Happen (HAPN) investor relations material

Executive summary

• Loan originations grew 29% year-over-year to $3.15 billion in Q2 2026, surpassing guidance and driven by channel expansion, product optimization, and the launch of Home Improvement loans.

• Achieved record pre-tax income of $76 million and net income of $58.1 million, with diluted EPS up 52% year-over-year to $0.50, exceeding guidance.

• The company rebranded, expanded product offerings, and leveraged AI to drive operational efficiency, achieving over 90% automation in loan originations.

• Credit performance remains strong, outperforming peers by over 40%, with net charge-off ratios improving to 3.2% from 3.8% a year ago.

• Deposits increased 18% year-over-year to $10.8 billion, and total assets reached $12.5 billion, up 16%.

Financial highlights

• Net interest income rose 16% year-over-year to $179 million, while total net revenue increased 6% to $262.9 million.

• Risk-adjusted revenue grew 31% year-over-year to $274 million.

• Pre-tax profit margin reached 28.8%, with pre-tax income up 40% year-over-year to $76 million.

• Diluted EPS was $0.50, up 52% from the prior year and above guidance.

• Tangible book value per share increased to $12.89.

Outlook and guidance

• Full-year 2026 originations guidance raised to $12.2–$12.6 billion; diluted EPS target range increased to $1.80–$1.90.

• Q3 2026 originations expected at $3.2–$3.35 billion; Q3 diluted EPS guidance is $0.43–$0.48.

• Net interest margin expected to trend toward 6% in Q3 and Q4 due to portfolio mix and accounting transition.

• Guidance assumes a stable consumer and interest rate environment for the remainder of 2026.

• Continued provision benefit expected in Q3, with Q4 provision expected to be benign.