OneMain Holdings, Inc.

Please stand by. Your meeting is about to begin. Good morning, everyone. Welcome to today's OneMain Financial Fourth Quarter 2025 Earnings Conference Call and Webcast. Hosting the call today from OneMain is Peter Pullian, 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. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. We do ask that you please 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 at any time. It is now my pleasure to turn the meeting over to Mr. Peter Pullian. Please go ahead, sir.

Thank you, operator. Good morning, everyone, and thank you for joining us. Let me begin by directing you to page two of the fourth 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 are as of today, February 5th, and have not been updated subsequent to this call. Our call this morning will include formal remarks from Doug Shulman, our Chairman and Chief Executive Officer, and Jenny Osterhout, our Chief Financial Officer. After the conclusion of our formal remarks, we will conduct the question and answer section. 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 with a brief overview of the company's 2025 performance. It was an excellent year with very strong earnings growth and meaningful progress on our strategic initiatives. All of the momentum we have built over the past few years came through in our 2025 results. Full-year CNI earnings per share were $6.66, an increase of 36% year over year. Capital generation was $913 million, an increase of 33%. This outstanding earnings growth was driven by significant revenue growth, accelerated loss improvement, and continued focus on efficiency. And once again, we exhibited our balance sheet strength. raising $5.9 billion in 2025. Our receivables grew 6 percent to over $26 billion, despite maintaining a tight credit posture throughout the year. Receivables growth was supported by focused initiatives to drive more high-quality personal loan originations, as well as important contributions from our auto finance and credit card businesses. Revenue grew 9%, supported by higher yields in a constructive competitive environment. C&I net charge-offs were 7.7%, down 46 basis points from 2024, and consumer loan net charge-offs came down 63 basis points from last year, benefiting from the proactive credit actions we've been taking the last several years. In 2025, we continued to make significant progress across all three of our businesses, positioning the company for continued earnings growth in 2026 and beyond. Growth in our personal loans was driven by a series of targeted initiatives. Our debt consolidation product continues to grow. This valuable product, which allows customers to consolidate debt into a single predictable amortizing loan, typically reduces a customer's payment by about 25% on the debt they consolidate. We've also used data to reduce friction and serve more customers, including automated income verification, and pre-populated auto collateral before a team member talks to a customer about a loan application. And we continue to increase our use of bank data that enables accurate, real-time credit decisioning. We added a streamlined renewal product for our best customers and also created a new product that links a paycheck directly to our payment system, further expanding credit and reducing risk. We expanded our channels, including offering our best card customers a personal loan through our mobile app, allowing us to acquire new loan customers with zero acquisition cost. And this month, we are introducing a new secured lending product just for homeowners, securing the loan with home fixtures, which comes with beneficial pricing similar to our auto-secured loans. All of these products allow us to drive originations volume without loosening our underwriting standards. This year, we've also continued to optimize our branch-based operating model to improve customer engagement while driving performance and efficiency. We've expanded the use of central sales and collections to seamlessly serve customers in real time during periods of high volume. And this month, we launched a new AI-powered tool that gives our branch and central team members faster, easier access to internal policies and guidelines. By transforming enterprise knowledge into a plain language, intuitive experience, this AI capability is designed to boost productivity, accelerate decision-making, and allow our teams to spend more time serving customers. This launch is just one example of our journey to embed AI across the organization to drive both efficiency and revenue. Initiatives like these across our product, operating model, data, and analytics are impactful in the aggregate as they drive efficiency, improve our offers, and attract more customers. Turning to auto, in 2025, we grew receivables to $2.8 billion. This was a year of significant progress in building a scalable auto finance platform. We finished the migration of OneMain's legacy auto lending operation onto our new technology infrastructure. We also grew our dealer sales force this year. and expanded our business into attractive new dealerships and markets. And I'm excited to share that we recently partnered with Ally Financial to form a pass-through arrangement on their ClearPass program. We've already rolled out to about 1,700 dealers, and we'll be scaling the program further this year. We look forward to a very successful partnership with Ally in 2026 and beyond. Turning to credit card, we continued to build momentum in 2025. Receivables grew to $936 million, and accounts increased to nearly 1.1 million customers at year end. We continued to refine our product offering this year. We introduced a number of new cards, adjusting reward levels, credit lines, and other features. This allows us to tailor our unique product offering of payments equal progress to more customers while also managing credit and risk. As we scale the business, improvements in digital engagement are driving efficiency. For instance, in 2025, our digital efforts led to a reduction in customer calls per account, reducing marginal operating expense per account by 25%. While credit cards remain a small percentage of our overall business, making up just 4% of receivables, we're seeing progress in its performance, and as we drive efficiencies and reduce losses, we are seeing an acceleration in capital generation in the card business. During 2025, we also continued to help our customers manage their financial lives. We had continued adoption of our financial wellness platform on our mobile app. The platform provides customers with free financial wellness tools, such as credit score monitoring, budgeting, expense tracking, and bill negotiation. In 2025, we had a 36% increase in customers using the product. Our free financial education program, credit worthy by one name, has now reached more than 600,000 high school students in nearly 5,000 high schools, or 18% of all high schools in the United States. Many of our team members volunteer and engage with students throughout the year, making a difference in the communities where they live and work. We're proud of the impact Creditworthy is having on students. delivering early practical financial education that helps them build the skills they need to responsibly manage credit and build a brighter financial future. Additionally, in 2025, we saw continued recognition of the special workplace we have built at OneMain, as we were recognized by the Best Practice Institute as one of America's most loved workplaces for the fourth year in a row. This distinction is based on team member feedback and reflects the culture we continue to build. One grounded in high performance, teamwork, respect, personal growth, and a shared commitment to serving our customers. This culture is a real competitive advantage for our franchise. Supporting employee engagement, strong execution, deep customer relationships, and consistent outperformance over time. Now let me turn to the great results for the fourth quarter. B&I adjusted earnings were $1.59 per share, up 37% from last year. We grew capital generation by 23% to $225 million. Our receivables grew 6% year over year, and revenue grew 8%. Our 30-plus delinquency for consumer loans was 5.65%, in line with expectations and better than pre-pandemic seasonal trends. We also continue to see strong recoveries in the business and better rolls from delinquency to charge-offs. CNI net charge-offs were 7.9% in the quarter, and consumer loan net charge-offs were 7.6%. We saw significant improvement in net charge-offs in 2025. Our overall portfolio continues to perform in line with our expectations, and we remain confident that our careful management of credit will lead to losses continuing to improve in the coming years. Moving to the auto finance business, receivables increased to $2.8 billion at year end. Losses remain in line with expectations, and we are excited about the future prospects of this business. In our credit card business, we added $102 million in receivables and 88,000 customer accounts during the quarter. We're really pleased that the losses in the card business improved measurably in the second half of 2025. This performance underpins our confidence in the business in 2026 and beyond. Let me now turn to capital allocation. Our first use of capital is originating loans that meet our risk adjusted returns. We also continue to invest in the business to meet customer needs, drive efficiency, and build an enduring franchise. Our regular annual dividend, which is currently $4.20 per share, represents an approximately 7% yield at today's share price. And we are committed to a programmatic share repurchase program. In October, our board approved a $1 billion share repurchase program through 2028. In the fourth quarter, we repurchased 1.2 million shares for $70 million. That is up from $32 million of repurchases in the third quarter and is double the $35 million repurchased in all of 2024. Unless we see other more attractive strategic uses of capital, we would expect incremental capital returns to be weighted more towards share repurchases in 2026 and beyond, while maintaining our commitment to the dividend. As we enter 2026, The consumer continues to be supported by some positive trends, including low unemployment. With that said, we saw a slightly weaker labor market in 2025, and inflation has been persistent. So we are maintaining our conservative underwriting posture. Importantly, one main customers remain resilient, and we feel good about our portfolio. which reinforces our outlook for continued capital generation growth in 2026. With that, let me turn the call over to Jenny.