Enova Q2 2026 results show record receivables and stronger credit

Enova Q2 2026 results showed faster lending growth and better credit performance, with originations up 27% from a year earlier and combined loans and finance receivables reaching a record $5.5 billion. Chief Executive Steve Cunningham said on the company’s July 23 earnings call that steady consumer spending and firmer small-business sentiment supported the quarter’s results.

The online lender said in its earnings release that consolidated net charge-offs fell 0.8 percentage points to 7.3% in the second quarter. That measure improved both from the prior quarter and from a year earlier, according to Cunningham, who said consumer credit strengthened while small-business credit held steady.

Originations, the value of new loans or finance receivables booked during the period, reached nearly $2.3 billion, Enova said. Cunningham said the company has now posted year-on-year origination growth of at least 20% for 11 consecutive quarters, with gains across both its consumer and small-business lines.

What do Enova's originations and charge-offs show?

Originations indicate the volume of new credit Enova is extending, while the net charge-off ratio measures the share of loans the company writes off as unlikely to be collected after recoveries. Rising originations alongside a lower charge-off ratio suggest Enova expanded lending in the quarter while credit losses declined as a share of its loan book.

Cunningham attributed consumer performance to a stable U.S. labor market, wage growth and easing inflation pressures. He said those conditions helped sustain borrower demand and payment performance in Enova’s consumer portfolio.

In small business, Cunningham pointed to studies showing higher consumer spending at small businesses, resilience in the broader economy and improved confidence among business owners. He said Enova’s small and medium-sized business lending business recorded another quarter of growth with stable credit, supported by its brand position, scale and diversification across regions and industries.

Grasshopper Bank deal remains on track for second-half close

Enova also said in an investor presentation that its planned acquisition of Grasshopper Bank is expected to close in the second half of the year. The transaction remains subject to regulatory approvals, approval by Grasshopper shareholders and customary closing conditions, according to the company.

Enova announced in December that it had signed a definitive agreement to acquire Grasshopper Bancorp and its wholly owned banking subsidiary. At the time, Enova said the deal would create a more diversified financial services company.

On the earnings call, Cunningham said integration planning was largely finished and that Enova was prepared to close quickly after approvals are received. He said the company expects benefits from expanding existing products into additional geographies and from lower funding costs tied to Grasshopper’s deposit business.

The acquisition would give Enova access to digital banking infrastructure through Grasshopper, a digital-first bank. For a lender, deposits can provide a lower-cost funding source than some wholesale or capital-markets financing, although the final financial effect depends on regulatory approval, integration and market conditions.

This story draws on original reporting from PYMNTS.