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1. Company Snapshot

1.a. Company Description

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses.The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured.The company also offers credit cards and insurance products comprising life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans.


It operates through a network of approximately 1,400 branch offices in 44 states in the United States, as well as through its website onemainfinancial.com.The company was formerly known as Springleaf Holdings, Inc.and changed its name to OneMain Holdings, Inc.


in November 2015.OneMain Holdings, Inc.was founded in 1912 and is based in Evansville, Indiana.

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1.b. Last Insights on OMF

OneMain Holdings' recent performance was driven by strong Q3 earnings, beating estimates with $1.9 per share, and revenue growth. The company's managed receivables reached $25.9 billion, and it raised its quarterly dividend by 1% to $1.05 per share. A $1.0 billion share repurchase program was also approved, indicating a commitment to shareholder returns. Additionally, the company's strategic mix of fixed-rate, secured loans and investment diversification mitigates macroeconomic risks. Resilient credit quality and improving delinquency ratios also contributed to its performance.

1.c. Company Highlights

2. OneMain Holdings Delivers Strong Q4 2025 Results

OneMain Holdings reported a strong fourth quarter in 2025, with GAAP net income reaching $204 million, or $1.72 per diluted share, up 64% from $1.05 per diluted share in 2024. The company's C&I adjusted net income was $1.59 per diluted share, surpassing analyst estimates of $1.55. Revenue grew 9% in 2025, driven by higher yields in a constructive competitive environment. The company's operating expenses were $443 million, up 5% compared to the previous year, resulting in an OpEx ratio of 6.7%.

Publication Date: 09:25

📋 Highlights
  • 2025 C&I Earnings Per Share (EPS) Growth:: Full-year C&I EPS reached $6.66, a 36% increase year-over-year.
  • Capital Generation:: Generated $913 million in capital, a 33% year-over-year increase, with $5.9 billion raised in 2025.
  • GAAP Net Income Surge:: Fourth-quarter GAAP net income was $1.72 per diluted share, up 64% from $1.05 in 2024.
  • Charge-Off Reductions:: C&I net charge-offs dropped 46 basis points to 7.7%, while consumer loan net charge-offs fell 63 basis points year-over-year.
  • Capital Return to Shareholders:: Returned $639 million in 2025, a 20% increase from 2024, with $1 billion in unsecured bond issuance for flexibility.

Revenue Growth and Credit Performance

The company's receivables grew by 6%, driven by high-quality personal loan originations and contributions from its auto finance and credit card businesses. C&I net charge-offs declined by 46 basis points to 7.7% in the fourth quarter, towards the lower end of the guidance range. The credit card portfolio's 30-plus delinquency performance improved by 83 basis points versus the prior year, a positive indicator of future performance.

Capital Generation and Shareholder Returns

OneMain Holdings generated $225 million in capital in the fourth quarter, up $42 million from $183 million in 2024, driven by receivables growth, higher portfolio yields, and good credit performance. The company returned $639 million to shareholders in 2025, up 20% from 2024, with a bias towards share repurchases. The company's dividend yield stands at 6.77%, an attractive return for income investors.

Valuation and Outlook

With a P/E Ratio of 9.31 and a P/B Ratio of 2.14, OneMain Holdings appears to be reasonably valued. Analysts estimate revenue growth at 6.7% for the next year, which is in line with the company's guidance for managed receivables growth. Given the company's strong credit performance, capital generation, and shareholder returns, it is well-positioned for continued growth in 2026 and beyond.

3. NewsRoom

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OneMain Financial: A Secure Dividend With Capital Appreciation Potential

Feb -07

Source: seekingalpha.com

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These Analysts Revise Their Forecasts On OneMain Holdings Following Q4 Results

Feb -06

Source: benzinga.com

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OneMain Holdings Dips Despite Q4 Earnings Beat, NII & Costs Rise Y/Y

Feb -06

Source: zacks.com

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OneMain Holdings, Inc. (OMF) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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Compared to Estimates, OneMain (OMF) Q4 Earnings: A Look at Key Metrics

Feb -05

Source: zacks.com

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OneMain Holdings (OMF) Q4 Earnings and Revenues Surpass Estimates

Feb -05

Source: zacks.com

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ONEMAIN HOLDINGS, INC. REPORTS FOURTH QUARTER 2025 RESULTS

Feb -05

Source: prnewswire.com

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OneMain Holdings to Present at Bank of America 2026 Financial Services Conference

Feb -03

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.03%)

6. Segments

Consumer and Insurance

Expected Growth: 7.03%

OneMain Holdings, Inc.'s 7.03% growth in Consumer and Insurance segments is driven by increasing demand for personal loans, expansion of online lending platforms, and strategic partnerships. Additionally, favorable regulatory environments, rising consumer spending, and effective risk management practices contribute to the growth.

Other

Expected Growth: 7.03%

OneMain Holdings' 7.03% growth is driven by increasing demand for personal loans, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved operational efficiency, and effective risk management have contributed to its growth. Furthermore, the rise of fintech and online lending platforms has created opportunities for OneMain to diversify its product offerings and reach a broader customer base.

Adjustment

Expected Growth: 7.4%

OneMain Holdings, Inc.'s 7.4% growth is driven by increasing consumer lending demand, expansion of online lending platforms, and strategic acquisitions. Additionally, the company's focus on subprime lending and diversified product offerings contribute to its growth momentum. Furthermore, effective cost management and operational efficiencies also support the company's growth trajectory.

7. Detailed Products

Personal Loans

OneMain Holdings, Inc. offers personal loans to individuals for various purposes such as debt consolidation, home improvement, and unexpected expenses.

Auto Loans

OneMain Holdings, Inc. provides auto loans to individuals for purchasing new or used vehicles.

Insurance Products

OneMain Holdings, Inc. offers various insurance products, including life insurance, accidental death insurance, and involuntary unemployment insurance.

Credit Cards

OneMain Holdings, Inc. issues credit cards to individuals for everyday purchases and cash advances.

8. OneMain Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

OneMain Holdings, Inc. operates in the financial services industry, which has a moderate threat of substitutes. While there are alternative financial institutions, OneMain's diversified product offerings and strong brand recognition mitigate the threat of substitutes.

Bargaining Power Of Customers

OneMain Holdings, Inc. has a large customer base, but individual customers have limited bargaining power due to the company's diversified product offerings and strong brand recognition.

Bargaining Power Of Suppliers

OneMain Holdings, Inc. has a diversified supplier base, and no single supplier has significant bargaining power over the company.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory hurdles and significant capital requirements, making it difficult for new entrants to compete with established players like OneMain Holdings, Inc.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. OneMain Holdings, Inc. faces intense rivalry from other financial institutions, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.15%
Debt Cost 6.74%
Equity Weight 13.85%
Equity Cost 12.06%
WACC 7.48%
Leverage 621.88%

11. Quality Control: OneMain Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Synchrony

A-Score: 6.8/10

Value: 7.8

Growth: 7.8

Quality: 7.6

Yield: 4.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
OneMain Holdings

A-Score: 6.6/10

Value: 5.5

Growth: 5.4

Quality: 5.2

Yield: 10.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
FirstCash

A-Score: 6.3/10

Value: 4.1

Growth: 7.6

Quality: 6.4

Yield: 2.0

Momentum: 9.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
SLM

A-Score: 6.1/10

Value: 7.1

Growth: 5.6

Quality: 6.8

Yield: 4.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Western Union

A-Score: 6.0/10

Value: 7.4

Growth: 3.1

Quality: 6.2

Yield: 10.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Ally Financial

A-Score: 5.6/10

Value: 6.6

Growth: 5.1

Quality: 3.1

Yield: 6.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.64$

Current Price

61.64$

Potential

-0.00%

Expected Cash-Flows