[Management View]
Enova International announced a significant leadership transition, with David Fisher moving to executive chairman and Steven Cunningham becoming CEO effective January 1, 2026. Scott Cornelius will assume the role of CFO. The company reported $764 million in revenue, a 22% YoY increase, driven by a 20% YoY growth in combined loan and finance receivables.

[Outlook]
Enova expects Q3 2025 revenue to be more than 15% higher YoY, with a net revenue margin of 55%-60%. Adjusted EPS (non-GAAP) is projected to be 20%-25% higher YoY for Q3 2025. Full-year 2025 revenue growth is projected at 20%, with adjusted EPS growth expected at 30%.

[Financial Performance]
Revenue increased 22% YoY and 2% sequentially. Originations rose 28% YoY and 4% sequentially. Adjusted EPS was $3.23 per diluted share, up 46% YoY. The net charge-off ratio was 8.1%, down from 8.6% in Q1 2025 but up from 7.7% in Q2 2024. The net revenue margin was 58%.

[Q&A Highlights]
Question 1: Can you elaborate on the consumer portfolio issues and their impact on originations growth in the back half of 2025?
Answer: The issues were isolated to one of the five consumer products, not broad-based. Elevated defaults were still within ROE targets. Adjustments were made to credit models, and credit performance returned to normal. Despite this, consumer originations grew in the upper teens YoY.

Question 2: What drove the strong small business origination growth in Q2 2025?
Answer: Small business had stable credit and strong competitive positioning. The growth was described as "almost like running downhill," with rock-solid credit since Q3 2023. The company expects continued solid performance in the small business segment.

Question 3: Did the heightened delinquencies affect the fair value marks?
Answer: The fair value marks remained stable, reflecting the unit economic decisioning framework. The metrics reported can be influenced by various factors, but the fair value calculations incorporate lifetime expectations, showing stability in credit outlook.

Question 4: How did marketing expenses perform relative to expectations?
Answer: Marketing expenses were slightly below expectations due to lower consumer originations, offset by strong small business growth. The ratio was close to the expected range.

Question 5: What is the competitive environment like for SMB and consumer segments?
Answer: The SMB segment has fewer players and more stable competitive dynamics, benefiting from brand presence. The consumer segment is more fragmented, with many players, leading to occasional headwinds from aggressive competitors.

[Sentiment Analysis]
Analysts and management maintained a positive tone, expressing confidence in the company's strategic direction and leadership transition. The management's proactive approach to addressing credit issues and their balanced growth strategy were well-received.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|-------------------------|---------------|---------------|---------------|
| Revenue | $764 million | $748 million | $626 million |
| Originations | $1.8 billion | $1.73 billion | $1.41 billion |
| Adjusted EPS | $3.23 | $3.10 | $2.21 |
| Net Charge-Off Ratio | 8.1% | 8.6% | 7.7% |
| Net Revenue Margin | 58% | 58% | 58% |

[Risks and Concerns]
Potential risks include fluctuations in consumer credit performance, competitive pressures in the consumer segment, and macroeconomic uncertainties that could impact demand and credit quality.

[Final Takeaway]
Enova International demonstrated strong financial performance in Q2 2025, with significant growth in revenue, originations, and adjusted EPS. The leadership transition is expected to be smooth, with experienced executives taking on new roles. The company's diversified portfolio and proactive risk management position it well for continued growth. Investors should monitor consumer credit trends and competitive dynamics in the coming quarters.