OneMain (OMF) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $213 million, up from $155 million in Q1 2024, with diluted EPS of $1.78, driven by higher interest income and 12% growth in managed receivables to $24.6 billion.

• Originations reached $3.0 billion in Q1 2025, up 20% year-over-year, and customer accounts grew 14% to 3.4 million.

• Credit performance improved, with 30+ day delinquency at 5.08%, net charge-offs at 8.2%, and continued investment in digital products and disciplined underwriting.

• Strategic initiatives in product innovation, data analytics, and conservative underwriting are driving profitable growth.

• No signs of consumer weakness observed; business model and balance sheet remain resilient amid macroeconomic uncertainty.

Financial highlights

• Total revenue for Q1 2025 was $1.5 billion, up 10% year-over-year, with interest income rising 11% to $1.3 billion.

• GAAP net income was $213 million ($1.78 per diluted share), up 38% year-over-year; adjusted net income was $207 million, with adjusted EPS of $1.72.

• Capital generation reached $194 million, up from $155 million in Q1 2024.

• Operating expenses increased 11% to $401 million, with the OpEx ratio flat at 6.6%.

• Dividend of $1.04 per share declared, representing a ~9% yield; 323,000 shares repurchased for $16 million.

Outlook and guidance

• 2025 guidance unchanged: managed receivables growth of 5–8%, revenue growth of 6–8%, and net charge-offs of 7.5–8.0%.

• Operating expense ratio expected to remain at 6.6%, with continued investment in technology and new products.

• Expects improved capital generation versus 2024 and maintains a conservative underwriting posture.