioni di dollari (EPS 1,40 dollari contro 0,59 dollari) e l'utile netto dei sei mesi ha raggiunto 380 milioni (+69%).
- Crescita dei prestiti: i crediti finanziari netti sono cresciuti dell'1,3% da inizio anno a 23,9 miliardi di dollari, trainati da auto (+10,8%) e carte di credito (+17%). La copertura delle riserve è rimasta stabile all'11,5% dei crediti finanziari lordi.
- Movimenti nel bilancio: il debito a lungo termine è aumentato di 615 milioni a 22,1 miliardi; la liquidità e equivalenti è cresciuta del 68% a 769 milioni, migliorando la liquidità complessiva.
- Ritorno al capitale: sono stati dichiarati dividendi di 1,04 dollari per azione e sono stati eseguiti riacquisti per 21 milioni; il patrimonio tangibile è salito a 3,33 miliardi.
In sintesi, l'aumento del reddito netto da interessi e la riduzione delle perdite hanno guidato una forte ripresa degli utili, parzialmente compensata dall'aumento della leva finanziaria e da perdite ancora elevate.
Aspectos destacados del 10-Q del segundo trimestre de 2025 de OneMain Holdings (NYSE: OMF):
- Ingreso neto por intereses aumentó un 10,9% interanual hasta 1.020 millones de dólares, ya que el ingreso por intereses (+9,8%) superó un modesto aumento del 6,7% en los gastos por intereses.
- Mejora en el desempeño crediticio: la provisión para pérdidas en cuentas por cobrar financieras disminuyó un 11% hasta 511 millones, reduciendo la proporción provisión/ingreso neto por intereses del 62% al 50%.
- Incremento en resultados netos: la utilidad neta se duplicó a 167 millones de dólares (EPS de 1,40 frente a 0,59) y la utilidad neta semestral alcanzó los 380 millones (+69%).
- Crecimiento de préstamos: los saldos netos de cuentas por cobrar financieras crecieron un 1,3% en lo que va del año hasta 23.900 millones, liderados por autos (+10,8%) y tarjetas de crédito (+17%). La cobertura de provisiones se mantuvo estable en 11,5% del total bruto de cuentas por cobrar financieras.
- Movimientos en el balance: la deuda a largo plazo aumentó en 615 millones hasta 22.100 millones; el efectivo y equivalentes crecieron un 68% hasta 769 millones, mejorando la liquidez.
- Retorno de capital: se declararon dividendos de 1,04 dólares por acción y se ejecutaron recompras por 21 millones; el capital tangible aumentó a 3.330 millones.
En general, el aumento del ingreso neto por intereses y la reducción de provisiones por pérdidas impulsaron una fuerte recuperación de ganancias, parcialmente compensada por un mayor apalancamiento y cargos aún elevados.
OneMain Holdings (NYSE: OMF) 2025년 2분기 10-Q 주요 내용:
- 순이자수익이 전년 동기 대비 10.9% 증가한 10억 2천만 달러를 기록했으며, 이자수익이 9.8% 증가한 반면 이자비용은 6.7% 소폭 상승에 그쳤습니다.
- 신용 성과 개선: 금융채권 손실충당금이 11% 감소한 5억 1,100만 달러로, 충당금 대비 순이자수익 비율이 62%에서 50%로 낮아졌습니다.
- 순이익 증가: 순이익이 두 배로 늘어나 1억 6,700만 달러(EPS 1.40달러 대 0.59달러)를 기록했으며, 6개월 누적 순이익은 3억 8,000만 달러로 69% 증가했습니다.
- 대출 성장: 순금융채권은 연초 대비 1.3% 증가한 239억 달러로, 자동차 대출(+10.8%)과 신용카드(+17%)가 주도했습니다. 대손충당금 비율은 총 금융채권의 11.5%로 안정적이었습니다.
- 대차대조표 변동: 장기부채가 6억 1,500만 달러 증가해 221억 달러가 되었으며, 현금 및 현금성자산은 68% 증가한 7억 6,900만 달러로 유동성이 강화되었습니다.
- 자본 환원: 주당 1.04달러의 배당금이 선언되었고, 2,100만 달러 규모의 자사주 매입이 실행되었으며, 유형자본은 33억 3,000만 달러로 증가했습니다.
전반적으로 순이자수익 증가와 손실충당금 감소가 강한 이익 반등을 이끌었으나, 레버리지 상승과 여전히 높은 대손상각이 일부 상쇄했습니다.
Points clés du 10-Q du deuxième trimestre 2025 de OneMain Holdings (NYSE : OMF) :
- Revenu net d'intérêts en hausse de 10,9 % en glissement annuel à 1,02 milliard de dollars, les revenus d'intérêts (+9,8 %) ayant dépassé la hausse modérée de 6,7 % des charges d'intérêts.
- Amélioration de la performance crédit : la provision pour pertes sur créances financières a diminué de 11 % pour s'établir à 511 millions de dollars, réduisant le ratio provision/revenu net d'intérêts de 62 % à 50 %.
- Levier sur le résultat net : le bénéfice net a doublé pour atteindre 167 millions de dollars (BPA de 1,40 $ contre 0,59 $) et le bénéfice net semestriel a atteint 380 millions (+69 %).
- Croissance des prêts : les créances financières nettes ont augmenté de 1,3 % depuis le début de l'année pour atteindre 23,9 milliards de dollars, portées par l'automobile (+10,8 %) et les cartes de crédit (+17 %). La couverture des provisions est restée stable à 11,5 % des créances financières brutes.
- Mouvements au bilan : la dette à long terme a augmenté de 615 millions pour atteindre 22,1 milliards ; la trésorerie et équivalents ont augmenté de 68 % à 769 millions, renforçant la liquidité.
- Retour de capital : des dividendes de 1,04 $ par action ont été déclarés et 21 millions de rachats d'actions ont été exécutés ; les capitaux tangibles ont grimpé à 3,33 milliards.
Dans l'ensemble, une hausse du revenu net d'intérêts et une baisse des provisions ont entraîné un net rebond des résultats, partiellement compensé par un effet de levier accru et des pertes toujours élevées.
OneMain Holdings (NYSE: OMF) Highlights aus dem 10-Q für Q2-25:
- Nettozinsertrag stieg im Jahresvergleich um 10,9 % auf 1,02 Mrd. USD, da die Zinserträge (+9,8 %) den moderaten Anstieg der Zinsaufwendungen um 6,7 % übertrafen.
- Verbesserte Kreditqualität: Die Rückstellung für Forderungsausfälle sank um 11 % auf 511 Mio. USD, wodurch das Verhältnis von Rückstellung zu Nettozinsertrag von 62 % auf 50 % sank.
- Ergebnissteigerung: Der Nettogewinn verdoppelte sich auf 167 Mio. USD (EPS 1,40 USD gegenüber 0,59 USD), und der Nettogewinn für sechs Monate erreichte 380 Mio. USD (+69 %).
- Kreditwachstum: Die Netto-Finanzforderungen wuchsen seit Jahresbeginn um 1,3 % auf 23,9 Mrd. USD, angeführt von Auto (+10,8 %) und Kreditkarten (+17 %). Die Rückstellungsquote blieb stabil bei 11,5 % der Brutto-Finanzforderungen.
- Bilanzentwicklung: Die langfristigen Schulden stiegen um 615 Mio. USD auf 22,1 Mrd. USD; Zahlungsmittel und Äquivalente erhöhten sich um 68 % auf 769 Mio. USD, was die Liquidität stärkte.
- Kapitalrückführung: Dividenden von 1,04 USD je Aktie wurden erklärt und Aktienrückkäufe in Höhe von 21 Mio. USD durchgeführt; das materielle Eigenkapital stieg auf 3,33 Mrd. USD.
Insgesamt führten höhere Nettozinserträge und geringere Rückstellungen zu einer deutlichen Gewinnsteigerung, die teilweise durch eine steigende Verschuldung und weiterhin hohe Abschreibungen ausgeglichen wurde.
Positive
- Net income up 136% YoY to $167 m, EPS $1.40 vs $0.59.
- Provision expense down 11% despite portfolio growth, signalling improving credit quality.
- Liquidity strengthened with cash & equivalents up $311 m to $769 m.
- Book value per share increased as equity rose $135 m to $3.33 bn.
Negative
- Long-term debt grew $615 m YTD, pushing leverage higher.
- Charge-offs remain elevated at $1.02 bn YTD on personal loans.
- Allowance for losses increased $49 m to $2.75 bn, reflecting continued credit risk.
Insights
TL;DR: Earnings rebound on wider spreads and lower provisions; leverage edging up.
OneMain’s 2Q results show solid core momentum. Yield expansion and disciplined funding costs lifted NIM to 17.9%, while the delinquency mix remained contained. Management kept allowance coverage steady, signalling confidence in underwriting after last year’s Foursight acquisition integration. However, gross charge-offs of $1.02 bn YTD (4.1% of receivables) underscore continuing credit normalization. Debt-to-equity rose to 6.6×, so funding markets must stay accommodative. Still, 2Q ROE rebounded to ~20%, supporting the 11% dividend yield.
TL;DR: Credit trends better, but absolute loss levels and loan modifications warrant caution.
30-89 delinquency ratio improved YoY, and modification volume declined to 1.03% of receivables, indicating stabilizing borrower stress. Yet non-accrual loans sit at $540 m and modifications carry average 18% rate cuts, pressuring future yield. Rising unsecured receivables and an 11.5% reserve leave limited cushion if macro weakens. Investors should monitor the $438 m unused credit lines and whole-loan sale capacity ($450 m remaining) for liquidity impact.
Principali dati del 10-Q del secondo trimestre 2025 di OneMain Holdings (NYSE: OMF):
- Reddito netto da interessi aumentato del 10,9% su base annua a 1,02 miliardi di dollari, grazie a un incremento del reddito da interessi (+9,8%) superiore al modesto aumento del 6,7% delle spese per interessi.
- Miglioramento della performance creditizia: la provision per perdite su crediti finanziari è diminuita dell'11% a 511 milioni di dollari, riducendo il rapporto provision/reddito netto da interessi dal 62% al 50%.
- Incremento dell'utile netto: l'utile netto è raddoppiato a 167 milioni di dollari (EPS 1,40 dollari contro 0,59 dollari) e l'utile netto dei sei mesi ha raggiunto 380 milioni (+69%).
- Crescita dei prestiti: i crediti finanziari netti sono cresciuti dell'1,3% da inizio anno a 23,9 miliardi di dollari, trainati da auto (+10,8%) e carte di credito (+17%). La copertura delle riserve è rimasta stabile all'11,5% dei crediti finanziari lordi.
- Movimenti nel bilancio: il debito a lungo termine è aumentato di 615 milioni a 22,1 miliardi; la liquidità e equivalenti è cresciuta del 68% a 769 milioni, migliorando la liquidità complessiva.
- Ritorno al capitale: sono stati dichiarati dividendi di 1,04 dollari per azione e sono stati eseguiti riacquisti per 21 milioni; il patrimonio tangibile è salito a 3,33 miliardi.
In sintesi, l'aumento del reddito netto da interessi e la riduzione delle perdite hanno guidato una forte ripresa degli utili, parzialmente compensata dall'aumento della leva finanziaria e da perdite ancora elevate.
Aspectos destacados del 10-Q del segundo trimestre de 2025 de OneMain Holdings (NYSE: OMF):
- Ingreso neto por intereses aumentó un 10,9% interanual hasta 1.020 millones de dólares, ya que el ingreso por intereses (+9,8%) superó un modesto aumento del 6,7% en los gastos por intereses.
- Mejora en el desempeño crediticio: la provisión para pérdidas en cuentas por cobrar financieras disminuyó un 11% hasta 511 millones, reduciendo la proporción provisión/ingreso neto por intereses del 62% al 50%.
- Incremento en resultados netos: la utilidad neta se duplicó a 167 millones de dólares (EPS de 1,40 frente a 0,59) y la utilidad neta semestral alcanzó los 380 millones (+69%).
- Crecimiento de préstamos: los saldos netos de cuentas por cobrar financieras crecieron un 1,3% en lo que va del año hasta 23.900 millones, liderados por autos (+10,8%) y tarjetas de crédito (+17%). La cobertura de provisiones se mantuvo estable en 11,5% del total bruto de cuentas por cobrar financieras.
- Movimientos en el balance: la deuda a largo plazo aumentó en 615 millones hasta 22.100 millones; el efectivo y equivalentes crecieron un 68% hasta 769 millones, mejorando la liquidez.
- Retorno de capital: se declararon dividendos de 1,04 dólares por acción y se ejecutaron recompras por 21 millones; el capital tangible aumentó a 3.330 millones.
En general, el aumento del ingreso neto por intereses y la reducción de provisiones por pérdidas impulsaron una fuerte recuperación de ganancias, parcialmente compensada por un mayor apalancamiento y cargos aún elevados.
OneMain Holdings (NYSE: OMF) 2025년 2분기 10-Q 주요 내용:
- 순이자수익이 전년 동기 대비 10.9% 증가한 10억 2천만 달러를 기록했으며, 이자수익이 9.8% 증가한 반면 이자비용은 6.7% 소폭 상승에 그쳤습니다.
- 신용 성과 개선: 금융채권 손실충당금이 11% 감소한 5억 1,100만 달러로, 충당금 대비 순이자수익 비율이 62%에서 50%로 낮아졌습니다.
- 순이익 증가: 순이익이 두 배로 늘어나 1억 6,700만 달러(EPS 1.40달러 대 0.59달러)를 기록했으며, 6개월 누적 순이익은 3억 8,000만 달러로 69% 증가했습니다.
- 대출 성장: 순금융채권은 연초 대비 1.3% 증가한 239억 달러로, 자동차 대출(+10.8%)과 신용카드(+17%)가 주도했습니다. 대손충당금 비율은 총 금융채권의 11.5%로 안정적이었습니다.
- 대차대조표 변동: 장기부채가 6억 1,500만 달러 증가해 221억 달러가 되었으며, 현금 및 현금성자산은 68% 증가한 7억 6,900만 달러로 유동성이 강화되었습니다.
- 자본 환원: 주당 1.04달러의 배당금이 선언되었고, 2,100만 달러 규모의 자사주 매입이 실행되었으며, 유형자본은 33억 3,000만 달러로 증가했습니다.
전반적으로 순이자수익 증가와 손실충당금 감소가 강한 이익 반등을 이끌었으나, 레버리지 상승과 여전히 높은 대손상각이 일부 상쇄했습니다.
Points clés du 10-Q du deuxième trimestre 2025 de OneMain Holdings (NYSE : OMF) :
- Revenu net d'intérêts en hausse de 10,9 % en glissement annuel à 1,02 milliard de dollars, les revenus d'intérêts (+9,8 %) ayant dépassé la hausse modérée de 6,7 % des charges d'intérêts.
- Amélioration de la performance crédit : la provision pour pertes sur créances financières a diminué de 11 % pour s'établir à 511 millions de dollars, réduisant le ratio provision/revenu net d'intérêts de 62 % à 50 %.
- Levier sur le résultat net : le bénéfice net a doublé pour atteindre 167 millions de dollars (BPA de 1,40 $ contre 0,59 $) et le bénéfice net semestriel a atteint 380 millions (+69 %).
- Croissance des prêts : les créances financières nettes ont augmenté de 1,3 % depuis le début de l'année pour atteindre 23,9 milliards de dollars, portées par l'automobile (+10,8 %) et les cartes de crédit (+17 %). La couverture des provisions est restée stable à 11,5 % des créances financières brutes.
- Mouvements au bilan : la dette à long terme a augmenté de 615 millions pour atteindre 22,1 milliards ; la trésorerie et équivalents ont augmenté de 68 % à 769 millions, renforçant la liquidité.
- Retour de capital : des dividendes de 1,04 $ par action ont été déclarés et 21 millions de rachats d'actions ont été exécutés ; les capitaux tangibles ont grimpé à 3,33 milliards.
Dans l'ensemble, une hausse du revenu net d'intérêts et une baisse des provisions ont entraîné un net rebond des résultats, partiellement compensé par un effet de levier accru et des pertes toujours élevées.
OneMain Holdings (NYSE: OMF) Highlights aus dem 10-Q für Q2-25:
- Nettozinsertrag stieg im Jahresvergleich um 10,9 % auf 1,02 Mrd. USD, da die Zinserträge (+9,8 %) den moderaten Anstieg der Zinsaufwendungen um 6,7 % übertrafen.
- Verbesserte Kreditqualität: Die Rückstellung für Forderungsausfälle sank um 11 % auf 511 Mio. USD, wodurch das Verhältnis von Rückstellung zu Nettozinsertrag von 62 % auf 50 % sank.
- Ergebnissteigerung: Der Nettogewinn verdoppelte sich auf 167 Mio. USD (EPS 1,40 USD gegenüber 0,59 USD), und der Nettogewinn für sechs Monate erreichte 380 Mio. USD (+69 %).
- Kreditwachstum: Die Netto-Finanzforderungen wuchsen seit Jahresbeginn um 1,3 % auf 23,9 Mrd. USD, angeführt von Auto (+10,8 %) und Kreditkarten (+17 %). Die Rückstellungsquote blieb stabil bei 11,5 % der Brutto-Finanzforderungen.
- Bilanzentwicklung: Die langfristigen Schulden stiegen um 615 Mio. USD auf 22,1 Mrd. USD; Zahlungsmittel und Äquivalente erhöhten sich um 68 % auf 769 Mio. USD, was die Liquidität stärkte.
- Kapitalrückführung: Dividenden von 1,04 USD je Aktie wurden erklärt und Aktienrückkäufe in Höhe von 21 Mio. USD durchgeführt; das materielle Eigenkapital stieg auf 3,33 Mrd. USD.
Insgesamt führten höhere Nettozinserträge und geringere Rückstellungen zu einer deutlichen Gewinnsteigerung, die teilweise durch eine steigende Verschuldung und weiterhin hohe Abschreibungen ausgeglichen wurde.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
OF 1934
For the quarterly period ended June 30, 2025
OR
ACT OF 1934
For the transition period from to
Commission file number
(Exact name of registrant as specified in its charter)
| (State of incorporation) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) (Zip code)
(812 424-8031
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
| OneMain Holdings, Inc.: | ||||||||||||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
| OneMain Finance Corporation: None | ||||||||||||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
OneMain Holdings, Inc. Yes ☑ No ☐
OneMain Finance Corporation Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
OneMain Holdings, Inc. Yes ☑ No ☐
OneMain Finance Corporation Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| OneMain Holdings, Inc.: | |||||||||||||||||||||||||||||
| ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||
OneMain Finance Corporation: | |||||||||||||||||||||||||||||
| Large accelerated filer | ☐ | Accelerated filer | ☐ | ☑ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
OneMain Holdings, Inc. ☐
OneMain Finance Corporation ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
OneMain Holdings, Inc. Yes ☐ No ☑
OneMain Finance Corporation Yes ☐ No ☑
At July 21, 2025, there were 118,870,352 shares of OneMain Holdings, Inc’s common stock, $0.01 par value, outstanding.
At July 21, 2025, there were 10,160,021 shares of OneMain Finance Corporation’s common stock, $0.50 par value, outstanding.
2
TABLE OF CONTENTS
GLOSSARY | 4 | |||||||
PART I — FINANCIAL INFORMATION | ||||||||
Item 1. | Financial Statements of OneMain Holdings, Inc. and Subsidiaries (Unaudited): | |||||||
Condensed Consolidated Balance Sheets | 7 | |||||||
Condensed Consolidated Statements of Operations | 8 | |||||||
Condensed Consolidated Statements of Comprehensive Income | 9 | |||||||
Condensed Consolidated Statements of Shareholders’ Equity | 10 | |||||||
Condensed Consolidated Statements of Cash Flows | 12 | |||||||
Financial Statements of OneMain Finance Corporation and Subsidiaries (Unaudited): | ||||||||
Condensed Consolidated Balance Sheets | 13 | |||||||
Condensed Consolidated Statements of Operations | 14 | |||||||
Condensed Consolidated Statements of Comprehensive Income | 15 | |||||||
Condensed Consolidated Statements of Shareholder’s Equity | 16 | |||||||
Condensed Consolidated Statements of Cash Flows | 18 | |||||||
Notes to the Condensed Consolidated Financial Statements | 19 | |||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 44 | ||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 64 | ||||||
Item 4. | Controls and Procedures | 65 | ||||||
Controls and Procedures of OneMain Holdings, Inc. | 65 | |||||||
Controls and Procedures of OneMain Finance Corporation | 65 | |||||||
PART II — OTHER INFORMATION | ||||||||
Item 1. | Legal Proceedings | 66 | ||||||
Item 1A. | Risk Factors | 66 | ||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 66 | ||||||
Item 3. | Defaults Upon Senior Securities | 66 | ||||||
Item 4. | Mine Safety Disclosures | 66 | ||||||
Item 5. | Other Information | 66 | ||||||
Item 6. | Exhibit Index | 67 | ||||||
SIGNATURES | ||||||||
OneMain Holdings, Inc. Signature | 68 | |||||||
OneMain Finance Corporation Signature | 69 | |||||||
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GLOSSARY
Terms and abbreviations used in this report are defined below.
| Term or Abbreviation | Definition | |||||||
| 30-89 Delinquency ratio | net finance receivables 30-89 days past due as a percentage of net finance receivables | |||||||
| ABS | asset-backed securities | |||||||
| Adjusted pretax income (loss) | a non-GAAP financial measure used by management as a key performance measure of our segment | |||||||
| AETR | annual effective tax rate | |||||||
| AHL | American Health and Life Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC | |||||||
| Annual Report | the Annual Report on Form 10-K of OMH and OMFC for the fiscal year ended December 31, 2024, filed with the SEC on February 7, 2025 | |||||||
| ASC | Accounting Standards Codification | |||||||
| ASU | Accounting Standards Update | |||||||
Auto finance | financing at the point of purchase through a network of auto dealerships | |||||||
| Average daily debt balance | average of debt for each day in the period | |||||||
| Average net receivables | average of net finance receivables for each day in the period | |||||||
| Base Indenture | indenture, dated as of December 3, 2014, by and between OMFC and Wilmington Trust, National Association, as trustee, and guaranteed by OMH | |||||||
| Board | the OMH Board of Directors | |||||||
| C&I | Consumer and Insurance | |||||||
| CDO | collateralized debt obligations | |||||||
| CMBS | commercial mortgage-backed securities | |||||||
Consumer loans | consist of Personal loans and Auto finance | |||||||
| Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
| FASB | Financial Accounting Standards Board | |||||||
FCRT | Foursight Capital Automobile Receivables Trust | |||||||
Foursight | Foursight Capital LLC | |||||||
Foursight Acquisition | acquisition of Foursight Capital LLC from Jefferies Financial Group, Inc., effective April 1, 2024 | |||||||
| GAAP | generally accepted accounting principles in the United States of America | |||||||
| GAP | guaranteed asset protection | |||||||
| Gross charge-off ratio | annualized gross charge-offs as a percentage of average net receivables | |||||||
| Gross finance receivables | the unpaid principal balance of our consumer loans, net of unamortized discount or premium. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card gross finance receivables equal the unpaid principal balance, billed interest, and fees | |||||||
| Indenture | the Base Indenture, together with all subsequent Supplemental Indentures | |||||||
| Junior Subordinated Debenture | $350 million aggregate principal amount of 60-year junior subordinated debt issued by OMFC under an indenture dated January 22, 2007, by and between OMFC and Deutsche Bank Trust Company, as trustee, and guaranteed by OMH | |||||||
KBRA | Kroll Bond Rating Agency, Inc. | |||||||
| Managed receivables | consist of our C&I net finance receivables, finance receivables serviced for our whole loan sale partners and auto finance loans originated by third parties | |||||||
| Modified finance receivables | finance receivable contractually modified as a result of the borrower’s financial difficulties | |||||||
| Moody’s | Moody’s Investors Service, Inc. | |||||||
| Net charge-off ratio | annualized net charge-offs as a percentage of average net receivables | |||||||
Net finance receivables | gross finance receivables plus deferred origination costs. Consumer loans also include accrued finance charges and fees and exclude unearned fees | |||||||
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| Term or Abbreviation | Definition | |||||||
| Net interest income | interest income less interest expense | |||||||
| ODART | OneMain Direct Auto Receivables Trust | |||||||
| OMFC | OneMain Finance Corporation | |||||||
OMFCT | OneMain Financial Credit Card Trust | |||||||
| OMFIT | OneMain Financial Issuance Trust | |||||||
| OMH | OneMain Holdings, Inc. | |||||||
| OneMain | OneMain Holdings, Inc. and OneMain Finance Corporation, collectively with their subsidiaries | |||||||
| Open accounts | consist of all credit card accounts, except for charged-off accounts and closed accounts with a zero balance as of period end | |||||||
Origination volume | loans originated during the period, including those originated and sold to our whole loan sale partners that we continue to service | |||||||
| Other securities | primarily consist of equity securities and those securities for which the fair value option was elected. Other securities recognize unrealized gains and losses in investment revenues | |||||||
PCD | purchased credit deteriorated | |||||||
Personal loans | loans secured by titled collateral or unsecured and offered through our branch network, central operations, or digital platform | |||||||
| Pretax capital generation | a non-GAAP financial measure defined as C&I adjusted pretax income (loss) excluding the change in C&I allowance for finance receivable losses in the period while still considering the C&I net charge-offs incurred during the period | |||||||
Private Secured Term Funding | $350 million borrowing capacity issued on April 25, 2022 | |||||||
| Purchase volume | consists of credit card purchase transactions in the period, including cash advances, net of returns | |||||||
| Recovery ratio | annualized recoveries on net charge-offs as a percentage of average net receivables | |||||||
| RMBS | residential mortgage-backed securities | |||||||
S&P | S&P Global Ratings | |||||||
| SEC | U.S. Securities and Exchange Commission | |||||||
| Securities Act | Securities Act of 1933, as amended | |||||||
| Segment Accounting Basis | a basis used to report the operating results of our C&I segment and our Other components, which reflects our allocation methodologies for certain costs and excludes the impact of applying purchase accounting | |||||||
| SpringCastle Portfolio | loans the Company previously owned and now services on behalf of a third party | |||||||
| Supplemental Indentures | collectively, the following supplements to the Base Indenture: Sixth Supplemental Indenture, dated as of May 11, 2018; Eighth Supplemental Indenture, dated as of May 9, 2019; Ninth Supplemental Indenture, dated as of November 7, 2019; Eleventh Supplemental Indenture, dated as of December 17, 2020; Twelfth Supplemental Indenture, dated as of June 22, 2021; Thirteenth Supplemental Indenture, dated as of August 11, 2021; Fourteenth Supplemental Indenture, dated June 20, 2023; Fifteenth Supplemental Indenture, dated June 22, 2023; Sixteenth Supplemental Indenture, dated as of December 13, 2023; Seventeenth Supplemental Indenture, dated May 22, 2024; Eighteenth Supplemental Indenture, dated August 19, 2024; Nineteenth Supplemental Indenture, dated November 4, 2024; Twentieth Supplemental Indenture, dated March 13, 2025; and Twenty-First Supplemental Indenture, dated June 11, 2025. | |||||||
| Triton | Triton Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC | |||||||
| Unearned finance charges | the amount of interest that is capitalized at time of origination on a precompute loan that will be earned over the remaining contractual life of the loan | |||||||
Unencumbered receivables | unencumbered unpaid principal balance of our consumer loans and credit cards. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card receivables include those in the trust that exceed the minimum for securing advances under credit card variable funding note facilities, which the Company can remove from the trust under the terms of such facilities, and exclude billed interest, fees, and closed accounts with balances | |||||||
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| Term or Abbreviation | Definition | |||||||
| Unsecured corporate revolver | unsecured revolver with a maximum borrowing capacity of $1.1 billion, payable and due on September 6, 2029 | |||||||
| Unsecured Notes | the notes, on a senior unsecured basis, issued by OMFC and guaranteed by OMH | |||||||
| VIEs | variable interest entities | |||||||
VFN | variable funding note | |||||||
| Weighted average interest rate | annualized interest expense as a percentage of average debt | |||||||
| XBRL | eXtensible Business Reporting Language | |||||||
| Yield | annualized finance charges as a percentage of average net receivables | |||||||
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PART I - FINANCIAL INFORMATION
| Item 1. Financial Statements. | ||
ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
| (dollars in millions, except par value amount) | June 30, 2025 | December 31, 2024 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $ | ||||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $ | ||||||||||||||
| Unearned insurance premium and claim reserves | ( | ( | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $ | ( | ( | ||||||||||||
| Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | ||||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $ | ||||||||||||||
| Goodwill | ||||||||||||||
| Other intangible assets | ||||||||||||||
| Other assets | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $ | $ | $ | ||||||||||||
| Insurance claims and policyholder liabilities | ||||||||||||||
| Deferred and accrued taxes | ||||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $ | ||||||||||||||
| Total liabilities | ||||||||||||||
Contingencies (Note 12) | ||||||||||||||
| Shareholders’ equity: | ||||||||||||||
Common stock, par value $ | ||||||||||||||
| Additional paid-in capital | ||||||||||||||
| Accumulated other comprehensive loss | ( | ( | ||||||||||||
| Retained earnings | ||||||||||||||
Treasury stock, at cost; | ( | ( | ||||||||||||
| Total shareholders’ equity | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | $ | ||||||||||||
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||
| Net interest income | ||||||||||||||||||||||||||||||||
| Provision for finance receivable losses | ||||||||||||||||||||||||||||||||
| Net interest income after provision for finance receivable losses | ||||||||||||||||||||||||||||||||
| Other revenues: | ||||||||||||||||||||||||||||||||
| Insurance | ||||||||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||||||
| Gain on sales of finance receivables | ||||||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Total other revenues | ||||||||||||||||||||||||||||||||
| Other expenses: | ||||||||||||||||||||||||||||||||
| Salaries and benefits | ||||||||||||||||||||||||||||||||
| Other operating expenses | ||||||||||||||||||||||||||||||||
| Insurance policy benefits and claims | ||||||||||||||||||||||||||||||||
| Total other expenses | ||||||||||||||||||||||||||||||||
| Income before income taxes | ||||||||||||||||||||||||||||||||
| Income taxes | ||||||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Share Data: | ||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||||||||||||||||||
| Basic | ||||||||||||||||||||||||||||||||
| Diluted | ||||||||||||||||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||||||||
| Basic | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||||||||||||||||||
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | ( | ( | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||||||||
| Changes in discount rate for insurance claims and policyholder liabilities | ( | |||||||||||||||||||||||||||||||
| Other | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Income tax effect: | ||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | ( | ( | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||||||||
| Changes in discount rate for insurance claims and policyholder liabilities | ( | |||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ||||||||||||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)
| OneMain Holdings, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Balance, April 1, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
| Common stock repurchased | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
| Treasury stock issued | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Balance, April 1, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
| Treasury stock issued | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
* Cash dividends declared were $ | ||||||||||||||||||||||||||||||||||||||
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ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Shareholders’ Equity (Continued) | ||||||||||||||||||||||||||||||||||||||
| OneMain Holdings, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
| Common stock repurchased | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
| Treasury stock issued | — | — | — | — | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
| Treasury stock issued | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | — | — | — | ||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Cash dividends * | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
* Cash dividends declared were $ | ||||||||||||||||||||||||||||||||||||||
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Six Months Ended June 30, | ||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | ||||||||||||||||||
| Cash flows from operating activities | ||||||||||||||||||||
| Net income | $ | $ | ||||||||||||||||||
| Reconciling adjustments: | ||||||||||||||||||||
| Provision for finance receivable losses | ||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||
Deferred income tax benefit | ( | ( | ||||||||||||||||||
Net loss on repurchases and repayments of debt | ||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | ||||||||||||||||||||
| Gain on sales of finance receivables | ( | ( | ||||||||||||||||||
| Other | ( | ( | ||||||||||||||||||
| Cash flows due to changes in other assets and other liabilities | ( | ( | ||||||||||||||||||
| Net cash provided by operating activities | ||||||||||||||||||||
| Cash flows from investing activities | ||||||||||||||||||||
| Net principal originations and purchases of finance receivables | ( | ( | ||||||||||||||||||
| Proceeds from sales of finance receivables | ||||||||||||||||||||
Foursight Acquisition, net of cash acquired | ( | |||||||||||||||||||
| Available-for-sale securities purchased | ( | ( | ||||||||||||||||||
| Available-for-sale securities called, sold, and matured | ||||||||||||||||||||
| Other securities purchased | ( | ( | ||||||||||||||||||
| Other securities called, sold, and matured | ||||||||||||||||||||
| Other, net | ( | ( | ||||||||||||||||||
| Net cash used for investing activities | ( | ( | ||||||||||||||||||
| Cash flows from financing activities | ||||||||||||||||||||
| Proceeds from issuance and borrowings of long-term debt, net of issuance costs | ||||||||||||||||||||
| Repayments and repurchases of long-term debt | ( | ( | ||||||||||||||||||
| Cash dividends | ( | ( | ||||||||||||||||||
| Common stock repurchased | ( | ( | ||||||||||||||||||
| Treasury stock issued | ||||||||||||||||||||
| Withholding tax on share-based compensation | ( | ( | ||||||||||||||||||
Net cash provided by (used for) financing activities | ( | |||||||||||||||||||
| Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | ( | |||||||||||||||||||
| Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | ||||||||||||||||||||
| Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | $ | ||||||||||||||||||
| Supplemental cash flow information | ||||||||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||||||||
| Restricted cash and restricted cash equivalents | ||||||||||||||||||||
| Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | $ | ||||||||||||||||||
Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our secured transactions.
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
| (dollars in millions, except par value amount) | June 30, 2025 | December 31, 2024 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $ | ||||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $ | ||||||||||||||
| Unearned insurance premium and claim reserves | ( | ( | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $ | ( | ( | ||||||||||||
| Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | ||||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $ | ||||||||||||||
| Goodwill | ||||||||||||||
| Other intangible assets | ||||||||||||||
| Other assets | ||||||||||||||
| Total assets | $ | $ | ||||||||||||
| Liabilities and Shareholder’s Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $ | $ | $ | ||||||||||||
| Insurance claims and policyholder liabilities | ||||||||||||||
| Deferred and accrued taxes | ||||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $ | ||||||||||||||
| Total liabilities | ||||||||||||||
Contingencies (Note 12) | ||||||||||||||
| Shareholder’s equity: | ||||||||||||||
Common stock, par value $ and outstanding at June 30, 2025 and December 31, 2024 | ||||||||||||||
| Additional paid-in capital | ||||||||||||||
| Accumulated other comprehensive loss | ( | ( | ||||||||||||
| Retained earnings | ||||||||||||||
| Total shareholder’s equity | ||||||||||||||
| Total liabilities and shareholder’s equity | $ | $ | ||||||||||||
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||||||||
| Net interest income | ||||||||||||||||||||||||||||||||
| Provision for finance receivable losses | ||||||||||||||||||||||||||||||||
| Net interest income after provision for finance receivable losses | ||||||||||||||||||||||||||||||||
| Other revenues: | ||||||||||||||||||||||||||||||||
| Insurance | ||||||||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||||||
| Gain on sales of finance receivables | ||||||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Total other revenues | ||||||||||||||||||||||||||||||||
| Other expenses: | ||||||||||||||||||||||||||||||||
| Salaries and benefits | ||||||||||||||||||||||||||||||||
| Other operating expenses | ||||||||||||||||||||||||||||||||
| Insurance policy benefits and claims | ||||||||||||||||||||||||||||||||
| Total other expenses | ||||||||||||||||||||||||||||||||
| Income before income taxes | ||||||||||||||||||||||||||||||||
| Income taxes | ||||||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | ( | ( | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||||||||
| Changes in discount rate for insurance claims and policyholder liabilities | ( | |||||||||||||||||||||||||||||||
| Other | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Income tax effect: | ||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | ( | ( | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | ( | ( | ||||||||||||||||||||||||||||||
| Changes in discount rate for insurance claims and policyholder liabilities | ( | |||||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | ||||||||||||||||||||||||||||||
| Comprehensive income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Shareholder’s Equity (Unaudited)
| OneMain Finance Corporation Shareholder's Equity | ||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholder’s Equity | |||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Balance, April 1, 2025 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||
| Cash dividends | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||
| Net income | — | — | — | |||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Balance, April 1, 2024 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||
| Cash dividends | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||
| Net income | — | — | — | |||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
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| ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Shareholder’s Equity (Unaudited) | ||||||||||||||||||||||||||||||||||||||
| OneMain Finance Corporation Shareholder’s Equity | ||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2025 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||
| Withholding tax on share-based compensation | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||||||||||||||
| Cash dividends | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||
| Net income | — | — | — | |||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2024 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | — | — | — | |||||||||||||||||||||||||||||||||||
| Withholding tax on shared-based compensation | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||
| Cash dividends | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||
| Net income | — | — | — | |||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
| Six Months Ended June 30, | ||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | ||||||||||||||||||
| Cash flows from operating activities | ||||||||||||||||||||
| Net income | $ | $ | ||||||||||||||||||
| Reconciling adjustments: | ||||||||||||||||||||
| Provision for finance receivable losses | ||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||
Deferred income tax benefit | ( | ( | ||||||||||||||||||
Net loss on repurchases and repayments of debt | ||||||||||||||||||||
| Share-based compensation expense, net of forfeitures | ||||||||||||||||||||
| Gain on sales of finance receivables | ( | ( | ||||||||||||||||||
| Other | ( | ( | ||||||||||||||||||
| Cash flows due to changes in other assets and other liabilities | ( | ( | ||||||||||||||||||
| Net cash provided by operating activities | ||||||||||||||||||||
| Cash flows from investing activities | ||||||||||||||||||||
| Net principal originations and purchases of finance receivables | ( | ( | ||||||||||||||||||
| Proceeds from sales of finance receivables | ||||||||||||||||||||
Foursight Acquisition, net of cash acquired | ( | |||||||||||||||||||
| Available-for-sale securities purchased | ( | ( | ||||||||||||||||||
| Available-for-sale securities called, sold, and matured | ||||||||||||||||||||
| Other securities purchased | ( | ( | ||||||||||||||||||
| Other securities called, sold, and matured | ||||||||||||||||||||
| Other, net | ( | ( | ||||||||||||||||||
| Net cash used for investing activities | ( | ( | ||||||||||||||||||
| Cash flows from financing activities | ||||||||||||||||||||
| Proceeds from issuance and borrowings of long-term debt, net of issuance costs | ||||||||||||||||||||
| Repayments and repurchases of long-term debt | ( | ( | ||||||||||||||||||
| Cash dividends | ( | ( | ||||||||||||||||||
| Withholding tax on share-based compensation | ( | ( | ||||||||||||||||||
Net cash provided by (used for) financing activities | ( | |||||||||||||||||||
| Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | ( | |||||||||||||||||||
| Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | ||||||||||||||||||||
| Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | $ | ||||||||||||||||||
| Supplemental cash flow information | ||||||||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||||||||
| Restricted cash and restricted cash equivalents | ||||||||||||||||||||
| Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | $ | ||||||||||||||||||
Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our secured transactions.
See Notes to the Condensed Consolidated Financial Statements (Unaudited).
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ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
June 30, 2025
| 1. Business and Basis of Presentation | ||
OneMain Holdings, Inc. (“OMH”), and its wholly owned direct subsidiary, OneMain Finance Corporation (“OMFC”) are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses.
The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this filing relates to both OMH and OMFC, except where otherwise indicated. OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “OneMain,” “we,” “us,” or “our.”
BASIS OF PRESENTATION
The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K of OMH and OMFC for the fiscal year ended December 31, 2024, filed with the SEC on February 7, 2025 (“Annual Report”). We follow the same significant accounting policies for our interim reporting. To conform to the 2025 presentation, we reclassified certain items in prior periods of our condensed consolidated financial statements.
2. Recent Accounting Pronouncements | ||
ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED
Income Taxes
In December of 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated information in the rate reconciliation and income taxes paid disclosures. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis, with retrospective application allowed. While the standard will not impact our consolidated financial results, we are currently evaluating the impact of the expanded income tax disclosures.
Expense Disaggregation Disclosures
In December of 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires disclosure of certain costs and expenses in the notes to the financial statements. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2026, and will be effective for interim periods with fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments should be applied on a prospective basis, with retrospective application allowed. While the standard will not impact our consolidated financial results, we are currently evaluating the impact of the expanded disclosures.
We do not believe that any other accounting pronouncements issued, but not yet effective, are applicable or would have a material impact on our consolidated financial statements or disclosures, if adopted.
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3. Finance Receivables | ||
Our finance receivables consist of consumer loans and credit cards. Consumer loans include personal loans and auto finance. Personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years , and are secured by automobiles, other titled collateral, or are unsecured. Auto finance includes automobile retail installment contracts originated at the point of purchase through our dealership network. Auto finance loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years , and are secured by automobiles. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured.
Components of our net finance receivables were as follows:
Consumer Loans | ||||||||||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Total Consumer Loans | Credit Cards | Total | |||||||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||||||||
| Gross finance receivables * | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Unearned fees | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Accrued finance charges and fees | ||||||||||||||||||||||||||||||||
| Deferred origination costs | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| Gross finance receivables * | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Unearned fees | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Accrued finance charges and fees | ||||||||||||||||||||||||||||||||
| Deferred origination costs | ||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
WHOLE LOAN SALE TRANSACTIONS
We have whole loan sale flow agreements with third parties, with current terms of less than one year , in which we agreed to sell a remaining total of $450 million gross receivables of newly originated unsecured personal loans along with any associated accrued interest. Loans sold are derecognized from our balance sheet at the time of sale. We service the loans sold and are entitled to a servicing fee and other fees commensurate with the services performed as part of the agreements. The gain on sales and servicing fees are recorded in Other revenues in our condensed consolidated statements of operations.
We sold $260 million and $514 million of gross finance receivables during the three and six months ended June 30, 2025, respectively, and $193 million and $303 million of gross finance receivables during the three and six months ended June 30, 2024, respectively. The gain on the sales were $17 million and $33 million during the three and six months ended June 30, 2025, respectively, and $6 million and $12 million during the three and six months ended June 30, 2024, respectively.
CREDIT QUALITY INDICATOR
We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio.
When consumer loans are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. We consider our consumer loans to be nonperforming at 90 days or more contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. All consumer loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses.
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The following table below is a summary of finance charges on our consumer loans:
| Three Months Ended June 30, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||
Net accrued finance charges reversed | $ | $ | $ | $ | ||||||||||||||||||||||
Finance charges recognized from the contractual interest portion of payments received on nonaccrual loans | ||||||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||
Net accrued finance charges reversed | $ | $ | $ | $ | ||||||||||||||||||||||
Finance charges recognized from the contractual interest portion of payments received on nonaccrual loans | ||||||||||||||||||||||||||
We accrue finance charges and fees on credit cards until charge-off at 180 days contractually past due, at which point we reverse finance charges and fees previously accrued.
Net accrued finance charges and fees reversed on credit cards were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (dollars in millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Net accrued finance charges and fees reversed | $ | $ | $ | $ | ||||||||||||||||||||||
The following tables below are a summary of our personal loans by the year of origination and number of days delinquent:
| (dollars in millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | |||||||||||||||||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Performing | ||||||||||||||||||||||||||||||||||||||||||||
| Current | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| 30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
| 60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
| Total performing | ||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
| 90+ days past due | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Gross charge-offs * | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
* Represents gross charge-offs for the six months ended June 30, 2025.
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| (dollars in millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Performing | ||||||||||||||||||||||||||||||||||||||||||||
| Current | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| 30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
| 60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
| Total performing | ||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
| 90+ days past due | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Gross charge-offs * | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
* Represents gross charge-offs for the six months ended June 30, 2024.
The following tables below are a summary of our auto finance loans by the year of origination and number of days delinquent:
| (dollars in millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | |||||||||||||||||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Performing | ||||||||||||||||||||||||||||||||||||||||||||
| Current | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| 30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
| 60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
| Total performing | ||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
| 90+ days past due | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Gross charge-offs * | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
* Represents gross charge-offs for the six months ended June 30, 2025.
| (dollars in millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Performing | ||||||||||||||||||||||||||||||||||||||||||||
| Current | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
| 30-59 days past due | ||||||||||||||||||||||||||||||||||||||||||||
| 60-89 days past due | ||||||||||||||||||||||||||||||||||||||||||||
| Total performing | ||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||
| 90+ days past due | ||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Gross charge-offs * | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
* Represents gross charge-offs for the six months ended June 30, 2024.
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The following is a summary of credit cards by number of days delinquent:
| (dollars in millions) | June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||||
Current | $ | $ | ||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||
90+ days past due | ||||||||||||||||||||||||||
Total | $ | $ | ||||||||||||||||||||||||
There were no credit cards that were converted to term loans at June 30, 2025 or December 31, 2024.
UNFUNDED LENDING COMMITMENTS
Our unfunded lending commitments consist of the unused credit card lines, which are unconditionally cancellable. We do not anticipate that all of our customers will access their entire available line at any given point in time. The unused credit card lines totaled $438 million and $336 million at June 30, 2025 and December 31, 2024, respectively.
MODIFIED FINANCE RECEIVABLES TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY
We make modifications to our finance receivables to assist borrowers who are experiencing financial difficulty and when we modify the contractual terms for economic or other reasons related to the borrower’s financial difficulties, we classify that receivable as a modified finance receivable.
The period-end carrying value of net finance receivables modified during the period was as follows:
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||||||||||||||
| Interest rate reduction and term extension | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Interest rate reduction and principal forgiveness | ||||||||||||||||||||||||||||||||||||||
| Total modifications to borrowers experiencing financial difficulties | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Modifications as a percent of net finance receivables by class | % | % | % | % | ||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||||||||||||||
| Interest rate reduction and term extension | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Interest rate reduction and principal forgiveness | ||||||||||||||||||||||||||||||||||||||
| Total modifications to borrowers experiencing financial difficulties | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Modifications as a percent of net finance receivables by class | % | % | % | % | ||||||||||||||||||||||||||||||||||
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The financial effect of modifications made during the period was as follows:
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||||||||||||||
| Net finance receivables | ||||||||||||||||||||||||||||||||||||||
| Weighted-average interest rate reduction | % | % | % | % | ||||||||||||||||||||||||||||||||||
| Weighted-average term extension (months) | ||||||||||||||||||||||||||||||||||||||
| Principal/interest forgiveness | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||||||||||||||
| Net finance receivables | ||||||||||||||||||||||||||||||||||||||
| Weighted-average interest rate reduction | % | % | % | % | ||||||||||||||||||||||||||||||||||
| Weighted-average term extension (months) | ||||||||||||||||||||||||||||||||||||||
| Principal/interest forgiveness | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
The performance of finance receivables modified within the previous 12 months by delinquency status was as follows:
| June 30, 2025 (a) | June 30, 2024 (b) | |||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||||||||||||||
Current | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
30-59 days past due | ||||||||||||||||||||||||||||||||||||||
| 60-89 days past due | ||||||||||||||||||||||||||||||||||||||
90+ days past due | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
(a) Excludes $80 million of personal loan receivables that were modified and subsequently charged off within the previous 12 months. Auto finance receivables that were modified and subsequently charged off within the previous 12 months were immaterial .
(b) Excludes $49 million of personal loan receivables that were modified and subsequently charged off. Auto finance receivables that were modified and subsequently charged off were immaterial .
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The period-end carrying value of finance receivables that defaulted during the period to cause the receivable to be considered nonperforming (90 days or more contractually past due) and had been modified within the 12 months preceding the default was as follows:
| Three Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||||||||||||||
| Interest rate reduction and term extension | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Interest rate reduction and principal forgiveness | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Personal Loans | Auto Finance | Personal Loans | Auto Finance | ||||||||||||||||||||||||||||||||||
| Interest rate reduction and term extension | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Interest rate reduction and principal forgiveness | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Modifications made to credit cards were immaterial for the three and six months ended June 30, 2025 and 2024.
4. Allowance for Finance Receivable Losses | ||
We establish an allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by the level of contractual delinquency in the portfolio, specifically in the late-stage delinquency buckets and inclusive of the migration of the finance receivables through the delinquency buckets. We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions.
Our methodology to estimate expected credit losses uses recent macroeconomic forecasts, which include forecasts for unemployment. We leverage projections from various industry leading providers. We also consider inflationary pressures, consumer confidence levels, and elevated interest rates that may continue to impact the economic outlook. At June 30, 2025, our economic forecast used a reasonable and supportable period of 12 months. The increase in our allowance for finance receivable losses for the three and six months ended June 30, 2025 was driven by growth in net finance receivables. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.
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Changes in the allowance for finance receivable losses were as follows:
| (dollars in millions) | Consumer Loans | Credit Cards | Total | |||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | |||||||||||||||||
| Provision for finance receivable losses | ||||||||||||||||||||
| Charge-offs | ( | ( | ( | |||||||||||||||||
| Recoveries | ||||||||||||||||||||
| Balance at end of period | $ | $ | $ | |||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | |||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||
| Charge-offs | ( | ( | ( | |||||||||||||||||
| Recoveries | ||||||||||||||||||||
Other * | ||||||||||||||||||||
| Balance at end of period | $ | $ | $ | |||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | |||||||||||||||||
| Provision for finance receivable losses | ||||||||||||||||||||
| Charge-offs | ( | ( | ( | |||||||||||||||||
| Recoveries | ||||||||||||||||||||
| Balance at end of period | $ | $ | $ | |||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | |||||||||||||||||
| Provision for finance receivable losses | ||||||||||||||||||||
| Charge-offs | ( | ( | ( | |||||||||||||||||
| Recoveries | ||||||||||||||||||||
Other * | ||||||||||||||||||||
| Balance at end of period | $ | $ | $ | |||||||||||||||||
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5. Investment Securities | ||
AVAILABLE-FOR-SALE SECURITIES
Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows:
| (dollars in millions) | Cost/ Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||
| June 30, 2025* | ||||||||||||||||||||||||||||||||
| Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||||||||
| U.S. government and government sponsored entities | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ( | |||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ( | |||||||||||||||||||||||||||||||
Corporate debt | ( | |||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||
RMBS | ( | |||||||||||||||||||||||||||||||
CMBS | ( | |||||||||||||||||||||||||||||||
CDO/ABS | ( | |||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
| December 31, 2024* | ||||||||||||||||||||||||||||||||
| Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ( | |||||||||||||||||||||||||||||||
| Commercial paper | ||||||||||||||||||||||||||||||||
| Non-U.S. government and government sponsored entities | ( | |||||||||||||||||||||||||||||||
| Corporate debt | ( | |||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||
| RMBS | ( | |||||||||||||||||||||||||||||||
| CMBS | ( | |||||||||||||||||||||||||||||||
| CDO/ABS | ( | |||||||||||||||||||||||||||||||
| Total | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
* The allowance for credit losses related to our investment securities as of June 30, 2025 and December 31, 2024 was immaterial.
Interest receivables reported in Other assets in our condensed consolidated balance sheets totaled $14 million and $13 million as of June 30, 2025 and December 31, 2024, respectively. There were no material amounts reversed from investment revenue for available-for-sale securities for the three and six months ended June 30, 2025 and 2024.
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Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows:
| Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ( | ( | ||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ( | ( | ||||||||||||||||||||||||||||||||||||
| Corporate debt | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||
| RMBS | ( | ( | ||||||||||||||||||||||||||||||||||||
| CMBS | ( | ( | ||||||||||||||||||||||||||||||||||||
| CDO/ABS | ( | ( | ||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ( | ( | ||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | ( | ( | ||||||||||||||||||||||||||||||||||||
| Corporate debt | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||
| RMBS | ( | ( | ||||||||||||||||||||||||||||||||||||
| CMBS | ( | ( | ||||||||||||||||||||||||||||||||||||
| CDO/ABS | ( | ( | ||||||||||||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
On a lot basis, we had 1,528 and 1,771 investment securities in an unrealized loss position at June 30, 2025 and December 31, 2024, respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, as of June 30, 2025, there were no credit impairments on investment securities that we intend to sell. We do not have plans to sell any of the remaining investment securities with unrealized losses as of June 30, 2025, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost.
We continue to monitor unrealized loss positions for potential credit impairments. During the three and six months ended June 30, 2025 and 2024, there were no material credit impairments related to our investment securities. Therefore, there were no material additions or reductions in the allowance for credit losses (impairments recognized or reversed in earnings) on credit impaired available-for-sale securities for the three and six months ended June 30, 2025 and 2024.
The proceeds of available-for-sale securities sold or redeemed during the three and six months ended June 30, 2025 totaled $21 million and $42 million, respectively. The proceeds of available-for-sale securities sold or redeemed during the three and six months ended June 30, 2024 totaled $24 million and $44 million, respectively. The net realized gains and losses were immaterial during the three and six months ended June 30, 2025 and 2024.
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Contractual maturities of fixed-maturity available-for-sale securities at June 30, 2025 were as follows:
| (dollars in millions) | Fair Value | Amortized Cost | ||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||||||||||||||
| Due in 1 year or less | $ | $ | ||||||||||||
| Due after 1 year through 5 years | ||||||||||||||
| Due after 5 years through 10 years | ||||||||||||||
| Due after 10 years | ||||||||||||||
| Mortgage-backed, asset-backed, and collateralized securities | ||||||||||||||
| Total | $ | $ | ||||||||||||
Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies.
The fair value of securities on deposit with third parties totaled $480 million and $452 million at June 30, 2025 and December 31, 2024, respectively.
OTHER SECURITIES
The fair value of other securities by type was as follows:
| (dollars in millions) | June 30, 2025 | December 31, 2024 | ||||||||||||
| Fixed maturity other securities: | ||||||||||||||
| Bonds | $ | $ | ||||||||||||
Preferred stock | ||||||||||||||
Common stock | ||||||||||||||
| Total | $ | $ | ||||||||||||
Net unrealized gains and losses on other securities held were immaterial for the three and six months ended June 30, 2025 and 2024. Net realized gains and losses on other securities sold or redeemed are included in Other revenue - investment and were immaterial for the three and six months ended June 30, 2025 and 2024.
Other securities primarily consist of equity securities and those securities for which the fair value option was elected. We report net unrealized and realized gains and losses on other securities held, sold, or redeemed in Other revenue - investment.
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6. Long-term Debt | ||
Principal maturities of long-term debt by type of debt at June 30, 2025 were as follows:
| Senior Debt | ||||||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | Securitizations | Private Secured Term Funding | Revolving Conduit Facilities | Unsecured Notes (a) | Junior Subordinated Debt (a) | Total | ||||||||||||||||||||||||||||||||||||||
| Interest rates (b) | % | |||||||||||||||||||||||||||||||||||||||||||
| Remainder of 2025 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| 2026 | ||||||||||||||||||||||||||||||||||||||||||||
| 2027 | ||||||||||||||||||||||||||||||||||||||||||||
| 2028 | ||||||||||||||||||||||||||||||||||||||||||||
| 2029 | ||||||||||||||||||||||||||||||||||||||||||||
| 2030-2067 | ||||||||||||||||||||||||||||||||||||||||||||
| Secured (c) | ||||||||||||||||||||||||||||||||||||||||||||
| Total principal maturities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Total carrying amount | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
| Debt issuance costs (d) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
(a) Pursuant to the Base Indenture, the Supplemental Indentures, and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions.
(b) The interest rates shown are the range of contractual rates in effect at June 30, 2025.
(c) Securitizations, private secured term funding, and borrowings under the revolving conduit facilities are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. See Note 7 for further information on our long-term debt associated with securitizations, private secured term funding, and revolving conduit facilities.
(d) Debt issuance costs are reported as a direct reduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, credit card revolving variable funding note (“VFN”) facilities, and unsecured corporate revolver, which totaled $34 million at June 30, 2025 and are reported in Other assets in our condensed consolidated balance sheets.
UNSECURED CORPORATE REVOLVER
At June 30, 2025, the total maximum borrowing capacity of our unsecured corporate revolver was $1.1 billion. The corporate revolver has a five-year term, during which draws and repayments may occur. Any outstanding principal balance is due and payable on September 6, 2029.
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7. Variable Interest Entities | ||
CONSOLIDATED VIES
We have transferred finance receivables to VIEs for asset-backed financing transactions and include the assets and liabilities in our condensed consolidated financial statements because we are the primary beneficiary of each VIE. We account for these asset-backed debt obligations as securitized borrowings.
See Note 2 and Note 10 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for more detail regarding VIEs.
We parenthetically disclose on our condensed consolidated balance sheets the VIEs’ assets that can only be used to settle the VIEs’ obligations and liabilities when their creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts, private secured term funding, revolving conduit facilities, and credit card revolving VFN facilities were as follows:
| (dollars in millions) | June 30, 2025 | December 31, 2024 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||
| Net finance receivables | ||||||||||||||
| Allowance for finance receivable losses | ||||||||||||||
| Restricted cash and restricted cash equivalents | ||||||||||||||
| Other assets | ||||||||||||||
| Liabilities | ||||||||||||||
| Long-term debt | $ | $ | ||||||||||||
| Other liabilities | ||||||||||||||
Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no further obligation than is otherwise noted herein, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $157 million and $316 million during the three and six months ended June 30, 2025, respectively, compared to $161 million and $299 million during the three and six months ended June 30, 2024, respectively.
SECURITIZED BORROWINGS
Our outstanding OneMain Financial Issuance Trust (“OMFIT”) and OneMain Direct Auto Receivables Trust (“ODART”) securitizations contain a revolving period ranging from two to seven years during which no principal payments are required to be made on the related asset-backed notes. The indentures governing our OMFIT and ODART securitized borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes. Our Foursight Capital Automobile Receivables Trust ("FCRT") securitizations are amortizing.
CREDIT CARD REVOLVING VFN FACILITIES
We have transferred credit card gross finance receivables to a master trust, OneMain Financial Credit Card Trust (“OMFCT”), and we continue to service and administer the credit cards. As of June 30, 2025, OMFCT was the issuing entity for two credit card revolving VFN facilities by way of certain indenture supplements and note purchase agreements with a total maximum borrowing capacity of $400 million. Each credit card revolving VFN facility has a revolving period during which no principal payments are required, but may be made without penalty, followed by a subsequent amortization period. Principal balances of outstanding notes, if any, are due and payable in full over periods ranging up to five years as of June 30, 2025. Amounts drawn on these credit card revolving VFN facilities are secured and collateralized by our credit card gross finance receivables.
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PRIVATE SECURED TERM FUNDING
At June 30, 2025, the maximum borrowing capacity of $350 million was outstanding under a private secured term funding facility. Principal payments on any outstanding balances are not required until after October 2027, followed by a subsequent amortization period, which upon expiration the outstanding principal is due and payable.
REVOLVING CONDUIT FACILITIES
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8. Insurance | ||
Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables) on our short-duration insurance contracts were as follows:
| At or for the Six Months Ended June 30, | ||||||||||||||
| (dollars in millions) | 2025 | 2024 | ||||||||||||
| Balance at beginning of period | $ | $ | ||||||||||||
| Less reinsurance recoverables | ( | ( | ||||||||||||
| Net balance at beginning of period | ||||||||||||||
| Additions for losses and loss adjustment expenses incurred to: | ||||||||||||||
| Current year | ||||||||||||||
Prior years * | ( | ( | ||||||||||||
| Total | ||||||||||||||
| Reductions for losses and loss adjustment expenses paid related to: | ||||||||||||||
| Current year | ( | ( | ||||||||||||
| Prior years | ( | ( | ||||||||||||
| Total | ( | ( | ||||||||||||
| Foreign currency translation adjustment | ||||||||||||||
| Net balance at end of period | ||||||||||||||
| Plus reinsurance recoverables | ||||||||||||||
| Balance at end of period | $ | $ | ||||||||||||
* At June 30, 2025, there was a redundancy in the prior years’ net reserves due to favorable development of credit disability claims during the period. At June 30, 2024, there was a redundancy in the prior years’ net reserves due to favorable development of collateral protection and credit disability claims during the period.
LIABILITY FOR FUTURE POLICY BENEFITS
The present values of expected net premiums on long-duration insurance contracts were as follows:
| At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Effect of cumulative changes in discount rate assumptions (beginning of period) | ( | ( | |||||||||||||||||||||||||||||||||
| Beginning balance at original discount rate | |||||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Adjusted balance at beginning of period | |||||||||||||||||||||||||||||||||||
| Interest accretion | |||||||||||||||||||||||||||||||||||
| Net premiums collected | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Ending balance at original discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | |||||||||||||||||||||||||||||||||
| Balance at ending of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
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The present values of expected future policy benefits on long-duration insurance contracts were as follows:
| At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Effect of cumulative changes in discount rate assumptions (beginning of period) | ( | ( | |||||||||||||||||||||||||||||||||
| Beginning balance at original discount rate | |||||||||||||||||||||||||||||||||||
| Effect of actual variances from expected experience | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Adjusted balance at beginning of period | |||||||||||||||||||||||||||||||||||
| Net issuances | |||||||||||||||||||||||||||||||||||
| Interest accretion | |||||||||||||||||||||||||||||||||||
| Benefit payments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Ending balance at original discount rate | |||||||||||||||||||||||||||||||||||
| Effect of changes in discount rate assumptions | ( | ( | |||||||||||||||||||||||||||||||||
| Balance at ending of period | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
The net liabilities for future policy benefits on long-duration insurance contracts were as follows:
| At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||||||||||
| Net liability for future policy benefits | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Deferred profit liability | |||||||||||||||||||||||||||||||||||
| Total net liability for future policy benefits | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
The weighted-average duration of the liability for future policy benefits was 8
The following table reconciles the net liability for future policy benefits to Insurance claims and policyholder liabilities in the condensed consolidated balance sheets:
| At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||
| Term and whole life | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Accidental death and disability protection | |||||||||||||||||||||||||||||||||||||||||
| Other* | |||||||||||||||||||||||||||||||||||||||||
Total insurance claims and policyholder liabilities | $ | $ | |||||||||||||||||||||||||||||||||||||||
* Other primarily includes reserves for short-duration contracts that are payable to third-party beneficiaries.
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The undiscounted and discounted expected future gross premiums and expected future benefits and expenses for our long-duration insurance contracts were as follows:
| At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||||||||||
| Expected future gross premiums: | |||||||||||||||||||||||||||||||||||
| Undiscounted | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Discounted | |||||||||||||||||||||||||||||||||||
| Expected future benefit payments: | |||||||||||||||||||||||||||||||||||
| Undiscounted | |||||||||||||||||||||||||||||||||||
| Discounted | |||||||||||||||||||||||||||||||||||
The revenue and interest accretion related to our long-duration insurance contracts recognized in the condensed consolidated statements of operations were as follows:
| At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (dollars in millions) | Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | |||||||||||||||||||||||||||||||
| Gross premiums or assessments | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Interest accretion | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
The expected and actual experiences for mortality, morbidity, and lapses of the liability for future policy benefits were as follows:
| At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | ||||||||||||||||||||||||||||||||
| Mortality/Morbidity: | |||||||||||||||||||||||||||||||||||
| Expected | % | % | % | % | |||||||||||||||||||||||||||||||
| Actual | % | % | % | % | |||||||||||||||||||||||||||||||
| Lapses: | |||||||||||||||||||||||||||||||||||
| Expected | % | % | % | % | |||||||||||||||||||||||||||||||
| Actual | % | % | % | % | |||||||||||||||||||||||||||||||
The weighted-average interest rates for the liability of future policy benefits for our long-duration insurance contracts were as follows:
| At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Term and Whole Life | Accidental Death and Disability Protection | Term and Whole Life | Accidental Death and Disability Protection | ||||||||||||||||||||||||||||||||
| Interest accretion rate | % | % | % | % | |||||||||||||||||||||||||||||||
| Current discount rate | % | % | % | % | |||||||||||||||||||||||||||||||
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9. Capital Stock and Earnings Per Share (OMH Only) | ||
CAPITAL STOCK
OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance.
Changes in OMH shares of common stock issued and outstanding were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Balance at beginning of period | ||||||||||||||||||||||||||||||||
| Common stock issued | ||||||||||||||||||||||||||||||||
| Common stock repurchased | ( | ( | ( | ( | ||||||||||||||||||||||||||||
| Treasury stock issued | ||||||||||||||||||||||||||||||||
| Balance at end of period | ||||||||||||||||||||||||||||||||
EARNINGS PER SHARE (OMH ONLY)
The computation of earnings per share was as follows:
| Three Months Ended June 30, | Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||
| (dollars in millions, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Numerator (basic and diluted): | ||||||||||||||||||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding (basic) | ||||||||||||||||||||||||||||||||
| Effect of dilutive securities * | ||||||||||||||||||||||||||||||||
| Weighted average number of shares outstanding (diluted) | ||||||||||||||||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||||||||
| Basic | $ | $ | $ | $ | ||||||||||||||||||||||||||||
| Diluted | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested restricted stock units.
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10. Accumulated Other Comprehensive Income (Loss) | ||
Changes, net of tax, in Accumulated other comprehensive income (loss) were as follows:
| (dollars in millions) | Unrealized Gains (Losses) Available-for-Sale Securities (a) | Retirement Plan Liabilities Adjustments | Foreign Currency Translation Adjustments | Changes in Discount Rate for Insurance Claims and Policyholder Liabilities | Other (b) | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
| Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | ( | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
(a) There were no material amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three and six months ended June 30, 2025 and 2024.
(b) Other primarily includes changes in the fair value of our mark-to-market derivative instruments that have been designated as cash flow hedges.
Reclassification adjustments from Accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were immaterial for the three and six months ended June 30, 2025 and 2024.
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| 11. Income Taxes | ||
We follow the guidance of ASC 740, Income Taxes, for interim reporting of income taxes under which we calculate an estimated annual effective tax rate (“AETR”) and apply the AETR to our year-to-date income (loss) before income taxes. In addition, we recognize any discrete items as they occur.
We had a net deferred tax asset of $514 million and $517 million at June 30, 2025 and December 31, 2024, respectively, reported in Other assets in our condensed consolidated balance sheets.
Our gross unrecognized tax benefits, including related interest and penalties, totaled $18 million at June 30, 2025 and $20 million at December 31, 2024.
12. Contingencies | ||
LEGAL CONTINGENCIES
In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions, and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Additionally, we are, from time to time, in the normal course of business, subject to inquiries and investigations by federal, state, and local governmental authorities regarding our products and our operations. These inquiries and investigations may result in fines, restitution, or other penalties, including injunctive relief that may result in restrictions on our business. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims.
We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss.
For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or range of additional loss can be reasonably estimated for any given action.
For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole.
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13. Segment Information | ||
At June 30, 2025, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans.
The accounting policies of the C&I segment are the same as those disclosed in Note 2 and Note 18 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report.
We have identified the following significant segment expenses: Interest expense, Provision for finance receivable losses, Salaries and benefits expense, Other operating expenses, and Insurance policy benefits and claims expense. Based on our identified significant segment expenses, there are no other segment items.
Our chief operating decision maker (“CODM”) is our Chief Executive Officer (“CEO”). The CODM uses Income (loss) before income tax expense (benefit) to assess the performance of the C&I segment, allocate resources, and make strategic operating decisions.
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The following tables present information about C&I and Other, as well as reconciliations to the condensed consolidated financial statement amounts.
| (dollars in millions) | Consumer and Insurance | Other | Segment to GAAP Adjustment | Consolidated Total | ||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ||||||||||||||||||||||||||
| Other revenues | ( | |||||||||||||||||||||||||
Salaries and benefits | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Insurance policy benefits and claims | ||||||||||||||||||||||||||
Income (loss) before income tax expense | $ | $ | ( | $ | $ | |||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ( | |||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||
Salaries and benefits | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Insurance policy benefits and claims | ||||||||||||||||||||||||||
Income before income tax expense (benefit) | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ||||||||||||||||||||||||||
| Other revenues | ( | |||||||||||||||||||||||||
Salaries and benefits | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Insurance policy benefits and claims | ||||||||||||||||||||||||||
Income (loss) before income tax expense | $ | $ | ( | $ | $ | |||||||||||||||||||||
| Assets | $ | $ | $ | $ | ||||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||
| Interest income | $ | $ | $ | $ | ||||||||||||||||||||||
| Interest expense | ||||||||||||||||||||||||||
Provision for finance receivable losses | ||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | ( | |||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||
Salaries and benefits | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Insurance policy benefits and claims | ||||||||||||||||||||||||||
Income before income tax expense (benefit) | $ | $ | $ | ( | $ | |||||||||||||||||||||
| Assets | $ | $ | $ | $ | ||||||||||||||||||||||
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14. Fair Value Measurements | ||
The accounting policies of our fair value measurements are the same as those disclosed in Note 2 and Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report.
The following table presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
| Fair Value Measurements Using | Total Fair Value | Total Carrying Value | ||||||||||||||||||||||||||||||
| (dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Investment securities | ||||||||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | ||||||||||||||||||||||||||||||||
| Restricted cash and restricted cash equivalents | ||||||||||||||||||||||||||||||||
Other assets * | ||||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Long-term debt | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Investment securities | ||||||||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | ||||||||||||||||||||||||||||||||
| Restricted cash and restricted cash equivalents | ||||||||||||||||||||||||||||||||
Other assets * | ||||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||
| Long-term debt | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
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FAIR VALUE MEASUREMENTS — RECURRING BASIS
The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value:
| Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
| (dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Cash equivalents in mutual funds | $ | $ | $ | $ | ||||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||
| Available-for-sale securities | ||||||||||||||||||||||||||
| U.S. government and government sponsored entities | ||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ||||||||||||||||||||||||||
| Commercial paper | ||||||||||||||||||||||||||
| Non-U.S. government and government sponsored entities | ||||||||||||||||||||||||||
| Corporate debt | ||||||||||||||||||||||||||
| RMBS | ||||||||||||||||||||||||||
| CMBS | ||||||||||||||||||||||||||
| CDO/ABS | ||||||||||||||||||||||||||
| Total available-for-sale securities | ||||||||||||||||||||||||||
| Other securities | ||||||||||||||||||||||||||
| Bonds: | ||||||||||||||||||||||||||
| Corporate debt | ||||||||||||||||||||||||||
| CDO/ABS | ||||||||||||||||||||||||||
| Total bonds | ||||||||||||||||||||||||||
| Preferred stock | ||||||||||||||||||||||||||
| Common stock | ||||||||||||||||||||||||||
| Total other securities | ||||||||||||||||||||||||||
| Total investment securities | ||||||||||||||||||||||||||
| Restricted cash equivalents in mutual funds | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
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| Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||
| (dollars in millions) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Cash equivalents in mutual funds | $ | $ | $ | $ | ||||||||||||||||||||||
| Cash equivalents in securities | ||||||||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||
| Available-for-sale securities | ||||||||||||||||||||||||||
| U.S. government and government sponsored entities | ||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | ||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||
| Non-U.S. government and government sponsored entities | ||||||||||||||||||||||||||
| Corporate debt | ||||||||||||||||||||||||||
| RMBS | ||||||||||||||||||||||||||
| CMBS | ||||||||||||||||||||||||||
| CDO/ABS | ||||||||||||||||||||||||||
| Total available-for-sale securities | ||||||||||||||||||||||||||
| Other securities | ||||||||||||||||||||||||||
| Bonds: | ||||||||||||||||||||||||||
| Corporate debt | ||||||||||||||||||||||||||
| CDO/ABS | ||||||||||||||||||||||||||
| Total bonds | ||||||||||||||||||||||||||
| Preferred stock | ||||||||||||||||||||||||||
| Common stock | ||||||||||||||||||||||||||
| Total other securities | ||||||||||||||||||||||||||
| Total investment securities | ||||||||||||||||||||||||||
| Restricted cash equivalents in mutual funds | ||||||||||||||||||||||||||
| Restricted cash equivalents in securities | ||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||||||||||||
Due to the insignificant activity within the Level 3 assets during the three and six months ended June 30, 2025 and 2024, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs.
FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS
We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial during the three and six months ended June 30, 2025 and 2024.
FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS
See Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for information regarding our methods and assumptions used to estimate fair value.
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| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. | ||
An index to our management’s discussion and analysis follows:
| Topic | Page | |||||||
Forward-Looking Statements | 45 | |||||||
Overview | 46 | |||||||
Recent Developments and Outlook | 47 | |||||||
Results of Operations | 48 | |||||||
Segment Results | 52 | |||||||
Credit Quality | 55 | |||||||
Liquidity and Capital Resources | 58 | |||||||
Critical Accounting Policies and Estimates | 64 | |||||||
Recent Accounting Pronouncements | 64 | |||||||
Seasonality | 64 | |||||||
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| Forward-Looking Statements | ||
This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead represent only management’s current beliefs regarding future events. By their nature, forward-looking statements are subject to risks, uncertainties, assumptions, and other important factors that may cause actual results, performance, or achievements to differ materially from those expressed in or implied by such forward-looking statements. We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. We do not undertake any obligation to update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Forward-looking statements include, without limitation, statements concerning future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Statements preceded by, followed by or that otherwise include the words “anticipates,” “appears,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “foresees,” “goals,” “intends,” “likely,” “objective,” “plans,” “projects,” “target,” “trend,” “remains,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” or “would” are intended to identify forward-looking statements, but these words are not the exclusive means of identifying forward-looking statements. Important factors that could cause actual results, performance, or achievements to differ materially from those expressed in or implied by forward-looking statements include, without limitation, the following:
•adverse changes and volatility in general economic conditions, including the interest rate environment and the financial markets;
•the sufficiency of our allowance for finance receivable losses;
•increased levels of unemployment and personal bankruptcies;
•the current inflationary environment and related trends affecting our customers;
•natural or accidental events such as earthquakes, hurricanes, pandemics, floods, or wildfires affecting our customers, collateral, or our facilities;
•a failure in or breach of our information, operational or security systems, or infrastructure or those of third parties, including as a result of cyber incidents, war, or other disruptions;
•the adequacy of our credit risk scoring models;
•geopolitical risks, including recent geopolitical actions outside the U.S.;
•adverse changes in our ability to attract and retain employees or key executives;
•increased competition or adverse changes in customer responsiveness to our distribution channels or products;
•changes in federal, state, or local laws, regulations, or regulatory policies and practices or increased regulatory scrutiny of our business or industry;
•risks associated with our insurance operations;
•the costs and effects of any actual or alleged violations of any federal, state, or local laws, rules or regulations;
•the costs and effects of any fines, penalties, judgments, decrees, orders, inquiries, investigations, subpoenas, or enforcement or other proceedings of any governmental or quasi-governmental agency or authority;
•our substantial indebtedness and our continued ability to access the capital markets and maintain adequate current sources of funds to satisfy our cash flow requirements;
•our ability to comply with all of our covenants; and
•the effects of any downgrade of our debt ratings by credit rating agencies.
We also direct readers to the other risks and uncertainties discussed in Part I - Item 1A. “Risk Factors” included in our Annual Report and in other documents we file with the SEC.
If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. You should specifically consider the factors identified in this report and in the documents we file with the SEC that could cause actual results to differ before making an investment decision to purchase our securities and should not place undue reliance on any of our forward-looking statements. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.
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| Overview | ||
We offer consumer loans, which consist of personal loans and auto finance, credit cards, and other products to help customers meet everyday needs and take steps to improve their financial well-being. We service the loans that we retain on our balance sheet, as well as loans owned by third parties. Additionally, our insurance subsidiaries offer optional credit and non-credit insurance and other optional products. We also offer two credit cards, BrightWay and BrightWay+, which are designed to offer a highly digital customer experience while also rewarding customers for responsible credit activity. Our resources allow us to operate in 47 states and provide a seamless experience through our customers’ preferred channels, including in person, online or over the phone, using our digital platforms, distribution partnerships, or working with our expert team members at more than 1,300 locations.
OUR PRODUCTS
Our product offerings include:
•Personal Loans — We offer personal loans through our branch network, central operations, direct mail, digital affiliates, and our website, www.onemainfinancial.com, to customers who need timely access to cash. Our personal loans are non-revolving, with a fixed rate, have fixed terms generally between three and six years, and are secured by automobiles, other titled collateral, or are unsecured. At June 30, 2025, we had approximately 2.3 million personal loans totaling $20.8 billion of net finance receivables, of which 52% were secured by titled property, compared to approximately 2.4 million personal loans totaling $20.8 billion of net finance receivables, of which 50% were secured by titled property at December 31, 2024. We also service personal loans for our whole loan sale partners.
•Auto Finance — We offer secured auto financing originated at the point of purchase through a growing network of franchise and independent dealerships. The loans are non-revolving, with a fixed rate, and have fixed terms generally between three and six years. At June 30, 2025, we had approximately 138 thousand auto finance loans totaling $2.3 billion of net finance receivables, compared to approximately 127 thousand auto finance loans totaling $2.1 billion of net finance receivables at December 31, 2024. We also service auto finance loans for our whole loan sale partners and loans originated by third parties.
•Credit Cards — BrightWay and BrightWay+ credit cards originate through a third-party bank partner from which we purchase the receivable balances. The credit cards are offered across our branch network, as well as through direct mail, our digital affiliates, and our website. Credit cards are open-ended, revolving, with a fixed rate, and are unsecured. At June 30, 2025, we had approximately 920 thousand open credit card customer accounts, totaling $752 million of net finance receivables, compared to approximately 783 thousand open credit card customer accounts, totaling $643 million of net finance receivables at December 31, 2024.
•Optional Products — We offer our customers optional credit insurance products (life, disability, and involuntary unemployment insurance) and optional non-credit insurance products through both our branch network and our central operations. Credit insurance and non-credit insurance products are provided by our affiliated insurance companies. We offer Guaranteed Asset Protection (“GAP”) coverage as a waiver product or insurance. We also offer optional membership plans from an unaffiliated company.
OUR SEGMENT
At June 30, 2025, Consumer and Insurance (“C&I”) is our only reportable segment, which includes consumer loans, credit cards, and optional products. At June 30, 2025, we had $25.2 billion of managed receivables due from approximately 3.5 million customer accounts, compared to $24.7 billion of managed receivables due from approximately 3.4 million customer accounts at December 31, 2024.
The remaining components (which we refer to as “Other”) consist of our liquidating SpringCastle Portfolio servicing activity and our non-originating legacy operations, which primarily include our liquidating real estate loans held for sale and reported in Other assets in our condensed consolidated balance sheets. See Note 13 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information about our segment.
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| Recent Developments and Outlook | ||
RECENT DEVELOPMENTS
Issuances and Redemption of Unsecured Debt
On March 13, 2025, OMFC issued a total of $600 million aggregate principal amount of 6.750% Senior Notes due 2032.
On June 11, 2025, OMFC issued a total of $800 million aggregate principal amount of 7.125% Senior Notes due 2032.
On June 27, 2025, OMFC paid a net aggregate amount of $822 million, inclusive of accrued interest and premium, to complete a partial redemption of its 7.125% Senior Notes due 2026.
For information about the issuance of our unsecured debt, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.
Securitization Transactions Completed - ODART 2025-1 and OMFIT 2025-1
For information regarding the issuances of our secured debt, see “Liquidity and Capital Resources” under Management’s
Discussion and Analysis of Financial Condition and Results of Operations in this report.
Election of Members to the OMH Board of Directors
On March 17, 2025, Andrew D. Macdonald was elected to the OMH Board of Directors.
On June 10, 2025, Christopher A. Halmy was elected to the OMH Board of Directors.
Cash Dividends to OMH’s Common Stockholders
For information regarding the quarterly dividends declared by OMH, see “Liquidity and Capital Resources” under Management’s Discussion and Analysis of Financial Condition and Results of Operations in this report.
OUTLOOK
We actively monitor the current macroeconomic environment and remain prepared for any developments that may impact our business. Our financial condition and results of operations could be affected by macroeconomic conditions, including changes in unemployment, inflation, interest rates, consumer confidence, and geopolitical actions outside of the U.S. We incorporate updates to our macroeconomic assumptions, as necessary, which could lead to adjustments in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.
Our experienced management team remains focused on maintaining a strong balance sheet with a long liquidity runway and adequate capital while maintaining a conservative and disciplined underwriting model. We believe we are well positioned to serve our customers and execute on our strategic priorities, including:
•striving to be the lender of choice for nonprime consumers and improve their financial well-being;
•continuing to expand our product offerings and grow our receivables;
•maintaining a rigorous focus on maximizing returns while minimizing credit risk;
•leveraging our scale and cost discipline across the Company to deliver improved operating leverage; and
•maintaining a strong liquidity level with diversified funding sources.
We believe our commitment to closely monitor the macroeconomic environment, retain disciplined underwriting, drive strategic growth initiatives, and attract and retain top talent strengthens our ability to navigate challenges and seize opportunities. With a robust balance sheet and a focus on our key initiatives, we are confident in our ability to increase shareholder value and remain resilient and adaptable to navigate an ever-evolving economic, social, political, and regulatory landscape.
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| Results of Operations | ||
The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this section relates only to OMH. See Note 1 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information.
OMH’S CONSOLIDATED RESULTS
The following table below presents OMH’s consolidated operating results and selected financial statistics. A further discussion of OMH’s operating results for our operating segment is provided under “Segment Results” below.
| At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Interest income | $ | 1,339 | $ | 1,219 | $ | 2,648 | $ | 2,392 | ||||||||||||||||||||||||
| Interest expense | 317 | 297 | 629 | 574 | ||||||||||||||||||||||||||||
| Provision for finance receivable losses | 511 | 575 | 967 | 1,006 | ||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 511 | 347 | 1,052 | 812 | ||||||||||||||||||||||||||||
| Other revenues | 176 | 174 | 364 | 354 | ||||||||||||||||||||||||||||
| Other expenses | 473 | 429 | 927 | 870 | ||||||||||||||||||||||||||||
Income before income taxes | 214 | 92 | 489 | 296 | ||||||||||||||||||||||||||||
| Income taxes | 47 | 21 | 109 | 71 | ||||||||||||||||||||||||||||
| Net income | $ | 167 | $ | 71 | $ | 380 | $ | 225 | ||||||||||||||||||||||||
| Share Data: | ||||||||||||||||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||||||||||||
| Diluted | $ | 1.40 | $ | 0.59 | $ | 3.18 | $ | 1.87 | ||||||||||||||||||||||||
Selected Financial Statistics (a) | ||||||||||||||||||||||||||||||||
| Total finance receivables: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 23,870 | $ | 22,365 | $ | 23,870 | $ | 22,365 | ||||||||||||||||||||||||
| Average net receivables | $ | 23,600 | $ | 22,141 | $ | 23,526 | $ | 21,704 | ||||||||||||||||||||||||
Gross charge-off ratio (b) | 9.05 | % | 9.84 | % | 9.37 | % | 9.98 | % | ||||||||||||||||||||||||
| Recovery ratio | (1.48) | % | (1.37) | % | (1.51) | % | (1.41) | % | ||||||||||||||||||||||||
Net charge-off ratio (b) | 7.57 | % | 8.47 | % | 7.86 | % | 8.56 | % | ||||||||||||||||||||||||
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| At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions, except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
Selected Financial Statistics, continued (a) | ||||||||||||||||||||||||||||||||
| Personal loans: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 20,814 | $ | 20,073 | $ | 20,814 | $ | 20,073 | ||||||||||||||||||||||||
| Origination volume | $ | 3,534 | $ | 3,293 | $ | 6,213 | $ | 5,647 | ||||||||||||||||||||||||
| Number of accounts | 2,340,944 | 2,326,811 | 2,340,944 | 2,326,811 | ||||||||||||||||||||||||||||
| Number of accounts originated | 328,162 | 312,955 | 576,247 | 543,805 | ||||||||||||||||||||||||||||
Auto finance: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 2,304 | $ | 1,826 | $ | 2,304 | $ | 1,826 | ||||||||||||||||||||||||
| Origination volume | $ | 373 | $ | 290 | $ | 716 | $ | 458 | ||||||||||||||||||||||||
| Number of accounts | 138,405 | 113,456 | 138,405 | 113,456 | ||||||||||||||||||||||||||||
| Number of accounts originated | 16,645 | 14,421 | 32,402 | 24,780 | ||||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 23,118 | $ | 21,899 | $ | 23,118 | $ | 21,899 | ||||||||||||||||||||||||
| Yield | 22.70 | % | 22.12 | % | 22.62 | % | 22.12 | % | ||||||||||||||||||||||||
| Origination volume | $ | 3,907 | $ | 3,582 | $ | 6,929 | $ | 6,105 | ||||||||||||||||||||||||
| Number of accounts | 2,479,349 | 2,440,267 | 2,479,349 | 2,440,267 | ||||||||||||||||||||||||||||
| Number of accounts originated | 344,807 | 327,376 | 608,649 | 568,585 | ||||||||||||||||||||||||||||
Net charge-off ratio (b) | 7.19 | % | 8.31 | % | 7.50 | % | 8.44 | % | ||||||||||||||||||||||||
| 30-89 Delinquency ratio | 3.04 | % | 3.12 | % | 3.04 | % | 3.12 | % | ||||||||||||||||||||||||
| Credit cards: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 752 | $ | 466 | $ | 752 | $ | 466 | ||||||||||||||||||||||||
| Purchase volume | $ | 305 | $ | 218 | $ | 554 | $ | 386 | ||||||||||||||||||||||||
| Number of open accounts | 920,311 | 612,292 | 920,311 | 612,292 | ||||||||||||||||||||||||||||
| Debt balances: | ||||||||||||||||||||||||||||||||
| Long-term debt balance | $ | 22,053 | $ | 20,671 | $ | 22,053 | $ | 20,671 | ||||||||||||||||||||||||
| Average daily debt balance | $ | 21,805 | $ | 20,894 | $ | 21,740 | $ | 20,298 | ||||||||||||||||||||||||
(a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.
(b) The calculations for the three and six months ended June 30, 2024 have been adjusted for policy alignment associated with the Foursight Acquisition. See Note 4 of the Notes to the Consolidated Financial Statements in Part II - Item 8 of our Annual Report for additional information.
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Comparison of Consolidated Results for Three and Six Months Ended June 30, 2025 and 2024
Interest income increased $120 million or 10% and $256 million or 11% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 due to growth in average net receivables and an increase in yield.
Interest expense increased $20 million or 7% and $55 million or 10% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 due to an increase in average debt to support our receivables growth and a higher average cost of funds.
Provision for finance receivable losses decreased $64 million or 11% and $39 million or 4% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 reflecting the impact of the Foursight Acquisition in the second quarter of 2024 and lower net charge-offs, partially offset by growth in receivables in the current period.
Other revenues increased $2 million or 1% and $10 million or 3% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 due to a higher gain on sales of finance receivables and an increase in credit card revenue from growth in receivables, partially offset by losses on the repurchases and repayments of debt and a decrease in investment revenue due to lower average corporate cash balances.
Other expenses increased $44 million or 10% and $57 million or 6% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 driven by increases in salaries and benefits expense and general operating expenses due to growth in receivables and our strategic investments in the business. The increase for the six months ended was partially offset by restructuring charges in the prior period not present in the current period.
Income taxes increased $26 million or 122% and $38 million or 55% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 due to higher pretax income.
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NON-GAAP FINANCIAL MEASURES
Management uses C&I adjusted pretax income (loss), a non-GAAP financial measure, as a key performance measure of our segment. C&I adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes net gain or loss resulting from repurchases and repayments of debt, restructuring charges, acquisition-related transaction and integration expenses, and other items and strategic activities. Management believes C&I adjusted pretax income (loss) is useful in assessing the profitability of our segment.
Management also uses pretax capital generation, a non-GAAP financial measure, as a key performance measure of our segment. This measure represents C&I adjusted pretax income as discussed above and excludes the change in our C&I allowance for finance receivable losses in the period while still considering the C&I net charge-offs incurred during the period. Management believes that pretax capital generation is useful in assessing the capital created in the period impacting the overall capital adequacy of the Company. Management believes that the Company’s reserves, combined with its equity, represent the Company’s loss absorption capacity.
Management utilizes both C&I adjusted pretax income (loss) and pretax capital generation in evaluating our performance. Additionally, both of these non-GAAP measures are consistent with the performance goals established in OMH’s executive compensation program. C&I adjusted pretax income (loss) and pretax capital generation are non-GAAP financial measures and should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP.
OMH’s reconciliations of income before income tax expense on a Segment Accounting Basis to C&I adjusted pretax income (non-GAAP) and pretax capital generation (non-GAAP) were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Consumer and Insurance | ||||||||||||||||||||||||||||||||
Income before income taxes - Segment Accounting Basis | $ | 211 | $ | 145 | $ | 481 | $ | 348 | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | 20 | 12 | 25 | 14 | ||||||||||||||||||||||||||||
| Restructuring charges | — | — | — | 27 | ||||||||||||||||||||||||||||
| Acquisition-related transaction and integration expenses | — | 2 | 1 | 3 | ||||||||||||||||||||||||||||
Other | — | 4 | — | 4 | ||||||||||||||||||||||||||||
Adjusted pretax income (non-GAAP) | 231 | 163 | 507 | 396 | ||||||||||||||||||||||||||||
| Provision for finance receivable losses | 511 | 515 | 967 | 946 | ||||||||||||||||||||||||||||
| Net charge-offs | (446) | (496) | (919) | (953) | ||||||||||||||||||||||||||||
| Pretax capital generation (non-GAAP) | $ | 296 | $ | 182 | $ | 555 | $ | 389 | ||||||||||||||||||||||||
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| Segment Results | ||
The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this section relates only to OMH. See Note 1 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information.
See Note 13 of the Notes to the Condensed Consolidated Financial Statements included in this report for a description of our segment and methodologies used to allocate revenues and expenses to our C&I segment and for reconciliations of segment total to condensed consolidated financial statement amounts.
CONSUMER AND INSURANCE
The following table below presents OMH’s adjusted pretax income and selected financial statistics for C&I on an adjusted Segment Accounting Basis.
| At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
| Interest income | $ | 1,333 | $ | 1,210 | $ | 2,635 | $ | 2,382 | ||||||||||||||||||||||||
| Interest expense | 317 | 295 | 628 | 572 | ||||||||||||||||||||||||||||
| Provision for finance receivable losses | 511 | 515 | 967 | 946 | ||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 505 | 400 | 1,040 | 864 | ||||||||||||||||||||||||||||
| Other revenues | 195 | 184 | 386 | 365 | ||||||||||||||||||||||||||||
| Other expenses | 469 | 421 | 919 | 833 | ||||||||||||||||||||||||||||
| Adjusted pretax income (non-GAAP) | $ | 231 | $ | 163 | $ | 507 | $ | 396 | ||||||||||||||||||||||||
Selected Financial Statistics (a) | ||||||||||||||||||||||||||||||||
| Total finance receivables: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 23,901 | $ | 22,428 | $ | 23,901 | $ | 22,428 | ||||||||||||||||||||||||
| Average net receivables | $ | 23,634 | $ | 22,210 | $ | 23,564 | $ | 21,738 | ||||||||||||||||||||||||
Gross charge-off ratio (b) | 9.05 | % | 9.82 | % | 9.37 | % | 9.97 | % | ||||||||||||||||||||||||
| Recovery ratio | (1.48) | % | (1.37) | % | (1.50) | % | (1.41) | % | ||||||||||||||||||||||||
Net charge-off ratio (b) | 7.57 | % | 8.45 | % | 7.87 | % | 8.55 | % | ||||||||||||||||||||||||
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| At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| (dollars in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
Selected Financial Statistics, continued (a) | ||||||||||||||||||||||||||||||||
| Personal loans: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 20,814 | $ | 20,073 | $ | 20,814 | $ | 20,073 | ||||||||||||||||||||||||
| Origination volume | $ | 3,534 | $ | 3,293 | $ | 6,213 | $ | 5,647 | ||||||||||||||||||||||||
| Number of accounts | 2,340,944 | 2,326,811 | 2,340,944 | 2,326,811 | ||||||||||||||||||||||||||||
| Number of accounts originated | 328,162 | 312,955 | 576,247 | 543,805 | ||||||||||||||||||||||||||||
Auto finance: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 2,335 | $ | 1,889 | $ | 2,335 | $ | 1,889 | ||||||||||||||||||||||||
| Origination volume | $ | 373 | $ | 290 | $ | 716 | $ | 458 | ||||||||||||||||||||||||
| Number of accounts | 138,405 | 113,456 | 138,405 | 113,456 | ||||||||||||||||||||||||||||
| Number of accounts originated | 16,645 | 14,421 | 32,402 | 24,780 | ||||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 23,149 | $ | 21,962 | $ | 23,149 | $ | 21,962 | ||||||||||||||||||||||||
| Yield | 22.58 | % | 21.91 | % | 22.48 | % | 22.01 | % | ||||||||||||||||||||||||
| Origination volume | $ | 3,907 | $ | 3,582 | $ | 6,929 | $ | 6,105 | ||||||||||||||||||||||||
| Number of accounts | 2,479,349 | 2,440,267 | 2,479,349 | 2,440,267 | ||||||||||||||||||||||||||||
| Number of accounts originated | 344,807 | 327,376 | 608,649 | 568,585 | ||||||||||||||||||||||||||||
Net charge-off ratio (b) | 7.19 | % | 8.29 | % | 7.51 | % | 8.43 | % | ||||||||||||||||||||||||
| 30-89 Delinquency ratio | 3.05 | % | 3.13 | % | 3.05 | % | 3.13 | % | ||||||||||||||||||||||||
| Credit cards: | ||||||||||||||||||||||||||||||||
| Net finance receivables | $ | 752 | $ | 466 | $ | 752 | $ | 466 | ||||||||||||||||||||||||
| Purchase volume | $ | 305 | $ | 218 | $ | 554 | $ | 386 | ||||||||||||||||||||||||
| Number of open accounts | 920,311 | 612,292 | 920,311 | 612,292 | ||||||||||||||||||||||||||||
(a) See “Glossary” at the beginning of this report for formulas and definitions of our key performance ratios.
(b) The calculations for the three and six months ended June 30, 2024 have been adjusted for policy alignment associated with the Foursight Acquisition. See Note 4 of the Notes to the Consolidated Financial Statements in Part II - Item 8 of our Annual Report for additional information.
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Comparison of Adjusted Pretax Income for Three and Six Months Ended June 30, 2025 and 2024
Interest income increased $123 million or 10% and $253 million or 11% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 due to growth in average net receivables and an increase in yield.
Interest expense increased $22 million or 7% and $56 million or 10% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 due to an increase in average debt to support our receivables growth and a higher average cost of funds.
Provision for finance receivable losses remained consistent for the three months ended June 30, 2025 when compared to the same period in 2024 due to lower net charge-offs, partially offset by growth in receivables in the current period.
Provision for finance receivable losses increased $21 million or 2% for the six months ended June 30, 2025 when compared to the same period in 2024 due to growth in receivables, partially offset by lower net charge-offs in the current period.
Other revenues increased $11 million or 6% and $21 million or 6% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 due to a higher gain on sales of finance receivables and an increase in credit card revenue from growth in receivables, partially offset by a decrease in investment revenue due to lower average corporate cash balances.
Other expenses increased $48 million or 11% and $86 million or 10% for the three and six months ended June 30, 2025 when compared to the same periods in 2024 driven by increases in salaries and benefits expense and general operating expenses due to growth in receivables and our strategic investments in the business.
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| Credit Quality | ||
FINANCE RECEIVABLES
Our net finance receivables, consisting of consumer loans and credit cards, were $23.9 billion at June 30, 2025 and $23.6 billion at December 31, 2024. We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. Our branch and central operation team members work closely with customers as necessary and offer a variety of borrower assistance programs to help support our customers.
DELINQUENCY
We monitor delinquency trends to evaluate the risk of future credit losses and employ advanced analytical tools to manage performance. Team members are actively engaged in collection activities throughout the early stages of delinquency. We closely track and report the percentage of receivables that are contractually 30-89 days past due as a benchmark of portfolio quality, collections effectiveness, and as a strong indicator of losses in coming quarters.
When consumer loans are contractually 60 days past due, we consider these accounts to be at an increased risk for loss and move collection of these accounts to our central collection operations. Use of our central operations teams for managing late-stage delinquency allows us to apply more advanced collection techniques and tools to drive credit performance and operational efficiencies.
We consider our consumer loans to be nonperforming at 90 days contractually past due, at which point we stop accruing finance charges and reverse finance charges previously accrued. For credit cards, we accrue finance charges and fees until charge-off at 180 days contractually past due, at which point we reverse finance charges and fees previously accrued.
The delinquency information for net finance receivables on a Segment Accounting Basis was as follows:
| Consumer and Insurance | ||||||||||||||||||||||||||||||||
| (dollars in millions) | Consumer Loans | Credit Cards | ||||||||||||||||||||||||||||||
| June 30, 2025 | ||||||||||||||||||||||||||||||||
Current | $ | 21,952 | $ | 665 | ||||||||||||||||||||||||||||
30-89 days past due | 706 | 38 | ||||||||||||||||||||||||||||||
90+ days past due | 491 | 49 | ||||||||||||||||||||||||||||||
Total net finance receivables | $ | 23,149 | $ | 752 | ||||||||||||||||||||||||||||
Delinquency ratio | ||||||||||||||||||||||||||||||||
30-89 days past due | 3.05 | % | 5.01 | % | ||||||||||||||||||||||||||||
| 30+ days past due | 5.17 | % | 11.58 | % | ||||||||||||||||||||||||||||
| 90+ days past due | 2.12 | % | 6.57 | % | ||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
Current | $ | 21,633 | $ | 558 | ||||||||||||||||||||||||||||
| 30-89 days past due | 743 | 37 | ||||||||||||||||||||||||||||||
90+ days past due | 579 | 48 | ||||||||||||||||||||||||||||||
Total net finance receivables | $ | 22,955 | $ | 643 | ||||||||||||||||||||||||||||
Delinquency ratio | ||||||||||||||||||||||||||||||||
30-89 days past due | 3.24 | % | 5.78 | % | ||||||||||||||||||||||||||||
| 30+ days past due | 5.76 | % | 13.26 | % | ||||||||||||||||||||||||||||
| 90+ days past due | 2.52 | % | 7.47 | % | ||||||||||||||||||||||||||||
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ALLOWANCE FOR FINANCE RECEIVABLE LOSSES
We estimate and record an allowance for finance receivable losses to cover the expected lifetime credit losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions.
Our methodology to estimate expected credit losses uses recent macroeconomic forecasts, which include forecasts for unemployment. We leverage projections from various industry leading providers. We also consider inflationary pressures, consumer confidence levels, and elevated interest rates that may continue to impact the economic outlook. At June 30, 2025, our economic forecast used a reasonable and supportable period of 12 months. We may experience further changes to the macroeconomic assumptions within our forecast, as well as changes to our loan loss performance outlook, both of which could lead to further changes in our allowance for finance receivable losses, allowance ratio, and provision for finance receivable losses.
Changes in our allowance for finance receivable losses were as follows:
| (dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | Consolidated Total | |||||||||||||||||||||||||||||
Consumer Loans | Credit Cards | |||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,541 | $ | 152 | $ | (5) | $ | 2,688 | ||||||||||||||||||||||||
Provision for finance receivable losses | 460 | 51 | — | 511 | ||||||||||||||||||||||||||||
Charge-offs | (496) | (37) | 1 | (532) | ||||||||||||||||||||||||||||
Recoveries | 85 | 2 | — | 87 | ||||||||||||||||||||||||||||
Balance at end of period | $ | 2,590 | $ | 168 | $ | (4) | $ | 2,754 | ||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,376 | $ | 78 | $ | — | $ | 2,454 | ||||||||||||||||||||||||
Provision for finance receivable losses | 473 | 42 | 60 | 575 | ||||||||||||||||||||||||||||
Charge-offs | (553) | (18) | — | (571) | ||||||||||||||||||||||||||||
Recoveries | 75 | — | — | 75 | ||||||||||||||||||||||||||||
Other * | 98 | — | (67) | 31 | ||||||||||||||||||||||||||||
Balance at end of period | $ | 2,469 | $ | 102 | $ | (7) | $ | 2,564 | ||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,572 | $ | 138 | $ | (5) | $ | 2,705 | ||||||||||||||||||||||||
Provision for finance receivable losses | 869 | 98 | — | 967 | ||||||||||||||||||||||||||||
Charge-offs | (1,022) | (73) | 2 | (1,093) | ||||||||||||||||||||||||||||
Recoveries | 171 | 5 | (1) | 175 | ||||||||||||||||||||||||||||
Balance at end of period | $ | 2,590 | $ | 168 | $ | (4) | $ | 2,754 | ||||||||||||||||||||||||
Net finance receivables | $ | 23,149 | $ | 752 | $ | (31) | $ | 23,870 | ||||||||||||||||||||||||
Allowance ratio | 11.19 | % | 22.28 | % | N/A | 11.54 | % | |||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | 2,415 | $ | 65 | $ | — | $ | 2,480 | ||||||||||||||||||||||||
Provision for finance receivable losses | 879 | 67 | 60 | 1,006 | ||||||||||||||||||||||||||||
Charge-offs | (1,075) | (31) | — | (1,106) | ||||||||||||||||||||||||||||
Recoveries | 152 | 1 | — | 153 | ||||||||||||||||||||||||||||
Other * | 98 | — | (67) | 31 | ||||||||||||||||||||||||||||
Balance at end of period | $ | 2,469 | $ | 102 | $ | (7) | $ | 2,564 | ||||||||||||||||||||||||
Net finance receivables | $ | 21,962 | $ | 466 | $ | (63) | $ | 22,365 | ||||||||||||||||||||||||
Allowance ratio | 11.24 | % | 21.95 | % | N/A | 11.47 | % | |||||||||||||||||||||||||
* Represents allowance for finance receivable losses recognized on PCD loans acquired in the Foursight Acquisition.
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The current delinquency status of our finance receivable portfolio, inclusive of recent borrower performance and loss performance, volume of our modified finance receivable activity, level and recoverability of collateral securing our finance receivable portfolio, portfolio mix, and the reasonable and supportable forecast of economic conditions are the primary drivers that can cause fluctuations in our allowance ratio from period to period. We monitor the allowance ratio to ensure we have a sufficient level of allowance for finance receivable losses based on the estimated lifetime expected credit losses in our finance receivable portfolio. The allowance for finance receivable losses as a percentage of net finance receivables increased slightly from the prior year period primarily due to the change in portfolio mix. See Note 4 of the Notes to the Condensed Consolidated Financial Statements included in this report for more information about the changes in the allowance for finance receivable losses.
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| Liquidity and Capital Resources | ||
SOURCES AND USES OF FUNDS
We finance the majority of our operating liquidity and capital needs through a combination of cash flows from operations, secured debt, unsecured debt, borrowings from revolving conduit facilities and credit card revolving VFN facilities, whole loan sales, and equity. We may also utilize other sources in the future. As a holding company, all of the funds generated from our operations are earned by our operating subsidiaries. Our operating subsidiaries’ primary cash needs relate to funding our lending activities, our debt service obligations, our operating expenses, payment of insurance claims, and supporting strategic initiatives.
We have previously purchased portions of our unsecured indebtedness, and we may elect to purchase additional portions of our unsecured indebtedness or securitized borrowings in the future. Future purchases may be made through the open market, privately negotiated transactions with third parties, or pursuant to one or more tender or exchange offers, all of which are subject to terms, prices, and consideration we may determine at our discretion.
During the six months ended June 30, 2025, OMH generated net income of $380 million. OMH’s net cash inflow from operating and investing activities totaled $95 million for the six months ended June 30, 2025. At June 30, 2025, our scheduled interest payments for the remainder of 2025 totaled $291 million and there were no scheduled principal payments for 2025 on our existing unsecured debt. As of June 30, 2025, we had $9.7 billion of unencumbered receivables.
Based on our estimates and considering the risks and uncertainties of our plans, we believe that we will have adequate liquidity to finance and operate our businesses and repay our obligations as they become due.
OMFC’s Issuances and Repurchases of Unsecured Debt
On March 13, 2025, OMFC issued a total of $600 million aggregate principal amount of 6.750% Senior Notes due 2032 under the Base Indenture, as supplemented by the Twentieth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis.
On June 11, 2025, OMFC issued a total of $800 million aggregate principal amount of 7.125% Senior Notes due 2032 under the Base Indenture, as supplemented by the Twenty-First Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis.
On June 27, 2025, OMFC paid a net aggregate amount of $822 million, inclusive of accrued interest and premium, to complete a partial redemption of its 7.125% Senior Notes due 2026.
From time to time we may purchase portions of our unsecured indebtedness through the open market. During the six months ended June 30, 2025, we repurchased $280 million of our unsecured notes.
OMFC’s Unsecured Corporate Revolver
At June 30, 2025, the borrowing capacity of our corporate revolver was $1.1 billion.
Securitizations, Revolving Conduit Facilities, and Credit Card Revolving VFN Facilities
During the six months ended June 30, 2025, we completed two new consumer loan securitization (ODART 2025-1 and OMFIT 2025-1, see “Securitized Borrowings” below) and redeemed two consumer loan securitizations (OMFIT 2018-2 and FCRT 2021-2 ). During the six months ended June 30, 2025, we entered into no new revolving conduit facilities. At June 30, 2025, the borrowing capacity of our revolving conduit facilities was $6.0 billion. At June 30, 2025, we had $13.9 billion of consumer loan gross finance receivables pledged as collateral for our securitizations, revolving conduit facilities, and private secured term funding facility.
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During the six months ended June 30, 2025, we entered into no new credit card revolving VFN facilities. On January 18, 2025, the borrowing capacity of OneMain Financial Credit Card Trust – Series 2024-VFN2 increased to $250 million. At June 30, 2025, the borrowing capacity of our credit card revolving VFN facilities was $400 million. At June 30, 2025, we had $432 million of credit card principal balances held in OneMain Financial Credit Card Trust (“OMFCT”) for our credit card revolving VFN facilities.
Private Secured Term Funding
On June 16, 2025, we terminated a private secured term funding facility with a maximum borrowing capacity of $375 million. At June 30, 2025, the maximum borrowing capacity of $350 million was outstanding under the remaining private secured term funding facility. Principal payments on any outstanding balances are not required until after October 2027 followed by a subsequent amortization period, which upon expiration the outstanding principal is due and payable.
See Notes 6 and 7 of the Notes to the Condensed Consolidated Financial Statements included in this report for further information on our long-term debt, securitization transactions, private secured term funding, revolving conduit facilities, and credit card revolving VFN facilities.
Credit Ratings
Our credit ratings impact our ability to access capital markets and our borrowing costs. Rating agencies base their ratings on numerous factors, including liquidity, capital adequacy, asset quality, quality of earnings, and the probability of systemic support. Significant changes in these factors could result in different ratings.
The table below outlines OMFC’s long-term corporate debt ratings and outlook by rating agencies:
As of June 30, 2025 | Rating | Outlook | ||||||||||||
| S&P | BB | Stable | ||||||||||||
| Moody’s | Ba2 | Stable | ||||||||||||
| KBRA | BB+ | Stable | ||||||||||||
Currently, no other entity has a corporate debt rating, though they may be rated in the future.
Stock Repurchased
During the six months ended June 30, 2025, OMH repurchased 782,773 shares of its common stock through its stock repurchase program for an aggregate total of $37 million, including commissions and fees. As of June 30, 2025, OMH held a total of 16,803,289 shares of treasury stock.
For additional information regarding the shares repurchased, see Item 2. Unregistered Sales of Equity Securities and Use of Proceeds of Part II included in this report.
Cash Dividend to OMH’s Common Stockholders
As of June 30, 2025, the dividend declarations for the current year by the Board were as follows:
| Declaration Date | Record Date | Payment Date | Dividend Per Share | Amount Paid | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| January 31, 2025 | February 12, 2025 | February 20, 2025 | $ | 1.04 | $ | 124 | |||||||||||||||||||||||
| April 29, 2025 | May 9, 2025 | May 16, 2025 | 1.04 | 124 | |||||||||||||||||||||||||
| Total | $ | 2.08 | $ | 248 | |||||||||||||||||||||||||
To provide funding for the dividend, OMFC paid dividends of $246 million to OMH during the six months ended June 30, 2025.
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On July 25, 2025, OMH declared a dividend of $1.04 per share payable on August 13, 2025 to record holders of OMH’s common stock as of the close of business on August 4, 2025. To provide funding for the OMH dividend, the OMFC Board of Directors authorized a dividend in the amount of up to $125 million payable on or after August 6, 2025.
While OMH intends to pay its minimum quarterly dividend, currently $1.04 per share, for the foreseeable future, all subsequent dividends will be reviewed and declared at the discretion of the Board and will depend on many factors, including our financial condition, earnings, cash flows, capital requirements, level of indebtedness, statutory and contractual restrictions applicable to the payment of dividends, and other considerations that the Board deems relevant. OMH’s dividend payments may change from time to time, and the Board may choose not to continue to declare dividends in the future. See our “Dividend Policy” in Part II - Item 5 included in our Annual Report for further information.
Whole Loan Sale Transactions
We have whole loan sale flow agreements with third parties, with current terms of less than one year, in which we agreed to sell a remaining total of $450 million gross receivables of newly originated unsecured personal loans along with any associated accrued interest.
During the three and six months ended June 30, 2025, we sold a total of $260 million and $514 million of gross finance receivables, respectively, compared to $193 million and $303 million during the same periods in 2024. See Note 3 of the Notes to the Condensed Consolidated Financial Statements in this report for further information on the whole loan sale transactions.
LIQUIDITY
OMH’s Operating Activities
Net cash provided by operations of $1.4 billion for the six months ended June 30, 2025 reflected net income of $380 million, the impact of non-cash items including provision for finance receivable losses of $967 million, and an unfavorable change in working capital of $58 million. Net cash provided by operations of $1.3 billion for the six months ended June 30, 2024 reflected net income of $225 million, the impact of non-cash items including provision for finance receivable losses of $1.0 billion, and an unfavorable change in working capital of $101 million.
OMH’s Investing Activities
Net cash used for investing activities of $1.3 billion for the six months ended June 30, 2025 was due to net principal originations and purchases of finance receivables and purchases of available-for-sale and other securities, partially offset by the proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale and other securities. Net cash used for investing activities of $1.2 billion for the six months ended June 30, 2024 was due to net principal originations purchases of finance receivables and purchases of available-for-sale and other securities, partially offset by the proceeds from sales of finance receivables and calls, sales, and maturities of available-for-sale and other securities.
OMH’s Financing Activities
Net cash provided by financing activities of $274 million for the six months ended June 30, 2025 was due to the issuances and borrowings of long-term debt, partially offset by repayments and repurchases of long-term debt and cash dividends paid. Net cash used for financing activities of $290 million for the six months ended June 30, 2024 was due to repayments and repurchases of long-term debt and cash dividends paid, partially offset by the issuances and borrowings of long-term debt.
OMH’s Cash and Investments
At June 30, 2025, we had $769 million of cash and cash equivalents, which included $185 million of cash and cash equivalents held at our regulated insurance subsidiaries or for other operating activities that is unavailable for general corporate purposes.
At June 30, 2025, we had $1.7 billion of investment securities, which are all held as part of our insurance operations and are unavailable for general corporate purposes.
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Liquidity Risks and Strategies
OMFC’s credit ratings are non-investment grade, which has a significant impact on our cost and access to capital. This, in turn, can negatively affect our ability to manage our liquidity and our ability or cost to refinance our indebtedness. There are numerous risks to our financial results, liquidity, capital raising, and debt refinancing plans, some of which may not be quantified in our current liquidity forecasts. These risks are further described in our “Liquidity and Capital Resources” of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II - Item 7 included in our Annual Report.
The principal factors that could decrease our liquidity are customer delinquencies and defaults, a decline in customer prepayments, rising interest rates, and a prolonged inability to adequately access capital market funding. We intend to support our liquidity position by utilizing strategies that are further described in our “Liquidity and Capital Resources” of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II - Item 7 included in our Annual Report. However, it is possible that the actual outcome of one or more of our plans could be materially different than expected or that one or more of our significant judgments or estimates could prove to be materially incorrect.
OUR INSURANCE SUBSIDIARIES
Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends. AHL and Triton did not pay dividends during the six months ended June 30, 2025 and 2024. See Note 11 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for further information on these state restrictions and the dividends paid by our insurance subsidiaries in 2024.
OUR DEBT AGREEMENTS
The debt agreements which OMFC and its subsidiaries are a party to include customary terms and conditions, including covenants and representations and warranties. See Note 9 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report for more information on the restrictive covenants under OMFC’s debt agreements, as well as the guarantees of OMFC’s long-term debt.
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Securitized Borrowings
We execute private securitizations under Rule 144A of the Securities Act of 1933, as amended. As of June 30, 2025, our structured financings consisted of the following:
| (dollars in millions) | Issue Amount (a) | Initial Collateral Balance | Current Note Amounts Outstanding (a) | Current Collateral Balance (b) | Current Weighted Average Interest Rate | Original Revolving Period | ||||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2019-2 | 900 | 947 | 900 | 995 | 3.30 | % | 7 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2019-A | 789 | 892 | 750 | 892 | 3.78 | % | 7 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2020-2 | 1,000 | 1,053 | 1,000 | 1,053 | 2.03 | % | 5 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2021-1 | 850 | 904 | 850 | 904 | 2.57 | % | 5 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2022-S1 | 600 | 652 | 539 | 558 | 4.33 | % | 3 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2022-2 | 1,000 | 1,099 | 594 | 692 | 5.37 | % | 2 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2022-3 | 979 | 1,090 | 517 | 810 | 6.03 | % | 2 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2023-1 | 825 | 920 | 825 | 920 | 5.82 | % | 5 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2023-2 | 1,400 | 1,566 | 1,400 | 1,566 | 6.11 | % | 3 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2024-1 | 1,100 | 1,222 | 1,100 | 1,222 | 5.99 | % | 7 years | |||||||||||||||||||||||||||||||||||||||||||
| OMFIT 2025-1 | 1,000 | 1,124 | 1,000 | 1,124 | 4.97 | % | 3 years | |||||||||||||||||||||||||||||||||||||||||||
| ODART 2019-1 | 737 | 750 | 276 | 309 | 4.04 | % | 5 years | |||||||||||||||||||||||||||||||||||||||||||
| ODART 2021-1 | 1,000 | 1,053 | 314 | 322 | 1.22 | % | 2 years | |||||||||||||||||||||||||||||||||||||||||||
| ODART 2022-1 | 600 | 632 | 308 | 314 | 5.10 | % | 2 years | |||||||||||||||||||||||||||||||||||||||||||
| ODART 2023-1 | 750 | 792 | 750 | 792 | 5.63 | % | 3 years | |||||||||||||||||||||||||||||||||||||||||||
| ODART 2025-1 | 900 | 926 | 900 | 926 | 5.48 | % | 5 years | |||||||||||||||||||||||||||||||||||||||||||
| FCRT 2022-1 | 293 | 294 | 54 | 52 | 3.27 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
| FCRT 2022-2 | 215 | 233 | 38 | 57 | 6.35 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
| FCRT 2023-1 | 182 | 199 | 57 | 74 | 6.06 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
| FCRT 2023-2 | 200 | 208 | 88 | 93 | 6.61 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
| FCRT 2024-1 | 210 | 214 | 112 | 116 | 6.23 | % | N/A | |||||||||||||||||||||||||||||||||||||||||||
| Total securitizations | $ | 15,530 | $ | 16,770 | $ | 12,372 | $ | 13,791 | ||||||||||||||||||||||||||||||||||||||||||
(a) Issue Amount includes the retained interest amounts as applicable and the Current Note Amounts Outstanding balances reflect pay-downs subsequent to note issuance and exclude retained interest amounts.
(b) Inclusive of in-process replenishments of collateral for securitized borrowings in a revolving status as of June 30, 2025.
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Revolving Conduit Facilities
We had access to 17 revolving conduit facilities with a total borrowing capacity of $6.0 billion as of June 30, 2025:
| (dollars in millions) | Advance Maximum Balance | Amount Drawn | ||||||||||||||||||||||||
| OneMain Financial Funding VII, LLC | $ | 600 | $ | — | ||||||||||||||||||||||
| OneMain Financial Auto Funding I, LLC | 550 | — | ||||||||||||||||||||||||
| Hudson River Funding, LLC | 500 | — | ||||||||||||||||||||||||
| OneMain Financial Funding XI, LLC | 425 | — | ||||||||||||||||||||||||
| OneMain Financial Funding VIII, LLC | 400 | — | ||||||||||||||||||||||||
| River Thames Funding, LLC | 400 | — | ||||||||||||||||||||||||
| OneMain Financial Funding X, LLC | 400 | — | ||||||||||||||||||||||||
| OneMain Financial Funding XII, LLC | 400 | — | ||||||||||||||||||||||||
| Mystic River Funding, LLC | 350 | — | ||||||||||||||||||||||||
| Thayer Brook Funding, LLC | 350 | 1 | ||||||||||||||||||||||||
| Columbia River Funding, LLC | 350 | — | ||||||||||||||||||||||||
| Hubbard River Funding, LLC | 250 | — | ||||||||||||||||||||||||
| New River Funding Trust | 250 | — | ||||||||||||||||||||||||
| St. Lawrence River Funding, LLC | 250 | — | ||||||||||||||||||||||||
| OneMain Foursight Auto I, LLC | 175 | — | ||||||||||||||||||||||||
| OneMain Foursight Auto II, LLC | 175 | — | ||||||||||||||||||||||||
| OneMain Foursight Auto III, LLC | 175 | — | ||||||||||||||||||||||||
| Total | $ | 6,000 | $ | 1 | ||||||||||||||||||||||
Credit Card Revolving VFN Facilities
We also had access to two credit card revolving VFN facilities with a total borrowing capacity of $400 million as of June 30, 2025:
| (dollars in millions) | Advance Maximum Balance | Amount Drawn | ||||||||||||
| OneMain Financial Credit Card Trust – Series 2024-VFN1 | $ | 150 | $ | — | ||||||||||
| OneMain Financial Credit Card Trust – Series 2024-VFN2 | 250 | — | ||||||||||||
Total | $ | 400 | $ | — | ||||||||||
OFF-BALANCE SHEET ARRANGEMENTS
We have no material off-balance sheet arrangements as defined by SEC rules, and we had no material off-balance sheet exposure to losses associated with unconsolidated VIEs at June 30, 2025 or December 31, 2024.
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| Critical Accounting Policies and Estimates | ||
We describe our significant accounting policies used in the preparation of our condensed consolidated financial statements in Note 2 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our Annual Report. We consider the allowance for finance receivable losses to be a critical accounting policy because it involves critical accounting estimates and a significant degree of management judgment.
There have been no material changes to our critical accounting policies or to our methodologies for deriving critical accounting estimates during the six months ended June 30, 2025.
| Recent Accounting Pronouncements | ||
See Note 2 of the Notes to the Condensed Consolidated Financial Statements included in this report for discussion of recently issued accounting pronouncements.
| Seasonality | ||
Our consumer loan volume and demand are generally lowest during the first quarter of the year following the holiday season and as a result of tax refunds, and then increases through the end of the year. Delinquencies follow similar trends, being generally lower during the first quarter of the year and rising throughout the remainder of the year. These seasonal trends contribute to fluctuations in our operating results and cash needs throughout the year.
| Item 3. Quantitative and Qualitative Disclosures About Market Risk. | ||
There have been no material changes to our market risk previously disclosed in Part II - Item 7A included in our Annual Report.
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| Item 4. Controls and Procedures. | ||
CONTROLS AND PROCEDURES OF ONEMAIN HOLDINGS, INC.
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed to provide reasonable assurance that the information OMH is required to disclose in reports that OMH files or submits under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
As of June 30, 2025, OMH carried out an evaluation of the effectiveness of its disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. This evaluation was conducted under the supervision of, and with the participation of OMH’s management, including the Chief Executive Officer and the Chief Financial Officer. Based on the evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that OMH’s disclosure controls and procedures were effective as of June 30, 2025 to provide the reasonable assurance described above.
Changes in Internal Control over Financial Reporting
There were no changes in OMH’s internal control over financial reporting during the second quarter of 2025 that have materially affected, or are reasonably likely to materially affect, OMH’s internal control over financial reporting.
CONTROLS AND PROCEDURES OF ONEMAIN FINANCE CORPORATION
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed to provide reasonable assurance that the information OMFC is required to disclose in reports that OMFC files or submits under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
As of June 30, 2025, OMFC carried out an evaluation of the effectiveness of its disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. This evaluation was conducted under the supervision of, and with the participation of OMFC’s management, including the Chief Executive Officer and the Chief Financial Officer. Based on the evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that OMFC’s disclosure controls and procedures were effective as of June 30, 2025 to provide the reasonable assurance described above.
Changes in Internal Control over Financial Reporting
There were no changes in OMFC’s internal control over financial reporting during the second quarter of 2025 that have materially affected, or are reasonably likely to materially affect, OMFC’s internal control over financial reporting.
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PART II - OTHER INFORMATION
| Item 1. Legal Proceedings. | ||
See Note 12 of the Notes to the Condensed Consolidated Financial Statements included in this report.
| Item 1A. Risk Factors. | ||
In addition to the other information set forth in this report, you should consider the factors discussed in Part I - Item 1A. “Risk Factors” in our Annual Report, which could materially affect our business, financial condition, or future results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | ||
There were no unregistered sales of our common stock during the period covered by this Quarterly Report on Form 10-Q.
Issuer Purchases of Equity Securities
The following table presents information regarding repurchases of our common stock, excluding commissions and fees, during the quarter ended June 30, 2025, based on settlement date:
| Period | Total Number of Shares Purchased | Average Price paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) | Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (a) | ||||||||||||||||||||||
| April 1 - April 30 | 319,274 | $ | 43.85 | 319,274 | $ | 595,784,783 | ||||||||||||||||||||
| May 1 - May 31 | 91,627 | 49.49 | 91,627 | 591,249,714 | ||||||||||||||||||||||
| June 1 - June 30 | 48,696 | 53.40 | 48,696 | 588,649,410 | ||||||||||||||||||||||
| Total | 459,597 | $ | 45.99 | 459,597 | ||||||||||||||||||||||
(a) On February 2, 2022, the Board authorized a $1 billion stock repurchase program, excluding fees, commissions, and other expenses related to the repurchases, originally scheduled to expire on December 31, 2024. On October 16, 2024, the Board approved an extension of the repurchase program to December 31, 2026. The timing, number and share price of any additional shares repurchased will be determined by OMH based on its evaluation of market conditions and other factors and will be made in accordance with applicable securities laws in either the open market or in privately negotiated transactions. OMH is not obligated to purchase any shares under the program, which may be modified, suspended or discontinued at any time.
| Item 3. Defaults Upon Senior Securities. | ||
None.
| Item 4. Mine Safety Disclosures. | ||
None.
| Item 5. Other Information. | ||
During the quarter ended June 30, 2025, no director or officer of the Company adopted terminated
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| Item 6. Exhibit Index. | ||
| Exhibit Number | Description | |||||||
3.1 | Amended and Restated Certificate of Incorporation of OneMain Holdings, Inc. Incorporated by reference to Exhibit 3.1 to OMH’s Current Report on Form 8-K filed on June 10, 2025. | |||||||
4.1 | Twenty-First Supplemental Indenture relating to the Notes, dated as of June 11, 2025, among OneMain Finance Corporation, OneMain Holdings, Inc. and HSBC Bank USA, National Association, as series trustee (including the form of 7.125% Senior Notes due 2032 included therein as Exhibit A). Incorporated by reference to Exhibit 4.2 to OMH’s Current Report on Form 8-K filed on June 11, 2025. | |||||||
31.1 | Rule 13a-14(a)/15d-14(a) Certifications of Principal Executive Officer of OneMain Holdings, Inc. | |||||||
31.2 | Rule 13a-14(a)/15d-14(a) Certifications of the Principal Financial Officer of OneMain Holdings, Inc. | |||||||
31.3 | Rule 13a-14(a)/15d-14(a) Certifications of the Principal Executive Officer of OneMain Finance Corporation | |||||||
31.4 | Rule 13a-14(a)/15d-14(a) Certifications of the Principal Financial Officer of OneMain Finance Corporation | |||||||
32.1 | Section 1350 Certifications of OneMain Holdings, Inc. | |||||||
32.2 | Section 1350 Certifications of OneMain Finance Corporation | |||||||
| 101 | Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Shareholder’s Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements. | |||||||
| 104 | Cover Page Interactive Data File in Inline XBRL format (Included in Exhibit 101). | |||||||
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| OMH Signature | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| ONEMAIN HOLDINGS, INC. | ||||||||||||||
| (Registrant) | ||||||||||||||
| Date: | July 29, 2025 | By: | /s/ Jeannette E. Osterhout | |||||||||||
Jeannette E. Osterhout | ||||||||||||||
| Executive Vice President and Chief Financial Officer | ||||||||||||||
(Duly Authorized Officer and Principal Financial Officer) | ||||||||||||||
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| OMFC Signature | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| ONEMAIN FINANCE CORPORATION | ||||||||||||||
| (Registrant) | ||||||||||||||
| Date: | July 29, 2025 | By: | /s/ Matthew W. Vaughan | |||||||||||
| Matthew W. Vaughan | ||||||||||||||
| Vice President - Senior Managing Director and Chief Financial Officer | ||||||||||||||
(Duly Authorized Officer and Principal Financial Officer) | ||||||||||||||
69
FAQ
How much did OneMain Holdings (OMF) earn in Q2 2025?
OMF reported $167 million in net income, equal to $1.40 diluted EPS.
What drove the year-over-year earnings improvement for OMF?
Higher net interest income (+$100 m) and an $64 m reduction in loss provisions were the primary drivers.
How did loan balances change during the first half of 2025?
Net finance receivables increased to $23.9 billion, with auto loans up 10.8% and credit-card receivables up 17%.
What is OneMain’s current dividend payout?
The board declared a $1.04 per share quarterly dividend, matching the prior year.
What is the size of OneMain’s allowance for finance receivable losses?
The allowance stands at $2.75 billion, about 11.5% of gross finance receivables.
How leveraged is OneMain after Q2 2025?
Long-term debt totals $22.1 billion, approximately 6.6× shareholders’ equity.
Onemain Hldgs Inc
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Jul 30, 2025
[8-K] OneMain Holdings, Inc. Reports Material Event
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Jul 25, 2025
[8-K] OneMain Holdings, Inc. Reports Material Event
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