Happen (HAPN) Q4 2025 earnings summary

Executive summary

• Achieved record loan originations of $2.6B in Q4 2025, up 40% year-over-year, and $10B for the full year, up 33% year-over-year, driven by strong investor demand, product innovation, and engagement.

• Q4 2025 GAAP net income was $41.6M, with diluted EPS up 338% year-over-year to $0.35 and ROTCE at 11.9%.

• Growth supported by marketing expansion, improved marketplace pricing, and strong credit performance.

• Entered 2026 with competitive strengths in proprietary underwriting, member-focused products, scalable technology, and new home improvement financing.

• Book value per common share increased to $13.01; tangible book value per share rose to $12.30.

Financial highlights

• Q4 2025 total net revenue was $266.5M, up 23% year-over-year; non-interest income grew 38% to $103M; net interest income rose 14% to $163M.

• Net interest margin reached 6% in Q4 2025, up 56 bps year-over-year.

• Non-interest expense was $169M, up 19% year-over-year, mainly due to increased marketing spend.

• Net income before taxes was $50M, more than quadrupling year-over-year.

• Provision for credit losses in Q4 2025 was $47.2M, down from $63.2M year-over-year.

Outlook and guidance

• Q1 2026 loan originations expected at $2.55B–$2.65B; diluted EPS $0.34–$0.39.

• Full-year 2026 originations guided to $11.6B–$12.6B, up 21%–31% year-over-year; EPS $1.65–$1.80, up 42%–55%.

• ROTCE target for 2026 is 13%–15%, with a medium-term goal of 18%–20%.

• Guidance assumes a stable economic environment and Fed funds rate near 3% at year-end.

• Transitioning to fair value option accounting for all loans in 2026, expected to accelerate earnings recognition.