ENVA Enova International Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 04, 2025

 

 

ENOVA INTERNATIONAL, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			1-35503	45-3190813
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
175 West Jackson Boulevard
Chicago, Illinois				60604
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 312 568-4200

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $.00001 par value per share		ENVA		New York Stock Exchange LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On February 4, 2025, Enova International, Inc. (the “Company”) issued a press release to announce its consolidated financial results for the three months ended December 31, 2024. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information included or incorporated by reference in this Current Report on Form 8-K under this Item 2.02 is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are furnished as part of this Report on Form 8-K:

Exhibit No.	Description
99.1	Enova International, Inc. press release dated February 4, 2025
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			Enova International, Inc.
Date:	February 4, 2025	By:	/s/ Sean Rahilly
			Sean Rahilly General Counsel & Secretary

 

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Enova Reports Fourth Quarter and Full Year 2024 Results

 

CHICAGO, February 4, 2025 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial services company powered by machine learning and world-class analytics, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“We are pleased to report our strongest year yet with full year 2024 originations, revenue and adjusted EPS all reaching the highest levels in our company’s history. This success was driven by our world class team, strong competitive position and dedication to unit economics” said David Fisher, Enova’s CEO. “Our portfolio expanded to nearly $4 billion, as a result of continued strength in both our SMB and consumer businesses. Looking ahead, we believe we have significant momentum heading into 2025 and are confident in our ability to continue meeting our customer needs while creating value for our shareholders.”

Fourth Quarter 2024 Summary

 

Full Year 2024 Summary

 

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“We are proud to close out 2024 with record top- and bottom-line results,” said Steve Cunningham, CFO of Enova. “Our strong financial results for the fourth quarter and full-year 2024 continue to showcase the powerful combination of our diversified product offerings, scalable operating model, world-class risk management capabilities and balance sheet flexibility that have driven our ability to deliver consistently strong financial results.”

Conference Call

Enova will host a conference call to discuss its fourth quarter and full year 2024 results at 4 p.m. Central Time / 5 p.m. Eastern Time today, February 4th. The live webcast of the call can be accessed at the Enova Investor Relations website at http://ir.enova.com, along with the company's earnings press release and supplemental financial information. The U.S. dial-in for the call is 1-855-560-2575 (1-412-542-4161 for non-U.S. callers). Please ask to join the Enova International call. A replay of the conference call will be available until February 11, 2025, at 10:59 p.m. Central Time / 11:59 p.m. Eastern Time, while an archived version of the webcast will be available on the Enova International Investor Relations website for 90 days. The U.S. dial-in for the conference call replay is 1-877-344-7529 (1-412-317-0088). The replay access code is 6182379.

About Enova

Enova International (NYSE: ENVA) is a leading financial services company with powerful online lending that serves small businesses and consumers who are underserved by traditional banks. Through its world-class analytics and machine learning algorithms, Enova has provided more than 11.8 million customers with over $59 billion in loans and financing. You can learn more about the company and its portfolio of businesses at www.enova.com.

 

SOURCE Enova International, Inc.

For further information:

 

Public Relations Contact:

Erin Yeager

Email: media@enova.com

 

Investor Relations Contact:

Lindsay Savarese

Office: (212) 331-8417

Email: IR@enova.com

 

Cassidy Fuller

Office: (415) 217-4168

Email: IR@enova.com

 

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Cautionary Statement Concerning Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the business, financial condition and prospects of Enova. These forward-looking statements give current expectations or forecasts of future events and reflect the views and assumptions of Enova's senior management with respect to the business, financial condition and prospects of Enova as of the date of this release and are not guarantees of future performance. The actual results of Enova could differ materially from those indicated by such forward-looking statements because of various risks and uncertainties applicable to Enova's business, including, without limitation, those risks and uncertainties indicated in Enova's filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K, quarterly reports on Forms 10-Q and current reports on Forms 8-K. These risks and uncertainties are beyond the ability of Enova to control, and, in many cases, Enova cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, the words "believes," "estimates," "plans," "expects," "anticipates" and similar expressions or variations as they relate to Enova or its management are intended to identify forward-looking statements. Enova cautions you not to put undue reliance on these statements. Enova disclaims any intention or obligation to update or revise any forward-looking statements after the date of this release.

Non-GAAP Financial Measures

In addition to the financial information prepared in conformity with generally accepted accounting principles in the United States, or GAAP, Enova provides historical non-GAAP financial information. Enova presents non-GAAP financial information because such measures are used by management in understanding the activities and business metrics of Enova's operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of Enova's business that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

 

Management provides non-GAAP financial information for informational purposes and to enhance understanding of Enova's GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, Enova's financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

 

Combined Loans and Finance Receivables

The combined loans and finance receivables measures are non-GAAP measures that include loans and finance receivables that Enova owns or has purchased and loans that Enova guarantees. Management believes these non-GAAP measures provide management and investors with important information needed to evaluate the magnitude of potential receivable losses and the opportunity for revenue performance of the loans and finance receivable portfolio on an aggregate basis. Management also believes that the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on Enova's consolidated balance sheet since revenue is impacted by the aggregate amount of receivables owned by Enova and those guaranteed by Enova as reflected in its consolidated financial statements.

 

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Adjusted Earnings Measures

Enova provides adjusted earnings and adjusted earnings per share, or, collectively, the Adjusted Earnings Measures, which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which can provide a more complete understanding of Enova's financial performance, competitive position and prospects for the future. Management utilizes, and also believes that investors utilize, the Adjusted Earnings Measures to assess operating performance, recognizing that such measures may highlight trends in Enova's business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, management believes that the Adjusted Earnings Measures are useful to management and investors in comparing Enova's financial results during the periods shown without the effect of certain items that are not indicative of Enova’s core operating performance or results of operations.

 

Adjusted EBITDA Measures

Enova provides Adjusted EBITDA and Adjusted EBITDA margin, or, collectively, the Adjusted EBITDA measures, which are non-GAAP measures. Adjusted EBITDA is a non-GAAP measure that Enova defines as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, taxes, stock-based compensation and certain other items, as appropriate, that are not indicative of our core operating performance. Adjusted EBITDA margin is a non-GAAP measure that Enova defines as Adjusted EBITDA as a percentage of total revenue. Management utilizes, and also believes that investors utilize, Adjusted EBITDA Measures to analyze operating performance and evaluate Enova's ability to incur and service debt and Enova's capacity for making capital expenditures. Enova believes that Adjusted EBITDA is useful to management and investors in comparing Enova’s financial results during the periods shown without the effect of certain non-cash items and certain items that are not indicative of Enova’s core operating performance or results of operations. Adjusted EBITDA Measures are also useful to investors to help assess Enova's estimated enterprise value.

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ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except per share data)

(Unaudited)

 

		December 31,
		2024				2023
Assets
Cash and cash equivalents		$	73,910			$	54,357
Restricted cash			248,758				323,082
Loans and finance receivables at fair value			4,386,444				3,629,167
Income taxes receivable			40,690				44,129
Other receivables and prepaid expenses			63,752				71,982
Property and equipment, net			119,956				108,705
Operating lease right-of-use asset			18,201				14,251
Goodwill			279,275				279,275
Intangible assets, net			10,951				19,005
Other assets			24,194				41,583
Total assets		$	5,266,131			$	4,585,536
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses		$	249,970			$	261,156
Operating lease liability			32,165				27,042
Deferred tax liabilities, net			223,590				113,350
Long-term debt			3,563,482				2,943,805
Total liabilities			4,069,207				3,345,353
Commitments and contingencies
Stockholders' equity:
Common stock, $0.00001 par value, 250,000,000 shares authorized, 46,520,916 and 45,339,814 shares issued and 25,808,096 and 29,089,258 outstanding as of December 31, 2024 and 2023, respectively			—				—
Preferred stock, $0.00001 par value, 25,000,000 shares authorized, no shares issued and outstanding			—				—
Additional paid in capital			328,268				284,256
Retained earnings			1,697,754				1,488,306
Accumulated other comprehensive loss			(13,691	)			(6,264	)
Treasury stock, at cost (20,712,820 and 16,250,556 shares as of December 31, 2024 and 2023, respectively)			(815,407	)			(526,115	)
Total stockholders' equity			1,196,924				1,240,183
Total liabilities and stockholders' equity		$	5,266,131			$	4,585,536

 

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ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

(Unaudited)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
Revenue		$	729,551			$	583,592			$	2,657,800			$	2,117,639
Change in Fair Value			(316,515	)			(258,556	)			(1,128,351	)			(887,717	)
Net Revenue			413,036				325,036				1,529,449				1,229,922
Operating Expenses
Marketing			151,178				122,226				523,569				414,460
Operations and technology			58,431				47,089				224,391				194,905
General and administrative			38,035				49,148				156,524				160,265
Depreciation and amortization			10,196				9,034				40,207				38,157
Total Operating Expenses			257,840				227,497				944,691				807,787
Income from Operations			155,196				97,539				584,758				422,135
Interest expense, net			(76,989	)			(57,208	)			(290,442	)			(194,779	)
Foreign currency transaction (loss) gain, net			(902	)			49				(1,064	)			57
Equity method investment income (loss)			92				1,251				(16,460	)			116
Other nonoperating expenses			—				(3	)			(5,691	)			(282	)
Income before Income Taxes			77,397				41,628				271,101				227,247
Provision for income taxes			13,702				6,860				61,653				52,126
Net income		$	63,695			$	34,768			$	209,448			$	175,121
Earnings Per Share:
Earnings per common share:
Basic		$	2.44			$	1.17			$	7.78			$	5.71
Diluted		$	2.30			$	1.13			$	7.43			$	5.49
Weighted average common shares outstanding:
Basic			26,141				29,687				26,920				30,673
Diluted			27,666				30,887				28,202				31,921

 

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ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(dollars in thousands)

(Unaudited)

 

		Year Ended December 31,
		2024				2023
Cash flows provided by operating activities		$	1,538,576			$	1,166,869
Cash flows from investing activities
Loans and finance receivables			(1,867,773	)			(1,449,417	)
Property and equipment additions			(43,422	)			(45,241	)
Total cash flows used in investing activities			(1,911,195	)			(1,494,658	)
Cash flows provided by financing activities			318,882				526,541
Effect of exchange rates on cash			(1,034	)			287
Net change in cash and cash equivalents and restricted cash			(54,771	)			199,039
Cash, cash equivalents and restricted cash at beginning of year			377,439				178,400
Cash, cash equivalents and restricted cash at end of period		$	322,668			$	377,439

 

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ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

LOANS AND FINANCE RECEIVABLES FINANCIAL AND OPERATING DATA

(dollars in thousands)

The following table includes financial information for loans and finance receivables, which is based on loan and finance receivable balances for the three months ended December 31, 2024 and 2023.

 

Three Months Ended December 31		2024				2023				Change
Ending combined loan and finance receivable principal balance:
Company owned		$	3,810,444			$	3,154,735			$	655,709
Guaranteed by the Company(a)			19,859				13,537				6,322
Total combined loan and finance receivable principal balance(b)		$	3,830,303			$	3,168,272			$	662,031
Ending combined loan and finance receivable fair value balance:
Company owned		$	4,386,444			$	3,629,167			$	757,277
Guaranteed by the Company(a)			28,414				18,534				9,880
Ending combined loan and finance receivable fair value balance(b)		$	4,414,858			$	3,647,701			$	767,157
Fair value as a % of principal(c)			115.3	%			115.1	%			0.2	%
Ending combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:
Company owned		$	3,966,486			$	3,297,082			$	669,404
Guaranteed by the Company(a)			23,826				16,351				7,475
Ending combined loan and finance receivable balance(b)		$	3,990,312			$	3,313,433			$	676,879
Average combined loan and finance receivable balance, including principal and accrued fees/interest outstanding:
Company owned(d)		$	3,842,144			$	3,141,479			$	700,665
Guaranteed by the Company(a)(d)			22,060				16,341				5,719
Average combined loan and finance receivable balance(a)(d)		$	3,864,204			$	3,157,820			$	706,384
Installment loans as percentage of average combined loan and finance receivable balance			44.9	%			50.2	%			(5.3	)%
Line of credit accounts as percentage of average combined loan and finance receivable balance			55.1	%			49.8	%			5.3	%
Revenue		$	719,410			$	574,721			$	144,689
Change in fair value			(314,091	)			(256,412	)			(57,679	)
Net revenue			405,319				318,309				87,010
Net revenue margin			56.3	%			55.4	%			0.9	%
Combined loan and finance receivable originations and purchases		$	1,714,919			$	1,425,785			$	289,134
Delinquencies:
>30 days delinquent		$	297,832			$	263,524			$	34,308
>30 days delinquent as a % of loan and finance receivable balance(c)			7.5	%			8.0	%			(0.5	)%
Charge-offs:
Charge-offs (net of recoveries)		$	342,183			$	305,436			$	36,747
Charge-offs (net of recoveries) as a % of average loan and finance receivable balance(d)			8.9	%			9.7	%			(0.8	)%

(a) Represents loans originated by third-party lenders through the CSO programs, which are not included in our consolidated balance sheets.

(b) Non-GAAP measure.

(c) Determined using period-end balances.

(d) The average combined loan and finance receivable balance is the average of the month-end balances during the period.

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ENOVA INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except per share data)

Adjusted Earnings Measures

		Three Months Ended								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
Net income		$	63,695			$	34,768			$	209,448			$	175,121
Adjustments:
Transaction-related costs(a)			—				755				327				755
Lease termination and cease use costs(b)			—				—				—				1,698
Equity method investment (income) loss(c)			(92	)			(1,251	)			16,460				(116	)
Other nonoperating expenses(d)			—				3				5,691				282
Intangible asset amortization			2,014				2,014				8,055				8,385
Stock-based compensation expense			8,297				7,458				31,816				26,738
Foreign currency transaction loss (gain), net			902				(49	)			1,064				(57	)
Cumulative tax effect of adjustments			(2,608	)			(2,293	)			(14,789	)			(9,456	)
Regulatory settlement(e)			—				15,201				—				15,201
Adjusted earnings		$	72,208			$	56,606			$	258,072			$	218,551
Diluted earnings per share		$	2.30			$	1.13			$	7.43			$	5.49
Adjusted earnings per share		$	2.61			$	1.83			$	9.15			$	6.85

Adjusted EBITDA

		Three Months Ended								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
Net income		$	63,695			$	34,768			$	209,448			$	175,121
Depreciation and amortization expenses			10,196				9,034				40,207				38,157
Interest expense, net			76,989				57,208				290,442				194,779
Foreign currency transaction loss (gain), net			902				(49	)			1,064				(57	)
Provision for income taxes			13,702				6,860				61,653				52,126
Stock-based compensation expense			8,297				7,458				31,816				26,738
Adjustments:
Transaction-related costs(a)			—				755				327				755
Equity method investment (income) loss(c)			(92	)			(1,251	)			16,460				(116	)
Regulatory settlement(e)			—				15,201				—				15,201
Other nonoperating expenses(d)			—				3				5,691				282
Adjusted EBITDA		$	173,689			$	129,987			$	657,108			$	502,986
Adjusted EBITDA margin calculated as follows:
Total Revenue		$	729,551			$	583,592			$	2,657,800			$	2,117,639
Adjusted EBITDA			173,689				129,987				657,108				502,986
Adjusted EBITDA as a percentage of total revenue			23.8	%			22.3	%			24.7	%			23.8	%

 

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v3.25.0.1

Document And Entity Information	Feb. 04, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 04, 2025
Entity Registrant Name	ENOVA INTERNATIONAL, INC.
Entity Central Index Key	0001529864
Entity Emerging Growth Company	false
Entity File Number	1-35503
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-3190813
Entity Address, Address Line One	175 West Jackson Boulevard
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60604
City Area Code	312
Local Phone Number	568-4200
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $.00001 par value per share
Trading Symbol	ENVA
Security Exchange Name	NYSE

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