Enova Ditches Bank Plan, Shares Plummet 25%

Enova International Inc. announced on Tuesday the withdrawal of its regulatory applications for the Grasshopper Bancorp acquisition. This decision led to a sharp 25% decrease in its stock price, with shares falling to $169.50. The applications were submitted to the Office of the Comptroller of the Currency and the Federal Reserve. CEO Steve Cunningham stated that withdrawing the bid was the most prudent choice for Enova and its shareholders, emphasizing the company's ability to continue growing without obtaining a bank charter. He further commented on the evolving regulatory landscape not keeping pace with consumer and small business credit needs.

Despite the acquisition withdrawal, Enova maintains robust growth expectations. The company projects a roughly 25% year-over-year increase in third-quarter revenue and about a 30% rise in adjusted earnings per share. These near-term forecasts align with the full-year projections of 20% to 25% revenue growth and 30% to 35% adjusted earnings per share growth. To further support shareholder value, Enova intends to accelerate its share buyback program through the end of 2026, utilizing significant available funds.