Q2 25 EPS

$0.99

BEAT +23.86%

Est. $0.80

Q2 25 Revenue

$2.08B

BEAT +2.20%

Est. $2.04B

vs S&P Since Q2 25

+1.7%

BEATING MARKET

ALLY +18.6% vs S&P +16.8%

Market Reaction

Did ALLY Beat Earnings? Q2 2025 Results

Ally Financial delivered a notably strong second quarter, with earnings per share of $0.99 clearing the $0.80 consensus estimate by 23.86% and revenue of $2.08 billion edging past the $2.04 billion forecast by 2.20%, even as the year-over-year revenu… Read more Ally Financial delivered a notably strong second quarter, with earnings per share of $0.99 clearing the $0.80 consensus estimate by 23.86% and revenue of $2.08 billion edging past the $2.04 billion forecast by 2.20%, even as the year-over-year revenue comparison reflected a steep 48.4% decline tied largely to the April 1 close of the Credit Card divestiture. The most material driver of the rebound was a sharp swing in profitability, with GAAP net income reaching $352 million after Ally had posted a $225 million net loss in Q1 2025, when repositioning charges from the card sale and securities portfolio restructuring had weighed heavily on results. Net interest margin excluding core OID expanded 10 basis points sequentially to 3.45%, supported by continued deposit repricing gains, as the average retail deposit rate fell 60 basis points year over year to 3.58%. Credit quality also improved, with retail auto net charge-offs declining 6 basis points to 1.75% and 30-plus day delinquencies falling 24 basis points year over year. Management tightened its full-year retail auto net charge-off guidance to 2.00%-2.15% while maintaining its NIM outlook at 3.40%-3.50%.

Key Takeaways

  • Record 3.9 million consumer auto applications driving $11.0 billion in originations
  • Net interest margin ex. OID expanded 10 bps QoQ to 3.45% driven by deposit repricing benefits
  • Average retail deposit rate declined 60 bps YoY to 3.58%
  • Retail auto net charge-off rate improved 6 bps YoY to 1.75%
  • 30+ day retail auto delinquencies declined 24 bps YoY to 4.88%, first YoY improvement since 2021
  • Seventh consecutive quarter of year-over-year controllable expense declines
  • Credit Card sale closed April 1 generating 40 bps of CET1 capital
  • 42% of retail auto originations in highest credit quality tier for 9 consecutive quarters
  • Corporate Finance ROE of 31% with zero net charge-offs
24/7 Wall St

ALLY YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

ALLY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q1 26

“I am encouraged and energized by the progress we have made as an organization over the first half of the year. Our results demonstrate sound strategic positioning and disciplined execution, contributing to an improving financial trajectory. These results reflect the power of focus from our 10,000+ colleagues and our ongoing commitment to unlocking the full potential of our core franchises.”

— Michael Rhodes, Q2 2025 Earnings Press Release