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October 27, 2025 • 3 min read
Enova International (ENVA), a key player in the online lending space for non-prime consumers and small businesses, recently released its financial results for the third quarter of 2025. Let's dive into their latest 10-Q filing to understand their performance and what it signals about the company's health and strategic direction.
Enova reported total revenue of $802.7 million for the quarter, a significant 16.3% increase from the same period last year. This growth wasn't uniform across the board; the company's small business loans and finance receivables segment was the standout performer. Revenue from this division surged by an impressive 29.3% year-over-year to reach $348.3 million. In contrast, the larger consumer loans segment grew by a more modest 7.9% to $443.4 million.
This performance highlights a growing reliance on the small business portfolio, which now accounts for 43.4% of total revenue, up from 39.0% a year ago.
The following flow diagram provides a visual breakdown of Enova's income statement for the third quarter, illustrating how revenue is transformed into net income.
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In the diagram, you may notice a small portion of the "Cost of Revenue" is labeled as "Unallocated." This $2.1 million represents costs related to the change in fair value of their loan portfolio that were not specifically attributed to either the consumer or small business divisions in the provided segment breakdown.
Enova's business model involves carrying its loans at fair value. The "Change in Fair Value" line item on their income statement, which totaled $342.0 million for the quarter, essentially acts as their cost of revenue. This figure reflects adjustments for estimated losses, prepayments, and other factors affecting the value of their loan portfolio.
After accounting for this, Enova's "Net Revenue" (equivalent to gross profit) was $460.7 million, resulting in a net revenue margin of 57.4%. This is a slight dip from the 58.0% margin reported in the prior year's quarter, driven primarily by what the company described as slightly higher charge-offs and delinquencies in the consumer portfolio.
Despite the margin dip, the company showed strong operational efficiency. Total operating expenses were $263.9 million, but as a percentage of revenue, they decreased. This helped boost the operating income to $196.8 million, improving the operating margin to 24.5% for the quarter. Ultimately, Enova posted a healthy net income of $80.3 million, or $3.03 per diluted share.
Enova's third-quarter results paint a picture of a company successfully executing a growth strategy heavily weighted toward its small business lending operations. This segment is not only growing faster but also currently delivering a higher gross profit margin (73.3%) compared to the consumer segment (44.3%).
Operating in the non-prime credit market carries inherent risks tied to economic cycles and regulatory scrutiny. The slightly weaker credit performance in the consumer division this quarter serves as a reminder of these challenges. However, Enova's ability to generate strong top-line growth while improving its overall operating leverage is a positive sign. The continued expansion of the small business portfolio appears to be a key factor in diversifying its revenue stream and driving future profitability.
Last updated: October 27, 2025