Slides
Page 1
3Q25 NYSE: OMF | October 31, 2025 Financial Results
Page 2
The following slides are part of a presentation by OneMain Holdings, Inc. (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these slides is complete. For additional financial, statistical, and business-related information, as well as information regarding business and segment trends, see the earnings release and financial supplement included as an exhibit to the Company’s Current Report on Form 8-K filed on October 31, 2025, and available in the Investor Relations section on the Company’s website (www.omf.com) and the SEC’s website (www.sec.gov). Cautionary Note Regarding Forward-Looking Statements This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements preceded by, followed by or that otherwise include the words “anticipates,” “appears,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “foresees,” “goals,” “intends,” “likely,” “objective,” “plans,” “projects,” “target,” “trend,” “remains,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will” or “would” are intended to identify forward-looking statements, but these words are not the exclusive means of identifying forward-looking statements. Forward-looking statements are not statements of historical fact but instead represent only management’s current beliefs regarding future events, objectives, goals, projections, strategies, performance, and future plans, and underlying assumptions and other statements related thereto. You should not place undue reliance on these forward-looking statements. By their nature, forward-looking statements are subject to risks, uncertainties, assumptions and other important factors that may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements. Important factors that could cause actual results, performance, or achievements to differ materially from those expressed in or implied by forward-looking statements include, without limitation, the following: adverse changes and volatility in general economic conditions, including the interest rate environment and the financial markets; the sufficiency of our allowance for finance receivable losses; increased levels of unemployment and personal bankruptcies; the current inflationary environment and related trends affecting customers; natural or accidental events such as earthquakes, hurricanes, pandemics, floods or wildfires affecting our customers, collateral, or our facilities; a failure in or breach of our information, operational or security systems or infrastructure or those of third parties, including as a result of cyber incidents, war or other disruptions; the adequacy of our credit risk scoring models; geopolitical risks, including recent geopolitical actions outside the U.S.; adverse changes in our ability to attract and retain employees or key executives; increased competition or adverse changes in customer responsiveness to our distribution channels or products; changes in federal, state, or local laws, regulations, or regulatory policies and practices or increased regulatory scrutiny of our business or industry; risks associated with our insurance operations; the costs and effects of any actual or alleged violations of any federal, state, or local laws, rules or regulations; the costs and effects of any fines, penalties, judgments, decrees, orders, inquiries, investigations, subpoenas, or enforcement or other proceedings of any governmental or quasi-governmental agency or authority; our substantial indebtedness and our continued ability to access the capital markets and maintain adequate current sources of funds to satisfy our cash flow requirements; our ability to comply with all of our covenants; the effects of any downgrade of our debt ratings by credit rating agencies; and other risks and uncertainties described in the “Risk Factors” and “Management’s Discussion and Analysis” sections of the Company’s most recent Form 10-K filed with the SEC and in the Company’s other filings with the SEC from time to time. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. You should specifically consider the factors identified in this document that could cause actual results to differ before making an investment decision to purchase our securities. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. Forward looking statements included in this presentation speak only as of the date on which they were made. We undertake no obligation to update or revise any forward-looking statements, whether written or oral, to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments or otherwise, except as required by law. Use of Non-GAAP Financial Measures We report the operating results of Consumer and Insurance using the Segment Accounting Basis, which (i) reflects our allocation methodologies for interest expense and operating costs, to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). Consumer and Insurance adjusted pretax income (loss), Consumer and Insurance adjusted net income (loss), and Consumer and Insurance adjusted earnings (loss) per diluted share are key performance measures used to evaluate the performance of our business. Consumer and Insurance adjusted pretax income (loss) represents income (loss) before income taxes on a Segment Accounting Basis and excludes net loss resulting from repurchases and repayments of debt, restructuring charges, acquisition-related transaction and integration expenses, regulatory settlements, and strategic activities and other items. We believe these non-GAAP financial measures are useful in assessing the profitability of our segment. Management also uses pretax capital generation and capital generation, non-GAAP financial measures, as a key performance measure of our segment. Pretax capital generation represents Consumer & Insurance adjusted pretax income, as discussed above, and excludes the change in our Consumer & Insurance allowance for finance receivable losses in the period while still considering the Consumer & Insurance net charge-offs incurred during the period. Capital generation represents the after-tax effect of pretax capital generation. Management believes that these non-GAAP measures are useful in assessing the capital created in the period impacting the overall capital adequacy of the Company. Management believes that the Company’s reserves, combined with its equity, represent the Company's loss absorption capacity. Management utilizes these non-GAAP measures in evaluating our performance. Additionally, these non-GAAP measures are consistent with the performance goals established in OMH’s executive compensation program. These non-GAAP financial measures should be considered supplemental to, but not as a substitute for or superior to, income (loss) before income taxes, net income, or other measures of financial performance prepared in accordance with GAAP. 2 Important Information
Page 3
3 Our Vision is to be the Lender of Choice for the Nonprime Consumer Meet their needs today OneMain Customers Unsecured loans Secured loans Auto finance Credit cards Financial wellness Insurance Bill negotiation Progress to a better future
Page 4
4 $25.9 billion Managed Receivables* Up 6% YoY $2.7 billion Auto Managed Receivables* $1.05 per share1 $1 billion share repurchase2 ~7% dividend yield3 7.0% C&I Net Charge-offs* Down 51bps YoY $834 million Credit Card Receivables $3.9 billion Originations Up 5% YoY $272 million Capital Generation* Up 29% YoY $1.6 billion C&I Total Revenue* Up 9% YoY *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. 1. Dividend of $1.05 declared on October 31, 2025, increased from $1.04. 2. In October, Board authorized $1 billion share repurchase through December 31, 2028. 3. Yield assumes regular annual dividend of $4.20 over closing share price of $56.02 as of October 29, 2025. 3Q25 Financial Highlights $1.6 billion Unsecured Debt Issuance 3.7 million Customer Accounts $1.90 C&I Adjusted Diluted EPS* Up 51% YoY 6.7% Consumer Loan Net Charge-offs* Down 66bps YoY
Page 5
5 ($ in millions, except Average Assets and Average Net Receivables in billions, and per share statistics) 3Q25 2Q25 3Q24 Interest Income $1,386 $1,333 $1,271 Other Net Revenue 152 141 138 Provision for Loan Losses (488) (511) (512) Operating Expenses (427) (415) (396) Interest Expense (320) (317) (299) Adjusted Pretax Income $303 $231 $202 Adjusted Net Income1 $227 $173 $151 Total Revenue $1,586 $1,528 $1,452 Adjusted Diluted EPS $1.90 $1.45 $1.26 Avg. Net Receivables (ANR) $24.2 $23.6 $22.9 Capital Generation $272 $222 $211 Capital Generation RoR 4.5% 3.8% 3.7% C&I* Adjusted Earnings SummaryEarnings Summary 3Q25 2Q25 3Q24 Consumer & Insurance* $303 $231 $202 Other (2) (1) 0 Reconciling Items* (38) (16) 5 Pretax Income $263 $214 $207 Taxes (64) (47) (50) GAAP Net Income $199 $167 $157 Diluted EPS $1.67 $1.40 $1.31 Average Assets* $26.7 $26.3 $25.4 Return on Assets* 3.0% 2.5% 2.5% 3Q25 Financial Results Note: Figures may not add due to rounding. *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. 1. Assumes a tax rate of 25% for all periods shown.
Page 6
$23.7 $24.3 $24.7 $24.6 $25.2 $25.9 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 $3.6 $3.7 $3.5 $3.0 $3.9 $3.9 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 6 ($ in billions, unless noted) Highlights • $3.9 billion in 3Q25, up 5% YoY, with conservative credit posture • Growth driven by new products and utilization of data science and product innovation • Consumer loan originations APR of 26.9%, up 8bps YoY Highlights • Managed Receivables up $1.6 billion, or 6% YoY • 3Q25 includes $1.4 billion of receivables that we service for our whole loan sale partners and OneMain Auto loans originated by third parties • Consumer loan portfolio yield of 22.6%, up 49bps YoY • Credit cards revenue yield of 32.4%, up 151bps YoY Consumer Loan Originations Managed Receivables *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. Originations & Receivables (C&I)*
Page 7
($ in millions) 7 3Q25 New Products Highlights Note: BrightWay® is a registered trademark of OneMain Financial Holdings, LLC. The BrightWay® credit card is issued by WebBank. *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. Everyday transactions Financing at the point of purchase $550 $643 $676 $752 $834 3Q24 4Q24 1Q25 2Q25 3Q25 $2,292 $2,397 $2,495 $2,614 $2,717 3Q24 4Q24 1Q25 2Q25 3Q25 Managed Receivables* Customer accounts (k) Receivables 711 783 836 920 993 Originations $310 $307 $342 $373 $369 • Digital-first offering that rewards good credit behavior • Targeted and disciplined rollout with 11% QoQ receivables growth • Highly rated app with strong customer engagement and usage metrics • Surpassed 1 million customer accounts in October • Deep experience in secured lending, best-in-class capabilities and strong credit performance • Disciplined and conservative underwriting with 4% QoQ managed receivables* growth • Unique capability to serve both independent and franchise dealers and their customers
Page 8
($ in millions) 90+ Days Delinquent 8 $501 $551 $567 $531 $480 $543 2.39% 2.55% 2.59% 2.46% 2.18% 2.41% 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. 1. Excludes Foursight, OneMain’s auto finance acquisition in 2Q24. Consumer Loan Delinquency Trends (C&I)*1 Highlights • 30+ delinquency of 5.41%, down 16bps YoY • 30-89 delinquency of 2.99%, down 2bps YoY • 90+ delinquency of 2.41%, down 14bps YoY $1,125 $1,202 $1,239 $1,099 $1,116 $1,217 5.36% 5.57% 5.65% 5.08% 5.07% 5.41% 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 30+ Days Delinquent $624 $651 $672 $568 $636 $674 2.97% 3.01% 3.06% 2.63% 2.89% 2.99% 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 30-89 Days Delinquent
Page 9
~Flat +2bps (16bps) Pre-pandemic Average 3Q24 3Q25 Portfolio Performance is Supported by Credit Tightening (C&I)*1 9 Back Book % of 30+ Delinquent Receivables Front Book2 % of Portfolio *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. 1. Consumer loan excluding Foursight, OneMain’s auto finance acquisition in 2Q24. 2. Front book represents all consumer loan originations post August 2022 credit tightening. 3. Reflects the average of 3Q18 and 3Q19. 3 30+ Delinquency 3Q YoY Change (bps) 27% 24% 19% 1Q25 2Q25 3Q25 87% 90% 92% 1Q25 2Q25 3Q25 Highlights • 30+ delinquency of 5.41%, down 16bps YoY • Front book2 is growing and continues to perform in line with expectations • Back book now accounts for 8% of receivables but contributes 19% to delinquency
Page 10
($ in millions) Loss Reserve Trends C&I Net Charge-offs 10*See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. Credit Trends (C&I)* Highlights • 3Q25 Consumer Loan net charge-offs of 6.7%, down 66bps YoY • 3Q25 C&I net charge-offs of 7.0%, down 51bps YoY • 3Q25 reserve coverage of 11.5%, flat QoQ and YoY $496 $432 $464 $473 $446 $428 8.45% 7.52% 7.88% 8.17% 7.57% 7.01% 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 $2,571 $2,651 $2,710 $2,693 $2,758 $2,818 11.5% 11.5% 11.5% 11.5% 11.5% 11.5% 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 $478 $412 $438 $440 $411 $394 8.29% 7.33% 7.63% 7.83% 7.19% 6.67% 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Consumer Loan Net Charge-offs
Page 11
11 Quarterly Operating Expenses % OpEx Ratio % OpEx Ratio ($ in millions) Note: FY and YTD figures may not sum due to rounding. *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. Highlights • 3Q25 operating expense of $427 million, up 8% YoY • 3Q25 OpEx ratio of 6.6%, in line with full-year expectations Operating Expenses (C&I)* Operating Expenses $1,250 $1,341 $1,424 $1,487 $1,554 $1,245 6.9% 7.3% 7.1% 7.0% 6.6% 6.6% ~6.6% 2020 2021 2022 2023 2024 YTD25 2025E $374 $396 $422 $401 $415 $427 6.4% 6.5% 6.8% 6.6% 6.7% 6.6% 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25
Page 12
12 Net Leverage* ($ in billions, unless noted) Unsecured Maturities (2025 – 2028) 5.6x 5.6x 5.5x 5.5x 5.5x 3Q24 4Q24 1Q25 2Q25 3Q25 Highlights • Well-positioned funding profile with balanced debt mix, staggered maturities and significant liquidity • Issued $750 million unsecured bond at 6.13% due 2030; proceeds used to redeem remainder of 9.00% 2029 unsecured bond • Issued $800 million unsecured bond at 6.50% due 2033 Balance Sheet & Funding $0.4 $0.8 $0.8 $0.6 $1.62 2H25 1H26 2H26 1H27 2H27 1H28 2H28 Note: Figures may not sum due to rounding. *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. 1. Excludes $550 million secured bank facility terminated by OneMain on October 1, 2024. 2. Original maturity value. Bank Facilities $6.7 $6.7 $6.3 $6.4 $6.4 $6.4 $1.3 $1.1 $1.1 $1.1 $1.1 $1.1 $8.0 $7.81 $7.4 $7.5 $7.5 $7.5 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Unencumbered Receivables* $9.0 $9.7 $10.2 Secured Unsecured $10.9$9.7 Coupon 7.13% 3.50% $8.1 6.63% 3.88%
Page 13
13 1 Business Investment • Balance sheet growth: managed receivables up 6% YoY • Continue to invest in new products and channels, data science, technology, and digital capabilities • Maintain net leverage* of 4-6x Regular Dividend • Board approved 1% increase in quarterly dividend to $1.05 per share, payable November 14 • Dividend yield of ~7%1 at current share price 2 Share Repurchases • Repurchased 540 thousand shares for $32 million in 3Q25 • Board authorized $1 billion share repurchase through 2028 3 *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. 1. Yield assumes regular annual dividend of $4.20 over closing share price of $56.02 as of October 29, 2025. Capital Allocation Framework 2
Page 14
14 2025 Strategic Priorities (C&I)* *See appendix for Non-GAAP Financial Measures reconciliations along with defined terms. Key Metrics January 31, 2025 July 25, 2025 October 31, 2025 Managed Receivables Growth 5.0% – 8.0% Unchanged 6% – 8% Revenue Growth 6.0% – 8.0% High end of range ~9% C&I Net Charge-offs 7.5% – 8.0% 7.5% – 7.8% Unchanged Operating Expense Ratio ~6.6% Unchanged Unchanged
Page 15
Appendix
Page 16
(unaudited, $ in millions) 3Q25 2Q25 1Q25 4Q24 3Q24 FY24 FY23 Consumer & Insurance $261 $211 $270 $159 $200 $707 $845 Other (2) (1) 1 (1) - (1) (6) Segment to GAAP adjustment 4 4 4 6 7 (39) 1 Income before income taxes - GAAP basis $263 $214 $275 $164 $207 $667 $840 Consumer & Insurance pretax income $261 $211 $270 $159 $200 $707 $845 Net loss on repurchasesand repayments of debt 39 20 5 19 - 33 - Restructuring charges 2 - - 1 1 29 - Acquisition-related transaction and integration expenses 1 - - 5 1 9 - Regulatory settlements - - - - - - 26 Other1 - - - 1 - 4 3 Consumer & Insurance adjusted pretax income (non-GAAP) $303 $231 $275 $185 $202 $782 $874 Reconciling items2 ($38) ($16) ($1) ($20) $5 ($114) ($28) Consumer & Insurance adjusted pretax income (non-GAAP) $303 $231 $275 $185 $202 $782 $874 Provision for finance receivable losses 488 511 456 523 512 1,981 1,721 Net charge-offs (428) (446) (473) (464) (432) (1,849) (1,536) Pretax capital generation (non-GAAP) $363 $296 $258 $244 $282 $914 $1,059 Capital generation, net of tax3 (non-GAAP) $272 $222 $194 $183 $211 $685 $794 Note: Quarters may not sum to fiscal year due to rounding. 1. Other adjustments includes strategic activities and other items. 2. Reconciling Items consist of Total Segment to GAAP Adjustment and the adjustments to Pretax Income (Loss) – Segment Accounting Basis. 3. Income taxes assume a 25% tax rate. Reconciliation of Non-GAAP Measures 16
Page 17
Note: For additional schedules and disclosures, see the earnings release and financial supplements included as an exhibit to the Company’s Current Report on Form 8-K filed October 31, 2025, and available in the Investor Relations (“IR”) section on the Company’s website (www.omf.com) and the SEC’s website (www.sec.gov). Slide 6, 8, and 10: For 2Q24 consumer loan originations, managed receivables, consumer loan delinquency, consumer loan net charge-offs and loss reserve figures, refer to the Company’s second quarter 2024 earnings presentation on our IR website. For C&I net charge-offs, refer to the Company’s 10Q/10K filings for each respective period on our IR website. Slide 9: For average of 3Q18 and 3Q19 refer to the Company’s third quarter 2018 and 2019 earnings presentations and 10Q filings on our IR website. Slide 11: For 2Q24, 2020, 2021 and 2022 operating expenses refer to the Company’s second quarter 2024 earnings presentation on our IR website. Slide 12: For 2Q24 bank facilities and unencumbered receivables refer to the Company’s second quarter 2025 earnings presentation on our IR website. Reconciliation of Non-GAAP Measures (cont’d) 17 (unaudited, $ in millions) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Consumer & Insurance $24,490 $23,901 $23,365 $23,598 $23,128 Segment to GAAP adjustment (25) (31) (37) (44) (53) Net finance receivables - GAAP basis $24,465 $23,870 $23,328 $23,554 $23,075 Consumer & Insurance $2,818 $2,758 $2,693 $2,710 $2,651 Segment to GAAP adjustment (3) (4) (5) (5) (6) Allowance for finance receivable losses - GAAP basis $2,815 $2,754 $2,688 $2,705 $2,645
Page 18
• Auto Finance: financing at the point of purchase through a network of auto dealerships • Average assets: average of monthly average assets (assets at the beginning and end of each month divided by two) in the period • C&I adjusted diluted EPS: C&I adjusted net income (non-GAAP) / weighted average diluted shares • Capital generation: C&I adjusted net income – change in C&I allowance for finance receivable losses, net of tax • Capital generation return on receivables1: annualized capital generation / C&I average net receivables • Consumer loans: consist of personal loans and auto finance • Finance receivables serviced for our whole loan sale partners: unpaid principal balance plus accrued interest of loans sold as part of our whole loan sale program • Managed receivables: C&I net finance receivables + finance receivables serviced for our whole loan sale partners + auto finance loans originated by third parties • Net charge-off ratio1: annualized net charge-offs / average net receivables • Net leverage: net adjusted debt / adjusted capital • Opex ratio: annualized C&I operating expenses / average managed receivables • Origination volume: loans originated during the period, including those originated and sold to our whole loan sale partners that we continue to service • Other net revenue: other revenues – insurance policy benefits and claims expense • Personal loans: loans secured by titled collateral or unsecured and offered through our branch network, central operations, or digital platform • Return on assets (ROA): annualized net income / average total assets • Revenue yield: annualized credit card finance charges and non-interest income as a percentage of average net credit card receivables • Total revenue: C&I interest income + C&I total other revenue • Unencumbered receivables: unencumbered unpaid principal balance of our consumer loans and credit cards. For precompute personal loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges. Credit card receivables include those in the trust that exceed the minimum for securing advances under credit card variable funding note facilities, which the Company can remove from the trust under the terms of such facilities, and exclude billed interest, fees, and closed accounts with balances Defined Terms 18 Note: See additional defined terms and calculations in the earnings release and financial supplements included as an exhibit to the Company’s Current Report on Form 8-K filed October 31, 2025, and available in the Investor Relations section on the Company’s website (www.omf.com) and the SEC’s website (www.sec.gov). 1. 2Q24 and fiscal year 2024 adjusted for policy alignment associated with the Foursight acquisition.