What changed in Enova International, Inc.'s 10-K — 2023 vs 2024
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Paragraph-level year-over-year comparison of Enova International, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.
+276 added−265 removedSource: 10-K (2025-02-18) vs 10-K (2024-02-23)
Top changes in Enova International, Inc.'s 2024 10-K
276 paragraphs added · 265 removed · 218 edited across 1 sections
- Item 7A. Quantitative and Qualitative Disclosures About Market Risk+276 / −265 · 218 edited
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
218 edited+58 added−47 removed156 unchanged
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
218 edited+58 added−47 removed156 unchanged
2023 filing
2024 filing
Biggest changeTotal Common Stock Paid in Retained Comprehensive Treasury Stock, at cost Stockholders' Noncontrolling Stockholders' Shares Amount Capital Earnings Loss Shares Amount Equity Interest Equity Balance at December 31, 2020 41,937 $ — $ 187,981 $ 849,466 $ ( 6,898 ) ( 6,174 ) $ ( 113,201 ) $ 917,348 $ 1,486 $ 918,834 Stock-based compensation expense — — 21,179 — — — — 21,179 — 21,179 Shares issued for vested RSUs 793 — — — — — — — — — Shares issued for stock option exercises 694 — 15,457 — — — — 15,457 — 15,457 Net income attributable to Enova International, Inc. — — — 256,295 — — — 256,295 — 256,295 Foreign currency translation loss, net of tax — — — — ( 1,478 ) — — ( 1,478 ) ( 126 ) ( 1,604 ) Purchases of treasury shares, at cost — — — — — ( 3,106 ) ( 116,657 ) ( 116,657 ) — ( 116,657 ) Net income attributable to noncontrolling interest — — — — — — — — 773 773 Ownership change in noncontrolling interest — — 1,072 — ( 270 ) — — 802 ( 802 ) — OnDeck Australia deconsolidation — — — — 106 — — 106 ( 1,331 ) ( 1,225 ) Balance at December 31, 2021 43,424 $ — $ 225,689 $ 1,105,761 $ ( 8,540 ) ( 9,280 ) $ ( 229,858 ) $ 1,093,052 $ — $ 1,093,052 Stock-based compensation expense — — 21,950 — — — — 21,950 — 21,950 Shares issued for vested RSUs 640 — — — — — — — — — Shares issued for stock option exercises 263 — 4,239 — — — — 4,239 — 4,239 Net income attributable to Enova International, Inc. — — — 207,424 — — — 207,424 — 207,424 Unrealized gain on investments, net of tax — — — — 1,761 — — 1,761 — 1,761 Foreign currency translation gain, net of tax — — — — 789 — — 789 — 789 Purchases of treasury shares, at cost — — — — — ( 3,826 ) ( 143,070 ) ( 143,070 ) — ( 143,070 ) Balance at December 31, 2022 44,327 $ — $ 251,878 $ 1,313,185 $ ( 5,990 ) ( 13,106 ) $ ( 372,928 ) $ 1,186,145 $ — $ 1,186,145 Stock-based compensation expense — — 26,738 — — — — 26,738 — 26,738 Shares issued for vested RSUs 624 — — — — — — — — — Shares issued for stock option exercises 389 — 5,640 — — — — 5,640 — 5,640 Net income attributable to Enova International, Inc. — — — 175,121 — — — 175,121 — 175,121 Unrealized loss on investments, net of tax — — — — ( 2,253 ) — — ( 2,253 ) — ( 2,253 ) Foreign currency translation gain, net of tax — — — — 1,979 — — 1,979 — 1,979 Purchases of treasury shares, at cost — — — — — ( 3,145 ) ( 153,187 ) ( 153,187 ) — ( 153,187 ) Balance at December 31, 2023 45,340 $ — $ 284,256 $ 1,488,306 $ ( 6,264 ) ( 16,251 ) $ ( 526,115 ) $ 1,240,183 $ — $ 1,240,183 See Notes to Consolidated Financial Statements 71 ENOVA INTERNATIONAL, INC.
Biggest changeAND SUBSIDIARIES C ONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) Accumulated Additional Other Total Common Stock Paid in Retained Comprehensive Treasury Stock, at cost Stockholders' Shares Amount Capital Earnings Loss Shares Amount Equity Balance at December 31, 2021 43,424 $ — $ 225,689 $ 1,105,761 $ ( 8,540 ) ( 9,280 ) $ ( 229,858 ) $ 1,093,052 Stock-based compensation expense — — 21,950 — — — — 21,950 Shares issued for vested RSUs 640 — — — — — — — Shares issued for stock option exercises 263 — 4,239 — — — — 4,239 Net income — — — 207,424 — — — 207,424 Unrealized gain on investments, net of tax — — — — 1,761 — — 1,761 Foreign currency translation gain, net of tax — — — — 789 — — 789 Purchases of treasury shares, at cost — — — — — ( 3,826 ) ( 143,070 ) ( 143,070 ) Balance at December 31, 2022 44,327 $ — $ 251,878 $ 1,313,185 $ ( 5,990 ) ( 13,106 ) $ ( 372,928 ) $ 1,186,145 Stock-based compensation expense — — 26,738 — — — — 26,738 Shares issued for vested RSUs 624 — — — — — — — Shares issued for stock option exercises 389 — 5,640 — — — — 5,640 Net income — — — 175,121 — — — 175,121 Unrealized loss on investments, net of tax — — — — ( 2,253 ) — — ( 2,253 ) Foreign currency translation gain, net of tax — — — — 1,979 — — 1,979 Purchases of treasury shares, at cost — — — — — ( 3,145 ) ( 153,187 ) ( 153,187 ) Balance at December 31, 2023 45,340 $ — $ 284,256 $ 1,488,306 $ ( 6,264 ) ( 16,251 ) $ ( 526,115 ) $ 1,240,183 Stock-based compensation expense — — 31,816 — — — — 31,816 Shares issued for vested RSUs 617 — — — — — — — Shares issued for stock option exercises 564 — 12,196 — — — — 12,196 Net income — — — 209,448 — — — 209,448 Unrealized gain on investments, net of tax — — — — 492 — — 492 Foreign currency translation loss, net of tax — — — — ( 7,919 ) — — ( 7,919 ) Purchases of treasury shares, at cost — — — — — ( 4,462 ) ( 289,292 ) ( 289,292 ) Balance at December 31, 2024 46,521 $ — $ 328,268 $ 1,697,754 $ ( 13,691 ) ( 20,713 ) $ ( 815,407 ) $ 1,196,924 See Notes to Consolidated Financial Statements 69 ENOVA INTERNATIONAL, INC.
The Company has issued a limited indemnity to the lenders for certain “bad acts,” and the Company has agreed for the benefit of the lenders to meet certain ongoing financial performance covenants.
The Company has issued a limited indemnity to the lenders for certain “bad acts,” and the Company has agreed for the benefit of the lenders to meet certain ongoing financial performance covenants.
ODAS IV Securitization Notes On July 27, 2023, OnDeck Asset Securitization IV, LLC (“ODAS IV”), a wholly-owned indirect subsidiary of the Company, issued $ 227.1 million in initial principal amount of Series 2023-1 Fixed Rate Asset-Backed Notes (the “ODAS IV Securitization Notes”) in a private securitization transaction.
ODAS IV 2023-1 Securitization Notes On July 27, 2023, OnDeck Asset Securitization IV, LLC (“ODAS IV”), a wholly-owned indirect subsidiary of the Company, issued $ 227.1 million in initial principal amount of Series 2023-1 Fixed Rate Asset-Backed Notes (the “ODAS IV 2023-1 Securitization Notes”) in a private securitization transaction.
Revolving Credit Facility On June 23, 2022, the Company and certain of its subsidiaries entered into an amended and restated secured revolving credit agreement with Bank of Montreal, as administrative agent and collateral agent, the lenders from time to time party thereto, and BMO Capital Markets, Axos Bank, and Synovus Bank, as the joint lead arrangers and joint lead bookrunners (the “Credit Agreement”).
Revolving Credit Facility On June 23, 2022, the Company and certain of its subsidiaries entered into an amended and restated secured revolving credit agreement with Bank of Montreal, as administrative agent and collateral agent, the lenders from time to time party thereto, and BMO Capital Markets, Axos Bank, and Synovus Bank, as the joint lead arrangers and joint lead bookrunners (as amended, the “Credit Agreement”).
Depending upon the outcome any future agreements or settlements with the relevant taxing authorities, the amount of the uncertainty, including amounts that would be recognized as a component of the effective tax rate, could change significantly.
Depending upon the outcome of any future agreements or settlements with relevant taxing authorities, the amount of the uncertainty, including amounts that would be recognized as a component of the effective tax rate, could change significantly.
The assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rates in effect at each balance sheet date, and the resulting adjustments are recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) as a separate component of stockholders’ equity. Revenue and expenses are translated at the monthly average exchange rates occurring during each period.
The assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are recorded in “Accumulated other comprehensive income (loss)” (“AOCI”) as a separate component of stockholders’ equity. Revenue and expenses are translated at the monthly average exchange rates occurring during each period.
NetCredit LOC Receivables 2024 Securitization Facility On February 21, 2024, NetCredit LOC Receivables 2024, LLC, a wholly-owned indirect subsidiary of the Company, entered into a receivables securitization (the “NCLOCR 2024 Securitization Facility”) with lenders party thereto from time to time, Midtown Madison Management, LLC, as administrative agent and Citibank, N.A., as collateral trustee and paying agent.
NCLOCR 2024 Securitization Facility On February 21, 2024, NetCredit LOC Receivables 2024, LLC, a wholly-owned indirect subsidiary of the Company, entered into a receivables securitization (the “NCLOCR 2024 Securitization Facility”) with lenders party thereto from time to time, Midtown Madison Management, LLC, as administrative agent and Citibank, N.A., as collateral trustee and paying agent.
The models use inputs that are unobservable and inherently judgmental and reflect management’s best estimates of the assumptions a market participant would use to calculate fair value. The valuation inputs for the projections of future cash flows include estimated losses, prepayment rates, utilization rates, servicing costs and discount rates.
The models use inputs that are unobservable and inherently judgmental and reflect management’s best estimates of the assumptions a market participant would use to calculate fair value. The valuation inputs for the projections of future cash flows include estimated losses, prepayment rates, servicing costs and discount rates.
The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
The net proceeds from issuance of the 2023-A Notes were used to acquire consumer loans from certain of the Company’s wholly-owned subsidiaries. The acquired loans were pledged as collateral for 2023-A Notes and are serviced by another subsidiary of the Company.
The net proceeds from issuance of the 2023-A Securitization Notes were used to acquire consumer loans from certain of the Company’s wholly-owned subsidiaries. The acquired loans were pledged as collateral for 2023-A Securitization Notes and are serviced by another subsidiary of the Company.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 65 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 63 Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
The ODAS IV Securitization Notes have a legal final payment date in August 2030 and were issued in three classes with initial principal amounts and fixed interest rates per annum as follows: Class A notes of $ 143.8 million at 7.00 %, Class B notes of $ 56.3 million at 8.25 %, and Class C notes of $ 27.0 million at 9.93 %.
The ODAS IV 2023-1 Securitization Notes have a legal final payment date in August 2030 and were issued in three classes with initial principal amounts and fixed interest rates per annum as follows: Class A notes of $ 143.8 million at 7.00 %, Class B notes of $ 56.3 million at 8.25 %, and Class C notes of $ 27.0 million at 9.93 %.
On October 19, 2023, the Company and certain of its subsidiaries entered into that certain First Amendment to Amended and Restated Credit Agreement (the “First Amendment”).
On October 19, 2023, the Company and certain of its subsidiaries entered into the First Amendment to Amended and Restated Credit Agreement (the “First Amendment”).
The Company has established a tax-effected valuation allowance of $ 0.7 million as of December 31, 2023 , against the net operating losses that will expire prior to their utilization. Following the acquisition of OnDeck, the Company is subject to a Section 382 limitation associated with the built-in losses and other attributes of the acquired OnDeck assets.
The Company has established a tax-effected valuation allowance of $ 0.7 million as of December 31, 2024 against the net operating losses that will expire prior to their utilization. Following the acquisition of OnDeck, the Company is subject to a Section 382 limitation associated with the built-in losses and other attributes of the acquired OnDeck assets.
Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. I TEM 9B.
Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. I TEM 9B.
Installment loans are loans written by the Company, by a third-party lender through the Company’s credit services organization or credit access business program (“CSO program” as further described below) that the Company guarantees or by a bank partner. Installment loans includes longer-term loans that require the outstanding principal balance to be paid down in multiple installments.
Installment loans are loans written by the Company, by a third-party lender through the Company’s credit services organization or credit access business program (“CSO program” as further described below) that the Company guarantees or by a bank partner. Installment loans include longer-term loans that require the outstanding principal balance to be paid down in multiple installments.
To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments, utilization rates and servicing costs over the estimated duration of the underlying assets. Loss, prepayment, utilization and servicing cost assumptions are determined using historical loss data and include appropriate consideration of recent trends and anticipated future performance.
To derive the fair value, the Company generally utilizes discounted cash flow analyses that factor in estimated losses, prepayments and servicing costs over the estimated duration of the underlying assets. Loss, prepayment and servicing cost assumptions are determined using historical loss data and include appropriate consideration of recent trends and anticipated future performance.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
The Company analyzes several factors, including the nature and frequency of operating losses, the Company’s carryforward period for any losses, the reversal of future taxable temporary differences, the expected occurrence of future income or loss and the feasibility of available tax planning strategies to protect against the loss of deferred tax assets. See Note 10 for further discussion.
The Company analyzes several factors, including the nature and frequency of operating losses, the Company’s carryforward period for any losses, the reversal of future taxable temporary differences, the expected occurrence of future income or loss and the feasibility of available tax planning strategies to protect against the loss of deferred tax assets. See Note 9 for further discussion.
A decrease of 100 basis points to the discount rates used in our valuations would increase the balance of loans and finance receivables at fair value by approximately 0.7% at December 31, 2023 and 2022. Expectations of future credit losses are a significant input to the valuation of our loans and finance receivables.
A decrease of 100 basis points to the discount rates used in our valuations would increase the balance of loans and finance receivables at fair value by approximately 0.7% at December 31, 2024 and 2023. Expectations of future credit losses are a significant input to the valuation of our loans and finance receivables.
The 2018‑1 Debtor shall be permitted to prepay the 2018‑1 Securitization Facility, subject to certain fees and conditions. In the event of prepayment for the purposes of securitizations, no fees shall apply. Any remaining amounts outstanding will be payable no later than March 24, 2027, the final maturity date.
The 2018‑1 Debtor shall be permitted to prepay the 2018‑1 Securitization Facility, subject to certain fees and conditions. In the event of prepayment for the purposes of securitizations, no fees shall apply. Any remaining amounts outstanding will be payable no later than March 24, 2026, the final maturity date.
The 2024 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.
The 2029 Senior Notes and the related guarantees have not been and will not be registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities or blue sky laws and foreign securities laws.
The Credit Agreement also contains environmental, social, and governance provisions allowing amendment of the Credit Agreement to reflect subsequently agreed upon key performance indicators with respect to sustainability targets, achievement of which would result in adjustments to the commitment fee and applicable margins. 91 ENOVA INTERNATIONAL, INC.
The Credit Agreement also contains environmental, social, and governance provisions allowing amendment of the Credit Agreement to reflect subsequently agreed upon key performance indicators with respect to sustainability targets, achievement of which would result in adjustments to the commitment fee and applicable margins. 90 ENOVA INTERNATIONAL, INC.
The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2019. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed.
The statute of limitations related to the Company’s consolidated Federal income tax returns is closed for all tax years up to and including 2020. The years open to examination by state, local and foreign government authorities vary by jurisdiction, but the statute of limitation is generally three years from the date the tax return is filed.
CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of December 31, 2023 (the “Evaluation Date”).
CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of December 31, 2024 (the “Evaluation Date”).
Restricted Stock Units During the years ended December 31, 2023, 2022 and 2021 , the Company granted RSUs to Company officers, certain employees and to the non-management members of the Board of Directors under the Enova LTIP. Each vested RSU entitles the holder to receive a share of the common stock of the Company.
Restricted Stock Units During the years ended December 31, 2024, 2023 and 2022 , the Company granted RSUs to Company officers, certain employees and to the non-management members of the Board of Directors under the Enova LTIP. Each vested RSU entitles the holder to receive a share of the common stock of the Company.
The Company has recorded a full valuation allowance related to the Brazilian net operating loss carryforwards, as they are not more likely than not to be utilized. As of December 31, 2023, we currently have insignificant accumulated earnings in foreign jurisdictions.
The Company has recorded a full valuation allowance related to the Brazilian net operating loss carryforwards, as they are not more likely than not to be utilized. As of December 31, 2024, we currently have insignificant accumulated earnings in foreign jurisdictions.
During the years ended December 31, 2023 and 2022 , there were no transfers of assets or liabilities between Level 1, 2 or 3. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period values.
During the years ended December 31, 2024 and 2023 , there were no transfers of assets or liabilities between Level 1, 2 or 3. It is the Company’s policy to value any transfers between levels of the fair value hierarchy based on end of period values.
The effectiveness of our internal control over financial reporting as of December 31, 2023 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which appears in this Form 10-K.
The effectiveness of our internal control over financial reporting as of December 31, 2024 has been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report which appears in this Form 10-K.
The 2024 Senior Notes bear interest at a rate of 8.50 % annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The 2024 Senior Notes were sold at a price of 100 % with a maturity date of September 1, 2024.
The 2024 Senior Notes bore interest at a rate of 8.50 % annually on the principal amount payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2018. The 2024 Senior Notes were sold at a price of 100 % with a maturity date of September 1, 2024.
Loans and finance receivables at fair value – Refer to Notes 1 and 18 to the consolidated financial statements Critical Audit Matter Description The estimation of the fair value of loans and finance receivables portfolio uses discounted cash flow models that have been internally developed.
Loans and finance receivables at fair value – Refer to Notes 1 and 17 to the consolidated financial statements Critical Audit Matter Description The estimation of the fair value of loans and finance receivables portfolio uses discounted cash flow models that have been internally developed.
Based on our evaluation under the framework in “Internal Control — Integrated Framework” (2013), management, with the participation of our Chief Executive Officer and Chief Financial Officer, concluded that our internal control over financial reporting was effective as of December 31, 2023.
Based on our evaluation under the framework in “Internal Control — Integrated Framework” (2013), management, with the participation of our Chief Executive Officer and Chief Financial Officer, concluded that our internal control over financial reporting was effective as of December 31, 2024.
An increase of 100 basis points to the discount rates used in our valuations would decrease the balance of loans and finance receivables at fair value by approximately 0.7% at December 31, 2023 and 2022.
An increase of 100 basis points to the discount rates used in our valuations would decrease the balance of loans and finance receivables at fair value by approximately 0.7% at December 31, 2024 and 2023.
We also have audited the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
We also have audited the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Also, in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
The ODAS IV Securitization Notes were offered and sold to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act.
The ODAS IV 2023-1 Securitization Notes were offered and sold to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act and to certain persons outside of the United States in compliance with Regulation S under the Securities Act.
Increasing our estimates for future credit losses used in our valuations to 110% of current expectations would decrease the balance of loans and finance receivables at fair value by approximately 3.2% and 3.3% at December 31, 2023 and 2022, respectively. Conversely, credit losses may decrease as the economy strengthens or with increased government assistance.
Increasing our estimates for future credit losses used in our valuations to 110% of current expectations would decrease the balance of loans and finance receivables at fair value by approximately 3.6% and 3.2% at December 31, 2024 and 2023, respectively. Conversely, credit losses may decrease as the economy strengthens or with increased government assistance.
On November 18, 2022, the RAOD Securitization Facility was amended to extend the revolving period to November 2024 , extend the maturity date to November 2025 , change the Class A borrowing rate from LIBOR plus 1.75 % to SOFR plus 1.90 % and the Class B borrowing rate from LIBOR plus 6.5 % to SOFR plus 8.00 % , and decrease the Class B commitment from $ 36.8 million to $ 30.3 million and the Class B advance rate from 90 % to 87.5 %.
On November 18, 2022, the RAOD Securitization Facility was amended to, among other changes, extend the revolving period to November 2024 , extend the maturity date to November 2025 , change the Class A borrowing rate from LIBOR plus 1.75 % to SOFR plus 1.90 % and the Class B borrowing rate from LIBOR plus 6.5 % to SOFR plus 8.00 % , and decrease the Class B commitment from $ 36.8 million to $ 30.3 million and the Class B advance rate from 90 % to 87.5 %.
The Company completed its annual assessment of goodwill as of October 1, 2023 based on qualitative factors and determined that the fair value of its goodwill exceeded carrying value; as such, no impairment existed at that date.
The Company completed its annual assessment of goodwill as of October 1, 2024 based on qualitative factors and determined that the fair value of its goodwill exceeded carrying value; as such, no impairment existed at that date.
How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to loans and finance receivables at fair value included the following, among others: • We tested the effectiveness of internal controls related to the determination of loans and finance receivables at fair value, including those controls related to management’s review of the models and the significant inputs used to estimate the fair value. • We tested the underlying data for accuracy and completeness, including loan balances, historical net charge-offs, payments and other assumptions, that served as the basis for the valuation. • With the assistance of our internal fair value specialists, we developed a range of independent estimates of fair value and compared our estimates to the recorded valuation. /s/ Deloitte & Touche LLP Chicago, Illinois February 23, 2024 We have served as the Company's auditor since 2021. 66 ENOVA INTERNATIONAL, INC.
How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to loans and finance receivables at fair value included the following, among others: • We tested the effectiveness of internal controls related to the determination of loans and finance receivables at fair value, including those controls related to management’s review of the models and the significant inputs used to estimate the fair value. • We tested the underlying data for accuracy and completeness, including loan balances, historical net charge-offs, payments and other assumptions, that served as the basis for the valuation. • With the assistance of our internal fair value specialists, we developed a range of independent estimates of fair value and compared our estimates to the recorded valuation. /s/ Deloitte & Touche LLP Chicago, Illinois February 18, 2025 We have served as the Company's auditor since 2021. 64 ENOVA INTERNATIONAL, INC.
On September 26, 2023, the Company commenced a solicitation of consents (the “Consent Solicitation”) from holders of its outstanding 2025 Senior Notes to amend the restricted payments covenant in the 2025 Senior Notes indenture in order to increase by up to $ 200.0 million the Company’s ability to make restricted payments in connection with share repurchases and for other corporate purposes, so long as, immediately after giving pro forma effect to the making of such restricted payment, the debt to tangible common equity ratio of the Company does not exceed 4.5 to 1.0.
AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) On September 26, 2023, the Company commenced a solicitation of consents (the “Consent Solicitation”) from holders of its outstanding 2025 Senior Notes to amend the restricted payments covenant in the 2025 Senior Notes indenture in order to increase by up to $ 200.0 million the Company’s ability to make restricted payments in connection with share repurchases and for other corporate purposes, so long as, immediately after giving pro forma effect to the making of such restricted payment, the debt to tangible common equity ratio of the Company does not exceed 4.5 to 1.0.
Decreasing our estimates for future credit losses used in our valuations to 90% of current expectations would increase the balance of loans and finance receivables at fair value by approximately 3.0% and 3.3% at December 31, 2023 and 2022, respectively. The expected rate of future customer prepayments can also impact the fair value of our loans and finance receivables.
Decreasing our estimates for future credit losses used in our valuations to 90% of current expectations would increase the balance of loans and finance receivables at fair value by approximately 4.3% and 3.0% at December 31, 2024 and 2023, respectively. The expected rate of future customer prepayments can also impact the fair value of our loans and finance receivables.
As of December 31, 2023 the carrying value of the Company’s ownership in OnDeck Australia was $ 0.0 million. As of December 31, 2022 , the carrying value of the Company’s investment in OnDeck Australia was $ 1.1 million, which the Company included in “Other assets” on the consolidated balance sheets.
As of December 31, 2024 the carrying value of the Company’s ownership in OnDeck Australia was $ 0.1 million, which the Company included in “Other assets” on the consolidated balance sheets. As of December 31, 2023 , the carrying value of the Company’s investment in OnDeck Australia was $ 0.0 million.
Operating Segment Information During the three years ended December 31, 2023 , the Company primarily provided online financial services to non-prime credit consumers and small businesses in the United States, Australia and Brazil. The Company has one reportable segment, which is composed of the Company’s domestic and international operations and corporate services.
Operating Segment Information During the three years ended December 31, 2024 , the Company primarily provided online financial services to non-prime credit consumers and small businesses in the United States and Brazil. The Company has one reportable segment, which is composed of the Company’s domestic and international operations and corporate services.
In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases. 11 .
In most circumstances, this is expected to increase the length of time that the applicable taxing authority may examine the carryovers by one year or longer, in limited cases. 10 .
Stock-Based Compensation Under the Enova International, Inc. 2014 Third Amended and Restated Long-Term Incentive Plan (the “Enova LTIP”), the Company is authorized to issue 14,500,000 shares of Common Stock pursuant to “Awards” granted as incentive stock options (intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended), nonqualified stock options, restricted stock units (“RSUs”), restricted stock, performance shares, stock appreciation rights or other stock-based awards.
Stock-Based Compensation Under the Enova International, Inc. 2014 Fourth Amended and Restated Long-Term Incentive Plan (the “Enova LTIP”), the Company is authorized to issue 16,500,000 shares of Common Stock pursuant to “Awards” granted as incentive stock options (intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended), nonqualified stock options, restricted stock units (“RSUs”), restricted stock, performance shares, stock appreciation rights or other stock-based awards.
The 2023-A Notes were sold at a discount of the principal amount to yield 9.00 % to maturity in December 2027 (equivalent to 3.975 % spread above interpolated U.S. Treasuries). The 2023-A Notes represent obligations of the Issuer only and are not guaranteed by the Company.
The 2023-A Securitization Notes were sold at a discount of the principal amount to yield 9.00 % to maturity in December 2027 (equivalent to 3.975 % spread above interpolated U.S. Treasuries). The 2023-A Securitization Notes represent obligations of NCCR 2023 only and are not guaranteed by the Company.
The 2024 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100 % of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2024 Senior Notes (the “2024 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date.
The 2024 Senior Notes were redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 1, 2020 at 100 % of the aggregate principal amount of 2024 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governed the Company’s 2024 Senior Notes (the “2024 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 1, 2020 at the premium, if any, specified in the 2024 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date.
The 2025 Senior Notes are redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 15, 2021 at 100 % of the aggregate principal amount of 2025 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governs the Company’s 2025 Senior Notes (the “2025 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 15, 2021 at the premium, if any, specified in the 2025 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date.
The 2025 Senior Notes were redeemable at the Company’s option, in whole or in part, (i) at any time prior to September 15, 2021 at 100 % of the aggregate principal amount of 2025 Senior Notes redeemed plus the applicable “make whole” premium specified in the indenture that governed the Company’s 2025 Senior Notes (the “2025 Senior Notes Indenture”), plus accrued and unpaid interest, if any, to the redemption date and (ii) at any time on or after September 15, 2021 at the premium, if any, specified in the 2025 Senior Notes Indenture that will decrease over time, plus accrued and unpaid interest, if any, to the redemption date.
As of December 31, 2023, the Company offered or arranged loans to consumers under the names “CashNetUSA” and “NetCredit” in 37 states in the United States and under the name “Simplic” in Brazil.
As of December 31, 2024, the Company offered or arranged loans to consumers under the names “CashNetUSA” and “NetCredit” in 37 states in the United States and under the name “Simplic” in Brazil.
The operations for the Company’s domestic and international businesses are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial. 18 .
The operations for the Company’s domestic and international businesses are primarily located within the United States, and the value of any long-lived assets located outside of the United States is immaterial. 17 .
Opinion on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Enova International, Inc. and subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "financial statements").
Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Enova International, Inc. and subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements").
In addition, prior to September 15, 2021, at its option, the Company may redeem up to 40 % of the aggregate principal amount of the 2025 Senior Notes at a redemption price of 108.5 % of the aggregate principal amount of 2025 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2025 Senior Notes Indenture.
In addition, prior to September 15, 2021, at its option, the Company could have redeemed up to 40 % of the aggregate principal amount of the 2025 Senior Notes at a redemption price of 108.5 % of the aggregate principal amount of 2025 Senior Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date, with the proceeds of certain equity offerings as described in the 2025 Senior Notes Indenture.
Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years. 75 ENOVA INTERNATIONAL, INC.
Depreciation expense is generally provided on a straight-line basis, using the following estimated useful lives: Computer hardware and software 3 to 5 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements (1) 3 to 10 years (1) Leasehold improvements are depreciated over the lesser of the estimated useful life, remaining lease term, or 10 years.
For the year ended December 31, 2023 , the Company estimated the fair value of the stock option grants using the Black-Scholes option-pricing model based on the following weighted average assumptions: risk-free interest rate of 4.1 %, expected term (life) of options of 4.5 years, expected volatility of 58.9 % and no expected dividends.
For the year ended December 31, 2024 , the Company estimated the fair value of the stock option grants using the Black-Scholes option-pricing model based on the following weighted average assumptions: risk-free interest rate of 4.1 %, expected term (life) of options of 4.5 years, expected volatility of 55.9 % and no expected dividends.
Leases The Company has operating leases primarily for its corporate headquarters, other offices located in the U.S. and certain equipment. The Company’s leases have remaining lease terms of less than one year to eleven years .
Leases The Company has operating leases primarily for its corporate headquarters, other offices located in the U.S. and certain equipment. The Company’s leases have remaining lease terms of less than one year to ten year s.
The Credit Agreement contains certain prepayment penalties if it is terminated on or before the first and second anniversary dates, subject to certain exceptions. The loans mature on June 30, 2026 . The Company had outstanding letters of credit under the Credit Agreement of $ 0.8 million as of December 31, 2023 and 2022.
The Credit Agreement contains certain prepayment penalties if it is terminated on or before the first and second anniversary dates, subject to certain exceptions. The loans mature on June 30, 2026 . The Company had outstanding letters of credit under the Credit Agreement of $ 0.7 million and $ 0.8 million as of December 31, 2024 and 2023, respectively.
The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. Certain prior year amounts have been reclassified to conform to current year presentation. 73 ENOVA INTERNATIONAL, INC.
The financial information included herein may not be indicative of the consolidated financial position, operating results, changes in stockholders’ equity and cash flows of the Company in the future. Intercompany transactions are eliminated. Certain prior year amounts have been reclassified to conform to current year presentation.
The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings. 16 .
The assets and liabilities related to the VIEs are included in the Company’s consolidated financial statements and are accounted for as secured borrowings. 15.
ODK is the servicer of the loans securing the ODAS IV Securitization Notes. ODAS IV is the sole obligor of the ODAS IV Securitization Notes, which are not obligations of, or guaranteed by, the Company or ODK. The Company used the proceeds from ODAS IV for general corporate purposes.
ODK is the servicer of the loans securing the ODAS IV 2024-1 Securitization Notes. ODAS IV is the sole obligor of the ODAS IV 2024-1 Securitization Notes, which are not obligations of, or guaranteed by, the Company or ODK. The Company used the proceeds from the transaction for general corporate purposes.
Collateral for the ODAS IV Securitization Notes consists of, among other things, a revolving pool of small business loans originated or purchased by ODK. The net proceeds of the ODAS IV Securitization Notes were used to purchase small business loans from ODK that were pledged as collateral for the ODAS IV Securitization Notes and to fund a reserve account.
Collateral for the ODAS IV 2024-1 Securitization Notes consists of, among other things, a revolving pool of small business loans originated or purchased by ODK. ODAS IV used the net proceeds of the private offering to purchase small business loans from ODK that were pledged as collateral for the ODAS IV 2024-1 Securitization Notes and to fund a reserve account.
The ODAST III Securitization Notes are, and future series of notes, if any, issued under the Base Indenture will be, secured by and payable from such series pro rata allocation of collections received on a revolving pool of small business loans transferred from time to time from the Company to ODAST III.
The ODAST III Securitization Notes and future series of notes, if any, issued under the Base Indenture were secured by and payable from such series pro rata allocation of collections received on a revolving pool of small business loans transferred from time to time from the Company to ODAST III.
The Company recorded compensation expense of $ 0.5 million, $ 0.8 million and $ 0.7 million for SERP contributions for the years ended December 31, 2023, 2022 and 2021, respectively. The NQSP and the SERP are non-qualified deferred compensation plans for which the Company holds securities in rabbi trusts to pay benefits.
The Company recorded compensation expense of $ 0.9 million, $ 0.5 million and $ 0.8 million for SERP contributions for the years ended December 31, 2024, 2023 and 2022, respectively. The NQSP and the SERP are non-qualified deferred compensation plans for which the Company holds securities in rabbi trusts to pay benefits.
At December 31, 2023 and 2022 , there were no assets or liabilities recorded at fair value on a nonrecurring basis.
At December 31, 2024 and 2023 , there were no assets or liabilities recorded at fair value on a nonrecurring basis.
Under the NCR 2022 Securitization Facility, receivables are sold to a wholly-owned subsidiary of the Company (the “NCR 2022 Debtor”) and serviced by another subsidiary of the Company. The NCR 2022 Debtor will issue notes with an initial maximum principal balance of $ 125.0 million, which are required to be secured by 1.25 times the drawn amount in eligible receivables.
Under the NCR 2022 Securitization Facility, receivables are sold to a wholly-owned subsidiary of the Company (the “NCR 2022 Debtor”) and serviced by another subsidiary of the Company. The NCR 2022 Debtor has issued notes with an initial maximum principal balance of $ 125.0 million, which were required to be secured by 1.25 times the drawn amount in eligible receivables.
During the year ended December 31, 2023 , the Company repurchased $ 81.3 million of principal amount of the 2024 Senior Notes for an aggregate cash consideration of $ 81.1 million plus accrued interest, respectively.
During the year ended December 31, 202 3, the Company repurchased $ 81.3 million of principal amount of the 2024 Senior Notes for an aggregate cash consideration of $ 81.1 million plus accrued interest.
The 2024 Senior Notes are unsecured debt obligations of the Company, and are unconditionally guaranteed by certain of its domestic subsidiaries.
The 2024 Senior Notes were unsecured debt obligations of the Company and were unconditionally guaranteed by certain of its domestic subsidiaries.
The 2025 Senior Notes are unsecured debt obligations of the Company, and are unconditionally guaranteed by certain of its domestic subsidiaries.
The 2025 Senior Notes were unsecured debt obligations of the Company and were unconditionally guaranteed by certain of its domestic subsidiaries.
The First Amendment increased the total commitment amount to $ 515.0 million with no change to the interest rate or maturity date. The proceeds of the loans under the Credit Agreement may be used for working capital and other general business purposes.
The Second Amendment increased the total commitment amount to $ 665.0 million with no change to the interest rate or maturity date. The proceeds of the loans under the Credit Agreement may be used for working capital and other general business purposes.
The balance of unrecognized tax benefits for temporary items as of December 31, 2023, 2022 and 2021 was $ 125.9 million, $ 76.1 million and $ 33.6 million, respectively. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.
The balance of unrecognized tax benefits for temporary items as of December 31, 2024, 2023 and 2022 was $ 75.6 million, $ 125.9 million and $ 76.1 million, respectively. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.
For Company officers and certain employees, the shares are to be issued upon vesting of the RSUs generally over a period of four years . Shares for RSU awards granted to members of the Board of Directors vest and are issued twelve months after the grant date.
For Company officers and certain employees, the shares are to be issued upon vesting of the RSUs generally on an annual basis over a period of four years . Shares for RSU awards granted to members of the Board of Directors vest and are issued twelve months after the grant date.
The Company used a portion of the net proceeds of the 2025 Senior Notes offering to retire existing indebtedness, to pay the related accrued interest, premiums, fees and expenses associated therewith. The remaining amount was used for general corporate purposes.
The Company used a portion of the net proceeds of the 2025 Senior Notes offering to retire existing indebtedness, to pay the related accrued interest, premiums, fees and expenses associated therewith. The remaining amount was used for general corporate purposes. 88 ENOVA INTERNATIONAL, INC.
Consumer loans includes installment loans and line of credit accounts. The Company provides financing to small businesses through either installment loans, a receivables purchase agreement product (“RPAs”) or a line of credit account. RPAs represent a right to receive future receivables from a small business.
Consumer loans include installment loans and line of credit accounts. The Company provides or has provided financing to small businesses through either installment loans, a receivables purchase agreement product (“RPAs”) or a line of credit account. RPAs represent a right to receive future receivables from a small business.
Draw fees on line of credit accounts are generally recognized at the time of draw. Revenue on RPAs is recognized over the projected delivery term of the agreement. CSO fees are recognized over the term of the loan. Origination fees are charged to customers on certain installment loan products and are recognized upon origination.
Draw fees on line of credit accounts are generally recognized at the time of draw. Revenue on RPAs is recognized over the projected delivery term of the agreement. CSO fees are recognized over the term of the loan. Origination fees are charged to customers on certain installment loan products and are recognized upon origination. 72 ENOVA INTERNATIONAL, INC.
The revolving period during which a certain portion of collections received on the portfolio of loans held by ODAST III may be used to continue to purchase loans from certain of the Company’s subsidiaries ends in April 2024. The ODAST III Securitization Notes have a final maturity in May 2027 with optional prepayment beginning in May 2023.
The revolving period during which a certain portion of collections received on the portfolio of loans held by ODAST III could be used to continue to purchase loans from certain of the Company’s subsidiaries ended in April 2024. The ODAST III Securitization Notes had a final maturity in May 2027 with optional prepayment beginning in May 2023.
The Company had outstanding borrowings as of December 31, 2023 and 2022 , of $ 356.0 million and $ 309.0 million, respectively, under the Credit Agreement. The loans bear interest, at the Company’s option, at the base rate plus 0.75 % or the SOFR rate plus 3.50 %.
The Company had outstanding borrowings as of December 31, 2024 and 2023 , of $ 453.0 million and $ 356.0 million, respectively, under the Credit Agreement. The loans bear interest, at the Company’s option, at the base rate plus 0.75 % or the SOFR rate plus 3.50 %.
The ODR 2021-1 Securitization Facility Class A note bears interest at a rate per annum equal to a benchmark rate (currently the lender’s asset-backed commercial paper rate) plus an applicable margin of 2.60 %. The ODR 2021-1 Securitization Facility 86 ENOVA INTERNATIONAL, INC.
The ODR 2021-1 Securitization Facility Class A note bears interest at a rate per annum equal to a benchmark rate (currently the lender’s asset-backed commercial paper rate) plus an applicable margin of 2.60 %.
The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date. 100 ENOVA INTERNATIONAL, INC.
The Company measures the fair value of its investment in unconsolidated investee using Level 3 inputs. Because the unconsolidated investee is a private company and financial information is limited, the Company estimates the fair value based on the best available information at the measurement date.
Weighted-average interest rates on long-term debt were 8.28 % and 6.35 % for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and 2022, the Company was in compliance with all covenants and other requirements set forth in the prevailing long-term debt agreements.
Weighted-average interest rates on long-term debt were 9.31 % and 8.28 % for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the Company was in compliance with all covenants and other requirements set forth in the prevailing long-term debt agreements.
Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time. 77 ENOVA INTERNATIONAL, INC.
Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time.
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