This article is an excerpt from the InvestorPlace Digest newsletter. To get news like this delivered straight to your inbox, click here. "We have all this hot air in Washington," David Blitzer, S&P Dow Jones Indices chairman, said in a CNBC interview at the time. "But the rest of the economy is growing reasonably well… And that's probably what's behind the stock market's good track record." But Plug Power also has enormous dreams to become America's first one-stop shop for green hydrogen… and it now has sig ...

OppFi Inc. (OPFI) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________________________ FORM 10-Q __________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________to__________ Co ...

Financial Data and Key Metrics Changes - Total revenue increased by 5.8% year-over-year to $127.3 million, with a revenue yield improvement of 3.5 percentage points to 129.5% [6][24] - Net income rose to $10.1 million, up from $3.9 million, representing an increase of $6.2 million year-over-year [8] - Adjusted net income was $8.8 million, an increase of $4.9 million from the previous year [8][26] - Total expenses as a percentage of total revenue increased by 110 basis points year-over-year to 45.5%, but decreased by 270 basis points to 40.6% when excluding one-time expenses [7][18] Business Line Data and Key Metrics Changes - Total net originations increased by 2.4% to $163.5 million, while total retained net originations decreased by 2% to $152.5 million [24] - New customer originations decreased by 1.7% year-over-year, while existing customer originations increased by 5.7% [25] - The annualized net charge-off rate as a percentage of total revenue decreased by 110 basis points to 47.9% [25] Market Data and Key Metrics Changes - The company operates in 40 states through three bank partners, with a strong national footprint [31] - The addressable market expanded as bank partners entered new states, contributing to improved customer payment activity [12] Company Strategy and Development Direction - The company is focused on profitable growth and has increased its full-year adjusted net income guidance to $50 million to $54 million [20] - A new credit model is set to launch in Q2, aimed at improving risk evaluation for applicants [11] - The company plans to explore partnerships and acquisitions in adjacent services, particularly in small business lending and consumer financing [43] Management's Comments on Operating Environment and Future Outlook - Management noted that core inflation remains sticky, and interest rates are unlikely to decrease until late 2024 or early 2025 [13] - The tightening of credit standards by banks may present selective growth opportunities for the company [14] - Management expressed confidence in the company's ability to generate free cash flow and maintain a strong balance sheet [9][22] Other Important Information - The company declared its first-ever special dividend of $0.12 per share, reflecting its commitment to rewarding shareholders [9][22] - Unrestricted cash increased by 48.4% to $47.2 million, providing confidence for capital allocation decisions [19] Q&A Session Summary Question: Update on bank partnership model and states of operation - The company currently has three bank partners and operates in 40 states, with variations in loan ownership percentages due to state laws [31] Question: Sustainability of revenue yield performance - Management indicated that the Q1 yield performance is on the higher end and attributed it to strong payment recovery and operational efficiencies [32][33] Question: Operational expenses run rate for the year - Management suggested that operational expenses may decrease slightly going forward, excluding one-time expenses [34] Question: Drivers of outperformance and challenges - Strong payment activity and reduced acquisition costs contributed to outperformance, while sticky inflation and interest costs remain challenges [36] Question: Competitive environment updates - The tightening of credit standards above the company is allowing more segment one customers into the funnel, but the company remains cautious in its underwriting [37] Question: Special dividend declaration process - The special dividend is not formulaic but will be considered based on cash levels and needs [41] Question: Targeting adjacent services for growth - The company is looking at small business lending and consumer financing for goods as potential areas for expansion [43] Question: New versus existing customer underwriting processes - The company has optimized its funnel and improved operational efficiencies, contributing to lower acquisition costs [44]

| --- | --- | --- | --- | |-------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | Key Company Highlights | | | | | Profitable Across Business Cycles 9 consecutive ...

OppFi Inc. (OPFI) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.10, delivering a surprise of 42.86%.Over the last four quarters, the company has sur ...

Q1 2024 Earnings Presentation May 8, 2024 A Tech-Enabled, Mission-Driven Specialty Finance Platform that Broadens the Reach of Community Banks to Extend Credit Access to Everyday Americans Disclaimer This presentation (the "Presentation") of OppFi Inc. ("OppF" or be "Compony") is for information purposes only. Certain information on thereal mor soucces propered by thir information contained herein does not purport to be all-inclusive. This Presentation does not constitute investment, tax, or legal advice. N ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) OppFi is a technology-enabled specialty finance platform providing credit access to underserved Americans via bank partnerships and its core OppLoans product Financial Performance (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenue | $509 million | $453 million | | Net Income | $39 million | $3 million | - OppFi's mission is to facilitate financial inclusion for the **63 million** credit-marginalized Americans through its specialty finance platform[24](index=24&type=chunk) - The company's primary product, OppLoans, facilitates installment loans averaging **$1,500** with an **11-month term**, and payments are reported to the three major credit bureaus[24](index=24&type=chunk)[30](index=30&type=chunk) - In 2023, approximately **98%** of net originations were generated from loans originated by bank partners (FinWise Bank, First Electronic Bank, and Capital Community Bank) using the OppFi platform, a shift from **95%** in 2022[47](index=47&type=chunk)[50](index=50&type=chunk) - The company has discontinued accepting new applications for its SalaryTap and OppFi Card products to focus on its core OppLoans platform[32](index=32&type=chunk) [Company Overview](index=6&type=section&id=Company%20Overview) - OppFi operates as a tech-enabled specialty finance platform, connecting community banks with everyday American consumers who are often turned away by mainstream financial institutions[24](index=24&type=chunk) - Since its inception through December 31, 2023, the company has facilitated over **$5.8 billion** in gross loan issuance across more than **3.4 million** loans[25](index=25&type=chunk) - The platform features a highly automated underwriting process, with approximately **89%** of decisions automated in 2023, allowing for same-day or next-day funding for most approved applicants[29](index=29&type=chunk) - OppFi maintains high customer satisfaction, evidenced by a Net Promoter Score (NPS) of **79** for 2023, an **A- rating** from the Better Business Bureau (BBB), and a **4.5/5.0 star rating** on Trustpilot[33](index=33&type=chunk) [OppFi's Competitive Advantages](index=12&type=section&id=OppFi%27s%20Competitive%20Advantages) - OppFi leverages a fully digital, scalable technology stack for cost efficiency and a superior customer experience, which it believes is a durable advantage over traditional banks with legacy systems[43](index=43&type=chunk) - The company's bank partner model allows it to facilitate credit access in **38 states** as of December 31, 2023, leveraging its partners' federal charters for a national product offering[46](index=46&type=chunk)[50](index=50&type=chunk) - Proprietary, data-driven decisioning models use alternative data and machine learning to evaluate creditworthiness, ignoring traditional FICO scores to better assess repayment ability[52](index=52&type=chunk) [Government Regulation](index=15&type=section&id=Government%20Regulation) - OppFi and its bank partners are subject to extensive and complex rules and regulations from federal, state, and local authorities, including the CFPB, FTC, and federal banking agencies like the FDIC[62](index=62&type=chunk)[63](index=63&type=chunk) - Key federal laws applicable to the business include the Truth in Lending Act (TILA), Equal Credit Opportunity Act (ECOA), Fair Credit Reporting Act (FCRA), and Fair Debt Collection Practices Act (FDCPA)[65](index=65&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk)[70](index=70&type=chunk) - The company's bank partners rely on federal law to "export" interest rates from their home state to borrowers nationwide, a practice that is subject to legal and regulatory challenges[90](index=90&type=chunk) - OppFi holds necessary licenses and registrations to conduct its business, including servicing and collection activities, in all states where such licensure is required[93](index=93&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, regulatory, and financial risks, including product dependency, legal challenges, and internal control weaknesses - **Business & Operational Risks:** The company's rapid growth and limited operating history make future performance difficult to evaluate; it is highly dependent on its OppLoans product and its relationships with a few key bank partners, which originated **98%** of loans in 2023[108](index=108&type=chunk)[121](index=121&type=chunk)[137](index=137&type=chunk) - **Credit & Economic Risks:** The machine learning models used for underwriting have not been extensively tested in a down-cycle economy, which could lead to higher-than-expected loan losses, and the business is susceptible to macroeconomic conditions affecting borrower repayment ability[136](index=136&type=chunk)[126](index=126&type=chunk) - **Regulatory & Legal Risks:** The company faces significant legal and regulatory challenges, including litigation with the California Department of Financial Protection and Innovation (DFPI) over interest rate caps and the "true lender" doctrine, which could render loans unenforceable or subject the company to fines[243](index=243&type=chunk)[250](index=250&type=chunk) - **Financial Reporting & Funding Risks:** A **material weakness** in internal control over financial reporting related to IT general controls has been identified, and the company relies on warehouse credit facilities for funding, with any inability to access this capital adversely affecting operations[189](index=189&type=chunk)[281](index=281&type=chunk) - **Structural & Tax Risks:** As a holding company in an "Up-C" structure, OppFi's only asset is its interest in OppFi-LLC, and it is obligated under a Tax Receivable Agreement to pay **90%** of certain tax savings to original members, which could result in substantial payments[341](index=341&type=chunk)[346](index=346&type=chunk) [Unresolved Staff Comments](index=80&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[366](index=366&type=chunk) [Cybersecurity](index=81&type=section&id=Item%201C.%20Cybersecurity) OppFi has established a cybersecurity program based on industry frameworks like NIST to manage risks associated with its complex technology systems and third-party dependencies - The company's cybersecurity program is guided by industry frameworks such as NIST and includes regular risk assessments, an incident response plan, and technical safeguards[369](index=369&type=chunk)[370](index=370&type=chunk) - Cybersecurity governance involves oversight from the Board of Directors' Audit Committee and day-to-day management by a corporate information security organization led by the CISO, who has over **20 years** of experience[375](index=375&type=chunk)[379](index=379&type=chunk) - The company has not identified any cybersecurity breaches that have materially affected or are reasonably likely to materially affect its business, operations, or financial condition to date[374](index=374&type=chunk) [Properties](index=83&type=section&id=Item%202.%20Properties) OppFi's corporate headquarters is located in Chicago, Illinois, where it leases approximately 79,928 square feet of office space under a lease that expires in 2030 - The company's headquarters is a leased space of approximately **79,928 sq. ft.** in Chicago, IL, with the lease expiring in **2030**[380](index=380&type=chunk) [Legal Proceedings](index=83&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is detailed in Note 14 to the Consolidated Financial Statements - Refer to "Legal contingencies" of Note 14 to the Consolidated Financial Statements for details on legal proceedings[381](index=381&type=chunk) [Mine Safety Disclosures](index=83&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[382](index=382&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=84&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) OppFi's Class A Common Stock trades on the NYSE under the symbol "OPFI", and the company has never paid cash dividends nor plans to in the foreseeable future - The company's Class A Common Stock is traded on the New York Stock Exchange under the symbol "OPFI"[384](index=384&type=chunk) - OppFi has never declared or paid cash dividends and does not intend to in the foreseeable future[385](index=385&type=chunk) - A share repurchase program authorized in January 2022 expired in December 2023, with no repurchases made in the fourth quarter of 2023[388](index=388&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=84&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) OppFi's 2023 financial performance showed revenue growth and increased net income, driven by improved receivables and credit quality, supported by strong liquidity Key Financial Results (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenue | $508.9 million | $452.9 million | | Net Income | $39.5 million | $3.3 million | | Adjusted Net Income | $43.3 million | $5.0 million | | Adjusted EPS | $0.51 | $0.06 | Key Performance Metrics (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Net Originations | $747.8 million | $752.9 million | | Ending Receivables | $416.5 million | $402.2 million | | Average Yield | 127.3% | 120.0% | | Net Charge-Offs % of Avg. Receivables | 55.4% | 61.9% | - The **12.4%** increase in total revenue was primarily due to higher average receivables balances and improved yield from stronger payment activity[412](index=412&type=chunk) - Net charge-offs as a percentage of average receivables decreased by **10.5%** year-over-year, reflecting the charge-off of lower quality loans from pre-mid-2022 and the origination of higher quality loans following credit adjustments[406](index=406&type=chunk) [Results of Operations](index=88&type=section&id=Results%20of%20Operations) Consolidated Results of Operations (in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenue | $508,949 | $452,859 | | Net Revenue | $273,182 | $216,960 | | Total Expenses | $226,827 | $223,302 | | Income from Operations | $46,355 | ($6,342) | | Net Income | $39,479 | $3,340 | - Net revenue increased by **25.9%** to **$273.2 million** in 2023, driven by the growth in total revenue[416](index=416&type=chunk) - Total expenses increased by a modest **1.6%** to **$226.8 million**, primarily due to higher interest expense from increased debt and rising rates, partially offset by lower direct marketing costs[418](index=418&type=chunk) - The company reported income from operations of **$46.4 million** in 2023, a significant turnaround from a loss of **$6.3 million** in 2022, due to higher net revenue outpacing the slight increase in total expenses[419](index=419&type=chunk) [Liquidity and Capital Resources](index=96&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity Position (as of Dec 31) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Unrestricted Cash | $31.8 million | $16.2 million | | Undrawn Debt | $192.3 million | $136.8 million | | Total Funding Capacity | $598.9 million | N/A | - Net cash provided by operating activities increased by **21.7%** to **$296.1 million** in 2023, mainly due to higher net income[444](index=444&type=chunk)[445](index=445&type=chunk) - Net cash used in financing activities was **$27.6 million** in 2023, compared to net cash provided by financing activities of **$61.3 million** in 2022, primarily due to an increase in member distributions and net payments on debt[444](index=444&type=chunk)[447](index=447&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=100&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a "smaller reporting company," OppFi is not required to provide this information - The company is not required to provide this information as it qualifies as a "smaller reporting company"[458](index=458&type=chunk) [Financial Statements and Supplementary Data](index=101&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for the years ended December 31, 2023, 2022, and 2021, along with accompanying notes [Consolidated Balance Sheets](index=103&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (as of Dec 31) | (in thousands) | 2023 | 2022 | | :--- | :--- | :--- | | Total Assets | $601,543 | $579,839 | | Finance receivables at fair value | $463,320 | $457,296 | | Total Liabilities | $407,514 | $420,689 | | Total Debt | $334,116 | $347,060 | | Total Stockholders' Equity | $194,029 | $159,150 | [Consolidated Statements of Operations](index=105&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statement of Operations Highlights (Year Ended Dec 31) | (in thousands) | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total Revenue | $508,949 | $452,859 | $350,568 | | Net Revenue | $273,182 | $216,960 | $263,679 | | Income from Operations | $46,355 | ($6,342) | $57,257 | | Net Income | $39,479 | $3,340 | $89,795 | [Notes to Consolidated Financial Statements](index=109&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company elected the **fair value option** for its installment finance receivables effective January 1, 2021, which are carried at fair value determined using discounted cash flow analyses[527](index=527&type=chunk) - The company is involved in legal proceedings, including a complaint filed against the California DFPI regarding the applicability of state interest rate caps to loans originated by its bank partners[709](index=709&type=chunk) - As of December 31, 2023, the company had total borrowing capacity of **$525.0 million** under its senior debt facilities, with **$332.7 million** outstanding[605](index=605&type=chunk) - In connection with its 2021 business combination, the company entered into a Tax Receivable Agreement (TRA), obligating it to pay members **90%** of realized tax savings from basis step-ups, with the TRA liability at **$25.0 million** as of December 31, 2023[544](index=544&type=chunk)[549](index=549&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosures](index=144&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[727](index=727&type=chunk) [Controls and Procedures](index=144&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that as of December 31, 2023, the company's disclosure controls and procedures were not effective due to a material weakness in IT general controls - Management concluded that disclosure controls and procedures were **not effective** as of December 31, 2023[728](index=728&type=chunk) - A **material weakness** exists in internal control over financial reporting related to IT general controls (ITGCs), specifically concerning ineffective design and operation of user access controls for segregation of duties and privileged access[731](index=731&type=chunk) - A remediation plan is in progress, focusing on implementing new access control protocols and enhancing segregation of duties, but the material weakness will not be considered fully remediated until the new controls operate effectively for a sufficient period[732](index=732&type=chunk) [Other Information](index=145&type=section&id=Item%209B.%20Other%20Information) On November 16, 2023, a Board member adopted a Rule 10b5-1 trading plan for the sale of up to 32,488 shares of Class A Common Stock - Director Jocelyn Moore adopted a Rule 10b5-1 trading plan on November 16, 2023, for the potential sale of up to **32,488 shares** of Class A Common Stock[735](index=735&type=chunk) [Disclosure Regarding Foreign Jurisdiction that Prevent Inspections.](index=145&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdiction%20that%20Prevent%20Inspections.) This item is not applicable to the company - Not applicable[737](index=737&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=146&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item will be incorporated by reference from the company's Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[739](index=739&type=chunk) [Executive Compensation](index=146&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item will be incorporated by reference from the company's Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[740](index=740&type=chunk) [Security Ownership of Certain Beneficial Owner and Management and Related Stockholder Matters](index=146&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owner%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item will be incorporated by reference from the company's Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[741](index=741&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=146&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item will be incorporated by reference from the company's Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[742](index=742&type=chunk) [Principal Accounting Fees and Services](index=146&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information for this item will be incorporated by reference from the company's Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[743](index=743&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=147&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed as part of the Form 10-K, including key corporate and credit agreements - Lists all financial statements and exhibits filed with the annual report[745](index=745&type=chunk) [Form 10-K Summary](index=154&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that there is no Form 10-K summary - None[753](index=753&type=chunk)

Financial Data and Key Metrics - Total revenue for Q4 2023 increased by 10.7% to $132.9 million compared to the prior year [12] - Net originations grew by 3.3% to $191.9 million in Q4 2023 [12] - Annualized net charge-off rate as a percentage of total revenue improved by 12.9 percentage points to 46.4% in Q4 2023 [12] - Total expenses, excluding interest expense, as a percentage of total revenue decreased by 5.6 percentage points to 33.8% in Q4 2023 [12] - Net income for Q4 2023 was $1.9 million, up from a loss of $5.2 million in the prior year [12] - Adjusted net income for Q4 2023 was $8.9 million, up from a loss of $2.8 million in the prior year [12] - Full-year 2023 total revenue reached a record $508.9 million, a 12.4% increase year-over-year [13] - Ending receivables for 2023 were $416.5 million, a 3.6% increase year-over-year [13] - Net income for 2023 was $39.5 million, compared to $3.3 million in the prior year [13] - Adjusted net income for 2023 was $43.3 million, up from $5 million in the prior year [13] Business Line Performance - Credit performance improved year-over-year, with the total first payment default rate decreasing by 40 basis points and the total delinquency rate declining by 90 basis points [15] - Yield expanded by 8.4 percentage points to 126.8% in Q4 2023 compared to 118.4% in the prior year [16] - Recoveries of previously charged-off loan balances increased by 40.8% year-over-year in Q4 2023 [16] - Marketing cost per funded loan decreased by 6.3% year-over-year in Q4 2023 [17] Market and Geographic Expansion - The platform expanded geographically with bank partners entering new states [17] - A new credit model incorporating an updated dynamic risk model is expected to launch in Q2 2024, aimed at driving lower risk origination volume and reducing credit losses [21] Strategic Priorities and Industry Outlook - The company plans to maintain a disciplined underwriting strategy, emphasizing profitability over portfolio growth in 2024 [10] - The macroeconomic environment for 2024 is expected to be similar to 2023, with sticky inflation and higher interest rates [19] - The company is cautious about macroeconomic headwinds but believes it is well-positioned to operate in this environment [20] - Corporate development opportunities, including potential partnerships and acquisitions, are being evaluated to create shareholder value [18] Management Commentary - Management expressed confidence in the long-term strategy, citing a strong balance sheet with unrestricted cash of $31.8 million, nearly doubling year-over-year [23] - The company plans to focus on top-of-funnel optimization, operating efficiencies, and geographic expansion in 2024 [22] Q&A Session Question: Growth Outlook and Macroeconomic Environment - The company is emphasizing profitability over growth due to the macroeconomic environment and has tightened the credit box to manage risks [36][37] - Growth will depend on sustained loss curves resembling 2019 levels, and the company is exploring other growth avenues such as geographic expansion [40][42] Question: Drivers for 2024 Revenue Guidance - Revenue guidance for 2024 is driven by maintaining strong yields and not chasing growth through higher customer acquisition costs [49] - The company expects its new credit model, launching in Q2 2024, to support growth [50] Question: Charge-off Rate Dynamics - The charge-off rate as a percentage of revenue is expected to remain similar year-over-year, with minor fluctuations due to seasonality [53][54][76] Question: M&A and Acquisition Criteria - The company is refining its criteria for acquisitions, focusing on verticals that complement its brand and are accretive to shareholder value [61] Question: Auto Approval Rate - The auto approval rate is currently at 72%, with incremental improvements expected through AI tools and process optimizations [62][63] Question: Geographic Expansion Impact - New state entries are expected to provide growth opportunities, but the company is cautious due to the higher risk associated with new originations [69][71]

Q4 2023 Earnings Presentation 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 ...