OneMain (NYSE:OMF) Posts Earnings Results, Beats Expectations By $0.05 EPS

OneMain (NYSE:OMF) issued its quarterly earnings results on Wednesday. The financial services provider reported $1.31 EPS for the quarter, topping the consensus estimate of $1.26 by $0.05, FiscalAI reports. The business had revenue of $1.09 billion for the quarter, compared to analysts’ expectations of $1.28 billion. OneMain had a net margin of 13.92% and a return on equity of 23.48%. The company’s quarterly revenue was up 6.7% compared to the same quarter last year. During the same quarter last year, the company posted $1.45 earnings per share.

Here are the key takeaways from OneMain’s conference call:

• Receivables and originations grew strongly: Managed receivables increased 7% year over year to $26.9 billion, while second-quarter originations rose 10% to $4.3 billion, supported by growth across personal loans, auto finance, and credit cards.
• Credit trends improved: Early-stage 30–89 day delinquency declined seven basis points year over year, and management expects losses to improve significantly in the second half of 2026 and into 2027. Credit card net charge-offs also fell 186 basis points year over year to 17.7%.
• Auto and credit card expansion continued: Auto originations increased 19% year over year, while credit card accounts grew 44% and purchase volume rose 57%; marginal operating costs per card account declined about 25% year over year.
• Profitability faced higher provision pressure: Adjusted EPS fell to $1.31 from $1.45 a year earlier as higher revenue was offset by increased loss provisions and reserve building. The overall reserve ratio is expected to rise modestly to about 11.7% as the higher-reserve credit card portfolio grows.
• Funding and capital returns remained supportive: OneMain raised $1.1 billion in three-year secured financing at approximately 5.1% pricing and repurchased $137 million of stock year to date, while reiterating its 2026 guidance for 6%–9% receivables growth, 7.4%–7.9% C&I net charge-offs, and an operating-expense ratio near 6.6%.

OneMain Price Performance

Shares of OMF stock traded down $0.73 during trading hours on Friday, reaching $62.67. 99,560 shares of the company were exchanged, compared to its average volume of 1,340,539. The company has a market cap of $7.24 billion, a price-to-earnings ratio of 9.45, a P/E/G ratio of 0.48 and a beta of 1.22. OneMain has a fifty-two week low of $45.78 and a fifty-two week high of $71.93. The stock’s fifty day moving average is $58.16 and its two-hundred day moving average is $57.66.

OneMain Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Monday, August 10th will be issued a $1.05 dividend. This represents a $4.20 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date of this dividend is Monday, August 10th. OneMain’s payout ratio is currently 63.25%.

Key Stories Impacting OneMain

Here are the key news stories impacting OneMain this week:

• Positive Sentiment: OneMain reported second-quarter EPS of $1.31, meeting consensus estimates, while net interest income and other revenue increased year over year. Strong receivables growth also indicated continued demand for its lending products, helping support the stock. OneMain Holdings Q2 Earnings in Line, Stock Gains as NII Rises Y/Y
• Positive Sentiment: Truist raised its price target from $70 to $71 and maintained a Buy rating, while Citizens JMP increased its target from $68 to $70 with a Market Outperform rating. The revisions imply meaningful upside from recent trading levels. Analyst Price-Target Revisions
• Positive Sentiment: OneMain declared a quarterly dividend of $1.05 per share, payable August 14 to shareholders of record August 10. The dividend represents an annualized yield of approximately 6.6%, strengthening the stock’s appeal to income-focused investors.
• Neutral Sentiment: Northland Securities’ forecasts were mixed: estimates increased modestly for the third and fourth quarters of 2027, but the firm lowered its full-year 2026 EPS forecast to $7.10 from $7.39 and reduced fourth-quarter 2026 EPS to $2.00 from $2.11. Its updated full-year estimate is close to the $7.09 consensus.
• Negative Sentiment: Higher credit costs weighed on profitability, with second-quarter EPS declining from $1.45 a year earlier despite revenue and net interest income growth. Continued deterioration in credit performance remains the main risk to OneMain’s earnings and valuation. OneMain Holdings Earnings Call: Growth Amid Credit Costs

Insider Transactions at OneMain

In other OneMain news, SVP Michael A. Hedlund sold 1,848 shares of the stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $62.00, for a total value of $114,576.00. Following the transaction, the senior vice president owned 13,127 shares of the company’s stock, valued at approximately $813,874. This represents a 12.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Micah R. Conrad sold 5,000 shares of the stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $62.00, for a total transaction of $310,000.00. Following the completion of the sale, the chief operating officer owned 96,250 shares in the company, valued at $5,967,500. This represents a 4.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On OneMain

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. CIBC Private Wealth Group LLC boosted its stake in shares of OneMain by 117.4% during the 4th quarter. CIBC Private Wealth Group LLC now owns 374 shares of the financial services provider’s stock worth $25,000 after acquiring an additional 202 shares during the period. Transamerica Financial Advisors LLC increased its stake in shares of OneMain by 88.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 670 shares of the financial services provider’s stock valued at $45,000 after buying an additional 314 shares during the period. Sunbelt Securities Inc. acquired a new stake in shares of OneMain in the third quarter valued at about $46,000. EverSource Wealth Advisors LLC boosted its position in OneMain by 130.1% during the second quarter. EverSource Wealth Advisors LLC now owns 1,123 shares of the financial services provider’s stock valued at $64,000 after acquiring an additional 635 shares during the last quarter. Finally, Geneos Wealth Management Inc. grew its holdings in OneMain by 9.1% during the 2nd quarter. Geneos Wealth Management Inc. now owns 2,112 shares of the financial services provider’s stock worth $120,000 after acquiring an additional 176 shares during the period. Institutional investors and hedge funds own 85.82% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of OneMain in a report on Tuesday, July 7th. JPMorgan Chase & Co. dropped their price target on OneMain from $63.00 to $55.00 and set an “underweight” rating on the stock in a research report on Thursday, April 9th. Citizens Jmp upped their price objective on OneMain from $68.00 to $70.00 and gave the stock a “market outperform” rating in a research note on Thursday. Royal Bank Of Canada lifted their price target on OneMain from $70.00 to $73.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, BTIG Research restated a “neutral” rating on shares of OneMain in a research report on Thursday, April 16th. Eight analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, OneMain has an average rating of “Moderate Buy” and a consensus price target of $68.40.

About OneMain

OneMain Financial (NYSE: OMF) is a leading consumer finance company specializing in unsecured personal loans for middle-income customers. The company offers tailored loan products designed to address a variety of needs, including debt consolidation, home improvement financing, large purchases and emergency expenses. Through a combination of branch-based service and digital channels, OneMain aims to deliver a personalized borrowing experience with flexible repayment options and transparent terms.

Tracing its roots back to the Commercial Credit Company founded in 1912, OneMain has evolved through a series of mergers and corporate transformations.