OneMain Holdings Q3 2026 Earnings Call Transcript

OneMain Holdings (NYSE:OMF) reported third-quarter financial results on Friday. The transcript from the company’s third-quarter earnings call has been provided below.

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View the webcast at https://events.q4inc.com/attendee/761133515

Summary

OneMain Holdings reported strong financial performance for Q3 2026, with capital generation increasing 4% year over year to $284 million and receivables growing 9% year over year to $28 billion.

The company saw improvements in credit performance, with decreases in delinquency rates and net charge-offs, and anticipates lower year-over-year losses in 2027.

Strategic initiatives included ongoing product innovation in personal loans, growth in the auto finance and credit card segments, and technological investments in digital capabilities and AI for operational efficiency.

The company raised $2.3 billion in August through three separate issuances, strengthening its balance sheet and demonstrating strong market access.

Management expressed confidence in continued profitable growth, emphasizing disciplined execution, conservative underwriting, and strong balance sheet management.

Full Transcript

OPERATOR

Good morning everyone. Welcome to the OneMain Holdings third quarter 2026 earnings conference call and webcast. Hosting the call today from OneMain Holdings is Peter Pullan, Head of Investor Relations. Today’s call is being recorded. It is now my pleasure to turn the floor over to Mr. Peter Pullan. Please go ahead, sir.

Peter Pullan (Head of Investor Relations)

Thank you, operator. Good morning everyone and thank you for joining us. Let me begin by directing you to page 2 of the third quarter 2026 investor presentation, which contains important disclosures concerning forward-looking statements and the use of non-GAAP measures. The presentation can be found in the Investor Relations section of the OneMain Holdings website. Our discussion today will contain certain forward-looking statements reflecting management’s current beliefs about the company’s future financial performance and business prospects, and these forward-looking statements are subject to inherent risks and uncertainties and speak only as of today. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in our earnings press release. We caution you not to place undue reliance on forward-looking statements.

If you may be listening to this via replay at some point after today, we remind you that the remarks made herein are as of today, October 30th, and have not been updated subsequent to this call. Our call this morning will include formal remarks from Doug Schulman, our Chairman and Chief Executive Officer, and Jenny Osterhout, our Chief Financial Officer. After the conclusion of our formal remarks, we will conduct the question and answer session. I’d like to now turn the call over to Doug.

Doug Schulman (Chairman and Chief Executive Officer)

Thanks, Pete. Good morning everyone. Thank you for joining us today. Let me begin with a few highlights from the quarter before I discuss momentum across the company as we continue to deliver profitable growth through disciplined execution and progress against our strategic priorities. Financial performance was great this quarter. Receivables continue to grow. Credit is moving in a decidedly positive direction. We further fortified our already strong balance sheet and capital generation continues to grow. Capital generation for the quarter was $284 million, up 4% year over year. We’re seeing excellent growth across our business while maintaining our conservative underwriting posture. The growth is driven by ongoing product innovation in our personal loans business and continued disciplined execution in our newer products, auto finance and credit cards.

Receivables reached $28 billion in the quarter, which is a 9% year over year growth. We saw good credit performance in the quarter. Our consumer loan 30 to 89 delinquency declined 12 basis points year over year, better than the 3 basis point decline we saw last quarter. Year to date the decline has been 28 basis points, which compares positively to low single digit declines in both the prior year and pre-pandemic years. We also saw improvement in later stage delinquencies, with 90-plus delinquencies declining 9 basis points year over year compared to a 3 basis point increase last quarter.

These improving delinquency trends point to lower losses going forward, and we expect lower year over year losses in 2027, getting us closer to our longer term normalized loss range. For consumer loans, CNI net charge-offs were 7.2% and consumer loan net charge-offs were 6.9%, both down significantly from last quarter. We also continued to see good recoveries resulting from our efforts over the past several years to improve recovery capabilities across the business.

We had 7% year over year growth in our consumer loan business. In our personal loan business, secured lending, which carries lower losses, accounted for nearly 60% of our originations this quarter, and our enhanced debt consolidation offering, new home fixtures secured loan offering, and increased use of bank data all contributed to higher originations in personal loans. We are pleased with our loan growth, but as I’ve said before, growth is an outcome.

Great lending businesses start with a disciplined credit box and build on that by innovating and executing on a thousand little things that add up to meaningful value creation across OneMain Holdings. Our team members are continuously finding ways to make better use of the rich data our business generates, refine our marketing to reach more customers, better tailor our offers to increase pull-through rates, improve our digital experience to make it easier for customers to do business with us, and drive efficiencies in our branch and operations.

It is this focus on continuous improvement and execution that is driving the profitable growth that we see today. Turning to auto finance, receivables grew 16% year over year to $3.2 billion. We’ve increased application flow while maintaining our conservative underwriting standards by improving Salesforce productivity, expanding our dealer network, and deepening dealer relationships to generate more applications per dealer. As this business continues to mature, we expect to do more volume with our existing dealers. Importantly, credit performance in auto finance remains good and in line with our expectations.

Our credit card business delivered another strong quarter with excellent results across all key metrics, and we now have 1.5 million customer accounts. Receivables have now reached $1.4 billion. Our expanded card offering and focus on customer experience are helping attract new customers and drive digital engagement. We are seeing this materialize both in our results and also reflected in frequent usage of our highly rated mobile app. Credit performance in the card business continues to improve, building on the momentum from the first half of the year with lower losses and better delinquency trends compared to a year ago, and we continue to drive down unit cost and generate greater operating leverage as we scale. We are very happy with the trends in our credit card business, which underscore the value this business brings to OneMain Holdings in terms of capital generation and diversification.

The strength of our balance sheet and funding program were again evident this quarter. In August, we raised $2.3 billion at very attractive pricing with tight spreads through three separate issuances on a single day. Once again, we demonstrated our leading access to the capital markets, even further fortifying our incredibly strong balance sheet with a long liquidity runway. Let me spend a minute discussing how we’re investing in technology and digital capabilities to make it easier for customers to do business with us, support profitable growth, and improve efficiency. Over the past year we built a new mobile and web experience that has brought loans, credit cards, and our My Money financial wellness tool together in one place. We’ve now made this new mobile app experience available to all of our customers. Customers can more easily manage their accounts, access tools to help with their financial lives, and explore personalized offers.

Across our products, we’re seeing growing engagement with our digital channels, creating additional opportunities to serve our existing customers, attract more customers, and make our business more efficient. We also recognize how AI could have significant potential across our business and we’re approaching it with discipline. Our approach is to apply the technology in those places where we see the clearest opportunities, starting with targeted use cases and expanding where the evidence supports further investment. Our internal use has focused on deploying AI to improve how our team members work today, with an eye towards automating high-volume manual processes and operations, helping team members in corporate functions work more effectively, and driving productivity and innovation in product and software development.

While we’re also starting to pilot AI in selected lower-risk customer-facing interactions, these use cases carry a very high bar for accuracy, transparency, and trust, so we’ll move very deliberately there and scale over time only when the results and customer experience support it. As we expand our use of AI, we have put in place a governance framework in which security, privacy, human accountability, and customer trust are foundational to how we deploy the technology.

And it’s also important to remember that our branch network, deep customer relationships, and personalized service will remain key differentiators of OneMain Holdings, particularly when, as adoption of AI increases, customers will ascribe more value to trusted human interactions and guidance. Let me briefly touch on the consumer. The positive credit trends we see on our book are pointing to continued resiliency in our consumer base. While higher oil prices and some inflationary pressure continue to create uncertainty in the macro picture, the labor market remains strong. Importantly, we don’t underwrite to the generalized consumer. We offer personal loans, credit cards, and auto loans to customers who meet our conservative underwriting standards.

At the end of the day, we hold a nationwide portfolio of risk which is only a subset of the overall non-prime consumer base, and our data points to a stable and resilient customer. Turning to capital allocation, our priorities remain unchanged. We will continue to extend credit to every customer that meets our risk-return criteria, and we will invest in the business to innovate, meet customer needs, drive efficiency, and create long-term shareholder value. Our regular dividend, currently $4.20 per share on an annualized basis, represents a 7% yield at today’s share price. In the third quarter we repurchased 538,000 shares for $34 million, bringing our total repurchases year to date to $171 million.

As I have said, all things being equal, we expect incremental capital returns to be more weighted towards share repurchases going forward while still maintaining our current dividend. As you can see, we had another strong quarter. OneMain Holdings’ best-in-class data science and underwriting, experienced team with unparalleled expertise in serving the non-prime consumer, our digital and technology innovation, diverse product offering, and strong balance sheet create unique competitive advantages for our company, which are evident in the results this quarter. We are focused on building on these strengths by executing our strategic priorities and driving profitable growth across the business.

With that, let me turn the call over to Jenny. Thanks, Jenny. We had another strong quarter and I feel great about the trajectory of our business. Growth accelerated across all products, further demonstrating our ability to grow while maintaining our consistent and conservative underwriting posture, and credit performance improved, providing a clear path to lower and more normalized losses moving into 2027. These trends demonstrate the strength of our core business and the value of our investments in new products and innovation in driving profitable growth.

Looking ahead, we will build on this progress through disciplined execution to drive further gains in performance. Combined with our strong balance sheet and consistent capital access, we are well positioned to deliver sustained growth in capital generation and strong returns to our shareholders for the years to come. Before I close, I’d like to thank our team members across all of OneMain whose hard work and dedication are at the heart of our success and our mission to help hardworking Americans improve their financial well-being. With that, let me open it up to questions.

OPERATOR

Thank you. If you’d like to ask a question, you may press star one from your telephone keypad. We’ll now go to our first question, which is from the line of John Hecht with Jefferies. Please proceed with your question.

John Hecht (Analyst)

Morning, guys. Thanks for taking my questions first.

Doug Schulman (Chairman and Chief Executive Officer)

Morning, John.

John Hecht (Analyst)

Thanks. First one is just related to the accelerating growth in receivables. And I know some of this is related to the success of card and the auto segments, but you also have very good momentum in personal loans. And we’ve also seen other—some of them are peers, some of them may be, call it indirect peers of yours—that have also had pretty strong growth and momentum in that category. So, Doug, I guess, is there something going on like a structural shift where maybe borrowers are using personal loans more than alternative and the market is shifting, or what’s your perspective on what’s going on there?

Doug Schulman (Chairman and Chief Executive Officer)

You know, I don’t think there’s necessarily a structural shift, or at least we’re not seeing evidence of it. I think we’re picking up market share, and we’re especially pleased with the growth given how tight our credit box is and that we’re staying disciplined around that. And so I think the growth we’re generating—you know, we’ve been doing a lot of innovation around our personal loan product. I’ve talked about debt consolidation, a home fixture secured product, bank data—about 40% of our originations now people share bank data with us.

That’s up from 30% a year ago. That’s a much more streamlined process than having to produce multiple pay stubs, get them verified. So it’s just an easier process for folks. A lot of our digital processes are adding, and obviously we have very good brand pull-through because customers know we’ve got an excellent product at a fair price, that we treat them well, that we work with them when they have issues. And then you add to that, about five years ago we decided to expand into auto and credit card, and we have done it in a very slow, disciplined manner, again with super tight credit posture. And those are now maturing and coming to bear. So, you know, we don’t have evidence that it’s a structural shift. We think it’s just us continually improving the business and taking some market share from others.

John Hecht (Analyst)

Okay, that’s great color. And then in the card segment, you know, still good growth and, I guess, good credit trajectory there. Maybe can you talk about the customer behavior? How much of these are, call it, unique customers versus cross-sells? What—when you—is the—what’s the behavior of the customer? How quickly do they ramp in terms of revolving and so forth? Maybe just a little bit of detail there.

Doug Schulman (Chairman and Chief Executive Officer)

Yeah, look, as I said, we actually launched our card business five years ago. We started with a whole bunch of test cases to see how our marketing landed, how our product sets landed, what was line usage, and most importantly what was credit. And then we expanded places where we had good credit and the return on receivables and long-term profitability was going to meet our return hurdles. And so we’ve really been kind of step by step moving into the market.

I think part of what you’re seeing is just more refined models with very high confidence in credit, and you’re seeing that come through in our credit results. We’ve also now refined and have more options in the market—lower fees, higher rewards; no fees with modest rewards. So for different credit segments we’ve got a variety of cards, and we now have more of a full-spectrum offering that allows people to pick the kind of card they want with OneMain, whereas we started with just two basic cards.

And then we’ve really refined our analytics, and so we’re now able to market to customers that are lower risk and more likely to use their line. So we’ve seen a little bit more line usage early on, but that’s specific because we’ve been targeting those customers in our marketing material. And so I think it’s a mix of things that have led us—I think line usage is pretty similar; it ramps in a similar way. We do now have a much more refined line-increase and line-decrease program, which, you know, creates better credit on the decrease side—obviously a little growth on the increase side.

So I think it’s just an amalgamation of five years of experience together with our decades of experience serving the non-prime consumer, and you’re seeing really all the metrics come together.

John Hecht (Analyst)

Great, thanks very much.

OPERATOR

Our next question is from the line of Aaron sigmavics with Securities. Please proceed with your question.

Aaron sigmavics (Analyst)

Thanks. I wanted to touch on credit. I think Jenny had said that you’re seeing roll rate trend improvements. When I look at the, I guess, roll rates from late to charge, at least on the metrics in my model, it looks like they’re actually a little bit worse this quarter. But what roll rates were you referring to when you were talking about credit?

Jenny Osterhout (Chief Financial Officer)

Yeah, I’m looking at the year-over-year roll rates. So I think when I look at—let’s just say the 30 to 89 to 90-plus or the 90-plus to loss—that year-over-year roll rate is what I’m looking at and starting to see improvement. And I think we’d started to see this pattern in the first quarter and talked a bit about it last quarter, and we’re really starting to see that come out. When I look at losses in the third quarter, as we went throughout the quarter, we also saw that year-on-year trend get better. So if I then look at our year-on-year losses, by the last month we were seeing better year-on-year losses. So I do think that’s how I’m thinking about it. I think that might be slightly different than how you’re looking at it, but I hope that helps.

Aaron sigmavics (Analyst)

Yeah, we can kind of discuss it later with IR. But the other question I have is also credit related: as you’re adding Foursight to the delinquencies, how does that change the historical seasonality aspects of it? And also, the stronger growth in auto and card—what are you seeing from credit seasoning? Is that one of the aspects that’s sort of leading to this more stubborn level of charge-offs, kind of notwithstanding the remaining 3% of legacy book?

Jenny Osterhout (Chief Financial Officer)

So let me break that down into a couple pieces. Let’s just start with cards, because that’s probably the easier piece to pull apart. I mean, we’ve obviously been seeing really good trends on cards, both in delinquency and in losses, and that is helping and clearly a good trend. And then when you look at consumer loans, which now we’ve got including Foursight, it changes some of the dynamics that we have. Meaning, traditionally—and I talked a little bit about this earlier—you have higher delinquencies in auto and then better rolls to loss. I think we really see the same trends this quarter. I’d just say across the board, when I look at with and without Foursight. So I don’t think it’s changing the trends. And you can see it—there’s an appendix that shows you without Foursight in the presentation.

But overall I’d say we’re really seeing the improvements in both delinquency and losses across all products. And if I look back on Foursight, when we bought them, they were slightly more prime or slightly higher on non-prime, I would say. And we’ve been looking at finding where is the best place for us to compete. So there are differences there where we’re moving the book. But overall everything is performing in line with our expectations, and the trends are moving in the right direction.

Aaron sigmavics (Analyst)

Thank you.

OPERATOR

The next questions are from the line of Mehir Bhatia with Bank of America. Please proceed with your question.

Mehir Bhatia (Analyst)

Hi, thanks for taking my question. I wanted to maybe start just staying on credit. I think you talked about a path to normalized losses in ’27. Maybe just talk a little bit about what gives you that confidence, and are the bank data loans performing better? And really interested to see, like, what do you think could go wrong for 2027 to not be a better loss year given trends currently?

Jenny Osterhout (Chief Financial Officer)

Gotcha. You’re right—we did say we see a good path forward. And when we think about getting to those historical levels, we’re really focused on the consumer loan portfolio, so take cards out of that equation. And we think we’re getting towards that loss level in 2027—getting towards that normalized, which would get closer to 7%, which is sort of the top end of that normalized range for next year. In terms of—You know, that sort of assumes a steady macro environment. So I think to the extent you saw some major shifts in inflation or unemployment, obviously those are the two big pieces that would affect that for next year. I always look at sensitivities on both sides. I’d say if we were to start to see some improved—further improvements—I mean, I think we still don’t—we haven’t come out with our full ’27 guide, and so when we come back next quarter, we can give you a better view.

But I think there’s some potential, you know, there’s some range of outcomes that we’re looking at.

Mehir Bhatia (Analyst)

Got it. Maybe just turning back to card returns for a second. Do the card returns—do cards currently clear your return hurdle after the upfront reserve? And as the line increases expand, what keeps losses from drifting out as the book seasons?

Jenny Osterhout (Chief Financial Officer)

So I’d say we really look at capital generation, which is not focused on the build—the CECL build. So I’d say in terms of capital generation, the credit card book is generating capital. And it is—As I look at its path, it is one of the only products that I think you can have in the consumer lending business that will get you to a CapGen ROR that is above a personal loan CapGen ROR. And we’re already on that path and on the positive side of that path.

So I think we’re very happy with the build-out of that J-curve. So I think in general on cards we’re feeling quite good. I feel like every metric is moving in the right direction on both the top line and the bottom line. And when you sit down and look at the continued, I’d say, lower-hanging fruit that still sits with the card of where we can make further improvements and continue to conservatively grow, we feel very good.

Doug Schulman (Chairman and Chief Executive Officer)

Our team can take you through it though. But there’s, you know, it’s a different cycle of losses. I mean, with a personal loan or an auto loan, you immediately have the whole loan on your book. You’re generating interest and it has very low losses the first year and then more losses as you get to out years. With the card, you don’t have the full line. It takes, you know, nine months to a year for the line to build. So you’re not immediately getting revenue.

And then losses actually peak a lot earlier in the first couple of years and then you’ve got a stable customer in out years. And so it’s a different profitability trend in card. And we run the company for the long term and we run it based on CapGen, which is just cash on cash. And you’ve got to, you know, kind of ignore the CECL because you take big reserves up front. There’s some penalties in card, but it really sets the business up well for, you know, medium to longer term.

OPERATOR

Thank you. The next question is from the line of Moishe Ehrenbuk with TD Cowen. Please proceed with your question.

Moishe Ehrenbuk (Analyst)

Great, thanks. Was hoping maybe to put a little bit more of a fine point on the charge-off improvement. I guess when you look at the specific factors. Right. I mean, obviously to the extent the card is growing faster, that will be somewhat of an upward pressure. But I would say, you know, better overall growth, lower losses from the back books and recoveries that you mentioned. Now, does it seem that we should see an improvement level that’s better than what you’re seeing currently in delinquency performance?

Right. In other words, if you’ve got 20 basis points year-over-year improvement in delinquency performance, should we be looking for a level of improvement in losses that’s kind of better than that and, if it’s not too much, maybe just kind of extend that to thinking about the reserve as well?

Jenny Osterhout (Chief Financial Officer)

Yes, let me take that. So you’re right. We are seeing, let me just think about the 20 basis point improvement in delinquency. I think really what you can do is take a look at our second quarter delinquency and you translate that forward for the fourth quarter and that should get you to a year-on-year improvement. If you take the consumer loan delinquency, you’re going to apply more like a 2.4 or 2.5 roll rate to that. So just to help on the math point there, and that can get you to, I think you’re in the range.

It could be, I think you’re spot on. It could be slightly more than the 20 basis point improvement that we saw. But, you know, it’s in that range for the fourth quarter. And then you asked also about reserves, you know, the reserve coverage and how to think about that going forward. I mentioned that, you know, we’d expect for it to go up to about 11.8 in the fourth quarter. I do think there’s going to be some pressure coming from cards, but I also see some opportunity in the longer term, you know, as the book improves. So I really think of that 11.8 as, you know, looking at the fourth quarter and then over time I think there’s, you know, some potential for those two, you know, sort of the tailwinds and the headwinds to weigh each other out a little bit in terms of the reserve for the longer term.

I think I’ll probably come back next quarter and give you more of a view. But it depends so much on how you weight the consumer loan portfolio versus the card. Just that two times loan reserve rate that we have for cards versus, you know, consumer loans. Even these smaller changes in cards as a percentage of the book can affect that loss ratio going forward.

Moishe Ehrenbuk (Analyst)

Yeah, I mean people talk about it offline but, you know, a lot of the other card players are closer to 1.6 or 1.7, not 2. And your card losses are getting better, maybe just a quick one. Just on the yield, you know, you highlighted the pressure from faster secured growth, but you’ve also got, you know, the card, you know, which you’ve mentioned, the yield is almost, you know, the revenue yield, maybe not all interest, but the revenue yield almost 35%.

I guess, you know, as we sort of think about the mix of, you know, of your business in, you know, in 27, you know, how do you think about it from, I mean, it feels like maybe there is a little bit lower yield, I guess, between auto and, you know, it’s a secured personal, but that should also be contributing, I guess from a standpoint of, you know, of a loss rate. So I don’t know if you can kind of think about that and yeah, kind of. Are there any things we should kind of take away from there?

Jenny Osterhout (Chief Financial Officer)

Yeah, let me. So today we sort of have those two separated out. We have our consumer loan yield and then we have credit card revenue yield. And, you know, what I’m hearing is maybe I do a total yield because it would be helpful for everybody. But if I take the consumer loan yield that’s been relatively flat and you’re right, that’s some of the movement to secured that we’ve seen, which is a trade I think we’re quite happy to make in terms of looking for the best ROE outcome.

And I think there is some pressure there. There’s also some pressure there from auto. And so we’ve said we’re at approximately a 60% secured mix on consumer loans. You know, I think we’re probably going to be in around that ballpark as the auto business grows. And depending on what we do sort of with personal loans, you could see that potentially grow some more and that’ll put more pressure there. So that’s right. But credit card revenue yield, I mean, we talked about the 34.9%. I’m not, you know, that’ll go a little bit. I don’t expect for it to continue to just build and build and build. We’re pretty close to where I would expect for it to start to peak. You get some benefit there also from your, you know, it’s both interest and fees. And I do think that is helpful as that business begins to grow and it’s obviously helpful to our overall return. So I, you know, I think in terms of your statement and your hypothesis, we should expect for that to grow going forward.

And, you know, if you think in terms of a total yield type metric.

OPERATOR

Thank you. The next question is from the line of Terry Mott with Barclays. Please proceed with your question.

Cordelia (Analyst)

Hi, good morning. This is Cordelia on for Terry. Thanks for taking my question. Just a quick one on recoveries this year. They’ve been pretty strong. Could you take a moment to touch upon what is driving the continued strength and just the durability of it moving forward and sort of what investments you have made to improve it?

Jenny Osterhout (Chief Financial Officer)

Hi, thanks. Yeah, we’re pretty pleased with the strength of our recoveries and we’ve talked about it a couple times throughout this year. But in the third quarter we continued to see that recoveries increased about 15% year on year. And that recovery ratio as a percent of A&R was about 1.56. So that’s better than what we’d seen in the third quarter of last year. And so those strong recoveries, where are they coming from? It’s really a lot of it is improvements that we’ve made and I talked about this on the last call, but it’s about how we set up our operations.

Who’s making calls, when are you texting versus calling, who are you texting, at what time of day are you texting or calling — all of these pieces. So you can think of various analytical models that are put together to help you improve your recoveries, and that’s the internal recoveries. We’re obviously always looking at sales as well and doing the analysis. Is it better to hold those customers on our balance sheet and hold them for ourselves to recover or should we sell them to somebody else?

And that’s really more of an economic trade and a decision based on where the market is and our inventory and what it looks like. So I’d say most of this improvement this quarter is really due to those internal strategies that we’ve put in place. And in terms of the durability, I mean, I think that’s part of the game. You’ve got to constantly get better. That’s how we run the company, is just to constantly look for ways that we can improve.

OPERATOR

Our next question is from the line of Michael Dunleavy with Deutsche Bank. Please proceed with your question.

Michael Dunleavy (Analyst)

Hi, thanks for taking my question. You talked about the impact on credit metrics as card becomes a bigger portion of the portfolio. And, you know, you mentioned the card yield as well — very high on the revenue side. But just to get a full picture of a mix shift, is there a normalized CapGen return profile that you’d expect on card versus personal loan versus auto just to have in the back of our head?

Jenny Osterhout (Chief Financial Officer)

Sure. I mean, let’s see. In terms of CapGen ROR, I can give you sort of the general model, which would be, you know, your personal loans, you’re going to be in the 4 to 5% range on a CapGen ROR. On auto, you’re looking at something slightly lower, but, you know, that comes with lower losses. So we like that diversification there. And then on cards, I think it’s going to build over time, eventually getting to a run rate where it’s slightly higher than your personal loan.

So that’s sort of how I would think about it over time. You know, you’re building and obviously some of that has to do with where you decide to play in the market. It’s about finding where, you know, auto is a highly competitive place, so you need to sort of find your niche and your appetite on credit. And, you know, we’ve come out saying that on our card book we’re looking for more like a 15 to 17% loss rate. That sort of puts us in the niche of where we’d like to play on cards.

So, you know, really, you can break down your overall — you know, we’re looking at a 20 ROE across all of these products. That’s how I’d think about it. And then the market dynamics and how you look at yields and losses, our OPEX and our interest expense is sort of how you get to that calculation. But overall, I think that should give you a sense on the different CapGen RORs.

Michael Dunleavy (Analyst)

Yeah, that’s perfect. Thank you. And then on the reserve rate — about it potentially moving towards around 11.8. Could you just talk about how much of that might be driven by the mix shift between card and consumer loan and how much might come from the underlying rates on each of those?

Jenny Osterhout (Chief Financial Officer)

Oh, I would expect that to come from the mix shift. I would not expect for that to come from increases in the underlying rates. So, I mean, we’re always looking at our models and, you know, you’re looking at the life — when you put something up for CECL, you’re looking at the life of the loan — but I think it’s much more based on the weighting.

Michael Dunleavy (Analyst)

Okay, perfect. Thank you.

OPERATOR

The next question is from the line of Don Fandetti with Wells Fargo. Please proceed with your question.

Don Fandetti (Analyst)

Yes, can you talk about the second look auto loan volume and credit performance? And then I guess, you know, while you talk about that, is that something you could do in cards as well or is that more about long term?

Doug Schulman (Chairman and Chief Executive Officer)

Yeah, I mean we told you before we have a partnership with Ally where we get a second look. We’ve got a couple other small ones and, you know, so far so good. We’ve got good application flow. The loss profiles — you know, very similar to, or the credit profile overall is very similar to the rest of our auto book. Theoretically we could do that with card. We actually, you know, right now are getting plenty of demand and our BrightWay card is resonating in the market and we like what we see.

So, you know, we always are looking for partnerships, new origination channels in all of our products and are honing them. So theoretically we could, but it’s not something we’re actively pursuing right now.

Don Fandetti (Analyst)

Got it. Thanks.

Doug Schulman (Chairman and Chief Executive Officer)

We are up against the hour and so let me thank everyone for joining us. Obviously our team is here for any follow-up and hope everyone has a great day.

OPERATOR

Thank you, Mr. Schulman. Thank you, Ms. Osterhout. Ladies and gentlemen, this concludes today’s OneMain Holdings third quarter 2026 earnings conference call. Please disconnect your lines at this time and have a wonderful day.

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