2Q26 Fintech Preview: Qtr. Will Look Constructive on Credit and Vols

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2Q26 Fintech Preview: Qtr. Will Look Constructive on Credit and Vols

USA | Consumer Finance EquityJulyResearch20, 2026

KEY STOCKS FEATURED INCLUDE:2Q26 Fintech Preview: Qtr. Will Look

TICKER RATING PRICE TARGETConstructive on Credit and Vols

AFRM BUY $95.00

We expect a strong quarter supported by originations momentum, stable ENVA BUY $280.00

credit, and supportive liquidity. Investor focus will be specific to companies, HAPN BUY $24.00

but a broader focus will be sustainability of growth, implications on credit PGY BUY $23.00

broadening and new products. While overall credit environment remains stable, SOFI BUY $25.00

we are monitoring certain vintages, although segment credit trends are likely

to oscillate around LT average. We favor AFRM and ENVA on value and

momentum.

KEY CHANGES INCLUDE:

For 2Q, we expect a quarter underpinned by broadly stable credit and an active origination TICKER RATING PRICE TARGET

backdrop, supported by consistently accessible funding markets across ABS and forward AFRM BUY $95.00 ($90.00)

flow. Credit trends continue to reflect a stable consumer health condition, despite the pace of

improvement moderating as we reach LT average, while we are monitoring pockets of stress in

specific vintages. Investor focus will be varied by names, centered on volumes, margins, credit

and any specific, such as AFRM int'l expansion/FY27 guide, SOFI FV marks & guide upside, UPST

volume-vs-margin, PGY auto credit & funding, HAPN's shift to FV accounting. We expect a broader

focus on credit posture to sustain growth, risk appetite for the companies and funding partners and

growth through new product offerings.

Origination volumes reached an all-time high in April, followed by a slight decrease M/M in