Enova International reported that it has formally rescinded its applications with the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System that were tied to its proposed acquisition of Grasshopper Bancorp. The move, the company said, followed obstacles encountered during the regulatory review stage. Enova's shares fell 3.9% in after-hours trading on the news.
In explaining the decision, CEO Steve Cunningham pointed to a lack of clear regulatory standards for nonbank businesses attempting to convert into banks and to serve customers whose credit needs are fulfilled largely outside the traditional banking system. Cunningham characterized the withdrawal as the outcome of a comprehensive assessment, saying the company believes it to be the appropriate course for Enova and its shareholders.
"After a thorough evaluation, we are confident that withdrawing our applications is the best decision for Enova and our shareholders," Cunningham said, adding that the company’s future growth and success do not depend on becoming a bank.
Despite stepping away from the Grasshopper transaction, Enova maintained the financial outlook it previously provided. For the third quarter of 2026, the company continues to expect revenue growth of approximately 25% year over year and adjusted earnings per share growth of about 30% year over year. For the full 2026 fiscal year, Enova reaffirmed guidance projecting revenue growth in the 20% to 25% range and adjusted EPS growth of 30% to 35% year over year.
CFO Scott Cornelis said Enova plans to speed up share repurchase activity for the remainder of 2026, citing the company’s financial performance, a flexible balance sheet and a solid liquidity position. Cornelis noted that, as of June 30, 2026, Enova had $218 million available for share repurchases under the restrictions of its senior note covenants and $349 million available under the board authorization that runs through June 30, 2027.
The withdrawal highlights tensions that can arise when nonbank financial firms pursue bank charters or acquisitions of chartered institutions. Enova framed the decision as strategic and emphasized that its core business objectives and planned growth do not rely on completing a bank acquisition.
Market reaction to the disclosure was immediate in after-hours trading, with the company's stock retreating following the announcement. Management's reaffirmation of guidance and the stated intention to increase buybacks are positioned as offsetting actions to support shareholder value following the decision to withdraw the regulatory filings.
Context and next steps
- Enova has withdrawn its filings with both the OCC and the Federal Reserve that were necessary to complete the proposed Grasshopper Bancorp acquisition.
- Management reiterated its 2026 financial targets and signaled accelerated share repurchase activity backed by available liquidity and covenants.
- The company quantified repurchase capacity as $218 million under senior note covenants and $349 million under board authorization as of June 30, 2026.