On Deck Capital Inc. reported a second-quarter net loss attributable to common shareholders of $1.5 million, or 2 cents per share, compared with a loss of $17.9 million, or 25 cents per share, in the year-ago quarter.
Results for the most recent quarter included a $3.2 million severance charge as the company further implemented its $45 million cost rationalization plan. It lowered its annual operating expense run rate going forward to approximately $160 million. The company's credit policy adjustments initiated in the middle of the first quarter led to sequential improvements in both its provision rate and the 15+ day delinquency ratio, CEO Noah Breslow said in a statement.
On Deck's adjusted net income in the second quarter was 2 cents per share, compared with an adjusted net loss of 20 cents per share in the year-ago quarter.
The S&P Capital IQ consensus normalized EPS estimate for the quarter was a loss of 1 cent.
On Deck has expanded its collaboration with JPMorgan Chase & Co. for up to four years to provide the underlying technology supporting Chase's online lending solution to its small business customers.
The company said it is on track to turning a profit on a GAAP basis by year end. It continues to expect gross revenue to be between $342 million and $352 million for the year and adjusted EBITDA to be between $5 million and $15 million.
For the third quarter, On Deck estimates it will generate gross revenue in the range of $82 million to $86 million and adjusted EBITDA of between $1 million and $5 million.