OneMain Holdings Inc
NYSE:OMF
OneMain Holdings Inc
OneMain Holdings Inc. has carved out a unique position in the consumer finance sector of the United States by focusing on providing personal loans to non-prime customers—those individuals who often have limited access to traditional credit lines. With roots tracing back to the early 20th century, the company has evolved through various mergers and rebrandings but remains steadfast in its mission to offer financial solutions to under-served markets. Its business model is centered around high-touch customer service, which means clients receive personalized financial assistance tailored to their needs. This approach not only helps customers manage their finances efficiently but also fosters lasting client relationships that set OneMain apart from many rivals in the consumer financial services landscape.
To generate revenue, OneMain Holdings charges interest on its unsecured personal loans, which are used for a variety of needs like debt consolidation, home repairs, and medical expenses. By targeting non-prime borrowers, the company can charge higher interest rates than traditional lenders, compensating for the increased risk associated with this segment. Moreover, through its substantial network of physical branches, supplemented by a robust digital presence, OneMain enhances its ability to reach potential clients and expand its loan portfolio. Additionally, the company also generates income from the sale of ancillary products such as credit insurance, bolstering its revenue streams. In balancing risk with opportunity, OneMain Holdings thrives by providing essential financial services to a demographic frequently overlooked by larger, mainstream financial institutions.
OneMain Holdings Inc. has carved out a unique position in the consumer finance sector of the United States by focusing on providing personal loans to non-prime customers—those individuals who often have limited access to traditional credit lines. With roots tracing back to the early 20th century, the company has evolved through various mergers and rebrandings but remains steadfast in its mission to offer financial solutions to under-served markets. Its business model is centered around high-touch customer service, which means clients receive personalized financial assistance tailored to their needs. This approach not only helps customers manage their finances efficiently but also fosters lasting client relationships that set OneMain apart from many rivals in the consumer financial services landscape.
To generate revenue, OneMain Holdings charges interest on its unsecured personal loans, which are used for a variety of needs like debt consolidation, home repairs, and medical expenses. By targeting non-prime borrowers, the company can charge higher interest rates than traditional lenders, compensating for the increased risk associated with this segment. Moreover, through its substantial network of physical branches, supplemented by a robust digital presence, OneMain enhances its ability to reach potential clients and expand its loan portfolio. Additionally, the company also generates income from the sale of ancillary products such as credit insurance, bolstering its revenue streams. In balancing risk with opportunity, OneMain Holdings thrives by providing essential financial services to a demographic frequently overlooked by larger, mainstream financial institutions.
Earnings Growth: OneMain delivered robust earnings growth in 2025, with full-year C&I EPS up 36% year-over-year and strong capital generation.
Revenue & Receivables: Revenue grew 9% for the year and 8% in Q4, while managed receivables rose 6% to $26.3 billion.
Credit Performance: Net charge-offs declined notably year-over-year, and delinquency rates remained in line with or better than expectations.
Product Expansion: Continued innovation in personal loans, auto finance, and credit cards, including new product launches and partnerships.
Capital Return: The company accelerated share repurchases in Q4 and returned $639 million to shareholders in 2025, up 20% from 2024.
2026 Outlook: Management expects 6–9% receivables growth, stable or improving credit performance, and ongoing capital generation growth.
Expense Management: Operating expense ratio is expected to improve modestly in 2026, aided by tech investments and efficiency gains.
