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    How Investors May Respond To OneMain Holdings (OMF) Strong Q4 Earnings And Renewed Capital Returns

    Simply Wall St·02/11/2026 18:33:50
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    • In early February 2026, OneMain Holdings reported higher fourth-quarter 2025 net income of US$204 million and full-year net income of US$783 million, alongside net charge-offs of US$492 million that were modestly above the prior year.
    • The company also reaffirmed its focus on shareholder returns with a US$1.05 quarterly dividend and completion of additional share repurchases totaling over US$70 million across two programs.
    • Now we’ll examine how stronger earnings alongside a fresh US$1.05 dividend declaration affects OneMain’s existing investment narrative.

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    OneMain Holdings Investment Narrative Recap

    To own OneMain, you need to be comfortable with a branch-heavy, nonprime consumer lender that pairs higher credit risk with meaningful capital returns. The latest results show higher earnings alongside slightly elevated net charge-offs, which does not materially change the near term catalyst of loan growth and credit normalization, but it keeps credit quality as the key risk investors should watch.

    The reaffirmed US$1.05 quarterly dividend sits at the center of this story, because it ties the company’s improved profitability directly to shareholder returns. When combined with ongoing share repurchases, the dividend highlights how much of OneMain’s thesis now revolves around consistent capital distribution, even as credit costs like the US$492 million of quarterly net charge-offs remain an important swing factor.

    But investors should also be aware that if credit losses move meaningfully above the already high net charge off range, then...

    Read the full narrative on OneMain Holdings (it's free!)

    OneMain Holdings' narrative projects $6.8 billion revenue and $1.3 billion earnings by 2028. This requires 34.9% yearly revenue growth and about a $636 million earnings increase from $664.0 million today.

    Uncover how OneMain Holdings' forecasts yield a $72.29 fair value, a 17% upside to its current price.

    Exploring Other Perspectives

    OMF 1-Year Stock Price Chart
    OMF 1-Year Stock Price Chart

    Four Simply Wall St Community valuations for OneMain span about US$72 to US$116 per share, reflecting very different expectations. Against this, elevated net charge offs and sensitivity to consumer stress remain central issues that could shape how those valuation views evolve, so it is worth weighing several of these perspectives before deciding how OneMain fits in your portfolio.

    Explore 4 other fair value estimates on OneMain Holdings - why the stock might be worth just $72.29!

    Build Your Own OneMain Holdings Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.