Enova International, Inc. ENVA

The business

Enova lends online to consumers and small businesses that banks decline. The consumer side is short-duration installment loans and lines of credit (brands CashNetUSA, NetCredit) to near-prime and subprime borrowers; the small-business side, OnDeck, writes term loans and lines to Main Street firms too small or too thin-file for a bank. Revenue is the interest and fees on a $5.5 billion combined loan book. The engine is now the small-business segment: OnDeck-led SMB receivables carry the lower loss rate (Q1 2026 small-business net charge-offs of 4.6% versus consumer at 14.3%) and have driven most of the originations growth, so roughly half the book now sits in the lower-loss, higher-quality SMB pool that the market increasingly underwrites as the durable part of the franchise.

The borrower is the load-bearing fact the income statement hides. Consumer customers are largely subprime to near-prime, often sub-650 FICO, borrowing small-dollar amounts (hundreds to low thousands) over months, not years; the SMB borrower is a small firm taking $5,000 to $250,000 over 6 to 24 months. Enova does not carry a traditional CECL allowance line because it elects fair-value accounting on the loan portfolio: the cushion shows up as a fair value premium of 115.3% of principal, meaning the carried value already discounts expected losses and a margin on top. What changed in the last few quarters is that loss rates fell while originations accelerated 32% year over year, a rare combination, and it is exactly that combination, falling losses plus rising volume, that has roughly doubled the stock off its 52-week low.