Enova's bank deal collapses, but core lending stays strong
Bank acquisition abandoned after regulator roadblock Enova scrapped its $369 million plan to buy Grasshopper Bank after regulators gave no clear path for a nonbank to own a bank. The stock fell about 25% because that deal was expected to add over 25% to earnings per share. The company still expects strong profit growth.
This is the single biggest new event of the period and the main reason ENVA moved sharply.
Core lending business growing fast Enova's second-quarter results showed loan originations up 27% to nearly $2.3 billion and revenue up 22% to $929 million, with fewer loans going bad. Management raised its 2026 profit growth forecast to 30-35%. This strong underlying business supports the stock even after the bank deal setback.
It shows the company's main business is healthy and is the positive counterweight to the regulatory failure.
Fresh funding and buybacks support earnings per share OnDeck, Enova's small-business lending arm, raised $500 million by packaging loans into bonds, giving it more money to lend. Enova also bought back $51.8 million of its own stock and plans to speed up repurchases. Fewer shares outstanding means each remaining share earns more.
These actions show how Enova funds growth and boosts per-share earnings without the bank deal.