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Core Insights - OppFi, Inc. (NYSE: OPFI) reported strong financial results for Q4 2024, with total revenue of $135.7 million, adjusted net income of $20.3 million, and adjusted EPS of $0.23, surpassing consensus estimates [1][6] - The company achieved a net revenue margin of 59.5%, reflecting a year-over-year expansion of 1,000 basis points from Q4 2023 [1][6] - Total net originations reached $214.0 million, marking an 11% year-over-year increase [6] Financial Performance - Q4 2024 total revenue increased by 2.1% year-over-year, while adjusted net income grew by 140.3% compared to the previous year [1] - For the full year, total revenue rose by 3.3% from FY23, and adjusted net income approximately doubled [1] - The significant growth in net income was highlighted by a 619.7% year-over-year increase, reaching around $14.0 million [1] Future Outlook - The company is expected to maintain its momentum in 2025, driven by a strategic focus on operational efficiencies and credit risk management [1]

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 this Presentation are the property of their respective owners. The information conta ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 2.1% to $135.7 million, with a 320 basis point improvement in average yield to 130% [20] - Adjusted net income more than doubled to $20.3 million from $8.4 million, while adjusted earnings per share grew to $0.23 from $0.10 in Q4 2023 [23] - For the full year 2024, total revenue increased to $526 million, up 3.3% compared to 2023, exceeding guidance [25] - GAAP net income for 2024 increased significantly to $83.8 million, up from $39.5 million in 2023, with diluted EPS at $0.36 compared to a loss of $0.06 in 2023 [26] Business Line Data and Key Metrics Changes - Net originations grew by 11.3% to $213.7 million, with retained net originations rising by 6% to $192.5 million [20] - New customer originations increased by 8.8%, showing improved credit risks with a decrease in annualized net charge-off rate by 430 basis points to 54.5% [21] - The annualized net charge-off rate as a percentage of total revenue improved by 450 basis points to 41.9% [21] Market Data and Key Metrics Changes - The auto approval percentage improved to almost 80% in Q4 2024 from 73% in Q4 2023, enhancing funnel metrics [10] - The company maintained a strong balance sheet with $88.3 million in cash and cash equivalents at the end of Q4 2024 [24] Company Strategy and Development Direction - The company aims to leverage operational excellence and continuous improvement to drive growth, with expectations for a double-digit percentage increase in revenue and adjusted EPS in 2025 [7] - OppFi is focusing on entering additional partnerships and enhancing direct response marketing initiatives to attract high-quality customers [14] - The company is exploring complementary products and potential acquisitions to enhance its digital financial service offerings [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable environment for growth in 2025, supported by a strong balance sheet and positive credit trends [13] - The company anticipates less seasonality in results for 2025 due to improved modeling and operational efficiencies [30] - Management is closely monitoring macroeconomic conditions and consumer repayment trends, indicating readiness to adjust strategies as needed [55] Other Important Information - The company paid down $10 million of corporate debt in Q4 2024 and an additional $20 million in Q1 2025, demonstrating financial strength [24] - The guidance for 2025 includes total revenue of $563 million to $594 million, an increase of 7% to 13%, and adjusted net income of $95 million to $97 million, an increase of 15% to 17% [29] Q&A Session Summary Question: Insights on macro outlook and consumer targeting - Management noted that while macro conditions are uncertain, their Model 6 has better prepared them to handle volatility in consumer repayments [36][37] Question: Drivers of yield increase and revenue guidance assumptions - The increase in yields was attributed to risk-based pricing and improved repayment rates, with expectations for continued growth in 2025 [41][42] Question: Expectations for tax refund season and repayment trends - Management is monitoring the tax refund season closely but does not anticipate significant delays in repayments [44] Question: Confidence in growth for 2025 - Management emphasized their focus on quality over quantity in underwriting and the potential for growth through targeted marketing initiatives [54][55] Question: Success in marketing channels - The company has seen success in auto approvals, which has improved customer experience and conversion rates [57] Question: Plans for cash generation and capital allocation - Management indicated a range of options for capital allocation, including growth initiatives, product development, and potential acquisitions [60][62] Question: Drivers of less seasonality in 2025 - The new corporate seasonal modeling is expected to smooth earnings and generate strong income throughout the year [66] Question: Future of automation in operations - Management aims to continuously improve automation but acknowledges that some human interaction will always be necessary [70][71]

Financial Performance - OppFi Inc. reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and up from $0.10 per share a year ago, representing an earnings surprise of 64.29% [1] - The company posted revenues of $135.72 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.60% and compared to year-ago revenues of $132.92 million [2] - Over the last four quarters, OppFi has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - OppFi shares have increased approximately 22.1% since the beginning of the year, while the S&P 500 has declined by 1.8% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $130.66 million, and for the current fiscal year, it is $1 on revenues of $547.12 million [7] - The estimate revisions trend for OppFi is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial Transaction Services industry, to which OppFi belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Net income for Q4 2024 increased by $12.0 million year over year to $14.0 million, with an adjusted net income of $20.3 million, reflecting a growth of 140%[9] - For the full year 2024, net income increased by $44.4 million year over year to $83.8 million, with an adjusted net income of $82.7 million, representing a growth of 99%[12] - Q4 2024 net income reached $13.973 million, a significant increase from $1.942 million in Q4 2023, representing a variance of $12.031 million[58] - Full year 2024 net income totaled $83.837 million, compared to $39.479 million in 2023, marking an increase of $44.358 million[59] - Adjusted earnings per share for Q4 2024 was $0.23, compared to $0.10 in Q4 2023[60] - Full year 2024 adjusted earnings per share increased to $0.95 from $0.49 in 2023[61] Revenue Growth - Total revenue for Q4 2024 rose by 2.1% year over year to $135.7 million, driven by an annualized average yield increase of 320 basis points[26] - Total revenue for the full year 2024 increased by 3.3% year over year to $526.0 million, attributed to a 410 basis point increase in average yield[28] - Total revenue for Q4 2024 was $135.723 million, slightly higher than $132.924 million in Q4 2023[58] - Total revenue for the full year 2024 was $525.963 million, a 3.3% increase from $508.949 million in 2023[51] Cash Flow and Financial Management - Full year free cash flow generation for FY 2023 was $51.9 million[44] - Free cash flow for the year ended December 31, 2024, was $96.330 million, up from $51.854 million in 2023, an increase of $44.476 million[63] - The company plans to allocate $30 million for repayment of corporate term loan debt in Q1 2025[43] Credit Quality and Risk Management - The net charge-off rate as a percentage of total revenue decreased by 450 basis points year over year to 41.9%, indicating improved credit initiatives[26] - The net charge-off rate as a percentage of average receivables decreased to 54% from 59% year over year, driven by lower gross charge-offs and higher recoveries[36] - The net charge-off rate as a percentage of total revenue decreased to 39% from 44% year over year, indicating a healthier portfolio[41] Operational Efficiency - The automatic approval rate improved to 79% from 73% year over year, reflecting advancements in algorithmic automation projects[36] - Automatic approval rate improved to 76% from 72% year over year, reflecting successful algorithmic automation projects[41] Originations and Portfolio Management - Total net originations for 2024 reached $802 million, with a 11% year-over-year increase due to bank partners' expansion and enhanced lead evaluation capabilities[39] - Total net originations increased by 7% year over year, driven by bank partners' expansion and enhanced lead evaluation capabilities[41] - Ending receivables increased by 2% year over year to $425 million, supported by growth in retained net originations and healthier portfolio management[36] - Ending receivables rose by 2% year over year, supported by growth in retained net originations and improved credit modeling[41] Yield and Pricing - Average yield increased to 131% from 127% year over year, attributed to a decrease in delinquent loans and pricing initiatives[41] Fair Value Changes - The company reported a change in fair value of warrant liabilities of $10.994 million in Q4 2024, compared to $5.814 million in Q4 2023[58] Earnings Before Tax - Adjusted EBT for the full year 2024 was $108.002 million, significantly higher than $54.283 million in 2023[61] Shareholder Information - Weighted average diluted shares outstanding increased to 87,504,493 in Q4 2024 from 85,721,167 in Q4 2023[60]

Core Insights - OppFi (NYSE: OPFI) is a fintech subprime lender with limited analyst coverage, indicating a potential opportunity for investors to explore an under-researched company [1] Company Overview - The company operates in the fintech sector, specifically focusing on subprime lending, which may attract investors looking for high-risk, high-reward opportunities [1] Analyst Experience - The analyst has over 30 years of experience in various industries, including fintech, which adds credibility to the analysis of OppFi and its business model [1]

Group 1 - OppFi (NYSE: OPFI) has shown significant performance in 2024, frequently recommended by Seeking Alpha's Quant and appearing in various screeners [1] - The company is primarily focused on micro and small-cap stocks, indicating a niche market strategy [1] Group 2 - The article reflects the author's personal opinions and does not represent any formal investment advice or recommendations [2]

Core Viewpoint - OppFi Inc. (OPFI) has experienced a significant stock price increase of 194.6% over the past six months, outperforming its industry and the S&P 500 Composite [1][7]. Group 1: Stock Performance - OPFI's stock is currently trading above its 50-day moving average, indicating a bullish sentiment among investors [4]. - Compared to close competitors, CompoSecure, Inc. (CMPO) and PAR Technology Corporation (PAR), which gained 38.4% and 25.5% respectively, OPFI's performance is notably superior [7]. Group 2: Market Opportunity - There is a rising demand for digital banks, particularly among underbanked customers, with nearly 60 million U.S. consumers identified as credit marginalized, presenting a substantial market opportunity for OppFi [8]. - OPFI can underwrite riskier loans at lower rates than traditional financial institutions, addressing the needs of customers living paycheck to paycheck [9]. Group 3: Valuation and Financial Metrics - OppFi shares are considered undervalued, trading at 13.1 times forward 12-month earnings per share, compared to the industry average of 25.8 times [10]. - The trailing 12-month EV-to-EBITDA ratio for OPFI is 10.1 times, below the industry's average of 14.8 times [10]. - In Q3 2024, OPFI's current ratio of 1.53 exceeds the industry average of 1.24, indicating a strong liquidity position [11]. Group 4: Revenue and Earnings Growth - The Zacks Consensus Estimate for OppFi's revenues in 2024 and 2025 is $520 million and $547.1 million, reflecting year-over-year growth of 2.2% and 5.2% respectively [13]. - The consensus estimate for OPFI's earnings per share for 2024 and 2025 stands at 86 cents and $1, suggesting increases of 68.6% and 16.3% year-over-year [13]. Group 5: Strategic Moves and Risks - OppFi's acquisition of a 35% equity interest in Bitty Advance aims to expand into small business financing, although challenges in scaling and market conditions may pose risks [16][17]. - The ability to underwrite riskier loans could lead to increased charge-offs if consumer creditworthiness declines, impacting the company's bottom line [15].