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Non-GAAP Financial Measures Q1 2025 Earnings Presentation May 7, 2025 Disclaimer This presentation (the "Presentation") of OppFi Inc. ("OppFi" or the "Company") is for information purposes only. Certain information contained herein has been derived from sources prepared by third parties. While such information is believed to be reliable for the purposes used herein, the Company makes no representation or warranty with respect to the accuracy of such information. Trademarks and trade names referred to in thi ...

Core Viewpoint - OppFi Inc. (OPFI) is expected to report first-quarter 2025 results on May 7, with revenue estimates of $137.7 million, indicating an 8.1% growth year-over-year, and earnings per share estimated at 26 cents, reflecting over 100% growth from the previous year [1] Financial Performance - The company has a strong earnings surprise history, beating the Zacks Consensus Estimate in the last four quarters with an average earnings surprise of 73% [2] - OPFI's Earnings ESP is currently at 0.00%, and it holds a Zacks Rank of 1 (Strong Buy) [3][4] Market Position and Strategy - OppFi's strategy focuses on providing affordable credit to underbanked customers, a market projected to grow at a 13% CAGR, reaching $7 trillion by 2032 [5] - The company targets subprime and non-prime credit holders often overlooked by traditional financial institutions [6] Stock Performance - OppFi shares have increased by 245.3% over the past year, outperforming the industry average of 21.7% and the Zacks S&P 500 composite's 10.7% rise [7] - The stock is currently trading at a trailing 12-month price-to-earnings ratio of 8.70, significantly lower than the industry average of 22.84 and cheaper than peers Corpay and Evertec [10] Operational Efficiency - In Q4 2024, total net originations grew by 11% year-over-year, driven by bank partners expanding into new states and improved lead evaluation capabilities [11] - The proportion of net charge-offs to revenue decreased from 46% to 42%, indicating better asset quality and risk management [12] - The company's machine learning models improved credit evaluation, increasing average yield to 130% from 127% year-over-year [13] - Automated loan approval technology approved 79.5% of loans without human intervention, a 630 basis point increase from the previous year, enhancing cost management [14] Investment Outlook - OppFi is positioned to benefit from bank partnerships and improved risk management through its machine learning models, which reduce losses [15] - The company is fundamentally strong with a discounted valuation, suggesting potential for continued stock price appreciation [17]

Group 1 - FirstCash Holdings (FCFS) is currently outperforming its peers in the Business Services sector, with a year-to-date return of 28.1% compared to the sector average of -2.6% [4] - FCFS holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 0.7% over the past three months [3] - The Financial Transaction Services industry, which includes FCFS, has an average year-to-date return of -0.7%, further highlighting FCFS's strong performance within its industry [6] Group 2 - OppFi Inc. (OPFI) is another stock in the Business Services sector that has shown strong performance, with a year-to-date return of 24% [4] - The consensus EPS estimate for OppFi Inc. has increased by 10.9% over the past three months, and it currently holds a Zacks Rank of 1 (Strong Buy) [5] - Both FirstCash Holdings and OppFi Inc. are recommended for investors interested in the Business Services sector due to their solid performance [7]

Core Viewpoint - Both OppFi Inc. (OPFI) and Futu Holdings Limited (FUTU) are fintech companies leveraging technology to transform traditional financial services, attracting growth-oriented investors seeking opportunities in the fintech sector [1][2] Company Overview - Futu Holdings provides fully digitalized financial services, focusing on online brokerage and wealth management primarily in the China market, while OppFi offers alternative lending solutions to underserved U.S. customers [2] - Both companies aim to disrupt traditional financial services through advanced technology [2] OppFi's Case - OppFi's strategy targets affordable credit for underbanked customers, with a projected market growth of 13% CAGR, reaching a $7 trillion market by 2032 [3] - The company utilizes AI and machine learning to enhance credit evaluation, improving the identification and approval of higher-quality applicants [4] - In Q4 2024, 79.5% of OppLoans were approved instantly without human intervention, marking a 630 basis point increase from Q4 2023, contributing to a 60 basis point reduction in expenses before interest year over year [5] Futu Holdings' Case - Futu challenges traditional brokerage with a fully digital platform and low fees, utilizing AI for operational efficiency, resulting in a 116% increase in operating income and a 690 basis point improvement in margin year over year in Q4 2024 [6] - The company launched various AI-driven features to enhance client experience, including automatic interpretation of corporate announcements [7] - Futu's product velocity was high in Q4 2024, with 209 iterations of its mobile and desktop applications and a 28.7% year-over-year increase in registered clients, leading to an 87% surge in top-line revenue [8][9] Financial Estimates - The Zacks Consensus Estimate for Futu's 2025 sales and EPS indicates year-over-year growth of 19.1% and 31.5%, respectively [11] - For OppFi, the estimates show 9.7% growth in sales and 12.6% in EPS for 2025 [12] Valuation Comparison - Futu Holdings trades at a forward earnings multiple of 12.57X, below its 12-month median of 14.22X, while OppFi's forward earnings multiple is 8.41X, higher than its median of 6.73X [13] Conclusion - Both OPFI and FUTU are notable fintech players, but OPFI is viewed as a more compelling investment opportunity due to its focus on advanced AI and ML in the underserved U.S. credit market, operational efficiency, and ability to disrupt traditional lending [15]

Industry Overview - Financial technology (fintech) is a transformative investment space merging finance and technology, offering services like online banking, peer-to-peer payments, insurance, cryptocurrency, and cybersecurity [1] - The fintech space is expected to benefit from expanding transaction volumes due to the widespread adoption of digital means, accelerated by the pandemic [2] - The innovative nature of fintech positions it for significant growth, driven by consumer behavior shifting towards digital platforms for convenience and cost-effectiveness [4] Catalysts for Growth - The performance of the fintech sector is inversely related to interest rates; a recent reduction in the Federal Reserve's benchmark interest rates is expected to benefit fintech companies [3] - The rise of artificial intelligence (AI) and machine learning is revolutionizing banking, payments, and investments, providing efficient and secure financial solutions [5] Recommended Stocks - Five fintech stocks are recommended for long-term investment: Affirm Holdings Inc. (AFRM), StoneCo Ltd. (STNE), ACI Worldwide Inc. (ACIW), Coinbase Global Inc. (COIN), and OppFi Inc. (OPFI) [2][6] Company-Specific Insights Affirm Holdings Inc. (AFRM) - Affirm has strong revenue growth from diverse income streams, expecting revenues of $3.13-$3.19 billion in fiscal 2025, driven by growing active merchant numbers and improving gross merchandise value [7] - Key partnerships, including those with Apple Pay and Hotels.com, are crucial for Affirm's expansion, including a recent entry into the UK market [8] - Affirm's expected revenue and earnings growth rates are 36.9% and 96.4%, respectively, with a 60% improvement in earnings estimates over the last 30 days [9] - The average short-term price target indicates a potential increase of 70.6% from the last closing price of $40.76, suggesting a maximum upside of 111% [10] StoneCo Ltd. (STNE) - StoneCo is a leading provider of point-of-sale payment processing services, enabling businesses to accept various payment methods [11] - The company offers a full suite of products for e-commerce transactions and client management, utilizing transaction data for credit assessment [12] - StoneCo's expected revenue and earnings growth rates are 4.1% and -6.7%, respectively, with a 9.6% improvement in earnings estimates over the last 30 days [13] - The average short-term price target suggests a potential increase of 12.2% from the last closing price of $11.83, indicating a maximum upside of 86% [13] ACI Worldwide Inc. (ACIW) - ACI Worldwide provides software solutions for digital payments, powering electronic payments for over 5,000 organizations globally, including major financial institutions [15][16] - The company offers real-time payment capabilities and a comprehensive omni-channel payments experience [17] - ACIW's expected revenue and earnings growth rates are 6.8% and 6.1%, respectively, with a 2.6% improvement in earnings estimates over the last 30 days [18] - The average short-term price target indicates a potential increase of 22.9% from the last closing price of $51.31, suggesting a maximum upside of 38.4% [18] Coinbase Global Inc. (COIN) - Coinbase provides financial infrastructure for the crypto economy, offering a user-friendly platform for consumers and sophisticated trading features for experienced users [19][20] - The expected revenue and earnings growth rates for Coinbase are 26.2% and 0.7%, respectively, with a 2.7% improvement in earnings estimates over the last 30 days [21] - The average short-term price target indicates a potential increase of 62.7% from the last closing price of $172.21, suggesting a maximum upside of 179.1% [22] OppFi Inc. (OPFI) - OppFi operates a financial technology platform that helps banks provide credit access to consumers, focusing on those turned away by mainstream options [23] - The expected revenue and earnings growth rates for OppFi are 9.7% and 12.6%, respectively, with a 10.3% improvement in earnings estimates over the last 60 days [25] - The average short-term price target indicates a potential increase of 38.4% from the last closing price of $8.35, suggesting a maximum upside of 55.7% [25]

OppFi Inc. (OPFI) shares have skyrocketed 202.9% in a year, outperforming the 16.8% rise of its industry and the 9.6% increase in the Zacks S&P 500 Composite.OPFI performed significantly better than its industry peers, Fiserv, Inc. (FI) and Paymentus Holdings, Inc. (PAY) . FI and PAY shares have rallied 44.7% and 57.6% in a year.One-Year Price Performance Image Source: Zacks Investment Research OppFi has also outperformed its industry, Fiserv and Paymentus Holdings in the past six months. OPFI shares have s ...

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Information Services Group (III) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Information Services Group is a member of the Business Services sector. This group includes 272 individual stocks and c ...

Group 1 - The article does not provide any specific insights or analysis regarding companies or industries [1]

Group 1 - The article highlights the impact of President Trump's recently announced universal and "reciprocal" tariffs, which are viewed as an international black swan event, and emphasizes the importance of monitoring the response of US consumers [1] Group 2 - The content discusses the role of freelance financial writers in creating engaging narratives around financial data, focusing on thematic investing, market events, and client education [2]