OneMain Holdings Inc. reported strong 2025 results with full-year C&I EPS at $6.66, up 36% YoY, and managed receivables at $26.3 billion. Credit trends improved, but headwinds remain, with management guiding 2026 C&I net charge-offs of 7.4%-7.9%. Capital returns, funding moves, and product expansion are underway, with a focus on growth and efficiency.

Chairman and CEO Doug Shulman highlighted the company’s excellent 2025 performance during the fourth-quarter earnings call. Full-year C&I earnings per share increased 36% YoY, while capital generation rose to $913 million. Managed receivables grew to over $26 billion with a tight credit posture maintained.

CFO Jenny Osterhout reported fourth-quarter GAAP net income of $204 million, up 64% YoY. Managed receivables ended 2025 at $26.3 billion, up 6%, with $3.6 billion in fourth-quarter originations. Interest income rose 8%, supported by receivables growth.

Credit results improved in 2025, with full-year C&I net charge-offs at 7.7% and consumer loan net charge-offs declining. The company highlighted recoveries as a tailwind, with fourth-quarter recoveries up 16% YoY.

OneMain executives outlined product and operational initiatives to expand originations without loosening underwriting standards. Efforts include debt consolidation loans, automated income verification, and new secured lending products.

The company emphasized shareholder returns and balance sheet positioning, with a $4.20 annual dividend and a $1 billion share repurchase program. Total capital returned to shareholders in 2025 was $639 million, up 20% from the previous year.

On funding, OneMain issued a $1 billion unsecured bond and reduced secured funding to 50%, improving flexibility. The company’s Forward Flow whole loan sale program is expected to lead to higher gains on sale and servicing income over time.

For 2026, the company expects managed receivables growth of 6%-9% and C&I net charge-offs of 7.4%-7.9%, with an OpEx ratio of about 6.6%. Management addressed the importance of tax season and the company’s application for an ILC license.

OneMain Financial specializes in unsecured personal loans for middle-income customers, offering tailored loan products for various needs. The company, with roots dating back to 1912, aims to provide a personalized borrowing experience through branch-based services and digital channels.

Read more at Yahoo Finance: OneMain Q4 Earnings Call Highlights