Happen (HAPN) investor relations material

Executive summary

• Record pre-tax income was $76.8M, up 34% YoY; diluted EPS rose 35% to $0.50.

• Originations reached $3.336B, up 26% YoY, with strong credit performance and higher net interest income supporting results.

• FY26 EPS guidance increased, while originations guidance narrowed to prioritize unit margins amid elevated rates.

Financial highlights

• Risk-adjusted revenue was $279.1M, up 27% YoY; total net revenue was $263.2M, down 1%.

• Net interest income rose 16% to $183.1M; non-interest income was $80.1M, down 26% YoY.

• Provision for credit losses was a $15.9M benefit, versus a $46.3M provision expense in Q3 2025.

• Non-interest expense increased 24% YoY to $202.3M, including marketing expense of $72.8M, up 79%.

• Net income was $59.3M, up 34% YoY; pre-tax margin was 29.2%, versus 21.5%.

Outlook and guidance

• FY26 originations guidance narrowed to $12.3B–$12.4B from $12.2B–$12.6B, targeting 26%–27% growth; Q4 guidance is $3.1B–$3.2B.

• FY26 diluted EPS guidance rose to $1.87–$1.92 from $1.80–$1.90; Q4 EPS guidance is $0.43–$0.48.

• Guidance assumes stable consumer and rate conditions, including a 25-bps December 2026 Fed funds increase; Q4 NIM is expected at ~6%.

• Q4 provision benefit expected at $5M–$10M; total expenses forecast flat to down versus Q3, with marketing ratio expected to improve modestly.

• FY26 capital expenditures expected at ~$90M, mainly for digital marketplace bank development and office improvements.