OneMain Holdings, Inc.

Good morning, everyone. Welcome to the OneMain Financial Second Quarter 2026 Earnings Conference Call and Webcast. Hosting the call today from OneMain is Peter Poillon, Head of Investor Relations. Today's call is being recorded. It is my pleasure to turn the floor over to Mr. Peter Poillon. Please go ahead, sir. 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 second quarter 2026 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, July 29th, 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 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 begin with a few highlights from the quarter and then discuss the progress we're making across the business as we continue to execute our strategy and drive profitable growth. We had strong financial results in the quarter, including very good receivables growth driven by product innovation and positive delinquency trends, which point to lower losses in the second half of the year. Strong year-over-year originations growth of 10% supported receivables growth this quarter. By focusing on high-quality loan originations, continuously improving customer experience, and enhancing our product offering, we have driven this growth while also maintaining a conservative underwriting posture. Credit performance was good and tracked in line with our expectations. and early delinquency trends continued to improve. Our 30 to 89 delinquency declined seven basis points year over year, accelerating the year over year improvement from last quarter's one basis point decline. In the first half of the year, 30 to 89 delinquency declined 28 basis points. That's better than last year and the pre-pandemic average. We're pleased that delinquency performance continues to move in the right direction, which supports our expectation for improvement in losses over the second half of the year and into 2027. C&I net charge-offs were 8.2%, and consumer loan net charge-offs were 7.8%, both in line with our expectations, and we continued to have strong recoveries in the quarter. We've reached a significant milestone this quarter, surpassing 4 million customer accounts, an increase of 14% from a year ago. This growth has been driven by the success of auto finance and credit cards, combined with our continued product innovation in our core personal loan business. In our personal loan business, several recent initiatives are progressing very well. Our enhanced debt consolidation offering makes the loan process easier for our customers and helps most customers improve their credit scores. Also, because the majority of our debt consolidation loans are secured, they have lower losses compared to our overall personal loan portfolio. Our home fixture secured product offering was introduced earlier this year. While it's still early, we are seeing good uptake from customers and strong initial credit results. Like any new offering at OneMain, we started with a small test to prove out results. And given that we like what we've seen, we are now starting to expand it. We also continue to expand our analytics around bank data to deliver more personalized offers and improve customer engagement. Insights from this data strengthen our underwriting, improve credit outcomes, and increase pull-through rates. Initiatives like these are helping us better serve our customers while strengthening the long-term performance of our personal loan business. Turning to our newer businesses, starting with auto finance, originations grew 19% during the quarter. Receivables reached $3 billion, an increase of 14% year over year. We continue to drive solid growth through the expansion of our dealer network and enhanced underwriting capabilities. Importantly, credit performance remains in line with expectations and continues to outperform the broader industry. Turning to our credit card business, we delivered another very strong quarter. with positive results across all important metrics. Receivables increased $161 million in the quarter and nearly $400 million year over year. New Brightway cards, which include both higher rewards and no reward credit cards, continue to attract new customers and support strong growth. Customer accounts increased to 1.3 million up $155,000 from last quarter and more than $400,000 from a year ago. Credit metrics continue to improve with lower losses and delinquency than a year ago. Just as importantly, as we scale, we're seeing good revenue growth and continuing to improve the long-term profitability of the business. with marginal operating costs per account down about 25% year over year. We're encouraged by the continued growth and improvement in the profitability of our credit card portfolio. Looking ahead, we'll continue to invest in customer acquisition, digital capabilities, and collections optimization to strengthen credit performance and support profitable growth for the long term. As I discussed last quarter, we continue to invest in technology, data, and AI capabilities to enhance our business and drive growth and efficiency. We are currently rolling out a new loan origination system for customers and team members that streamlines our process and should help support profitable growth. We've built an internal AI tool that gives our more than 9,000 team members information they need, like policies or procedures, at their fingertips in an intuitive conversational manner, driving efficiency and speeding up customer service. Our engineering and product teams use AI tools to drive efficiency across the product development lifecycle. We are also learning and piloting AI in a very controlled manner in a number of areas where we see high potential returns and value for our customers. Let me briefly touch on the consumer. Although the current economic environment continues to have some uncertainty, our customers remain resilient and metrics across the industry point to a strong consumer. While we are mindful that geopolitical tensions and fluctuations in energy prices create some risk, we have not seen it show up in our data. And unemployment remains low, providing ongoing support for credit performance. As always, we are closely monitoring trends across the consumer and our portfolio. But credit is performing well, showing that our customer has been able to make it work. And our early-stage consumer loan and credit card delinquency trends give us confidence that we are in a strong position. Turning to capital allocation, our priorities remain unchanged. We will continue to extend credit to every customer that meets our risk-return framework. and we will continue to invest in the business to meet customer needs, drive efficiency and create long-term shareholder value. Our regular dividend, currently $4.20 per share on an annualized basis represents a 7% yield at today's share price. In the second quarter, we repurchased 576,000 shares for $32 million. bringing our total repurchases year-to-date to $137 million, which is $100 million more than we repurchased in the first half of 2025. Looking ahead, our approach to share repurchases will continue to be guided by several factors, including the capital requirements of the business, market dynamics, and economic conditions. We continue to feel good about our business as we're capitalizing on the core competitive advantages of one main, including best-in-class data science and underwriting, an experienced and proven team with unparalleled expertise in serving the non-prime consumer, and a strong diversified balance sheet with a long liquidity runway. We remain confident in our competitive position and see many opportunities to drive capital generation growth well into the future as we execute on our strategic priorities. With that, let me turn the call over to Jenny.