Revenue In Line With Expectations

Consumer finance company OneMain Holdings (NYSE:OMF) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 7.1% year on year to $1.24 billion. Its non-GAAP profit of $1.90 per share was 18.5% above analysts’ consensus estimates.

Is now the time to buy OneMain? Find out in our full research report.

• Net Interest Income: $1.07 billion vs analyst estimates of $1.04 billion (3.2% beat)

• Revenue: $1.24 billion vs analyst estimates of $1.23 billion (7.1% year-on-year growth, in line)

• Pre-tax Profit: $263 million (21.3% margin, 27.1% year-on-year growth)

• Adjusted EPS: $1.90 vs analyst estimates of $1.60 (18.5% beat)

• Market Capitalization: $6.63 billion

Dating back to 1912 and formerly known as Springleaf, OneMain Holdings (NYSE:OMF) provides personal loans, auto financing, and credit cards to nonprime consumers who have limited access to traditional banking services.

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, OneMain’s revenue grew at a sluggish 4.1% compounded annual growth rate over the last five years. This fell short of our benchmark for the financials sector and is a poor baseline for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. OneMain’s annualized revenue growth of 6.6% over the last two years is above its five-year trend, but we were still disappointed by the results.

Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, OneMain grew its revenue by 7.1% year on year, and its $1.24 billion of revenue was in line with Wall Street’s estimates.

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It was good to see OneMain beat analysts’ EPS expectations this quarter. We were also glad its net interest income outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 3.5% to $57.66 immediately after reporting.

OneMain put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.