Enova Shares Fall After Scrapping Grasshopper Bank Acquisition Over Regulatory Issues

Shares of Enova International (NYSE:ENVA) fell in after-hours trading Monday after the company terminated its bid to acquire Grasshopper Bancorp, citing significant regulatory challenges in the bank acquisition process.

The stock dropped 3.9% in extended trading following the announcement.

Acquisition Halted by Regulatory Hurdles

The Chicago-based financial services company announced it has formally withdrawn its applications with the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System. The move effectively ends its proposed acquisition of the digital bank.

CEO Steve Cunningham pointed to a lack of regulatory clarity for the decision. He stated that regulators "do not have clear standards for nonbanks that want to become banks and serve customers whose credit needs are met mostly outside the banking system." Cunningham added that the company's future growth does not depend on becoming a bank and that withdrawing the applications was the "best decision for Enova and our shareholders."

Guidance Reaffirmed, Focus Shifts to Buybacks

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Despite abandoning the acquisition, Enova reaffirmed its previously issued financial guidance for the third quarter and full-year 2026, signaling to investors that its core business remains on track. The company's outlook includes:

• Third-Quarter 2026: Revenue growth of approximately 25% and adjusted earnings per share (EPS) growth of around 30% year-over-year.
• Full-Year 2026: Revenue growth of 20% to 25% and adjusted EPS growth of 30% to 35% year-over-year.

With the acquisition now off the table, Enova plans to increase its capital return to shareholders. CFO Scott Cornelis announced the company intends to accelerate its share repurchase activity for the remainder of 2026. He cited Enova's strong financial performance, flexible balance sheet, and solid liquidity position as enabling the move.

As of June 30, 2026, Enova reported it had $218 million available for share repurchases under its senior note covenants and $349 million available under its current Board authorization.