OneMain Holdings, Inc. OMF

The business

OneMain is the largest branch-based nonprime and subprime personal-installment lender in the US, offering both secured and unsecured loans through a physical branch network that underwrites and services higher-risk borrowers most banks decline. The core installment engine is a managed-receivables book of $26.1B as of Q1 2026, up 6% year over year, and it generates essentially all of the company's operating profit. The borrower is nonprime by design: average FICO around 622, average loan sizes in the roughly $8,000 to $9,000 range, and about 51% of the debt book secured (typically by a car or hard collateral), which is what lets OneMain lend to sub-prime credit and still recover in default. Revenue is net interest income, $4.2B in FY2025, earned on a high-yielding receivables book funded not by deposits but by securitizations and unsecured corporate debt.

Two things the financials do not show but the math needs. First, this is a non-deposit lender: OneMain funds itself in the securitization and unsecured-debt markets, so continuous access to those markets at reasonable spreads is existential in a way it is not for a deposit-funded bank, and net leverage of 5.4x sits inside but not at the low end of the 4x to 6x target. Second, the company is diversifying off the single installment engine: the Foursight acquisition pushed it into auto finance, and the BrightWay and BrightWay+ credit cards are an attempt to graduate borrowers into a longer relationship and diversify revenue. On the cycle, first-quarter losses are seasonally the highest of the year, and the Q1 2026 consumer net charge-off ratio of 8.02% with 30-89 delinquency of 2.84% (down year over year) is management's evidence that credit is stable-to-improving rather than deteriorating, with full-year C&I charge-off guidance of 7.4% to 7.9%.