OneMain Holdings, Inc.

Please stand by, your program is about to begin. If you need assistance during your conference today, please press star zero. Welcome to the OneMain Financial third quarter 2025 earnings conference call and webcast. Hosting the call today from one main is Peter bullion head of investor relations today's call is being recorded at this time all participants have been placed in a listen only mode and the floor will be open for your questions, following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point, your question has been answered, you may remove yourself from the queue by pressing star to. We do ask that you limit yourself to one question and one follow-up, and please pick up your handset to allow for optimal sound quality. Lastly, if you should require operator assistance, please press star zero. It is now my pleasure to turn the floor over to Peter Pullian. You may begin.

Thank you, operator. Good morning, everyone, and thank you for joining us. Let me begin by directing you to page two of the third quarter 2025 investor presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures. The presentation can be found in the investor relations section of the OneMain website. Our discussion today will contain certain forward-looking statements reflecting management's current beliefs about the company's future, financial performance, and business prospects. And these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in our earnings press release. We caution you not to place undue reliance on forward-looking statements. If you may be listening to this via replay at some point after today, we remind you that the remarks made herein or as of today, October 31st, and have not been updated subsequent to this call. Our call this morning will include formal remarks from Doug Schulman, our Chairman and Chief Executive Officer, and Jenny Osterhout, our Chief Financial Officer. After the conclusion of our formal remarks, we will conduct a question and answer session. I'd like to now turn the call over to Doug.

Thanks, Pete. Good morning, everyone. Thank you for joining us today. Let me start by saying we're really pleased with our results this quarter. We had very good revenue growth and continue to see very positive credit trends. This led to excellent growth in capital generation, the primary metric against which we manage our business. We also made meaningful progress in our new products and strategic initiatives. all of which sets us up for significant value creation in the near and long term. Let me talk about a few of the highlights for the quarter. Capital generation was $272 million, up 29% year over year. C&I adjusted earnings were $1.90 per share, up 51%. Our total revenue grew 9% and receivables grew 6% year over year. Originations increased 5%, driven by our expanded use of granular data and analytics, combined with continued innovation in our products and customer experience. We continue to see positive trends across our credit metrics. Our 30-plus delinquency was 5.41%. which is down 16 basis points year over year as compared to up two basis points in the third quarter of 2024. C&I net charge-offs were 7% in the quarter, down 51 basis points compared to the third quarter of 2024. Consumer loan net charge-offs were 6.7%, down 66 basis points compared to last year. We're really pleased with the improvement in net charge-offs year over year, which reflects ongoing careful management of our portfolio and the strong performance of recent vintages. Despite some continued economic uncertainty, our customers are holding up well. Delinquencies are in line with expectations, Losses continue to come down, and we really like the credit profile of the customers we are booking today. Last quarter, I provided an update on some recent initiatives that are helping to drive originations in our core personal loan business, even as we maintain our conservative underwriting posture. They include a simplified debt consolidation product new data sources that automate customer information to reduce friction in the application process, streamlined loan renewal for certain customers, and creating a loan origination channel through our credit card business. We are continually innovating across our company to expand reach, enhance offers, and improve customer experience. For example, we've been expanding a strategy to increase customer eligibility by offering smaller initial loan amounts to some customers, then letting them grow with us as they exhibit positive credit behaviors. This has allowed us to expand our customer base without taking on more risk and provide more customers responsible access to credit. We are constantly optimizing and using data and analytics to find additional pockets of growth by fine tuning pricing, loan amounts, and product offerings at a very granular level. Let me turn to the progress we are making in our Brightway credit cards and one main auto finance businesses. Across our multi-product platform, we now provide access to credit to about 3.7 million customers That's up 10% from a year ago. Much of the growth in our customer base is attributable to credit card and auto finance. In our credit card business, we ended the quarter with $834 million of receivables. And earlier this month, we passed the $1 million mark in credit card customers, a notable milestone for the business. Since 2021, when we launched our card business, I have said it is strategically valuable and complementary to our traditional personal loan franchise. It adds a daily transactional product to our more episodic personal loan product. And credit cards create meaningful, long-term, deep relationships with customers. The average card customer has a credit card for about 10 years. Our customers often start with a $500 or $700 line of credit, which can grow over time. A card customer is more engaged than a typical borrower, checking their balance, making payments, and selecting rewards. Our average customer logs into our app every week, and we have the ability to offer customers a loan or other products over time. with zero cost of acquisition since they are already on our platform. So with 1 million customers and growing, this business is very valuable to our franchise. Additionally, I'm really pleased with what we're seeing in some important financial metrics of our card business. Revenue yield continues to increase, now over 32%. and our credit card net charge-offs were down nearly 300 basis points from last quarter. While some of the improvement is due to typical seasonal patterns, the strong performance was also a result of continual efforts to refine underwriting, enhance servicing, and the overall maturing of the business. In our auto finance business, we ended the quarter with over $2.7 billion of receivables. up about $100 million from the last quarter. Similar to our personal loan and credit card businesses, we have maintained a conservative underwriting posture and feel great about our auto portfolio, which continues to perform in line with expectations. We believe that our experienced team, underwriting rigor backed by decades of serving the nonprime consumer, and our ability to offer loans through both independent and franchise dealerships are all competitive advantages. As we grow our credit card and auto finance businesses, we are focused on carefully managing credit, enhancing our product offerings, and driving efficiencies to reduce unit costs as we scale. This quarter, once again, demonstrated the strength of our balance sheet We issued two unsecured bonds totaling $1.6 billion with tight spreads. We've now raised $4.9 billion in 2025 across four unsecured bonds and two ABS securities at attractive pricing. And we've also expanded our forward flow program. Our strong balance sheet and sustained access to diversified capital sources gives us a distinct competitive advantage. I want to highlight two things that exemplify who and what we are as a company. First, I've spoken before about Creditworthy by OneMain, our free financial education program. Since its inception, Creditworthy has reached almost 5,000 high schools. or about 18% of all high schools nationwide. As we deepen our impact across the US, recently we surpassed the mark of teaching 500,000 students the importance of building and maintaining good credit and how to do just that. With hundreds of employees volunteering as teachers and mentors in the program, We are dedicated to helping teens across America build a strong financial foundation. Second, I'm also pleased that OneMaine has been named as one of America's top 100 most loved workplaces for 2025 by the Best Practice Institute. This recognition is based on direct feedback from our team members who create tremendous value for our customers and our shareholders. It gets to the heart of our culture of teamwork, respect, growth, innovation, and accountability. I truly believe that if you have team members working together and going the extra mile every day, it will drive outstanding results for the company. The expanded reach of Creditworthy and our recognition for the fourth year running as a most loved workplace speak to our differentiated business model with deep ties in the community and a culture that rewards delivering results while providing outstanding service to our customers. both of which are critical to the long-term success and shareholder value of one main. Let me end with capital allocation. As I've said before, our first use of capital is extending credit to customers who meet our risk return thresholds. We then make strategic investments in the business that drive long-term shareholder value, like product innovation, our people, data science, technology, and digital capabilities, to name a few. We are committed to our regular dividend and are increasing it by one cent quarterly, or four cents on an annual basis. The annual dividend is now $4.20 per share, which translates to a 7% yield at our current share price. Excess capital beyond that will largely be used for either share repurchases or strategic purposes. This month, our board approved a $1 billion share repurchase program from now through 2028. All things being equal, we expect share repurchases to be a bigger part of our capital return strategy going forward as we drive more excess capital generation in future years. This quarter, we repurchased 540,000 shares for $32 million. Year to date, we've repurchased over 1.3 million shares, already meaningfully exceeding our repurchases in 2024. Our dividend increase and new share repurchase authorization reflect our continued confidence in the strength of our business. In summary, We feel great about the quarter and the first nine months of the year. The strong performance is the result of our continued disciplined actions to optimize our credit box, deliver innovation to drive originations, and expand our product offerings and distribution channels. With that, let me turn the call over to Jenny.