Enova has reported record-breaking loan originations, largely driven by small businesses, which accounted for nearly 70% of its total loan portfolio. The company’s fourth-quarter results revealed originations of $2.3 billion, a 32% increase compared to the same period last year. This growth pushed Enova‘s total portfolio to a record $4.9 billion.
Small Business Lending Fuels Growth
Small business products were a key driver of this performance. Fourth-quarter small business originations reached $1.6 billion, marking a 48% year-over-year increase and the eighth consecutive quarter of at least 20% growth in this segment. Revenue from small business lending also saw a significant 34% jump, reaching $383 million.
Chief Financial Officer Scott Cornelis highlighted the expansion of small business receivables, which ended the quarter at $3.3 billion – a 34% increase from a year earlier. Chief Executive Officer Steve Cunningham attributed the strong growth to steady demand, stable credit performance, and increased marketing investment. "Our internal and external data highlight that SMBs continue to express confidence in the economy and expect favorable operating conditions during 2026", Cunningham said.
The company relied on its analytics platform to identify profitable opportunities, with marketing spend rising to 23% of revenue for the quarter. Cunningham noted that Enova’s focus on speed and certainty of funding made it an attractive option for small businesses, particularly for loans used to support payroll, inventory, and daily operations.
sbb-itb-5b82b38
Positive Sentiment Among Small Businesses
Enova’s latest small business cash flow survey found that 94% of respondents anticipate growth over the next 12 months, matching an all-time high. Management emphasized this optimism as a key factor supporting the company’s growth. Additionally, nearly 75% of small businesses reported bypassing traditional banks in favor of alternative lenders like Enova. Among those who initially sought funding from banks, 46% said they were denied financing.
Consumer Lending Rebounds
On the consumer side, Enova also saw improved performance. Consumer originations increased to $613 million for the quarter, up 2% year over year, while consumer receivables rose 6% to $1.6 billion. Cunningham noted that consumer growth regained momentum in December, with early default performance improving during the quarter. This allowed Enova to increase originations while maintaining credit discipline.
Consolidated net charge-offs declined to 8.3%, down from the previous year, which management attributed to a resilient borrower base supported by steady employment and positive real wage growth.
Grasshopper Acquisition and Future Outlook
A cornerstone of Enova’s strategy for 2026 is its pending acquisition of Grasshopper Bank. The deal is expected to enhance Enova’s capabilities by combining its online lending platform with Grasshopper’s national bank charter and deposit operations. Management anticipates that the acquisition will simplify regulatory processes, lower funding costs, and expand the company’s product availability to additional states. Regulatory applications have been filed, and the transaction is expected to close later in the year.
Looking ahead, Enova’s executives predict approximately 15% origination growth in 2026, with revenue expected to expand in line with that pace. Despite the positive results, Enova’s shares dropped about 1.7% in after-hours trading following the earnings report.